1. Community Impacts of Corporate Social Responsibility in the Mining Sector: Examples from Peru, Canada and Mali.
- Author
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Parker, Rani
- Subjects
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MINERAL industries , *SOCIAL responsibility of business , *MASS mobilization , *COMMUNITY relations , *BUSINESS planning - Abstract
Large mining companies in developing countries are increasingly under pressure to take responsibility for social and economic impacts in communities affected by their operations. One explanation for this trend is a growing realization among large companies of the power of small communities to disrupt their operations. Electronic communications technology has made it possible and relatively easy for network-based groups to mobilize large numbers of people on behalf of local interests with strength once attributed only to large international organizations. Thus mining companies have acted on behalf of perceived public interests, a space that previously belonged to government and charitable organizations.Case examples of mining in Canada, Peru and Mali form the basis for the argument in this paper that companies are including community relationships as a key component of their business planning processes, and investing time and money accordingly. Each company approached CSR as a means to reduce risks to business operations. The three cases represent three different approaches to dealing with the risks posed by communities that may be antagonistic to a company. The three approaches are: (a) Influencing international standards by taking a visible and active leadership/controlling role; (b) Spending money willingly to buy land and loyalty; and (c) Establishing good local relationships at the site of operations. While each approach generated different results for the companies and communities, in all three cases it is clear that the companies recognized the inter-dependence between their interests and that of the communities where they operated. In different ways each company engaged in activities such as the provision of health services or construction of infrastructure, and even security?areas outside their expertise. As a result the companies also raised the bar on public expectations of what a company can and should do to contribute to local development. Governments, on the other hand, were inadequate regulators of business. As a result, there is now much greater space for communities to negotiate directly for their interests with both government and business. ..PAT.-Unpublished Manuscript [ABSTRACT FROM AUTHOR]
- Published
- 2007