BARRICK GOLD CORPORATION - TANZANIA Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

Barrick Gold Corporation - Tanzania Case Study Solution

Background

Tanzania is one of the developed country located in East Africa and has a size of around 945,087 km. Tanzania had a very weak legal and nationalized system which caused ahigh level of corruption. The country had high availability of natural resources such as gold, silver, gas, platinum and other resources. The government of the country had taken various steps for attracting foreign direct investment and transnational corporation for creating a business, improving employment, promoting other opportunities for the people and improving the economy.

One of the areas of Tanzania was the Lake Victoria zone which is one of the most densely populated regions of Tanzania. The country’s economy highly depends upon agriculture as it had contributed towards creating employment and also helped in improving the country’s GDP through exports. Lake Victoria, due to being located near water and had high availability of resources, the population had a significant increase in the areas due to lake’s resources. This area remained one of the most important places for farming activities and most of the outside firms had been established in the area for extracting its resources.

One of the firms was the Barrick Gold Corporation who had invested in Tanzania and established its mining company for extracting golds. However, due to an increase in population and establishment of many firms had started to damage the environment of the area. Most of the trash and sewage was dumped into the lake and the mining activities had been influencing on the pollution and toxic emissions. The fishing industry had been badly affected as many of the fishes had died from such pollution and also it was also causing a decline to health implication as the majority of the population were suffering from malaria, typhoid and another form of these diseases.

Analysis

We conduct in-depth analysis on the case through answering the following question on the Barrick Gold Corporation in Tanzania.

Answer # 1

Barrick mining activities had led to a number of protests, tensions and violence and its initiatives on the CSR activities showed no results. Barrick took a number of activities such as improving the education of the people towards mining, contributing investment in the hospital for treating the people affected by malaria and another form of the disease, creating environmental awareness through ambassadors and creating community-based entrepreneurship. This CSR initiative had no impact on building trust with the community and the people living in Lake Victoria. There are several numbers of corporate social responsibility alternatives which the company could take.

The first alternative is that Barrick Gold Corporation can properly manage the crises through crises management. When the people started to riot or protest, the company relied on the Field Force Unit, the Tanzania legal system and its government which only resulted in public anger and frustration. The company should approach the public through proactive approach by communicating the CSR initiatives they have taken and how it had improved the people’s knowledge and health. The company should also try to create relationship and trust with the community living in Lake Victoria.

The second alternative is that the company should build a good relationship with its employees who were local people of the country. Many of the workers were unfairly dismissed from Barrick Gold Corporation without any compensation or retention which caused anger and frustration among these people and these people felt being treated unfairly. The company should try maintaining a good relationship with its employees as they may be able to help in stopping protests and riots against the company. The company could provide compensation and retirement fund to its employees for creating loyalty and trust among the workers.

The third alternative which the company could try is to encourage the government in improving the environment of Lake Victoria by cleaning out the wastage from the water and should convince the government on adopting new rules for forcing the public on keeping the water and land clean from wastage. The government could also implement rules for the companies in making greenhouses for reducing pollution emissions. Most of the communities’ leaders and NFO officials blame the government for not taking any step towards improving the environment on the foreign companies.

BARRICK GOLD CORPORATION – TANZANIA Harvard Case Solution & Analysis

Answer # 2

There are number of challenges which are faced by the mining corporations during their establishment of a secondary operation on developed nations. The first and foremost reason is that the mining extraction results in damaging the environment due to use of machinery for drilling which causes a high amount of pollution emissions. Other than pollution, the mining extraction results in creating sinkholes, contamination of soil, surface, and groundwater due to the chemicals..................

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