Topic > Business Regulation Simulation - 1387

Business Regulation SimulationIntroductionAccording to the BNET business dictionary, regulation is "the use of laws or rules stipulated by a government or regulatory body, such as the Securities and Exchange Commission, to provide orderly procedures and to protect consumers and investors.” The Environmental Protection Agency (EPA) also establishes the standards that must be enforced to protect the company and the community in which it operates. Since Alumina employees adhere to the regulations and standards set by the EPA, the risks to them are minimal in the event of a problem. However, the unfortunate experience of Alumina's water pollution five years ago earned it a violation of EPA rules. Now Alumina is being targeted as the cause of a young girl's leukemia case. Despite the accident five years ago, Alumina executives are confident they will comply with all the rules now. The negative publicity caused by the allegations could be detrimental to Alumina's future. You need to make cautious decisions whenever you initiate a case like this. Legal counsel should be consulted in responding to such allegations and decisions should be made that maintain the best interests of the company while preserving community relations. Key Facts, Regulations, and Legal Issues The EPA's mission is to establish and enforce standards that must be followed to maintain a clean environment. They established regulations to limit air and water pollution. Five years ago, an alumina spill occurred in a local waterway. This violation of EPA regulations and its consequences earned Alumina unwanted negative publicity that proved embarrassing. While Alumina is moving on from that incident, allegations of inappropriate emissions that were the cause of a newly diagnosed case of leukemia threaten to ruin their reputation once again. The legal issues associated with this case include whether or not they comply with the regulations and whether or not they should disclose the requested business documents in part or in their entirety. According to the simulation, “citizens can request information from the records of government agencies and their private businesses, under certain conditions, to bring controversial issues to their proper conclusion.” (Business Regulatory Simulation) In the simulation, the archives were requested to find a connection between any violations that Alumina may have committed with the development of leukemia.