During the international economical depression, we’ve read that Stora Enso is shutting down factories and paper machines in Imatra, Kotka, Varkaus and Kemi. In the past five years Stora Enso has invested three billion euros abroad and one of the biggest investments has been Brazilian eucalyptus plantation.
This is what Stora Enso is been accused for:
Illegal expansion of eucalyptus plantations.
Changing boundaries without authorities permission.
Forging documents.
Generous and controversial donations to politics.
Causing environmental destruction.
Hard core stuff, ha? Let’s take a closer look.
The Stora Enso gold nugget, the Eunápolis eucalyptus pulp mill was completed in 2005. Since then the 100.000 inhabitants of Eunápolis city have been complaining. According to local civic groups, the city is sinking into poverty: all farmland is filled with eucalyptus trees and farmers are forced to move to the slum areas, and due to that, insecurity is increasing, housing prices have exploded and local business is suffering. Promises of thousands of jobs haven’t been realized: in 2006 the pulp mill directly employed 741 people.
Under Brazilian law, a foreign company can’t own land closer 150 kilometers to a national border. Well, Stora Enso got greedy and bought land from that national border zone – but they bought it using different company name. The undercover firm “Azenglever Agropecuária Ltd.” was registered as a Brazilian company and it was owned by two of Stora Ensos managers.
But the Brazilian authority dealing with land issues, smelled a rat. It suspected “Azenglever Agropecuária Ltd.” to be a fake. The national security council granted the right to use land in the border zone, but Stora Enso had already started to plant eucalyptus trees in the zone area without a license. They were breaking the law.
In addition, at this point the local inhabitants started to accuse Stora Enso of pollution. They argued that eucalyptus plantations were leading to monoculture, which causes ground water to dry up and become polluted.
Stora Enso has also invested in Brazilian politicians and candidates. Ironically, “the corporate responsibility report” says that Stora Enso paid more than a million real (about 365.000 euros) in election contributions. Lavish donations took place in all political levels: campaigns for the president, governors, senators and state representatives.
…And now, classmates. I’d like to ask you what kind of personal thoughts did this text provoke? Is it only me who thinks Stora Enso acts like a massive liar and corrupted abuser, which wastes natural resource?
Reference: This blog post is based on an articles published in Helsingin sanomat 15.6.2009 and 5.9.2009 by Jaakko Lyytinen and Tommi Nieminen.
Writer: Katja Ruokamo
Posts
Hi!
ReplyDeleteAre you talking about the mill Veracel which is the result of a partnership between two leading companies of the international pulp and paper sector — Fibria of Brazil and Stora Enso.
We wrote an essay about this case with Suvi Hurri. And we found that Stora Enso has done also something good in Barzil.
They e.g. have paid better salary, Stora Enso has bought large areas of land, they have also encouraged small landowners to plant eucalyptus....
There is always two sides in every case.
I recommed you to look information from other sources too.
http://www.sask.fi/julkaisut/tyomaana_maailma_2006/suomi-sellun_oppivuodet_etela-am/
http://www.finnwatch.org/pdf/StoraEnsonet.pdf
http://www.mstbrazil.org/?q=about
http://www.veracel.com.br/en/
Yes, Essi, I am well aware that you wrote an essay about this theme with Suvi. :) And I know there's the brighter side in this Stora Ensos case too. Maybe I should check out those links you sent me and write another blog text?
ReplyDeleteBut still, in my opinion, if Stora Enso has "given" money to several elections, I'd call that controversial operation policy - and even corruption.
And still, if Stora Enso has used fake companies to obtain more land areas for eucalyptus plants, I'd call that lying.
But that's just my opinion. :)
Oh, I forgot. That "Ryhmä-9" comment was written by Katja :)
ReplyDeleteAre these actions done be Finnish people or by local people who just work for Stora Enso?
ReplyDeleteI don't mean to say that the nationality would make a difference. But it would be interesting to know, because in every country there is different kinds of habbits.
In China it is normal to give money as a "presents" when making a deal, but to me that sounds like bribing.. What is wrong in our point of fiew, isn't necessarily seen wrong in other places.
Sometimes also individual can make wrong decisions or act incorrect way which can easily calumniate organisation where he/she is connected.
Still it is unfortunate that Finnish company is associated with such a bad news. This will also effect on organisations reputation.