On April 5, 2010, a massive explosion at the Upper Big Branch coal mine in West Virginia killed 29 miners and seriously injured two others. It was the worst mining disaster in the United States in almost forty years. In response to what were the costs and benefits to stakeholders of the actions taken by Massey Energy and its managers, the final cost was the death of 29 miners and the injury of two others. Apart from having to work in horrendous work conditions and under almost complete disregard to the safety protocols, there were few benefits for the miners. One of the benefits was that they would be able to keep their jobs in exchange for their silence. Management required them to disregard the working and safety conditions within the mines. Management was not responsible and did …show more content…
Multiple administrative tools are available under current regulatory framework that would not require additional legislative action. There are many steps that can be taken in all levels of the mining industry. For example, Boards of directors should select ethical directors and advance managers through the organization based on a verified track record of successfully balancing the requirements of profit and productivity with the genuine interests of stakeholders and the need to obey all relevant laws. Perhaps managers should make it more than clear that the rule of the corporation is to observe with the law and to go beyond compliance to attain the best health and safety systems. Lastly, the boards of directors should create compensation systems that provide incentives for safe and environmentally inclusive operations while also applying penalties for noncompliance with the