Mining and social development: Refocusing community investment using multi-criteria decision analysis

This paper addresses the question: How can mining companies assess social investment projects so that projects create value for the company and communities in which they operate? Mining companies are still wrestling with the limits of their responsibility in relation to social development even though they accept the business case for community investment at a general level. Fully aware of the practical hazards involved in taking an active role in facilitating local development, companies increasingly avoid methods that are overly paternalistic or assume the functions of the national or local governments. Gaining senior management's commitment to long-term social projects, which are characterised by uncertainty and complexity, is made easier if projects are shown to benefit the site's strategic goals. Case study research on large global mining companies, including interviews with social investment decision makers, has assisted in developing a Social Investment Decision Analysis Tool (SIDAT), a decision model for evaluating social projects. Multi-criteria decision analysis techniques integrating business planning processes with social impact assessment have proved useful in assisting mining companies think beyond seeking reputational benefits, to how they can meet their business goals and contribute to sustainable development.     

Indigenous engagement in Australian mine water management: The alignment of corporate strategies with national water reform objectives

In the mineral rich but arid Pilbara region of Western Australia, managing water constraints represents a significant challenge to the mining sector where local depletion is a growing problem. Conversely, the expansion of pit dewatering is creating surface water excess in localised areas of potentially high social and ecological significance. Indigenous people are by far the longest term residents of the Pilbara region and express a range of strong concerns about past, current and future water-related developments in the area. They also have proprietary interests in water recognised by the common law and protected by federal native title legislation. Rio Tinto Iron Ore (RTIO), commissioned the authors to undertake research to improve corporate understanding of Indigenous interests in water and to provide advice on its consultation processes. We argue here that a more sophisticated account of Indigenous water values is a necessary but, on its own, insufficient measure to achieve RTIO’s desired long-term goals. We suggest an equivalent process of understanding and documenting corporate water values and interests, actions to improve trust and credibility in the relationship between the parties, and leadership in wider catchment management as necessary complementary actions. These actions follow logically from internal corporate commitments regarding water and Indigenous people and from recognition of their property rights, but also align directly with major trends in the National Water Initiative, the key water policy framework for Australia. Therefore significant synergies exist between internal corporate aspirations, the evolving legal regime, and wider governance agendas for a key limiting resource. Our analysis is relevant to a range of CSR and water resource contexts across the wider mining sector.     

Using triple bottom line metrics and multi-criteria methodology in corporate settings

With the growing importance of environmental sustainability in the corporate sector, businesses are compelled to progress from assessing and benchmarking their environmental impact to making decisions on how to prioritize impact reduction alternatives. Most often, business decisions are driven by financial metrics, but with sustainability improvements becoming a business goal, it is also important to assess metrics from environmental and social spheres; nevertheless, practically and systematically performing such an assessment is challenging. We present an application of a multi-criteria decision analysis (MCDA) method that addresses the aforementioned challenges in a corporate setting. Our case study company – one of the largest inland marine freight carriers in the United States – promotes a business culture focused on financially viable, yet socially and environmentally responsible solutions. Thus, we combine life cycle analysis (LCA), financial calculation methods, and corporate surveys to quantify environmental, economic, and social performance measures, respectively. Multiattribute utility theory is integrated with analytic hierarchy processes (AHPs) and fuzzy analysis to create a carefully designed framework for corporations with diverse groups of stakeholders. With company leadership, implementation is feasible and successful at prioritizing alternatives among diverse stakeholders. The process provides a platform for negotiation and promotes discussions on decision drivers. The use of MCDA methodologies promoted the inclusion of a suite of metrics that aligned with the company's sense of social and environmental responsibility, generating an in-depth analysis of the alternatives that factored in other things besides economics. Return-on-investments (ROI) calculations, the typical approach used in the corporate setting, would have required significantly less time and effort from the company, but the results of our MCDA application indicated that inclusion of triple bottom line metrics delve deeper into stakeholder preferences. Thus, our case study company gained a holistic view of the candidate alternatives, in addition to creating a platform for structured discussions about company goals and priorities.     

The road to environmental participatory governance in Taiwan: collaboration and challenges in incineration and municipal waste management

Waste management has been a problem for Taiwanese society over the past two decades due to rapid economic growth and urbanisation. The building of incinerators, however, has stimulated controversies and social discontent over the impacts of incineration on both environmental and human health. In Beitou, a district in the capital city of Taiwan, not-in-my-backyard activism was launched against the building of an incinerator, but the community later promoted the idea of a ‘zero-waste city’ and played a role in the decision by Taipei's government. Using in-depth qualitative interview methods to interview local community actors, and green society members to understand the dynamics between actors, this research discusses these changes and employs the participatory governance approach to networks among residents of the local community and other actors. This paper also concludes that there has been a power shift in state–citizen relationships at the local level, deepening and consolidating democratic politics in Taiwan.     

Stakeholder trust: How do I get it?

A damaged corporate environmental reputation can cost your company business—and may take years to overcome. Building stakeholder trust should be central to every firm's corporate strategy in today's environmentally conscious world. © 2000 John Wiley & Sons, Inc.     

Corporate social responsibility, partnerships, and institutional change: The case of mining companies in South Africa

Internationally and in South Africa, mining companies are increasingly referring to corporate social responsibility (CSR) and partnerships in terms of the business case, or the expectation that being responsible and collaborating with stakeholders is good for profits. Based on a case study of platinum and chrome mining in South Africa, this article argues that the business case is circumscribed by companies’ institutional context. In the past, mining companies’ dominant interpretation of CSR has been in terms of charitable donations and support to good causes. These efforts have not alleviated the contribution of mining companies to growing social problems around the mines, primarily because they have not impacted on core business practices and have not contributed to necessary cross‐sectoral collaboration. Recently, however, there has been an important transition involving the broadening of the interpretation of CSR and increasing commitment to these issues amongst corporate leadership. Though market‐based incentives have contributed to this, the key driver has been the State's legislated transformation programme premised on State sovereignty over mineral resources. Hence, while the interrelationship between companies and their institutional context has, in the past, brought about a vicious cycle of irresponsibility and minimal collaboration, this cycle may be reversed into a virtuous one, driven in particular by the State. The broader implication is that references to a business case for CSR and partnerships cannot be relied upon independently of continued efforts at shaping the public sector context of companies.     

Injustice and organisation in Anchicayá, Colombia: an environmental legal case in a hydropower watershed

The paper looks at Colombia's first major environmental justice legal case involving a riparian Afro-Colombian community and the Pacific Energy Company (EPSA). Riverine Afro-Colombian communities gained political recognition as a culturally distinct group largely based on their conservation practices in riparian environments. The work contrasts the complexities of the case with the vulnerable reality of the people of Anchicayá who largely live in conditions of poverty, violence and political isolation. It also describes the institutions that frame watershed management, the ethnic rights to collective land and self-governance and the property rights of energy companies in the backdrop of decentralisation reforms that clarified different types of property rights and refounded Colombia as a multicultural nation. The legal suit, however, demonstrates that the government failed to offer equal protection to collective versus private cultural and socio-economic uses of land and water in order to protect energy investments. The Constitutional Court's jurisprudence ultimately privileged technical and legal know-how and overlooked the limits community intermediaries face offering similar evidence. By doing so, the court not only disregarded the constitutional rights of Afro-Colombians, but it also failed to mitigate a socio-environmental conflict.     

“Horizontal” and “vertical” diffusion: The cumulative influence of Impact and Benefit Agreements (IBAs) on mining policy-production in New Caledonia

The scale, duration and intensity of conflicts over mineral resources vary greatly. However, they always involve, in varying proportions, the triad stakeholder model—corporation, state, community—each element of which is internally heterogeneous. Increasingly, new players are entering the scene: international non-governmental organizations (NGOs), environmental grassroots groups, indigenous transnational networks, international aid and development agencies. Nevertheless, conflicts and arrangements around access to and control over mineral resources can take the apparent form of dyadic relationships between companies and local communities, resulting in negotiated company-community agreements, often called “Impact and Benefit Agreements” (IBAs). In our analysis, local agreements on mineral resource governance are seen as building blocks in the production of mining policy “from below”, even though they seem at first sight to exclude the state. This paper argues that these agreements, and the negotiations surrounding them, inform debates around mining through both “horizontal diffusion” (influence on other localities facing similar situations) and “vertical diffusion” (influence on policy design and implementation at upper political and administrative levels). This diffusion may occur in a “positive” sense, effecting further change in line with the intent of the original agreement, or in a “negative” one, actually making substantive change less likely, whether at a community or policy level. We build this argument through two case studies from New Caledonia, in the south-west Pacific, where mining has long been a key issue, especially in the current context of “negotiated decolonization” launched by the 1998 Nouméa Accord.     

Corporate environmental excellence and stewardship: Five critical tasks of top management

One of the most important challenges facing business is shaping the role of senior management in corporate environmental performance. In some leading companies, the CEO or chairman takes the initiative to carefully define his or her role because of a strong personal commitment, a keen grasp of the business incentives, in response to past problems, or because of a combination of these. In other companies, even where corporate policies genuinely support and promote corporate environmental, health, and safety programs, there may still be inaction or reluctance on the part of top management to participate or get involved. This management posture may work for a few more years, but no longer than that—and could quickly become a major detriment to any company's ongoing market success or viability. This article will focus on a strategy for getting top management involved in your company's programs and, where they are already involved, for sharing some insights we have gained from our work with a number of companies where top management has taken a strong role in environmental issues and has established precedence for what can work well.     

Private capital: What impedes its entry into China's minerals industry

The paper commences with an analysis of the nature and status of private capital investment in the minerals industry in China. Based on the analysis, the authors examine the main barriers in terms of the mineral rights market, industry access and investment security that impede the participation of private capital into exploration and development of China's mineral resources. The discussion addresses how to encourage the participation of private capital into mining investment and it concludes that it is of significant importance to ensure the soundness of mineral rights market, impartiality of industry access, and security of mineral rights.     

Perspectives on corporate social responsibility in the chemical sector: A comparative analysis of the Mexican and South African cases

In recent years, the debate on corporate responsibility has shifted from a focus on environmental management towards a broader concept of corporate social responsibility (CSR). This article examines the chemical industry's approach to CSR from the perspective of two emerging economies: Mexico and South Africa. The global chemical industry was one of the first to respond to public concerns about environmental pollution, toxic waste and human health by adopting an industry‐wide code of practice, known as Responsible Care. This article examines the extent to which the chemical industry has responded to the broader debate on CSR. On the basis of a comparative case study, this article argues that the response to social issues by Mexican and South African chemical companies has tended to be limited to the ‘community awareness and emergency response’ (CAER) or community dialogue component of the international voluntary management framework, Responsible Care. Similarities and differences in regulatory and institutional conditions, as well as different levels of civil society engagement, reveal additional limitations for CSR, beyond that of the Responsible Care framework. This article argues that the socio‐political context influences the extent to which companies embrace CSR, especially in emerging economies, and highlights several challenges for the chemical industry in moving forward on CSR: credibility, stakeholder engagement, value‐chain accountability, disclosure and transparency. Reflecting on these challenges, the authors conclude by recommending a renewed focus on: (1) developing a broader set of CSR management practices beyond Responsible Care; (2) institutionalizing stronger accountability measures, such as reporting and verification; and (3) developing multi‐stakeholder partnerships that complement regulation and build public sector regulatory and guidance capacity.     

Multinational oil companies in Nigeria and corporate social responsibility in the HIV/AIDS response in host communities

ABSTRACT

We assess the impact of corporate social responsibility (CSR) of multinational oil companies (MOCs) on HIV/AIDS prevalence in Nigeria’s oil-producing communities. One thousand, two hundred households were sampled across the rural communities of Niger Delta. Using logit model, the main result indicates that General Memorandum of Understandings (GMoUs) have not significantly impacted on factors behind the spread of HIV/AIDs in rural communities. This implies that the impact of the disease on MOCs business, employees and their families, contractors, business partners and the oil communities have not inclined downward. The findings suggest that CSR offers an opportunity for MOCs to help address HIV/AID prevalence through a business case for stakeholders’ health in the region. It calls for MOCs to improve GMoUs health intervention on sensitisation campaigns, funding testing and counselling centres, subsidising anti-retroviral drugs, prevention of mother-to-child transmission, rehabilitation of orphaned and vulnerable children and other cares for people living with AIDS.     

Industrial pollution,spatial stigma and economic decline: the case of Asopos river basin through the lens of local small business owners

This paper explores the notion of environmentally induced spatial stigma through an analysis of data from interviews across public attitudes to pollution within the Asopos river basin in central Greece. The area has a 40 year plus history of legal and illicit industrial waste disposal and public debate on the associated environmental degradation. The study focuses on the perceptions and beliefs of a sector of the community likely to be directly and negatively affected by stigma, that is small business owners in the tourism and hospitality sector. The qualitative analysis explores awareness and viewpoints on environmental degradation and water quality within the local context, implications for the local economy and the individual's own enterprise, views on industrial environmental management as well as corporate responsibility and future prospects for the environmental problems of Asopos. Findings reveal a noticeable variation in views on industrial pollution and ecosystem deterioration among the respondents, but overall a strong environmentally induced stigmatization of the area. They also uncover an information asymmetry and lack of credible commitment by government bodies and industry members in disclosing accurate information, a situation likely to increase speculation and uncertainty within the community. The paper concludes by addressing implications of the findings to policy-making and managerial considerations, along with future research perspectives which aim to increase considerations of sustainability aspects for local development.     

Elusive Partnerships: Gas extraction and CSR in Bangladesh

This paper examines Chevron's programme of CSR at a gas field in Bangladesh. Whilst apparently building partnerships in the villages that surround the Bibiyana Gas Field, we suggest that the corporation remains detached from the local population via their community development programmes and employment policies. This contradiction is submerged by ideas and practices within global development discourse which celebrate the disconnection and disengagement of donors via the rhetoric of sustainability. Chiming with development praxis and the neo-liberal values which underscore it by stressing self-reliance, entrepreneurship and ‘helping people to help themselves’, the corporation's Community Engagement Programme does little to meet the demands of local people who hoped for employment and long term investment, a form of connection that is discordant to discourses of self-reliance and sustainability.     

SMEs and voluntary environmental initiatives: a study of stakeholders' perspectives in Hong Kong

The environmental performance of Hong Kong's businesses is currently perceived as rather poor. Small and medium-sized enterprises (SMEs) in particular are mostly unaware of the environmental impact of their business. Government and professional bodies have recently started to develop various initiatives to improve the SME sector's awareness of environmental and social issues, and external factors such as supply chain requirements, consumer preferences and energy prices are also exerting a growing influence. Based on extensive interviews with representatives of seven key stakeholder groups, this paper explores the effectiveness of such drivers to engage SMEs with environmental change and corporate social responsibility (CSR). It finds that most existing efforts, such as environmental support programmes and award schemes, do not have a great impact on the environmental and social performance of Hong Kong's SMEs.     

Case study: Honda of America Manufacturing,Inc.: Can lean production practices increase environmental performance?

This article covers the strategic, organizational, and operational decisions involved in one automobile manufacturer's efforts to balance its goals of productivity and high quality with the more elusive goal of environmental responsibility. The case material is based on the real-life experiences of Honda of America's two manufacturing plants in East Liberty and Marysville, Ohio. The case unfolds as the environmental manager in charge of the two plants faces the pending visit of her corporate boss from Tokyo, who has made it clear that environmental issues are of growing importance in Honda's overall direction. ISO 14000, the new environmental quality standards being adopted by some other manufacturers, serves as a focusing issue for the environmental manager's thinking, but this issue is really representative of a wider challenge facing the Ohio plants: balancing Honda's core mission of producing the best cars at the lowest cost possible, and being a responsible actor in the environmental arena. Complicating this challenge, the environmental manager has to negotiate another tension common in global manufacturing firms today: balancing the influence of Honda's corporate headquarters in Japan with the local and regional context at its American plant sites.     

Animal Rearing as a Contract?

Can animals, and especially cattle, be the subject ofmoral concern? Should we care about their well-being?Two competing ethical theories have addressed suchissues so far. A utilitarian theory which, inBentham's wake, extends moral consideration to everysentient being, and a theory of the rights orinterests of animals which follows Feinberg'sconceptions. This includes various positions rangingfrom the most radical (about animal liberation) tomore moderate ones (concerned with the well-being ofanimals). Notwithstanding their diversity, theseconceptions share some common flaws. First, as anextension of primarily anthropocentric theories (aboututility or rights) they still participate in the flawsof the original setting. Second, extending them tonon-human beings raises the problem of the borderwhich is to be drawn between what can be included inthe purview of moral consideration and what is leftoutside. Third, such theories are not able to distinguishbetween an ethics of wildlife and an ethics ofdomestic life, which too often leads to preposterousstatements. We would like to argue (i) that we should distinguishbetween environmental ethics (concerned withpopulations, species, biotic communities) and animalethics (where animals are taken into consideration individually);(ii) that individualist animal ethics are not relevantfor animal rearing; (iii) that animal rearing is a hierarchicalrelationship which rules are to be found in the fiction of a domesticcontract. Hence, we would like to construct a new conception ofthe ethics of the relation between men and the cattlethey breed based on the idea of a domestic contract.Our main assumption is Mary Midgleys's anthropologicalassumption, according to which human communities,since the Neolithic age, have always included variousanimals, so that relations of sociability have alwaysexisted between human beings and animals within thedomestic community (a mixed community). In order tospecify the hierarchical and non-egalitarian, butinclusive reciprocal obligations and relations insidesuch a community, we will elaborate on the notion ofa ``domestic contract'', an implicitly assumedidea traced back to Lucretius and whichwe will follow up to the physiocrats and Adam Smith.We will show that such an idea relies upon theassumption of communication between cattle farmer andanimals, of shared experience and exchanges betweenthe two parties. We will then show how modern factory,or battery animal farming, can be seen as unilaterallybreaking this domestic contract, forsaking ourduties towards domestic animals.     

Mission impossible?: Adopting a CSR-based business model for extractive industries in developing countries

Corporations in the extractive industries often state their commitment to “corporate social responsibility” principles, but their actual implementation of these principles, particularly in developing countries, is questionable. This contradiction between rhetoric and reality is attributable to the fact that these companies have not fully integrated CSR into their business models. This can been seen in assessments of projects' costs and benefits, project and technology selection, respect for community consent, and performance incentive structures. The Marlin gold mine in Guatemala provides a concrete example of these sharp contradictions between stated CSR commitments and actual performance.     

How can public–private partnerships contribute to security and human rights policy and practice in the extractive industries? A case study of The Democratic Republic of Congo (DRC)

Across sub-Saharan Africa, the presence of foreign large-scale mining companies is increasing. This is in part a result of depleting resources in countries such as Canada, United States and Australia, and in part from a more favorable national mine investment climate in several mineral-rich African countries. Their increased presence raises important questions around the potential role and function of Corporate Social Responsibility (CSR) in the sector. In post-conflict and/or fragile states, CSR has further implications for conflict and risk mitigation strategies to ensure the protection of human rights. One CSR approach increasingly being considered is the public–private partnership, whereby companies, public donors, and development agencies leverage their relationships for mutual benefit. There is merit in exploring its function in post-conflict fragile states, where socio-economic needs are high and the capacity of the state to respond to a variety of mine governance challenges is limited. Two case studies from the Democratic Republic of Congo (DRC) are presented, and their policy implications, discussed.     

Greening the Fife Economy: Ecological Modernization as a Pathway for Local Economic Development

Progress in the greening of UK local government has been hampered by uncertainty about the relationship between resource use and environmental protection. Ecological modernizationmay offer the most appropriateparadigm to reconcile economic, social and environmentalinterpretationsof sustainability. The transition from corporate to strategic environmental management currently being attempted by some 'green' authorities can be construed as an attempt to promote ecological modernization in the form of institutional learning. Fife Council in Scotland provides an interesting case study. Progress with corporate environmental management has become bound up with a radical devolution of decision making. Efforts to link the authority's Sustainable Development Policy to a Local Agenda 21 programme have been initiated with the piloting of sustainability indicators.