Recognizing and Minimizing Tort

University of Phoenix

Business Law

3/01/2010

When dealing with large organizations and companies, there will always be outside entities that threaten a company’s well being. An organization must fight to establish a good public image and be consistent to gain favor with the public. A wrong move in the public eye can cost a company millions of dollars to re-establish that firm foundation within the surrounding areas. The level of trust that is created can most often disappear with one mistake made and can take years to rebuild. Alumina Inc. realized the significance of a mistake that they made five years earlier and had to fight and use strategic planning to make the problem go away. Targeted by the EPA for non-compliance with the environmental norms, Alumina was ordered to clean up, due to the fact that FAH in test samples were higher then the prescribed limit. Alumina reacted quickly to fix the situation, however, five years later they are still dealing with the after affect of falling below compliance and are struggling to keep the organizations public image from becoming tainted.
One tort or risk found in the simulation that Alumna Inc. must face in order to have a positive public image is not playing fire with fire. In the first simulation Alumina Inc. fired back to allegations of continued negligence with a record of their previous five-year stint as positive standing with the EPA. This quick reaction caused the media and public to view the organization as being defensive, and having something to hide. The organization must be aware of these types of tactics used by the media and other informational outlets that are baiting a reply. A strategy must be enforced of how and when to react to allegations. I believe a team must be formed to quickly and effectively deal with situations as they arise. An organization should detect when negative press is prying for a response and act accordingly. The best way to prevent future damage to the company and...