Case Study 6-The Upper Big Branch Mining Disaster Case Questions: What could Mas
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Question
Case Study 6-The Upper Big Branch Mining Disaster
Case Questions:
What could Massey Energy have done to avoid this tragedy?
The company had a long history of being cited for safety violations. Why might a company persist with flouting violations?
To what extent did Massey Energy’s organizational culture contribute to the disaster? How do you assess the role of the CEO, Donald Blankenship, in creating this culture?
Should society rely on self-regulated behavior of companies to engage in ethical conduct or on legally binding laws enacted by state and federal governments? Discuss, based on this case.
What has been the impact of this disaster on the company, Mr. Blankenship, the employees, and the community?
Explanation / Answer
In April 2010, 29 miners died in Massey’s Upper Big Branch (UBB), the worst mining disaster in 40 years. Massey, under Blankenship, never accepted responsibility for the explosion and blamed the federal government.
What could Massey Energy have done to avoid this tragedy?
The investigators concluded that the explosion was the result of failures thre by Massey Energy in basic coal mining safety practices that are identified and codified to protect the lives of miners. First, water sprays on the company’s equipment were not properly maintained and consequently failed to function in extinguishing the small ignition that led to the massive explosion . Second, the company failed to meet federal and state safetyprincipal standards for the application of rock dust. As a result, the accumulated coal dust provided the fuel that allowed the explosion to propagate throughout the mine. Finally, the company’s ventilation system did not adequately ventilate the mine, allowing explosive gases to build up far beyond the legal levels.
To what extent did Massey Energy’s organizational culture contribute to the disaster? How do you assess the role of the CEO, Donald Blankenship, in creating this culture?
Massey Energy is well known for their environmental violations, causing immeasurable damage to the mountains, streams and air in the coalfields. They have created health risks for coalfield residents by polluting streams, injecting coal slurry into the ground, and failing to control coal waste dams and dust emissions from processing plants. For example, in 2000, Massey Energy was responsible for what the Environmental Protection Agency has referred to as the largest environmental catastrophe in the history of the southeastern United St ates. The Martin County slurry spill, which resulted in the release of more than 300 million gallons of sludge into Appalachian streams, covered seventy -five miles of the Big Sandy River with black sludge, killing 1.6 million fish, washing away roads, and contaminating the water supplies of more than 27,000 people. However, Massey has also had a very poor history regarding safety inside their coal mines.
Massey’s legacy is that its leadership — Blankenship and the board of directors — failed to follow laws or create a work climate that would have avoided the conditions that led to the explosion and loss of life. Whether or not criminal charges are brought against Blankenship or any members of its previous leadership, the report’s findings indicate Massey was run in a manner that put its employees and shareholders at risk.
Should society rely on self-regulated behavior of companies?
The cultural goals associated with the American dream have permeated our society, and the notion of monetary success is of the highest importance amongst American citizens. In American corporations, there are added pressures to engage in innovations while in pursuit of the American dream, so much so that criminality in the context of the work environment is oftentimes expected, and at times even celebrated.
What has been the impact of this disaster on the company, Mr. Blankenship, the employees, and the community?
When former CEO Don Blankenship left Massey Energy in 2010 taking $12 million in severance, a consulting contract for two years, and hefty retirement and pension packages, he also left refusing to participate in federal investigations into his mine’s deadly explosion.
On December 6, 2011, the U.S. Department of Mine Safety and Health Administration (MSHA) issued a 1,000 page report of its investigationinto the UBB tragedy. Alpha Natural Resources, which bought Massey earlier this year, agreed to pay $209 million in penalties (civil, criminal and restitution) for Massey Energy’s role in the explosion. While criminal action won’t be pursued against Alpha, the settlement doesn’t cover Blankenship or other Massey managers.
The settlement agreement with Alpha includes that $80 million be spent to improve safety and infrastructure in UBB and all underground mines Alpha owns. while another $48 million will finance academic research on mine safety.
Also on December 6, MHSA fined Alpha $10.8 million, the largest penalty in agency history, and cited Massey’s corporate culture as the root cause of the tragedy. They issued 369 citations for violations, saying that Massey “promoted and enforced a workplace culture that valued production over safety, and broke the law as they endangered the lives of miners.”