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  • Essay / Business Regulation Simulation: Alumina Inc. - 1026

    Business Regulation Simulation: Alumina Inc.Alumina is a $4 billion aluminum manufacturer based in the United States. Although the company operates in 8 different countries, 70% of Alumina's sales come from the US market. Five years ago, during a regular compliance check, Alumina was found to be in violation of environmental discharge standards due to high levels of PAHs (polycyclic aromatic hydrocarbons). Following this discovery, the EPA ordered a cleanup and Alumina was found to be compliant in subsequent inspections. Although this is Alumina's first violation in history, the company recently found itself in the local news due to allegations from a city resident that Alumina was responsible for the environment in his daughter's leukemia. As with many corporate ethical dilemmas, Alumina's leaders unexpectedly found themselves walking the difficult line between adhering to their personal values ​​and helping their company survive. When Kelly Bates, a local resident, claimed that Alumina was responsible for her ten-year-old daughter's leukemia, the company's employees were faced not only with questions of right and wrong, but also between good and good. From an ends-oriented perspective, employees understood that Alumina wanted to reach a resolution that will bring the greatest good to the company and its investors. For this reason, Alumina's management team chose to limit the disclosure of its environmental compliance records rather than disclose all available information when the plaintiff requested a Freedom of Information Act. Under different circumstances, Alumina employees could have reacted differently and allowed full disclosure so that the complainant could demonstrate the merit of her allegations or discover the absence of them. After all, while a company's reputation is an essential part of its success, it is less important than humanity and life itself. However, given the circumstances, Alumina's reputation was top of mind for its employees, so protecting Alumina from negative press became the priority. As is often the case, circumstances and context have a determining influence on how individuals will respond to ethical issues. If in fact Alumina was responsible for Ms. Bates's daughters' leukemia, then the company and its employees shared an ethical obligation to share their information in the spirit of true disclosure. It would not be ethical for Alumina to defend and protect itself from the consequences resulting from known environmental violations. On the other hand, it would also be ethically wrong for Ms. Bates to seek compensatory and punitive damages from Alumina if the company had nothing to do with her daughter's leukemia..