Section 1

Ethics is a set of moral principles and it is concerned with the wellbeing of individuals and

society. Ethics in business supply a fundamental instruction that businesses can follow to gain

approval of the public. The set of moral principles which define ethics are not same throughout

the globe. According to the theory of ethical relativism, the concept of right and wrong is

relative to the norms and values of a culture. An action or behavior contemplated right in a

culture may be contemplated wrong in a different culture, which means it is impractical to

develop a universal set of ethical standards. There will always be conflicts in developing a

universal set of ethical standards because of the moral diversity among different cultures. A

good example is, Google in China, Google assented to supply the filtered information to people

of China violating its own policy. This is not the first time that Google has violated its own

policy, in order to stay in market by complying to local policies. If Google had not complied to

the China’s censorship laws and regulations it would have caused an absolute exit of Google

from the colossal market of China.

Section 2

Corporations have no right to influence ethics in the countries they are operating. The need to

influence ethics rises due to conflict between corporations’ code of conduct and local standards.

In a situation like this, it is ethical that the corporations abide by the local code of conduct even if

they have to breach some of their policies. According to Donaldson, “an organization should

always endorse the fundamental human values, and should have its own collective values and a

constitution of conduct that are set up to ensure the success of an organization internationally and

become a word-wide business ethical leader “(1996, pp. 88-62). So, a corporation has to

reconsider its ethical standards before it starts operating in a foreign environment to avoid
conflicts. For instance, in Japan exchange of gifts is in accordance with Japanese culture but in

other portions of the world it is considered bribery, so If a company wants to be successful in

Japan it has to permit this custom (Donaldson, 1996)

Section 3

Introduction:

The Ajax project is located in British Colombia, Canada. The project consists of constructing an

open-pit gold and copper mine. The project is presently in the stage of planning and

investigation. According to the website of KGHM, in 2012 KGHM became the owner of 80% of

the shares in the project and the present concept calculates to produce 53,000 tons of copper and

114,000 ounces of gold in 19 years of expected life span. The construction phase of the project is

estimated to be 3 years. The Ministry of Energy of Canada in 2017 decided against the granting

of environmental assessment certificate for the project.

Listed below is the strategic goal of KGHM’s corporate social responsibility related to Ajax

Project:

 Initiating co-operation with local and regional communities and internal stakeholders.

The project is devoted to supply and bear different social and community biased welfares

in Kamloops. The project is also going to support the local education and training

 Conserving the position as a responsible employer by contributing to local employment.

According to Joint Federal Comprehensive Study/Provisional Assessment Report, direct

 earnings in Kamloops during the construction stage are calculated to range from $183

million to $242 million and the earnings during the operational stage are estimated to be

$53 million annually

 Reinforcing the position as a reliable and concrete business partner

 Investing in the community, the Ajax project has promised a community benefit

accordance with Kamloops which will cover the use of local services like waste

management, road maintenance, emergency services etc.

The Ajax mine project has many economical benefits but there are some ethical issues that need

to be addressed. These issues are CSR of the KGHM Ajax Mining Inc. (KAM) which are of

concern but are neglected and remain unresolved are listed below:

 The mine being an open-pit is one of the reasons that various groups of people are

against it. Open-pit mines are notorious for their ability to pollute the air and water by

unleashing noxious compounds. According to a survey of 150 doctors, 70% stated that

they would move to work in different cities due to the suggested construction of mine

while 84% of doctors are concerned about the health issues of local due to the Ajax mine

project(Plausins,2012).

 Location of the mine is a tourist spot. The construction of the Ajax mine will adversely

affect the tourism feature of Kamloops.

 The consequences of Ajax project on the health of the local people. The construction of

mine is in the close vicinity of a residential areas due to which there are many health-

related concerns. According to Plausins 2012, Many respiratory illnesses such as asthma

etc. can be triggered by the metal alloys in the air and water.
  The Environmental assessment of the Ajax mine reflects large number of negative

effects on the quality of both ground and surface water. The whole eco system of the site

is under jeopardy. The Ajax project is predicted to discharge 82 kt CO2eq/year during

the construction stage and 123 kt CO2eq/year during the operational stage

(Environmental Impact statement, 2015). According to EIS 2015, due to the proposed

construction of Ajax mine, the Peterson Creek, Jacko Lake, Goose lake and Kamloops

lake will have direct fish habitat loss

 The decrease in value of the land in proximity of the mine, loss of connection with the

land sacred to the indigenous people and adverse effects on agricultural water and land

Below is the list of stockholders that influence or are influenced by these issues.

 Shareholders of KGHM International, 80% share owned by KGHM Polska Miedz S.A.

 Employees of KGHM International

 Local suppliers during the construction and operation phase

 Local government, government of city of Kamloops and provisional government of BC

 Residents of Kamloops

 Local environment protection NGOs for example KAPA

Section 2

Rationale

Different ethical issues and Corporate social responsibilities associated with Ajax mine project

can be distinguished and examined by all of the three ethical reasoning methods (Utility, rights

and justice).

The method of Utility ethical reasoning can be dated back to the ancient Greek rationalist

Epicurus of Samos(341-270BC), and the concept of utility reasoning is that actions or behaviors

that encourage contentment or pleasure are good and actions or behaviors that encourages

discontentment or pain are bad. Utility ethical reasoning is extensively accepted way to deal with

ethical problems that influence substantial group of individuals. This method emphasizes on the

all-inclusive good that a project is reflecting or the comparison of costs and benefits of the

project. While analyzing the Ajax project using this method the decision will be totally based

on the wellbeing of the local community. In case of Ajax project, several stake holders have

specified that the cost of the project is less than the benefits of the project in long term. The

economic benefits of the project are attractive but the adverse effects on the environment are

alarming and health issues related to these adverse effects are vicious. According to the Ajax

Mine project report on final assessment by Environmental Assessment Office (OAC) 2017:

Access to conventional or customary food utilization will be reduced due to loss of harvesting

land and loss of connection with areas with key importance to the locals.

The proposed construction of Ajax mine would result in the contamination of both surface and

ground water which will affect human, animals and plants.

According to the report of EAO 2017, construction of Ajax will cause the loss of grassland and

wetlands within the premises of the mine which supply a domain for rare plants and animal

species affecting wildlife and vegetation.

There will be expansion in health care because of the immense increase in air, water and noise

pollution.

The migration of birds will be adversely affected due to the contamination of the environment.

The thorough analysis of EAO report and from the local communities’ point of view, it can

easily be concluded that the cost of Ajax mine is higher than the benefits delivered.

The Rights approach concentrates on respect human integrity and dignity. According to this

approach our integrity and dignity is established on our capability to choose explicitly how we

live our lives and that we have a moral right to appreciate our choices as free and equal.

According to the report of EAO 2017, the Ajax mine would result in air, water and noise

pollution which will affect the residents living in the near by area to the mine which is depriving

them of the right to live in a healthy environment. The Ajax project will also deprive farmers

from their right to have gazing lands for their livelihood and clean natural resources which are

necessary for their livelihood. The indigenous people of the Kamloops will be deprived of their

rights to fishing, hunting and access to a specific sacred place. Using this approach, it is clearly

visible that there are many factors which concludes that the Ajax mine project adversely affects

numerous rights of local people.

The justice approach of ethical reasoning can be dated back to the Greek philosopher Aristotle

which says that all humans should be treated alike irrespective to their race, culture and sex. The

moral rights of every person are to be respected. When considering the justice approach for the
Ajax mine, the people of Kamloops will be treated with injustice because most of the profit from

the Ajax mine will be go to Poland instead of British Colombia. Despite suffering from

hazardous consequences of the Ajax mine they are not getting their fair share of the profit.

In my opinion, the utility approach of ethical reasoning is most appropriate approach that can be

used to evaluate the ethics of these issues. The utility approach takes into consideration the cost

and ultimate benefits of the project and evaluate them resulting in a definite outcome either

positive or negative depending upon the cost and benefits. It has a concrete aspect of solemnity

and ethical elements.

Section 3

Impacts on my family

if I was a resident of Kamloops city, the Ajax mine project would definitely impact me and my

family just like rest of the residents. Serious health issues can be caused due to the emission of

greenhouse gases and contamination of water with toxic compounds. The eco system of the

region will be disturbed which will impact my family. Mental health problems can arise from the

noise pollution. If I living in a tourism depended area of the city this will affect me

economically. The quality of surface and ground water will be reduced due to the contamination

which will deprive me of clean drinking water. The recreational activities like fishing and

hunting will be directly impacted by the project. The negative effects of the proposed project will

also reflect on ranching, use of agricultural water and entry to gazing lands which will affect

cattle ranching which is a main agricultural occupation of the region thus affecting me and my

family economically. The proposed project will also affect the socio-economic aspects of the

city. Higher employment rates and business opportunities will be provided by the project which
will benefit the resident of Kamloops. The project has agreed on giving annual funds to the area

with the intention to bring prosperity to the region by arranging social gatherings and investing

in education. Various networks for roads will be constructed for the accessibility and mobility of

the residents of the city. There is going to be a decrease in the values of lands in the close

vicinity of the mine. Living in a place with air, water and noise pollution and vibrations from the

blasting at the site will ultimately create mental and health issues. The land that the Ajax mine

project will use has traditional importance and spiritual links among the indigenous people of the

region causing stress in the society which will adversely affect the social life of the region.

Section 4

Impact on my Community

Accessing the effect of this mining project on the community is not that simple as many complex

economic and environmental variables are involved in this process. The metallic dust laden air

and the contaminated water will affect every aspect of the community life. The pollution caused

by the mine will cause an increment in the health-related issues in the community; this will

eventually result in the overall medical expenditure of the community. This will not only affect

the humans but it will adversely affect the livestock owned by the community. This

environmental pollution will have a permanent detrimental effect on the ginseng industry of the

area requires a good environment.

The Kamloops city is known for its beautiful landscapes and the People of Kamloops are mostly

associated with agriculture or tourism industry. As the mining project will contaminate the water

resolves of the area with toxic number of chemical compounds, this will affect the agriculture of

the area. Jacko Lake-one of the best fly-fishing lakes in B.C is one of the major tourism
attractions of this area which will be destroyed in during the initial construction phases of the

project. It will also put an end on the fishing activities those used to take place at Jacko Lake.

The beautiful green and wet lands around the Jacko Lake that sustain around 1000 heads of cattle

will also be destroyed due to this mining project. Area surrounding the Jacko Lake is considered

holy by the first Nation communities of Kamloops (Tk’emlups and Skeetchestn Indian bands), if

the mining project starts these people will lose their sacred places. This will affect the whole

community.

The value of the property in Kamloops will decrease which will affect the property owners

financially. This decrease in the property value will also result in the reduction of property tax

collection of Kamloops. Movement of heavy traffic due to the mining project will affect the

roads of the area. This effect on the public infrastructure such as roads will affect the tax payer’s

pocket.

The only major positive effect of the mining project on the people of Kamloops will be the

employment opportunities created directly or indirectly by the mine. So, the residents of

Kamloops won’t have to travel far from home in order to get access to employment

opportunities. Eventually this mine would affect the economy of this whole town. With the

passage of time there will be changes to the social and economic fabric in the community, the

people would be associated with this mine one way or the other as all the other economic

activities would be overshadowed by this project. Economists estimate about 25 to 35 per cent of

the project’s spending will flow though businesses in the Kamloops area, up to $105 million

annually during operation.

Section 5

Impacts on my country

Kamloops is a small city in British Columbia, Canada. Some environmental issues in a small city

of a large country due to a mining project would not matter in other countries but in Canada

whose repute on environment is friendly and grasps high ethical standards, it will become visible

on national and international level because it is dealing with a community that absolutely

depends on its organic environment. If the project gets approved and the ethical issues and CSR

related to this project become real problems, the country’s environmental and business

regulatory standards will be sabotaged and a serious decline in foreign investments from

companies that hold high environmental and ethical standards, may occur and will also

jeopardize the tourism aspect of Canada. On the other hand, if the KAM turns out to be socially

and environmentally responsible and conquest in managing environmental and ethical dilemmas

then the project will prove itself to be a triumph for the country.
Bibliography:

1) https://www.amazon.com/Positivist-Organization-Theory-Donaldson-1996-10-
14/dp/B01F82C3RM

2) http://publications.gc.ca/site/eng/9.840680/publication.html

3) https://www.ceaa-acee.gc.ca/050/documents/p62225/121687E.pdf