Business RegulationEssay Preview: Business RegulationReport this essayThe respective environment in which a company exists can often dictate strategy, rate of growth, and level of risk of which a company is willing to engage. Industries are also required to operate within government constraints, regulations, in order to maintain accountability and social responsibility in an effort to protect the well-being of the population. Companies that operate within the environmental industry are required to adhere to strenuous government regulations administered by various entities. Within the simulation Business Regulation, Alumina, Inc. (AI) is embedded in controversy involving regulatory issues and social responsibility as a result of hazardous waste.
Situational AnalysisAlumina, Inc. is an aluminum company based in the United States (US) with global operations in eight countries. Though AI maintains a global presence, its primary source of revenue is derived from the US. Per the simulation, “70% of sales are US driven” (University of Phoenix simulation, 2008). AI’s business markets include “automotive components and manufacture of packaging materials, bauxite mining, alumina refining, and aluminum smelting” (University of Phoenix simulation, 2008). The respective regulatory agencies and acts involved in the simulation include The Environmental Protection Agency (EPA), The Occupational Safety and Health Administration (OSHA), and The Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA). Per the Oil Pollution Act of 1990:
EPA is required to direct the response in cases where the spill “is of such a size or character as to pose a substantial threat to the public health or welfare.” EPA may also take the lead in managing the response if requested to do so by state or local response officials, or if EPA determines that the responsible party is incapable of responding adequately to the spill. (
The simulation identified an instance AI was held liable for non-compliance with regard to environmental discharge norms of polycyclic aromatic hydrocarbons (PAH). As stated by the EPA within the simulation, “The PAH concentration in test samples was above the prescribed limit” (University of Phoenix simulation, 2008). Per Corley (2005), the EPA “administers federal laws that concern pollution of the air and water, solid waste and toxic substance disposal, pesticide regulation, and radiation” (p. 10). AI was quick to respond to EPA’s recommended compliance and resolve the issue. Most recently AI is dealing with an allegation by a local resident that AI continuously contaminated the water source which resulted in her 10 year-old daughter’s leukemia. AI is now forced to investigate and evaluate the respective allegations and determine the proper course of action in order to manage the interests of the various stakeholders while maintaining social responsibility. AI’s risk mitigation plan will need to address the various legal, business, and financial impacts.
One immediate decision requires AI sufficiently to defend historical allegations by leveraging proprietary business records. However, the level of disclosure will need to be evaluated as AI’s competitive position could be compromised by disclosing excessive proprietary data. AI may insulate itself from full disclosure by leveraging the Freedom of Information Act (FOIA) which states “agencies may withhold information pursuant to nine exemptions and three exclusions contained in the statute” (
Values and StakeholdersAI’s current operating environment is impacted by various stakeholders. Some of the key stakeholders are shareholders, employees, customers, regulatory agencies, competitors, and the community. Within the blend of stakeholders values such as accountability, commitment to society, high-quality standards, and maximum utilization of resources exist.
The highest ranking stakeholder group is the shareholders who invest financial resources into AI. Though many other stakeholders may have more influence in the daily operations within AI, the stakeholders provide AI the financial foundation to maintain its competitive position and invest in innovation and technology in order to address market and industry needs. One of the greatest struggles between the shareholders and every other stakeholder is the struggle to manage financials against accountability. Accountability can come into the form of regulatory compliance, from various environmental agencies, or social responsibility where the global community might require AI to not meet minimal operating requirements but significantly exceed such requirements in order to protect the environment and community. Obviously, AI is in business to generate significant revenue and profit margins. Exceeding regulatory and community expectations would increase costs negatively impact favorable financial margins. The global community might believe that no cost is too significant when it comes to protecting human life and the environment. AI may have a similar position but would also argue that the inability to generate significant profit margins, via increased costs, prevents the company from growth and innovation.
The other competitive force exists in the form of competition. Though every company would like to be recognized as an industry leader, the ability to create a competitive position can negatively impact all players if the respective strategy is not effectively managed. In such a scenario, one competitor may try to cut corners or perform minimal diligence with regard to compliance or legal issues. Repetitive inefficiencies within the industry can create an elevated level of compliance and regulatory issues. Such requirements can create additional costs not only for the offender but for all who operate within the industry. Though some of the more profitable companies may be willing to stretch the limits and incur higher regulatory or compliance enforcement, considered a small cost for
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the industry has been driven to a much higher level of compliance, which is more desirable to every individual business.
The ultimate goal of your company is to maximize your revenue by providing good working experience that is consistent and consistent with what the client wants.
You need to know how your business generates new revenue.
The business that wins over the “real deal” is going to come to you with more experience than your competitors. The experience earned will be used to your advantage and to improve on the business. The experience you create will get the following benefits:*
An opportunity to succeed is one in which your company is willing to work with you in a meaningful way.
Once the deal is done, the real deal is over and the real winner will be found.
As a business, this means the customer benefits, which are generally associated with business performance and innovation. We are building a business around the opportunity to develop, grow and grow our customer base, so that we can innovate, develop, create new opportunities for our customers and continue to meet our customers’ needs.
The customer service aspect of your business isn’t about providing feedback, but instead about delivering service and helping others.
Our goal is to maximize your customer experience by providing high quality customer service as efficiently as possible to deliver an exceptional cost-effective experience.
If the service you provide is not as good as your competitors will say it is, that won’t mean that you have to change everything. However, you will still want to keep the experience you build as affordable as possible, and to understand customers as effectively and consistently as your competitors.
Your unique business model will allow us to take each one that you offer more seriously, be it financial, technical or otherwise.
The primary goal of the business you create, is to deliver better and more value. The value derived from the experience gained from the work you do comes from your customers and customers’ confidence in you.
We value customer feedback and support as much as we value customer confidence. We want people to trust that we deliver something that they feel is absolutely warranted. Our goal is to demonstrate that we truly care about the customer that we help.
If you are still interested in learning more, check out the links on our blog, the following video series, or listen to talk radio. If you want to learn more from our previous work with clients and other companies you can also listen to our talk radio program here.
For more information about our business policies and regulations, refer to the following documents from the National Institute on Alcohol Abuse and Alcoholism: http://www.iaaa.gov/alcoholic-abuse-policy/pdfs/documents/N