Alumina
Business Regulation Simulation
“The primary reason for environmental regulation is concern over the effects of human population growth and the impacts of human technology” (Reed et al, 2005). Alumina Inc. is a U.S.A.-based $4B aluminum maker that operates in eight countries around the world. The company’s interests lie in automotive components, manufacture of packaging materials, bauxite mining, alumina refining and aluminum smelting. During a routine EPA compliance evaluation inspection five years ago, Alumina was reported to be in violation of environmental discharge norms. Currently, Alumina is facing a crisis due to a local resident’s allegations of environmental damages.
Many government agencies regulate businesses, their processes and their actions. These governmental agencies include the respective state agencies that oversee corporations, the Internal Revenue Service and local Chamber of Commerce. These agencies pass many laws guiding businesses. These laws include consumer protection laws, contract laws, intellectual property laws, environmental laws, employment laws, tax laws and zoning laws. In order for any company to be successful, it has to be responsible enough to abide by these laws. Environmental regulation is one of the most stringent areas of government regulation and the government and its citizens expect compliance.
The goal of this paper is to identify the regulatory and legal issues in the Alumina simulation, identify stakeholders and their conflicts, and recommend a solution for Alumina’s problems. In dealing with this problem, several legal issues might arise if the wrong decisions are made. Kelly Bates’ allegation is bound to cause the company more embarrassment and loss of public confidence. Care must be taken since she has already spoken to the press. One of the options for solving this problem is to conduct a private investigation of Bates. Bates is a woman that has confronted Alumina Inc with a potential five-million dollar...
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