Communication in Business Case

 Communication in Business 100

Critical Essay

Name: WANG LEE  YEN

Student Number: 17132220/7E2A9984

Student Email Address: leeyen25@live.com

Tutor’s Name: MS. NOR AFIFAH MOHD SHUKRAN

Tutorial Day and Time: Wednesday, 10am-12am

Name of the Company: Sime Darby 

Semester and Campus Detail: Semester 1, 2013 - Sarawak  

Essay Tittle: Study the activities carried out by Sime Darby

Word Count: 1548

To study the activities carried out by Sime Darby to the society

There is an interaction between business and society in today’s world. Activities carried out by the business for example goods and services the business want to produce affect the society that brings positive or negative impact. Today’s Sime Darby Company is made up of three companies which is Guthrie & co, Harrisons & co and Sime Darby & co. (Sime Darby) Sime Darby was established in the year 1910 in Malacca. Sime Darby is now one of Malaysia’s biggest multinational cooperation.(Sime Darby) There is six sector of Sime Darby which is plantation, property, industrial, motors, energy & utilities and lastly healthcare. Besides, Sime Darby has focused on maintaining the shareholders’ value and devolving on society and environment. Sime Darby has an agreement with the government of Liberia which focus on human rights principle in maintaining stakeholders’ value. The company has also carried out various activities which focus on environment principle. This essay will basically focus on the achievement and impact in terms of environment and human rights to the society and stakeholders.

The case against Sime Darby

Sime Darby agreement in taking up the land in Liberia for plantation is an example of how society losses trust in certain business. This happen when Sime Darby breach the contract with Liberia government.( Besta 2013,17) There are a few environmental effects on the land of Liberia caused by Sime Darby’s operations. Sime Darby has said in the environmental conservation plan that they will protect the riparian area which is important to the local communities by planting oil palm 20m away from that area.( Besta 2013,17)However, Sime Darby was fined by the EPA with the amount of $50,000. (Besta 2013,18) Sime Darby has also said they will pay wages to their employees based on the price stated in the Collective Bargaining Agreement which is $ 5.25 a day. Some of the employees have voice out that they receive less than $ 2 a day. (BESTA 2013,19)  All this has caused Sime Darby reputation to drop.

Sime Darby has come out with a rule that whoever want to farm concession must ask permission from them and local communities are not allow to sell their crops to others. They can only use the crops for the family. (Besta 2013, 24) By doing so, it has caused the communities to loss their income. Besides, Sime Darby has made the local communities to hate them.  Grand Cape Mount, Bomi and Gbarpolu is the country that is rich in diamond but after Sime Darby has come, the local communities do not know what Sime darby is going to do to their land. They fear that they lost everything.  The communities also said that they fear that Sime Darby is going to destroy their streams and pollute the water. “There will be no more drinking water if there is Sime Darby”. (Besta 2013,25)  This shows that Sime Darby does not take consideration about the communities and they do not respect the rights of the communities.