The Freeport Mine, Irian Jaya, Indonesia: "Tailings & Failings" - Stakeholder Analysis
The Freeport Mine, Irian Jaya, Indonesia: "Tailings & Failings" - Stakeholder Analysis
The Freeport Mine, Irian Jaya, Indonesia: "Tailings & Failings" - Stakeholder Analysis
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 Challenges
SOCIAL ACTIVISTS GROUP ● Implement the triple ● Being accused and critics
bottom line in the business by the social activists
with help from the social regarding the sociocultural
activists group. 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