Case Name :      Mining and Corporate Social Responsibility: Newmont Mining Corporation

Authors :           Sheila M. Puffer, David T.A. Wesley

Source :             Ivey Publishing

Case ID :            W12765

Discipline :        General Management

Case Length :    12 pages

Solution Sample availability : YES

Plagiarism : NO (100% Original work)

The case takes place in Peru in the aftermath of the worst mercury spill in history by a transportation contractor for Newmont Mining Corporation. Newmont’s senior vice president and chief administrative officer is sent to Peru to assess the situation. The subsequent audit revealed that Newmont’s mining operations in Peru met neither U.S. nor Peruvian mining standards. “There were water issues, there were air issues, there were road issues, there were health issues – all arising out of the mining operation,” the report concluded. The investigation also found that Newmont executives could be subject to “criminal prosecution and imprisonment” for the company’s actions in Peru. More importantly, the company had violated its “social license” with local communities, putting in jeopardy its ability to conduct business in that country.