SOCIO-POLITICAL CHALLENGES FACING MINING COMPANIES IN SOUTH AFRICA Can effective corporate social responsibility mitigate against these challenges?

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SOCIO-POLITICAL CHALLENGES FACING MINING
COMPANIES IN SOUTH AFRICA Can effective
corporate social responsibility mitigate against
these challenges?

• 25 October 2010

A presentation by ERIC RATSHIKHOPHA
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ACKNOWLEDGE AND ACCEPT

• Mining does not take place in a vacuum
• Mining and its operations have both negative and
  
• positive impact on the environment (physical
  and
• social)
• To do business successfully we must understand
• the environment in which businesses operate
• Business cannot succeed in societies that
  fail...
• Bjorn Stigson President, WBCSD
• Effective public institutions and the delivery
  of
• social services and infrastructure is in the
  interest of
• business

A presentation by ERIC RATSHIKHOPHA
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SOCIO-POLITICAL ENVIRONMENT

• Past characterised by divisions and inequality
• Racial coincidence of political and
• economic power
• Socio-economic challenges including
• education, diseases, unemployment and crime
• Young democracy facing teething problems
• Rectifying the past requires establishing and
• strengthening institutions to underpin
  democracy
• Vibrant and articulate youth, labour and
• other civic organisations

A presentation by ERIC RATSHIKHOPHA
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MINING COMPANY CHALLENGES
Challenges invariably result from or are linked
to the socio-political environment
A presentation by ERIC RATSHIKHOPHA
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MINING COMPANY CHALLENGES

• Skills shortages
• Regulatory requirements environmental,
• labour, safety, socio-economic (mining
  charter)
• Expectations/demands from local
• communities social license to operate
• Social ills crime, diseases, corruption and
• bribery

A presentation by ERIC RATSHIKHOPHA
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MINING COMPANY CHALLENGES (cont.)

• Political and civil dynamics and associated
• pressures disruption of operations scary
• debates and demands e.g. Nationalisation
• Organised labour and business
• Issues with infrastructure and energy
• Efficiencies and responsiveness of government
• and public institutions

A presentation by ERIC RATSHIKHOPHA
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NOT ALL DOOM AND GLOOM
A presentation by ERIC RATSHIKHOPHA
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CAN CSR MITIGATE AGAINST THESE CHALLENGES?

• Without a doubt, yes! With the keyword being
• mitigate
• CSR define
• A look at current initiatives reveals
• Scant, if any considerations of broader
• environmental challenges, plans and
• dynamics
• Compliance -driven
• Lack of alignment and collaboration
• Ad hoc non-integrated or unaligned to
• core business

A presentation by ERIC RATSHIKHOPHA
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CSR MITIGATION CONSIDERATIONS
Insanity is doing the same thing over and over
again and expecting different results Albert
Einstein
A presentation by ERIC RATSHIKHOPHA
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CSR MITIGATION CONSIDERATIONS
The issue is not so much the what, but more the
how and why .
A presentation by ERIC RATSHIKHOPHA
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CSR MITIGATION CONSIDERATIONS

• Take the socio-political environment into
• account, especially conceptualisation of CSR
  
• initiatives
• Approach and implement CSR as a business
• imperative and integrate it into business
• operations
• Facilitate and support effective public and
• service institutions for sustainable social
  services
• delivery
• Recognise the importance of regional
• collaboration for impact and sustainability
  of
• initiatives

A presentation by ERIC RATSHIKHOPHA
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CSR MITIGATION CONSIDERATIONS

• Constructive engagement and co-operation
• with important stakeholders e.g. Government
  on
• issues of national importance i.e.
  governance
• Join and support organised business
• organisations and utilise as a platform for
  collective
• voice
• Capitalise on successful current pilot
  projects
• by replicating and bringing to scale
• Health (HIV-AIDS) Xstrata Coal South Africa
• Education- National Business Initiative
  (EQUIP), Edumap
• Skills Development Xstrata Alloys Steelpoort
  skills
• development centre. Africagrowth institute

A presentation by ERIC RATSHIKHOPHA
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IN CONCLUSION
We need to make a major breakthrough in the way
that boards think if we want to save
capitalism... doing right because it is right,
not because it pays, with principle, not profit,
the point of departure.
Sir Geoffrey Chandler - Former Senior Executive
Royal Dutch Shell
A presentation by ERIC RATSHIKHOPHA