Mining companies and their shareholders have come to the realization that doing the right things in the communities where they operate is important for a lot of reasons, including the bottom line. Mining executives also tell The Gold Report that the most effective corporate social responsibility (CSR) programs are orchestrated cooperatively instead of applied prescriptively.
The emphasis of mitigating the economic, social and environmental impacts of mining on local communities can be seen in the billion-dollar price tags on education and clean water projects in Ghana underwritten by Rio Tinto Plc (RIO:NYSE; RIO:ASX; RIO:LSE; RTPPF:OTCPK), training programs in Burkina Faso co-financed by IAMGOLD Corp. (IMG:TSX; IAG:NYSE) and small business loan programs in Peru funded by Barrick Gold Corp. (ABX:TSX; ABX:NYSE). As the Mining Association of Canada puts it on its website, corporate social responsibility (CSR) standards “are one way that companies can help manage risks and avoid potential conflicts. . .as an industry we also support community development to help spur local business development, build environmental expertise and reduce poverty in the areas where we operate.”
Companies large and small have found that an investment in the people living where they work can have outsized returns in human impact terms, permitting time and even the ability to continue operating. But they have also learned that programs have to be designed in cooperation with local communities rather than imposed on them to have a lasting impact.
A Social License
Great Panther Silver Ltd. (GPR:TSX; GPL:NYSE.MKT) has taken a measured approach to its good neighbor policy. “Our main priority,” according to Mariana Fregonese, director of Corporate Communications and Sustainability, “is to listen to what our stakeholders have to say. This isn’t about telling them what they need and then doing it for them. We need …read more