Product details

The case discusses the controversies regarding environmental abuses in Indonesia caused by Rio Tinto, the world''s largest mining company. It provides information about Rio Tinto''s mining operations at the Kelian Gold Mine, Grasberg Gold and Copper Mine, and East Kutai Coal Mine in Indonesia. The nature and extent of environmental pollution and damage to the country''s natural resources caused by these mines has been examined in depth. The case not only discusses the efforts taken by the company to repair the damages thus caused but also comments on their inadequacy. Besides briefly describing the nature of the mining industry, the case gives information about various other allegations of unethical business practices raised against Rio Tinto in Indonesia as well as in various other parts of the world. The case is structured as to enable students to: (1) understand the nature of the mining business, its impact on the environment, and on the health, safety and livelihood of the indigenous people from the affected areas; (2) understand the importance and the need for carefully monitoring the adverse impact mining operations have on the environment and the steps that the companies involved should take in this context; (3) understand how and why companies seeking to profit from such ventures need to balance their financial goals with their social and ethical responsibilities; and (4) understand how a company alleged of harming the environment and the local community can implement damage control measures. The case is aimed at MBA/PGDBA students, and is intended to be part of the ethics and social responsibility curriculum. The teaching note does not contain an analysis of the case.