Environmental Justice Case Study: Marcopper in the Philippines
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TABLE OF CONTENTS
I. Case Background A. Facts of the Case B. Areas of Consideration 1. Point of View 2. Strengths-Weakness-Opportunities-Threats (SWOT) Analysis II. Case Narrative A. Statement of the Problem B. Objectives of the Case III. Case Analysis A. The Organization: Organizational Behaviour Perspective B. Ethical Issues: Business Ethics Perspective C. Decision Criteria and Weights D. Alternative Courses of Action E. Evaluation of ACA F. Best Solution G. Implementation Steps IV. References
I. CASE BACKGROUND
A. Facts of the Case
Marcopper Mining Corporation (MMC), was managed and controlled by Placer Dome, Inc., the 5th largest mining company in the world. They started their mining operation in Marinduque in 1969. The company provided jobs and hugely contributed to the development of infrastructures in one of the country’s destitute island.
The government permitted MMC to perform its mining operations in Marinduque. Mt. Tapian and San Antonio were the two mining sites of MMC. With regard to the company’s business activity, they have been involved in various negative issues. Their improper waste disposal caused severe damage and tragedy to the environment and to the local residents. The rivers were contaminated, homes were destroyed, lives were lost, the residents had health problems, all just because of the company’s negligence.
B. AREAS OF CONSIDERATION
1. Point of View
The group decided to take the perspective of the management of Marcopper Mining Corporation to come up with a detailed analysis of the company’s strengths, weaknesses, opportunities, and threats.
2. Strengths-Weakness-Opportunities-Threats (SWOT) Analysis
Strengths Weaknesses
40% owned by the 5th largest mining company in the whole world
Largest employer on the island of Marinduque
Has created most of the infrastructure in Marinduque
Provides 20% of the country’s copper supply
Their mining operations caused serious health and environmental problems to the community at risk
Took no responsibility of the “Marcopper Mining Disaster”
Did not participate in clean-up efforts after the spill
Currently entering bankruptcy
Opportunities Threats
Focus on innovation
Technology development
Capability development
Occurrence of natural calamities /disasters
Local politics
License to operate the business
Internal Factors:
Strengths
âť– 40% owned by the 5th largest mining company in the whole world Placer Dome, a Canadian company, co-owned and managed the operations of MMC. The said company is the 5th largest mining company in the world and have 15 mines in 6 countries, employing 12,000 people.
âť– Largest employer on the island of Marinduque/ Has created most of the infrastructure in Marinduque Marinduque has one of the highest incidences of poverty in the country. When Marcopper started its mining operations in the island, the company was able to provide jobs to about 1,000 people and created most of the infrastructure in Marinduque.
❖ Provides 20% of the country’s copper supply Marcopper Mining is amongst the leading providers of copper in the Philippines, one of the world’s most important base metal.
Weaknesses
❖ Their mining operations caused serious health and environmental problems to the community at risk Marcopper’s mining activity has polluted waterways, killed fish, and flooded agricultural fields. Not only was the supply of water shrinking, but it was contaminated. People were being poisoned indirectly through the fish and water, moreover, workers were dying from direct contact with the mining operations.
❖ Took no responsibility of the “Marcopper Mining Disaster”/ Did not participate in cleanup efforts after the spill After the tragic spill, Marcopper Mining did not take immediate action due to lack of finances and did not participate in the damage clean-up caused by their mining activity. Instead, Placer Dome took over and accepted the responsibility of the clean-up.
âť– Currently entering bankruptcy After