Alumina Inc. is a US based aluminum maker with assets worth $4 billion and operates in 8 countries around the world. Alumina has business interests in automotive components and manufacture of packaging material, bauxite mining, alumina refining, aluminum smelting. Alumina Inc. falls under the jurisdiction of region 6 of the EPA. Alumina was reported to be in violation of environmental discharge norms in a routine EPA compliance evaluation inspection 5 years ago. A 38 year old single mother Kelly Bates has accused Alumina Inc. of repeatedly contaminating the waters of lake Dira with carcinogenic effluents and has alleged that consumption of the contaminated water is the proximate cause of her 10 year old daughter’s leukemia. Bates also alleges that her daughter’s disease may be as old as the Alumina’s first instance of environmental law violation.
This paper identifies the key facts, legal issues and regulations involved in the situation and making the right decision to resolve the issue with little or no damage to the public image of Alumina Inc. Several of Alumina’s values and stakeholders are analyzed for conflict of interest and ethical dilemma. The basic issues are presented to an internal counsel for advise on how would an organization handle a regulatory issue like this A thorough Risk analysis is performed to identify the risks, impact and mitigation strategies for each of these risks. Alternative solutions are recommended to address the ethical dilemma such that they align with Alumina’s values.
Key facts
1. Environmental regulation is the most stringent area of government’s regulation of business
2. The government imposes great technology investments demands on industry for regulatory compliance.
3. Systems at Alumina Inc. are effectiv ...