CSR in South African Diamond Mining
Bench Marks Foundation Reviews Corporate Social Responsibility
Independent analyst and commentator on corporate social responsibility practices, South Africa’s Bench Marks Foundation has undertaken a review of the corporate social responsibility policies and programs of three of South Africa’s West Coast diamond miners, De Beers, Alexkor and Transhex. The research was conducted via literature reviews, surveys and focus groups and comparisons with other mining sectors and other developed countries.
The research reviewed the performance of De Beers, Alexkor and Transhex, across the environmental, social and economic dimensions. The researchers noted that gaining access to interviewees and non-completion of surveys had created limitations to the research. It was also noted that De Beers provides the broadest reporting on corporate social responsibility issues and this influenced the material provided within the report.
Community Perception of Corporate Social Responsibility Practices
Across the three tenets of corporate social responsibility, economic impacts, environmental impacts and social impacts, Benchmark Foundation’s researcher found that there was little community support or knowledge of corporate social responsibility practices with average scores on all three dimensions under 2 (out of 5). However, the research report did not disclose the scores of individual communities, so conclusions cannot be drawn as to which of the three companies is performing best.
Environmental Impact of Diamond Mining
A combination of alluvial and marine diamond mines on the West Coast of South Africa was the subject of the Bench Marks Foundation’s report. The World Diamond Council has recognised that diamond mining has the potential to impact significantly on the natural environment. All three companies report that environmental management programs have been implemented, with De Beers reporting a 100% of mines certified in accordance with the ISO 14001 standard.
Social Impacts on Mining Communities
Benchmark Foundation’s researchers reviewed the performance of the diamond miners in relation to stakeholder engagement, workplace equity, health and occupational hygiene, forced labour policies and ethical behaviour. Transhex and De Beers both reported commitment to stakeholder engagement and building capacity of the mining communities.
Transhex, De Beers and Alexkor all provide opportunities for training and development and support workplace equity, which in part is mandated by South African legislation. Community perceptions of the performance of the miners in relation to the social impacts of mining averaged a score of 1.85 with a lowest score of 1.63 for general visibility of management and a high of 2.25 for HIV/Aids policies and practices.
Economic Impacts of Diamond Mining
The research revealed that due to the global financial crisis, a decrease in production and associated revenues for diamond miners. According to Benchmark Foundation’s report, workers at the Alexkor owned diamond mine were concerned with financial problems faced by the miner.
Marine diamond mining makes use of subcontractors and the research report suggests that these subcontractors are currently experiencing financial difficulties as a result of increasing costs and tightening deals with mining companies.
Researchers Compliment De Beers Thoroughness of Corporate Social Responsibility Reporting
De Beers provides an annual Report to Society which the company believes is reported at A+ standard according to the GRI G3 Guidelines. An A+ standard report requires a company to disclose information relating to both core and additional indicators. The research team at Bench Marks Foundation complimented De Beers on the thoroughness of its reporting.
Bench Marks Foundation’s Recommendations
As a result of the research study, Bench Marks Foundation provided 24 recommendations to mining companies and the mining industry in the South African Development Community region, including recommendations to:
- adopt the standards and reporting requirements of major corporate social responsibility initiatives including GRI G3 Guidelines,
- develop community projects that provide an opportunity to increase employment outcomes and decrease levels of poverty and
- understand the regulatory and legislative framework surrounding the mining industry.
Diamond mining is an extractive industry with a significant potential to impact on the natural environment and the health of the community. The Bench Marks Foundation review found that corporate social responsibility initiatives amongst diamond miners on the West Coast of South Africa could be improved and that community perception of corporate social responsibility performance was low.
Sources
The Bench Marks Foundation, 2009, Corporate Social Responsibility in the Diamond Mining Industry on the West Coast of South Africa
World Diamond Council, Diamond Mining and the Environment Fact Sheet
De Beers Family of Companies Report to Society and Operating and Financial Review GRI Reporting Compliance
Bench Marks Foundation Diamond Mine CSR Review
|
South African Diamond Mining CSR Could Be Improved
|
What do you think about this article?
More in Business & Finance
Latest Articles