BHP Billiton’s stakeholders

Luis Fabian Luna Begazo, Graded Practical #1 Tintaya, 19 of April 2022, 805 words.

1. Who are BHP Billiton’s stakeholders and what are their interests and objectives.

• Managers: Their main objective is the profitability and growth of the company in a sustainable way, this is evidenced by the level of training they have and the courses they took to understand the need to involve people with experience in community development techniques to improve relations with community members.
• Local and international NGOs: They aim to provide support to both parties and participate directly in the dialogue process in order to promote the well-being and development of the community.
• Affected communities: their main interest is to enforce their rights with the company and that it complies with delivering to the communities, lands equivalent to the number of territories that were expropriated by the state and acquired by the company, as well as technical assistance for the use of the lands.
• Employees of the company: their main interest is to develop professionally and obtain benefits that are proportional to their effort at work and also have a shared interest with the company, which is growth and continuous improvement.
• Government: its main objective is to ensure community interests and promote economic, social, and environmental growth and well-being.

1. What are the responsibilities that BHP Billiton has to these stakeholders and what risks do these responsibilities pose to the success of BHP’s operations?

• With managers: Provide them with training in which they can learn new skills and better practices of community development, effective methodologies of community dialogue and the negative impact that more poorly managed mining operations can have on impoverished communities, if this is not done it could affect the development of the company due to the inability of its managers to solve problems with the  community.
• With local and international NGOs: The company must encourage the implementation of programs and projects to improve relations with the community in addition to promoting the joint development of the company, its collaborators and nearby communities, if this is not met there may be problems for the development of the productive activities of the company due to protests from the communities and intervention of interest groups.
• With the community: The company must comply with providing support with the communities and their inhabitants by carrying out works that benefit them and if it is the case to comply with compensating the inhabitants for the damages that may have been caused at some point in addition to  ensuring environmental care, if this is not complied with the reaction of the inhabitants can cause economic damage to the company in addition to stopping its operations due to protests.
• With employees: The company must comply with providing them with a comfortable and adequate work environment, ensuring the safety and health of its employees, in addition to complying with granting payments, breaks and other benefits  in accordance with the law, in case this is not met problems may occur with the development of the company due to the low performance and high turnover of employees,  in addition to legal problems due to the breach of obligations that go according to labor law.
• With the government: The company has the responsibility to create good bases with the state in addition to fulfilling its obligations to it and ensuring that the development of the company will offer a mutual benefit, both to the community and to the other stakeholders, the risk of not creating good bases with the state is that it has to constantly intervene with sanctions and calls for attention that would directly affect the activities Productive.

1. What is the role of leadership in the case? Identify aspects of leadership that you can find and how these contribute to improved outcomes in the case.

The role of leadership is important for the success of the company and its continuous improvement, a clear example in the text is that of Lucio Rios, who shows a high leadership capacity, in addition to having a great experience in mining operations and constant training in issues related to safety, community relations, environmental remediation and sustainable development.

Leadership aspects:

• Empathy: this aspect helped to identify what the residents of the area wanted and what affected them, putting themselves in their place helped to make it easier to know how to act and that there were no problems with the implementation of works and thus reduce problems for the development of the company.
• Decision capacity: This aspect is clearly identified when the decision was made to exclude the government from the dialogue table, due to the high level of corruption that existed in it.
• Dialogue: It is evidenced in the implementation of a dialogue table to solve the problems that existed between the company and the community, with the dialogue it was possible to develop an agreement that allowed the relief of the conflicts that existed.

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