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Corporate Citizenship in Mining Projects: The Case of the Ambatovy Project in Madagascar

Case 9 100 2016 001
Case published in the International Journal of Case Studies in Management, Vol. 14, No. 1
Languages : 
  • English
Keywords: 
  • Collaboration,
  • Corporate Social Responsibility,
  • Mining,
  • Stakeholders
Year of production : 
2015
Registration date : 
25 February 2016
Teaching notes included : 
Yes
Abstract

This case looks at the Ambatovy mining project in Madagascar, which involves exploring and exploiting a giant nickel and cobalt mine near Moramanga, on Madagascar’s east coast. The project could bring important economic and social development to Madagascar, one of the poorest countries in the world but requires a high level of commitment to environmental protection along with the support of local communities. The company is developing programs to compensate for its ecological footprint and to achieve the goal of “no net loss” of biodiversity. The case gives a history of the project, the main actions taken, and the results delivered by the company while attempting to engage in “sustainable exploration and exploitation” and to be a “responsible” corporate citizen. The company’s perspective of the social, economic, and environmental issues surrounding the project is compared with that of two other stakeholders: the government and local communities.

Primary domain : 
Business ethics  - Corporate social responsibility
Secondary domain : 
Not available
Sectors : 
  • Energy and raw materials
Source : 
HEC Montréal
Type : 
Traditional case (Descriptive or analytical case)
Type of data used in the production of the case : 
Factual data that is not public wherein the identity of the company/person is disclosed
Event location : 
Madagascar
Year of start of the event : 
2015
Year the event ended : 
2015
Business size : 
Variable
Main themes covered
  • Corporate social responsibility
  • Building collaboration in mining in the context of a developing country
Teaching objectives

This case aims to familiarize students with the key economic, social, and environmental issues associated with large-scale mining projects in developing countries.

 

It has two main teaching objectives:

  1. to understand the concept of corporate citizenship from a conventional view (as a set of managerial CSR programs and practices) and its potential application in the mining industry and
  2. to challenge this conventional view by examining issues related to mining industry projects from the perspective of different stakeholder groups.
Concepts and theories related to the case
  • Corporate social responsibility (the roles of corporations in developing countries);
  • The paradox of development and preservation;
  • Building collaboration between corporations, governments and local communities.