Harvard Case - ArcelorMittal and the Ebola Outbreak in Liberia
"ArcelorMittal and the Ebola Outbreak in Liberia" Harvard business case study is written by Sophus A. Reinert, Sarah Nam, Sisi Pan, Eric Werker. It deals with the challenges in the field of Business & Government Relations. The case study is 36 page(s) long and it was first published on : Feb 2, 2018
At Fern Fort University, we recommend that ArcelorMittal, in collaboration with the Liberian government and international organizations, implement a comprehensive strategy to address the Ebola crisis while simultaneously safeguarding its operations and contributing to Liberia's economic recovery. This strategy should prioritize public health, employee safety, and community engagement, while leveraging ArcelorMittal's resources and expertise to support long-term sustainable development in Liberia.
2. Background
This case study examines the challenges faced by ArcelorMittal, the world's largest steelmaker, during the 2014-2016 Ebola outbreak in Liberia. ArcelorMittal's iron ore mine and processing plant in Yekepa, Liberia, was a significant contributor to the country's economy, employing thousands of Liberians and generating substantial foreign investment. However, the Ebola outbreak posed a significant threat to the company's operations, employee safety, and the broader Liberian community.
The main protagonists in this case are:
- ArcelorMittal: A multinational corporation facing the challenge of balancing its business interests with its social responsibility during a major public health crisis.
- The Liberian government: Struggling to contain the Ebola outbreak and manage its economic and social consequences.
- The Liberian people: Suffering from the devastating effects of the outbreak and facing economic hardship.
- International organizations: Providing aid and support to Liberia during the crisis.
3. Analysis of the Case Study
This case study can be analyzed using the framework of Corporate Social Responsibility (CSR) in the context of globalization and emerging markets.
Key issues:
- Public health crisis: The Ebola outbreak posed a significant threat to the health and safety of ArcelorMittal's employees, their families, and the broader Liberian community.
- Economic impact: The outbreak severely impacted Liberia's economy, disrupting businesses, reducing foreign investment, and exacerbating poverty.
- Operational challenges: ArcelorMittal had to navigate the complex operational challenges of maintaining its operations while ensuring the safety of its employees and minimizing the risk of spreading the virus.
- Ethical considerations: ArcelorMittal faced ethical dilemmas regarding its responsibilities to its employees, the Liberian community, and its shareholders.
Strategic considerations:
- Risk management: ArcelorMittal needed to assess and manage the risks associated with the Ebola outbreak, including the potential for disruption to its operations, employee health, and reputational damage.
- Stakeholder engagement: The company needed to engage with various stakeholders, including the Liberian government, employees, local communities, and international organizations, to ensure a coordinated response to the crisis.
- Long-term sustainability: ArcelorMittal needed to consider the long-term implications of the Ebola outbreak on its operations in Liberia and its commitment to sustainable development in the country.
Financial considerations:
- Financial impact: The outbreak had a significant financial impact on ArcelorMittal, disrupting operations and reducing revenue.
- Investment decisions: The company needed to make strategic investment decisions to support its operations and contribute to Liberia's recovery.
- Financial sustainability: ArcelorMittal needed to ensure the financial sustainability of its operations in Liberia in the long term.
4. Recommendations
ArcelorMittal should implement the following recommendations to address the Ebola crisis and support Liberia's economic recovery:
1. Public Health and Employee Safety:
- Prioritize employee health and safety: Implement strict protocols for screening, testing, and isolation of employees with potential exposure to Ebola.
- Provide comprehensive training and education: Educate employees about Ebola transmission, prevention, and treatment.
- Ensure access to quality healthcare: Provide employees and their families with access to quality healthcare services, including testing, treatment, and support.
- Collaborate with local health authorities: Partner with the Liberian Ministry of Health and international organizations to strengthen public health infrastructure and response capabilities.
2. Community Engagement and Development:
- Support community health initiatives: Invest in community-based health programs to raise awareness, promote prevention, and provide essential healthcare services.
- Promote economic recovery: Support local businesses and entrepreneurs through job creation programs, training initiatives, and financial assistance.
- Invest in infrastructure development: Contribute to the development of essential infrastructure, such as roads, schools, and hospitals, to improve living conditions and economic opportunities.
- Promote sustainable development: Implement sustainable practices in its operations and support initiatives that promote environmental protection and social responsibility.
3. Government and International Partnerships:
- Engage with the Liberian government: Collaborate with the government to develop and implement a comprehensive strategy to address the Ebola crisis and support economic recovery.
- Partner with international organizations: Work with organizations like the World Health Organization, the World Bank, and the United Nations to access resources, expertise, and support.
- Advocate for policy reforms: Support policies that promote economic growth, good governance, and sustainable development in Liberia.
5. Basis of Recommendations
These recommendations are based on the following considerations:
- Core competencies and consistency with mission: ArcelorMittal's core competencies in mining, processing, and infrastructure development can be leveraged to support Liberia's recovery. The company's mission of sustainable development aligns with the need for long-term solutions to the Ebola crisis.
- External customers and internal clients: ArcelorMittal's stakeholders, including employees, local communities, and investors, expect the company to act responsibly and ethically during the crisis.
- Competitors: By demonstrating leadership and commitment to social responsibility, ArcelorMittal can enhance its reputation and competitive advantage in the global mining industry.
- Attractiveness: The recommendations are attractive because they offer a balanced approach to addressing the Ebola crisis while supporting Liberia's economic recovery and enhancing ArcelorMittal's long-term sustainability.
6. Conclusion
ArcelorMittal's response to the Ebola outbreak in Liberia presents a complex case study in corporate social responsibility, globalization, and emerging markets. The company's actions during the crisis will have a lasting impact on its reputation, its relationship with the Liberian government and people, and its ability to operate sustainably in the region. By implementing a comprehensive strategy that prioritizes public health, employee safety, and community engagement, ArcelorMittal can demonstrate its commitment to social responsibility and contribute to a brighter future for Liberia.
7. Discussion
Other Alternatives:
- Complete withdrawal from Liberia: This would have minimized risk for ArcelorMittal but would have had a devastating impact on the Liberian economy and workforce.
- Minimal intervention: This approach would have been less costly but would have undermined the company's reputation and social responsibility.
Risks and Key Assumptions:
- Risk of further outbreaks: The Ebola virus could re-emerge, requiring continued vigilance and preparedness.
- Economic instability: Liberia's economy may face challenges in the long term, requiring ongoing support from ArcelorMittal and other stakeholders.
- Political instability: Political instability in Liberia could create challenges for ArcelorMittal's operations and its ability to implement its strategy.
8. Next Steps
- Develop a detailed implementation plan: Outline specific actions, timelines, and resources required to implement the recommendations.
- Establish a dedicated task force: Assemble a team of experts from ArcelorMittal, the Liberian government, and international organizations to oversee the implementation of the strategy.
- Monitor progress and adapt as needed: Regularly assess the effectiveness of the strategy and make adjustments based on evolving circumstances.
- Communicate transparently: Ensure open and transparent communication with all stakeholders about the company's actions and progress.
By taking these steps, ArcelorMittal can navigate the challenges of the Ebola crisis and emerge as a responsible corporate citizen committed to the sustainable development of Liberia.
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Case Description
During the summer of 2014, Alan Knight, General Manager of Corporate Responsibility at the integrated steel and mining company ArcelorMittal, observed the unfolding of an Ebola epidemic in Liberia and other countries in West Africa with great concern. On the one hand was the sheer tragedy of the calamity that struck the poverty-stricken country, recently emerged from a long and painful civil war; on the other, the fact that ArcelorMittal's mining concession in Liberia was a crucial part of the company's business going forward. How was ArcelorMittal to face the mounting crisis? What response did it owe its employees? Its shareholders? Its stakeholders? Given the low state capacity in Liberia, ArcelorMittal helped organize a private sector response to the crisis, and, as a pandemic finally was averted, he wondered what lessons to draw from the experience.
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