Saturday, January 28, 2012

Hanjin Subic: Turning Rainforests into Slums


 

Comment from a reader on the post The Hanjin Killing Fields of Subic:

Concerns over changing the conditions of the investment by obligating Hanjin to treat their workers decently and make minimal investments in a safe workplace are ridiculous. When governments grant concessions to large investors — especially a deal as attractive as Hanjin's — the implicit bargain is that they will be good corporate citizens. Good companies stress safety, if for no other reason, because dead bodies are bad for business. Also keep in mind that negligence when it leads to deaths is a crime. The Philippine Government may just need to apply the law to everyone, even Korean shipbuilders.

From the Bugle;
Sadly, these factors don’t appear to be at play when it comes to the Hanjin investment in Subic. The investment is huge – it is the fourth largest shipbuilding facility in the world – and Subic administrators were desperate for investment so they sold out on even the most basic worker protection. They also allowed Hanjin to build a Korean tenement building in the middle of the Subic rainforest so their management would not need to associate with local people.

There is no market incentive for Hanjin to operate responsibly. Their customers are energy companies buying multi-million dollar tankers. They have zero interest in corporate social responsibility. They are interested in 1. quality and 2. cost.

Also, the Hanjin shipyard is located in a remote area of Subic Bay. SBMA officials need to ask permission and seek transport in order to inspect the Hanjin site. But that is generally not necessary as Hanjin’s compliance with worker safety, environmental regulations and other laws is done on an honor basis.

Unfortunately, Hanjin has showed itself to be a dishonorable company.

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