Mining and Corporate Social Responsibility


Miningand Corporate Social Responsibility

Miningand corporate social responsibility

Thecore problem as discussed in the case was poor relations with thelocals. The company’s inability to accurately relate with thelocals was a major issue that caused them a lot of loss both in theirfinances and in their reputation as leading company in the miningbusiness that prided itself in conducting its activities in thesocially accepted ways.

Socialresponsibility on the part of the enterprise is crucial because it isseen from the case study that when the company started purchasingland near The Quilish mountain. The residents of the area regardedthe mountain as a sacred place where they prayed for rain in times ofdrought. Newmont disregarded this fact and even after it was declareda protected area they took the case to court and won and thenproceeded to expand their mine.

Indoing this, they closed the La Ramada irrigation scheme whichprovided 240 families with water. It resulted in a mass mobilizationthe largest against any mining company which paralyzed activities atthe enterprise. The company should work to ensure that they createforums of dialog with locals. Also, Newmont should seek out a waythat builds trust between them and the residents.

Tocreate open dialogue the company should invite village elders anddiscuss issues that are sensitive to them so that they know where tocompromise in their activities.

X.It would ensure each party understands the reach of their boundaries

Y.reaching to an understanding will be time-consuming

Tobuild up trust, they should employ the locals in their activities toensure that they are aware of what the company is doing.

X.It will keep the locals at ease knowing what the company is doing andoffer them a chance to relay what they are not comfortable with

Y.The locals may not have the required skill set to do the jobs

Thebest choice of the two alternatives would be to engage the communityelders in dialogue. It is because any concern by the two parties maybe raised on their forums and a solution would be created that wouldbe satisfactory to both of them.