Business Ethics: Alpha Metallurgical Resources

Alpha Metallurgical Resources
Student’s Name:
University Affiliation:
Instructor’s Name:
Course Number and Name:
Assignment Due Date:
Introduction
Alpha Metallurgical Resources Inc. is a coal company based in the United States. It produces thermal coal, used to generate electricity, and metallurgical coal, used in steel production. Alpha has a long history in the coal industry, having been formed in 2002 through the merger of three other coal companies. It has grown considerably since then, acquiring other companies such as Massey Energy Co. in 2011 (Saul et al., 2022). However, in recent years, the company has faced financial difficulties as the demand for coal has declined due to the rise of natural gas and other energy sources. Alpha filed for bankruptcy in 2015 but has since emerged and restructured.
Situation summary
Alpha Metallurgical Resources Inc. transferred old mines needing cleanup to smaller companies, freeing itself from the responsibility to restore the land. These smaller companies have been cited for numerous environmental violations and have not made much progress in restoring the land, leaving taxpayers at risk of footing the bill. Alpha Metallurgical Resources Inc. faced financial difficulties in 2015 and filed for bankruptcy. To emerge from bankruptcy, the company cut costs and shed liabilities. One way it did this was by transferring old mines and their cleanup obligations to smaller companies. As a result, Alpha was able to exit bankruptcy and is now profiting from a surging coal market (Saul et al., 2022). However, the smaller companies responsible for cleaning up the mines have not made much progress and have been cited for numerous environmental violations. If these companies go bankrupt, taxpayers may have to pay for the cleanup. There are several potential causes for this ethical failure. One is greed. Alpha wanted to shed its liabilities to emerge from bankruptcy and become profitable again. It did not seem to care whether the smaller companies it transferred the mines to would be able to clean them up. Another potential cause is a lack of regulation. Alpha could transfer the mines and cleanup obligations without much interference from regulators. The bankruptcy system also allows companies to shed liabilities, including environmental and labor obligations, which may have contributed to this ethical failure. Finally, the smaller companies that took on the mines may not have been well-equipped to handle the cleanup due to a lack of resources or expertise.
CSR Model fit for the company
Given the environmental damage and community impact that this company has caused through its mining operations, an integrative model of corporate social responsibility (CSR) would be most appropriate. This model moves beyond just looking at how a company can reduce any negative impacts on society and instead focuses on proactively improving the communities and environments in which the company operates. Friedman (1970) is skeptical of businessmen who claim that they are motivated by "social responsibility" in addition to profit. The author argues that any discussion of social responsibility should clarify who exactly is supposed to be responsible and what that responsibility entails (...