Alumina Inc: Recognizing And Minimizing Tort And Regulatory Risk Essay

Alumina Inc: Recognizing And Minimizing Tort And Regulatory Risk Essay

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Alumina Inc. is a $4 billion aluminum maker, based in the United States and operates in eight countries around the world. The United States market constitutes of 70% of its sales. The company manufactures automotive components, alumina refining, bauxite mining and aluminum smelting. Alumina falls under the jurisdiction of region 6 of the Environmental Protection Agency (EPA). As the business manager in Alumina Inc., I am leading the effort in managing a crisis arising out of allegations of environmental damages. (University of Phoenix, 2008) In this paper, I will identify the legal issues and note the legal principles that apply. The result of my decisions will need to ensure that I prevent extensive losses, environmental and commercial, preserve the company’s public image and abide by the pertinent environmental statutes.
Business Regulation Simulation
Five years ago, Alumina was in violation of environmental discharge norms after a routine EPA compliance evaluation inspection. A clean-up was ordered and Alumina complied immediately. Since then the company has maintained a good compliance record. Recently, the company found itself in legal troubles when a local resident, Kelly Bates, accused the company of repeatedly contaminating the waters of Lake Dira with carcinogenic effluents. Bates believes that Alumina has repeatedly contaminated the lake waters with carcinogenic effluents. Mrs. Bates has threatened to file a 5 million personal injury lawsuit against Alumina to recover damages as well as punitive damages. Bates also believes that her daughters’ disease may be as old as Alumna’s first instance of environmental law violation (University of Phoenix, 2008). The Erehwon Reporter received word of the issue and posted an...


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...rporations would better benefit by using that money in a negotiated settlement that would benefit all parties involved. This simulation the money used for the ten year old girl and her medical bills and possibly a trust fund set up for college make everyone happy. It also makes the company look good and keeps its compliance record intact. The simulation showed the importance of regulations and the implications of not abiding by these regulations. Moreover, the simulation illustrated that companies need to be legally savvy and aware of their environmental impacts. When disputes arise, both businesses and individuals have to be aware of the social, legal and financial ramifications of how they respond to any legal challenge.



References
University of Phoenix (2008). Business Regulation Simulation. Retrieved July 24, 2008, from University of Phoenix eResources

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