Alumina
Located on the edge of Lake Dira in the state of Erehwon, Alumina Inc. is a $4 billion aluminum maker doing business in eight countries around the world with 70% of its sales being done in the United States. Alumina has interests in automotive components as well as the manufacture of packing materials, bauxite mining, alumina refining and aluminum smelting.
Five years ago, in a compliance evaluation inspection, the Environmental Protection Agency determined the PAH concentration in test samples was over the prescribed limit and Alumina was reported to be in violation of environmental discharge norms. Alumina quickly complied with the EPA's clean up order and the violation was reported as "corrected" in a later environmental audit. Other than this single incident, Alumina has experienced a satisfactory environmental compliance record. In spite of this, a local resident, Kelly Bates, has accused Alumina Inc of contaminating Lake Dira with carcinogenic waste matter which she claims has caused her 10-year old daughters leukemia. This allegation threatens to destroy the good public image Alumina Inc has established. While deciding how to handle this situation, the company needs to make ethical decisions on how to prevent extensive environmental and commercial losses, preserve the company's image and stick to the relevant environmental regulations.
Facts
Alumina Inc. has been careful to remain an environmentally conscious company in its practices of waste disposal. Although the company was cited with a violation by the EPA five years ago, they have made efforts to keep their emission rates below the prescribed limits and use the best technology available to ensure their pollutant cleanup is in compliance. Kelly Bates is a single mother with a 10 year-old daughter with leukemia. She is certain that Alumina Inc is the cause for the pollution in Lake Dira and that this is the reason for her daughter's illness. In response to these...
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