Exploring Corporate Social Responsibility in the Mineral Resource Industry

1. Corporate Social Responsibility and the Mineral Resource IndustrySt-Andrews – Dundee Workshop26 September 2008 A Few Introductory Remarks: Ambitions and rules of engagement The personal element of comment The extant CSR literature Towards critique? Systems and sustainability Relationships and accountability CSEAR

2. CSEAR

3. Preamble • Rules of engagement? • Despite the literature – CSR remains open question • Recognise importance of debating CSR • voluminous literature • vast and unsubstantiated claims by corporations • Pursue critique: no moral high ground; watch cliches • The personal bit • accountant; systems; relationships; accountability; • personal voyages through the literature • terribly slippy and no closure • parochial? • business schools and `warranty’ • why uncritically pro-business? Intellectual freedom? CSEAR

4. Who says what…? “A corporate executive .. Has a direct responsibility .. To conduct the business .. To make as much money as possible while conforming to the basic rules of society…” Friedman M. (1970) “Philanthropy does little or nothing to help companies make profits, while all CSR activities are linked to improving a company's bottom line.” MHCi Monthly Feature (pdf/e-journal) April 2004 (p2) Social Responsibility “is a concept whereby companies integrate social and environmental concerns in their business operations and in their interactions with their stakeholders on a voluntary basis. Being socially responsible means not only fulfilling legal expectations, but also going beyond compliance and investing “more” into human capital, the environment and relations with stakeholders” Commission of European Communities (2001) CSEAR

5. 40 years of effort: Inconclusive Circular Frederick: CSR 1, 2, 3 CSR 4: Rhetoric? Recent paper claims otherwise Review 3 models all use Economics, Legal, Ethical and Philanthropy A brief (!) review of extant literature CSEAR

6. Some of the remaining issues… • Organisation as moral agent • corporation as individual, judged as a person? • Individual responsibility within organisations • difference between individuals and individuals • Economics • Changes relationships (helping old ladies for money) • Financial markets • Reduces discretion; usually ignore in literature • Evidence: “it pays to be good” • Very powerful; probably tautological CSEAR

7. Towards critique? Systemic Issues? Doing well that which we shouldn’t be doing at all (Lowe and McInnes) Presuppositions in debate: • e.g. is extant activity taken for granted? • Capitalism • Friedman’s views + influence on “rules”? • Can capitalism deliver “responsibility”? • Size + Growth • distance/closeness of ownership, control, responsibility • ubiquity in international markets • dominance of neo-liberal values in LDCs and elsewhere • Sustainability CSEAR

8. Responsible Sustainability? • “The performance of companies implementing sustainability principles is superior because sustainability is a catalyst for enlightened and disciplined management...” Dow Jones Sustainability Group Indexes Report Quarterly 3/9 • “Sustainability pays off…..Companies favouring the concept of sustainability outperform the broad market” Oberndorfer (WBCSD), 2004: cover and p3 • “all CSR activities are linked to improving a company's bottom line.” MHCi MONTHLY FEATURE (pdf/e-journal) April 2004 (p. 2) • “By working sustainably, we can increase financial capital. Sustainable development aims to improve the quality of life for everyone. ……” United Utilities, 2004, pp 1+ 3 CSEAR

9. Relationships and Accountability • Systems view of the world • individual – organisation – organisation – society- environment- planet – etc • Responsibility • = a function of society’s expectations • ≠ a function of what corporation would lie it to be • Accountability • an accounting of responsibility • of extent to which expectations are met • Parkinson: CSEAR

10. Money Talks CSEAR