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Legal Ethical Environment
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Over the last several years, the mining industry has faced similar challenges. Part of the reason for this is because of the increase in demand for a host of different raw materials. In the case of Rio Tinto and BHP Billiton, they are facing similar challenges from various safety issues. Below we will examine how both companies are addressing this underlying problem. (Goodman, 2004)
Identify two firms with similar problems but from different countries
Two firms that are facing similar challenges that are from different countries include: Rio Tinto (based out of the UK) and BHP Billiton (headquartered in Australia). Where, they are wrestling with how to improve mine safety, due to a series of accidents that have occurred.
Conduct a comparative analysis of the firms
The two firms are facing increasing pressure to improve mine safety standards because of a number of high profile accidents. In the case of Rio Tinto, they have taken a more proactive approach to address this issue by: increasing spending and establish procedures that will support this objective. (Perrin, 2010) While BHP Billiton, has taken a more hands...
When you step back and analyze both firms, it is clear that Rio Tinto is more focused on addressing the problems at their facilities. (Stevens, 2007)
Analyze political, social, ethical, and legal differences facing both organizations and determine the impact these differences have on management decision making
The difference as far as Rio Tinto is concerned, is that management faced more scrutiny for a mining accident that occurred at their Lessing Mine in Australia (during 1998). This is disaster would bring the company into the cross hairs of regulators due to the obvious safety infractions. From a political standpoint this would force the company to take dramatic action to show that they are addressing this problem. Socially, Rio Tinto had a public relations disaster from the accident and needed to demonstrate that they cared. Ethically speaking; the managers knew that their current approach to safety was making the situation worse. Legally, the company was in violation of various safety standards / regulations and needed to address this issue as soon as possible. This is important, because it shows how this accident…
Bibliography
Australian Mine Disaster. (1998). Mine Web. Retrieved from: http://www.mineweb.com/mineweb/view/mineweb/en/page67?oid=80326&sn=Detail
Goodman, P. (2004). Booming China Devouring Raw Materials. Washington Post. Retrieved from: http://www.washingtonpost.com/wp-dyn/articles/A43765-2004May20.html
Perrin, C. (2010). Rio Tinto Spends More. IB Times. Retrieved from: http://www.ibtimes.com/articles/85861/20101126/rio-tinto-spends-more-for-underground-mine-safety.htm
Stevens, M. (2007). African Deaths Highlight BHP Mine Safety Problems. The Australian. Retrieved from: http://www.theaustralian.com.au/news/african-deaths-highlight-bhps-safety-problems/story-e6frg77f-1111115202285
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