Business Simulation - Alumina, Inc.
Businesses in a global environment run risks and one of the strongest areas of government regulation of business is the Environmental regulation. Businesses have to conform and comply with regulations mandated by the government and if failed to do so can face penalties that can cost the company immensely and sometimes closure. These regulations are set forth for companies to avoid major disasters that can affect the environment (to include animals and humans).
Alumina, Incorporated, a $4 billion aluminum maker operates in the United States with subsidiaries in manufacturing automotive components and manufacture of packaging materials, bauxite mining, alumina refining, and aluminum smelting. Operates in eight countries around the world, and the United States market constitutes 70% of its sales. Alumina experienced legal issues made public. Five years ago, Alumina was in violation of environmental discharge norms in a routine Environmental Protection Agency (EPA) compliance evaluation. The EPA was established to administer federal laws that set standards for clean water, to specifying cleanup levels for toxic waste sites, to controlling air pollution from industries and other sources. EPA found Alumina to have the PAH concentration in test samples above the prescribed limit and therefore, a clean up was ordered in which Alumina promptly compiled, and the violation was considered corrected after a follow up audit. The company now falls under the control of the Environmental Protection Agency (EPA) of region 6. Alumina then faced a new allegation or claim of environment endangerment to the community with accusations from a local resident, Kelly Bates. Kelly Bates, a 38-year-old mother accuses company of repeatedly contaminating the waters of Lake Dira with carcinogenic effluents. As a result of the contamination it caused her child of age 10 to acquire Leukemia. Bates believes that there is a correlation between...