Ethics
Being a multinational mining company with a footprint in several developing countries, it is important for DIGIT Ltd to adhere to tenets of Corporate Social Responsibility, as its activities affect a wide swathe of people. While sustainability action plans might not be profitable in the short term, they have the potential to ensure long-term stability and growth for the company, allowing the company to remain in sync with rising environmental and social concerns in its areas of operations, including Europe. While DIGIT Ltd would like to undertake sustainability operations in all fields, there is a need to prioritize options so as to optimally utilize available funds. Selecting areas of sustainability, therefore, needs to be seen through the prism of which aspects have the maximum impact and the maximum visibility. For instance, while technology may have long-term impact, it needs to be weighed against engagement of the local communities, which would remain vary of the mining activities of the company. With this approach in mind, the six areas recommended for prioritized action by DIGIT Ltd in its endeavor to ensure sustainability are employee health and safety, manufacturing emissions and waste, regulations and compliance, community relations, supplier selection and technology.
Employee Health and Safety. It is crucial that mining operations are safe and employees’ health is taken care of. Invariably, employees would be working in deep mines over long working hours. Mines run a huge risk of collapsing, if adequate safety measures are not taken. Safety measures and health aspects would involve substantial commitment of working capital. However, the capital employed is essential to prevent the possibility of cataclysmic occurrences of accidents, which would be extremely detrimental to the image and long-term sustenance of the company.
Manufacturing Emissions and Waste. Wherever mines would be set up, the local community would be extremely critical of manufacturing emissions and waste. Even though the levels of emissions and waste might be compliant by regulations, considerable bad press would occur if the company does not voluntarily and actively pursue measures to reduce emissions and waste. Therefore, it is important that the DIGIT Ltd is seen as a responsible company that holds the environment in high esteem, and does not avoid proactive action by relying on technicalities inherent in rules and regulations. For instance, while particulate emissions may allow a certain percentage of emission, DIGIT Ltd should voluntarily endeavor to reduce the emission level to at least 60 percent lower than what is mandated. This would result in acknowledgement of the company as being environmentally responsible and ethical.
Regulations and Compliance. It is important for the company to adhere to all regulations as laid down, right from global regulations to local regulations. There should be no instance where the company is seen to be cutting corners for profitability. It is important that the management respects the spirit of the rules, rather than find ways and means of bending them for short-term profits.
Community Relations. The local community would have invariably lost land when the local government handed over the mining rights of the land to DIGIT Ltd. Most communities see the land as belonging to them, and view mining companies as imposters out to make profits. It is important for DIGIT Ltd to engage the local community positively. Skill development workshops could be held to enhance the employability of locals so that they could be given jobs in the company. Schools need to be run to engage and empower the children. Once DIGIT Ltd is seen as a positive contributor to the local community, it would enjoy substantial goodwill, it turn allowing the company to continue its operations without hindrance by the locals.
Supplier Selection. While the operations of DIGIT Ltd might be environmentally optimal, the same may not hold true of its suppliers if due attention is not given to this aspect. Multinational companies invariably fall in the trap of improper supplier selection. By giving out contracts to lowest bidders without ascertaining the suppliers’ methods and activities, multinational companies run afoul of ethical standards. For instance, electronics companies are accused of employing suppliers who do not pay fair wages. Apparel companies are accused of supporting suppliers who run sweatshops in blatant disregard to human rights. Therefore, DIGIT Ltd should lay down sustainability standards for its suppliers too, and award contracts keeping sustainability aspects in focus.
Technology. By enhancing the technology for mining, DIGIT Ltd can substantially reduce emissions and become more environmentally friendly. However, the research and development required for enhancing technology is capital intensive and a long drawn process. Therefore, while technology should remain a priority area, capital outlay for technology enhancement must leave headroom for the five aspects mentioned above, as they are more immediately visible to the community.
