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Business Ethics

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Business Ethics
BUSINESS ETHICS
ASSIGNMENT –
TASK 3

CONTENTS
Introduction………………………………………………………………………………………………………….…Pg 3
Background on Asia Pulp and Paper Co’…….………………………………………………….……..Pg 4
Question of Ethics – Deforestation and Illegal logging……………………………………….…Pg 5
Wildlife Extinction…………………………………………………………………………….……………………Pg 6
APP becoming sustainable…………………………………………………………………….……………….Pg 8
Recommendations to live and operate sustainably ……………………….…………………….Pg 9
Ethical code for APP……………………………………….……………………………..……………………..Pg 11
Conclusion.…………………………………………………………….………………………………………...…..Pg 12
References.…………………………………………………………….……………………………………….…...Pg 13

INTRODUCTION

This report aims to analyse and research ethical issues faced by corporations in the paper produce industry. The corporation chosen to be analysed is Asia Pulp and Paper Co. Headquartered in Jakarta, Indonesia, its main business activities- primarily logging– to produce pulp and manufacture paper - takes place in the forests of Indonesia and China. This report will study the various practices of the corporation, the issues it faces from an ethical standpoint of Non- Governmental Organisations (NGO’s), how the corporation reacts to the criticism and if they do anything at all to operate sustainably and to minimize damages done to the Indonesian forests and its surrounding ecosystem which not only are habitats and breeding grounds to various animals such as the Sumatran Tiger and Orang Utans – which is close to extinction- but also to the quickly diminishing indigenous groups of Indonesia.

Background information on Asia Pulp and Paper Co. (APP)

Founded in 1972 under Patriarch Eka Tjipta Widjaja, Asia Pulp and Paper Co. was originally a caustic soda company. In 1978, the company started producing paper at 12,000 tons per year. Indah Kiat Perawang was formed as a joint venture between CV Berkat (an Indonesian company), Chung Hwa Pulp Corporation and Yuen Foong Yu Paper Manufacturing Company Ltd.

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