Alumina_Simulation_Paper

Alumina is unwillingly, learning about the hardships of repetition. For the second time in 5 years, they have found themselves in the middle of an environmental violation. The only difference is the first one found during a regular EPA inspection, and the second one derived from a costly mistake. This costly mistake has put Alumina in a very uncomfortable position, and it allowed their pass violation to resurface, and hinder their current situation. Alumina is an international aluminum maker that operates in eight different countries around the world. In this particular case they were working out of Erehwon off the waters of Lake Dira, when defamation showed his ugly hand. A local Erehwon resident named Kelly Bates, caught Alumina completely off guard claiming that, Alumina was responsible for her daughters current health condition. She claims that her daughters Leukemia diagnosis stems directly from the water contamination of Lake Dira. The Clean Water Act moved water pollution regulations from local to federal control. Federal standards for water discharges were established on an industry-wide basis, and all industries, regardless of state or location, and are required to comply (Jennings, 2006). With Mrs. Bates claiming the company was in violation of the Clean Water Act, Alumina’s good compliance streak is in limbo. This situation quickly began to get out of hand. Mrs. Bates began slandering the Alumina name by publically reporting her claim, and stating that the company’s proclaimed wrong doings. According to the text The media enjoy a qualified privilege, which is freedom to publish information even though it may be inaccurate, so long as it is not published with malice or with reckless disregard for whether the information published is true or false (Jennings, 2006). Mrs. Bates also requested a copy of the environmental audit report that got Alumina in trouble 5 years ago. She was legally able obtain the report byway of the Freedom of Information Act, which allows the people the freedom to request related information about federal agencies, and major corporations. Alumina found themselves “stuck between a rock and a hard place”. They pondered about how or if they could counter the claim, and save their rep, and their business from tanking. Their talented crew of executives banded together and formed a team, that would salvage their companies’ reputation, and protect their bottom line. In the midst of fighting back Alumina decided to release the information that Mrs. Bates requested, but they withheld any information that could possible damage the company. Shortly thereafter Alumina learned that the increased traffic in the Erehwon area is a primary contributor to the contamination of the local waters. The polycyclic aromatic hydrocarbons (PAH) were extremely higher than what they should’ve been, and it was a great threat to animal, aquatic, and human life-forms. In the companies public release they showed where their (PAH) levels were not exceeding the prescribed 5 milligrams limit. By publishing the report the company momentarily weakened Mrs. Bates defense. However, 38 years old Kelly bates continue to pursue her claim. To counter the lawsuit the team agreed to quickly deaden Mrs. Bates claim by seeking third party mediation. The team decided to seek help from the leading dispute resolution corporation there is. The American Arbitration Association (AAA) provided Alumina with a great mediator who made a headache go away. Mrs. Bates agreed to settle out of court and was rewarded medical reimbursement, for her daughters past treatments, additional money for future medical bills, and a additional educational fund. The mediation marked the end of a host of negative publicity, and horrible existence of a lawsuit. With Alumina filing for mediation they saved their reputation, money, and time. Letting this case go to trial would not have been healthy for neither side. Although I believe Alumina might have won the case, thanks to the traffic report that showed where the contamination was coming from. I felt this finding alone exempt Alumina from being held accountable for Mrs. Bates, daughter’s medical condition. Also Alumina is now partners with all of the other companies that seek litigation through third party mediation to keep themselves out of court. Although this is popular way to settle claims, this behavior allows the all businesses to get robbed by frivolous suits. To correct means to rectify, amend, and fix wrong situation. In this situation an international aluminum manufacture called Alumina, found themselves in a frightening situation. Alumina glory was hanging in the balance, because they are responsible for the current hardships of the William Sound. “The company failed to show it had an effective system in place to deal with the crisis. They showed no leadership after the event and appeared indifferent to the environmental destruction” (Legal environment of Business). After the confusion died out, and reality set in, Alumina took a preemptive angle towards fixing this problem. The company executives form a team of experts to handle all of the legal issues headed their way. The first corrective act was geared toward recommitting themselves to the neighboring community. For restoring their image and maintaining a good reputation is extremely vital during a crisis. Especially when they were being challenged by neighboring resident, who claimed that Alumina was responsible for her ailing daughter condition. Mrs. Kelly Bates filled a lawsuit alleging that the company’s clean water violations lead to her 10-year old daughters Leukemia diagnosis. With a lawsuit hanging over their heads and more legal issues on the way, the team agreed to release a partial audit report to somewhat quiet the community. The team felt secure in releasing this report, because they were backed by the Freedom of Information Act (FOIA) exemption rule 4. The (FOIA) makes federal agencies and corporation discloses records in writing requested by any-one person/persons. However, the reporting institute can legally withhold information that’s in accordance to the exemptions. In other words Alumina received protection from disclosing information that could possibly be detrimental to the company. After releasing the partial audit report, the team decided to settle Mrs. Bates claim out of court. They felt like this was the best way to go, because they could salvage their image, save on court fees, and not risk their bottom line. The team chose to use the American Arbitration Association (AAA), to provide them insight on a possible conflict resolution. To Alumina avail, third party mediation worked. Alumina awarded Mrs. Bates with immediate medical reimbursement, and additional funding for future medical bills and education pursuant. Alumina found themselves in the middle of a similar situation 5 years ago. Ironically they reacted the same way they did in the current situation. According to the text “the company failed to show it had an effective system in place to deal with the crisis. They showed no leadership after the event and appeared indifferent to the environmental destruction. (Legal Environment of Business). In the aftermath of yet another horrible incident the EPA ordered Alumina to clean up their act, and lower their polycyclic aromatic hydrocarbons (PAH) concentration levels. Since then alumina corrected their issues, and clean have kept a clean record for the (FOIA). Alumina should appoint a person/persons to monitor their PAH issues. Reports show that Erehwon’s drastic increase in traffic has tainted Lake Dira with unwanted PAH. If Alumina dose not want their name in anymore legal fiascos, they must clear themselves of this problem. They should definitely shine light on this situation; it could possibly help them shun away from future strict liability damages. References Jennings M.M. (2006) Business: Its legal, ethical, and global environment (chapter. 11, 7th Ed.) Mason, OH: Thomson.