– Explain what impact this purpose is to have in transforming the organisation’s impact in the world beyond profit – discuss at the societal, organisational, and individual level. – Using Schwartz Value Theory, identify three (3) core values and their assumptions. Explain how these values can be enacted by the board to shape an organisational culture that extends beyond the shareholder primacy and towards restoring stakeholder trust .
For the task, imagine that the members of your group have recently been appointed as the board of directors of the case company (“Mines R Us”) that is seeking to re-position and re-brand itself as a Responsible Business (i.e., A Responsible Business Mindset) after being held responsible for two major incidents. Firstly, the collapse of a mine tailings dam that devastated the local community and environment in a mining town in Peru, and secondly, the destruction of 36,000 year old sacred indigenous caves in a Canadian heritage site. These incidents have left the Mines R Us’s reputation in tatters and had a significant negative impact on the company’s share price. In the past the case company has embarked on a traditional business strategy focused solely on the pursuit of shareholder profit (i.e., A Shareholder Primacy Mindset). Mines R Us is a large multinational company and was considered a leader in the sector until these devastating incidents occurred that took several lives and destroyed significant communities and natural environments. The important company details are as follows
Case Company Name :Mines R Us
Industry/Sector: Mining and metals
Head Office Location: London
Operational Sites: 43 countries around the world including Australia, Brazil, Canada, Chile, Iceland, Peru, South Africa
FY20 Revenue :AUD$55.8bn
Core Products: Iron Ore, Aluminium, Copper, Diamonds, Energy, Mineral