Business Regulation Simulation
University of Phoenix
Alumina Inc. is a $4 billion aluminum maker based in the United States (U.S.) and operates in eight other countries around the world. The company has business interests in automotive components and the manufacture of packaging materials, bauxite mining, alumina refining, and aluminum smelting (University of Phoenix, 2008). The U.S. market constitutes 70% of the company’s sales.
A crisis has arisen from allegations of environmental damages which have led to a person’s illness (University of Phoenix, 2008). This paper will identify key facts, regulations, and legal issues; identify several of Alumina’s values and stakeholders; identify conflicts which constitute ethical dilemmas; summarize legal counsel’s advice on the issues; and evaluate alternative solutions in the context of Alumina’s legal position.
Key Facts, Regulations and Legal Issues
Five years ago, a routine EPA compliance inspection revealed higher than acceptable levels of a carcinogenic substance, polycyclic aromatic hydrocarbons (PAH), to which Alumina promptly responded with a cleanup. The subsequent environmental audit reported the violation as corrected and the company has maintained a good compliance record since then (University of Phoenix, 2008). Alumina has made every effort to be compliant with environmental regulations.
Administering environmental laws at the federal level is the Environmental Protection Agency. Since many of the laws provide for both federal and state enforcement, the states also have strong environmental agencies. As is stated in The Legal and Regulatory Environment of Business (2005), “Policies are set at the federal level, and the states devise plans to implement them. States, and even local governments, also enforce their own laws that affect the environment and control pollution” (Reed, Sheed, Morehead, and...