Endangered Orangutans and the Palm Oil Industry Project Purpose In this project, you will evaluate the business decision the Tengku needs to make to keep his company a viable commercial opportunity The purpose of this assignment is to develop the critical thinking and decision making skills necessary to make a contemporary business decision. Along with critical thinking skills, you will develop research, communication and data evaluation skills. Outcomes You Will Meet by Completing This Project: · applies the basic steps of the MDQ model to make a sound business decision · describes and explains the reasoning behind the application steps used and the ultimate decision · demonstrate the use of collaboration to help determine the final decision · analyze, evaluate and explain both the decision factors in making the decision as well as the stakeholders involved Setting the Stage Palm oil is the most widely consumed vegetable oil on Earth. Referred to as the “Miracle Crop” (Wan, 2017) it can be found in seventy-one percent of most supermarket food products like pizza and doughnuts, 24 percent of cosmetic products like lipstick and makeup, and five percent for energy uses like heating fuel (Deutsch bank, 2015). Known as a super food, the demand for palm oil is already high, and it is expected to triple by 2050 (Deutsch Bank (db), 2015). Currently Malaysia, Indonesia and India produce 50 of the 56 million tons needed to meet international consumer demand. While the production of Palm Oil promotes economic development badly needed in these countries, it does not come without serious environmental and social consequences (Deutsch Bank(db), 2015). One prominent side effect of the deforestation caused by the rapid growth of palm oil production is the reduction of the Orangutan population. It is estimated that over fifty thousand Orangutans died because of palm oil production in the last 20 years. It is also estimated that 2,000- 3,000 die every year (Orangutan. n.d.). The guestimates by experts suggest that in the next 30-50 years those found in the wild will be extinct. Environmentalists are attempting to stave off the extinction by creating refuges on nearby islands and transporting the remaining Orangutans from Borneo (where most Orangutans have traditionally lived) to the sanctuaries (Emont, 2017). Orangutan’s are not the only victims of the increased number of palm oil plantations, but humans also suffer from the side effects. A study estimated that 91,600 people in Indonesia, 6,500 in Malaysia and 2,200 in Singapore may have died prematurely because of exposure to fine particle pollution from burning forests (France-Presse, 2016). The large destruction of rain forests by plantation owners and its effect on global climate is also a serious problem brought about by palm oil production. Deforestation is a significant contributor to climate change; when the forests are lost, carbon is released into the atmosphere, causing the climate to heat up.

1. Endangered Orangutans and the Palm Oil Industry
Project Purpose
In this project, you will evaluate the business decision the
Tengku needs to make to keep his company a viable commercial
opportunity The purpose of this assignment is to develop the
critical thinking and decision making skills necessary to make a
contemporary business decision. Along with critical thinking
skills, you will develop research, communication and data
evaluation skills.
Outcomes You Will Meet by Completing This Project:
· applies the basic steps of the MDQ model to make a sound
business decision
· describes and explains the reasoning behind the application
steps used and the ultimate decision
· demonstrate the use of collaboration to help determine the
final decision
· analyze, evaluate and explain both the decision factors in
making the decision as well as the stakeholders involved
Setting the Stage
Palm oil is the most widely consumed vegetable oil on Earth.
Referred to as the “Miracle Crop” (Wan, 2017) it can be found
in seventy-one percent of most supermarket food products like
pizza and doughnuts, 24 percent of cosmetic products like
lipstick and makeup, and five percent for energy uses like
heating fuel (Deutsch bank, 2015). Known as a super food, the
demand for palm oil is already high, and it is expected to triple
by 2050 (Deutsch Bank (db), 2015).
Currently Malaysia, Indonesia and India produce 50 of the 56
million tons needed to meet international consumer demand.
While the production of Palm Oil promotes economic
development badly needed in these countries, it does not come

2. without serious environmental and social consequences
(Deutsch Bank(db), 2015).
One prominent side effect of the deforestation caused by the
rapid growth of palm oil production is the reduction of the
Orangutan population. It is estimated that over fifty thousand
Orangutans died because of palm oil production in the last 20
years. It is also estimated that 2,000- 3,000 die every year
(Orangutan. n.d.). The guestimates by experts suggest that in
the next 30-50 years those found in the wild will be extinct.
Environmentalists are attempting to stave off the extinction by
creating refuges on nearby islands and transporting the
remaining Orangutans from Borneo (where most Orangutans
have traditionally lived) to the sanctuaries (Emont, 2017).
Orangutan’s are not the only victims of the increased number of
palm oil plantations, but humans also suffer from the side
effects. A study estimated that 91,600 people in Indonesia,
6,500 in Malaysia and 2,200 in Singapore may have died
prematurely because of exposure to fine particle pollution from
burning forests (France-Presse, 2016).
The large destruction of rain forests by plantation owners and
its effect on global climate is also a serious problem brought
about by palm oil production. Deforestation is a significant
contributor to climate change; when the forests are lost, carbon
is released into the atmosphere, causing the climate to heat up.
Clearing the land to plant the new crop is often done by burning
timber and undergrowth putting significant amounts of smoke
into the air which releases carbon dioxide in large amounts. In
Indonesia and Malaysia, much of the land is on tropical peat
soil. The richness of the holds carbon. Clearing the land
releases that carbon into the atmosphere, which contributes to
global warming (Perils of Palm, 2018).
In the last years environmentalists have actively attempted
major campaigns to bring awareness of the problems related to
palm oil production and have taken a variety of approaches.
One approach is to demand companies stop using palm oil
altogether. The Say No to Palm Oil group states “We think that

3. consumers should focus on cutting down unnecessary
consumption in general, thus removing some palm oil and other
vegetable oils from their lifestyle.” (Fassler, 2016). Those
opposed to this approach suggest that considering the number of
products that contain palm oil ridding it from the ingredient list
or reducing it will likely just switch the burden on to another oil
crop whose side effects are worse. No other crop can yield even
a third as much oil per acre and use less land. Pesticide use in
palm oil production is also considerably less (Fassler, 2016).
Another approach is to the problem is for user companies to buy
only sustainable palm oil. NGO’s and corporations in Europe
and America, two of the largest communities of palm oil
consumers, have taken some steps to comply to this demand by
creating the Roundtable on Sustainable Palm Oil. This
organization has set out a certification process for palm oil
production in compliance with a set of environmental and social
criteria (Roundtable, 2018). However, organizations like
Greenpeace (Moas, 2013)and the Rainforest Action Network
(Tillack, 2013) complain that the organization’s standards are
not strong enough and that even certified sustainable palm oil
can contribute significantly to deforestation and its climate and
health effects.
A third approach has been for environmental activists to stage
protests, boycotts and petition drives to make corporations and
their consumers aware of the side-effects that are produced by
palm oil. These activities have resulted in many companies like
General Mills, Mondelez International and J.M. Smucker
company to adapt policies on Palm Oil use in their products.
However, as pointed out by the Conservation International
group in their Consumer Guide the source to market problems
make certification difficult “Complexity and fragmentation in
the palm oil supply chain present challenges to consumer goods
manufacturers and retailers seeking to implement sustainable
sourcing commitments.” (Drummond, 2015 p.15)
The rapid expansion of palm oil production in Southeast Asia
endangers orangutans and humans, destroys virgin rain forests

4. and contributes to climate change. It also is one of the most
profitable products for the Southeast Asian and global
economies. As noted by Sustainability Policy Transparency
Toolkit group, “Palm oil is one of the most profitable land uses
in the tropics. For the main producing countries, palm oil can
significantly contribute to national economies, driving rapid
economic growth and contributing to the alleviation of rural
poverty.” (SPOTT, 2016). The question then becomes; what role
does the plantation owner play in the preservation of the
company’s income while dealing with competing societal
concerns?
Business Background
PPO is a small family owned business which began in 1998.
Owned by Abdul Tengku, PPO has three Palm Oil Plantations in
Borneo in the Kilimaten region. The first of PPO’s plantations
planted in 1998 is 1500 hectares in size and yields 6.5 tons per
hectare. The second plantation planted in 2006 is 2,000 acres
and yields 7.25 tons per hectares. The newest plantation is only
6 years old and is the biggest at 3,500 hectares. The yield is
only 3.5 tons per acre owning to the immaturity of the trees.
Currently Tengku has all his production under contract for the
next two years. PPO’s current revenue annually is $24,090,000
US Dollars. Down 9.2 percent from last year. Since Palm Oil is
a commodity the prices can fluctuate from month. Contracts are
paid based on the price noted on the market for the transaction
date of sale
Palm trees typically begin flowering and producing fruit after 3-
4 years and yield well enough after 6-8 years for the owner to
return a profit. Oil palm plantations generally remain profitable
for 25 years, after which they need to be replanted. Peak palm
oil yields occur anywhere between 10 to 18 years of age, and
gradually decline thereafter. As a plantation ages it also tends
to experience declining tree populations because of pests and
diseases. Newly established plantations might have 130-145
trees per hectare, whereas an old plantation might be reduced to
approximately 100 trees per hectare. The huge start-up costs

5. and long lead time between plantation establishment and
profitability are huge impediments to independent small farmers
in Indonesia. And that is precisely why the government has had
to provide substantial long-term capital and subsidies to
smallholders to ensure they can participate in the industry.
IPOC,the government regulatory board, indicates that roughly
98 percent of all smallholder palm farmers have successfully
paid off their loans in the past 10 years. This is in fact the case
for PPO.
So, PPO is now faced with the following financial situation:
· They have paid off their loans.
· They have the 1998 plantation coming to the end of its
production numbers because of the age of the trees. The
plantation will have to be replanted in five years. Leaving a 6 to
8-year gap where the plantation will not be productive and high
costs for replanting will have to be absorbed.
· The second oldest plantation is beginning to reach the peak
time for productivity but in 6 more years the trees will begin to
reach full maturity and production will decline.
· The largest plantation is immature and will not bring in a
strong yield for another 3 to 4 years.
· While prices are still strong the market is going down.
· PPO has not received its government certification as a
sustainable producer because it is not yet able to pay the costs
of needed changes for qualification (estimated at $1 million
dollars) having just repaid its government loans.
· The loss of contracted customers would threaten his financial
success.
Dilemma:
Consumers against Palm Oil (CAPO) has recently taken to
targeting your business, Perfect Palm Oil (PPO). It is the
mission of the group to go to all Palm Oil Producers and
publicly attack, using protests and picketing tools, what they do
to bring attention to the plight of the orangutan’s natural habitat
as well as the other harm done by the production process
including human mortality. The group also encourages

6. customers to reduce consumption of the product through
boycotts of palm oil by pressuring the brands we buy to use
only sustainable palm oil.
Some of PPO's big American customers have approached
Tengku to find out what he intends to do about the problem and
have hinted that they may have to seek out a sustainable palm
oil producer if Tengku cannot provide some assurance that he is
addressing the problem.
Instructions:
You are Abdul Tengku’s plantation production manager. Tengku
wants to turn over running the main business to you but he
wants to see how you make a decision of this magnitude first.
You have been tasked by Tengku to decide what to do about the
CAPO situation. When the protesting started several weeks ago
you decided to investigate the CAPO's philosophy and strategy
in their attempt to bring down the Palm Oil Industry. The
information you acquired is recounted accurately in the "Setting
the Stage" area of this case study. That material including the
reference list, will provide a good start to looking at the
decision facing PPO. Below is some additional research that you
have reviewed. More research may be needed later as you begin
to apply the MDQ.
· Harvesting Palm Oil and Rain Forests
· Palm Oil and The Environment
· Malaysian Palm Oil Industry
· Blazes in Southeast Asia May Have Led to Deaths of Over
100,000, Study Says
· Indonesia’s Orangutans Suffer as Fires Rage and Businesses
Grow”
· Southeast Asia, Choking on Haze, Struggles for a
Solution

7. ”
· The Violent Costs of the Global Palm-Oil Boom
· Step One:
· Read the MDQ class material (found in the content and
collaboration areas in weeks 3,4,5 and 6) and the case study
taking careful notes. Focus on what PPO needs to do to stay in
business and the goal set out by CARPO. There is a lot
information so be sure to take detailed notes.
· Step Two:
· Read and take notes on the MDQ model. Be sure you
understand what each step is trying to accomplish with respect
to making a decision.
· Step Three: Collaboration Exercises Begin
· Starting in week three, use the notes that you have collected
and begin to apply the MDQ model to the decision process by
creating a initial post for the collaboration discussion. After
making your initial post, read the other students posts and
discuss with them how best to apply the MDQ model step(s) and
what results are most likely if done correctly. The goal of the
discussions is to come to some consensus among the class as to
what each step should contain in order for you to make the best
decision. Read the instructions in the discussion/collaboration
area and remember to participate in the discussion through out
the week. The more that you are in the discussion with your
classmates the better.

8. · Step Four:
· Repeat the collaboration process in weeks 4,5, and 6.
· Step Five: Individual Submission
· Using the information gathered in the collaboration process,
the class material on the MDQ process, research and case study
facts outline the process that you went through step by step to
make the decision. This is an individual decision paper that will
be submitted to the assignment folder when complete. Using the
rubric as a guide to the discussion, clearly state the conclusions
drawn and how they were arrived at by applying the MDQ. The
pertinent steps to cover area:
· Step 1, statement of the decision to be made- the decision
statement is clearly stated and accurately reflects the decision
that must be made.
· Step 2, framing the decision by finding the objectives through
analysis of scope, purpose, and perspective of the decision to be
made.
· Step 3, building the Decision by using objectives to collect
information to create alternatives and to exam the potential
consequences of each alternative if chosen.
· Step 4A, create and apply a decision matrix to evaluate the
alternatives.
· Step 4B, evaluation discussion of alternatives relevant to the
decision made (use of decision matrix results and prioritization
of objectives).

9. · Step 5, assess the effectiveness of the decision process by
reviewing the decision made against the information collected
and evaluated and answering the questions: Does the decision
optimize the objectives and was is arrived at objectively as
possible?
· The paper should use the research found in the case study
itself as well as any additional work to justify the reasoning
behind the conclusions drawn.
· Additional Requirements and How to Prepare the Paper for
Submission
· Cover page is required.
· Use bold headers for each of the MDQ model steps. (i.e.
Defining the decision, framing the decision …)
· Describe each of the MDQ model steps in detail. Explain how
conclusions were drawn. Support and justify all statements
using case study facts and research.
· APA formatting with in-text citations and a reference list are
required.
· Read the grading rubric for the project to be sure all elements
of the project have been covered.
· Third person writing is required. Third person means that
there are no words such as “I, me, my, we, or us” (first person
writing), nor is there use of “you or your” (second person
writing). If uncertain how to write in the third person, view this
link:

10. http://www.quickanddirtytips.com/education/grammar/first-
second-and-third-person.
· Contractions are not used in business writing, so the
expectation is that students do not use contractions in
assignments.
· Paraphrase and do not use direct quotation marks. This means
you do not use more than four consecutive words from a source
document, put a passage from a source document into your own
words and attribute the passage to the source document. Provide
the page or paragraph number. Note that a reference within a
reference list cannot exist without an associated in-text citation
and vice versa.
· Do not use books as source material.
· Students are expected to use a variety as well as multiple
course readings and research to support ideas, reasoning, and
conclusions.
· Submit the final project into the appropriate assignment
submission folder. Once submitted, the project is eligible for
grading and students will not be permitted to make changes or
make another submission.
· STEP 6:
· Submit the paper in the assignment folder not later than
Sunday at 11:59 PM EST.
NOTE:All submitted work is to be your original work. You may
not use any work from another student, the Internet or an online

11. clearinghouse. You are expected to understand the Academic
Dishonesty and Plagiarism Policy, and know that it is your
responsibility to learn about instructor and general academic
expectations with regard to proper citation of sources as
specified in the APA Publication Manual, 6th Ed. (Students are
held accountable for in-text citations and an associated
reference list only).
Reference List
Economic impacts. (n.d.). Retrieved from
https://www.spott.org/palm-oil-resource-
archive/impacts/economic/
Emont, J. (2017, April 25). A Refuge for Orangutans, and a
Quandary for Environmentalists. Retrieved
fromhttps://www.nytimes.com/2017/04/25/world/asia/indonesia-
borneo-orangutans-palm-oil.html
Drummond, B. (2015, May) Palm Oil Sourcing Guide. Retrieved
from
https://www.conservation.org/publications/Documents/CI_Palm-
Oil-Sourcing-Guide.pdf
Fassler, J. (2016, March 01). Giving Up Palm Oil Might
Actually Be Bad for the Environment. Retrieved
fromhttps://www.smithsonianmag.com/science-nature/giving-
up-palm-oil-might-actually-be-bad-environment-180958092/
France-Presse, A. (2016, September 19). Haze from Indonesian
fires may have killed more than 100,000 people – study.

12. Retrieved
fromhttps://www.theguardian.com/world/2016/sep/19/haze-
indonesia-forest-fires-killed-100000-people-harvard-study
Kruse, J. (2018). Estimating Demand for Agricultural
Commodities to 2050. Retrieved
fromhttp://www.globalharvestinitiative.org/Documents/Kruse -
Demand for Agricultural Commoditites.pdf
Moas, A. (2013, July 03). Sustainable Palm Oil? No, not really!
Retrieved from https://www.greenpeace.org/usa/sustainable-
palm-oil-no-not-really/
Protection against risks to the environment and society (palm
oil). (n.d.). Retrieved
fromhttps://www.db.com/cr/en/datacenter/infographic-
palmoil.htm
Sustainable Palm Oil. (n.d.). Retrieved from
https://www.rspo.org/about/sustainable-palm-oil
The Perils of Palm Oil: How a Popular Product Leads to
Deforestation. (n.d.). Retrieved from
https://www.fix.com/blog/how-palm-oil-affects-the-
environment/
Threats to Orangutans. (n.d.). Retrieved from
http://www.orangutan.com/threats-to-orangutans
Tillack, G. (2013, April 25). Why 'Roundtable on Sustainable
Palm Oil (RSPO)' palm oil is neither responsible nor
sustainable. - The Understory. Retrieved from

13. https://www.ran.org/the-
understory/why_rspo_sustainable_palm_oil_is_not_responsible/
Wan, Y. (2017, March 15). A makeover for the world's most
hated crop. Retrieved from https://www.nature.com/news/a-
makeover-for-the-world-s-most-hated-crop-1.21634
This case study was adapted from the following source:
Gonchar, M. (2017, November 09). Endangered Orangutans and
the Palm Oil Industry: An Environmental Science Case Study.
Retrieved from
https://www.nytimes.com/2017/11/09/learning/lesson-
plans/endangered-orangutans-and-the-palm-oil-industry-an-
environmental-science-case-study.html
Student Reply #1
Reply to other student posts with a 200-word reply. In your
reply, apply the code of ethics to a relevant situation you have
observed, experienced, or viewed in current events. Also,
discuss strategies that can assist educational leaders to avoid
violations of a specific aspect of the code.
Student #1
The Model Code of Ethics for Educators (MCEE) serve as a
general basis for defining ethics for those in the field of
education. While reading the provisions set forth in the code, it

14. is very basic as compared to the Georgia state code of ethics.
Throughout my career, I have only served as an educator in the
state of Georgia and am required to adhere to the Georgia Code
of Ethics (GCE) when serving students in this state. In Georgia,
the state code is extremely detailed, and some may argue
oversteps the purpose of ethical regulation to educators in
specific areas.
Most of the MCEE codes are echoed in the GCE as it pertains to
basic responsibilities to the field of education, the students we
serve, and being a competent educator. Both codes maintain that
ignorance of required ethics does not excuse an educator from
adhering to the outlined principles. Rather, as professionals it is
our duty to know and understand the regulations that are in
place to protect students as well as our livelihoods and
longevity in our chosen field.
Every year, my school district shows a Georgia Code of Ethics
video where officials from the Professional Standards
Commission (state regulatory agency for educators) discuss
issues and mistakes made by educators in the past. One idea that
is presented in this video every year has really stuck with me.
As educators, we deal with the two most important things that
people possess: their children and their tax dollars. It only
makes sense for educators to abide by the highest ethical
principles to protect these valuables. Due to this, the two most
significant codes to me are the ones dealing with sexual

15. misconduct and the responsible management of funds.
There is possibly no greater offense an educator could commit
next to an inappropriate relationship with a child. This will
forever affect the life of that student and severely diminishes
the trust between the community and school district. This type
of offense is rather extreme and probably not most prevalent as
a violation for educators. Another significant code is the
dealing with public funds. It is here that I believe the most
offenses occur.
Teachers often sponsor clubs, sport activities, and extra-
curricular trips which involves them in the collection of money.
There is always the potential for carelessness and errors when
handling funds. Failure to deposit the funds in a timely manner
and failure to receipt those monies properly are often large
contributors to problems in this area. In addition, improper
supervision of funds has led to theft of student monies. When
this occurs, the educator is absolutely liable for the funds in his
or her possession. In recent years, a highly publicized incident
occurred in Georgia where thousands of dollars were taken from
a teacher’s desk. Those funds were collected from students by
their teacher for a senior trip. Unfortunately, it was later
discovered that the theft was an inside job and the teacher took
the funds for her own personal use while claiming another party
took the cash. Money can often distort an educator’s judgment
and open them up to sanctions from the state regulatory agency.

16. Because the Georgia Code of Ethics is so detailed, I do not
there was anything left out by the state. I do not think anything
should be added. However, I do think Georgia imposes
unnecessary hardships through one aspect of the code: breach of
contract. Educators are asked to sign teaching contracts earlier
and earlier every year in our state. Just last year, most teachers
were required by their school districts to sign a contract before
the end of February to teach for the upcoming year (August-
May). Nearly all school districts do not begin hiring for the next
school year until March or April, forcing teachers to remain in
their posts and thereby eliminating them from furthering their
careers.
The only solution to this from the educator’s perspective has
been to not sign teaching agreements for the upcoming year in
hopes of landing a better assignment. However, this is a risky
practice and often ends in the educator giving up their post
without being able to secure a job elsewhere. The other
alternative is to sign a teaching contract and break that contract
when another more desirable assignment is secured. However,
in recent years school districts have imposed large fines of
$1,000 or more to “break” a contract even when several months’
notice is given. Often times, this process completes in May
which is months away from the start of the next school year and
in plenty of time for administrators to hire a replacement.
Code of ethics are established by every state to define

17. expectations for educators. The MCEE serves as an outline for
ethical behavior. However, many states such as my home state
of Georgia have expanded ethical requirements. Educators work
with children in various capacities: in the classroom, on the
sports field, and through extra-curricular clubs. Those working
with young people should stay current with ethical codes and
regulations in order to protect their positions and to be
successful in the long term. However, ethics should not be used
to forcibly keep educators in a role that they no longer desire.
This does not benefit any party: the educator, child, or school.
Hopefully, ethics will continue to evolve to meet the needs of
students, teachers and school districts equitably.
References
National Association of State Directors of Teacher Education
and Certification. (2015). Model code of ethics for educators
(MCEE). Retrieved from
https://www.nasdtec.net/page/MCEE_Doc#PrinI.44
Georgia Professional Standards Commission. The Code of
Ethics for Educators (2018). Retrieved from
https://www.gapsc.com/Rules/Current/Ethics/505-6-.01.pdf