ABB’s Hydropower Sustainability Dilemma
Because:
- This company does a great job at assessing the risk that is involved
- ABB did their best to mitigate the damage
- In the past, ABB decided not to be involved in the Ilisu Dam in Turkey
- They were worried because a company that isn’t concerned about the environment could have taken the job
- They wanted to do their best on protecting the environment and the people living in it
Blaz Lelov, Han Lin & Scott Holmes
How should ABB’s management acknowledge this letter?
In what way did the International Rivers letter question ABB’s reputation?
- Need to address all the issues they violated
- Focus on the pros and cons of the program
- Consider the position of it’s stakeholders
- Human rights-clean watter
- ABB didn’t provide an irrigation system that worked
- ABB failed to compensate villagers for their loss of land and food
Which stakeholders are affected by this project?
- The government
- World bank
- ABB employees
- The villagers
- Other investors that gave loans to ABB to accomplish this project
PROS
CONS
• Will substantially increase the GDP of the country
• Allows economic development in Laos
• Provides other sources of energy for Laos (non carbon based)
• Will create thousands of jobs for villagers
• Harms the environment
• Negative publicity for the company
• Potential loss of business
• Failure to complete project
Was it a good idea for ABB to take on this project?
YES