Organizations are sometimes subjected to risks associated with negligence either internally or environmentally. Environmental negligence can have a substantial impact on the communities around them. Government regulations have been put into place to protect the environment, the community, and the organization. Many organizations are embracing these regulations and have become responsible and respected in business in order to stay in business. An examination of the basic concepts of regulatory law, the impact of the regulatory environment on industry and organization risks, the legal decision in the context of the organization’s values and ethics and key facts, regulations, and other legal issues will be discussed on the impact these have on organizations. An examination of any ethical dilemmas and conflicts among stakeholders will also be discussed. Key Facts
The key facts from the scenario are that Alumina is an aluminum maker and has business interests in automotive components and manufacture of packaging materials, bauxite mining, alumina refining, and aluminum smelting. Alumina is under the jurisdiction of region 6 of the Environmental Protection Agency (EPA). Alumina had an environmental discharge that violated the EPA compliance five years ago. The PAH concentration in test samples was above the prescribed limit. Alumina fixed the problem and has been in compliance for over five years. This is the only incident on record and since then Alumina has had a good overall environmental record. Kathy Bates reports that daughter contracted leukemia from this environmental issue that Alumina has done and accused Alumina of repeatedly contaminating the waters of Lake Dira with carcinogenic effluents (University of Phoenix, 2002). Basic concepts of regulatory law
Environmental regulation remains the single most expensive area of government’s regulation of the business community. Environmental and pollution-control laws govern regulation on three levels such as government’s regulation of itself, government’s regulation of business and suits by private individuals (Reed, et al., 2004, p. 507). The federal government has enacted a series of laws regulating the impact of private enterprise on the environment. More and more companies are hiring environmental managers to deal with environmental compliance issues. Congress may fine-tune environmental acts, but the national commitment to a cleaner environment is here to stay (p. 512). The Environmental Protection Agency (EPA) was founded in 1970 as a response to concerns about the environment (p. 513). Regulations
Alumina needs to see if the environmental impact is still in compliance with the EPA. They currently use the best technology available for pollutant cleanup in compliance with the Clean Water Act (University of Phoenix, 2002). The principal federal law regulating water pollution is the Clean Water Act, passed by Congress in 1972. The Clean Water Act is administered primarily by the states in accordance with EPA standards, however, the federal government, through the EPA, can step in and enforce the law. The Clean Water Act applies to all navigable waterways, intrastate as well as interstate (Reed, et al., 2004, p. 519). The law sets strict deadlines and strong enforcement provisions, which must be followed by industry, municipalities, and other water polluters. Industries must adopt a two-step sequence for cleanup of industrial wastes discharged into rivers and streams. The first step requires polluters to install best practicable technology (BPT) and the second process demands installation of best available technology (BAT) (Reed, et al., 2004, p. 521). Alumina did a self site study and reported that the polycyclic aromatic hydrocarbons or PAH levels are lower than the prescribed five milligrams per liter for all hydrocarbons. Their current position is that the possible contamination is cause by run off from highway traffic. The...