Barrick Gold Case Study

561 Words3 Pages
While working on a major development project in South America, Barrick Gold, the world’s largest mining company has caused many issues due to miscommunication. Head office of the company is based in Toronto, Ontario, Canada. Major developments commissioned by Barrick Gold in other countries provide opportunities for miscommunication to occur. The company donates $1 million annually to a host country to fund scholarships, school busses, etc. Although the annual donation is generous, improved communication with their host country could result in funds being secured to improve polluted water sources caused by their developments. Barrick Gold’s core communication problem is their failure to communicate openly and honestly. One example is Barrick’s promise to eliminate harm to affected glaciers by moving them away from the mining site. This promise never came to fruition. The cause of this problem originates from Barrick providing false promises and a lack of good communication with the host country. As a result of Barrick’s false promises, the symptoms of the problem resulted in Argentina national legislators passing a new law to protect the environment, disgruntled local farmers, and a perceived conflict of interest of the mayor of Chile, a former…show more content…
These few instances alone have led their stakeholders to mistrust the company. The key stakeholders consist of the Argentina and Chile governments, shareholders of Barrick Gold, and locals in the area such as farmers. Barrick Gold has provided valid reason for each stakeholder to mistrust the company. The Argentina government was displeased with Barrick’s actions and furthermore, implemented a new law. “Opposition had mounted to the point where the national legislators had passed a law protecting glaciers and their permafrost” (Ramsay
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