Business Regulation Simulation

1800 Words4 Pages

Business Regulation Simulation Many firms have growth opportunities to invest in profitable projects. (Ross, Westerfield, & Jaffe, 2005). The new millennium brought in fierce competition, aggressive marketing and strategic alliances; the extent to which a business succeeds or fails often depends upon that business's ability to be in n sync with states, federal, governmental and environmental regulations. This paper will identify the key facts, regulations and legal issues in Alumina’ company; the conflicts among the competing stakeholders will be discuss, the handling of the regulatory issue by the internal counsel will be analyze and alternative solutions will be discussed by using the risk analysis matrix as metric system. These solutions must be align with Alumina’s values in order to be efficient and affective. 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, packaging materials, automotive components, aluminum refining, bauxite mining and aluminum smelting. Five years ago, Alumina was in violation of environmental discharge norms in a routine EPA compliance evaluation. The Environmental Protection Agency (EPA) was established to administer federal laws that concern pollution of the air and water, solid waste and toxic substance disposal, pesticide regulation, and radiation. (Reed, Morehead, Shedd, & Corley, 2005). A clean up was ordered by EPA, which Alumina promptly complied and the violation was considered corrected after a follow up audit. The company now falls under the jurisdiction of region 6 of the EPA. The company now faced new allegation. Kelly Bates, a 38-year-old single mother, accused Alumina of repeatedly contaminating the waters of Lake Dira with carcinogenic effluents, and has alleged that the company caused her child of ten years to contract leukemia, a cancer illness directly related to the company's toxins (Simulation, 2008). Bates believes that there is a direct correlation between her daughter's condition and Alumina's first environmental violation. Most Companies’ main objective is to identify cost-cutting measures that will improve profitability, boost growth therefore maximizing stakeholders’ profits. In the same token they cannot ignore their enronmental and social responsibility. Alumina has a responsibility to its communities and the government where it operates; the company must follow legal, social and environmental regulations in order to be a successful company. Alumina Inc.'s legal issues can be a potential damaging lawsuit brought up by a local resident a mother who filed a five-million dollar personal injury lawsuit against Alumina, Inc.

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