Alumina: Business Regulation Simulation Essay

1798 Words 8 Pages
Alumina: Business Regulation Simulation

Abstract

This paper identifies the key facts, regulations and legal issues in the Business Regulation Simulation regarding Alumina, a global multibillion company. It identifies several of Alumina's values and stakeholders and discusses the conflicts among the competing stakeholders according to the simulation. In addition, a summarization on the basic issues on how the internal counsel handles the regulatory issue. Three alternative solutions are also discussed using the risk analysis matrix and summarizes how these align with Alumina's values.

Business Regulation Simulation In a global environment, businesses have many business risks and one of them is federal governmental
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Key Facts, Regulations, Legal Issues One of the key facts was that Alumina was found to have high concentration levels of Polynuclear Aromatic Hydrocarbons (PAH's) in their environmental expulsion standards after an evaluation by the EPA five years earlier. Since Alumina was out of compliance, a clean up was ordered by the EPA and Alumina acted in accordance to correct the problem and a subsequent test was in compliance (Simulation, 2007).
This was an excellent course of action which helped Alumina establish itself as a responsible and environmentally friendly company. Any business that has emissions that are not processed accordingly to regulations, run the risk of ruining the environment can and therefore, the EPA's cleanup was in order.
Alumina understood that PAH's had to be monitored and cleaned up. They also understood these organic compounds are produced when materials containing carbon and hydrogen are burned. The PAH's are harmful due to their carcinogenic mutant substances (http://www.propex.com/C_f_env_pah.htm). The environmental regulation is considered the most severe of governmental regulation of a business because of the costs involved for its rigid compliance. The penalties are strict because the government requires that businesses

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