Business Regulation Simulation

Introduction

There is a complex legal issue that has the attention of senior management at the Alumina Company. How that issue is handled will affect the way the company does business and its standing in the community. The purpose of the next few paragraphs will be to describe the company and its stakeholders, determine the values of the company, set the current situation, analyze the risk factors in possible solutions and present a best solution for Alumina to follow.

The company/stakeholders/values

Company info

Alumina is a four billion dollar company based in the United States of America; it has operations in eight countries and seventy percent of its business is in the United States. Business interests include, auto parts, bauxite mining and aluminum smelting.

Stake holders

1- Chairman Roger Lloyd – iron willed, quick tempered, his word is law

2- COO Chris Blake – calculating, genial personality, can be cutting, can convince people he is right

3- Head of PR Diane Richards – handles all the tough PR assignments, has great favor with the board for handling PR issues overseas with angry investors, not afraid to use her abilities to her advantage

4- Legal Counsel Arthur Todd – handles the regulatory and litigations issues in hazardous waste and environmental regulations, clean water issues, dredging of rivers, filling in wetlands, etc. “In the past 25 years, the federal government has enacted a series of laws regulating the impact of private enterprise on the environment. More and more companies are hiring environmental managers to deal with environmental compliance issues.” (Reed, et al, 2005, p512)

5- Kelly Bates – A local resident who filing an environmental lawsuit against Alumina, possibly wrecking the good enviro...

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...to be made beyond the facts of whether or not Alumina is releasing chemicals above the legal limits. Among the issues are the public relations Alumina wishes to have with the community, the possible release of company information that could hurt Alumina in the aluminum business and desire for Alumina to operate in an ethical manner. After examining the risks associated with the options presented to them, the decision by Alumina to work out their differences with Kelly using the services of an Alternative Dispute Resolution System proves the best answer for the problem given.

References:

Reed, O., Shedd, P., Morehead, J., & Corely, R. (2005). The legal and regulatory

environment of business. New York: The McGraw-Hill Companies.

Scenario One, Legal Environment of Business (2008). Business Regulation. Retrieved May 15, 2008 from University of Phoenix: rEsource.