Journal of Business Ethics

, Volume 39, Issue 3, pp 199–226 | Cite as

Resource Extraction Industries in Developing Countries

  • Darryl Reed


Over the last one hundred and fifty years, the extraction and processing of non-renewable resources has provided the basis for the three industrial revolutions that have led to the modern economies of the developed world. In the process, the nature of resource extraction firms has also changed dramatically, from small-scale operations exploiting easily accessible deposits to large, vertically integrated, capital intensive transnational corporations characterized by oligopolistic competition. In the last ten to fifteen years, coinciding with processes of economic globalization, another major change has been occurring as resource extraction industries have been shifting their operations from developed to developing countries. This shift has greatly impacted the populations of these countries and raises a variety of ethical issues. This article investigates the nature of these changes and the ethical issues that arise, focusing in particular on the development impact of the activities of these industries and the potential adequacy of different policy approaches to regulating them.

business ethics developing ethics mining ethics 


Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.


  1. Adams, W. M.: 1990, Green Development (Routledge, London).Google Scholar
  2. African Agenda: 1997, 'Mining Boom: Harnessing the Gain for Africa', 15 ( journal published by Third World Network-Africa Secretariat).Google Scholar
  3. Aldred, C.: 2000, ‘Human rights seen as business issue', Business Insurance 34(16), 29–30.Google Scholar
  4. Amnesty International: 2000, Annual Report 2000 (Amnesty International, London).Google Scholar
  5. Ascher, W.: 1999, Why Governments Waste Natural Resources: Policy Failures in Developing Countries (The Johns Hopkins University Press, Baltimore).Google Scholar
  6. Banks, B.: 1997, "Whose Ethics?', Canadian Business 70(13), 24.Google Scholar
  7. Banuri, T.: 1991, ‘Introduction', in T. Banuri (ed.), Economic Liberalization: No Panacea (Clarendon Press, Oxford), pp. 1–27.Google Scholar
  8. Beder, S. (ed.): 1998, Global Spin: The Corporate Assault on Environmentalism (Green Books & Chelsea Green Publishing, White River Junction, VT).Google Scholar
  9. Benoit, E.: 1989, ‘The Valdez Legacy', Financial World 158(13), 82–83.Google Scholar
  10. Bromley, S.: 1991, American Hegemony and World Oil (Polity Press, Oxford).Google Scholar
  11. Buchanan, A.: 1985, Ethics, Efficiency and the Market (Rowman & Allanheld, Totowa, NJ).Google Scholar
  12. Clark, A. L. and J. Cook Clark: 1999, ‘The New Reality of Mineral Development: Social and Cultural Issues in Asia and Pacific Nations', Resources Policy 25(3), 189–196.Google Scholar
  13. Claessens, S., S. Djankov and L. H. P. Lang: 1999, Who Controls East Asian Corporations? (World Bank, Financial Economics Unit Washington).Google Scholar
  14. Corporate Europe Observer: 2001, 'Rio+10 and the Corporate Greenwash of Globalisation', Issue 9, accessed at: http://www.minesandcommunities. org/Charter/rio+10.htm.Google Scholar
  15. Cowell, S. J. et al.: 1999, ‘Sustainability and the Primary Extraction Industries: Theories and Practice', Resources Policy 25(4), 277–286.Google Scholar
  16. Cox, R.: 1987, Production, Power, and World Order (Columbia University Press New York).Google Scholar
  17. Cragg, W., D. Pearson and J. Cooney: 1995, ‘Ethics, Surface Mining and the Environment', Resources Policy 21(4), 229–235.Google Scholar
  18. Curtis, J.: 1999, ‘Is TV Too Much for Shell's "Ethical" Rebuild?', Marketing (October 7), 21.Google Scholar
  19. Drillbits and Tailings: 2001, 'Bushwacked: The Kyoto Protocol', 6(5), June 30.Google Scholar
  20. Drillbits & Tailings: 1998, 'Vital Statistics: Metals Exploration Explodes in the South', 3(11), 8.Google Scholar
  21. Federal Office of Statistics (Nigeria): 1997, Annual Abstract of Statistics 1997 (Federal Office of Statistics, Abuja).Google Scholar
  22. Ford, N.: 2000, ‘Oil-Ethics vs. Profits', African Business 259, 26–27.Google Scholar
  23. Fox, J. A. and L. D. Brown (eds.): 1998, The Struggle for Accountability: The World Bank, NGOs and Grassroots Movements (MIT Press, Cambridge, MA).Google Scholar
  24. Frankenthal, P. and F. House: 2000, Human Rights: Is It Any of Your Business? (Folium for Amnesty International and the Prince of Wales Trust, London).Google Scholar
  25. Friends of the Earth: 2001, Broken Promises-The Chad/Cameroon Oil Pipeline Project: Profit at any Cost? (Friends of the Earth, Washington).Google Scholar
  26. Friends of the Earth: 2000, Dubious Development: How the World Bank's Private Arm is Failing the Poor and the Environment (Friends of the Earth, Washington).Google Scholar
  27. Fry, A.: 1997, ‘On one's Best Behavior', Marketing ( June 19), 25–26.Google Scholar
  28. George, S.: 1989, A Fate Worse than Debt (Penguin, London).Google Scholar
  29. Girvan, N.: 1976, Corporate Imperialism: Conflict and Expropriation (Monthly Review Press, New York).Google Scholar
  30. Global Witness: 2000, Conflict Diamonds (Global Witness, London), accessed at: http:// conflict.htmlGoogle Scholar
  31. Gorman, H. S.: 1999, ‘Efficiency, Environmental Quality, and Oil Field Brines: The Success and Failure of Pollution Control by Self-regulation', Business History Review 73(4), 601–640.Google Scholar
  32. Hadenius, A. (ed.): 1997, Democracy's Victory and Crisis (Cambridge University Press, Cambridge).Google Scholar
  33. Hood, M. and N. Penniman.: 1998, 'Environmental, Human Rights and Women's Groups Petition California Attorney General To Revoke UNOCAL's Charter', ECONET, http:// Scholar
  34. Hooghiemstra, P.: 2000, ‘Corporate Communication and Impression Management-New Perspectives Why Companies Engage in Corporate Social Reporting', Journal of Business Ethics 27(1/2), 55–68.Google Scholar
  35. International Association of Environment and Development (IIED): 2000, 'Mining, Minerals and Sustainable Development', accessed at: Scholar
  36. Ismi, A.: 2000, ‘Profiting from Repression: Canadian Investment in and Trade with Colombia', Americas Update (November).Google Scholar
  37. IUCN (World Conservation Union): 1980, World Conservation Strategy: Living Resource Conservation for Sustainable Development (IUCN, UNEP and WWF, Gland, Switzerland).Google Scholar
  38. Jayaraman, N.: 2001, ‘Norsk Hydro: Global Compact Violator', Corporate Watch (October 18), norskhydro.html.Google Scholar
  39. Kaufman, E.: 1988, Crisis in Allende's Chile (Praeger, NY).Google Scholar
  40. Kirby, J., P. O'Keefe and L. Timberlake: 1995, ‘Introduction', in J. Kirby, P. O'Keefe and L. Timberlake (eds.), The Earthscan Reader in Sustainable Development (Earthscan, London).Google Scholar
  41. Knott, D.: 1998, ‘NGOs Foresee Better Business Ethics', Oil & Gas Journal 96(35), 27.Google Scholar
  42. Knott, D.: 1999, ‘How Petroleum Firms Can Shine in Ethics Debates', Oil & Gas Journal 97(50), 136–138.Google Scholar
  43. Lipietz, A.: 1987, Mirages and Miracles: The Crisis in Global Fordism (Verso, London).Google Scholar
  44. Mandela, N.: 1993, Nelson Mandela Speaks: Forging a Democratic Nonracial South Africa (Pathfinder, New York).Google Scholar
  45. Martinussen, J.: 1997, Society, State and Market (Zed Books, London).Google Scholar
  46. McCleary, R.: 1992, ‘Introduction', in R. McCleary (ed.), Seeking Justice: Ethics and International Affairs (Westview Press, Boulder, CO).Google Scholar
  47. McCrary, S. E.: 1998, ‘Saudi Arabia at the Crossroads', Global Finance 12(9), 117–121.Google Scholar
  48. Mikesell, R.: 1997, ‘Explaining the Resource Curse, with Special Reference to Mineral-Exporting Countries', Resource Policy 23(4), 191–199.Google Scholar
  49. Mining Watch: 1998, 'Building Community Responses: APEC, Mining, and Sustainable Communities', emcbc/international/APEC.htm.Google Scholar
  50. Mining Watch Canada: 2001, ‘Environmental Advisory Committee Chair Quits Over River Pollution at Placer Dome's Porgera Mine in Papua New Guinea', Mines Alert ( June 15).Google Scholar
  51. Mokhiber, R. and R. Weissman: 2001, ‘The Corporate Conservative Administration', Focus on the Corporation, 11 January, accessed at: 2001/000057.htmlGoogle Scholar
  52. Naito, K. et al.: 1998: ‘Mineral Projects in Asian Countries: Geology, Regulation, Fiscal Regimes and the Environment', Resource Policy 24(2), 87–93.Google Scholar
  53. Oil & Gas Journal: 1998, 'BP's Chief Executive Officer Details Refined Ethical Code', 96(18) 54Google Scholar
  54. Otto, J. M.: 1998, ‘Global Changes in Mining Laws, Agreements and Tax Systems', Resources Policy 24(2), 79–86.Google Scholar
  55. Philip, G.: 1982, Oil and Politics in Latin America: Nationalist Movements and State Companies (Cambridge University Press, Cambridge).Google Scholar
  56. Porter, M. E. and C. van der Linde: 1995, ‘Green and Competitive: Ending the Stalemate', Harvard Business Review(September/October).Google Scholar
  57. Project Underground: 1998, 'Indigenous Communities At The Edge', ProjectUnderground/motherlode/dr illing/ sacred.html#1.Google Scholar
  58. Project Underground: 2000a, Gold Greed and Genocide (Project Underground, Berkeley, CA).Google Scholar
  59. Project Underground: 2000b, The Gold Album (Project Underground, Berkeley, CA).Google Scholar
  60. Redclift, M.: 1994, ‘Development and the Environment: Managing the Contradictions?', in L. Sklair (ed.), Capitalism & Development (Verso, London).Google Scholar
  61. Reed, D.: 2002, ‘Management Education in an Age of Globalization: The Need for Critical Perspectives', in C. Wankel and R. DeFillippi (eds.), Rethinking Management Education (Information Age Publishing, Greenwich, CT), pp. 209–236.Google Scholar
  62. Reed, D.: 2000, ‘Will Freeing up Corporate Activity Lead to Development? (and Why Should Corporations Care?)', General Business Review (December), 8–20.Google Scholar
  63. Reichert, A. K., M. S. Webb and E. G. Thomas: 2000, ‘Corporate Support of Ethical and Environmental Policies: A Financial Management Perspective', Journal of Business Ethics 25(1), 53–64.Google Scholar
  64. Rimanelli, M. (ed.): 1999, Comparative Democratization and Peaceful Change in Single-Party-Dominant Countries (St. Martin's Press, NY).Google Scholar
  65. Rothschild, E.: 1986, ‘How Big Oil Greases Profits During a Worldwide Glut', Business and Society Review 56 (Winter), 30–33.Google Scholar
  66. Sangaji, A.: 2000, ‘Inco in Indonesia: A Report for the Canadian People', Mines Alerte, January 7, accessed at: Scholar
  67. Sanyal, R. N. and J. S. Neves: 1991, ‘The Valdez Principles: Implications for Corporate Social Responsibility', Journal of Business Ethics 10(12), 883.Google Scholar
  68. Sampson, A.: 1975, The Seven Sisters The Great Oil Companies & the World They Shaped (Bantam Books, New York).Google Scholar
  69. Shaffer, E.: 1983, Canada's Oil and the American Empire (Hurtig Publishers, Edmonton).Google Scholar
  70. Sewall, C.: 1999, Digging Holes in the Spirit (Project Underground, Berkeley, CA).Google Scholar
  71. Simon, J. G., C. W. Powers and J. P. Gunnemann: 1972, The Ethical Investor: Universities and Corporate Responsibilities (Yale University Press, New Haven, CT).Google Scholar
  72. Singh, A. K.: 2000, ‘Global Economic Trends and Social Development', UNRISD Occasional Papers, No. 9. Geneva: UNRISD.Google Scholar
  73. Strange, S.: 1996, The Retreat of the State: The Diffusion of Power in the World Economy (Cambridge University Press, Cambridge).Google Scholar
  74. Tarbell, I.: 1904, The History of the Standard Oil Company (McClure-Phillips, New York).Google Scholar
  75. Tauli-Corpuz, V. and D. Kennedy: 2001, ‘Native Reluctance to Join Mining Industry Initiatives: An Activist Perspective on the Mining, Minerals and Sustainable Development Initiative', Cultural Survival Quarterly (Spring), accessed at: csq0104.htmlGoogle Scholar
  76. Transparency International: 1999, 1999 Corruption Perceptions Index (Transparency International, Berlin).Google Scholar
  77. United Nations Development Programme: 2000, Human Development Report 2000 (Oxford University Press, New York).Google Scholar
  78. Velasquez, M.: 1995, ‘International Business Ethics: The Aluminum Companies in Jamaica', Business Ethics Quarterly 5(4), 865–882.Google Scholar
  79. Watts, P.: 2001, 'Remarks at the launch of Energy Needs, Choices and Possibilities-Scenarios to 2050', October 3, New York, http://,5831,,00.html?moduleid =1136&siteid=1160&type=speech.Google Scholar
  80. World Commission on Environment and Development (WCED): 1987, Our Common Future (Oxford University Press, Oxford).Google Scholar
  81. Wrong, M.: 2001, In the Footsteps of Mr.Kurtz: Living on the Brink of Disaster in Mobutu's Congo (Harper-Collins, New York).Google Scholar

Copyright information

© Kluwer Academic Publishers 2002

Authors and Affiliations

  • Darryl Reed
    • 1
  1. 1.Division of Social ScienceYork UniversityTorontoCanada

Personalised recommendations