Critical Evaluation Of Social Performances Of The Mining Companies

Introduction: Human Rights Assessment of Goldcorp’s Marlin Mine

This study provides a critical evaluation of the executive summary of the paper ‘Human Rights Assessment of Goldcorp’s Marlin Mine’. This paper is based on seven crucial issues among which this study has chosen two areas which are environment and labour (Ground 11). Moreover, the primary objective of this study is to assess the corporate social performance of Goldcorp / Montana which is related to the Marlin mine. As discussed by Dobson et al. (14), it is the responsibility of every business organisations to follow the Corporate Social Responsibilities (CSR). Apart from gaining the revenues, the managers of the industries have to ensure that nobody is adversely affected by their activities. On the basis of the OCG report, this paper would evaluate whether the assessments and recommendations are justified or not. More precisely, the study would find out whether the mining companies have been successfully implemented both the broad and narrow CSR.

In a narrow sense, the stakeholders are those individuals or a group of people on which the company depends for its survival. Al Omoush et al. (115) have mentioned the fact in a paper that sometimes those stakeholders are also called primary stakeholders. In other words, the employees, customers, governmental agencies, suppliers and owners are known as stakeholders. On the other hand, the broader stakeholder theory incorporates all those people who are directly or indirectly associated with the organisation. For example, the public interest groups, local communities, trade associations, unions, media, the protest group and competitors all belong to the organisational stakeholders.

One of the assessments of the environment has been ‘Has the mine affected human health and well-being through its environmental impacts?’. It has been identified from the case study that sufficient food, health as well as adequate housing are the basic human rights. Apart from that, the technical issues of this industry cause the dust, air as well as noise pollution. Ground (15) have mentioned in the paper that Montana had been unsuccessful in maintaining the right to own property as well as sufficient housing because of the risks occurred from heavy traffic and blasting. The study has provided some recommendations for the above mentioned problem of the mining industry which is renovating those houses which have been cracked. Besides that, a plan has to be planned in order to repair, restructure or provide compensations to the owners of those damaged houses. In order to fulfil this plan, the mining industry has to consult with the affected family members and should try to understand their requirements. As stated by Arnold (275), this fact is clear that there would be a provision of sufficient financial assurance for those closures which are unanticipated. Evaluating the social performances of the mining companies, it can be identified that they have behaved responsibly according to both broad as well as narrow CSR.

Another environmental assessment which has been identified from the case study is ‘Has Montana ensured that closure of the mine would not result in long term negative environmental impacts to communities and individuals?’. Shutting down of a mine causes various negative impacts on the human rights as it can affect the rights to food, water, health as well as housing. If appropriate environmental management strategies are not implemented, then it may damage the health of the human beings. Following the discussions of Jafari (130), the post closure monitoring system of the mine is not very effective.  Apart from that, the long term maintenance costs of the mines are not included in their current plan. As the recommendation, the study has suggested that an internal review must be conducted about the post closure management plans. By this process, the technical, long term funding, as well as administrative support, would be provided. As mentioned by Bello et al. (180), the mining industry officers should have to consult with the representatives of the local communities. It would be beneficial for them in order to identify their capabilities, interests, long run commitments and so on. Apart from that, the mining industry requires an adequate budget in order to fulfil this pan in an appropriate way. Evaluating the recommendation, it can be mentioned in the context that it does not incorporate all the stakeholders in their plan. Apart from that, the firm also needs some resources in order to manage their post closure difficulties. Though the plan has incorporated the stakeholders in a narrow sense but it did not consider the stakeholders in a broader sense (Jahn et al. 45). As a result, it can be mentioned in the context that the mining company has behaved responsibly according to narrow but not broad CSR.

Corporate Social Responsibilities (CSR) and the Environment

The second issue which has been chosen from the case study is the labourers because they are the backbone of any business organisation. The study of Mansell (312) has revealed the fact that the growth and productivity of the firm depend on the capabilities of their skilled labour force to a certain extent. One of the assessments of labours has been ‘Has Montana ensured that working conditions are healthy and safe?’. It has been identified from the case study that Montana has been unsuccessful in order to respect the right to the health of the employees. Moreover, the working environment in which the labourers work in the mining industry is not very safe. As a recommendation, the paper has suggested that a mandatory blood test must be done for the workers in order to identify whether there are heavy metals in their body or not. Apart from that, there must be a second opinion taken from a health specialist in the mining company. Following the discussion of Jafari (130), this fact is clear that if the workers remain in an unsafe area, then they would not provide their maximum productivity. This would mitigate the health conditions of the workers and the profitability of the company as well. Assessing the suggestion, it is found that the policy has neither fulfilled the requirements of the stakeholders in a narrow sense nor in a broader sense. As an alternative recommendation, the mining company could recruit a doctor who would be present in the working hours and look after the health conditions of the workers. Apart from that, there must be adequate health check up service for them along with other health facilities.

The second assessment which has been found from the report is ‘Are there adequate mechanisms to protect workers interests and rights?’. Ground (15) has discussed the fact in this paper that Montana has violated the right to freedom of association as well as collective bargaining.  There has been no mechanism in that place which can protect the rights of the labourers. More precisely, the workers of Montana do not have any union because they would lose their job if they would do so. It is the inefficiency of the mine that they have been unsuccessful in protecting the human right of the labourers. Some recommendations have been found from the case study which is discussed in this section of the paper. From the literature of Ground (19), this fact is clear that all the workforce issues should be addressed. For example, the access to basic necessities of the workers, workplace logistics and the other problems must be solved. Apart from that, there must be a formal structure for the purpose of collective bargaining of the labours also. There must be a review of wages in which the existing wage structure would be evaluated along with the payroll of jobs. Moreover, there would be a new wage structure which will make sure that all the workers get proper wage as per their efforts and experience. Evaluating the problem and the recommendation, it has been identified that it would mitigate all the problems of all the stakeholders.  If all these strategies can be applied in an appropriate way, then the labour rights of the mining company would be protected. Hence, it can be mentioned in the context that the mining company has behaved responsively according to both broad as well as narrow CSR.

Conclusion:

This section of the study summarises all the findings and the discussion which have been already presented in the paper. From a case study, this study has chosen two broader areas which are environment and labour. In this present era, pollution, as well as global warming, has become a severe problem all over the world. As a result, the environment has been chosen by the study as a contemporary as well as the relevant issue. On the other hand, the capability and skills of the labourers are very significant for the growth and productivity of the business organizations. Hence, this issue also has been selected from the case study. The next section of the study has chosen two problems of each of these areas (environment and labour) and also discussed the recommendations made by the company. Finally, the recommendations have also been evaluated in this study in terms of fulfilling the criteria of broad as well as narrow CSR.

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