Alumina, Inc.

Alumina, Inc.

Alumina, Inc.
Introduction
Alumina, Inc. is a 4 billion dollar aluminum maker that operates in eight different countries.   Alumina’s business segments include automotive components, manufacturing and packaging materials, bauxite mining, and aluminum refining and smelting.   Alumina falls under the jurisdiction of region six of the Environment Protection Agency (EPA). Five years ago, Alumina was in violation of environmental regulation in a routine EPA compliance evaluation.   Environmental regulation remains the most expensive area of government’s regulation of business (Corley, 2004).   Regulatory law concerning business consists of Antitrust, The Constitution, Securities regulations and environmental regulations.   The regulation the simulation focuses on is environmental laws.   Environmental laws are monitored at the federal level by the EPA.
In addition to the violation, a resident, Kelly Bates accused Alumina of contaminating the waters of Lake Dira with carcinogenic effluents.   The contamination has allegedly caused her 10 year old daughter to have leukemia.   Kelly Bates believes that the disease is as old as Alumina’s first offense of environmental law violation.   Kelly Bates’ allegation has caused Alumina to panic because it may go public and may cause the reputation of the company and good compliance.   This paper will indicate the key facts, regulations, and laws involved in the situation making the right decision to resolve the issue with minimal or no damage to Alumina’s public image.  

Key Facts
The key facts indicated in the business regulation simulation are facts that will lead to a win-win decision for both Alumina and Kelly Bates.   Environmental regulation is the most sensitive area of government’s regulation of business.   The government imposes well technology investment demands on industry for regulatory compliance.   Systems of Alumina, Inc. are effective and current emission rates are below the prescribed level.   Arthur Todd...