Thursday, January 22, 2009

BHP is morally bankrupt

When companies forget that business is for people and not the other way around, problems arise. When they start believing that people are there for the company to exploit, then problems arise. When the ‘Company’ or the ‘Shareholders’ become more important than the people employed, then problems arise.

It must never be forgotten that all organisations, repeat all, are at their core just service providers. BHP, for example, digs stuff out of the ground to sell (provide) to others who then process it and resell (provide) to others as they see fit. The entire process is orientated around human beings; the people who dig the stuff up, wash it, ship it, process it and resell it – only humans can do this (with the help of machinery of course) and BHP executives, managers and head office staff are also people and humans (I hope).

For a company the size of BHP – reputedly the world’s largest mining company – to suddenly close its Ravensthorpe nickel mine in Western Australia, with the loss of 1800 jobs is just not on. Particularly as until a few days ago BHP was encouraging its workers to move to the Ravensthorpe and Hopetown areas to buy or build houses there. BHP’s actions fail the two critical ethical questions: “Are you treating these people as you would like to be treated?” And: “If EVERYONE did as you (BHP) have just done would the world be a better place?” The answer would be a resounding NO! for both questions. BHP’s actions are unethical and unconscionable.

I am certain that BHP’s board of directors first thought was for the shareholders - must maintain share value and dividends to satisfy investors; nothing about the spin off effects that such a knee jerk and precipitate action will have on thousands of others innocent people. Can BHP or anyone put a dollar value on a person’s life? And it is a no-brainer to ask whether the senior executives of BHP are going to take a pay cut!! This is the really unpleasant face of Capitalism (with a capital C). Money comes first and we are now seeing in unforgiving detail what the big Australian is really made of – greed, hard-nosed businessmen (and women) following a plan to the letter, without compassion, without care, without the spirit of human kindness, just with eyes fixed firmly on the short term ‘bottom line’. Such a policy is morally sterile and bankrupt.

The impact that such a closure will have on the two small towns of Ravensthorpe and Hopetown will be devastating. Think also of the other treads that have been woven into the fabric of the area. The banks will have lent money to builders, home buyers, small business owners to grow in expectation, in line with BHP’s statements about the mine, for a prosperous future. Firms will have sold produce on credit in the belief that BHP can be trusted. To lead people on, in line with these expectations, only to suddenly dash their hopes, is not only unfair but, as I say, unethical.

If people come first BHP should certainly have played their cards differently. They could have sent everyone on leave, or they could have offered voluntary redundancy and kept the mine running at reduced capacity until some alternative strategy could be worked out. Unravel a thread in one area of life and there is no telling what the pattern will end up by being. BHP will certainly benefit financially, in the short term, by their actions but they are big enough to take a much broader, long term view of how the world will recover from its present financial malaise. This would at least give the ‘former’ employees some breathing space and some hope for the future.

Now BHP has set in motion a course of action with no means of knowing the final outcome. The law of cause and effect has not been revoked. It will follow its inevitable and implacable (and just) course to the end. It will not be stopped or impeded. BHP might not like the effect.

No comments: