The Professional Advice to Rio Tinto Japan - Assignment Example

The Professional Advice to Rio Tinto Japan On March 11, 2011, Japan was hit by a massive earthquake. The result was extensive destruction, massive displacement of people from their homes, disruption of vital services, and deaths (http://mcmaweb01.curtin.edu.au/ 2013). Rio Tinto Japan’s offices were hit on the same day by the earthquake, throwing the company into disarray and disorganizing normal operations. More importantly, employees were unable to access the office, meaning they could not work. Other major issues were the destruction of property and other valuables and, consequently, negative ramifications on the company’s stocks (http://mcmaweb01.curtin.edu.au/ 2013). Rio Tinto launched a damage control and public relations initiative that was meant to arrest the situation and prevent the company from incurring other major losses as a result of the earthquake (http://mcmaweb01.curtin.edu.au/ 2013). Although it was a success to a certain degree, the company accepted that it had been caught grossly unawares and unprepared (just like Japan) and therefore needed to build a level of preparedness that is sufficient to deal with such situations. This paper is aimed at achieving three things: providing professional advice to Rio Tinto Japan on how to handle the issues that arose from the earthquake. This will be basically done in four ways: a) Developing and using decision criteria to justify the choices among the ‘alternative’ courses of action. b) Based on the decision criteria, developing a range of realistic alternatives to address the ‘issues’ identified c) Deciding on a solution to the ‘issues’ derived from the ‘alternatives’. For each ‘alternative’, providing a justification for the solutions chosen or rejected. d) Providing realistic suggestions on how those ‘solutions’ could be implemented at Rio Tinto. Looking at the feedback from part 1, it is clear that there was a lack of coherence, objectivity, and breadth when writing the paper. For instance, analysis was done without recognition of ethical dimensions. There was also an inability to demonstrate knowledge and a good grasp of global cultural rules and biases. In summary, the paper was poor to average at best, and did not adopt a clear and concise approach to outlining the issues and causes required. It is my intention to avoid making a similar mistake when writing this paper, by being clear and objective with my points and presentations. At the end of this paper, I hope to have come up with a feasible and practical framework to guide Rio Tinto not only on how to handle the effects of the earthquake, but also to build a level of preparedness that makes it capable to deal with a broad range of disasters if and when they happen. I also hope to provide the company with invaluable advice on how to approach the issue of disaster management as a whole, and not just earthquakes. The company will therefore be able to avoid a similar scenario in the future. Decision Criteria a) Before formulating the decision criteria, it is important to outline the choices among the ‘alternative’ courses of action and accompany them with the appropriate decision criteria. Choices among the ‘alternative’ sources of action Decision Criteria Training employees on disaster preparedness Awareness on how to react in case of a disaster. Conducting regular ‘drilling’ exercises Alertness and readiness in case of disasters Reconstruction of the office building to make it capable of withstanding certain disasters The office building should act as a buffer itself by protecting inhabitants from the initial effects of disasters. Acquiring and installing equipment to facilitate safety in case of disasters Warning mechanisms, protective equipment Improving and building communication Facilitate the sharing of information despite the occurrence of a disaster, hence making it easier to pursue courses of action. Alternatives Since there are currently five choices among the alternatives, they will be settled on as the alternatives. They include the following: a) Train employees on how to handle disasters, and equip them with the basic disaster management skills. b) Conduct regular ‘drilling’ exercises to test employees’ disaster preparedness levels. c) Reconstruct the office building so that it is able to withstand certain magnitudes of earthquakes and make the building safe; this will make the company a generally safe place to work regardless of the likelihood of disasters like earthquakes, hurricanes, flooding, and tornadoes. d) Acquire and install the necessary equipment to facilitate safety and disaster preparedness in the company. Such equipment include fire extinguishers, stretchers, fire alarms, and masks. e) Build and improve the company’s means of communication with not only headquarters, but also important external entities like government agencies. The logic behind this is that when disasters occur, communication is usually disrupted due to destruction of power lines and communication infrastructure, thus impeding response and rescue efforts. The company should therefore invest in alternative means of communication that will make it easy to share information. Solutions Issues in Alternative (a) Employees are currently not equipped with sufficient skills and knowledge on how to handle disasters. They are not sufficiently trained on the procedures and courses of action to be followed when disaster strikes Solutions to the Issues Holding seminars, conferences, and workshops in which employees are given theoretical and practical lessons on how to react during disasters and the procedures they are supposed to follow (Baker and Grisham 2002, 16). These lessons are provided by professionals from the private sector and government agencies like OSHA and the National Institute for Occupational Safety and Health (NIOSH). Issues in Alternative (b) Even though employees may be trained and equipped with the right knowledge and skills to handle disasters, absence of regular ‘drilling’ exercises renders the training irrelevant. Employees may forget how they are supposed to react and what they are supposed to do in case of any disaster. Solutions to the Issues Regular ‘drilling’ exercises, that is all (Doohan 2008, 19). Such exercises raise the levels of alertness and preparedness, boosting and complimenting whatever training employees have undergone. Issues in Alternative (c) Currently, the company’s office building is only capable of withstanding minor disasters. For instance, the earthquake’s epicentre was 520 kilometres away but the impact was huge in the office. It is sad to imagine what would have happened if the epicentre was even 100 kilometres away; the destruction would have been massive. Solution to the Issues Consult engineers and architects on how the building can be reconstructed so as to be able to withstand earthquakes with higher magnitudes, floods, fires, hurricanes, and tornadoes (Elizabeth 2008, 41). This transforms the building into some sort of firewall that prevents its inhabitants from feeling the real initial effects of a disaster, hence giving then a vital window in which they can react and respond. Issues in Alternative (d) Currently, the building is equipped with fire alarm and early warning systems, so it is right to say that it is pretty safe in this regard (Gray and Boyd 2012, 33). By serving as warning systems, these devices provide the building’s inhabitants with enough time to compose themselves and react in a positive and responsible way. Solutions to the Issues The current fire alarm and early warning systems should be examined to confirm that they are in good working condition. If not, they should be upgraded, removed and new ones installed (Harvey 2001, 37). Even if they are working as they should, it is advisable to explore other more advanced options that perform better. This will ensure that the company is secure at all times, and chances of surprises are either eliminated or reduced (Johansen 2003, 28). Issues in Alternative (e) It is commonplace to find people stranded and unable to share information when disasters occur. Communication infrastructure and power lines are often damaged, hence paralysing communication (Kluwer 2012, 63). Rio Tinto Japan was a victim of this because its employees were unable to get updates on what was going on, becoming stranded in the process (Locklear 1998, 40). Solutions to the Issues The company has to explore alternative means of communication. Some feasible alternatives include using solar chargers to keep devices on, using radios to relay information, and building and sharing reliable communication channels and networks that are not easily compromised by disasters like earthquakes (McIntosh 2001, 68). Implications (Implementing the Solutions) In order to implement the abovementioned solutions successfully, Rio Tinto Japan needs to develop a framework that supports this initiative (Michael 2007, 20). The company should draw up a practical plan that brings together financial resources, human resources, and necessary legislations that pave the way for implementation of the proposed solutions (Rio Tinto 2008, 45). In this regard, it is necessary to pool the three entities (human resources, financial resources and appropriate legislations), organize them, and direct them in a concerted effort to make sure that the proposed solutions are able to come into effect (Rio Tinto 2000, 53). It is important to note that having resources alone does not guarantee successful implementation; therefore organization and application must be done in a thorough and discrete manner. Most importantly, Rio Tinto Japan needs to adopt a holistic approach to the implementation of the solution (Tiplady and Maryanne 2007, 48). A holistic approach combined with the incorporation of all necessary entities will allow the company to carry out successful implementation of proposed solutions. This will have positive long-term effects on the company, putting it in a position to mitigate the effects of not just earthquakes, but also other disasters like floods, hurricanes, tornadoes, and, in rare circumstances, nuclear disasters15. References Baker, Charles, and Paul, Grisham. 2002. Rio Tinto (Rio) Melbourne: SBC Warburg Dillon Read, 1998. Dept. of Industry, Science and Resources. Working in partnership: the mining industry and indigenous communities. Canberra: Dept. of Industry, Science and Resources. Doohan, Kevin. 2008. Making things come good: relations between Aborigines and miners at Argyle. Broome, WA: Backroom Press. Elizabeth, Stacy. 2008. Rio Tinto: more than a decade of social investment: the Rio Tinto Aboriginal Fund. Melbourne: Rio Tinto. Gray, Michael, and Henry Boyd. 2012. Increasing Indigenous employment rates. Canberra, A.C.T.: Closing the Gap Clearinghouse. Harvey, Christopher. 2001. The Rio Tinto Company: an economic history of a leading international mining concern, 1873-1954. Penzance, Cornwall: A. Hodge. http://mcmaweb01.curtin.edu.au/ Johansen, Brian. 2003. Indigenous peoples and environmental issues: an encyclopedia. Westport, Conn.: Greenwood Press. Kluwer, Wolters. 2012. International corporate legal responsibility. Alphen aan den Rijn: Wolters Kluwer Law & Business. Locklear, Bernard. 1998. New directions: Aboriginal Australia & business. Melbourne: Rio Tinto. McIntosh, Mullen. 2001. Rio Tinto. London: Routledge. Michael, Broderick. 2007. Aboriginal policy and programmes in Australia. Melbourne: Rio Tinto Ltd. Rio Tinto. 2008. Breaking new ground: stories of mining and the Aboriginal people of the Pilbara. Perth, WA: Rio Tinto Iron Ore. Rio Tinto. 2000. Rio Tinto Business with Communities Program. Melbourne: Rio Tinto. Tiplady, Tony, and Barclay, Maryanne. 2007. Indigenous employment in the Australian minerals industry. Brisbane, Qld: Centre for Social Responsibility in Mining, University of Queensland. Read More