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Thursday, May 11, 2017

Why Aren’t Corporations Required to be Socially Responsible? by Yves Engler from DissidentVoice.org

Why Aren’t Corporations Required to be Socially Responsible?

Imagine if a corporation had to justify its existence beyond making money for capitalists. What would happen if a social balance sheet, as well as financial one, had to be filed every year and companies continually in a deficit position would eventually disappear?
Consider Barrick Gold. Would the world be better off if the world’s largest gold miner ceased to exist?
Pick a continent and you will find a Barrick run mine that has ravaged the environment and spurred social tension. Present at the company’s recent shareholders meeting in Toronto were two women from Papua New Guinea who say they were raped by Barrick security. A few hundred women have been sexually assaulted by company employees near its Porgera mine in the Oceanian country. While the company has provided nominal compensation to some sexual assault victims, in 2011 Barrick founder Peter Munk dismissed the matter in a Globe and Mail interview, claiming “gang rape is a cultural habit” in Papua New Guinea.

Three weeks before the shareholder meeting Barrick’s Veladero mine in Argentina spilled cyanide solution into a handful of rivers in the western San Juan province. This was the third major cyanide spill at the mine in 18 months. An Argentinian court fined Barrick US$9.3-million for spilling one million litres of cyanide into five rivers in September 2015 and is set to impose further fines and restrictions on its operations over its failure to complete mandated improvements that could have prevented the third spill. 270,000 people have signed a petition calling on Argentina’s president to shutter the Veladero mine.
In 2014, reported the National Observer, Barrick dismissed a senior engineer allegedly for raising “serious safety concerns” about the Veladero mine. Raman Autar later sued Barrick in Canadian court for wrongful dismissal.
It’s unknown whether Autar’s warning could have prevented the cyanide spills, but it’s clear the company has repeatedly ignored environmental concerns and targeted those trying to curtail its ecological devastation. In 2009 former Argentine environment minister Romina Picolotti told a foreign affairs committee meeting to discuss bill C300, which would have reduced Ottawa’s support for the worst corporate offenders abroad, that her staff was “physically threatened” after pursuing environmental concerns about Barrick. “My children were threatened. My offices were wiretapped. My staff was bought and the public officials that once controlled Barrick for me became paid employees of Barrick Gold.”
On the other side of the globe the Toronto company is pressuring the Tanzanian government to abandon an effort to increase the domestic economic benefits from its natural resources. A majority-owned Barrick subsidiary, Acacia Mining is threatening to withdraw from the East African country if the government doesn’t rescind a measure to halt the export of unprocessed ore. Tanzania wants foreign companies to build more gold smelters in the country. By shuttering its operations Barrick is hoping the short-term loss in employment will pressure the government to back off of its efforts to increase the country’s stake from its natural resources.
Last year a Tanzanian tribunal ruled that Barrick organized a “sophisticated scheme of tax evasion” in the East African country. As its Tanzanian operations delivered over US$400-million profit to shareholders between 2010 and 2013, the Toronto company failed to pay any corporate taxes, bilking the country out of $41.25 million.
Two weeks ago Canadian Journalists for Free Expression published a statement decrying the “persecution…journalists in Tanzania are facing… for reporting on mines operated by Acacia Mining.” One reporter fled the country after being threatened by individuals reportedly associated with the company and another received a notice from the government to stop reporting on Acacia.
Since 2006 security and police paid by Barrick have killed at least 65 people at, or in, close proximity, to the Toronto company’s North Mara in Tanzania. Most of the victims were impoverished villagers who scratch rocks for tiny bits of gold and who mined these territories prior to Barrick’s arrival.
Within Canada Barrick is a right wing political force. Benefiting from Canadian aid money, Export Development Canada financing and diplomatic support, the company has aggressively opposed moves to withhold diplomatic and financial support to Canadian companies found responsible for significant abuses abroad. Barrick is part of regional corporate lobby groups the Canadian Council of the Americas and the Canadian Council on Africa, as well as being represented on the Senate of the Canadian International Council and the board of the C.D. Howe Institute. The company has sponsored various other right wing groups and events.
Founder and long-time Barrick CEO Peter Munk has provided at least $60 million (he receives tax credits for donations) to right-wing think tanks such as the Fraser Institute and Frontier Centre for Public Policy as well as the Munk Debates and University of Toronto’s Munk School of Global Affairs. In 2010 the Fraser Institute gave Munk its most prestigious award “in recognition of his unwavering commitment to free and open markets around the globe.”
If it had to justify its existence beyond making money for capitalists Barrick, which mainly produces a mineral of limited social value anyways, would have ceased to exist and the world would be better off.

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