Corporate Social Responsibility and the Porgera Gold Mine
Introduction
More than often, many companies seek to maintain a high level of corporate social responsibility as a way of attaining sustainable growth for the future. More so, the companies who undertake corporate social responsibility acknowledge that their operations involve its employees and communities who surround its operations (Vallaster, Lindgreen & Maon, 2012. As a result, corporate social responsibility is viewed as a companies’ ability to incorporate its responsibility into the society it operates in as it seeks to develop appropriate approach towards economic, environmental and social problems'. It therefore remains relevant for businesses to assess the impact of the operations on the society.
Aim
This study aims at exploring the corporate social responsibility of mining companies considering the effects of mines activities on the natural environment. More considerably, this research focuses on critically examining the responsibilities that mining companies have in relation to the environmental impact of their mines, specifically those mining in the Porgera gold mine. In addition, the research seeks to assess the level of corporate social responsibility based on mines commitment towards attainment of global level and standards of the natural environment as it protects it for future generations (Golub, 2006). More significantly, this research sets out to assess the long-term benefits that come about with corporate social responsibility to the communities where the mines operate as a way of fostering corporate ethics, community relations and the environment.
Research Questions
• To what extent do mining companies illegally or unjustifiably harm the natural environment for their own personal gain?
• To what extent has the mining companies in the Porgera gold mine have protected the planet for future generations should they be held more accountable on a global level and standard?
• How has the mining companies operating in Porgera gold mine effectively built corporate social responsibility into firm strategy?
Research Objectives
1. To analyse extent to which mining companies illegally or unjustifiably harm the natural environment for their own personal gain.
2. To assess the extent that mining companies operating in the Porgera gold mine have protected the planet for future generations should they be held more accountable on a global level and standard.
3. To evaluate the level in which mining companies operating in Porgera gold mine effectively built corporate social responsibility into firm strategy.
Description of Topic and its important
This topic is important because, in some countries, the systems of policing are not as structured and strict as in Australia, this means that mining companies may have less legal responsibility to protect the environment and local communities. More significantly, the issue of corporate social responsibility remains relevant as an area of study because it means that companies who are only concerned with profits may be able to get away with their activities without taking precautions to protect the environment they are mining in or near their mining station. More so, this research will focus on Pogera mine because of its significance within this research as mining companies at the mine are currently dealing with disputes over their alleged failure to dispose of waste properly(Hyndman, 2001).
Literature Review
Moir (2001) describes successful businesses as those that continuously contributes fully to society as it operates efficiently, profitably and socially responsibly for communities it operates within. As a way of meeting their social welfare, companies engage in social responsibility activities as a business firms dealing in an environment that has influence on different society while it maximizes profits (Imbun, 2007). On the other hand, Scott (2007) explain that corporate social responsibility involves understanding and managing of the existing relationship between a company’s trading operations and the economy as it manages the social, environmental and ethical issues that deal with commercial performance considering the services, products and all aspects of their behaviour.
Chen (2011) explicate that corporate social responsibility gives companies a highly competitive environment as its involvement in community activities indicates their responsibility, accountability, competitiveness, and transparency in its operations as it meets social needs of the community. More considerably, corporate social responsibility involves upholding of ethical behaviour of company management towards society as it keeps continuous commitment towards its legitimate interest in the business. As a result, companies focus on contributing towards economic development that involves improvement of not only employee’s eminence of life, that of their family, as well as the local community at large (Galbreath, 2009).
Research Methodology
More importantly, the use of secondary data analysis in carrying out this research would be viable as compared to other research methods. This is because, the use of secondary data analysis sets out to explore the outcome of failure in mining companies, in Porgera Mine, through an explorative study that can be structured more suitably to suit the research. The research can therefore, focus on looking out at controversies surrounding the lack of corporate social responsibility in Porgera Mine, whilst allowing for consequent conclusions based on the research questions. More significantly, qualitative secondary research study are more likely favoured over the collection of quantifiable data that are later used for quantitative comparative analysis of the research as it gives more in depth information (Saunders et al., 2007).
Literature engaged with Emerging Debates on lack of corporate social responsibility
Just as other organizations operating mines, activities at the Pogera mine area should focus on maintenance of high level corporate social responsibility as it shows commitment of business in taking an interest of the natural environment and surrounding environment as it focuses on contributing towards sustainable economic development (Waller & Conaway, 2011). More significantly, it remains essential for the company’s management to maintain a high level of responsibility by remaining fair, trustworthy, honest and respectful as it carries it activities and deals with all its constituents. More than often, constituents of the mining companies include contractors, employees, families and local community who are associated with the companies directly or indirectly as it ensure to improve the quality of life, through the establishment of a suitable business base for development (Porgera Mine, 2009).
Even though, Porgera mine that is owned by Porgera Joint Venture indicates that it is committed to making a positive difference in the communities that it is situated in, as one of the company's main responsibilities there is a clear indication of failure to conserve the natural environment. More considerably, initial research on the Pogera mine indicate that there are two main viewpoints when it comes to the mining company’s treatment of the environment. As considered mining activities are more likely to cause significant impacts that are both temporary and long lasting on the existing natural environment, depending on the presence of Porgera Joint Venture mining operations (Eggert, 1996).
More significantly, it is essential for the company management of Porgera Joint Venture that carries out its activities to undertake a precautionary approach towards its operations in the mine by undertaking assessment of potential impacts that include evaluation of how to avoid, mitigate and control any likely environmental impacts. Nonetheless, the company management failure to undertake proper responsibility towards the effects of the mining activities on the natural environment has received controversy by the communities living around the mine as they suffer from the effects of the company’s failure (Kirsch, 2002). This is seen through complains of the communities living within the Pogera mine area to take up a legal complaint that was recently filed by a group of landowners who live around the mine.
More considerably, as the Pogera mine area is located in an extremely rugged, mountainous terrain that is close to the river it becomes prone to landslides because of its location in a very steep, unstable terrain that makes the condition extreme for the landowners living around the mine during periods of high rainfall. More so, the company management of Porgera Joint Venture indicate that influences from land disturbance. As a result, the company aims at keeping minimum the effects the mining activities has on the surrounding area as the management carry out effective and careful planning. Nonetheless, attempts by the company management top undertake corporate social responsibility strategies that include rehabilitation of lands disturbed land by mining activities, through land reclaimed by re-vegetating and re-contouring do not seem satisfactory solution to the effects of mining activities.
Conversably, there has been the lack of proper waste disposal system as the surrounding rivers in the mine region remain turbid and fast flowing as it has the capacity to transport large quantities of sediment from the waste in the mines. More significantly, there are complaints, which states that the mining companies waste disposal system is not effective and that waste has been leaking down and polluting the Pogera River system. In addition, the complainants who are the landowners claim that because of the poor waste disposal system, let out on the river has made the waters become poisoned, and their water has become too dangerous to drink or use (RNZI, 2012).
Most of the used oil from the mines is disposed of as waste into the waste management system that eventually ends up into the river. This is because, mining requires water as Porgera Joint Venture operates its mining activities using it for ore processing and dust suppression as it extracts mineral resources. Therefore, even as the company management undertake corporate social responsibility as it acknowledges the fact that water is a valuable resource it faces difficulty in the conservation of water as it seeks to minimize the impacts of its use. As a result, the surrounding landowners complain over poor waste disposal system let out on the river leaving them with non safe drinking waters because of lack of safe drinking water (Milton, 2005).
Even though, the company management of Porgera Joint Venture indicates that it has developed a clear waste management program in the Porgera mine that ensures continuous reuse, recycling of waste products and the proper disposal of waste products it seems to let out waste products into the river as the landowners claim. More significantly, the company’s efforts towards the waste management recovery program of used tires, oil, batteries, and off-site waste products used in the mining process have permitted disposal of hazardous wastes.
More considerably, there exists failure in Porgera mine because there is significant damage of the environment even as it seeks to protect the environment through safety management. This is because, even though, the company management of Porgera Joint Venture seek to control mining activities effects of the environment as it puts into place robust environmental management systems and multi-layers of environmental protection as it brings about the advanced planning against possible future events (Porgera Alliance. 2011).
Imbun and Kepore (2011) also discuss the negative community response to the mine and applaud the landowners for the action they are taking to try to protect the environment. More so, this is indicated by the companies attempt to undertake corporate social responsibility activities that focus on taking an interest in the effects of the mining activities on the surrounding landowners, employees, communities, wildlife and habitat. As a result, the company management of Porgera Joint Venture has undertaken waste management, energy management, land status, wildlife and habitat stewardship, solid waste management, cyanide management, material management and tailings and waste rock management as a measure to protect the natural environment from mining activities.
On the contrary, the other viewpoint is that of the mining company and the state who do not consider that they must be liable for the damage that has been caused. The court case against the mining company has been dismissed, and although there have been protests against the mine they are continuing to run their operations (Imbun and Kepore, 2011). This remains a clear indication of lack of the company management of Porgera Joint Venture to take into account the other parties interest because of lack of efficient regulation of mining activities projects (Porgera Alliance. 2011).
More considerably, Porgera mine lack adherence to responsible government regulation that is accompanied by private security force, as the company become more interested in invalidating community objections from the effects of mining activities on the natural environment as a way of maintaining a sustainable environment. More so, local communities hosting large-scale mining operations face difficult opposition from landowners and surrounding environment as is it seeks to explain the demands arising from conspicuous effects that mine developers cannot ignore (Bhattacharya, Korschun & Sen, 2012).
Theoretical considerations
The main theory being considered will be that of ecological justice. This is because the issue raised is about whether mining companies must be held to an advanced standard or not to protect the environment so that communities can continue to live within that environment. More so, the activities carried out that are associated with corporate social responsibility should be geared towards protecting the natural environment and ecosystem from the effects of the mining activities (Lange & Washburn, 2012). As a result, mining companies should take into consideration of the internal and external environment as it gives the employees safe working conditions and a suitable environment for the surrounding community.
Conclusions
Indeed, it is necessary to understand that most companies are concerned with profits they may be competent to get away with their activities without taking precautions to protect the environment there mines are situated. More so, corporate social responsibility focus in Pogera mine because significant as mining company at the mine deal with disputes over their alleged failure to dispose of waste properly. Mining can do a lot of damage to the environment, and if left to their own some companies will take advantage of relaxed laws and governments in countries that do not police them as closely as in Australia. Therefore, it is essential to protect the planet to meet global standard to which mining companies need to adhere to for maintenance of sustainable environment.
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