Business Regulation Simulation

1387 Words3 Pages

Business Regulation Simulation Introduction According to the BNET business dictionary, regulation is “the use of laws or rules stipulated by a government or regulatory body, such as the Securities and Exchange Commission, to provide orderly procedures and to protect consumers and investors.” (BNET, 2008) Business regulation is not limited to these sorts of issues, though. As is the case with Alumina, the Environmental Protection Agency (EPA) also sets standards that need to be enforced to protect the business as well as the community in which it operates. Because the employees at Alumina adhere to the regulations and standards set by the EPA there is little risk to them when issues arise. However, Alumina’s unfortunate experience with the water pollution five years ago earned them a violation of the EPA rules. Now Alumina is targeted as the cause of a young girl’s case of leukemia. Despite the incident five years ago, executives at Alumina are confident that they are in compliance with all the rules now. The negative publicity incurred by the allegations could be detrimental to the future of Alumina. Cautious decisions need to be made whenever a case of this nature is initiated. Legal counsel should be consulted in reacting to any such allegations and decisions should be made that maintain the best interests of the company while preserving the community relationship. Key facts, regulations, and legal issues The mission of the EPA is to establish and enforce standards that must be followed in order to maintain a clean environment. They have set regulations to limit such pollutions as air and water. Alumina had a spill five years ago into a local waterway. This violation of EPA regulations and its aftermath earned Alumina unwanted negative publicity that proved embarrassing. As Alumina is getting past that incident, accusations of inadequate emissions being the cause of a newly diagnosed leukemia case threaten to mar their reputation yet again. The legal issues associated with this case include whether or not they are in compliance with the regulations and whether or not they should disclose the business records being requested in part or in their entirety. According to the simulation, “citizens can request information from the records of government agencies and their private enterprises, under certain conditions, to bring contentious issues to their rightful conclusion.” (Business Regulation Simulation) In the simulation the records were requested to find a link between any violations Alumina may be guilty of with the development of the leukemia.

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