Business regulation simulation
The Alumina values according to the simulation are that Alumina enjoys a good compliance record on the environmental regulation. The other Alumina value is that t tries to manage crises out of any allegation that may arise on environmental issues. The other value of Alumina is that they strive to protect their image. Aluminas’ other value is that they strive to maximize its profit both in the environmental and commercial fronts. (Graham, 2003).
The stake holders of Alumina are the people who keep the company running. There are four major stake holders in Alumina Inc. (Graham, 2003). The chairman of Alumina Inc Roger Lloyd is the first stake holder. He is strong willed, hot tempered and autocratic. Chris Blake is the other stake holder of Alumina Inc. He is the chief operating officer. He is a convincing person who can be very calculative and always think he is right.
The third stake holder in Alumina Inc is Diane Richards. (Graham, 2003). She is the head of public relations. She had the responsibility of working out the public relation strategies of any given situation. The board of directors has complete trust on her. Alumina Inc fourth stake holder is Arthur Todd who is
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There are various conflicts among the stake holders which arise as result of their different personalities. The chairman of Alumina Inc is a 53 year old. The fact that Roger Lloyd is hot tempered creates conflict because he can not get along well with the other stake holder. (Goliath, 2008). His word is law which means that he is no accommodative of other people which can make it very hard for the company especially when there is a situation where decisions need to be made. (Goliath, 2008).
Conflicts in Alumina Inc also arise because of the characters of Chris Blake who is the chief operating officer. Blake is very convincing that whatever he does is right. This can create conflict because it is to convince him on any matter as long as he considers himself right. Blake is also not considerate about other people and this can be a source of conflict because stakeholders are supposed work as a team. (Goliath, 2008).
Conflict in Alumina Inc can arise due to the personality of the head of public relations. Ms is completely trusted by the board of director especially because of the way she handled the angry investors the previous year when they launched a new technology. Being trusted by the board of directors makes her take advantage of the other people and this can be very bad for the stake holder’s unity. (Goliath, 2008).
The company’s legal counsel can also be a source of conflict in Alumina Inc. Arthur Todd is dedicated to his work and is a hard working counsel but the characters of the other stake holders puts him at a disadvantage because all decisions made in the company must involve all the stake holders. This is a disadvantage because as much as Todd is experienced he cannot fully perform without the cooperation of the other stake holders. (Wallace, 1997).
The conflict that arises as a result of the stakeholders different personalities creates an ethical dilemma. This is because the stake holders are supposed to work together for the success of the company and when other feels they have the upper hand in making decision then the unity of the stake holders is threatened. (Wallace, 1997). The stake holders are supposed to sacrifice their personal interests for the interest of the company and this does not seem to happen in Alumina Inc. This is why ethical dilemma is created especially if it requires that all the stake holders make a unanimous decision. (Wallace, 1997).
A case by Kelly Bates was brought against Alumina Inca. Base claims that Alumina Inca had contaminated the waters of Lake Dira with carcinogenic effluents. She alleged that the consumption of the contaminated water caused her ten year old daughter to catch leukemia. (Wallace, 1997). In response to the allegations by Kelly Bates, Arthur Todd, the companies’ legal counsel maintained the systems of the organization were very effective. He further argued that the rate at which the organization was emitting fumes was way too low behind the alleged levels. According to him, the company was using the latest technology in pollution control and was therefore complying with the Clean Water Act. He thought that it would be wiser if the company issued a press release immediately. (Wallace, 1997).
It was extremely important for the company to guard against such attempts to portray the company in a negative way. This was very important because five years earlier, the company had faced similar allegations which had tarnished the image of the organization. Therefore when Bates brought this case against the company, the managers had to find a way of stopping any such attempts of tarnishing the image of the company. (Wallace, 1997).
According to the chairman of Alumina Inc, roger Lloyd, the accusations brought against the company were baseless. In as much as he concurred with Arthur Todds, the legal counsel, that there was need for a press release, he recommended that there was need to carry out an independent site study to discover any new violations and then disclose the findings. The aim of this study was to take advantage of the companies own policing incentives. (Wallace, 1997).
The head of public relation of the company however was for a different opinion. According to Diane Richards, the head of public relations the only way out of this allegation was to carry out a private investigation on Bates. (Wallace, 1997). However in carrying out this private investigation, there was need to be cautious son to avoid the company being accused of invasion of Bates privacy. She further suggested that Alumina Inc could carry out an independent audit which however would be expensive. She therefore was of the opinion that the company speaks to Bates dire4cdtly as well as releasing a press statement to curb this impending defamation of the name of the company. (Wallace, 1997).
In creating a risk analysis matrix for Alumina Inc Company the stake holders must follow the recommendations that have been suggested by the three stakeholders in order for the organization to succeed. In this analysis there is need to either agree strong, agree, disagree or disagree strongly with the recommendations of either of the managers. The bottom line however is that the company must take care of the environment to avoid pollution. (Goliath, 2008).
The stake holders need to work as a team in order for them to come up with the strategies that will develop the company in future. The stake holders of the Alumina Inc must also consider the needs of the surrounding environments. This is specifically important to avoid scenarios like this case where, one of the local residences by the name Kelly Bates sued the company of polluting the water there by affecting the residence’s health. (Goliath, 2008).
The stake holders had tried to resolve the issue of polluting the water where by Diane Richards suggests that they should do a private investigation. The other two stake holders, Arthur Todd who was the legal counsel as well Roger Lloyds who was the chairman were not in agreement with Kelly Bates accusations. (Goliath, 2008).The stake holders of the Alumina Inc Company should make the policies that will protect any accidents similar to that which occurred before. This when done will provide concrete measures of preventing any such related risk from occurring in future. The essence of risk management is to provide prior precautionary measures that avoid or minimize the effects of an accident should an accident occur. (Goliath, 2008).
Therefore in creating a risk analysis matrix based on alternatives that are not provide in the simulation, the firs measure that Alumina Inc needs to do is for the stake holders of the Alumina Inc should comply with the environmental regulations. (Goliath, 2008).By always following the stipulated regulatory measures, the organization will always be on the correct side of the law which will enable them avoid the fines and penalties imposed by the government on companies that do not comply with these regulations. (Goliath, 2008).
The organization also needs to take care of its environment. This can be done by ensuring that company wastes are properly disposed. Alumina Inc must take good care of the environment by avoiding any form of air, water or soil pollution. (Wallace, 1997). In this way the company will avoid such embarrassing allegations like the ones brought against it by Bates. Similarly, by taking good care of its surroundings, the company will earn and enjoy goodwill from the local residents. This will earn the company good reputation thus acceptability from the locals. (Wallace, 1997).
The other factor that Alumina Inc needs to incorporate in its risk analysis matrix is team spirit orientation among its leadership. The stakeholders need to work as a team especially the top level managers. (Wallace, 1997). For instance the chief operating officer, the chairman and the legal counsel need to agree on one way forward regarding all important aspects of the running of the organization.
For instance only the head of public relations and the legal counsel seem to agree on the proposal to release a press statement outlining the clean records of the company’s environmental compliance. The mangers therefore should speak with one voice regarding such weighty matters. In this way the firm will avoid many management related conflicts. (Wallace, 1997).
Goliath, (2008). Albex Aluminum Inc, ECNext
Graham, S (2003). “Environmental Effects of Exxon Valdez Spill Still Being Felt”.
Wallace, H (1997). Market Control in the Aluminum Industry, Ayer publishing. ISBN
William K. (1989). The Exxon Valdez Oil Spill. National Response Team.