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Business Regulation

Business Regulation
University of Phoenix
Enterprise Risk
MBA/560


Business Regulation
Introduction
Alumina Inc, a US based international aluminum maker, was accused by 38-year-old single mother, Kelly Bates, of repeatedly contaminating the waters of Lake Dira ,and has alleged that the contaminated water is the major of her 10- year-old daughter's leukemia. 5 years prior to the allegation, the EPA charged Alumina to be in violation of environmental discharge norms during a compliance evaluation. Alumina promptly ordered a clean up of Lake Dira and has been in compliance with EPA regulations ever since. This report will identify the key facts, regulations, and legal issues of Ms. Bates allegations. The author will also identify Alumina's values, stakeholders and any ethical dilemmas surrounding the alleged incident. Finally, the author will consider and recommend alternative solutions to Alumina's situation.
Summary of Events
In April 2002, The Erehwon Reporter reported that Kelly Bates, accused Alumina of repeatedly contaminating Lake Dira with carcinogens, and her 10- year-old daughter developed leukemia from consuming the contaminated Lake Dira water and that her daughter's disease coincides with Alumina's documented EPA violation. In response to the allegations, Alumina conducted an independent site study and found that it was indeed well within compliance of EPA standards. Another study, published in a peer reviewed scientific journal, cited that traffic was the cause of pollution in Lake Dira.
May 2002, the Erehwon Reporter did a follow on article that brought up Alumina's 1997 EPA violation. The EPA notified Alumina that the environmental audit was requested by Ms. Bates. Alumina allowed partial release of the environmental audit, under the Freedom of Information Act (FIOA). The community backlash was mild and Alumina's reputation remained intact. Despite the community's reaction, Ms. Bates, still contended that her daughter's leukemia...