Professor Elam

Monday Sept 14 2020

We study corporate governance in ACCT 5308 Ethics. Here is an example of governance gone awry.

The mining company has long apologized for the destruction of the rockshelters at the Juukan Gorge in the Pilbara region of Western Australia, saying that it should have never happened. The blasts of the caves went ahead on May 24 despite a multi-year battle by the local Aboriginal owners of the land, the Puutu Kunti Kurrama and Pinikura people, to save the site.

“What happened at Juukan was wrong and we are determined to ensure that the destruction of a heritage site of such exceptional archaeological and cultural significance never occurs again at a Rio Tinto operation,” Rio Tinto chairman Simon Thompson said. “We are also determined to regain the trust of the Puutu Kunti Kurrama and Pinikura people and other traditional owners. We have listened to our stakeholders’ concerns that a lack of individual accountability undermines the group’s ability to rebuild that trust and to move forward to implement the changes identified in the Board Review.”

Now let's re think this

Instead of getting into a protracted fight with the Aborigines,  why not build a center there describing the historic significance?

Or how about sponsoring a show on the History Channel featuring Rio Tinto working in concert with local groups to preserve their heritage? 

What on earth was management thinking, not much I would say.