SOCIAL CORPORATE
RESPONSIBILITY IN MINING
PROJECT LIFE
_ELIJAH ALEXANDER MUNKHONDYA_
CONTENTS
The Synopsis of the Mining Industry ______________________________________ 3
Social Corporate Responsibility – What’s That? _____________________________ 3
CSR in Mining _______________________________________________________ 4
The “How” of CSR a Mining firm ________________________________________ 5
References __________________________________________________________ 8
The Synopsis of the Mining Industry
The mining industry is trade that deals with the exploration, extraction, and exploitation of
minerals (Frank et al., 2005). Speaking of minerals, they are naturally occurring crystalline
(Aydinalp, 2012) inorganic solids (Dana, 1879), formed by biogeochemical processes (Gadd,
2007) and has well defined physical properties and chemical composition (Wenk & Bulakh,
2004). They come in different sizes, shapes, color, luster (or gleam), streak, hardness, strength
or tenacity, and rarity (Mat, 2023). All these properties and more determines the value, and
usability (or exploitability) or any given mineral. The process of making minerals ready for use,
however, is complex (Jessica, 2019) and not so short, considering that they are usually deepsited. Thus, mining can be considered more of a program than a project due to the many
nexible projects (Jessica, 2019) it comprises and the length of time it takes to complete them. It
involves so many stakeholders who are affected directly or indirectly.
Social Corporate Responsibility – What’s That?
Corporate social responsibility, also known as corporate citizenship (Fernando, 2023), is the
role a production firm plays in necessitating social, economic, and environmental wellbeing of
the society it is running its operations (HBS Online, 2021). Not so long ago, companies were
measuring their success by just looking at the heftiness of their profit margin (Fernando, 2023).
Things have change over the last few decades (Fernando, 2023; Reckmann, 2023), in that the
success of a firm is also being measured now by the amount of impact it has on the community.
It is this qualitative measure that has led to the boom of corporate social responsibility (CSR).
CSR is thus somehow tangential to sustainable development goals (SDGs) (Mostert et al., 2016;
Yousefian et al., 2023), where the operations of firm “X” will not hinder the operations and
productiveness of other firms and people, both in the present and future era. If anything, a firm
must add value to the society and make its productiveness better.
Companies that pursue CSR use what is known as the “triplebottom-line” (also happens to be “triple P”) approach which
is basically the maxim, “Profit, People, Planet” (HBS
Online, 2021; Reckmann, 2023). Yes, the main goal of the
private sector is to maximize revenues and make profits
(Reckmann, 2023), but that is just one of the
“bottom lines”: for while maximizing its profits, a
Figure 1: Tripple Bottom-Line (TBL) Approach
of CSR
firm must be firm on the welfare of people and the planet (mother-nature) also. In 2010, ISO
26000:2010 Guidance to Social Responsibility (Sánchez et al., 2012) was unveiled and it
focuses on guiding companies to the implementation of CSR for their firm (Fernando, 2023).
CSR in Mining
The mining or extractive industry is one of those industries with the least reviewes, especially
in developing countries. Some have even nick-named it “dangerous civil engineering”
(Engineer, n.d.) due to the unsafe environment miners work in in these localities. This makes
miners minors. However, though mining seems to be controversial (Yousefian et al., 2023),
Pons et al. (2021) describe it as an important industry in that it provides primary materials in
other industries, like the energy, transportation (locomotive, automotive, nautical, aeronautical),
construction, agriculture, communications, and many more. Giving up on mining is hence a
very unrealistic option, however, integrating CSR in the mining industry seems to be the better
(What Is CSR? | UNIDO, n.d.). from the onset of a mining project (or more rightly, program),
CSR can be employed by mining firms for a smoother and sustainable operations. According to
Fernando (2023); Reckmann (2023); (HBS Online, 2021; BDC, 2023), which talk of the
upsides of CRS in the general industries, it can help a mining firm save its face in the
community, gain and retain employees, secure investors, acquire customer loyalty, mitigate the
risk of having its license seized.
The mining process gives more room for CSR. Jessica (2019) presents a five (5)-tier cycle of a
mining program life. It starts with mineral exploration, which is basically searching for mineral
occurrence.
Once
the
mineral
occurrence has been assessed and has
passed the pre-mining feasibility test,
a method of extracting that mineral is
chosen and a mine is designed
around the known mineralogical and
geological parameters. Then enters the
mine construction project, in which
the structures to support the rest of
the projects are raised. After that, the
actual
mineral
commences,
and
extraction
this
is
the
Figure 2: The Mining Process (throughout its life)
production phase of the program. While most mining programs in the past used to “call it quits”
here, recent requirements intensified by external pressure groups, especially the
environmentalists, demands that the company reclaims and restores the land after mining.
However, a mining firm should not have to wait until the stakeholders are on their neck to react.
In fact, they can proact and buy them a positive public image all through the mining process.
This, as has been discussed already, is very significant. The following few paragraphs try to
depict ways in which a mining company can be active, even proactive in CSR, from start to
finish.
The “How” of CSR a Mining firm
For starters, a firm can offer education and training program scholarships to the local
employees. The Malawi government has just adopted this as one of the requirements of mining
companies (Global Legal Group, n.d.). Projects and programs start and finish. But when the
company has trained locals in some technical or administrative skills, its positive impact will
live on, and the nation will have benefited a lot. The trained labor force will end up in other
beneficial project after the mining. This can be done during exploration to secure a skilled labor
force for the production phase. Whatmore,
Secondly, a mining firm must embark on infrastructure development. More often than not,
mining will take place in area previously populated, owned or used by people. As one way of
respecting the locals and entering the field ethically by gatekeeping, a mining company can
construct access roads, boreholes, bridges, social service institutions, and many more. These
will serve them as they progress with their operations, while serving the society at the same
time.
Thirdly, the mining company can make generous donations to the society and other
stakeholders (BDC, 2023). They can be in form of school supplies to local care givers,
supporting tree-planting organizations, volunteering to do some social work, and many more.
This can be done during the production phase with excess profits, after the company has
broken-even.
In addition, afforestation and reafforestation can also be a go-to CSR of a mining firm. Bearing
in mind that mining activities are detrimental to the environment (Yousefian et al., 2023), it is
more or less of a solace to the eco-damage the firm is, has or will cause. Thus, it can be done at
either stage of mining. Mining firms must be environmental stewards.
Furthermore, investing in research and technology is one of the best in the bucket (Fernando,
2023). The profits of this will be both ways. If a company invests in new technological research
in reducing emissions and it turn out successful, it will revolutionize many industries. This can
be done by funding research projects, providing human resource from the firm, and providing
state of the art research and laboratory equipment.
To add on to the list, one way a mining firm can volunteer (Reckmann, 2023) itself or its
human resource is in disaster relief. Whenever the community has been hit, the firm can, this
time, react to help pacify the after-effects. It can provide shelter, food, medical supplies to limit
casualties, rescue crew, and so forth.
Whatmore, in doing all this, the firm must not forget that it is operating in a nation that
anticipates taxes and loyalties from it. Hence, it must not at all costs default such important
remissions (Ibp, 2018). On this, Kurowski & Huk (2021) says CSR is not only focused on
combating negative externalities, but also internal malpractices, which include but not limited
to fraud, bribery, tax, and loyalty defaulting. During the exploration, designing and
construction stages, the firm must remit custom duties for every imported good, unless
otherwise legally exempt. During the production phase, it must remit all income, withholding
and other taxes to the respective government officials.
Still, a firm needs to promote, or at least lay a “welcome mat” for local investors and
government to buy shares (Mostert et al., 2016). Local shareholding will promote local
circulation of money and catalyze economic development of the locals. A mining firm can
accommodate local investors.
Last but one, a mining firm must be committed to employee rights (Sánchez et al., 2012). It
must protect the rights of those that serve it. This includes ensuring ergonomics in the
workplace in providing a safe workplace of unquestionable structural integrity. An ergonomical
firm will be economical.
Last but certainly not least, operational initiatives (BDC, 2023). This involves intentional and
deliberate moves in the production process to improve production all while saving the
environment. They include being energy efficient in mining, proper waste management,
promoting local suppliers, providing a harassment-free working environment, and many more.
To crown it all, CSR is very important in industries, more so the extractive industry. It touches
so many areas and affects all the industry’s stakeholders (the firm itself, the community, the
government, investors, shareholders, environmentalist). It is possible (Sánchez et al., 2012) and
is for every mining firm that even artisan and small-scale miners can do it (What Is CSR? |
UNIDO, n.d.).
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