Looking at the different stakeholders involved in this case, The Tribes have the greatest priority and Xeon Has the laegest interest in the project, Why is that?

RESOLVING ETHICAL BUSINESS CHALLENGES Demarco soon discovered he was one of several lation that Xeon wanted to extract the niobium from Demarco just graduated from Texas University and had key decision makers and our business depends upon being been snatched up by Xeon Natural Resources Incorpo- able to mine niobium. We've got to continue this project" rated, one of the top natural resource extraction com- Demarco returned to the camp. The other special panies in the world. Because he was Brazilian, bilingual, ists questioned him about Barbara's reaction. As he spoke, and spoke several specific Brazilian dialects, his station some of the specialists became concerned about their jobs ing in Brazil was a no-brainer Xeon was deeply involved A few admitted they heard the local and national media with a project within the Brazilian rain forests in mining were raising awareness about the negative impact mining an extremely valuable element called niobium. Niobium this mineral could have on the indigenous populations is a rare earth element essential for micro alloying steel A few days later, Demarco heard that some of the as well as other products such as jet engines, rocket sub- tribal leaders had new concerns about the project and were assemblies, superconducting magnets, and super alloys. organizing meetings to obtain feedback from members. Brazil accounts for 92 percent of all niobium mined, and Demarco approached one of the mining specialists that Xeon Natural mines much of the element in Brazil. Xeon studied the potential impact of strip mining the land. The discovered a large niobium deposit, and estimates the specialist said that while he understood stakeholder inter corporation could make an additional $5 billion in prof-ests, he felt the extraction methods Xeon used were environ- its over the next two decades. mentally friendly. While creating a temporary disruption in the ecosystem of the rainforest, Xeon's strip mining meth- employees assigned to explain to the indigenous popu- ods provided an opportunity for restoration. In fact, strip mining that was done in the United States before there were the lands given to the tribes by the Brazilian govern- any regulations provides a good example of how the forest ment. The land was, by decree, compensation for native can recover and grow back to its original condition minorities. Having spent several months with various Demarco knew despite the potential benefits, there tribes, Demarco learned they were communities that had would still likely be opposition from the tribal community not been altered by western culture. It was obvious to Additionally, no method of strip mining is entirely environ- Demarco if Xeon began strip mining the area, thousands mentally friendly. Demarco realized even with restoration of outsiders would be brought in and would impact the the lives of the indigenous tribes would be forever altered. cultural heritage of the indigenous populations Demarco was to meet with tribal elders the next day Demarco discussed this with his boss, Barbara. "Yes, to discuss their concerns. He understood that whatever I understand all you are saying, and I agree this will the decision, it would negatively impact some stakehold- change their lives as well as their children and grand- ers. On the one hand, the tribal members might compro- children's lives." Barbara said. "But think of it this way. mise their traditional way of life and the environment their standard of living will be greatly enhanced. Schools would be harmed if the strip mining project began. will be built, hospitals will be available, and there will be On the other hand, Xeon's future and the future of its more employment opportunities." employees depended upon being able to mine the nio- Demarco responded, "While the tribal leaders want bium. It could also benefit the tribes economically. He a better life for their people. I feel they are being steam was not sure what he should tell the tribal leaders. rolled into accepting something they don't understand. I've talked to some of the tribal leaders, and I am positive QUESTIONS | EXERCISES they have no idea of the impact this will have on their culture. We have many stakeholders involved in this 1. How should Demarco approach this issue when he decision, including Xeon's employees, the tribes, the Bra- meets with the tribal leaders? zilian government, and even communities beyond the 2. What should be the priorities in balancing the vari- tribal lands. I think we need to reevaluate the impact on ous stakeholder interests? all of these stakeholders before proceeding." 3. Can the CEO and board of directors of Xeon continue Barbara sighed. "I think you make some good points. operations and maintain a stakeholder orientation? and I am concerned about these different stakeholders. But This case is strictly hypothetical any resemblance to real persons you should understand we already have buy-in from the companies or situation is concidental