Business Regulation

Run the “Business Regulation” Simulation. Develop a 1,400-1,800-word paper (including tables) in which you do the following:

Introduction

Alumina Inc. is an USA-based $4 billion alumni maker. It operates in eight countries around the world with the USA accounting for seventy percents of its sales. Situated in the fringes of Lake Dira in the state of Erehwon, Alumina Inc. has business interests in automotive components and manufacture of packaging materials, bauxite mining, etc. Alumina Inc. falls under the jurisdiction of region six of the EPA.

Alumina Inc. was found guilty in violation of environmental discharge norms, during a routine EPA evaluation inspection five years ago. The PAH concentration in the test samples was above the prescribed limit. Alumnia quickly acted to the clean up order issued by EPA and the subsequent audit showed the the violation was corrected. EPA evaluations are necessary in order to protect public health and to eliminate water pollution.

Apparently, Alumna’s image is about to be damaged again by the allegations posted in the Erhwon Reporter newspaper. A 38 year old mother, Kelly Bates, has accused Alumnia Inc. of repeatedly contaminating the waters of Lake Dira and linked that to her 10 years old daugher’s Leuemia caused by consuming the water of the Lake.

In this paper, as a business manager at Alumnia Inc., I’ll try to find the key facts, regulations, and legal issues to managing the crisis with the minimal losses and preserve Alumnia’s public image.

a. Identify the key facts, regulations, and legal issues in the simulation.

Key Facts

Alumnia’s public image is in jeoperdise due to the fact that, a 38 year old mother, Kelly Bates, has accused Alumnia Inc. of repeatedly contaminating the waters of Lake Dira with carcinogenic effluents and alleged that consumption of contaminated water is the proximate cause of her 10-year old daughter’s lukemia. Bates also alleges that her daughter’s disease may be as old as Alumnials first instace of environmental law violation. Bate’s allegation is bound to hit Alumnia;s public image and will cause embarassment for the company.

Regulations

“Business enterprise is a major source of water pollution in the United States. Almost

one-half of all water used in this country is for cooling and condensing purposes in connection with industrial activities. The resulting discharge into our rivers and lakes sometimes takes the form of heated water, called thermal effluents. In addition to thermal effluents, industry also discharges chemical and other effluents into the nation’s waterways.” (reed, 2005, p 507) Environmental regulation remains the single most expensive area of government’s regulation of the business community. As a manufacturing company of hazardous material Alumnia is bound to compliance with the laws enforced