Everest MAN 4407 – Resolving Ethical Business Challenges

Individual Work ­ Practical Case StudyAfter reading “Resolving Ethical Business Challenges” (at the end of Chapter 2),answer the exercise questions.Each answer should be between 100-200 words and supported by evidence inthe case and/or ideas from the text or outside research.Cite all direct quotes or paraphrased ideas from the case in APA format (author,year) or (author, year, p. x). Include a reference list at the bottom of yourhomework as well as an APA formatted title page at the top of your work.By Sunday, 11:59 PM (Mountain), you’ll need to submit your assignment. CASE STUDY: RESOLVING ETHICAL BUSINESS CHALLENGES*Demarco just graduated from Texas University and had been snatched up by Xeon NaturalResources Incorporated, one of the top natural resource extraction companies in the world.Because he was Brazilian, bilingual, and spoke several specific Brazilian dialects, hisstationing in Brazil was a no-brainer. Xeon was deeply involved with a project within theBrazilian rain forests in mining an extremely valuable element called niobium. Niobium is arare earth element essential for micro alloying steel as well as other products such as jetengines, rocket subassemblies, superconducting magnets, and super alloys. Brazil accountsfor 92 percent of all niobium mined, and Xeon Natural mines much of the element in Brazil.Xeon discovered a large niobium deposit, and estimates the corporation could make anadditional $5 billion in profits over the next two decades.Demarco soon discovered he was one of several employees assigned to explain to theindigenous population that Xeon wanted to extract the niobium from the lands given to thetribes by the Brazilian government. The land was, by decree, compensation for nativeminorities. Having spent several months with various tribes, Demarco learned they werecommunities that had not been altered by western culture. It was obvious to Demarco if Xeonbegan strip mining the area, thousands of “outsiders” would be brought in and would impactthe cultural heritage of the indigenous populations. Demarco discussed this with his boss, Barbara. “Yes, I understand all you are saying, and Iagree this will change their lives as well as their children and grandchildren’s lives,” Barbarasaid. “But think of it this way, their standard of living will be greatly enhanced. Schools willbe built, hospitals will be available, and there will be more employment opportunities.”Demarco responded, “While the tribal leaders want a better life for their people, I feel theyare being steam-rolled into accepting something they don’t understand. I’ve talked to some ofthe tribal leaders, and I am positive they have no idea of the impact this will have on theirculture. We have many stakeholders involved in this decision, including Xeon’s employees,the tribes, the Brazilian government, and even communities beyond the tribal lands. I thinkwe need to reevaluate the impact on all of these stakeholders before proceeding.”Barbara sighed. “I think you make some good points, and I am concerned about thesedifferent stakeholders. But you should understand we already have buy-in from the keydecision makers, and our business depends upon being able to mine niobium. We’ve got tocontinue this project.”Demarco returned to the camp. The other specialists questioned him about Barbara’sreaction. As he spoke, some of the specialists became concerned about their jobs. A fewadmitted they heard the local and national media were raising awareness about the negativeimpact mining this mineral could have on the indigenous populations.A few days later, Demarco heard that some of the tribal leaders had new concerns about theproject and were organizing meetings to obtain feedback from members. Demarcoapproached one of the mining specialists that studied the potential impact of strip mining theland. The specialist said that while he understood stakeholder interests, he felt the extractionmethods Xeon used were environmentally friendly. While creating a temporary disruption inthe ecosystem of the rainforest, Xeon’s strip mining methods provided an opportunity forrestoration. In fact, strip mining that was done in the United States before there were anyregulations provides a good example of how the forest can recover and grow back to itsoriginal condition.Demarco knew despite the potential benefits, there would still likely be opposition from thetribal community. Additionally, no method of strip mining is entirely environmentallyfriendly. Demarco realized even with restoration, the lives of the indigenous tribes would beforever altered.Demarco was to meet with tribal elders the next day to discuss their concerns. Heunderstood that whatever the decision, it would negatively impact some stakeholders. On theone hand, the tribal members might compromise their traditional way of life and theenvironment would be harmed if the strip mining project began. On the other hand, Xeon’sfuture and the future of its employees depended upon being able to mine the niobium. Itcould also benefit the tribes economically. He was not sure what he should tell the triballeaders.QUESTIONS | EXERCISES1. How should Demarco approach this issue when he meets with the tribal leaders? 2. What should be the priorities in balancing the various stakeholder interests? 3.Can the CEO and board of directors of Xeon continue operations and maintain astakeholder orientation? (Ferrell, 20160101, pp. 54-55)Ferrell, O. C. (20160101). Business Ethics: Ethical Decision Making, 11th Edition [VitalSourceBookshelf version]. Retrieved fromhttps://bookshelf.vitalsource…./books/9781337269131