Read the following case and answer the questions that
follow.
You are a consultant and you have recently received an email from
one of your clients, ABL
plc (a major mining company).
Dear Sir/Madam
ABL plc has an opportunity to mine for coal in a remote and
sparsely populated area. The
mining process proposed in this instance would remove all
vegetation from the land
concerned. After mining has finished, there will remain substantial
lakes of poisonous water
which will remain toxic for a hundred years.
The mining process is profitable, given the current high world
value of coal. However, if the
company were to reinstate the mined land, the process would be
extremely unprofitable. The
company has received permission from the government to carry out
the mining. The few local
residents are opposed to the mining.
As you know, our mission statement says that we will „endeavour to
make the maximum
possible profit for our shareholders while recognising our wider
responsibility to society‟.
We are aware that our decision relating to the above coal mining
opportunity could potentially
cause a conflict between our objectives.
Required:
a. Advise the management of ABL plc about the potential cause of
conflict between the
company‟s objectives and how such conflicts can be dealt with. (10
marks)
b. Outline the ethical issues surrounding the proposed coal mining
operations. (10 marks)
Read the following case and answer the questions that follow. You are a consultant and you have recently received an ema
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