Business Ethics and Corporate Social Responsibility

This document provides an analysis of the labor and environment issues in Montana's Marlin Mine, including violations of labor rights, environmental impacts, and stakeholder responsibilities. The document also discusses the application of broad and narrow CSR theories.

Running Head: BUSINESS ETHICS AND CORPORATE SOCIAL RESPONSIBILITY
Business Ethics and Corporate Social Responsibility
Student’s Name
University Name
Author’s Note

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1. Executive Summary of the identified issues
In local interviews concerns regarding labour norms of Montana were conducted by labour
specialist, current and the past employees, as well as some of the residents and by the Catholic
Church also on specific topics. However, analysis shows that labour concerns have not been
exposed since the local employees dread to lose their job if they speak in open about the issues
their facing at the work places. However, it is unclear whether the organisation is able to provide
the workers adequate protection against the harassment in workplace. It is evident that Montana
took specific actions in individual cases however they have not come up with stronger policy
implementation for eliminating harassment from workplace in the Marlin mine. The right to just
and favourable remuneration has also been breached by the organisation. Since, minimum wage
limit in Guatemala is far below living wage standard, The Mine employees receive wages
including their overtime payment that is well below threshold living wage. In fact most mine
workers travel large distances which make their job duration of 12 hour rotations.
The organisation has also breached the right to healthy and safe working conditions of the
workers. The basic two floors in this context are inadequate the regions towards baseline health
testing of employees on entering employment and testing for detection of industrial illness
among workers during their employment tenure.
Another fundamental right that has been violated by Montana is freedom of unionizing and
collective bargaining. There is evidence that Montana attempted to retaliate against the
employees who attempted to form Union and dismissed them. This had a long drawn impact on
the employees who still exist to believe that they would be taken down from their job if they
attempt to unionize.

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Popular studies have also revealed that public health is affected by the environmental impacts
created from the operations in the Merlin mine. The organisation has failed to identify the risk
from blasting as well as heavy traffic that affects the local population. In this name they have
reached the right to own property. As analysed, they did not establish baseline studies all
monitoring policies since the year 2006. However the agreeability of their adherence to
environmental safety policies is ensured by the fact that no visible damage have been done by the
operations of the mine in that area.
Lastly, it should be provided that at the closure planning of the Merlin mine have to be done
recently in order to avoid failing to respect human rights of the local communities. In this
context, On Common Ground Consultants Inc. argues that with a proper occlusion plan there
should be a robust post closure plan also. The later will encompass all local stakeholders so that
all important impending of the closure plan can be addressed properly.
2. Analysis of the Labour Issue
2.1 Case Highlights
Montana has given employment to local indigenous people in the Marlin Mine. They have
provided formal skill training to people with low literacy level and thereby respected the right to
education, right to work and the rights to non discriminated employment also. Besides, the report
reveals that there is lack of allegiance among the contractors who hardly respects the labour and
human rights. This is a delusion of the area of responsibility on the part of the organisation
because of the risks that come up from the action of the third parties involved in the work role of

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Montana in the Merlin mine. In this specific case it can be the failure to monitor the workplace
assessment and job monitoring of the contractors.
2.2 Application of Broad CSR
In order to analyse the situation from a broad perspective of CSR, the stakeholder theory of
Corporate Social Responsibility can be applied here. This theory argues that the people whose
lives are impacted by the actions of a corporation are also valuable stakeholders to the
organisation even if did not hold any real-time share or stock with the organisation. Hence, it is
incredible that they also have a certain set of duties and responsibilities towards the actions of the
firm. In this context, since the poverty rate and employment rate in the local region of the Merlin
mine is very high, the organisation also has the responsibility of demanding local employment
from any resourceful organisation engaged in operations in the world in the Merlin mine. This
local demand was fulfilled by the organisation by means of their ability to hire and retain the
indigenous workers. However, other than gathering employment, the local stakeholders also have
the responsibility of forcing the organisation into developing formal policies as well as
procedures so that the hiring of local indigenous workers can be insured.
However, based on the stakeholder theory it can be argued that responsibilities of the local
stakeholders also involves the actions on their part that are needed to be taken for ensuring that
the contractors or other third parties who undertake mining projects from Montana are respectful
of the workplace norms that have been preserved by the company itself.
Lastly, analysing from the perspective of the stakeholder theory it can be argued that the
tendency of the workers to prevent the formation of unions for collective bargaining from the
fear of losing their job is unjustified. They have the duty to ensure that the grievances and

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unjustified approaches of other stakeholders towards them or towards the work procedure of the
company should reach the ears of the higher management. This is why they need to show
responsibility towards formation of unions within the organisation.
2.3 Application of narrow CSR
Analysing from the narrow perspective of CSR, the stockholder theory of Corporate Social
Responsibility can be utilised here. This theory advocates that the hired managers and the
directors are only liable to fulfil only the demand of the shareholders and no other stakeholders
of the organisations. This is because they are salaried under the shareholders directly and
therefore the benefits and interests of the shareholders should be of utmost importance to the
organisation. From this perspective it is justified that Montana provides wages to the workers of
Merlin mine which agrees with the minimum wage standard in Guatemala. In this context the
management of mountain is supposed to remain deletions to the shareholders only, emphasizing
on achieving the maximum profit for them. For this purpose, they need not care if the minimum
weight standard of Guatemala supports family with living wage or not.
3. Analysis of the Environment Issue
3.1 Case Analysis
The Independence technical review of the operations of Montana in the Merlin mine reveals that
the organisation has shown consistency of performance in terms of meeting the industry
standards regarding Human Rights, monitoring of emission and mitigation of excess emission
ok, reducing dost, noise and water pollution from emissions and for mostly the establishment of
the community participatory monitoring committee as well as the liquid effluent management
strategies. There is no evidence that Montana has breached the right to water of the local

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employees in terms of water availability, accessibility or quality. However, this report identify
that there are still some Areas where the right to water has not been diligently respected by the
organisation and this is evident from the community fears regarding the trust in the
environmental management of the organisation. There is no distinct report of lacking diligence of
the organisation, other than abstract reports of environmental negligence in regarding control of
water quality or accessibility in the last 5 years. In this context one case can be identified. The
water of the local springs have been affected from the activities of the mind because of the lack
of a more complete hydro sensors and groundwater monitoring programme by Montana. Some
locality is dependent on spring water for their daily basis activities. In this context it is necessary
that changes to the source of water supply are introduced from the end of the organisation so that
any health risks are not evoked from the consumption of contaminated water.
3.2 Application of Broad CSR
The stakeholder theory of CSR will be used hair for analysing the highlighted issues from the
perspective of broad CSR. The first issue that should be highlighted for analysis and this theory
is the contamination of the local water bodies because of the emissions from the Merlin mine. In
this context, following the provisions of the stakeholder theory it can be argued that the
households in the Slete Platos who are dependent on the water from Txeshiwe spring should act
as the necessary stakeholders for mitigating the issue of admission. As advocated by this theory,
these people are the ones who lives are affected by the operations of Montana. Hence in this case
if the issue of emission and pollution of the spring water is not resolved, the whole reliability is
not to be ushered on the management of Montana. On the contrary the people who are affected
by it should have taken the necessary steps to inform the organisation in a prescribed away
regarding the issues they are facing from contamination of the spring water. Nevertheless, as it is

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evident that the AMAC had taken active Strategies for monitoring Community Health and the
impacts of the operations of the firm on local community. Hence, it can be analysed that they
might have overlooked the consequences of emission from the Mine on this individual instance.
3.3 Application of Narrow CSR
Analysing from the perspective of stockholder theory, it can be argued that the management or
the third party contractors reliable for maintaining the ethical reputation of the organisation. This
is because in the modern business environment, customers referred to deal with organisations
that generated value towards the society and environment. Hence, if Montana is not able to do so
they would lose customers which will be a loss for the shareholders who have invested in to the
organisation. From this perspective it is necessary that the technical issues of air, dust as well as
noise pollution are diligently acknowledged. In a similar way post closure monitoring is also
necessary. This will not financially benefit the shareholders. However with a proper closure time
frame and the closure costs being low compared to the maintenance of norms, the management
should emphasize on meeting the shortcomings of the closure planning of the mine. The ethical
reputation will help the organisation in acquiring new target market and new operational sector
also in the future.