The First Nation chiefs’ demand to have BC Hydro‘s hydroelectric megaproject shut down is a prime example of how political and social factors can influence a business. In this case, firms specifically in British Columbia – an Indian land – such as BC Hydro must always take into account the preserving of the First Nations lifestyle, culture and environment when making important business decisions. They are an additional stakeholder to consider.

The issue at hand affects BC Hydro negatively as it inhibits them from attaining their objective of protecting the environment through the provision clean energy through expansion. However, if BC Hydro were to continue with its plans, not only will it bring damage to the environment (flooding), causing it to undermine its initial goal, it would also bring damage to its brand image as the flooding caused by the project would destroy the aboriginals practices which include fishing and hunting.

The immediate solution to this problem would be for BC Hydro to negotiate with the First Nations government and come up with a solution that would ideally meet both, the demands for greater access to renewable energy while complying with the needs of the First Nations. Rather than taking opposing sides, the two parties must balance out both sides of the issue and maintain a positive relationship with one another.