Bhp External and Internal Environments Essay

1808 Words Oct 22nd, 2011 8 Pages
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 environmental disaster significantly impacted the livelihood and lives of nearby villagers. There was a responsibility by not only BHP but also by the PNG government in taking action to address the environmental hazards. An example of a situation with similar responsibilities would be of the Stava Tailings Dam failure in Italy where there were 2 dams that were not used and neither the public administration nor the mining company took responsibility in the years the dams were not used.
In 1994 there was a 4 billion dollar case against BHP. The culture of BHP was forced to become publically available as external pressure groups such as Community Aid Abroad forced the company to take liability for the environmental situation that it had created. There was lobbying to stop further mining until these issues had been addressed. The response from the PNG government was to “handle this in our own country under our own laws”₁
BHP as an organisation had contributed too many positive initiatives that would funnel back into the region which included jobs, infrastructure, exports and a large trust fund. This in light can be seen in the Mackay coal mining boom in recent times contributing to many socio and regional benefits for the community. In an effort to portray a strong culture within the company BHP went on to saying that it is “committed to carrying out all aspects of its operations in a responsible manner and adopts the same high standards

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