The Upper Big Branch

8/21/2019 The Upper Big Branch

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TheUpper Big BranchMine Disaster


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Ranov FahmiZaenal Ari

Natasha &The Backbones


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2 Problem Description

1 Learning Objectives

3 Case Analysis

4 Recommendations

and Discussion


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Objectives

To learn that a company has also a duty to:

(1) act in ethical and fair-dealing manner,

(2) demonstrate socially responsible behavior,

internally and externally,

(3) adopt business practices that conserve

natural resources.


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Those strategies play roles in delivering value tocustomers and shareholders and keeping the

sustainability of the company itself.


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Business Ethics[biz-niz eth-iks]

noun

The application of ethical principles and

standards to the actions and decisions of

business organizations and the conduct of

personnel.


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A strategy that is unethical is

morally wrong and reflects

badly on the character of the

company personnel.


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There are costs incurred when

ethical wrongdoing is discovered.

1. Visible Costs

2. Internal Administrative Costs

3. Intangible or Less Visible Costs


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Corporate Social Responsibility[kawr-per-it soh-suh l ri-spon-suh-bil-i-tee]

refers to

a companys duty to operate in an honorable

manner, provide good working conditions for

employees, encourage workforce diversity, be

a good steward of the environment, and

actively work to better the quality of life in the

local communities where it operates and insociety at large.


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Massey Energy

a coal extractor in the United States with

substantial operations in West Virginia,

Kentucky and Virginia owner and operator of the Upper Big Branch

(UBB) mine


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Masseys Good Contributions

1. Delivered benefits to the nation as a whole and

to Appalachian region.

2. Lessened the countrys reliance on imported oil.

3. Donated to scholarship programs and provided

emergency support during natural disasters.


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Type of Mining in UBB

UBB


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Method of Mining in UBB

UBB


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Longwall Shearer


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On April 5, 2010


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The incident killed 29 miners and 2 others seriously

injured which brought it to the worst mining disaster

in the United States in almost 40 years.


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Stakeholder Analysis

Don Blankenship

Massey President, CEO and Chairman (since 1992)

Recently stepped down December 30, 2010

Money and profit goal oriented

A Veteran Miner

Told Massey workers not to worry about the

unsafe conditions

Possible involvement with company politics


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A Mine Foreman

Felt unsafe about the mine conditions

Brought issue to superintendent

Almost internal whistleblower

(wanted to remain loyal, consequences of losing his job)

Workers/Miners

Without a union

Psychological instinct

(pressure to obey instructions)


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MSHA

Safety governmental agency

Flagged Massey Energy Co. for not obeying

standards

Frame of reference: politics

Shareholders

Investors of the company

Interested in revenues and profits only


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Whistle-blowing

Rights of employees within a firm

Corruption and Bribery

Employee duties

Unions

The right to strike

Ethical Issues


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Recommendations


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MSHA use power to enforce existing regulations:

More frequent & detailed inspectionsincrease budget

Surprise checkups

MSHA in closer contact with miners

MSHA reps working at company to act as and

support whistle blowers


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Change the mentality of the company

Help subsidize the proper safety equipmentHarsher laws and greater penalties

Give incentives to change

Meetings/mine tours every quarter

Improve Law system

Shorten the appeal process


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Unite miners across to prevent another tragedy

Annually/semi annually conference with unionreps from all over the country

Closer ties to union (UMWA)

Increase exposure of current issues

Ads

Social media


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THANK YOU


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DISCUSSION

Documents

The Upper Big Branch