Business Regulation Simulation

Business Regulation Simulation, alumina

University of Phoenix MBA560

February 2008

Introduction

Alumina is a four billion dollar automaker with divisions in eight countries, 70 % of the divisions are in the United States. Alumina was charged five years ago with non-compliance due to a discharge of Polycyclic Aromatic Hydrocarbons (PAH). Alumina is faced with a potential lawsuit by a local citizen who believes the discharge of PAH into the water up to the time of the non-compliance charge has given her 10-year old daughter leukemia. Alumina also has to make the decision to do what is right for the interests of its stakeholders and the company before the new of the potential lawsuit gets beyond the city of Erehwon.

Business Regulation Simulation

Alumina has worked hard to keep in compliance with the Environmental Protection Agency (EPA) and all the regulations of the cities, counties, states and countries its divisions are located. The board and management of Alumina place great importance on the preservation of the environment and the regulations governing it. It was a surprise when the management was approached with a potential lawsuit because of a violation that happened over five years ago.

Business managers' of divisions of large corporations such as Alumina need to realize the many issues facing corporations when in violation of EPA governed regulations. The involvement in maintaining the highest quality and compliance of EPA standards job is taken very seriously and is a responsibility not only to Alumina but to the community.

Five years ago the Alumina division based on Erehwon, during a routine EPA audit was found to be in violation of environmental discharge of polycyclic aromatic hydrocarbons (PAH). A concentration of PAH found to be above the EPA limits were released into Lake Dira. Alumina repaired the discharge station, paid the fine and was in compliance with the EPA regulations. Alumina has since been to be found in compliance and the levels of PAH are well below the limits for all hydrocarbons.

Polycyclic Aromatic Hydrocarbons

What is PAH? Polycyclic aromatic hydrocarbons are a group of chemical compounds formed during incomplete burning of coal, oil, gas, wood, garbage or organic substances such as tobacco and charbroiled meat. PAHs can be odorless, colorless and with a faint, pleasant odor. PAHs are used in dyes, perfumes, plastics, medicines and pesticides. They can be found in crude oil and tars. PAHs can also attach themselves to dust particles, solids, soil or sediment (ATSDR, 1995).

Where or how do they enter the environment? PAHs enter the environment as exhaust from automobiles, forest fires, wood burning, waste treatment plants and hazardous waste sites. A person can be exposed to PAHs throughout the environment, in your house, car, and workplace. Most individuals are not exposed to one particular type of PAH but to a combination of many. It has also been noted PAHs are found more in urban than in rural areas. PAH are slow to be absorbed by the body and are mainly stored in the kidneys, liver and fat. While slow to be absorbed, they do not stay in the body for any period of time and are released in feces and urine (ATSDR, 1995).

How can PAHs affect a person's overall health? In some instances PAH concentration is not enough to affect one health. In other instances, PAH exposure can result in cancer, birth defects, infertility and skin diseases. How can a person be protected from PAH exposure? A set of parameters is set by the EPA depending on the type of PAH. The recommendation is to limit the amount of time around tobacco or wood smoke, contaminated air down to the contact a person's body is exposed to these substances to 3 milligram per day (ATSDR, 1995).

The government is working at controlling the amount of exposure a person is given to PAHs. A person must also realize while controlling exposure to PAHs they are everywhere. They have been with the world since the beginning of time. As concerned citizens, people are learning how to deal with PAHs.

Lawsuit

Alumina has the latest technology and systems in place to protect their employees, the environment and the community. Realizing how embarrassing Alumina was five years ago, the CEO does not want to revisit those days. Even though they are not violating any EPA rules and regulations and the facts aren't in as to if Alumina's discharge is the only cause of Kelly Bates daughter's leukemia has not been found.

The request by Kelly Bates and The Erehwon Reporter for access to certain records as allowed by the Freedom of Information Act (FOIA), 5 U.S.C. Section 552 allowing access had been granted by Alumina. Alumina management wanted to settle this situation as quietly and quickly as possible. Despite supplying Bates and The Reporter this information, Bates wanted to proceed with an injury lawsuit against Alumina, Inc. for compensatory and punitive damages. She claims that Alumina, Inc's negligent conduct from five years ago is the cause of her daughter's leukemia today. Alumina is taking advice on how to handle this situation.

When looking into a trial case of this type, businesses need to realize all the factors involved. One factor is the negativity of going to court against a person having a serious