Abstract
In July 2008, Pacific Rim Mining, a socially responsive Canadian gold mining Multinational Corporation (MNC) with $77 million invested in El Salvador, experienced a 30% decline in stock price when it suspended exploration drilling for gold there. In April 2009, the company filed a lawsuit against the government of El Salvador through Central American Free Trade Agreement to recover its investments plus damages. This corporate failure is explored based on: (1) four globalization economic development models, (2) the social, political, and economic history of El Salvador, (3) the El Salvador gold mining industry, and (4) social movement reactions to international mining companies. MNCs must carefully engage “Social Justice” Nongovernment Organizations when pursuing economic development projects to ensure a nation’s successful integration into the global economy.
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Collins, D. The Failure of a Socially Responsive Gold Mining MNC in El Salvador: Ramifications of NGO Mistrust. J Bus Ethics 88 (Suppl 2), 245–268 (2009). https://doi.org/10.1007/s10551-009-0288-5
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DOI: https://doi.org/10.1007/s10551-009-0288-5