Monthly Archives: October 2014

Protecting Sacred Lands Isn’t A Crime… But Neither Is Taseko’s Mine

Protecting First Nations land is legal.  It is important for companies to be conscious of how their actions could affect Aboriginal communities and to take precautions to ensure that negative impacts on First Nations peoples are minimized.  With native interests in mind, Taseko Mines has made every reasonable effort to protect Aboriginal land near their planned Fish Lake gold and copper mine.  However, none of their actions are good enough for the Tsilhqot’in people, who have set up a tribal park over the site of the mine, which is the tenth largest gold and copper reserve in the world.  The Tsilhqot’in legally posses 1750 square km, which does not include the mine site.  Since they legally have no right to the land the mine will occupy, the tribal park, if accepted by the government, allows them to veto the mine’s actions.

The Tsilhqot’in people should reconsider their position on the mine.  It has the potential to create 2000 jobs, which will be beneficial to the First Nations in the area, who have a 20% rate of unemployment.  Taseko will preserve hunting and fishing grounds while bringing jobs to Aboriginals in the area and bring $1 billion of revenue to the government – a win-win for all parties involved.

Image: http://storage.winnipegsun.com/v1/dynamic_resize/sws_path/suns-prod-images/1297445706730_ORIGINAL.jpg?quality=80&size=650x

Sources:

  • http://www.vancouversun.com/news/metro/Unilateral+park+declared+Tsilhqot+includes+Prosperity+mine/10192766/story.html
  • http://www.cbc.ca/news/canada/british-columbia/taseko-seeks-new-review-of-new-prosperity-mine-rejection-1.2587442
  • http://www.winnipegsun.com/money/2010/07/06/14626256.html
  • http://www.winnipegsun.com/2014/02/26/feds-reject-bcs-new-prosperity-mine-project

The Economic Effect of LeBron James’ Return to Cleveland

This summer, LeBron James decided to return to the Cleveland Cavaliers.  While having one of the best athletes on the planet will help the team, the most significant impact of his return may not be his play on the basketball court, but the economic benefits that Cleveland will see from increased ticket sales.  According to LeRoy Brooks, LeBron will bring $500 million to the city.  At first glance, that seems like a lot of money, but, in reality, the only major benefit LeBron will bring to his hometown will be a reason to cheer when the Cavs take to the court.  Although businesses will make more money, it will not be the optimistic half-billion Brooks anticipates, because the people who will spend money on Cavs tickets would have spent their money elsewhere.  More realistic estimates hover at about $50 million, 10% of Brooks’s estimate.  Either way, there will be no major influence on the economy as a whole.  The city has a $112 billion dollar economy, so even if LeBron’s return ends up being worth $500 million, it would be worth less than a 0.5% change.  Even though LeBron James will impact the Cleveland’s performance on the court, his influence ends there.

Image: http://a.espncdn.com/combiner/i?img=/i/headshots/nba/players/full/1966.png&w=350&h=254 

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A Ghost Town’s Attempt to Repopulate

Gary, Indiana was a booming steel town when its population peaked at almost 200,000 people in the 1960s.  Since then, the declining steel industry has caused the population to fall to under 80,000.  The migration of 60% of its residents has resulted in a large number of abandoned houses and business.  Since abandoned buildings ruin communities’ sense of togetherness and increase crime rates, the mayor of Gary, Karen Freeman-Wilson, has adopted a “Dollar Home” program that would allow people to buy abandoned houses for just $1.  She hopes that people will be attracted to the low price and repair the buildings, eventually restoring Gary to its original state.

Although the process will take time, the Dollar Home will be an effective way to increase Gary’s population.  Young people in particular will be able to own a home and low-income families from other cities will be encouraged to move to Gary.  The next step that the city should take is introducing a similar program for the abandoned businesses in the city.  Selling abandoned businesses for very little money would encourage residents of Gary to start businesses and encourage investment in the city.

Image: http://i.dailymail.co.uk/i/pix/2012/07/15/article-2173761-1410F623000005DC-840_964x643.jpg

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Re: Katherine Skarsgard – Social Sensitivity Spells Success

Katherine Skarsgard’s blog post suggests that a socially responsible approach to running a company is necessary for success.  FEED, the company that she mentioned in her post, is able to add a value proposition and reach another customer segment by donating a portion if its profits to charity, allowing it to become successful.  However, not all companies need to be ethical to be successful.  In fact, many companies are able to become more profitable by being unethical.  Coca-Cola, for example, is able to reduce its costs by draining public groundwater in India.  While Coke’s actions are immoral and have led to protests, from a business perspective, being unethical is a good move.  Most people either do not know or do not care that, by drinking a Coke, they are contributing to problems in India.  It does not need to make a plan to specifically reach customers who care about ethics; it already has very powerful value propositions that allow it to reach almost everyone – brand recognition, taste and cost, among others.  Through its exploitations of water resources in India, the total cost of producing its product is decreased, and therefore its profit is increased.

Image: http://killercoke.org/crimes_india.php

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