MGT301A: Ethics and Sustainability
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MGT301A: Ethics and Sustainability
Assessment 2/Part A: Individual Report
Student name and ID:
Yamile Villacorta – A00040653
Lecturer:
Nirosaha Gunasekera
Torrens university- 2022
Yamile Villacorta 2022 1
MGT301A: Ethics and Sustainability
Introduction
This report will discuss ethical issues faced by two different companies operating
in different industries.
The first case is related to one of Australia’s largest construction companies, CIMIC,
which has been charged with underpaying hundreds of workers, subcontractors and
banks in its operations in the Middle East. The amount at issue is more than $500
million in an administrative scandal that could lead to criminal proceedings.
The second issue concerns Adani Group, a mining company that is facing the
biggest environmental problems in Australia today.
CIMIC, Wage theft in Middle East
Over the past few years, many Australian employers have been addressing the
problem of under-compensation and unfair treatment of their employees (Guthrie,
2002).
Wage theft is defined as intentional and dishonest behaviour. CIMIC was targeted
by a class-action led by its ex-workers regarding wage theft. Its staff were
underpaid for several years and was not applying penalty rates and overtime rates
as per law (Ferguson, 2022).
“CIMIC announced a $1.8 billion write-down of its joint venture operations in the
Middle East, BIC Contracting (BICC), and its withdrawal from the region. A year
later, its representatives declared the sale of BICC for a “nominal” sum to a local
company called SALD. Documents reveal that the sale price was 1 dirham (37c)
along with a promise by CIMIC to inject $US130 million ($179 million) into the BICC
business.” (Australian broadcasting corporation, 2022).
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MGT301A: Ethics and Sustainability
Ethical framework and justification
The ethical framework for organisations that treat employees fairly and comply
with the law is the justice approach.
Justice and fairness are two common expressions that are used interchangeably
today. Giving each person what they deserve, or, in more conventional terms, what
theirs is rightfully, is what justice implies. However, there have been some more
diverse interpretations of the two concepts. Although justice is normally
associated with a standard of righteousness, fairness is often associated with the
ability to judge regardless of one’s feelings or interests (Velasquez et. al,1992). By
underpaying and not treating its employees fairly, CIMIC has caused financial
distress too many people and committing a serious crime.
Adani Group, Harm to Australian biodiversity
The second problem exposed in this report is an environmental scandal involving
the Adani Group, an Indian firm run by Gautam Adani. The organisation is looking
to operate a big coal mine in northeastern Australia and the government of
Queensland state supports this decision. This project is termed Carmichael mine.
The opening of this firm helps the fossil fuel industry to grow and develop but
would destroy 1600-mile-long great barrier reefs. The Australian politicians are
willing to sacrifice one of the great wonders in return that the project will help
provide jobs and income (Goodell & Goodell, 2020).
Upon approval of the project, it outraged the residents of the Great Reef area in
Queensland, as it would cause enormous harm to the global environment. The
concerns are that the project’s operations would destroy ancestral lands, the
waters without the owners’ consent. 270litres of Queensland underground water
would be under the administration of the Adani Group for over 60 years, and 4.6
billion tonnes of carbon pollution would be released into the atmosphere. Most
detrimentally, the Great Barrier Reef might no longer be a wonder of the world
(“Stop Adani”, 2020).
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MGT301A: Ethics and Sustainability
Ethical framework and justification
The proper ethical framework for this matter is the utilitarian approach (Capsim,
2020). This would make it possible to balance the positive and negative aspects of
the project, since it offers employment opportunities for neighbours, but also
affects the environment and exploits the resources of the region. The solution
using the utilitarian approach is that the company may negotiate with the
government to reduce its operations at a medium scale. It means limiting the
resources they can exploit per year. Providing jobs for people as well as not
adversely affecting the environment would be significant benefits of the
enterprise’s activity.
Conclusions
According to the exposed above, prompt actions may prevent all damages suffered
by people. Regarding that it is possible to conclude the following:
• CIMIC should consider the justice approach and take further action to fairly
compensate its construction employees. As they are the major assets and
revenue of their business, if they are happy, social conflicts will be avoided.
• Adani company should apply the utilitarian approach to reduce the impacts
of its operations. This would benefit both the business and the community
that lives near the mine area.
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MGT301A: Ethics and Sustainability
References
Capsim. (2018). Five Ways To Shape Ethical Decisions: Common Good Approach –
Retrieved 1 April 2020, from https://www.capsim.com/blog/five-ways-shapeethical-decisions-common-good-approach/
Goodell, J., & Goodell, J. (2020). The World’s Most Insane Energy Project Moves
Ahead. Retrieved 29 March 2020, from https://www.rollingstone.com/politics/
politics-news/adani-mine-australia-climate-change-848315/
Guthrie, R. (2002). Negotiation, power in conciliation, and review of compensation
claims. Law & Policy, 24(3), 229-268.
Stop Adani. (2020). Retrieved 28 March 2020, from https://www.stopadani.com/
why_stop_adani
Ferguson, A. (2022, March 2). ‘Humanitarian disaster’: Australian construction
giant CIMIC in underpayment scandal. The Sydney Morning Herald. https://
www.smh.com.au/business/companies/humanitarian-disaster-australianconstruction-giant-cimic-in-underpayment-scandal-20220301-p5a0kv.html
Velasquez, M., Andre, C. , Shanks, T. & Meyer, M. (1992). Justice and Fairness.
Ethics, 5(1). https://www.scu.edu/ethics/ethics-resources/ethical-decisionmaking/the-com mon-good/
‘Humanitarian disaster’: Hundreds left in limbo by Australia’s biggest construction
company. (2022, March 3). ABC (Australian Broadcasting Corporation). https://
www.abc.net.au/news/2022-03-03/cimic-accused-of-not-paying-foreign-workersin-middle-east/100875050
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