Legal Liability for Environmental Law Violation Essay

Tags: chief executive officer united states business ethics environment

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Legal Issues Case Study



Plastics and resins are manufactured in the United States using petroleum products including liquid petroleum gases (LPG), natural gas liquids (NGL), and natural gas since they are fuels in the manufacturing process. Given that resin manufacture is a high-volume procedure, profitability of companies that manufacture the product is dependent on their operating efficiencies. While large companies have significant economies of scale for purchasing raw materials and production, small companies compete effectively through manufacturing specialty resins and fibers. As the CEO of PRC, a small manufacturing in this industry, Gina is facing a legal issue because of her decision to let employees dump waste into the river in order to enhance the profitability of her company and avoid being fired.



Gina's decision represents a major ethical issue that exposes several parties to legal liability for violation of environmental laws. According to the Legal Information Institute (n.d.), activities that have potential impacts on the environment are regulated by the United States government through a series of intricate statutes and agency regulations. Through instructing employees of PRC to dump waste into the river in an area that is land locked and not near the coast, Gina is contravening the existing statutes and regulations regarding environmental activities.

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This decision exposes several stakeholders of PRC to legal liability since dumping the waste into a river is tantamount to non-compliance with environmental laws and regulations.



One of the parties that is liable for non-compliance with environmental regulations is the company i.e. PRC. The company is exposed to legal liability because of failure to ensure that its environmental activities and overall operations relating to handling wastes are not in line with environmental laws. While the company may argue that the CEO should be held responsible, it's exposed to legal liability because of negligence. In this case, the company failed to establish strict processes and regulations that could prevent its management and employees from engaging in activities that cause environmental harm or damage. The company should be increasingly concerned with the legal liability because the decision of its CEO and actions of employees point to negligence and the lack of suitable controls to prevent involvement in environmentally-harmful activities and practices.



The second party that could be legally liable for violation of environmental laws and regulations is the company's Chief Executive Officer i.e. Gina. She….....

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References


Legal Information Institute. (n.d.). Environmental Laws Violations. Retrieved from Cornel University Law School website: https://www.law.cornell.edu/wex/environmental_law_violations#

McGraw Hill Education. (n.d.). Business Ethics and the Legal Environment of Business. Retrieved November 29, 2016, from http://highered.mheducation.com/sites/dl/free/0073524565/324445/jon24565_ch05.pdf

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