UofP - MBA560 - Week One - Paper - Research - 06-10-06

UofP - MBA560 - Week One - Paper - Research - 06-10-06 -...

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Environmental regulation is perhaps the most stringent area of government’s regulation of business. The government imposes great technology investment demands on industry for regulatory compliance; however, the penalty for a single act of recklessness can be far greater. So the choice is clear. Be a responsible, respected company, or be forced out of business. The simulation underlines the level of importance government places on the preservation of the environment and its means of enforcing environmental regulation. The simulation also deals with the ethical issues facing business managers involved in resolving potentially damaging lawsuits, and the preferred legal way out of such dilemmas. A $4B aluminum maker, USA-based Alumina Inc. 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 region 6 of the EPA. Players: Richard Lloyd, COB; Chris Blake, COO; Diane Richards, Head of Public Relations; Arthur Todd, Legal Counsel. Alumina was reported to be in violation of environmental discharge norms in a routine EPA compliance evaluation inspection five years ago. The 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.”
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Barring this one incident, Alumina Inc. has enjoyed a good overall environmental regulation compliance record. Kelly Bates, a local resident, however, threatens to mar Alumina’s good compliance record. Her daughter has leukemia, which she blames on the carcinogens in the lake nearby, produced by Alumina Inc. You are a business manager in Alumina Inc. You will lead Alumina’s effort in managing a crisis arising out of allegations of environmental damages. Your objective is to prevent extensive losses, environmental and commercial, preserve Alumina’s public image, and abide by the pertinent environmental statutes. Source: Simulations: Business regulation (already in the paper).
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B. Institutional considerations 10. Development or improvement of institutions. Adequate institutional arrangements can generally be identified as an important precondition to the further promotion of valuation as a tool in biodiversity management and the generation of reliable valuation studies. These arrangements should, inter alia, provide a clear assignment of responsibilities for conducting appraisal processes and auditing for quality control. 11. Biodiversity values and national - income accounts. In the last two decades there have been numerous attempts, at national and international levels, to include environmental externalities into national - income accounts, including through satellite accounts, and to apply measures of environmental depreciation to reflect the environmental losses that occur as a result of economic activities. Such measures can
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This note was uploaded on 06/12/2011 for the course ETHICS mba taught by Professor Wilkes during the Spring '05 term at University of Phoenix.

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UofP - MBA560 - Week One - Paper - Research - 06-10-06 -...

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