Wilmar Case Study
Issues in this case
Friends of the Earth International (FOEI) has made allegations that Wilmar is practicing unethical business behavior by exploiting natural resources and local communities and violating the local laws and regulations. There is a possible ethical issue of Wilmar pursuing profits over environmental and social well-being.
There are namely four key allegations made by FOEI. First of all, it is alleged that Wilmar is clearing land by the use of fire and is being sued by the Indonesian authorities.
Secondly, Wilmar has violated an Indonesian law that requires approval of the Environmental Impact Assessment (EIA) before palm oil development begins. Furthermore, FOEI also claimed that Wilmar is guilty of unprofessional EIA with
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Locals may be unwilling to cooperate with Wilmar on their plantation projects if Wilmar is indeed violating the rights of the local communities by clearing land with customary rights. It may be hard for Wilmar to continue its operations in Indonesian if they do not have the support of the locals as they have the rights to the land and resources. The livelihood of locals can be potentially threatened by Wilmar’s operations as majority of them depend heavily on agriculture as their main source of income. However, Wilmar claims that preference is given to the local communities in terms of job opportunities and ninety percent of them are …show more content…
The government may impose a restrictions on Wilmar’s operations in Indonesia if Wilmar is indeed violating legal regulations. For instance, the Ministry of Environment has ordered Wilmar to halt activities as their Environmental Impact Assessment (EIA) has yet to be approved. It is also claimed by FOEI that the Indonesian authorities are suing Wilmar for intentional and systematic illegal burning of forest. Wilmar would suffer from considerable losses if they are unable to continue operations in Indonesia as it is one of primary continents they focus
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