Alumnia, Inc

Introduction

Alumina, Inc. (AI), as portrayed in the University of Phoenix (UOP) simulation, is a $4 billion dollar company operating n eight countries around the world. AI’s business interests are in automotive components and manufacture of packaging materials, bauxite mining, alumna refining, and aluminum smelting (UOP, 2007). Five years prior, AI was reported to be in violation of environmental discharge norms discovered during a routine compliance evaluation inspection. AI was ordered by the Environmental Protection Agency (EPA) to clean up to which they promptly complied. AI claims strict compliance with all standards and regulations. Kelly Bates has now accused AI of poor environmental practices. She further claims that those poor actions could have been the proximate cause of leukemia her 10-year old daughter to developed. AI disputes that claim and defends their environmental record. An examination of the key facts, regulations and legal issues governing this issue follows.

Key Facts, Regulations and Legal Issues

Fact 1: The Erehwon Reporter report[ed] that Kelly Bates accused AI of repeatedly contaminating the waters of Lake Dira with carcinogenic effluents, and has alleged that consumption of the contaminated water is the proximate cause of her 10-year old daughter’s leukemia (UOP simulation, 2007). The impact of such an accusation could damage the company’s “good name” and public image and adversely affect business by swaying public opinion. AI, convinced the emission rates were way below the prescribed level because of the use of the best available technology for pollutant cleanup, decided to release a news story highlighting the efficacy of the systems and the clean record. AI complied with the Clean Water Act. Subsequently, AI conducted an independent study which affirmed the fact that the PAH levels were lower than the prescribed 5 milligrams per liter for all hydrocarbons. Armed with that information, AI was effectively able to avert the accusation Bates made of “repeatedly contamination the waters of lake Dira” (UOP simulation, 2007).

Fact 2: Traffic is causing water pollution in Lake Dira. Increased traffic is poisoning the waters of Lake Dira with polycyclic aromatic hydrocarbons (PAHs) as much as 100 times greater than pre-urban conditions and pose a danger to animal, aquatic, and human life While the fact remains that AI did violate the PAH discharge norms 5 years prior, the state has become heavily industrialized. The independent