Social Justice Paper
MBA 575-ON- Environmental and Corporate Responsibility
Date-May 18, 2014
Instructor- Matthias Suthe
Nowadays a lot of company’s activities have a negative impact on environment and people that live in that part of the country. This problem is not new for the world but every day the consequences are getting worth for the nature and for the human’s health. This tendency will be even worth if people will not stop to harm the environment and control companies that having dangerous activities. One of the striking example of negative impact on environment is Axzon A/S company in Ukraine.
Axzon A/S is an agriculture and food production holding company that has its divisions in Denmark, Poland, Ukraine and Russia. The company has more than 730 000 pigs, arable production based on 27 000 ha of land, more than 41 tons of meat and meat products and a making 53.000.000 KW electricity from biogas production. (Axzon.eu, 2014).
Axzon has a written agreement about policy and procedures related to environmental protection that includes following points:
- Axzon obedience with all requirements of environmental law and environmental standards;
- improvement of the conditions and operation;
- open access to the information about company’s impact on the environment;
- balance between company activities and environment;
- the minimal risk from the Azxon manufacturing for the environment and people;
- saving technology for using water and energy;
- using of concept of “green energy”;
- promoting of saving resources methods among partners;
- analyzing an environmental impact and reporting it to the relevant inspections and authorities (Axzon.eu, 2014).
In March 2013 Danish company Axzon has got 70.6 million dollars loan to expand their manufacture in Ukraine. The purpose of the loan is to consolidate and increase production capacity through additional production facility for growing pigs. The description of the project is to build new farms and slaughter house in Ivano-Franvivsk region. The company has opened new farms in that region but people that live there were not satisfied with the company activities. That is why local residents of nearby villages complained to the court with following appeals:
- air pollution and odor , which greatly affects the health and well-being of local population, such as causing dizziness, decrease in appetite and general well-beinglocal communities;
- potential contamination of groundwater and surface water with manure,
- making manure on the field in quantities that exceed regulatory and consequently decrease
ability of fertile soil and land values;
- significant restrictions on access to environmental information about the impacts on the environment, public health and environmental safety of farms;
- substantial limitations for people to be present in the public debate;
- construction and operation of certain facilities of the company in violation of law;