BHP displays good crisis management
Independent Financial Research
BHP Billiton's (ASX: BHP) response to the Samarco tragedy should act as a template for companies dealing with future disasters. By now, the human and environmental tragedy arising from the collapse of a tailings dam owned by Samarco – a Brazilian iron-ore joint venture between BHP Billiton (ASX: BHP) and Vale (BOVESPA: VALE) – is well known. I’ll wait for the proper investigations to be completed before assigning blame to any particular sins of commission or omission by Samarco. Instead, I want to commend BHP and chief executive Andrew Mackenzie for their response to this disaster. On hearing the news, instead of relying on lawyers and public relations ‘experts’, Mackenzie quickly decided to fly to Brazil and personally inspect the damage. Rather than offering excuses, he has profusely apologised and quickly arranged food, water and other assistance for those affected. In tears at the company’s AGM, he even cancelled many of the company’s Christmas parties (which is probably going a bit far) as well as announcing an independent, external investigation into the tragedy. Read full article here: (VIEW LINK)
Welcome to Livewire, Australia’s most trusted source of investment insights and analysis.
To continue reading this wire and get unlimited access to Livewire, join for free now and become a more informed and confident investor.
Intelligent Investor is an independent financial research service with a 14-year history of beating the market. Our value investing approach empowers Australians to make more informed decisions to build their long-term wealth. We off structural...
No areas of expertise
Please sign in to comment on this wire.