ELIZABETH ELVIENNA - 29118060

The Freeport Mine, Irian Jaya, GEMA RENDRAHADI - 29118194

Indonesia: “Tailings & Failings”— I MADE DEVANTARA - 29118149

Stakeholder Analysis SORAYA RIZKA K. - 29117527

SALLA SCHMOEKEL
 GROUP EXERCISE!

1. Who are Your stakeholders?

2. What are Your stakeholders’ stakes?
3. What opportunities and challenges do
Freeport Indonesia Your stakeholders present to the firm?
Mine Case 4. What economic, legal, ethical, and
philanthropic responsibilities does the
firm have to its stakeholders?
5. What strategies or actions should the firm
take to best address stakeholder
challenges and opportunities?
 1. Who Are Our Stakeholders?
Owners
- Freeport-McMoran (parent
company in America/FCX)
- RTZ
- RTM Shelter
- New Smelter (Mitsubishi
and Flour-Daniels)
- Government
- PT Indocopper Investima
- Public ownership
Community
- Local Amungme and Kamoro
tribes
Employees Governments Customers
- BoD of PT-FI - Indonesian Government - Business purchasers (ex:
- Bruce Marshall (begin Smelters in Spain, UK and
development of an Japan)
environmental
management organization
for Freeport)
- 13% of Amungme people
Competitors Social Activists Groups
- Newmont - Indonesian Environmental Forum (Wahli)
- Cloud Peak Energy - International Rivers Network
- Arch coal - NGOs at the Biodiversity Convention Conference
- Alpha Natural - Various American and Australian NGOs (Australian Council for
Resources Overseas Aid)
- Foresight Energy
 2. What Are Our Stakeholders’ Stake?
Stakeholders Legitimacy Power Urgency
Freeport McMoran Own 81.28% shares of FCX have the power to FCX need PT.FI to mining and
(FCX) FCX. (High) push PT.FI and stop the produce the mining product.
contract (High) (High)
RTZ Own 11.4% shares of FCX Invest up to $750 million They are shareholders, so PT FI
(Medium) to push Irian Jaya mine needs to payback the investment
expansion at least in a short period.(High)
producing 230.000
tons/day. (High)
Mitsubishi & Flour- Joint venture with PT FI. Build the 200,000 Raw materials from the mine are
Daniels (Medium) ton/year smelter in extracted in smelter. (High)
Java. (High)

Government Own 9.36% shares of Have power to impose PT FI have to obey the rule and
PT.FI.(Medium) PT.FI to follow the rule pay taxes. (High)
and pay taxes. (High)
PT Indocopper Own 9.36% shares of May take back the Payback the investment (High)
Investima PT.FI(Medium) investment (High)
 Stakeholders Legitimacy Power Urgency

Employees Labour welfare in order Employees may protest if Pay the salaries and
to maintain the their needs are not ensure their safety at
productivity(High) fulfilled (High) work.(High)
Customers Giving orders to the Move their orders to Fulfill their demand.
company. (High) another company. (High) (High)

Community (local tribe) Allow the company to run Their voices are heard by PT FI has to give back to
the business in their the International society.(High)
area. (High) community regarding
their rights.(Medium)
Competitor Doing their own business Acquire PT FI market Monitor competitors
that might threatens PT share (Low) performance (Medium)
FI. (Low)
Social Activists Group Speaks and defends Give criticism regarding PT F.I has to have more
social and environmental the sociocultural and concern to the issues
causes (Medium) environmental that are bring brought
issue.(Medium) up. (Medium)
GENERIC GROUPS
• Social Activists
• Community

SPECIFIC GROUPS
• Government
• Owners
• Competitors
• Employees
• Business Purchasers
 3. What Opportunities and Challenges
do Stakeholders Present?
Stakeholders Opportunities Challenges

OWNERS ● More capital Investment for the ● Owner may take back their
business. investment if the company can’t
satisfied their targets.
EMPLOYEES ● High work performance in order to ● Employees lack of motivation
achieve company’s goal. ● Employees safety at work
● Employees right must be fulfilled
GOVERNMENT ● Ease of business operation and ● Changes in government regulation
licensing. regarding the mining industry.
CUSTOMERS ● Profit maximization. ● Customers highly demand on ore
● Long-time business partners that must be fulfilled.
Stakeholders Opportunities
COMMUNITY ● Labour resources from the
community around.
● Maintain good relationship
with local tribes to ensure
the business continuity.
COMPETITORS ● Collaboration or joint
venture with competitors in
order to develop and
expand the company
operations.
SOCIAL ACTIVISTS GROUP ● Implement the triple
bottom line in the business
with help from the social
activists group.
Challenges
● Conflict with local tribes
regarding the natural
resource scarcity and
environmental damage
● Competing in the
proportion of market share
in mining industry.
● Being accused and critics
by the social activists
regarding the sociocultural
and environmental issues.
 4. Stakeholder/Responsibility Matrix
Stakeholders Economic Legal Ethical Philanthropic
Owners x x x
Customers x x x
Employees x x x x
Community x x x x
Government x x x
Social Activists x x x
Competitors x x
 5. What strategies or actions should the firm take to best address stakeholder
challenges and opportunities?

Stakeholder’s Potential of
HIGH Threat to Organization LOW
HIGH

● Government ● Customers
● Investors (FCX, RTZ, PT Indocopper) ● Employees
Cooperation to Organization
Stakeholder’s Potential for

Strategy : Collaborate Strategy: Involve

● Community (local tribes) ● Social Activists Group

● Competitors

Strategy: Defend Strategy: Monitor

LOW
THANK YOU