Question
YOU have graduated from Deakin with a Bachelor of Commerce and started work with a large mining company with operations around the world. After your
YOU have graduated from Deakin with a Bachelor of Commerce and started work with a large mining company with operations around the world. After your graduate rotation, you are posted to one of the companys South American subsidiaries, which has a major mining operation. Your task is to prepare a monthly report to the head office which includes financial results and a report on major events.
Economic conditions are difficult forcing head office to announce a freeze on employment and budgets. You feel fortunate to have a great job. You have read reports of recent graduates having difficulty finding jobs.
Your subsidiary is forced to cut budgets in some divisions to accommodate cost increases elsewhere. Recently some safety inspectors have left the company. To save costs, new inspectors are not recruited. A few months later there is an accident in the mine. Twelve employees are hurt and one is killed, leaving behind a wife and three young children. Company policy is that an Executive from Head Office must conduct an independent enquiry whenever an employee is killed on the job. The Head of Occupational Health and Safety at your subsidiary is very concerned he will be held responsible for the accident and the employees death.
The companys insurers will pay $1 million to the employees family in the event of their death. When an employee suffers a major injury (Total and Permanent Disablement) the insurance company will pay $500,000.
The wife of the OH&S Manager is the cousin of the subsidiarys Managing Director. The MD, OH&S Manager, Mining Operations Manager, and Finance Manager are the senior executives of the subsidiary. One of their duties is to consider your report before it is sent to Head Office. Following the Executive Meeting after the accident, the Finance Manager instructs you to change your report. She directs you to remove the reference to 12 injured employees and a single death, and replace it with eight employees were injured, with seven suffering minor injuries and one suffering total and permanent disablement. The Finance Manager tells you that the insurance company has agreed to this, and instructs you to write a single insurance payout of $500,000 will be made to the family of the permanently disabled employee. She says, once youve made the changes you can send the report. I dont need to see it again.
Youve recently read the companys Integrated Report, in which the Chief Executive Officer and Chairman of the Board have written that the company considers itself a global mining industry leader. Your site and subsidiary were featured as examples. As you wonder how to respond to the situation you come across a documentary by a leading journalist about uncovering white collar crime.
Use EITHER AAA Decision-Making Model OR Baird Decision-Making Model to reach and justify a responsible ethical judgement in terms of what you ought to do in this situation.
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