Corporate Social Responsibility in Australian Mining

This report delves into Corporate Social Responsibility (CSR) and sustainability within the Australian mining industry. It begins by introducing CSR and its significance, followed by an examination of corporate governance and sustainability in the Australian mining context. The report explores relevant CSR theories, including Institutional, Integrative, and Utilitarian theories, analyzing their application in the mining sector. It then outlines implementation strategies for CSR programs, emphasizing the importance of integrating these strategies with overall business objectives and operational practices. The report concludes by highlighting the benefits of implementing CSR strategies, such as improved stakeholder relations, enhanced corporate reputation, and long-term sustainability. The report aims to provide a comprehensive understanding of CSR's role in the Australian mining industry and its impact on business performance and accountability.

GOVERNANCE AND SUSTAINABILITY
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CORPORATE SOCIAL RESPONSIBILITY AND SUSTAINABILITY
Contents
INTRODUCTION......................................................................................................................3
CORPORATE GOVERNANCE AND SUSTAINABILTY OF MINING INDUSTRY IN
AUSTRALIA.............................................................................................................................4
THEORIES OF CSR AND SUSTAINABILTY........................................................................5
IMPLEMENTATION STRATEGY OF CSR IN MINING INDUSTRY.................................8
BENEFITS OF IMPLEMENTING CSR STRATEGIES..........................................................9
CONCLUSION........................................................................................................................10
REFERENCES.........................................................................................................................11
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INTRODUCTION
In today’s industry practices, Corporate Social Responsibility (CSR) is dishevelled with
many MNC’s and industries in strategic planning procedures. The drivers behind CSR can be
due to the reason for showing responsibility towards human and environment. This can also
be said that company’s along with producing product or service has to take responsibility to
satisfy entire stakeholders those can be common people, employees, owners, buyers or
government. According to Mallen Baker, "CSR is about how companies manage the business
processes to produce an overall positive impact on society" (Careers and Industry Guide,
2017) Competitors, government and populations often influence organisations to destabilize
or undertake unethical motives. Laws and penalties levied by government and legal bodies
keep safeguard of ethics and social values of industries. Legal processes if structured
accordingly ensure international borders are not exposed only for self interest. CSR’s
confirms shareholders that their organisations provide maximum profit out of processes while
ensuring to make positive impact on environment and society. Implementation of CSR in
industries has been visible immensely since the last decade as organisations are tending to be
modest in behaving under CSR criteria’s (Aras, 2008). Australian companies those are listed
in stock exchange have taken initiatives by showing their part of responsibility towards
nation. According to a study made by Australian Centre for CSR, Australian companies have
increased their awareness regarding CSR (Mendoza, 2017). Good initiatives shall always be
encouraged so that working with communities proactively alleviates the potential by
damaging obstructions in business and create significant benefits for long term (The
conversation Media Group, 2017). This report will make research on implementation of CSR
while demonstrating the way corporate governance may contribute to higher standards of
business performance and accountability in mining industry of Australia.
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CORPORATE GOVERNANCE AND SUSTAINABILTY OF MINING INDUSTRY IN
AUSTRALIA
Mining industries are accountable for a noteworthy proportion of GDP in many developed
nations and has an impending prospective to deliver sustainable economic growth to worlds
most needful communities. In global context, the societal anticipation is growing towards
corporate, especially in developing nations to foster responsibility by not generating profits
only but benefiting entire community with their presence. Large MNC’s and global
resource’s sectors are responding to expectations by adopting high profile range of CSR
guidelines and sustainability frameworks along with serving public relation practices. Despite
of considerable potential in economy along with environmental and social impact on mass
commune, many low profile and small Australian mining and exploration companies operates
ignoring CSR practice in the country (Rice, 2016). While making the research it was found
that junior levelled industries and communities focussed to approach CSR and while
visualising the contraction in operations, they failed to understand the overall importance of
CSR (Lyons, 2016). Various theories in CSR will explore the complex force that shapes mid
tier mining industry in Australia and implement CSR and sustainability in their challenging
operational environment.
The critical research in CSR practices of resources sector has been seen delivering
inappropriate operations and also been accused of making unexpected processes. CSR
programmes are been conceded without consulting communities and is been carried without
thinking about its priorities. Those industries are also criticised as developers of environment
and social damage whereas billion dollar brands becomes vulnerable to communities and
suffer fallouts from mining sector without sharing much benefits out of it. Global
conglomerates in mining sector remain only handful that also dominates the industry. Many
junior resources industries who explore potential mineral deposits are sold off to big
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companies in order to develop and carry business according to country’s austere laws and
regulations (Scilly, 2017). Thus they have pitiable reputation and have got a history of getting
targeted by developing nations which has got weak environmental regulations. These
companies lack CSR knowledge and the amount of significance they has on the regions they
operate which is the reason they are been under rated in CSR and sustainability investigation
and shows that larger companies gets disproportionate focus. This report will make study of
few CSR theories which will assist small mining industries and develop their challenging
force while responding to social expectations and behaviour towards environment in
responsible way.
THEORIES OF CSR AND SUSTAINABILTY
Institutional theory: This theory states that the behaviour of firm’s is regulated by
institutional field or environment. The major constituents of field include scope of firm’s
activity, social context and network of social relationships. The institutional environment
brings uniformity in practices carried by businesses through mechanisms namely normative,
coercive and mimetic. Mimetic practices deals with peer strain on firms to obey rules.
Coercive refers to technical pressure that aspires companies to get align with societal
prospect. Normative mechanism refers to internalization of credence about sustainability and
suitability of behaviour. The forces of institutional theory drive organisations to get in line
with belief and social norms along with internalization of processes from external force.
Mining industries in Australia can be conceptualised as socially co ordinate unit which
functions on an incessant basis to achieve goals. Thus it can be said that specific group of
organisations are likely to be exaggerated by regulations. CSR designates the organisation to
voluntarily behave by not harming its stakeholders and besides looking into business issues,
also look after environmental and social issues. The institutions drive organisations to select
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norms and align their behaviour with norms, while institutional theory demonstrates the
reason behind performing CSR activities (Mishra, 2016).
Integrative theory: This theory focuses on detecting and scans respondents of social demands
while generating social authenticity. Integrative theory enables exceeding social acceptance
and prestige of companies by making corporate laws in favour of society and environment.
The management identifies issues in corporate and evaluates while responding to political
and social issues those might place impact on business. The basic responsibility towards
public in this theory considers suitable managerial behaviour that is found in relevance with
people policy. The board prototype of social trend is reflected in public opinion and reduction
in social issues. Legal requirements and enforcements are also said as drivers of such CSR
theories in industries and implementation processes for sustainability. Managing stakeholders
is an approach towards public who are directly or indirectly affected by industries policies
and procedures. This theory increases the advantages by stimulating sensitivity of people and
environment as then the stakeholders might understand the dilemmas faced by organisations.
Corporate social performance can also be said as a set of theories which searches for social
authenticity while giving efforts towards gaining appropriate response (Garriga, 2004).
Utilitarian theory: Under this theory the corporations performs as an element of economic
system which has got functional mechanisms traditionally known as profit maximising.
Corporate responsibility idea had emerged after realising the need for economic
responsibility along with maintaining ethics in business. According to analysis made by
Secchi, utilitarian theory gives way to businesses by determining individualism in controlling
public and responsibilities towards self and social communities (ISMAIL, 2009). This theory
is synonymous with instrumental theory under which the corporate are seen only as an
instrument for creating wealth, and social activities for them are only a tool for achieving
economic results. In instrumental theory, the basic idea behind investments is to invest in
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local communities only and according to Friedman, the investors shall perform activities that
serve revenues for long terms while providing resources and facilities for the source of
income of public living in similar community. On the other hand utilitarian theory is
associated to strategies for competitive advantage theories as formulated by authors like
Porter and Cramer, who have formulated their theories according to dynamic use of natural
resources for competitive advantage. These theories also include unselfish nature of
industries as they are recognised socially and treated as an instrument for marketing purpose.
Utilitarian theory can further be divided into social cost theory and functionalism theory. The
social economic system of communities is highly influenced by non economic forces of
corporate which are the basis of social cost theory or instrumental theory in CSR and shall be
taken as social power of companies whose specific purpose is to build relationship between
politics and society. The functionalism theory advocates that industries and corporations are
seen as a part of economic system whose ultimate goal is making profits and the firms shall
make investments so that stakeholders get maximum profits out of it. Thus, the basic purpose
behind this theory is to give industrial systems a defensive tool i.e. CSR tactic that could
provide making balance between profiteering and social objective for equilibrium of
economic system (ISMAIL, 2009).
IMPLEMENTATION STRATEGY OF CSR IN MINING INDUSTRY
Implementation strategy of CSR program as stated by Lynch (2006) is been developing as
compared to earlier days. The key factors emphasizing strategies of company are welfare and
competition improvement, market competition, global and local demands, empowerment and
involvement of workers for setting industry policies, evolution of technological and
communicational forms and lastly the fallout of industries due to ethical problems. According
to the author, social responsibility and innovation are taking crucial part in industries
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strategies (Setyadi, 2013). The strategy contains overall of the organisation and states how
the company carry their structure and financial models while stating their allocation of
available resources to realise maximum outputs. Competitive or business strategy which
shows the level of competition with the surroundings includes its competitors. While the
operational strategy concentrates on various divisions of company that offers contribution.
Some authors have also put an effort in maintaining sustainability of mining sector by
including a category in corporate strategies. The strategy that mentions sustainability
strategies in industries is based on knowledge management and social information which
supports the continuity in mining operations. By implementing this strategy, mining
companies applies for advancement in enhanced corporate governance, turnover and social
environment (Ranängen, 2015). In order to get sustainable advantage, maintaining nominal
economic performance is necessary so that stakeholder’s expectation is fulfilled. The
companies will not survive if normal CSR is not carried by it unless; government subsidy or
funding from private entry is provided (Yakovleva, 2005).
The first level in implementing CSR in mining industry is to achieve turnover as bigger the
profits are, bigger allotment can be made for CSR programmes. A fair CSR strategy will
always carry responsibility by following the principle of fairness and equity which requires
considerable amount of investment in it. Industries can conduct communication and uphold
fair relationship with local community along with government by operating safely and
making profit without interfering in their day to day life. Second strategy that can be applied
is improving mining operations is by strengthening development of business. As mining
industries operates on natural resources those are non-renewable in nature, the company, to
remain sustainable has to find new locations whenever their present locations seems to be
dwindling (Hohnen, 2007). Implementing CSR program in mining industry is difficult as in
the exploration phases the companies cannot implement profit enhancing strategies.
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Therefore only investment preservation strategies suites best for them which is why local
communities and government are required to be maintained for generating favourable
situations in preservation process. Investors also look for environmental situations and
preservations to decide upon investment of their capital. However to carry operations
between communities and company, ethics maintenances is also required to be considered as
many companies closes due to ethical misbehaviour. It is expected that mining industries
shall also implement ethical duties in their CSR strategies as it constitutes as an important
role in industry environment (Setyadi, 2013).
BENEFITS OF IMPLEMENTING CSR STRATEGIES
This report has made analysis of various theories and strategies in implementation process of
CSR programs for sustainability in mining industry in Australia. In order to get motivation
behind implementing it, benefits behind implementation process shall also be seen by the
companies that could secure them for operating their mining business while strengthening
relation with their surroundings. Socially tied mining industries are quick in realising success
as compared to no social tied ones. If companies do not maintain CSR in their business, the
activities carried by them become highly vulnerable. In order to get continuous run and
sustainability, CSR programs is highly recommendable as the benefits received then can be
seen by both company and communities (Muir, 2015). Besides, the chance of improving
infrastructure and healthy lifestyle is observed; it will also reduce the burden in terms of
education and earnings. Government is also benefitted by getting a relief in the form of
establishments made according to welfare of people and promoting regions which are
unrecognised (Ksiezak, 2016). Therefore, when companies establishes CSR practices and
coordinates with government, sustainable development is realised easily. Other benefits of
CSR programs and knowledge management makes organisations committed to making
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employees learn and develop talent pool in them so that work efficiency is increased.
Increment in accountability standards and performance is recognised quickly while CSR are
taken as compulsory process in company’s operations. The reputation and publicity
improves relationship with stakeholders while local communities become supportive.
Innovation and cost curtailing is obtained while getting an access to markets and thus chance
of increasing production becomes conventional. While involving community and practicing
in social responsible manner, environment is protected along with securing human rights and
fair operational practices. The company’s brand identity is also strengthened by approaching
to CSR institutions rather than focussing on making advertisements only which are limited to
few audiences (Creative Commons, 2017).
CONCLUSION
After making analysis of CSR implementation processes, theories and role of CSR for
maintaining sustainability in mining sector, the junior mining sectors in Australia demands
involvement of three parties i.e. government, company, and society. The implementation of
CSR shall be made from the beginning stage of commencement and while entering into the
sites. The benefits achieved by the industries can be seen with stability in operations and
achieving sustainability by getting permits from government and social communities. One of
the most successful mining industries situated in Australia is BHP Billiton who has set an
example for other mining industries in terms of maintaining CSR programs in mining
operations (BHP Billiton: Resourcing the Future, 2014). Benefits received from
implementation of CSR process in few mining industries proves that maintaining social
responsibility along with profit making is highly appreciated by government and people.
Normally mining sites are located in villages and underdeveloped regions, realising
community development is ascertained if CSR program enabled companies are increased in
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those areas and government shall also support for such grateful presence of companies in
those areas. On the other hand, companies shall also maintain their part of responsibility to
support sustainability of mining industry in Australia. Environmentally, minimising side
effects shall also be considered by companies by taking environment as their first priority.
During the time when new site is detected, peeling of soil and plants is done which is
threatening the biodiversity in those areas. Thus companies are challenged to avoid making
adverse collision of territory and minimise destruction by changing procedures. Thought out
mining plan can safeguard biodiversity and environmental destruction. Therefore on
concluding note it can be said mining companies who shows utmost interest in environment
and CSR are the ones who contributes to high standards of accountability and business
performance while possessing sustainable division in country (Yakovleva, 2005).
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REFERENCES
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2017].
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of-corporate-so.html [Accessed 09 October 2017].
Garriga, E.M.a.D., 2004. Untangling the Jungle of Corporate Social Responsibility Theories.
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Hohnen, P., 2007. Corporate Social Responsibility: An Implementation Guide for Business.
[Online] Available at: http://www.iisd.org/pdf/2007/csr_guide.pdf [Accessed 09 October
2017].
ISMAIL, M., 2009. CORPORATE SOCIAL RESPONSIBILITY AND ITS ROLE IN
COMMUNITY DEVELOPMENT: AN INTERNATIONAL PERSPECTIVE. [Online] Available
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