Essay by ardenElementary School, 1st gradeB+, October 2014

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Example ofaCompanyBreakingBusinessEthics(Case Studyof PTFreeportIndonesiaWorkersonWages)

A. Background

There is a strong statement that there has been a distortion of ethics and a great humanitarian violation in Papua. Human dignity should be upheld, civilization and culture to the chain of livelihood clearly was violated. It is a fact ofgovernment negligence that underestimated the Papuan people. The idea that states welfare with intensification in fact has failed.

Ironically, twiceFreeportworkershave been on strikesince Julyto demandtheir normative rights and salary discrimination, but twice they had to end up in a fight. Economic benefitsenvisioned were notas promised, on the other handthe environmentalconditionsandcommunitiesaroundthe mining sitescontinue toflaw dueto protestsonlegalandhuman rightsviolations.

B.Analysis ofProblems

PTFreeportIndonesia is amultinational corporation(MNC), theinternationalortransnationalcompanies arebased inone countrybutthere arebranchesin manydeveloped and developing countries.

Breakdownofall workersof PTFreeportIndonesiawas due tostandardsalaryindex differenceapplied bythe managementinFreeportoperationsaround the world. FreeportWorkersinIndonesiawas known toearnlower salariesthanFreeportworkersinother countriesforthe samejob level. Currentsalaryper hourwas USD1.5-USD 3In fact, compared tosalariesinother countriesreached USD15-USD 35per hour. So far, thenegotiationsare stilldeadlocked.

Freeportmanagementinsisted onrejectingthe demands ofworkers, for whateverthe considerations is still unknown.

Cost ofCSRfor thepeople of Papuawasnot muchbecause it did notreach1per cent ofnetprofitof PTFI. In fact,the people of Papuahasto pay morebecause they have tobear the consequencesin the form ofdamage tonaturalhabitatsand the extinction ofthePapuaninvaluable. Reclamation costswill notbe beard bythe Papuans toseven generations.

Generally,when the corporations are fromthe United States, the workersarepartof thecompany's assets. Maintaining good relationswith theworkersisa must. Therefore, inthis casethere ismutualrelationshipwith one another. The companyrequiresdedicationandloyaltytothe production ofthegood, whileworkersrequiremanagement commitmentinterms of providinga decent salary.

Governmentinthis regarddeservesshame. Therefore, the presence ofMNCsinIndonesiaprovedas a bad exampletoavoid disputesaboutfundamentalnormative. Policyby providingexceptionaldiscretionto PTFI, excessiveprivilege, was only in vain.

C. Solving Problems by PT Freeport Indonesia

PT Freeport Indonesia spokesman RamdaniSirait, said that the company's management will communicate with PTFI of all Indonesia Workers Union (SPSI) in order to anticipate the threat of an employee strike. The strike issues related to the plan of termination of three PTFI employees was...