Market Analysis of Gold Mining Industry - Essay Example

The toxic plume caused a massive killing of birds and fish. Moreover, it contaminated the drinking water of almost 2.5 million people. Acid mine drainage is another negative consequence of gold extraction. This can affect the environment for a long term period if the governments and communities do not take any kind of initiative.

This case study is focused on the negative impact of gold mining on the environment. A business firm can address several opinions of different stakeholders linked with a particular issue through a stakeholder approach. There are two stakeholder categories namely market and non-market stakeholders. This part of the report will discuss about the contribution of these two types of stakeholders.

In this particular case; shareholders, employees, and customers can be considered as the market stakeholders. Employees and customers are considered the key stakeholders of an organization. The workers of gold mining companies know that using huge earth-moving machines and dangerous explosive materials can create risks to their health. This environmental conflict can force the employees to raise their voices against the gold mining process. On the other hand, shareholders always try to buy shares in these companies as gold is considered as one of the most expensive metals. Customers also try to consume gold as the demand for this metal will continuously increase in the future.

Government, communities, and several non-governmental organizations are considered non-market stakeholders. The government needs to develop several environmental policies and laws for the gold mining organizations to reduce the level of environmental pollution. Huge explosive materials and Cyanide heap-leaching is causing the death of mankind and animals (Lottermoser, 2010, p.27). Ultimately, the ecological balance and safety of the community are getting affected due to these gold mining activities. The community is another important stakeholder. Several villages and communities near the gold mines are getting affected. The villagers do not understand the danger of the several collected hazardous liquid metals. More than 1000 individuals became ill due to the deadly effect of these metals. Non-governmental organizations are also considered non-market stakeholders. The gold mining organizations are trying to utilize several deadly mining materials to extract more gold metals. Several business support groups are helping these organizations to secure the profit margin and financial stability. These activities are ultimately affecting the environment and health of several human beings and non-human animals. However, the government is trying to initiate several awareness campaigns for the environmental conflict with the help of several NGOs.

Several gold mining organizations are using Cyanide heap-leaching and heavy earth mover to maximize their gold mining. Cyanide is a deadly poison. The wastewater and materials are generally spilled into the river. It causes the death of several birds and fish. On the other hand, the process of metal extraction seriously pollutes the air. It can cause several human diseases. The following stakeholder map will help to determine the position of all the stakeholders, such as employees, customers, shareholders, community, government, and nongovernmental organizations based on the case situation.

The workers always try to avail hazard-free working environment. This inadequate scenario can force the employees to raise their voices against the management of organizations. Shareholders and customers are indirectly supporting the extraction of gold due to the high market demand for this metal.

Organizations are using several deadly machines and chemicals to maximize their mining. The government is trying to oppose it but the unawareness of several people near the gold mines and inadequate policy development is increasing the level of environmental pollution. The government of several countries is trying to introduce several awareness campaigns for communities with the help of several NGOs.

The following recommendation plans will help to improve the mining process of gold:
- Government has to develop strict digging policies for the organizations.
- The organizations should be forced by the government to limit the use of Cyanide in the mining process.
- Government needs to increase the number of awareness campaigns. People in remote areas and villages need to be awarded about the deadliness of these activities by several NGOs.
- The health and safety factors need to be maintained by the organization. The organizations should follow developed policies and legislations.