Alumina-Bates

ALUMINA o 4 billion aluminum maker o Operates in 8 countries o 70% of sales = USA o Situated in Lake Dira, in the state of Erekwon o Business interest in automotive components, and manufacture of packaging materials, bauxite mining, alumina refining and aluminum smelting o Falls under the jurisdiction of region 6 of the EPA TOP MANAGEMENT 1) Roger Lloyd - iron willed chairman - (his) word is law in the organization 2) Chris Blake - second in command with “calculating eyes” - COO - convinces everyone that he is right sometimes even Roger Lloyd. 3) Diane Richards - Head of Public Relations - Tasks to work out best PR strategy for a given situation - Her deft handling of angry investors last year, when Alumina, made big technology changes in its level B plants in developing countries won her the unlimited trust of the board of directors - Uses her position to her best advantage 4) Arthur Todd - Legal Counsel - experienced in handling litigation and regulatory proceeding involving releases of solid and hazardous waste (under CERCLA and RCRA); natural resources damage; management of solid and hazardous waste and water (including dredging of navigable waters and filling of wetlands) HISTORY Alumina was reported to be in violation of environmental discharge norms in a routine EPA compliance evaluation inspection 5 yrs ago. The PAH concentration in test samples was above prescribed limit a clean up was ordered by the EPA, to which ALUMINA complied promptly. The subsequent environmental audit reported the violation as “corrected”. Barring this one incident, ALUMINA, has enjoyed a good oveall environmental regulation compliance record. Kelly Bates, a local resident however threatens to mar ALUMINA’s good compliance record. AS A BUSINESS MANAGER: - lead ALUMINA in managing a crisis arising out of allegations of environmental damages. OBJECTIVE: - prevent extensive loses, environmental and commercial - preserve public image - abide by the pertinent environmental statutes ISSUE: Kelly Bates accuses ALUMINA of repeatedly contaminating the waters of LAKE DIRA with carcinogenic effluents and the alleged consumption of contaminated water is the proximate cause of her daughter’s leukemia. Bates also alleges that her daughter’s disease is as old as the first environmental violation. CONCEPT SUMMARY The states and federal government of the USA jointly administer and enforce laws related to environmental safety. The EPA is a federal agency that enforces environmental regulations. As a manager, you need o be aware of – and comply with – both the federal and state laws that affects your business. Maintaining good community relations is equally important. In times of crisis, the local community’s support, or its lack thereof, can be a big differentiator in determining issues addressed. Citizens can request information from the records of government agencies and private enterprises, under certain conditions, to bring contentious issues to their rightful conclusions. ALUMINA has the option to hold back sensitive business information, and any other it deemed confidential, as part of the exemptions of the FOIA.