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Running head: ALUMINA RISK ANALYSIS

Alumina Risk Analysis
Sabrina Waters
University of Phoenix
MBA 560

Introduction

Alumina, Inc. is a $4 billion dollar industry that focuses on aluminum. Alumina, Inc. has withheld a clean image in the past and works hard to retain this image. An incident occurred five years ago where oil was spilled into Lake Dira in which Kelly Bates claims that her daughter now suffers from leukemia due to the spill into the water. Environmental Protection Agency (EPA) standards were developed in 1970 and were designed to protect human health and the environment. The EPA regulation allows the community to be involved by voluntarily discover, disclose, correct, and prevent violations of federal environments. Therefore, Kelly Bates has taken action to prove that Alumina is responsible for her daughter’s illness.
Key facts, regulations, and legal issues The key facts identified in the simulation indicate that Alumina, Inc. has been the blame for Kelly Bates daughter illness. However, the study performed by Alumina, Inc. found that Alumina is not outside of regulations and is not responsible. Kelly assumed the right to acquire information regarding Alumina negligence using the Freedom of the Press law. However, the Freedom of the Press is not allowed to print anything that he or she wants without liability, which can cause civil or criminal damages upon the press. Alumina also has the right to only provide information to Kelly that relates to the case, and hold back any information deemed confidential under the Freedom of Information Act (FOIA). The Environmental Protection Agency (EPA) was established in 1970 at the federal level and is used to control the pollution of the air, water, solid waste and toxic substance disposal, pesticide regulation, and radiation. (Reed, 2005) In the simulation water pollution was the accused problem stated by Kelly Bates, which caused her daughter leukemia. Under the EPA law water pollution would be the factor to protect. The Clean Water Act was developed was set to eliminate water pollution. This law uses strict deadlines and enforcement that must be followed and the penalties are high for oil spills. This law is what Kelly Bates acted upon to file the claim against Alumina, Inc.
Stakeholders and values Alumina, Inc. has four major stakeholders involved, which includes Roger Lloyd who is the chairman; Chris Blake who is the Chief Operating Officer (COO); Diane Richards who is the head of Public Relations; and Arthur Todd who is the legal counsel for Alumina, Inc. Roger Lloyd is a firm business person whom deals strictly with the law for the organization. Chris Blake is second in command and falls under Roger and attempts to convince everyone that he is right. Diane Richards has to work out the best strategy possible in public relations. She won the trust from the board when she went against the angry investors when Alumina made major changes to Level – B plants last year, which she uses to her advantage. Arthur Todd handles litigation and regulatory proceedings that involves the release of solids and hazardous waste, natural resource damages, management of solid and hazardous waste, and water. Alumina, Inc. values the image that is held in the public view and would like to keep the clean image regardless of the issue that is being brought forward by Kelly Bates. The majority of the stakeholders believe that communicating with Kelly will help retain the image that Alumina has, while others would like to move forward and take Kelly to court to prove that the spill did is not related to her daughter’s illness of leukemia. Kelly has threatened to take the issue to the media and request information from Alumina regarding the regulations. However, Roger Lloyd refuses to provide Kelly with the information requested and would like to take her to court, while the others are willing to only provide Kelly with the information necessary to satisfy her request. According to the Freedom of Information Act (FOIA) Kelly has the right to request this information, while Alumina has the right to withhold information that does not pertain the incident that Kelly Bates is claiming caused her daughter’s illness. This strategic move will not only satisfy the stakeholders, but also aligns with the values of Alumina, Inc., which is to retain the clean image.
Summary of basic issues In summarizing the basic issues for the counsel according to the Internal Counsel script to be guilty a person first must be proven guilty. In the simulation Kelly Bates has stated Alumina was responsible for her daughter’s illness. However, Kelly has no specific evidence to prove that Alumina is responsible. Alumina investigated the allegations by rendering a study that will provide whether or not any violations have occurred according to Kelly Bates. No evidence was found whereby proving Alumina responsibility of Kelly Bates daughter’s illness and that Alumina was outside of regulations according to the Environmental Protection Agency (EPA). This is the first step in establishing evidence according to the allegations made against Alumina, Inc. The Freedom of Information Act (FOIA) provides access to government records provided where there are no exemptions and exclusions. In releasing any information the affected organizations must first be contacted. Any information that is marked confidential is allowed to be withheld from the party who is requesting the information. A company has deciding factors whether the company should defend itself in court or seek alternative methods to resolving a dispute. These factors include financial costs, time, and publicity and confidentiality.

Analysis of Matrix Kelly Bates has the right to file suit against Alumina, Inc. because she believes her daughter has developed leukemia due to the spill of oil into the lake. Kelly believes that Alumina has been negligent and believes that the company should be liable. Alumina does not have too many options to resolve this matter. Alumina will either proceed with court filings and procedures to rectify the matter, or Alumina can proceed with an Alternative Dispute Resolution (ADR) to clear the matter without the public being involved and to retain the clean image that Alumina currently has. The court proceeding will only allow the public to be notified of the incident and cause Alumina to lose the clean image. This process can also be very costly, which may cause the job performance of the company to decrease. Alumina can provide key evidence that will prove that the company is not responsible for Kelly Bates daughter’s illness, and prove that the company is not outside of regulations according to the investigation that has been performed. The other alternative solution for Alumina, Inc. will be to resort to an Alternative Dispute Resolution where the public will not be involved and is inexpensive. The only other problem with the ADR is that time may run out before coming to a complete resolution, which may cost Alumina additional monies for fees and court cost. The essential way to handle this matter will be to attempt to expedite the process immediately and communicating with Kelly to resolve the issue in a way that will satisfy both parties. The importance of ethics and morality makes the decision difficult since Roger Lloyd is against the alternative dispute resolution, but with keeping the clean image that Alumina has the ADR is the perfect solution that will keep the issue out of the public view while satisfying Kelly.

Conclusion In conclusion, Alumina can defeat the allegations made by Kelly Bates by providing an investigation that will eliminate the accusations and help retain the clean image that Alumina currently upholds in the public view. A court procedure would be very costly for Alumina and provide the public with information that perhaps Alumina would not prefer. However, an ADR would be the best solution, because of it being inexpensive and can be kept out of the public’s view.

Table 1
|Risk Analysis Matrix |
|Alternative Solution |Risks and Probability |Consequence and Severity |Mitigation Techniques and |
| | | |Strategies |
|Proceed to court with study |Expensive |The cost bears a burden on the |Provide key findings stating that |
|findings |Time consuming |organization causing performance|Alumina is within regulations |
| |Will give Kelly Bates more issues|to decrease |Provide evidence indicating that |
| |to bring upon Alumina | |Alumina is not responsible for |
| | | |daughter’s leukemia |
|Result to an Alternative |Inexpensive |Wasted time, money, and effort |Attempt to expedite the process |
|Dispute Resolution (ADR) |Less time used |May cost more by being forced to|immediately in coming to a |
| |Kelly may not want to settle |settle in court |resolution |
| |outside court | |Set the offer high, but not higher |
| |Time may run out due to | |than what the cost would be to |
| |investigation | |settle in court |

References
Reed, O. L., Shedd, P. J., Morehead, J. W., and Corley, R. N. (2004). The legal and regulatory environment of business. (13th ed.). New York, NY: The McGraw-Hill Companies, Inc.

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