Comment: Industry perspectives on social responsibility in extractives | Ethical Corporation

Industry perspectives on social responsibility in extractives

By Steven Wade on Mar 5, 2015

The below conclusions are taken from research carried out by Ethical Corporation of 249 professionals working in mining, oil and gas

It is clear from the 14-page report that the change in commodity prices has had a massive impact on the industry and has presented new challenges. When there is a focus on the bottom line, making stakeholder engagement part of the business culture will be even more difficult given reduced budgets and heightened expectations.

The financial gains that can be made from good social performance have been well documented, and this survey shows us that social responsibility experts are looking at innovative ways to do more with less.

The industry has come a long way in managing their impacts and we should acknowledge that. However, these results show us that there is still more to do and the companies that act now will reap the benefits of support from the financial community, local society, government authorities and their shareholders.

3 key points to take from this report include:

Risk mitigation is not enough: 95% of experts believe that social performance should move beyond risk mitigation and focus on generating active support from communities

Social responsibility is everyone’s responsibility: Organisations that can embed stakeholder engagement and social performance into the business culture will benefit from heightened business benefits

More needs to be done with less: Commodity price drops have impacted Oil, Gas and Mining-innovation is needed to create lean management practices and maximize social impacts with reduced budgets.

viaComment: Industry perspectives on social responsibility in extractives | Ethical Corporation.