In the world of business, conflicts between businesses and stakeholders are inevitable. When conflict arises and it directly impedes the business’s key plans and activities, action must be taken immediately. In many cases, remaining head strong on conflicting matters don’t warrant any type of solution in the short run. This is the case in BC Hydro’s plan to build a $8 billion Site C hydroelectric megaproject. The First Nations are strongly against the megaproject that plans to provide clean hydroelectric energy in northwestern British Columbia due to immense predicted damage to integral First Nation land and activities.  The federal government has been expected to reject BC Hydro’s plan mainly because the project is bound to create significant and irreversible negative effects on fishing opportunities and practices of First Nation. The panel responsible for the BC Hydro decision has stated in the past that while they understand the need for new energy and utility at some point in the future, BC Hydro has failed to provide any evidence in the need of such a massive infrastructure now.

The idea behind BC Hydro’s plan is understandable, given that the demand for energy and utility will surely increase in due time. It makes sense for a utility based company to  want to build a hydroelectric dam in a region growing in population and key industries because BC Hydro can meet increasing market demand in an instant. What BC Hydro failed to consider is the environment in which it planned to operate and this is evident in their business model. For BC Hydro to improve on their existing model, they must consider the external factors that will affect their plans.  Based on the article, it is clear that the government’s stance will not budge if BC Hydro does not change their existing plan. BC Hydro must first address how the benefits of their future projects will outweigh the damage that may accompany it.  Unless there is a sudden tremendous need for energy and utility, compromise is the key in a long lasting relationship with the First Nations. In their business model, BC Hydro’s key partners must include the BC government and the First Nation because large scale magnitude project will not be approved without the collaboration and approval from the two stakeholders.

The rejection of BC Hydro’s project shows the importance of collaborating and maintaining a positive relationship with key stakeholders. If  BC Hydro worked with the First Nations in creating a project that would satisfy both parties, then they could have avoided the time and resources spent on the courts.

SOURCE:

http://www.vancouversun.com/life/First+Nation+chiefs+stage+Site+showdown/10215965/story.html