Environmental Justice Case Study: Marcopper in the Philippines

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the disaster, Marcopper and Placer Dome closed down all mines in Marinduque. Moreover, a year after the accident, Placer Dome sold all their shares in Marcopper Mining leading to the company’s bankruptcy.

External Factors:

Opportunities

❖ Focus on innovation Investment on innovation defines a company’s vision towards futuristic opportunities. MMC management should encourage openness for new approaches and adopting new technologies in order to embed effective management, track project risk factors, prioritize operational excellence and capabilities development at mine operations.

❖ Technology development MMC needs to focus on futuristic solutions rather than just working on the existing methodologies. Better utilization of technological advancements can assist in better planning and execution of their projects.

❖ Capability development This type of development is crucial for continuous operational improvement. Every mining company needs to do process benchmarking for rating the operational performance compared to the major industry leaders. This can highlight the greatest potential change for improving the short term and long term process improvement.

Threats

❖ Occurrence of natural calamities/disasters Natural disasters such as flood, earthquake, volcanic eruptions can cause significant business interruption and severe damage to the mining sites.

❖ Local politics Local politics, change of policies from governments and political risks play a major role in implementing laws that affect the mining industry.

❖ License to operate the business Getting a license or permit to operate the mining business from DENR must be strictly enforced because their first interest should be the protection of the mineral resources of the country and the security of the community at risk, not just financial growth.

II. CASE NARRATIVE

A. Statement of the Problem

Given that Marcopper Mining Corporation’s operations in Marinduque severely affected the health of the environment and the people in the area, what can the company do to compensate for the damages done?

B. Objective/s of the Case

● To provide a detailed analysis of the internal and external factors affecting Marcopper Mining Corp. ● To properly identify the ethical issues involved in the case ● To propose possible solutions/actions that can help in the rehabilitation of the affected community ● To come up with the best recommendation in addressing the issue

III. CASE ANALYSIS

A. The Organization: Organizational Behavioral Perspective

In the course of Marcopper Mining Corporation’s stay in Marinduque, they have exhibited irresponsible, unethical and immoral business operations. The lenient implementation of the different environmental laws contributed to environmental disaster caused by the mining operations. The company failed to take care of the balance between the economic development and sustainable use of natural resources. They operated unsoundly.

B. Ethical Issues

The following are the ethical issues we noted on our review of Marcopper Mining Corporation case: ● Marcopper Mining Corp. did not practice responsible mining i.e. proper waste disposal ● Government corruption - permits were still issued despite the public knowledge of the negative effects brought about by the company’s mining operations ● Almost all parties involved (Marcopper Mining Corp., Placer Dome, DENR) washed off their hands from the tragedy ● Marcopper Mining Corp. has not been cooperative in the clean-up, rehabilitation and restoration plans of DENR ● Years have gone by and the cases filed against MMC has been long sitting in limbo, a reflection of how poor our justice system is

C. Decision Criteria and Weights Decision Criteria Definition Weights Rationale

Proper compensation and care of residents affected

This follows the value of accountability. Every company should be responsible for the adverse effect of their operations.

40% Marcopper greatly benefitted from the use of Marinduque’s resources at the expense of the environment and its people. It is just right to properly compensate for that.

Addresses environmental concerns

This follows the proper implementation of Water Code, Pollution Law and Philippine Mining Law.

40% Marinduque is agricultural. It also has vast fishing grounds. The condition of the environment greatly affects their source of income and quality of living.

Having a good company image

A good company image allows further growth and unlocks opportunities for businesses.

20% Having a good company image help to ensure continued operations and the patronage of customers

D. Alternative Courses of Action

ACA 1: Marcopper Mining Corp. will find ways to raise funds in order for them to financially support the government and DENR’s rehabilitation program in the island of Marinduque.

Utilitarian In this alternative course of action, it is the government that will benefit most from this. They will be able to carry-out the implementation of the program