UofP - MBA560 - Individual Assignment - Week Three - 06-24-06

UofP - MBA560 - Individual Assignment - Week Three - 06-24-06

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Problem Solution 1 Problem Solution: Alumina Inc. Robert Sikes MBA560 Ray November June 24, 2006
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Problem Solution 2 Problem Solution: Alumina Inc. This paper will illustrate the overall situation with Alumina Inc. identifying challenges and opportunities, stakeholder perspectives and ethical dilemmas, problem statement, and end- state goals. It will further validate and analyze alternative and optimal solutions, risk assessment and mitigation, implementation plan, and provide a gap/estimated costs analysis. Situation Background Alumina Inc. (Alumina)—a $4 billion aluminum maker—operates in eight countries around the world, with the USA accounting for 70% of its sales. Alumina has business interests in automotive components and manufacture of packing materials, bauxite mining, alumina refining, and aluminum smelting. Alumina falls under the jurisdiction of EPA Region 6 (University, 2006). The current executive team consists of Richard Lloyd, COB; Chris Blake, COO; Diane Richards, Head of Public Relations; and Arthur Todd, Legal Counsel. Alumina was reported to be in violation of environmental discharge norms in a routine Environmental Protection Agency (EPA) compliance evaluation inspection five years ago. The polynuclear aromatic hydrocarbon (PAH) concentration in test samples 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.” Excluding this one incident, Alumina Inc. has enjoyed a good overall environmental regulation compliance record. However, Kelly Bates, a local resident, threatens to tarnish Alumina’s good compliance record with a claim that her daughter acquired leukemia due to carcinogens in a nearby lake produced by Alumina (University, 2006).
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Problem Solution 3 Issue Identification Alumina has been confronted with several challenges that could impair positioning the company for growth sustainability including preventing extensive losses (both environmental and commercial), preserving public image, and abiding by pertinent environmental statutes. Furthermore, Alumina is governed by statutes at both the federal and state levels of government who can impose a variety of sanctions for violating the statutes or regulations of administrative agencies adopted to accomplish statutory purposes (Reed, 2005). These sanctions are often similar to those imposed for criminal conduct, breach of contract, or tortious conduct and can include—but not limited to—a fine or recompense of damages to injured parties. Business ethics is another critical issue that influences Alumina’s operations, environmental drivers, and stakeholders. However, business ethics as a corporate governance tool, an ethics decision model, mediation versus arbitration, and capacity building strategies can be the first-steps toward Alumina identifying opportunities and potential solutions. Opportunity Identification
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UofP - MBA560 - Individual Assignment - Week Three - 06-24-06

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