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A related case of Toxic Torts occurred in East Anglia, where chemicals from a factory seeped into a dam (Barcelona Field Studies Centre, 2009).
The best risk management method is prevention. While Alumina's current situation is somewhat dire, the company can learn from its mistakes and attempt to prevent the same thing from occurring in the future. One measure that can be taken in this regard is to fully assess the current situation in terms of the amount of danger caused, the amount of people affected, and the mitigation measures necessary to eliminate the health risk. A cost analysis should also be conducted to quantify the financial risk, especially in the future (.
The risk of public image can be mitigated by taking the option of settlement via arbitration or mediation. Alumina's guilt and wrongdoing cannot be denied. Being subjected to a court battle that will probably be lost is both unnecessary and highly risky in terms of costs and loss of reputation. To save both, settlement is probably the best option. Indeed, the negative reports in the press regarding the company has caused damage enough.
The way forward is then to take corrective action followed by preventative action. Corrective action entails both legal and public actions. Legally, Alumina should settle the issue outside of court and admit its wrongdoing to EPA officials. The company should then implement disposal methods that comply with the EPA standards.
Publicly, Alumina should admit wrongdoing, but emphasize its corrective efforts for the future....
In addition, and to improve its public image, the company should also offer to pay compensation for any medical costs or other problems that arose from the pollution they caused. This will provide them with much more goodwill from the public and allow the company to continue existing and implement preventative measures.
Preventative measures include continuous contact with the EPA and legal professionals to ensure that compliance requirements are met. Furthermore, the company can attempt to maintain friendly contact with its public by becoming involved in environmental and other charitable issues. The current business climate is very much focused upon corporate responsibility. It appears that Alumina has not taken this element of business to heart in the last five years of their legal problems.
Once the preventative and other measures are however implemented, the company's public image will be restored and public trust regained, even if this takes a number of years to accomplish. A company that can show sincere corporate responsibility gains much more than one that attempts to take shortcuts that result in costly legal problems.
References
Barcelona Field Studies Centre. (2009). Donana National Park: Causes and Effects of Toxic Waste Pollution. http://geographyfieldwork.com/DonanaCauses.htm
Landlin, David C. (2005, Aug.). Current Trends in Toxic Tort Litigation. Risks Management Magazine. Retrieved from http://www.hunton.com/files/tbl_s47Details%5CFileUpload265%5C1238%5CLandin_Toxic-tort.pdf
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