Freeport Indonesia Case Study

727 Words 3 Pages
a. What is your evaluation of Freeport’s Indonesia environmental management?

The company has several environmental issues, the most important ones are:
Mount Jaya glaciers: There is evidence that proves that the firm’s activities do not affect glaciers, the company did well in not applying any particular measure.
Overburden storage: The firm made a good decision by developing short, medium and long-term plans and by designing a stable stockpile to prevent problems that its activities may cause.
Tailings deposition: The company shows its concern about the adverse effects on flora and fauna by adding solvents to the unavoidable tailings and by creating a long-term program that monitors Freeport’s effects on water. This way, as it is proved
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This is especially true when the operation is so large that it completely alters the way of life for locals. There are two main policies that can be implemented: The first is to attempt to do nothing, and have the locals continue with life as they normally would. The second is to influence the local community with Western values and ideas. Since the mine has such an impact on their way of living it wouldn’t be responsible to completely change their environment and leave the locals to their own. Freeport did the right thing by setting up extensive programs to help the locals. If a company is going to have influence on the locals instead of doing nothing it is best for them to do it correctly and completely. Freeport Indonesia genuinely was trying to help the locals and make sure that damage to them was as minimal as possible and in some cases try to help make their lives better with more sanitation and health as well as other business opportunities for …show more content…
Freeport had provided thousands of jobs for Indonesians and the company invested so much of their resources into Indonesia and building up the country, for example in 6 years Freeport had invested $895,581,629 of indirect benefits to the government of Indonesia and these benefits include wages, goods purchased in Indonesia, local area developments, charitable contributions and domestic reinvestments. Freeport also had their own social and cultural staff in Indonesia that provided medical services, drilled wells, built elementary schools, and constructed houses for many locals who were underdeveloped. It is argued that Freeport is just ruining the environment in Indonesia but they almost doubled their Environment activities budget from 1995-1996 showing that they were trying to be more sustainable in their works and in the case it stated that there was no evidence that species were being reduced to Freeport’s activities in the region. In the end, Freeport is helping to improve Indonesia’s economy, helping the community. Because of that, we consider they should expand their work and Indonesia should allow

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