...Running Head: Recognizing and Minimizing Tort and Regulatory Risk Plan Recognizing and Minimizing Tort and Regulatory Risk Plan LAW/531 September 29, 2010 Introduction Alumina, Inc. makes aluminum products and has revenues of over $4 Billion Dollars. The company is based in the United States (US) with operations in eight other countries around the world. The US accounts for 70% of Alumina’s market share. Alumina has business interests in automotive components and manufacture packaging materials, bauxite mining, and Alumina refining and smelting. The company falls under the jurisdiction of Region 6 of the Environmental Protection Agency (EPA) (University of Phoenix, 2010). Recognizing and Minimizing Tort and Regulatory Risk Plan Companies and organizations such as Alumina, Inc. have corporate governances that require them to operate their businesses under government rules, regulations and boundaries. The rules and regulations have been authorized and enacted by major legislation, which are enacted by Congress and enforceable by laws. Minimizing the risk of tort liability is the goal of every organization and company. Five years ago Alumina was in violation of environmental discharge norms in a routine EPA compliance evaluation inspection. The EPA ordered a cleaned up and Alumina complied right away. Now, the case of negligence starts. The government places a high level the importance on the preservation of the environment and enforces environmental regulations...
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...(University of Phoenix). After the challenge that Kelly Bates posed, Roger Lloyd, the chairman of the organization (University of Phoenix), realized that the company needed to come up with a plan to manage torts and regulatory risks. Common business torts include intentional torts, unintentional torts (negligence) and strict liability. Intentional torts refer to actions that are taken with the intent to cause injury to the plaintiff. Unintentional torts, or negligence, refer to actions that are not taken to directly harm someone but where harm is a foreseeable consequence. The third type of tort is strict liability which means liability without any fault (Cheeseman, 2010, p. 75). It is extremely important to manage tort and regulatory risks (Cooper, 2008, p. 80). When it comes to Alumina Inc. there has only been a case for possible negligence, as outlined in the business simulation. Regulatory risks are any risks from not following rules and regulations set in place by administrative or regulatory agencies. The regulatory agency that directly affects Alumina Inc. is the Environmental Protection Agency, when Alumina Inc. contaminated the water they violated the Clean Water Act and Environmental Protection Agency regulations (Cheeseman, 2010, p. 707). A tort risk specific to Alumina Inc. revolves around the possibility of disease from contaminated water. There is a fear for the health of people in the future and a fear of damage to the environment and the ecological impact...
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...Recognizing and Minimizing Tort and Regulatory Risk Plan In this day and age and especially in this economy, the laws and regulations carry severe penalties, fines, damages and in some cases jail time. Therefore companies like Alumnia should be aware of current compliance of regulations, that way they can adjust their business practices accordingly and minimize exposure to tort liabilities as a result of not complying with regulations. Five years ago the EPA conducted a routine compliance evaluation inspection of Alumnia; during the inspection Alumnia was found to be in violation because their PAHs were above the prescribed limit, although this violation was corrected (UOP, Business Simulation, 2010). Although Alumnia had maintained a clean record since, they should make it a policy to review all environmental regulations that pertain to the discharges and the chemical contents and the effects on the environment to avoid future violations. In addition to the violation five years ago, the Erehwon Reporter along with Kelly Bates, a local resident were making claims that Alumnia continuously contaminated Lake Dira, which if proven would be negligence on the part of Alumnia, which would be a violation of the Water Quality Act; in addition they are pursuing a copy of the inspection report by the EPA via the Freedom of Information Act. Even though since that inspection Alumnia took corrective actions and has had a clean record since. In an effort to avoid bad press and possible...
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...What can human resources (HR) do to ensure employees are competitive in the 21st century business world? How has HR’s role change over the past few years? Nowadays the direction of human resources goes beyond the staff direction; the human factor has a great weight in the formulation and implementation of strategies, given its capacity to help to strengthen the competitiveness and development of enterprises in a turbulent environment. The human factor is considered a decisive factor in the development of the companies, employee motivation, efficiency and productivity. To ensure the employees competitiveness, the human resources management must understand and adapt to the changing workplace of the 21st century companies. The construction of alliances between companies and the use of technology are also the key to progress. The vision of human resources should be directed towards network style hierarchies instead of the traditional pyramid. The integration of customers, suppliers, collaborators and employees provides companies the advantage of working direct and quickly with what consumers really wants and need. Not only human resources must attract and retain the right and talented people. It is necessary to create and maintain the best working culture that delivers quality, safety and motivation to employees to remain faithful and productive. It is necessary for organizations to create organizational cultures with reward systems that keep the best people committed...
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...Political, legal, and regulatory risks The Rules on the Regulation of Franchise (Italian Senate) in articles 2-3 under the Scope of Law demands that any third party business relations must be in writing or will be considered null in void. A distinct plan of organization will be key in handling all written documentation as well as third party witnessing. The Rules on the Regulation of Franchise also states that all documentation must by law, must coincide with the original agreement made by franchisor and cannot be changed without further consent. Any misleading or false information can be due to lack of accurate translation and is punishable by annulment of agreement. To avoid this risk any form of communication, as well as product journalism and financial documents, should be translated into Italian by a professional, and preferably followed with an e-mail or telephone call. Also, there are business schools that can offer placements to aid with the subject of translation. Furthermore, using the Italian language in documents, such as invoices, will aid in the clarification of all intentions and eliminate confusion or misunderstanding. Market Risks (four Ps) PRICE The average cost of a cup of coffee in Italy (4.92 EU or $7 USD) is doubled the price of an average sized breakfast (2.35 EU or $3 USD). The subject of price must be paid close attention as to not be deemed as “overpriced” in a country filled with locals who know the value of a good cup of coffee. The price must...
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...Political, legal, and regulatory risks The Rules on the Regulation of Franchise (Italian Senate) in articles 2-3 under the Scope of Law demands that any third party business relations must be in writing or will be considered null in void. A distinct plan of organization will be key in handling all written documentation as well as third party witnessing. The Rules on the Regulation of Franchise also states that all documentation must by law, must coincide with the original agreement made by franchisor and cannot be changed without further consent. Any misleading or false information can be due to lack of accurate translation and is punishable by annulment of agreement. To avoid this risk any form of communication, as well as product journalism and financial documents, should be translated into Italian by a professional, and preferably followed with an e-mail or telephone call. Also, there are business schools that can offer placements to aid with the subject of translation. Furthermore, using the Italian language in documents, such as invoices, will aid in the clarification of all intentions and eliminate confusion or misunderstanding. Market Risks (four Ps) PRICE The average cost of a cup of coffee in Italy (4.92 EU or $7 USD) is doubled the price of an average sized breakfast (2.35 EU or $3 USD). The subject of price must be paid close attention as to not be deemed as “overpriced” in a country filled with locals who know the value of a good cup of coffee. The price must...
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...There are many risks for a company in the legal realm and it is important for them to minimize their tort and regulatory risks. A company should have a risk plan in place that can help them succeed. This plan can be a continuously changing plan depending on needed improvements on the plan. A risk plan can be developed easily when you look at the Alumina Inc. case as an example. A company such as Alumina can manage their risks through three basic measures which are preventative, detective, and corrective. Preventative measures are the easiest for a company to control and change. These can include anything from the company’s internal laws to the education of these laws. Freedom of speech is a civil right given to people and in cases such as Alumina vs. Kelly Bates; preventative measures could have helped controlled the case. Even though a citizen’s speech may be considered as disparagement, damage to the company can still occur. A major risk for a company in a situation like this is if they were to harm their own customers and alienate their business. This can really damage their reputation and that is why the CEO Roger Lloyd of Alumina was so concerned. They have a Duty of Care that they must ensure that they are protecting these individuals and are not guilty of negligence. A company can have a legal department that is proactively researching potential problems and ensuring their corrective measures are in place. This can help solve a problem quickly with minimal damage...
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...Recognizing and Minimizing Tort and Regulatory Risk A tort is an act by a business that results in injury to a person, property, or good name. In most cases the person injured is entitled to compensation (Jennings, 2006). It is in the businesses best interest to be educated on local, state, and federal laws and regulations to reduce regulation and tort liability. A business must protect its assets, earnings, and good name. A company must have a plan in place to reduce and eliminate fines, penalties, and tort liability. The business must have a preventive plan in place to address regulation compliance and tort liability (Dore, 2008). Preventative, detective, and corrective measures The preventive plan should include measures to know and understand regulations and liability torts the business could encounter. Furthermore, the business plan should include steps that will be taken in the event of a government regulation violation or a tort liability. The plan should first identify the possible torts for non-compliance to government laws and regulations. The following are some of the issues the preventive plan should include: The business must identify health risks to employees, consumer, and the general public. The business must take solid steps to ensure the product, or services rendered is not harmful to others. An employee of the business needs to be assigned and responsible to understand the laws and regulations that affect all facets of the business. This person needs...
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...Recognizing and Minimizing Tort and Regulatory Risk Plan A business, whether for or not for profit, in this country, is regulated under guidelines known to us as laws. These laws hold business leaders accountable for conducting business in an ethical manner and protect consumers from negligent practices imposed by a business. An example of these laws is Tort Law, which is a law that provides compensation for tortuous acts to an injured party or party’s property through a civil lawsuit (Cheeseman, 2010). Tort, defined as “a wrong”, is categorized by two components: Negligence Torts and Intentional Torts. The issue of a tort violation is a matter of the plaintiff proving his or her case or the defendant establishing a reasonable doubt that dismantles the plaintiff’s case. By using Alumina, Inc. as a point of reference, this paper will address how regulatory risks are identified and how they can be managed though preventive, detective and corrective measures. It will also concentrate on the torts and risks identified in the simulation and develop a plan that recognizes and minimizes the regulatory risks in this week’s simulation as well as those examined throughout the chapters in this week’s readings. Alumina, Inc., a four billion dollar United States based aluminum maker located along the borders of Lake Dira in Erehwon, is a manufacture of packaging materials, automotive components, bauxite mixing, alumina refining and aluminum smelting. It operates in eight countries...
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...Recognizing and Minimizing Tort and Regulatory Risk Plan Environmental Regulation is perhaps the most stringent area of government’s regulation in business. The government imposes great technology investment demands on the industry for regulatory compliance. One single act of irresponsibility can cost businesses greatly or be forced to close (Business Regulation Simulation, 2009). It is important to identify, manage, and correct torts and regulatory risks for Alumina, Inc. so legal issues do not arise in the future. Alumina, Inc. is a $4 billion dollar USA-based industry leader in Aluminum making. They operated in eight countries around the world. The US accounts for seventy percent of its sales. Their business interests are in: automotive components, manufacturer of packaging materials, and aluminum smelting. Alumina falls under jurisdiction of Region 6 of the EPA. A tort is the French word for a “wrong.” The law provides remedies to persons and businesses that are injured by the tortuous actions of others (Cheesman, 2010). Kelly Bates claims Alumina did not comply with the Environmental Protection Agency (EPA) legal limit of producing PHA. The drinking water in Lake Dira was found to be unsafe, which caused leukemia in her 10 year old daughter. The plaintiff has filed a million dollar personal injury lawsuit against Alumina to recover punitive damages (Business Regulation Simulation, 2009). Two of the possible tort violations in this simulation...
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...Recognizing and Minimizing Tort and Regulatory Risk Plan Law 531 Charles Cook January 24, 2011 Recognizing and Minimizing Tort and Regulatory Risk Plan For organizations to avoid detrimental situations that can create excessive loss for the business, it is imperative for them to Recognize and minimize the risks associated with torts. According to Henery Cheeseman, 2010, “Tort law imposes a duty on persons and business agents not to intentionally or negligently injure others in society”(Cheeseman, 2010). Developing a clear plan that reduces and eliminates any fines, penalties and tort liabilities will help the success of a business. Cheeseman (2010) states “Tort law imposes a duty on persons and business agents not to intentionally or negligently injure others in society” (Cheeseman. 2010). Plan elements Knowing the four elements of defending against negligence is fundamental to developing a preventative plan against negative effects of a tort. With foresight, a business can plan against the occurrence by superseding or intervening the event. Having knowledgeable team members who can determine whether or not the company is actually responsible for an event is essential. Assuming the risk of potential negligence can help to diminish the possibility of tort. Keeping a business team aware of what risks are possible and can help to avoid situations where a company knowingly enters into risky practices will keep businesses safe from liability. Finally, both contributory...
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...Recognizing and Minimizing Tort and Regulatory Risk Plan Damesha N. Horace Law 531/Business Law July 19, 2010 Recognizing and Minimizing Tort and Regulatory Risk Plan A tort is a civil injury designed to provide compensation for injury to a legally protected, tangible or intangible, interest (West’s Business Law, 2004). To reduce litigation and tort liability, businesses should ensure they are educated in local, state, and federal laws, and regulations. To protect its reputation and assets, it is critical that businesses have a plan in place to address tort and regulatory risks. Preventative, Detective, and Corrective Measures A preventative plan should include procedures that make businesses aware of regulations and liability torts they could encounter. The company business plan should also include actions to take in the event of a government regulation violation or tort liability. The plan should identify possible torts for non-compliance to government laws and regulations. Other issues that should be in the plan include health risks to employees, consumers, and the public. Companies should delegate a team of individuals to educate employees. This team should fully understand laws and regulations and also keep management abreast of new issues as they develop in the industry. Common Torts and Risks Negligence, defamation/slander/libel, invasion of privacy, Freedom of Information Act (FOIA), and strict liability are tort liabilities uncovered...
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...Regulatory Risk Management Analysis: IBM Jane Doe BLAW 531 January 12, 2012 John Smith Regulatory Risk Management Analysis: IBM Global warming is a term that we have become very familiar with over the last decades. Gradually, it is disturbing human living conditions and because societies’ lack of environmental protection responsibility, more damage is forecasted to take place. Rising temperatures are expected to raise the sea level, change climate conditions, alter desserts and forests, water supplies, crop yields, harm many ecosystems of animals and threat human life. Throughout the world, there is naturally caused pollution, but the majority of the world’s pollution is caused by humanity. In the United States, as well as many other industrialized countries, the greatest source of contamination is the industrial community. At the peak of the Industrial Revolution, industries efforts were focused on profitability and how much product they push out of the assembly lines. Environmental protection was not a priority in comparison with maintaining high levels of production. Protecting the environment is a costly and a real matter to any business, but it is the ideal outcome to find that balance where companies protect the environment while still remained profitable. In the United States there is no better example of environmental conscience and profitable as International Business Machines (IBM). IBM leads the United States as the ‘greenest’ company and second...
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...World Dialogue on Regulation for Network Economies Regulation and Investment: Case study of Bangladesh Harsha de Silva[1] and Abu Saeed Khan[2] August 2004 Abstract The paper considers the available evidence in determining a relationship, if any, in the Telecom Regulatory Environment [TRE] of Bangladesh and investments in to its telecommunications industry over the last decade. TRE is segmented in to market entry, access to scarce resources, interconnection, tariff regulation and regulation of anti-competitive practices while investments are all non-divestiture foreign and domestic private and public investment. The TRE in Bangladesh is found to be wanting in all defined aspects. Interconnection is the worst of the five components, where a mobile only parallel network is being created due to regulatory ineffectiveness where almost ninety percent of mobile users do not have access to a fixed phone. Investments in to the fixed sector in Bangladesh dominated by the state owned virtual monopoly have been sorely inadequate and continue to be dictated by the funds availability [or lack thereof] of the Government. The mobile sector on the other hand has seen some amount of investments flowing in led by the widely acclaimed GrameenPhone. However, once standardized to compare across the region, it is found, even though using imperfect data to compare, that the reason for this flow could...
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...3 The Regulatory System in the United Kingdom This chapter examines the regulatory system currently in place in the United Kingdom. It provides an overview of the structure and objectives of regulation, the role of the regulator and the techniques that are employed in regulating firms and individuals who engage in investment business. 3.1 Background: the financial crisis and regulatory reform 3.1.1 Responding to the financial crisis In the UK, as elsewhere, the onset of the financial crisis exposed deficiencies in financial regulation and led to calls for regulatory reform. The Treasury Select Committee1 led the way, with its hearings into the collapse of Northern Rock exposing serious deficiencies in supervision and risk management.2 In October 2008, the Chancellor of the Exchequer asked Lord Turner, the newly appointed chairman of the FSA, to review the causes of the crisis and to make recommendations on the changes in regulation and supervisory approach needed to create a more robust banking system for the future. The Turner Review3, published in March 2009, made a 1 The Treasury Select Committee is a Parliamentary (House of Commons) committee that scrutinises the activity of the regulatory authorities in the UK. 2 See House of Commons Treasury Committee, The Run on the Rock HC 56-1 (Fifth Report of Session 2007-08). 3 FSA, ‘The Turner Review, A regulatory response to the global banking crisis’ (March 2009) at http://www.fsa.gov.uk/Pages/Library/Corporate/turner/index...
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