Running head: BUSINESS REGULATION SIMULATION: ALUMINA, INC.
Business Regulation Simulation: Alumina, Inc.
Alumina is a US-based aluminum maker that operates in eight countries. 70% of its sales are accounted for in the United States. Five Years ago, Alumina was found to have been in violation of an EPA compliance inspection. The EPA or Environmental Protection Agency is responsible for the enforcement of the pollution of air and water, solid waste and toxic substance disposal, pesticide regulation and radiation laws. The evaluation inspection found that the PAH concentration was above the allowable limit. Alumina quickly responded to the violation and returned quickly within compliance of the PAH limits. Despite this, Alumina has a good record with environmental regulation compliance. An accusation of illness due to the increased PAH concentration is what the Company does not want, but that is exactly what Kelly Bates is telling the reporters.
Kelly Bates is a local resident of Lake Dira, Erehwon where Alumina has business interests in mining, refining and smelting aluminum products. Mrs. Bates is a single mother who accused Alumina of contaminating that water resulting in her daughter’s leukemia. This accusation appeared in the Erehwon Reporter which also alleges that the onset of the disease might be as old as the first instance of the PAH concentration being too high. Alumina has the challenge of how to respond. When responding to the accusation, Alumina has to take in consideration the values of its shareholders. “Ethical corporate behavior depends on managers who recognize and take into account the various stakeholders whose interests the corporation impacts (Reed, Shedd, Morehead, Corley, 2005).”
The man shareholders directly invol ...