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Thorn in the Elephant's Side: The Seattle Mennonite Church vs. Freeport McMoRan Copper & Gold Inc., The
David E. Ortman, Howard D. Feldman, Asbjorn Osland
published: 2006 | Case Study | Business Policy/Strategic Mgmt
Subject Area: Business Ethics; Business Policy/Strategic Management
Key Issues: Social Responsibility; Foreign Government Partnership; Corporate Governance; Sustainable Development
Case Description: The Seattle Mennonite Church, owners of stock in Freeport McMoRan, Copper & Gold, Inc. (FCX), was concerned about FCX's mining operations in Irian Jaya, Indonesia. The company, in partnership with the Indonesian government, operated the world's largest copper and gold mining venture--the Grasberg mine. The church believed their duty as owners was to ensure that FCX was operated in a socially and environmentally responsible manner. However, complaints of major abuses had been leveled against the company. The Church approached FCX regarding their practices but was rebuffed. As a result, the Church embarked on a series of shareholder resolutions as a way to influence FCX's behaviour. FCX, however, argued they had made considerable progress on the environmental and social issues confronting them. The case ends with the Church having to make a decision. Should they continue to be a thorn in the elephant's side or should they sell their FCX stock and invest it in other meaningful social programs?
# Case Pages: 10
Case Number: 160048-22-4-6
Teaching Note: Yes
revised May 24/06
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