The Upper Big Branch Mine Disaster occurred on April 5, 2010 and killed 29 miners, making it the worst mining disaster in the United States in almost 40 years. The disaster occurred at the Upper Big Branch coal mine operated by Massey Energy in West Virginia. Massey had a record of safety violations at the mine and a focus on profits over safety. The disaster raised issues around corporate social responsibility, whistleblowing protections, and miners' rights.
The Upper Big Branch Mine Disaster occurred on April 5, 2010 and killed 29 miners, making it the worst mining disaster in the United States in almost 40 years. The disaster occurred at the Upper Big Branch coal mine operated by Massey Energy in West Virginia. Massey had a record of safety violations at the mine and a focus on profits over safety. The disaster raised issues around corporate social responsibility, whistleblowing protections, and miners' rights.
The Upper Big Branch Mine Disaster occurred on April 5, 2010 and killed 29 miners, making it the worst mining disaster in the United States in almost 40 years. The disaster occurred at the Upper Big Branch coal mine operated by Massey Energy in West Virginia. Massey had a record of safety violations at the mine and a focus on profits over safety. The disaster raised issues around corporate social responsibility, whistleblowing protections, and miners' rights.
The Upper Big Branch Mine Disaster occurred on April 5, 2010 and killed 29 miners, making it the worst mining disaster in the United States in almost 40 years. The disaster occurred at the Upper Big Branch coal mine operated by Massey Energy in West Virginia. Massey had a record of safety violations at the mine and a focus on profits over safety. The disaster raised issues around corporate social responsibility, whistleblowing protections, and miners' rights.
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The Upper Big Branch
Mine Disaster
Ranov
Zaenal
Fahmi
Natasha & The Backbones
Ari
2 Problem Description 4 Recommendations and Discussion
3 Case Analysis
1 Learning Objectives
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.
Those strategies play roles in delivering value to
customers and shareholders and keeping the sustainability of the company itself.
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.
A strategy that is unethical is
morally wrong and reflects badly on the character of the company personnel.
There are costs incurred when
ethical wrongdoing is discovered.
1. 2. 3.
Visible Costs Internal Administrative Costs Intangible or Less Visible Costs
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 in society at large.
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
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.
Type of Mining in UBB
UBB
Method of Mining in UBB
UBB
Longwall Shearer
On April 5, 2010
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.
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
Stakeholder Analysis 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)
Stakeholder Analysis 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
Ethical Issues Whistle-blowing Rights of employees within a firm Corruption and Bribery Employee duties Unions The right to strike
Recommendations
MSHA use power to enforce existing regulations:
More frequent & detailed inspections increase budget Surprise checkups MSHA in closer contact with miners MSHA reps working at company to act as and support whistle blowers
Change the mentality of the company
Help subsidize the proper safety equipment Harsher laws and greater penalties Give incentives to change Meetings/mine tours every quarter Improve Law system Shorten the appeal process
Unite miners across to prevent another tragedy
Annually/semi annually conference with union reps from all over the country Closer ties to union (UMWA) Increase exposure of current issues Ads Social media
