Business Ethics Analysis Essay

4857 Words Oct 6th, 2010 20 Pages

1.1. The Description and Outline of Newmont Nusa Tenggara’s Case Study

Newmont Mining Corporation is an American company, which is the second largest gold and copper producer in the world. It started mining in Indonesia at Sumbawa Island, West Nusa Tenggara and Minahasa Raya, Sulawesi. In 1999, Newmont Nusa Tenggara (NNT) was established with 45% share Newmont Mining Corporation, 35% share Sumitomo Corporation from Japan, and 20% share Pukuafu Indah from Indonesia.

NNT’s business in Indonesia is based on established management principles, well-established systems and procedures, and strong financial capital. Even though they were well prepared, they still failed to apply certain ethical standards.
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Later, it has been found that the waste contains heavy metals and chemical elements, which will disturb the local marine ecosystem, killing fish and reducing biodiversity as the bay becomes more and more shallow. And also NGOs found that some diving locations are polluted, since the coastal corals have changed color from blue to brown. However, the Environmental Minister of Indonesian Government deemed that this type of destructive practices as “Environmentally Friendly”. It is argued that NNT acted unethically for gaining advantages for itself through marine ecosystem destruction in West Nusa Tenggara.

She also discusses other aspects of significance in this case study. For example she notes that although NNT believes that its long-term welfare is tied to local people, NNT failed to keep the commitment to endorse: treating all parties with respect and equity, promoting transparent participatory approaches, being a catalyst for integrated sustainable development, building trust through partnership with stakeholders, and demonstrating integrity, creativity and excellence in all behaviors.

As the community refused to share their land with NNT’s mine, port, processing plant, satellite, township, roads, and tourism project because NNT confiscated the fertile farmland without the landowner’s permission. Besides land confiscated which lead to a loss of livelihood, the communities also get the impact for NNT’s heavy water use which caused springs and
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