Vedantaor

Vedअं�त

Business Ethics Presentation

by

Abhinav Vohra11BM60007

Garima11BM60037

Deepika Ahuja11BM60101

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Vedअं�तContents

About Vedanta

Our Objectives

Ethical Issues and Violations

Our Observations

What Vedanta has done so Far?

Our Recommendations

References

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About Vedanta

A global diversified metals  and mining companyFounded by Anil Aggarwal in Mumbai in 1976Is the largest mining and non-ferrous metals company in IndiaAlso has mining operations in Australia and ZambiaMain Products are copper, zinc, aluminium, lead and iron ore

Subsidiaries:- Sterlite Industries (India) Ltd, Hindustan Zinc Limited, Bharat Aluminium Company Ltd, Vedanta Aluminium Ltd., Madras Aluminium Company Ltd., Sesa Goa Limited:

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Our ObjectiveBelieves in sustainable development and is committed to effective management of health, safety, environment and community development as an integral part of their business.Have also won awards (including the Golden Peacock award) for setting high standards in waste management

Allegations of polluting the environment in Lanjigarh Allegations also involved violating the human and legal rights.

Objective is to identify and evaluate the hidden truth behind these allegations. To study the ethical issues, their impact and analyze them with the Business Ethics theories learnt in class.

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Ethical Issues and Violations

Unsafe mining operations leading to more than 1,500 injuries and 100 deaths.Arbitrary detention of Adivasi activists and intimidation

Fabricating charges against protesting villagers in LanjigarhLeading the people of those who sold their lands for the refinery to a loss of livelihood.

Misusing the concept of sustainable development to ignore human rights abuses

Unauthorized encroachment on private farmland

Catastrophic risks posed by the refinery’s red mud ponds (highly toxic alkaline chemicals and heavy metals including radioactive elements ) not addressed. Violation of the right to participation in decision-making on projects affecting their community and traditional lands.

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Ethical Issues and Violations

Violation of the Panchayats (Extension to Scheduled Areas) Act, 1996 (PESA), under which prior consultation with the elected village council bodies of the Dongria Kondh community is mandatory before any plans for development are implemented. It has also wrongfully assumed that it knows better than the natives.

Violation of the Forest Rights Act, 2006 (FRA), under which the claims of Dongria Kondh and other marginalized communities over their traditional forest lands and habitats in the Niyamgiri hills not being recognized.

Creating additional refining facilities without consent. (By August 2010 Vedanta had completed more than half the expansion work without having first obtained necessary environmental clearance from the MoEF.)

Violation of the Forest Conservation Act, 1980 (regulating forest clearances) and 1986 Environment (Protection) Act (governing environmental clearances).

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Vedअं�तOur Observations

Normative Stakeholder Theory

1. Unsafe mining operations leading to a huge number of deaths2. Red mud ponds risks 3. Violation of the right to participation in decision-making on projects affecting their community and traditional lands4. Violation of the Forest Conservation Act, 1980 and Forest Rights Act, 2006 (FRA), under which the claims of Dongria Kondh and other marginalized communities over their traditional forest lands and habitats in the Niyamgiri hills need to be recognized and settled in the form of grant of community titles to lands they use.

Act Utilitarianism Theory (Consequentialist)

1. Unsafe mining operations leading to a huge number of deaths2. Unauthorised encroachment on to private farmland.3. Additional refining facilities without consent (Violation by MoEF).

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Vedअं�तOur Observations

Rule Utilitarianism Theory (Consequentialist)

1. Arbitrary detention of Adivasi activists and intimidation. 2. The loss of livelihoods of those who sold their lands. 3. Misusing the concept of sustainable development to ignore human rights abuses.

Kant’s Ethics of Duty (Non Consequentialist)

1. Unsafe mining operations leading to a huge number of deaths. 2. The loss of livelihoods of those who sold their lands for the refinery. 3. Violation of the right to participation in decision-making on projects affecting their community and traditional lands. 4. Violation of the Forest Conservation Act, 1980 and Forest Rights Act, 2006 (FRA), under which the claims of Dongria Kondh and other marginalised communities over their traditional forest lands and habitats in the Niyamgiri hills need to be recognised and settled in the form of grant of community titles to lands they use. 5. Violation of the Panchayats (Extension to Scheduled Areas) Act, 1996 (PESA), under which prior consultation with the elected village council bodies of the Dongria Kondh community is mandatory before any plans for development are implemented.

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Vedअं�तOur Observations

Ethics of Justice

1. Arbitrary detention of Adivasi activists and intimidation2. Fabricating charges against protesting villagers in Lanjigarh 3. The loss of livelihoods of those who sold their lands for the refinery 4. Red mud ponds risks.

Ethics of Care 1. Instances of Vedanta’s unauthorised encroachment on to private farmland. 2. Unsafe mining operations leading to more than 1,500 injuries and 100 deaths. 3. Misusing the concept of sustainable development to ignore human rights abuses.4. Red mud ponds risks. 5. Additional refining facilities without consent (Violation by MoEF).

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What Vedanta has done so far?

Created significant livelihood opportunities around the plant.Developed community programmes that target the key concerns of the natives such as health, education, empowerment of women and basic.

Created PR Campaigns to promote Vedanta’s positive image.

Addressing the UK-based independent consulting agency URS Scott Wilson’s observations of the sustainability performance of the alumina refinery and its associated operations.

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Vedअं�तRecommendations

Give a public commitment to not go ahead with the plans for the mine and refinery’sexpansion until all existing problems are addressed (including assessments ofthe human rights implications of the proposed projects). Adopt leading international industry methods for managing the environmental impacts ofbauxite mining and alumina refining.

Ensure that any displacement or land loss is fully compensated, regardless of formal landownership.

Complete baseline socio-economic surveys to understand who will be affected.

Make a clear commitment to respect the right to free, prior and informed consent ofIndigenous Peoples.Put in place policies and process to ensure that all affected individuals have timely access tofull information about projects that may affect them.Implement proper pollution control measures.

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Vedअं�तRecommendations

Put in place policies and process to ensure that all affected individuals have timely access tofull information about projects that may affect them.

Express concern to Vedanta about the actual and potential impacts of its operations affecting human rights and call on the company to implement the recommendations.

Call for a suspension of all plans to mine or expand the refinery until the human rights issuesare properly addressed

Ask Vedanta to report regularly on its progress to address the environmental and human rightsconcerns surrounding its operations in Orissa.

Develop an engagement and escalation strategy that will bring about changes in Vedanta’sconduct, including effective forms of pressure and sanctions.

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Vedअं�तReferencesTippet Louise[2012]. Two years on: Review of progress by Vedanta Resources on EIRIS’ ESG recommendations

The Lanjigarh’s Development Story: Vedanta’s Perspective

Generalisations, omissions, assumptions :The failings of Vedanta’s Environmental ImpactAssessments for its bauxite mine and aluminam refinery in India’s state of OrissaPublished by Amnesty International UK, 2011.

VEDANTA RESOURCES plc COUNTER REPORT :Ravages through India , 2005Vedanta’s Perspective Uncovered :Policies Cannot Mask the Practices , Published by Amnesty International UK, 2012

Heffa Schucking,urgewald [2008]. Briefing on Vedanta and Niyamgiri Hills Report