Introduction
This overview explores the key facts, regulations and legal issues in the Business Regulation Simulation for Alumina. Alumina is U.S. based company with global presence in eight countries. It attributes 70% of its profit through U.S. sales alone. The simulation provides an introduction to environmental regulation by stating that organizations have a responsibility to invest in technology for the purpose of regulatory compliance. Due to the nature of Alumina’s business, they must comply or may face the risk of being forced out of business. This simulation identifies and captures key stakeholders, Alumina’s core values, and addresses conflicts of key stakeholders and how to mitigate the risks associated with these conflicts.
When businesses operate on a global scale, they are exposed to federal/governmental regulations. It is compulsory for business to adhere with federal/governmental regulations, or they run the risk of penalties, which can be costly to their bottom line, and ultimately force them out of business. The creation of regulations creates the framework for compliance and prevents dangerous incidents that can adversely impact surrounding communities and its inhabitants.
Alumina has multiple lines of operating units: automotive components, manufacturing of packing materials, bauxite mining, aluminum refining and smelting. Five years ago, the organization went through a very public and embarrassing encounter with the EPA (Environmental Protection Agency). According to EPA, Section 6 criteria, Alumina was imposed with a penalty in violation of exceeding environmental discharge limits in the surrounding lake. The PAH ( Polycyclic aromatic hydrocarbons) was found to be above the prescribed limit. The company quickly responded to the violation and corrected the issue. They were also quick to engage the EPA in another round of testing to ensure that their operational processes were in compliance. Now the company is about to encounter another...