Summery For The Case Provided Article Review Examples

The relevant stakeholders described in the articles is composed of the corporations such as Newmont Mining and the other companies involved in the mining operations. However, the most affected and considerably the important stakeholders in the case are the residents of the communities near the Yanacocha mine, and town of Choropampa. Peru’s mining history was shrouded with allegations of environmental negligence due to the issues of mercury spill that affected the nearby areas of Newmont mining site. What makes the corporations involved as stakeholders is that the company has the highest business interest in the issue given that Newmont mining is considered as the largest copper and gold mining company in the world. In addition, Newmont is the highest shareholder in Cajamarca and Yanacocha mines. Newmont’s position as the stakeholder in the issue is its large investment in the business that is under scrutiny due to the incidents where 151 kilograms of mercury spilled in the roadside as far as 25 miles. However, the affected residents of the mercury spill are the most important stakeholders in the issue. It can be recalled that the residents have mistaken the mercury for precious metal and believed to have medicinal value. This caused serious danger to the residents of the aforementioned locations in terms of health risk.
It is apparent that Newmont Mining has serious violation of ethical standards pertaining to social responsibility. Although, part of Newmont’s corporate value is to ensure social responsibility in its operations, it is on the other hand is the most violated. The ethical issue arising from the lack of social responsibility is considerably critical due to the serious effect that it poses to the people. Based on investigations by Kurlander, the company failed to meet the necessary social license to operate in the aforementioned mining locations. In addition, the company also failed to meet neither the Peruvian nor United States mining standards. It was found that the mining operations had issues with water, air, road, and health. Although, Newmont agreed to pay the damages amounting to $40 million, it is still not enough considering the extent of damage that the mining operation had inflicted to the people and the environment. There is a sort of negligence on the part of Newmont because the consequences caused by the problems could have been avoided if the company took notice of the dangers that may occur.
Social license is something that Newmont did not acquire. Due to the perceived nature and dangers of putting up a mining operation, the company should first assessed the situations and opened a dialogue with the locals to explain concept of the business and the consequences it may have on health and safety. It mas mentioned earlier that the locals though the mercury that spilled in the roadside is some kind of a valuable metal and had themselves exposed to the toxic material. If there was a social license acquired before the mining operations began, the locals should been made aware of the risks from being exposed to mercury. In addition, the locals could have been educated about the toxic elements that may come out of the mines. However, it appears that there was no prior initiative from the company to let such information to be known to the locals; thus, no social license was acquired before the mining operations began. Kurlander believes that social license is far more important than government license.
Looking at the issues perceived in the article, it appears that the ethical tradition of common good contributes to the conflict between the stakeholders. It is also the same ethical principle that makes it difficult for the organization to make a decision. In the concept of common good, the approach was drawn from the conditions where special attention was given to the matters important to the welfare of everyone involved. At some point the conflict and difficulty in decision-making occurs from the variation of perspective towards the ethical tradition of common good. For one, Newmont is a business; therefore it’s decisions takes greater consideration to the factors that will have a direct effect on its financial health. On the other hand, it is also Newmont’s responsibility to ensure that its business will not only benefit the shareholders, but also the community where it holds its operations. On the part of the members of the community, it can be recalled that in order for Newmont to sustain production in Peru, it began purchasing land in nearby areas in Quilish Mountain. However, the conflict arises between the company and the people of Cerro because the Cerro Quilish Mountain is sacred for the people. The concept of common good is apparent in the argument of the people of Cerro, their religious belief incorporates sacred landmarks and handing it over to Newmont will compromise the people’s faith. The conflict and difficulty in decision making emerge in the issue because as a business, Newmont will do what they can to sustain a profitable future while considering the position of the people about the value of the mountain to their faith.