Problem Statement:
The case is about the somber aftermath that is encountered by the Newmont Mining Corporation after the worst mercury spill, which jeopardized their ability to conduct business in Peru. The incident is said to be the worst mercury spill in the global history when one of Newmont’s truck stumbled out more than 150 kilograms of toxic mercury inside Peru from the Yanacocha mine. This caused severe threat to the lives of hundreds of people and drastically devastated the native communities. The consequent audit to the incident also revealed that the operations of Newmont Mining Corporation in Peru neither confirmed to Peruvian nor United States standards of mining. It also brought about the health, water, air, and road issues to the community. The investigation report also clinched on imperiling the Newmont's executives to be ethically and morally subjected to imprisonment and criminal prosecution. In short, the incident posted serious financial and legal issues for Newmont Mining Corporation while also badly hurting its business reputation of being ethically and socially irresponsible.
Purpose/Objective:
The short term objective is to clean up the spill as quickly as possible while striving hard to reduce the harmful communal effects. In a long term, the principal objective of this incident is to stringently focus on reestablishing and following a precise code of standards and ethical guidelines abiding by the global benchmarks for the entities being engaged in mining operation to any extent.
Alternative Solutions:
Solution #1: Establish inclusive and cooperative guidelines for operational, environmental, ethical, and social safety to conduct mining operations internationally while vigilantly taking the international and Peruvian law into account.
Pros: This would release the stress in the current situation and enable Peruvian authorities to be more open and assisting in setting forth the guidelines. It would also help Newmont to at least sustain its business in the country.
Cons: Failing to do so would make it even difficult for the Newmont to continue its business activities in the country.
Solution #2: Immediately undertake socially responsible initiatives such as installing water cleaning plants, offering health and educational grants, and offering employment to the locals.
Pros: This would help to reduce the harsh impact of the business on the community. Moreover, this would also help Newmont to rebuild its impaired business reputation.
Cons: Failing to do so would influence the fluidity of Newmont’s business operations and would result in dismal lawsuits.
Recommended Solution:
Newmont Mining Corporation is recommended to undertake comprehensive and convincing corporate social responsibility initiatives to fulfill the social and environmental damage that it has done to the Peruvian community. They should commence a ‘Green Campaign’, which incorporates several sub-initiative of cleaning the environment of Peru. Newmont Mining Corporation can also look up to the Peruvian authorities and government to assist them in such initiatives in order to endorse the authenticity and reliability. They should further rebrand themselves as a socially responsible business by claiming their responsibility towards the Peruvian community.
Action Steps:
Newmont Mining Corporation should begin with cleaning up the spill and undertaking all the possible cleaning methods that can optimally reduce the hazards related to it. After doing so, they should continue with the developing and following the corporate social initiatives. In a long run, Newmont Mining Corporation should develop, execute, and maintain the local, as well as, international standards of environment safety.
