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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

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