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Executive Summary

This report examines the ethical dilemmas surrounding modern slavery in the Australian mining company, Rio Tinto, with a focus on its supply chain practices. Rio Tinto, one of the world’s largest mining companies, has recently been implicated in modern slavery through one of its suppliers. The report evaluates four possible scenarios and provides an analysis based on deontological and consequentialist perspectives. After careful consideration, Scenario 4—restructuring the supply chain and implementing rigorous ethical audits—is recommended as the most responsible course of action. This approach aligns with Rio Tinto’s commitment to ethical leadership and long-term business sustainability.

Background

Rio Tinto is a multinational corporation that operates in the global mining industry, with significant operations in Australia. As a key player in mining, Rio Tinto has a diverse supply chain that includes subcontractors and labor-hire companies. The company is known for producing iron ore, bauxite, and other valuable minerals. However, its operations have recently come under scrutiny due to allegations of modern slavery in its supply chain. This report provides an ethical analysis of four scenarios and recommends a course of action that aligns with the company’s values and the ethical standards expected of a global leader in the mining sector.

Scenario Analysis

Scenario 1: Do Nothing

Doing nothing against slavery in the field of supply chain operating within the mining industry is catastrophic against human rights. The subsequent paragraph will discuss in detail, the deontological perspective, consequentialist perspective, and its risk factor under the scope of scenario one.

1. Deontological Perspective:

According to Barrow and Khandhar (2023) deontology is a normative ethical theory which is based on rules and professional and ethical duties, determining what a person or an organisation should be doing. This approach helps in determining if any action is right or wrong, rather than focusing on the consequences. Rio Tinto is obliged to comply to the ethical laws and principles, which is to make sure that the operational activities of the organisation does not violate human rights (Rio Tinto, 2024). In this view, modern slavery in the mining industry is inherently unethical because it violates fundamental moral principles, such as the right to justice for individuals which is an important aspect of deontology (Dacin et al., 2022). This not just violates justice aspect, but also negatively points towards other deontological principles such as spirituality and religion (Saroglou & Craninx, 2021). Therefore, using forced labor or exploiting workers in mining operations and not taking any action, would be considered immoral.

2. Consequentialist Perspective:

Unlike deontology, consequentialism bases the morality of actions on the outcomes or consequences of the actions (Horta et al., 2022). Viewing from this lens, modern slavery in the mining industry through supplier might be considered based on the outcomes it produces for workers, companies, and consumers. From the labour perspectives, doing nothing against modern slavery will result in mental and physical health risks (anxiety, PTSD, ADHD, suicidal thoughts) of the labours (Wright et al., 2021). The effect will also damage the reputation of the company due to possible legal implications and violence against human rights. Another implication would be unstable stakeholder relationships with investors, customers, and regulatory bodies(Hess, 2021; Ahmed et al., 2022). Moreover, the scenario also relates to ethical egoism, as the organisation will act in its own interest if it does not speak up against modern slavery, opposing the essence of ethical altruism which recommends people to work for the benefit of others and prioritise the wellbeing of others over their own wellbeing (Aslam, 2019).