Balancing environmental and industry sustainability: A case study of the US gold mining industry

Mandatory insurance requirements and/or mitigation fees (royalties) for mining companies may help reduce environmental risk exposure for the federal government. Mining is examined since the Environmental Protection Agency (EPA) Toxic Release Inventory reveals that this sector produces more hazardous waste than any other industrial sector. Although uncommon, environmental expense can exceed hundreds of millions of dollars per development. Of particular concern is the potential for mines to become unfunded Superfund sites. Monte Carlo simulation of risk exposure is used to establish a plausible range of unfunded federal liabilities associated with cyanide-leach gold mining. A model is developed to assess these costs and their impact on both the federal budget and corporate profitability (i.e., industry sustainability), particularly if such costs are borne by offending firms.     

Community relations and mining: Core to business but not “core business”

Over the past two decades the global mining industry has witnessed the necessity and emergence of community relations and development (CRD) functions, essentially under the rubric of sustainable development and corporate social responsibility (CSR). These functions provide companies with mechanisms through which to engage and manage their relationships with key stakeholder groups, share development benefits and protect business interests. Despite widespread claims by the industry that companies have adopted CSR as a ‘core competence’, we argue that the industry has yet to incorporate the CRD function as part of ‘core business’ at the level of practice. This article characterises a CRD function and related processes within the context of a large-scale mining operation in West Africa. Findings reflect a more universal trend relating to the function and organisational positioning of CRD practice in the resources sector. The authors argue that functional equity needs to be established if the sustainable development agenda is to have a genuine future within the mining industry.     

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.     

Applying the principle of sustainability to coastal sand mining: The case of Pakiri-Mangawhai Beach,New Zealand

The purpose of New Zealand's Resource Management Act (1991) is to promote the sustainable management of natural and physical resources. Coastal sand mining may be consistent with this purpose where: (1) extractions occur from sediment systems open to inputs of sediment, and the volumes extracted do not limit the natural development, physical characteristics, and ecological diversity of the coastal environments affected; or (2) extractions from palimpsest or relict sedimentary deposits occur at a rate where the rate of extraction is insignificant compared with the volume of the resource. The response of coastal sand mining companies and consent-granting authorities to the requirements of the Resource Management Act (1991) are examined with respect to recent applications to mine sand from a coastal sand body in the Hauraki Gulf, New Zealand. The assessments of environmental effects (AEE) submitted in support of these applications do not establish the sustainability of the sand mining operations. Specifically they do not define the dimensions of the active sediment system, quantify the volume of the related resource, or state the period within which sustainability is achievable. Further, the AEE do not consider the cumulative effects of the extractions, either in terms of the total volume of sand mined or the cumulative effects of different anthropogenic activities. The test of sustainability demands a quality of information and understanding of coastal systems that is well beyond that obtained in the past or accepted at present. There is a clear need for New Zealand's resource management legislation to be supplemented by technical guidelines that help ensure the test of sustainability is rigorously applied.     

The challenges of sustainability in mining regions: The coal mining region of Santa Catarina, Brazil

Throughout history, mining communities have invariably found themselves striving for a good quality of life and a long‐term future. In the 21st century, problems of maintaining the economic vitality of mining regions are now compounded by concerns about the biophysical integrity of the local environment. In regions of the world where the economic viability of the resource is marginal and achieving a reasonable quality of life is a daily struggle, sustainable mining may seem to be a dubious prospect at best. Yet the twin imperatives of global political forces and burgeoning environmental concerns are requiring industry, governments and other interests to re‐conceptualize the way in which mining takes place in communities. Although mining itself may not be seen as an industry that contributes to the achievement of environmental objectives, it could — with careful planning — be used as a tool to foster a more sustainable and healthier community. This argument is considered in the context of the coal mining region of Santa Catarina, Brazil.     

Evaluating a small deposit next to an economically viable gold mine in West Africa from the points of view of the mining company,the government and the local community

This paper addresses the question of evaluating how much the different stakeholders stand to gain from a mining project. By carefully analysing the breakdown of the cash-flows generated, we were able to estimate the amounts received by the local community and by the national community (outside the mining area), the taxes and royalties received by the government and the profits made by the mining company. A real options framework was used to take account of the inherent uncertainty on the commodity price and the reserves, and the operating flexibility (that is, the possibility for the company to stop mining if the commodity price drops and/or the reserves prove to be lower than that had been envisaged). A synthetic case-study of a gold mine in West Africa was used to illustrate how this procedure could be applied in practice. By using the real option framework we were able to envisage scenarios for developing an extension to a deposit as a function of future values of the commodity price. The procedure proposed should provide governments and NGOs with more objective data for making policy decisions.     

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.     

The science of corporate social responsibility (CSR): Contamination and conflict in a mining project in the southern Ecuadorian Andes

In this article, I explain the role that scientific studies play in shaping collaboration and conflict over mining exploration in the Ecuadorian highlands. Toronto-based IAMGOLD conducted water quality studies to simultaneously fulfill legal obligations and secure support for drilling in an environmentally sensitive zone. With these studies, IAMGOLD generated collaborative relations with local authorities and university scientists. However, water quality studies were also used by dairy farmers to establish new connections for an opposition movement. The scientific studies enabled IAMGOLD and the dairy farmers to make competing claims about the responsibility for contamination of an important watershed. This article analyzes the conflict that resulted and challenges conventional wisdom that distinguishes a corporation's legal obligations from its voluntary CSR programs.     

Post-Fordist transformation,the sustainability concept and social relations with nature: a case study of the Hamburg region

Following the United Nations Conference on Environment and Development, the concept of sustainability in general and of urban sustainability in particular has become increasingly significant in the course of the 1990s. Even if the environmental problems of cities are far from being solved, one can interpret this development as a change in the relationship between society and nature on both a discursive and a material level. At the same time the transition from Fordism to post-Fordism has given rise to new forms of urban entrepreneurialism, with an absolute priority to economic competitiveness on the one hand and sharpened social conflicts on the other. Looking at the case of the Hamburg region, the article discusses the interaction of these processes. Contrary to the understanding of sustainability as a broadly accepted policy goal it conceptualizes sustainability as a terrain of conflict. As such, we will argue, the sustainability concept and the underlying change in social relations with nature contribute to containing the contradictions of capitalist societalization, which in the transition to post-Fordism have become more visible again. Copyright © 2002 John Wiley & Sons, Ltd.     

Tri-sector partnership for community development in mining: a case study of the SAPI Foundation and Target Fund in the Republic of Sakha (Yakutia)

This paper explores the nature of tri-sector partnerships applied to community development in the mining sector. The case study approach was used to examine an initiative for environmental improvement and socio-economic development in the diamond province of the Republic of Sakha (Yakutia), in the Russian Federation. The study follows the journey of this initiative from a potential tri-sector partnership model between the diamond mining company ALROSA, the Government of the Republic of Sakha (Yakutia) and the SAPI Foundation, to a bi-lateral partnership between ALROSA and the Government represented by the Target Fund. The study explores the community development in the diamond province in the light of economic and political transition within the mining sector of the Russian Federation.     

Integrating corporate social responsibility,health improvement,and community support in development programmes: a case for enhancing the application of health impact assessment in programme implementation in the Niger Delta region

Transnational corporations (TNCs) invest enormous resources in their corporate social responsibility (CSR) programmes in the Niger Delta region of Nigeria. However, the effectiveness and mode of execution of these CSR activities have been subjects of continuing debate. This research was therefore carried out to elicit the perspectives of members of four local communities about the impact of the CSR interventions in the areas of health improvement and participation by members of the communities in the Niger Delta. Semi-structured questionnaires were self-completed by 182 members of the local communities in the Niger Delta; the respondents gave detailed feedback about community feelings for TNCs and their CSR efforts. The findings showed that the people generally have negative views towards the CSR practices of the TNCs. The result of a two-paired t-test showed this to be true for both men and women (P =?.888, CI 95). While 69.8% of the respondents felt that the TNCs did not bring any development to their community, 87.9% had high fear of getting a disease due to the community they live in; interestingly, 90.1% wanted to be involved in decisions concerning their communities. This research therefore proposes the increased use of health impact assessment as an approach to integrate health considerations and community participation into the evaluation and implementation of development programmes in the Niger Delta. Such an approach has the potential to make CSR initiatives more effective, transparent, and minimise the tensions between communities and TNCs.     

Assessing corporate–community involvement strategies in the Nigerian oil industry: An empirical analysis

The desire of oil companies operating in the Niger Delta to secure their social license to operate, and address their community development obligations, has led in recent years to the adoption of corporate social responsibility (CSR) policies and strategies. Drawing on quantitative and qualitative data collected in host communities within the Niger Delta in Nigeria, the paper compares the effectiveness of two different corporate–community involvement strategies. The evidence suggests that while the corporate–community foundation model has certain advantages over the in-house community investment model, both approaches suffer from a common shortcoming that limits the impact of oil companies’ efforts on community development in their host communities. The paper concludes by exploring the implications of the research findings for corporate–community involvement in the Nigerian oil industry.     

Government and voluntary policymaking for sustainability in mining towns: A longitudinal analysis of Itabira,Brazil

The socio‐economic fabric of single‐company mining towns needs to be carefully considered by both Government and companies in sustainability policymaking. Policy design and effectiveness in such towns are significantly impacted by the city's economic dependence on a single company. This paper explores the perceived effectiveness of government and voluntary private sector mining policies for pursuing sustainability in the historic mining town of Itabira, Brazil over a period of 20 years. Itabira serves as a worthwhile case study because it allows for an in‐depth and longitudinal analysis that can reveal valuable lessons to policymakers of different sectors and jurisdictions located elsewhere. Based on extensive face‐to‐face interviews and literature reviews, study results indicate that changes to the state environmental licensing policies in the 1990s led to significant socio‐environmental improvements in the area. The globalization of the mining company also contributed to an increase in the quantity and quality of voluntary industry policies. Recent technological improvements in the beneficiation processes of the mining company promises to extend the life of the mine to 2050. Although there are significant incremental socio‐environmental policies and programmes, sustainability remains an elusive vision in Itabira, with no clear objectives or monitoring and accountability mechanisms. The paper concludes by recommending a more formal integrated policymaking framework.     

Informal settlers' perceptions of environmental quality: A case study of the Mizamoyethu Community, South Africa

Informal settlements are an integral part of the urban environment in South Africa. People living in these settlements exist at a close interface with the environment, constantly having to adjust to environmental changes. Urban managers and planners need to find ways of developing informal settlements that enhance residents' quality of life while reducing the settlement's impact on the environment. Central to addressing these issues is the adoption of a participatory planning approach, which recognises and acts upon knowledge of community values, perceptions and needs. This paper reports the results of a case study of informal settlers' perceptions of environmental quality. Fifteen residents of an informal settlement were interviewed regarding their perceptions of their living environment, with the aim of alerting planners to ways in which environmental quality might be improved. Four major themes were identified: aspects of the natural environment; services and facilities; personal and community security; and employment opportunities. The need to unite the community to work together to achieve its own goals was a common thread in all these aspects. The findings indicate that informal settlers have a developed appreciation of local environmental quality which should be investigated and incorporated in the planning and development process.     

Shareholder activism on environmental issues: A study of proposals at large US corporations (2000–2003)

Socially Responsible Investing (SRI) has carved out a niche in the financial world, and each year a large number of shareholder proposals are filed at public companies in the US related to issues of corporate social responsibility (CSR). While the primary interests of CSR activists remain distinct from those of traditional corporate governance (CG) activists, the two groups do share an interest in minimizing the risk of negative environmental or social impacts from the operations of the corporation. They also share the objective of achieving transparency and accountability in corporate decision‐making. In relation to this latter objective, they both face similar challenges concerning conflicts of interest among key institutional shareholders. This article examines the record of shareholder proposal filing and voting from 2000–2003 for 81 large US public corporations to determine the relative prominence of CSR shareholder activism and the prospects for effective CSR shareholder activism on key environmental issues. The analysis of these data finds that nearly half (45%) of all shareholder resolutions are related to CSR, and that those resolutions which combine issues of CSR with traditional CG activism appeal to slightly more shareholders than issues of CSR alone. The article also examines shareholder activism at the micro level with a case study of the voting record at ExxonMobil. The article finds that CSR‐related shareholder activism represents the majority of shareholder activism within that firm and that resolutions targeted at climate change are particularly well supported. These resolutions draw a connection between environmental risk and risk to shareholder value. While numerous challenges remain for both CG and CSR activists, the article concludes that reforms that strengthen shareholder rights and corporate governance more generally will also benefit CSR activists and the environmental policies they promote in particular. The article ends with some proposed solutions for addressing the perceived conflicts of interest in corporate governance and the shareholder voting process.     

A multidisciplinary sustainability index to assess transport in urban areas: a case study of Donostia-San Sebastian,Spain

The management of urban transportation systems represents one of the most formidable challenges for local government that generates several problems related to the well-being and the comfort of the public that commute and travel in their daily life. Improvements to various policies and practical measures can move us closer to the ideal of sustainable urban areas with sustainable urban transportation systems. Nevertheless, these aspirations in no way ensure unanimity over the most effective actions to take and the extent of their benefits. In response, a mathematical model has been developed for decision-taking purposes using multi-criteria analysis adapted to urban transportation systems. This model not only takes account of environmental parameters, but also examines economic, social and urban models, the characteristics and condition of the transport fleet and freight distribution vehicles, in order to generate a sustainability index value for the transportation system of urban areas.     

Variation in implementation of corporate social responsibility practices in emerging economies' firms: A survey of Chilean fruit exporters

As in many sectors in emerging economies, the concept of corporate social responsibility (CSR) has become important for exporting agri‐food firms in view of their integration in global supply chains. The purpose of this research was to assess the implementation by Chilean fruit exporters of CSR practices that go beyond minimum legal requirements. The principal results are that, although socio‐economic components of CSR such as poverty reduction and socially just working conditions receive much attention, firms consider comprehensive environmental practices as less important. The results also indicate a slightly higher implementation of comprehensive CSR practices by large firms as compared to small and medium sized enterprises (SMEs). The main conclusion is that, although CSR is increasingly considered by Chilean firms, among SMEs in particular, more attention needs to be paid to raising awareness among managers about CSR practices and to providing assistance in their implementation. This supports findings on CSR implementation in other emerging economies that an active role of civil society and industry organizations is key and that targeted support strategies are needed to install a holistic awareness of CSR and help firms to improve on those aspects of CSR that are relatively underdeveloped.     

Protecting the environment through public procurement: The case of South Africa

This article deals with the use of the procurement or purchasing power of governments to protect the environment. The focus is on South Africa and the aim is to show that South African organs of state can use procurement as an environmental policy tool to contribute to sustainable development as they have commendably done so to address past discriminatory policies and practices. It is argued that such use does not fall outside the current legislative framework governing procurement and suggestions are made as to how environmental considerations could be incorporated throughout the procurement process, namely the preparatory stage; the drawing up of tender or technical specifications; ensuring the capability or responsibility of contractors; the use of criteria to compare different tenders; and ensuring that eventual performance under a contract is environmentally sound.     

Impact of the FTSE4Good Index on firm price: an event study

This paper examines whether corporate financial performance is affected by public endorsement of environmental and social performance. Event study methodology, which relies on the notion of market efficiency, is used to examine the relationship between positive and negative announcements and changes in share prices or daily returns. Inclusion in and deletion from the FTSE4Good UK Index is used as a proxy measure for good (poor) corporate social responsibility. The abnormal or unexpected daily returns associated with an event are calculated and their significance tested. The results show a trend towards positive and negative announcements having the expected effects on daily returns. But these movements are not significant and the data do not suggest that a firm's presence on the index brings it any significant financial return for signalling its corporate social responsibility.     

Towards a framework for assessing the sustainability of local economic development based on natural resources: honeybush tea in the Eastern Cape Province of South Africa

Despite the popularity of local economic development (LED) as a job creation and economic growth strategy in South Africa, many LED projects have not proved to be sustainable in the long-run, especially where human systems interact with biological ones. This article examines the relationship between sustainability and LED within the context of the emerging honeybush tea industry in the Eastern Cape. Data were gathered from provincial as well as local government policy documents and reports, and via key informant interviews. The data were analysed using Connelly’s [(2007). Mapping sustainable development as a contested concept. Local Environment, 12 (3), 259–278] three pronged approach to sustainable development as a lens through which to view the local industry. Findings showed that the industry offers many opportunities for development, including job creation in poorer, rural households; sustainable wild harvesting using a permit system; commercial cultivation; potential to develop social capital; potential for community-based LED; and product diversification. However, there are also corresponding challenges: There is currently no reliable data on the maximum sustainable yield, which is needed to guide quota allocations for entrepreneurial harvesters harvesting from wild stocks; possible biodiversity loss; and enforcing the permit scheme is proving difficult in remote rural areas.