Business Regulations

Business Regulation

Andre’ T. Thompson

University of Phoenix

MBA/560

March 15, 2007

Professor Tracy Bomar-Howze

Alumina Inc. is an aluminum maker that operates in eight countries worldwide.

accounts in the United States make up 70% of the companies $4 billion worth. Located

on Lake Dira in the state of Erehwon, Alumina has business interests in automotive

components, the manufacturer of packaging materials, bauxite mining, aluminum

refining, and aluminum smelting. The company falls under the jurisdiction of region 6 of

the EPA.

Five years ago, Alumina was in violation of environmental discharge norms in a

routine EPA compliance evaluation. PAH concentration in test samples was above the

prescribed limit. A clean up was ordered, with which Alumina promptly complied. A

follow up audit reported the violation as corrected. Other than this single isolated

incident, Alumina has a good record of compliance before and after.

Kelly Bates, a 38 year old single mother, accused Alumina 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. Bates also alleges that her daughters condition may be as old as

Alumina’s first instance of environmental law violation.

As a corporation, Alumina’s first interest must be being profitable, as that is

what keeps them in business. To that end, they are responsible to their shareholders.

Alumina also has a responiblity to the communities that it operates to be a good neighbor.

That means to respect not only the surrounding environment and the people and animals

that inhabit that environment.

The stakeholders in this situation are as follows: Roger Lloyd, the company

chairman, Chris Blake, the company Chief Operating Officer, Diane Richards, the Head

of Public Relations, Arthur Todd, the company legal counsel, The Erehwon Reporter, the

newspaper that initially broke the story, Kelly Bates, the mother who actually filed the

claim, the shareholders, who actually run the company. The company officials could

actually be listed together under the company, which must report to the shareholders, the

actual owners of the company. Another group of stakeholders would be the lower level

employees of the company, who have a great deal of concern over the outcome of the

matter, as their jobs, and ultimately their livelihood is at stake. The newspapers stake in

the matter is to remain credible. Kelly Bates stake in this issue is the care of her daughter.

The ethical dilemma that lie in this situation are numerous. One of the options

presented in the simulation was to investigate Kelly Bates. This option raises issues of

invasion of an individual’s privacy. Almost all of the options in the simulation bring a

significant