Share
Explore BrainMass

Risk Analysis of Alumina, Inc.

After running a "business simulation" develop a 1400 to 1800 word risk analysis that includes the follow criteria:
a. Identify the key facts, regulations, and legal issues in the simulation.
b. Based on the simulation, identify several of company values and stakeholders. What are the conflicts among the competing stakeholders, and how does this constitute an ethical dilemma?
c. If you have access to internal counsel at your organization, summarize the basic issues for the counsel and ask him or her how your organization would handle a regulatory issue like that in the simulation. (Be sure to cite in proper APA style this interview.) If you do not have access to internal counsel at your organization, use the script provided.
d. Use the template provided to create a risk analysis matrix. Considering alternatives not contained in the simulation, recommend a solution for company and evaluate it in the context of company's legal position. Justify your recommended solution.
e. How well does your recommended solution address the ethical dilemma identified in item b? How well does it align with company's values?

Solution Preview

Introduction
Alumina Inc. is a $4 billion aluminum maker with interests in automotive components, packaging materials, bauxite mining, and alumina refining and smelting. Alumina operates in eight countries worldwide however, 70% of its sales are accrued in the United States. Five years ago, Alumina was found to be in violation of environmental discharge standards when the Environmental Protection Agency (EPA) conducted a compliance evaluation. Alumina was quick to correct the finding and a subsequent inspection proved that the violation was "corrected." Alumina has maintained an outstanding compliance record with the EPA since the initial incident.

Presently Alumina is being accused of continuing to pollute the waters of Lake Dira which local resident, Kelly Bates, directly attributes to her daughter's leukemia. Mrs. Bates has indicated that the leukemia could have initiated as early as the first pollution incident. Alumina must now evaluate the risks and determine the best course of action for this potential public relations nightmare.

Fact, Stakeholders, and Issues
Alumina has several facts that provide solid ground to stand on. Alumina has only had one incident of pollution which they corrected immediately and was confirmed through a follow up inspection. Alumina has maintained their good standing on environmental compliance since this incident. After conducting an individual site study, Alumina came to the determination that the amounts of pollution were well below the maximum set forth by the EPA. Further, a scientific study proved that the local traffic was responsible for the increased contaminants in Lake Dira. These four facts were not enough to deter Kelly Bates from seeking damages from Alumina. While a link between the pollutants in Lake Dira and her child's leukemia has not been established, Mrs. Bates is requesting, under the Freedom of Information Act, a copy of the findings from Alumina's only non-compliance incident. Kelly Bates is stating that her child's disease may be the result of Alumina's first incident and has compounded over the years. The only facts that Mrs. Bates has on her side is that her child has leukemia and that she lives near Lake Dira. Anything else is open to interpretation and circumstantial.

The values that Alumina has demonstrated since the first non-compliance violation have been upstanding and unquestionable. Alumina was quick to correct the EPA's finding which shows a commitment to meeting the standards set forth by the EPA. When the local newspaper printed Mrs. Bates' story, Alumina did not stand in front of the cameras and makes excuses. Instead, Alumina conducted an internal site study to determine if there were any new violations. This study proved that Alumina was well below the maximum amount. This act of self-policing was in direct alignment with the EPA guidelines and demonstrates a commitment to high corporate ethics. This "self-policing" is highly encourage by the Environmental Protection Agency through ...

$2.19