The case presents a responsible investment dilemma case. Swedish institutional responsible investors have to make a choice about their investment in Lonmin, a platinum mining company whose operation are located in South Africa and has been the theatre of workers’ killings.
The case targets MBA students and can be taught in a corporate finance course, a corporate governance course, a business ethics course or on sustainable and responsible investment.
The teaching case follows the journey of Hilde Svensson, the head of equities for a Swedish responsible investor. She has been tasked to visit the site of Lonmin in South Africa which is the theatre of a tragic workers’ unrest that led to the killings of 44 workers in August 2012. She must decide what the best responsible investment strategy is to adopt with Lonmin for the future.
Expected learning outcomes
The students are expected to learn about what responsible investment entails and the dilemmas that can be faced by responsible investors. The case also gives insight to business students and the complexities of environment, social and governance (ESG) analysis and how to integrate financial and ESG analysis when you are a responsible investor.
Teaching Notes are available for educators only. Please contact your library to gain login details or email firstname.lastname@example.org to request teaching notes.
CCS 1: Accounting and Finance
This case study was prepared by Associate Professor Stephanie Giamporcaro (University of Cape Town Business School and University of Nottingham Trent Business School) and Marilize Putter, MBA graduate at the University of Cape Town Graduate School of Business (2015). This case was developed by the authors solely for use in a classroom as a teaching tool. The case was prepared from secondary source material which included online media articles, papers and the Farlam Report. Primary data were collected through interviews with journalists and responsible investment practitionners. All the characters depicted in the case study are fictional, even though the case is based on real events of what happened in Lonmin. Scandinavia Bank is a fictional organisation inspired by multiple European responsible investors.
Disclaimer. This case is written solely for educational purposes and is not intended to represent successful or unsuccessful managerial decision-making. The authors may have disguised names; financial and other recognizable information to protect confidentiality.
Giamporcaro, S. and Putter, M. (2018), "Lonmin Plc: mining and responsible investment – dangerous liaisons?", Emerald Emerging Markets Case Studies, Vol. 8 No. 2. https://doi.org/10.1108/EEMCS-03-2017-0045Download as .RIS
Emerald Publishing Limited
Copyright © 2017 Case Writing Centre, GSB, UCT