Running head: Business Regulation
University of Phoenix
March 16, 2008
Alumina is a $4 billion aluminum maker operating around the world with 70% of its business in the U.S. They operate a plant next to Lake Dira in the state of Erehwon. The company’s reputation and environmental record is being threatened by Kelly Bates, a resident alleging the company has repeatedly contaminated the waters of the lake with carcinogenic agents. Furthermore, the resident alleges consumption of the waters is the proximate cause of her daughter’s leukemia.
This paper provides a concise journey throughout the case starting with key facts, regulatory requirements and the legal issues being faced by Alumina. It then identifies company values and how an ethical dilemma ensues with stakeholders’ conflicting opinions. The opinions of legal counsel not associated with Alumina then follows providing insights applicable to the case. An alternative solution not included on the simulation is then presented along with its impact to the ethical dilemma being faced by the stakeholders. The simulation shows how regulatory compliance will impact a company and its decisions. Furthermore, how the legal system comes into place in solving the dispute presented.
Key facts, regulations, and legal issues
Alumina’s was found to be in violation of environmental discharge norms five years ago during a routine EPA compliance evaluation (Simulation, 2009). Higher concentrations of polycyclic aromatic hydrocarbons - PAH (Wikipedia, 2009) than allowed by law were found on the lake. Alumina quickly addressed the problem and a subsequent evaluation determined it had been corrected. Other than this the company had a good environmental compliance record.
Alumina’s violation was based on strict laws regulating industrial waste discharge developed as a result of Clean Air Water Act of 1972. The act sets goals to eliminate water...