Essay on Business Ethics Analysis

Words: 4874
Pages: 20


1.1. The Description and Outline of Newmont Nusa Tenggara’s Case Study

Newmont Mining Corporation is an American company, which is the second largest gold and copper producer in the world. It started mining in Indonesia at Sumbawa Island, West Nusa Tenggara and Minahasa Raya, Sulawesi. In 1999, Newmont Nusa Tenggara (NNT) was established with 45% share Newmont Mining Corporation, 35% share Sumitomo Corporation from Japan, and 20% share Pukuafu Indah from Indonesia.

NNT’s business in Indonesia is based on established management principles, well-established systems and procedures, and strong financial capital. Even though they were well prepared, they still failed to apply certain ethical standards.
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Moreover, NNT has changed the cultural landscape, as the town was filled with shops, salons, bars, and housing for NNT’s workers. Consequently, it could not avoid prostitution, alcoholism, gambling, and crime from entering the area. In addition, there was the contract life, marriages between local community women and foreign workers, which last for as long as the works contract finish. The local community also have been treated unfairly as NNT paid discriminatory wages and broken promises of giving 60% of its employment opportunities to the local community. Lastly, it can be seen that it is unfair for local community to deserve the abusement of their rights for their livelihood and welfare.

2.2. Ethical Literature on NNT’s Environment and Community Harassment and To Determine How The Ethical Aspects of The Problem Have Been Treated Elsewhere

Many companies found many problems in doing business in another country. There are some factors that may cause problems such as every country has different standards of living and has different expectations. The cross-cultural issues are not easy to resolve. That is why ethical standards of international business are needed here. It is proposed that every company conduct international business in an ethical way in order to uphold the ideals