Environmental Justice Case Study: Marcopper in the Philippines

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

❖ 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.

❖ 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.

❖ Currently entering bankruptcy After