Three ethical principles of the Global Business Standards Codex Essay
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Evaluate business conduct in the mining industry using three ethical principles of the Global Business Standards Codex.
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The business conduct in the mining industry is relatively poor because most of their activities violate the principles of the global business standards codex. Examples of these activities include using violence and the misuse of political power which violates the dignity and citizenship principle respectively. On the contrary, some businesses in the mining industry have proven to conduct business in conjunction with global standard codex.
Activities such as decision making to maximise profits by mining project managers could be perceived in favour of the fiduciary principle. This essay will evaluate the business conduct within the mining industry using the dignity, citizenship and fiduciary principle of the global business standard codex. Some mining companies hold no respect for the dignity of people in regards to their health and safety. This reflects poor business conduct as it infringes the dignity principle.
The Dignity Principle in the Global Business Standard codex promotes that companies should have protect all people in regards to their health and safety and disclose the use of child labour(Paine et al 2005). While human rights are important there are no internationally enforced laws (Siegel 2013).
It is evident that gold mining companies have taken advantage of this; by forcing the people living in the villages of Essakane in West Africa at gunpoint to leave their homes and lands for gold mining; and using children aged eight above to participate in mining labour (Siegel 2013). Mining companies should refrain from the use of child labour directly or indirectly, while compensation should be made to families who have lost their home. Using violence to force people out of people homes and using child labour violates dignity principle which clearly indicates poor business conduct in the mining industry. Mining Companies that operate globally have substantial wealth; a great influence upon government and politics (Northcott 2012). Using wealth to influence the government reproduces poor business conduct as it violates the citizenship principle. One of many key points in the citizenship principle is do not participate improper involvement in politics and government (Paine et al 2005).
A recognizable solution which acts in best interest for the community and workers is introducing government regulations (Campbell 2012). While this proves to be an effective possible solution, many mining corporations have empowerment over politics through wealth (Northcott 2012). Companies are able to purchase political power through funding elections of politicians; as a result there is minor chance for environmental regulations to be introduced (Northcott 2012). Mining companies should not use their wealth to gain influences among government to help sustain their businesses. The use of wealth to gain political power is a violation of the citizenship principle (Paine et al 2005). This shows an example of poor business conduct within the mining industry. On the contrary, it is also evident that some mining companies conduct their business in which reflects in a positive manner.
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