Introduction Corporate social responsibility (CSR) is an

Introduction
Corporate social responsibility (CSR) is an initiative in which any business organisation can
take action to improve the status of the society in which they are working so that
environmental sustainability could be maintained and society as a whole and business
organisation as well can work in sustained manner for longer period of time. Many aspects
can be included in their initiative like human rights, community welfare and development,
improving environmental protection etc.
The organisation which is selected for this study is a mining sector S&P 500 index listed
company ‘Newmont Mining Corporation’ which primarily operates in countries like USA,
Australia, Peru, Ghana etc. Newmont Mining is a leading Gold and Copper producing
company. The Company has its name in value creation, which is ably supported by its leading
team of technical, environmental, social and safety performer in the field of mining. It will be
interesting to know whether these companies follows the guidance of Corporate Social
Responsibility, if they followed, what type of CSR work generally they took-up to implement
and under what theoretical background they took-up these CSR activities. Whether it is
community development related or environmental related or any other issues related to
developmental sector. Why these corporate body took-up these CSR initiative and how far
they are successful in implementing these Corporate Social Responsibility for a development
of certain section of society where they operate. It will be fascinating to take any one of such
example where they implemented CSR initiative and made positive impact on life of people
residing in that region.

News Article
Getting basic necessities like water, basic food, shelter etc. are need of every human being
whether they are rich or poor, privileged or unprivileged, denying basic necessities are
violation of basic human rights. Though water is available everywhere but it is very scarce
and invaluable resource, which requires utmost care and preservation in its uses. Wastage of
water can impose great threat for human being. Teaching and helping water conservation and
optimal use of water resources is also one of the initiatives which come under corporate social
responsibility. Non-availability or less availability of water for general public uses could
violate basic human rights of common people. One such Corporate Social Responsibility
work which was taken up by Newmont Mining Corporation in partnership with the Project
WET Foundation (WET-"Water Education for Teachers") in Yanacocha mining, Peru,
(Newmont Mining Corporation, 2018), the Project has been dedicated to reaching out
children, parents, teachers and community members with action-oriented water conservation
education to enable every child value the uses of water or understand the significance of water
in human’s life, and ensuring a sustainable future for mankind. This partnership was aim to
focus on empowering teachers at school level as well as other educators to equip community
members to create not only community members awareness programme but also develop
expertise on how water is used, managed and protected in their respective regions. Besides
this, developing a need based curriculum for teacher training workshops in Peru and Suriname
where Newmont has a mining operations. The collaborated Project under WET-Newmont
partnership is also evaluating opportunities to expand the water education program beyond
South America to other region of its mining operation. It was also identified and prepared to
expand it in other community based partner areas in Surinam. To effectively execute this
CSR activity their local educators played a pivotal role in helping to teach children, families
and all users about effective and responsible water management.

Newmont Gold Corporation and its CSR activities
As per its annual report 2018,” Newmont Gold Corporation and Newmont subsidiaries is a
large organisation which employed approximately 12,400 people as on December 31, 2018.
Besides, 11,800 people were working as contractors in support of Newmont’s operations” at
same time period as stated above. (Newmont Gold Corporation. 2018)
Market cap of Newmont Gold Corporation has 25.43B as on 18th May 2019. (Yahoo Finance,
May 2019) As far as its main business areas are concerned for this company these are Gold
mining, copper mining. It is one of the leading gold mining companies in the world. Newmont
has been one of the prestigious indexes every year since and has also been named the mining
industry leader for the past three years.
Newmont’s CSR works done in Merian Mine area of Suriname is also praiseworthy in which
it engaged experts to inform local people about its biodiversity offset programme which
helped minimize environmental impact. It also provided native local people employment
opportunity and community development fund. (Harvest Gold, 2016)
Newmont Ghana’s Ahafo Development Foundation (NADeF) established in 2008 “The
Company contributes one dollar per ounce of its annual gold production and one percent of
net profit each year to support various development initiatives in the Brong-Ahafo region.”
(Newmont Gold, 2014)
Newmont Gold Corporation with its partner WET foundation collaborated to provide teaching
help, awareness and training to conserve their water resource for its optimal and sustainable
use in South American mining areas of Peru and Suriname where they operate for their
mining activities. This collaboration will provide educational training to local educator to
teach local community member to save water and stop its wastage. Newmont CSR activities
spread over many countries like Unites states, Australia, Peru, Ghana, and Suriname spread
over four continents that is Australia, North America, South America and Africa. In Brong
Ahafo mining area of Ghana they have taken many community development programme like
school construction, community hospital, community canter, etc. which is serving local
people and villagers are getting benefited from facilities. (Dan F. Ofori, Robert E. Hinson,
2007) These CSR activities includes measures for community development like construction

and operation of school building, health centres, community centre, teacher’s quarters.
Training for various social activities like teacher’s training for local on conserving water etc.
In Nevada, USA they design and implemented enhanced biodiversity conservation programs
at Newmont’s global mine sites, which will definitely benefit local people.
These all CSR activities by Newmont in all these countries helped employees to maintain
their efficiency level even in adverse condition and also create right atmosphere for local
community members. Increase efficiency increase contribution to company and economy of a
nation.

CSR disclosures
There is no such legislation exists in USA or in Australia related to Corporate Social
Responsibility activities and they are very much voluntary and no disclosure norms required
related to this. Whatever CSR activities they are conducting they are conducting on voluntary
basis. But in recent years business houses have shown the willingness to make commitment
for CSR activities in the area of their operation. In USA, Australia, Ghana, Peru and Surinam
many community development programme were implement under corporate social
responsibility, which has benefited thousands of people in mining areas. In spite of lack of
disclosure norms these companies which operate in these countries follows all the required
disclosure norms, so that it can serve the interest of local people and their basic human right
must be protected at any cost. (Dan F. Ofori, Robert E. Hinson, 2007)
“Newmont conduct its operations so as to protect public health and the environment and also
it is in compliance with applicable laws and regulations in all material respects. Its United
States mining and exploration activities are subject to various federal and state laws and
regulations governing the protection of the environment. Also, activities outside the United
States are subject to various levels of governmental regulations in respective countries for the
protection of the environment. All Newmont operated sites maintained their certification as
ISO 14001 compliant except for Merian in Suriname. The safety of its people and the
communities in which it operate is a priority core value with the right to life and right to safe
working conditions.. The Company has an established Health & Safety Management System
and Health & Safety Standards.” (Newmont Gold Corporation, 2018)

System-based theory
As Corporate Social Responsibility activities and its importance are already discussed in
previous segments of this report, now it is up to business community/organisation’s duty to
effectively develop some mechanism or theoretical framework so that disclosure norms can
be adequately addressed and Corporate Social Responsibility activities communication
method should be developed. It is vital for a business organization to imbibe effective and
efficient theory so that disclosure requirements in relation to Corporate Social Responsibility
can be achieved. It will be very difficult for any organisation to show these Corporate Social
Responsibility activities in their financial statement because it will lead to further complicate
the financial statement. Incorporating these things into financial statement will make it even
more difficult to decipher the number and user will find it difficult to understand easily and
their work will become even more cumbersome. So, it should be communicated through
proper developed theory with fully developed system under the law or some proper system.
Any ambiguity while reporting about Corporate Social Responsibility activities should be
avoided whether it is online or offline. It was found that Newmont have not mentioned their
CSR activities in their Annual report which makes CSR spending of company very
ambiguous and opaque. Newmont Gold Corporation should use all available medium to
disclose its Corporate Social Responsibility activities every financial year (Botti, L., 2014).
Management should also make arrangement to disclose all the Corporate Social
Responsibility related activities undertaken in annual report every financial year by the
company. Every Corporate Social Responsibility undertaken project should be reported in
transparent manner and all the detail related to project should provided to the all the
stakeholder of the company. It should be displayed in official web site of company with all
the detail, if needed physical copy should also be provided for all. This kind of initiative will
reduce un-ambiguity in company’s dealings for the general people who have any type of
stake in the company. Better the reporting system better will be company’s reputation for its
client and investors. So, proper mechanism of reporting any Corporate Social Responsibility
dealings will enhance theatrical framework for the company and will make it standard
procedure and example as well for any future dealing or transaction.

Emphasis on certain CSR disclosures
Following issues should always be kept in mind while providing information about CSR
activities for various stakeholders.
Transparency with stakeholders
It should be done in fully transparent manner because all CSR activities related fund belong
to investor. So investors or stakeholders have every right to know about their part of money
which they parted ways for the well-being of society. It will further boost the faith of
stakeholders in company and in turn their commitment for future investment as well. These
kinds of activities will further strengthen the bonding of management and investor for future
partnership.
Stakeholder pressure
Every stakeholder has a right and interest to know the spending that incurred in various
activities of any type by the company. Since this information are not provided in financial
statment it become even more urgent to provide this kind of information to stakeholders.
These stakeholders’s pressure will improve the efficiency of company and enhance the
stature of the company in public domain. If so required it should be discussed in Annual
General Meeting to gain confidence of all the stakeholders of the company.
Adequate Publicity
Any business houses which publicize its CSR initiative would attract greater public interest
and faith because they are conducting it for the betterment of the masses. General masses
automatically attracted towards the company or individual who thinks about general public or
about them and also create good talking point for the entire society/stakeholder positively.
So, it is a kind of automatic publicity for the company through its good work for general
public.
Competitive advantage
It will also give these companies a competitive advantage over its rival companies. And will
create positive atmosphere for the company as well. It will gain the confidence of the other
customer and generate goodwill for the company. These kinds of things force companies to

spend on CSR activities because it could generate lot of positive things for the company
(Bonson and Bednarova, 2015).

Critical Analysis of Theories
A communication theory approach of the accountancy tells that “It is a world of a dynamic
economic activity, a world that is influenced by the actions and decisions of various groups of
people, management, stakeholders, creditors, customers, and so forth, and, in its turn, it
influences the actions and decisions of those very same grope of people. This reveals the
immense impact that statement about events can have on the form concerned, the interested
groups, and the public at large.” (Bedford, Norton M., Baladouni, Vahe, 1962)
The ethical approach to accounting theory places emphasis on the concepts of justice, truth
and fairness. (Handriksen, Eldon S., 1965) DR Scott suggested that the basis for the
determination of accounting practices reaches back to the principles underlying social
organisation. (Scott, DR., 1941) There was another theory based on Sociological Approach of
accounting which tells about impact on society of accounting related measures/action. (Ladd,
Dwighter, 1963)
A communication approach of the accountancy clearly states that, it is necessary to state
everything in transparent manner to the every stakeholders of society for a proper functioning
of system. It works for the organization and it bring all the positive input into the systems for
the company as well as all other involved in this setting of work. It is also ethically and
morally good for all those who live in this society.
Newmont mentioned CSR work may be good or bad but it should be reported in transparent
manner in company’s all communication whether it is quarterly or annual report, online or
ofline which is currently not visible. In spite of all its commitment for it employees and local
community members they have not mentioned it anywhere in their annual report, which does
not seems ethical as per accounting standard. Maintaining ethical standard is prime thing for
corporate governance and also for all stakeholders.

Recommendations and Conclusion
It is highly recommended to the management to adopt good practices of CSR and come up
with clear disclosure norms for their company. Try to disclose all the necessary information
for all the stakeholders in every platform whether it is online, offline in their website all the
media platform, so that everything remains transparent. Stating CSR related activities in their
Annual statement is not sufficient, that too in very limited coverage and space. It should also
indicate what type of impact it is creating in the desired society through proper impact
assessment analysis report.
Finally it could be concluded that CSR activities, which are conducted by the Newmont Gold
corporation with its partner was very good initiative for the people of the concerned area.
There is need of hour to properly addressing the problem of CSR activities, like how can it be
implemented with more vigour and enthusiasm for the mining affected area of it operation.
How to improve the sustainability and living condition in mining areas? These corporate
bodies doing their bit to not only exploit the gift of nature but they should also give somethig
in return so that environmental problem not occurred in near future. This report tried to
capture only few selected CSR activities of the company due to lack of space and time. There
are many such cases which can be sighted are available across many country. It also
discussed A Communication Theory Approach for accounting process of company and how it
is necessary to disclose the information for the benefit of the all the stakeholders of societies.

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