Mba560 Uop Week 3. Business Regulation

2809 words - 12 pages

Business Regulation PAGE \* MERGEFORMAT 1
An excellent paper. Good use of the Risk Analysis Matrix.Score = 12 out of 12Business RegulationUNIVERSITY OF PHOENIXENTERPRISE RISKMBA 560C. G. (PETE) HATFIELApril 14, 2008Business RegulationThe operations of big business corporations is one of the major causes of water pollution in the United States. Nearly 50% of all water used in the United States is for cooling and condensing purposes in connection with industrial activities. The resulting discharge into rivers and lakes usually takes the form of heated water, called thermal effluents. In addition to thermal effluents, companies also discharge chemical and other effluents into the nations' ...view middle of the document...

The PAH (Polynuclear Aromatic Hydrocarbons) concentration in the test was above the prescribed limit. A clean up was ordered by the EPA, to which Alumina complied promptly. The subsequent environmental audit reported the violation as "corrected" (University of Phoenix, Week Three, rEsource. Enterprise Risk Web site). The Clean Water Act, passed by Congress in 1972, is administered primarily by the states in accordance with EPA standards. Alumina falls under jurisdiction 6 of the EPA. The Clean Water Act sets goals to help eliminate water pollution (University of Phoenix, Week Three, rEsource. Enterprise Risk Web site).Legal Issues:Other than this one incident five years ago, Alumina has enjoyed a good overall environmental compliance record for years.Alumina is currently facing negative external publicity and a possible lawsuit for the violation of the Clean Water Act.A local, Ms Kelly Bates has accused Alumina of repeatedly contaminating the waters of Lake Dira with carcinogenic effluents, and has alleged that consumption of the contaminated water is the proximate cause of her 10-year-old daughter's leukemia. Bates also alleges that her daughter's disease may be as old as Alumina's first instance of environmental law violation. (University of Phoenix, Week Three, rEsource. Enterprise Risk Web site)Values and Stakeholders:Alumina's main goal in this situation is to manage the crisis. The company's main objective is to prevent extensive losses, environmental and commercial, preserve Alumina's public image and abide by the pertinent environmental statutes.Large corporations affect the interests of many different groups in society, which are called "stakeholders" because they have something at risk when the company acts and thus have a "stake" in it. Investor-owners, employees, the board of directors, and managers typically have a stake in the actions of large corporations, but so do customers, suppliers, financial creditors like banks, and the community in which a company is located. If a company pollutes as a by-product of production, society itself may have a stake in what actions a corporation takes.The main stakeholders in this case are Chairman Roger Lloyd and his upper management, Kelly Bates and the Erehwon community.Lloyd wants to turn the company's situation around so as not to loose any ground in the industry, and also not have this scandal affect sales and revenue. His upper management staff is of very different opinions as to the way they should address this accusation by Ms Bates. The PR head, Diane Richards, has recommended that they conduct a private investigation on bates. This is very dangerous and would tarnish the image of Alumina if word gets out about it, and the company could be held liable for invasion of privacy.Many times, business organizations encounter the dilemma of ethical decision making. Though business relationships are more economic in nature, their moral and ethical dimension have an equal impact on the...

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