EPA is a multi-national coal mining company. Its mission statement explains that “EPA exists to make the maximum possible profit for its shareholders whilst causing the least damage to the environment. EPA will, at all times, be a good corporate citizen”. In 2017 EPA was granted a licence to mine for coal by the national government of Wakanda, a small country whose economy is mainly based on agriculture. The national government of Wakanda was very keen to develop its economy and saw coal mining as an important aspect of this. The area where EPA was granted the licence is very remote and has not towns or cities nearby. There are small villages near the site of the coal mine. One of the conditions of the licence is that EPA would employ local people wherever possible, which it was done. EPA is entitled under the terms of the licence to dispose of the waste from the coal mining wherever is convenient for it. The terms of the licence granted a payment by EPA to the national government of Wakanda which totalled US$50 million in 2019. This is a significant amount of foreign exchange for Wakanda’s economy. Similar levels of payment by EPA to the national government are likely to continue annually for the foreseeable future. The mine has operated profitable since it began.

Required:

a. Categorize, according to Mendelow’s matrix, any three of the stakeholder groups of EPA with respect to the decision about the disposal of the polluted water. You should explain what the power and interests of the three stakeholder groups are likely to be. 

b. Advise the management of EPA of the actions it should take to resolve the problem of its stakeholders’ competing objectives.

Answer rating: 100% (QA)

a Stakeholder Categorization using Mendelows Matrix Mendelows matrix categorizes stakeholders based on their power and level of interest in the organi... View the full answer