The Importance of Regulation of Business Practices in Society

The Importance of Regulation of Business Practices in Society

  • Submitted By: Sunshine48
  • Date Submitted: 02/12/2010 6:23 AM
  • Category: Business
  • Words: 1397
  • Page: 6
  • Views: 997

Regulation of business practices serves to protect society. Corporations have a responsibility to uphold environmental regulations. In the business simulation model, students were introduced to Environmental Protection Agency (EPA) legal issues and principals. Alumnia, a $4 billion aluminum manufacturer based in Erehwon, served as the business simulation case example. One of the EPA’s main goals is to ensure that the waterways within the United States are safe from contamination. The Clean Water Act (CWA), enacted in 1972, regulates quality of surface water standards and the discharges of pollutants into the U.S. surface waters. (Environmental Protection Agency, n.d.). Five years ago, Alumnia was found to be in violation of the CWA, by discharging polycyclic aromatic hydrocarbons (PAH) that were above the prescribed limits. Following the EPA findings, Alumnia immediately cleaned up the environmental contaminated discharge. Other than the incident five years ago, Alumnia has been in compliance with the CWA and other EPA regulations (University of Phoenix, 2009).
Through a published report from the Erehwon Reporter, Kelli Bates, an Erehwon resident has made a claim that Alumnia’s past PAH Clean Water Act violation of five years ago has caused her 10-year daughter to be stricken with leukemia (University of Phoenix, 2009). Alumnia believes that Kelli Bates’ accusations are untrue. In the past five years, Alumnia has been in compliance with the Clean Water Act and has had no further incident with the EPA. The proper and timely response to Bates’ claims could determine the final resolution outcome. Stakeholders of Alumnia include Roger Lloyd, Chairman, Chris Blake, COO, Diane Richard, Head of Public Relations and Arthur Todd, Legal Counsel, Alumnia’s employees, and Lake Dira’s residents (University of Phoenix, 2009).
As an initial response to Kelli Bates’ claim, Alumnia faces several choices: 1) the company may conduct an independent study to determine if the...

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