Minimizing Tort And Regulatory Risk At Covidien

1697 words - 7 pages

This purpose of this document is to plan for minimizing tort and regulatory risk for the global organization, Covidien. Using the information gathered from the "Business Regulation" simulation regarding Alumina Inc. as a foundation for seeking potential issues, one will identify the legal principles that applies to a strategic action plan for minimizing risk. This plan will clearly identify common torts and other regulatory risks as to best manage the steps to preventative problems, act as a detective measure and work to correct existing problems.Our class "Business Regulation" simulation based on Alumina Inc., a $4 billion-dollar global manufacturing company that is located in the state ...view middle of the document...

The Environment Protection Agency ordered a clean up of its violation and subsequent environment audit reports showed the violations were corrected."33 U.S.C. s/s 1251 et seq. The Clean Water Act (CWA) establishes the basic structure for regulating discharges of pollutants into the waters of the United States and regulating quality standards for surface waters. The basis of the CWA was enacted in 1948 and was called the Federal Water Pollution Control Act, but the Act was significantly reorganized and expanded in 1972. "Clean Water Act" became the Act's common name with amendments in 1977." (Environmental Protection Agency, n.d.).As Alumina falls under the jurisdiction of the Environmental Protection Agency, Covidien falls under the jurisdiction of the U.S. Department of Health and Human Services. To provide the highest standards of corporate compliance, Covidien is dedicated to maintaining effective programs that involve education and training of all its employees to ensuring that corporate conduct is ethical. Leadership at Covidien is structured to align with the rules and regulations set by the regulatory agency, the Department of Health and Human Services."The Department of Health and Human Services (HHS) is the United States government's principal agency for protecting the health of all Americans and providing essential human services, especially for those who are least able to help themselves." (U.S. Department of Health and Human Services, n.d.). HHS is the body of government that controls and monitors three functions of law relating to the health care industry: Health Information Privacy Act, Human Research Protection and Health Information Technology Standards. Covidien wants to maintain its high level of efficiency so that it does not fall into the same trap as Alumina Inc. when Alumina failed to pass inspection five years ago. Covidien undergoes testing and inspection from the HHS so it needs to be proactive in maintenance of policies and procedures in regards to how it carries out the function of the three following laws: Health Information Privacy Act, Human Research Protection and Health Information Technology Standards.LitigationThe potential litigation in our simulation made reference to Kelly Bates, single mother of 10 year-old daughter. Bates, whom alleges that Alumina Inc. is responsible for daughter's leukemia, claims that due to the negligence of Alumina in contaminating Lake Dira with carcinogenic particles that were consumed by her daughter; she developed leukemia. The disease may date back five years to the first instance that Alumina Inc. was in violation of the environmental law. The Erehwon reports the story about Bates' claim that Alumina Inc. conducted itself wrongfully and continues to pollute the drinking supply with carcinogenic. Bates files a personal injury suit on behalf of her daughter for compensatory and punitive damages. Compensation Regulation is a tort function that allows one to seek money compensat...

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