Essay about Business Regulation Simulation

Decent Essays

Introduction There is a complex legal issue that has the attention of senior management at the Alumina Company. How that issue is handled will affect the way the company does business and its standing in the community. The purpose of the next few paragraphs will be to describe the company and its stakeholders, determine the values of the company, set the current situation, analyze the risk factors in possible solutions and present a best solution for Alumina to follow.
The company/stakeholders/values
Company info
Alumina is a four billion dollar company based in the United States of America; it has operations in eight countries and seventy percent of its business is in the United States. Business interests include, auto parts, bauxite …show more content…

“The consequentialist ethics known as stakeholder theory … Considers the concerns of all proper stakeholders and weighs their interests when making decisions” (Reed, et al, 2005, p49)
Company Values
1- Alumina wishes to remain compliant with pertinent regulations and project an image of a good environmentally conscious corporate citizen.
2- Alumina values the competitive edge and will work to best advantage for profitability
3- Alumina will defend itself against charges that it does not operate within the law
A past infraction, almost five years ago, is the only blemish on Alumina’s EPA record. Now a public accusation of a single mother who claims continual dumping of carcinogens in the lake has caused her daughters leukemia. While conducting an internal audit of the company, it is found that site testing reveals PAH levels released by Alumina to be below the EPA standards. As well, a scientific journal points to traffic congestion increases in the area for the raised level of PAH to dangerous amounts. A local single mother, Kelly, and the local paper are requesting data from the EPA on the five year old infraction under the provision of the Freedom of Information Act. Kelly threatens a lawsuit seeking compensatory and punitive damages from the five year old EPA violation as the cause of her daughter’s leukemia.
Ethical Dilemma
The main dilemma is how to respond to the charges? It appears that Alumina has clear case

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