Alumina, Inc. is a USA-based aluminum maker that operates in eight countries around the world. The company receives 70% of its sales in the United States. Alumina's business interests include automotive components and manufacturing packaging materials, bauxite mining, alumina refining, and alumina smelting. Improper use of these materials can have an adverse affect on an environment and the people in the surrounding areas. Statutory and common laws are in place to govern businesses and how organizations do business. Corporate governance relates to the rules, regulations, and laws that govern businesses and organizations. Alumina, Inc. is regulated by the Environmental Protection Agency (EPA) of the United States.
The EPA is a federal agency in charge of protecting human health and safeguarding the natural environment. The most stringent area of the government's regulation of businesses is environmental regulation. The government imposes immense technology investment demands on the industry for regulatory compliance (U.S. Environmental Protection Agency, 2007). The penalty for even one single act of recklessness can be very high and even result in the collapse of a business. In order for a company to be successful and remain in business, being responsible and well-respected is important.
Facts, regulations, and legal issues
In order to determine what issues need to be addressed and the best direction to take to resolve the issue, stating the facts first is important. Five years ago, Alumina violated environmental discharge norms during a routine EPA compliance evaluation. The violation was due to a PAH concentration test in which samples were found to be above the prescribed limit. Alumina quickly complied with the clean up that was ordered by the EPA. When ...