Saturday, June 20, 2020

Shame on Rio Tinto

https://commons.wikimedia.org/wiki/File:Riotintoagua.jpg    
In the public domain


The axe forgets but the tree remembers” - African Proverb

Virtue ethics emphasizes the character, motivation and intention of the decision maker” - Thomas Oberlechner



Shocking Lack of Good Corporate Citizenship

On 30th May, 2020 The Guardian headline shouted, Rio Tinto blasts 46,000-year-old Aboriginal site to expand iron ore mine. The destructive, atrocious act was carried out (with Australian government approval), on the only inland site in Australia to show signs of continual human occupation through the last Ice Age.
Corporate governance specialist Carolynn Chalmers in a LinkedIn post has asked “What's the problem here?” and suggested that Rio Tinto seem to have failed to display good corporate citizenship.
Indeed.

Chief executive of Rio Tinto iron ore, Chris Salisbury says that he has taken accountability, and has apologised for any distress that may have resulted, refers to a misunderstanding, and insists that Rio Tinto are not guilty of any wrongdoing!  And to top it all: We can’t keep looking backwards”!

Before any acknowledgement or hint of remorse and an effort to make good where still possible, we can expect more corporate-speak, more denials and excuses, manipulation of loopholes in legislation, defence of actions and principles – the sort of behaviour that so often initially follows instances of severe behavioural disconnects from espoused values.

And of course the Australian government has ably demonstrated how not to govern.

(Refer to The Virtuosa Organisation - about how to proceed with the careful selection of core values, and the building of the ethical maturity and behaviours necessary to support those values, in order to prevent disconnects that cause harm and damage - including to the organisation’s reputation.



Context

The identity of Australia’s original inhabitants is intimately connected to the land…… For thousands of years they persisted in their way of life and their spirituality became entwined with the vast landscape”. (Storm, R. 2007)
Sacred Lands matter.

Humankind has not woven the web of life. We are but one thread within it. Whatever we do to the web, we do to ourselves. All things are bound together. All things connect” – Chief Seattle, Duwamish Tribe.



Symbolism

The symbolism of a red river might refer to raw and intense emotion - in this instance guilt, shame and evoked anger. Association with (bad) blood brings to the fore the notion of disaster and wrongfulness. Nearly 150 years ago Rio Tinto (Red River) began operating in Spain next to a river that has flowed red since mining began there about 5,000 years ago. This is due to acid mine drainage. A staining of the landscape. Apt.




A clear case of a serious values-disconnect

Rio Tinto’s stated and publicised core values do not stand up to scrutiny, by a long way, contrary to what they proclaim. “The way we work … makes clear how we should behave, in accordance with our values of safety, teamwork, respect, integrity and excellence”.  (Rio Tinto. 2017) According to their publication, The Way We Work, Rio Tinto claim that:

·        Safety                           
      They care for human life and well-being above everything else (and point out that this includes care for the environment and for the communities they work with). What about the physical,               psychological, social and spiritual well-being of the Aboriginal community, culture and heritage?!

·        Teamwork                   
      We work with colleagues, partners and communities, say Rio Tinto. (Teamwork with the Australian government as a partner? And such wicked treatment of the Aboriginal community if Rio Tinto sees them as part of their team!) 

·       Respect                        
      The word respect is derived from the Latin spectare (as in spectacles) meaning “to look”, and re (meaning “again”). So we develop respect by looking again at the other, again and again, until we see their dignity and value, their wounded child and vast potential within. And respond with understanding, acceptance, compassion, fairness.
      18th century Anglican Clergyman and author, Laurence Sterne, observed, Respect for ourselves guides our morals, respect for others guides our manners”.

·       Integrity                        
      Having the courage to do the right thing (and to accept accountability) are recurring themes in The Way We Work.


·       Excellence                    
      Claim: Being the best we can be for superior performanceYet “performance” covers so much more than profit. It is about how work is carried out as well as any end result. And “Excellence” should
embrace excellence of character



These proclaimed Rio Tinto values are supported by a code of conduct aimed at ensuring good choices. Relevant mentions in The Way We Work are:

·       Human Rights            
      Rio Tinto subscribe to upholding human rights. An international human rights principle (United Nations) is that indigenous peoples have the rights to maintain, protect and relate fully to their cultures and sacred land
                                                    
·       Communities              
      They state their respect for culture, lifestyle and heritage of "our neighbours” and the special connection of local and indigenous people to their land and waters

·        Trust     
       “We build trust by communicating openly and honestly … and maintain good stewardship for the long-term of our environment". Impressive but hollow words it would seem.

·        Conflicts of interest   
       Rio Tinto advocate the use of good judgment in order to avoid conflicts of interest. One must ask   precisely what good judgment was applied in this case.



With regard to making right choices, I found the following statements in their code of conduct hugely interesting in the light of what has transpired. Questions that Rio Tinto may have pertinently asked and answered before proceeding with the destruction wrought on a sacred Aboriginal site:

When deciding whether to apply the laws of a country or the principles of the way we work we use whichever is stricter

Consider “What might others think of my actions?”

“How might it look on the front page of the newspaper?”


Rio Tinto's behaviour in this instance may safely be classed as unconscionable.  It certainly seems apparent that the real values on show here were greed, arrogance, disrespect, deceit, hypocrisy and insensitivity.

To the extent that corporate culture equates to corporate character, we might well assume that what we see here is a clear example of the dictionary definition of hypocrisy: “A pretense of having a virtuous character, moral or religious beliefs or principles, etc., that one does not really possess”.


                                       

References
Rio Tinto (2017) The way we work August 2017
Storm, Rachel (2007) Endless Path: Dreamtime   Flame Tree Publishing
The Guardian (2020) Rio Tinto blasts 46,000-year-old Aboriginal site to expand iron ore mine The Guardian 30 May, 2020
Williams, Graham with David Rosenstein (2016) From the Inside Out: the human dynamics of sustainability







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