Business Regulation Simulation

Business Regulation Simulation

Throughout the Business Regulation Simulation to indentify some of the key facts is that the company Alumina Inc. was accused by Kelly Bates a single mother who lived in the area. Alumina was accused of causing Bates daughter to develop leukemia. Bates states that the contamination from Lake Dira caused the leukemia. This is after Alumina was reported to be in violation from environmental norms in a routine EPA compliance evaluation inspection five years ago. Bates is also being helped by the Erehwon Reporter to show that Alumina is still polluting the Lake Dira.

The senior manager conducted an independent site study and with the PAH levels are evidenced to be lower than the prescribed 5 milligrams per liter for all hydrocarbons. This independent study shows that Alumina has been compliance with the Clean Water Act. Until increasing traffic has caused PAH concentration levels to increase to more than 100 times greater than pre-urban conditions putting humans, aquatics, and animals at risk.

Bates has threatened to file million dollar personal injury lawsuit against Alumina to recover compensatory and punitive damages. I choice to have Alumina use American Arbitration Association (AAA) to assist for an out of court settlement. The AAA is the leading provider of dispute resolution services. The settlement provides Bates with reimbursement for past medical expenses and a lump sum for future medical care, also an educational fund was set up for her daughter. This ended up costing Alumina a fraction of the cost of court fees and negative publicity.

Chief Operating Officer (COO) Chris Blake Protecting Alumina for future success/profits/losses

Public Relations Head Diane Richards Keeping Alumina in a positive light in the public's eyes

Legal counsel Arthur Todd Legal issues

Chairman Roger Lloyd Promoting Alumina/ Making sure everyone is doing what is best for the company

A conflict among the competing stake holders is that the head of PR is looking for what will make the company look good to the public. This could cause an ethical and legal dilemma if the PR person does not want to disclose all the needed information so the company will not be look down on negatively. The legal counsel will want to protect the company from any lawsuit, and may not be concerned with the public view on the company.

The basic issue for the simulation was Bates was starting a lawsuit against Alumina for you daughter getting leukemia from Lake Dira being polluted. Alumina team choice to do an independent study to check the levels of PAH in the lake. The study showed that the company had been compliant with the regulations and the levels were decreased.