Bhp External and Internal Environments

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The BHP OK Tedi Mine in Papua New Guinea (PNG) has raised many environmental, ethical and social responsibility issues regarding organisational management on many fronts. There have been many approaches in an attempt to confront and address the varying factors which encompass both past and present business practices.
The mine was an open pit gold and copper mine located in the western province of PNG the operation of which resulted in collateral damage, affecting up to 50,000 people in the nearby villages. During the 1970’s, early drilling began and was overseen by Kenneth Copper Corporation. BHP then won the lease in 1984. The initial stages of the mining saw utilisation of the cyanide extraction procedure, however, a large copper region
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This also included 10% of the company going to the PNG government.

₁ Cameron Forbes and Matthew Stevens, “BHP considers PNG mining solutions”, The Australian, 24 May 1994.
₂ Ibid. p 1
From this rises a larger issue in regards to managerial ethics. The major issue that arises here in regards to this is the decisions which drive profitability at the expense of the environment. Has the standards of conduct and moral judgements used in the behaviour of BHP aligned with environmental standards and global consistency? How do these judgments in turn affect not only the local environment but also the socio cultural environments? To focus on these ethical issues it is important to look at the regulations that govern corporate behaviours, the nature of the relationship that BHP as an organisation has with its social environment and the connection that economic growth has at the cost of ethics.
Firstly we must look at mining as a whole in which other major mining companies have followed a global standard of practices in protecting the environment. Governments play a key role in setting these environmental standards for organisations to meet them. There are a series of guidelines “that are targeted at managers to provide the practical techniques and guidance they need to manage the environmental risks and impacts of their own operations” ₃
In Australia this interaction between an organisation and its
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