HANCOCK PROSPECTING: STAKEHOLDER TENSIONS WITH
NETBALL AUSTRALIA CASE STUDY SOLUTION
e
pl
SYNOPSIS
m
Sa
In October 2022, Gina Rinehart, the chair of Hancock Prospecting Pty. Ltd. (HPPL), was negotiating a
sponsorship partnership worth AU$15-million2 with Netball Australia (NA), which was $7 million in debt.
HPPL had previously sponsored Netball Western Australia athletes, Indigenous communities, and other
n
organizations. Kelly Ryan, NA’s chief executive officer, had just announced that Donnell Wallam would
join the national team as the third ever Indigenous Australian player on the Diamonds team. However, in
tio
1984, the founder of HPPL (Rinehart’s father) had stated on national television, “I would dope the water
up so that they [Indigenous Australians] were sterile and would breed themselves out in the future.” 3 This
made the proposed partnership particularly controversial. Wallam and other players raised concerns about
lu
HPPL as a sponsor, considering the founder’s racist statement. In addition, some players wondered publicly
if taking money from a fossil fuel mining organization would be consistent with NA’s environmental
So
The Case Solution Starts From page 6
,OBJECTIVES
• Complete a comprehensive analysis of the key stakeholders, including the power distance between
organizations and individuals.
• Analyze the application of traditional economic theory and finance logic in a not-for-profit sports setting.
• Demonstrate an awareness of Indigenous considerations (i.e., cultural competency) when engaging in
business decisions.
• Apply normative stakeholder theory, which holds the underlying moral principle to “do the right thing.”
• Analyze the ethical decision-making process of an organization to determine whether all key
stakeholders are viewed as legitimate partners.
e
pl
m
Sa
n
tio
lu
So
The Case Solution Starts From page 6
,ASSIGNMENT QUESTIONS
1. What are the moral and commercial implications for NA’s and HPPL’s key stakeholders?
2. What risks exist for all key stakeholders involved?
3. As an advisor to Ryan before negotiations were formally announced, what insights would you have
offered from the perspective of a stakeholder?
e
4. Considering their history in racial justice and the treatment of Indigenous communities, did NA and
HPPL demonstrate ethical decision-making toward netball players and Indigenous communities as
pl
legitimate stakeholders?
5. How should Rinehart proceed with the proposed sponsorship deal?
m
Sa
n
tio
lu
So
The Case Solution Starts From page 6
, e
pl
m
Sa
n
tio
ANALYSIS
1. What are the moral and commercial implications for NA’s and HPPL’s key stakeholders?
lu
So
(see Exhibit -1).
align each stakeholder with the corresponding needs, moral lens, and positioning of power.
Students should consider the 17 United Nations Sustainable Development Goals (SDGs) for reference (see
Supplementary Materials). Each stakeholder should align to at least one of the 17 SDGs, although some
stakeholders may not be a clear match for any of them.
The SDGs were developed by the United Nations in 2015 to guide its 2030 sustainable development agenda
across the globe, which includes governments, businesses, and not-for-profit organizations. The goals are
designed to address global issues such as poverty, access to health, education, and clean water, while
addressing climate change, inequality, gender disparity, and other issues.
As an alternative to creating a table for this information, students can draw a diagram depicting the various
stakeholder relationships and showing where the power or influence in the relationship lies.
The Case Solution Starts From page 6
, EXHIBIT -1: MORAL AND COMMERCIAL IMPLICATIONS FOR KEY STAKEHOLDERS
Stakeholder Needs Moral Ethical Lens Positioning of power
Gina Rinehart • Maintain a reputation Freedom to pursue self-interest— • As the wealthiest person in
(Chair of as a generous This ethical lens aligns with Australia, Rinehart has a
Hancock philanthropist as well economic rationalism or lot of formal and informal
Prospecting as a conservative neoliberalism power—the power to
Pty. Ltd.) leader • provide funding and power
• Honour father’s to withdraw funding of
legacy sporting and media
• Continue to lead a organizations and others in
financially successful their supply chain
iron ore business • Rinehart also has a lot of
power from a legal
perspective, with the ability
to silence many critics
e
• Rinehart is not subject to
stock exchange
pl
requirements, nor pressure
from institutional investors
m
Hancock • •
Prospecting
Pty. Ltd. •
Sa
•
n
tio
•
lu
So
Netball • •
Australia
•
•
•
•
The Case Solution Starts From page 6
NETBALL AUSTRALIA CASE STUDY SOLUTION
e
pl
SYNOPSIS
m
Sa
In October 2022, Gina Rinehart, the chair of Hancock Prospecting Pty. Ltd. (HPPL), was negotiating a
sponsorship partnership worth AU$15-million2 with Netball Australia (NA), which was $7 million in debt.
HPPL had previously sponsored Netball Western Australia athletes, Indigenous communities, and other
n
organizations. Kelly Ryan, NA’s chief executive officer, had just announced that Donnell Wallam would
join the national team as the third ever Indigenous Australian player on the Diamonds team. However, in
tio
1984, the founder of HPPL (Rinehart’s father) had stated on national television, “I would dope the water
up so that they [Indigenous Australians] were sterile and would breed themselves out in the future.” 3 This
made the proposed partnership particularly controversial. Wallam and other players raised concerns about
lu
HPPL as a sponsor, considering the founder’s racist statement. In addition, some players wondered publicly
if taking money from a fossil fuel mining organization would be consistent with NA’s environmental
So
The Case Solution Starts From page 6
,OBJECTIVES
• Complete a comprehensive analysis of the key stakeholders, including the power distance between
organizations and individuals.
• Analyze the application of traditional economic theory and finance logic in a not-for-profit sports setting.
• Demonstrate an awareness of Indigenous considerations (i.e., cultural competency) when engaging in
business decisions.
• Apply normative stakeholder theory, which holds the underlying moral principle to “do the right thing.”
• Analyze the ethical decision-making process of an organization to determine whether all key
stakeholders are viewed as legitimate partners.
e
pl
m
Sa
n
tio
lu
So
The Case Solution Starts From page 6
,ASSIGNMENT QUESTIONS
1. What are the moral and commercial implications for NA’s and HPPL’s key stakeholders?
2. What risks exist for all key stakeholders involved?
3. As an advisor to Ryan before negotiations were formally announced, what insights would you have
offered from the perspective of a stakeholder?
e
4. Considering their history in racial justice and the treatment of Indigenous communities, did NA and
HPPL demonstrate ethical decision-making toward netball players and Indigenous communities as
pl
legitimate stakeholders?
5. How should Rinehart proceed with the proposed sponsorship deal?
m
Sa
n
tio
lu
So
The Case Solution Starts From page 6
, e
pl
m
Sa
n
tio
ANALYSIS
1. What are the moral and commercial implications for NA’s and HPPL’s key stakeholders?
lu
So
(see Exhibit -1).
align each stakeholder with the corresponding needs, moral lens, and positioning of power.
Students should consider the 17 United Nations Sustainable Development Goals (SDGs) for reference (see
Supplementary Materials). Each stakeholder should align to at least one of the 17 SDGs, although some
stakeholders may not be a clear match for any of them.
The SDGs were developed by the United Nations in 2015 to guide its 2030 sustainable development agenda
across the globe, which includes governments, businesses, and not-for-profit organizations. The goals are
designed to address global issues such as poverty, access to health, education, and clean water, while
addressing climate change, inequality, gender disparity, and other issues.
As an alternative to creating a table for this information, students can draw a diagram depicting the various
stakeholder relationships and showing where the power or influence in the relationship lies.
The Case Solution Starts From page 6
, EXHIBIT -1: MORAL AND COMMERCIAL IMPLICATIONS FOR KEY STAKEHOLDERS
Stakeholder Needs Moral Ethical Lens Positioning of power
Gina Rinehart • Maintain a reputation Freedom to pursue self-interest— • As the wealthiest person in
(Chair of as a generous This ethical lens aligns with Australia, Rinehart has a
Hancock philanthropist as well economic rationalism or lot of formal and informal
Prospecting as a conservative neoliberalism power—the power to
Pty. Ltd.) leader • provide funding and power
• Honour father’s to withdraw funding of
legacy sporting and media
• Continue to lead a organizations and others in
financially successful their supply chain
iron ore business • Rinehart also has a lot of
power from a legal
perspective, with the ability
to silence many critics
e
• Rinehart is not subject to
stock exchange
pl
requirements, nor pressure
from institutional investors
m
Hancock • •
Prospecting
Pty. Ltd. •
Sa
•
n
tio
•
lu
So
Netball • •
Australia
•
•
•
•
The Case Solution Starts From page 6
