Reference no: EM132827463

QUESTION: CASE STUDY - LYNAS CORPORATION

Lynas Corporation Ltd of Australia is building a rare earth processing plant called Lynas Advanced Materials Plant (LAMP) which is currently under construction at Gebeng in Pahang Malaysia. The company had proposed that raw materials (lanthanide ores) from Western Australia be processed into purified lanthanides, one of the rare earth groups. Rare earth is crucial for the production of high-tech goods from fiber optic cables to smartphones and electric cars.

This case study illustrates the issues regarding Lynas Advanced Material Plant (LAMP). The Lynas Corporation Ltd of Australia first looked at China before settling on Pahang, Malaysia to establish its rare earth processing plant. Rare earth is a slightly radioactive material. Despite reassurances by the company and the State and Federal governments that the Lynas Advanced Material Plant is not dangerous to the employees and the community, some NGOs and the public are still skeptical. They say the benefits derived from the investment may not outweigh the risks. The case presents a balanced perspective on both the benefits and risks of this project.

1. What is meant by ethical relativism? What are its implications and why is it less preferable to moral universalism in doing business across cultures?

2. What factors should a company like Lynas consider when locating its operations abroad? Why?

3. What factors should the local authorities like the Kuantan City Council, the State government, and the Federal government consider before approving the license to a company like Lynas to operate? Why?

4. If you were the CEO of Lynas (LAMP), what would you do to overcome the objections and protests by the local population?

5. What do you think should be the role of MNCs toward human rights issues in other countries? What are the major human rights concerns at this time? What ideas do you have for dealing with those problems? What is the role of corporate codes of conduct in dealing with these concerns?

6. What do you think are the responsibilities of MNCs toward the global environment? Give some examples of MNC activities that run counter to the concept of ecological interdependence and responsibility. 

7. Ethical dilemmas faced by business organizations.

The discussion should be following

• The description of the Characteristics of ethical problems 
• Ethical consideration that the company should adopt before operating abroad
• Use relevant ethical theory and ethical dimensions to discuss the ethical approaches in the organization
• Problems in the organizational culture were identified with clear explanations and relevant examples

All the proposed changes for improvement were feasible and well supported with examples and justifications.

• Provide the references of the finding