(a) Based on the information given in case study, identify and give reasoning which of the environmental costs incurred by SIDI. represent internal…

(a) Classification of Environmental Costs S. No. Particulars Classification Reasoning 1 Installation of air filtration equipment to reduce dust emissions Internal Environmental Cost This is a preventive cost directly incurred by the company to control pollution within its operations. 2 Fines and penalties paid for exceeding local noise pollution norms. Internal Environmental Cost It arises due to environmental damage affecting the community, it represents the social cost of non-compliance externalized to society but now paid by the firm 3 Salaries of the in-house environmental management team Internal Environmental Cost These are internal administrative costs to ensure environmental compliance and monitoring. 4 Purchase of eco-friendly packaging material Internal Environmental Cost The cost relates to internal operational choices to reduce environmental impact of products. 5 Payments to an external waste disposal agency for treating chemical effluents Internal Environmental Cost Though an external agency is involved, its a cost directly borne by the company as part of internal was to management. 6 Training provided to employees on energy conservation Internal Environmental Cost This is an internal preventive cost aimed at building employee awareness and efficiency. 7 Cost of cleaning up soil contamination caused by past operations External Environmental Cost This is a remedial or restoration cost for past environmental damage - an external cost internalized now due to regulations or social pressure. 8 Donations to a local environmental NGO for tree plantation. External Environmental Cost It's a voluntary contribution to offset environmental impact beyond company premises - a from of social responsibility cost. (b) Adopting cleaner production technologies to minimize waste and omissions, thereby reducing both social and legal external costs.