3.

2 Corporate Responsibility and Sustainability

3.2.1 Integrated Reporting
The organisation can increase the confidence of the stakeholder and the legitimacy of the
operation by issuing integrated reporting. Integrated reporting is encompassed about the financial
and non-financial information. (1)The fundamental of the integrated reporting is the connection
between an organisations strategies, governance and financial performance and the social,
environmental and economic context within which it operates. By strengthen these connections,
integrated reporting can help organisation gain aggregate overview on the sustainability, social
and ethical consideration of the operation of the organisation and encourage effective
communication with larger numbers the stakeholders in alliance to the organisation business
performance. (2)
3.2.2 Corporate Social Responsibility (CSR)
Now, it is difficult to monitor and get rid of the potential for CSR to be misused for the purpose
to enhance publicity and raise reputation of the organisation. The board should aware on this
circumstances and prominent action needed to be taken in order to avoid involving in the
misused of CSR.(3) There are three indicators to evaluate the performance of CSR which are
economic, social and environmental performance. (4)
3.2.2.1 Economic Performance
In promoting CSR in the mining industry, it can bring the significant result to the economy by
providing an opportunity of new jobs and investment. By this, the economic development on the
generated revenue by investment can ensure the future growth and long-term livelihood of
society. (5) A good CSR can increase the opportunities to capital attraction from investors.
Investors will more likely to invest in the organisation who practicing the CSR ethically. To
sustain the ethical CSR, the board should monitoring the CSR process, have problem solving
skills on conflict that may arise and posses a directly communication channel with the
stakeholders in order to derive sound governance of the organisation.(6)

3.2.2.2 Environmental Performance
In progress to sustainability development of the organisation, it could be achieved through by
environment protection. It is minimize the natural resource development on the environmental
impact and land reestablish to permit continuously use.(7) By operating the gold mine and gold
processing, it may arise the problem of usage of water and greenhouse gas emissions. This may
lead to pollution on the environment and greenhouse effect.(8)To control the environment
pollution, the board should oversee the compliance of the Environmental Quality Act 1974 in
order to successively granted on license to continue operate in mining industry.(9)
3.2.2.3 Social Performance
In moving towards the sustainability in mining industry, the organisation should concern on
social aspect. The organisation needs to decline the social and cultural interruption with the
communities, transparency on organisations affairs and foster the shareholders engagement.
Invest in communities via CSR activities, the organisation can remain the good reputation and it
is preliminary action to initiate the public relations intention. To maintain good public relation,
the board should review on compliance with CSR principle, consequences of punishment
imposed of non-compliance and involvement of stakeholders. (10)
3.2.2 Sustainability
For the organisation to acquire and maintain the social licence to operate, it is essential for the
organisation to pursue and commit to sustainable development.(11)This is especially important
as the organisation is in mining industry. Should the board practices sustainability development,
the organisation will have a stronger competitive advantage against the competitor and risk
management capabilities. (12)
There are four main elements that the board should take into consideration in practicing
sustainable development in mining operation. The four elements are safety, environment,
economy and community.


3.2.2.1 Safety
Safety is one of the most important elements in the organisation since the organisation is in
mining industry. Safety should be the first priority for the board in making any decision for both
ethical andbusiness cause. In order for the mining area of the organisation to be qualified as safe
mines, the board should commit to risk management, provide training and educate the employees
involved and focuses on the processes and tools used for mining. (13)
3.2.2.2 Environment
Environmental issue is a common problem that arises in the mining industry. Environmental
pollution may occur during the procedures of gold mining and gold processing. The board should
take necessary steps to cure or rather prevent the issue from arising. The board should direct the
mining department of the organisation to deal with the problems from mining process such as
water pollution and acid mine drainage. Besides, since mercury was used to purify gold from ore
and mercury was known as a highly toxic chemical and can be harmful to the health of humans
and animals. The board should eliminate the use of mercury and use the other alternatives with
lesser harm. (14)
3.2.2.3 Economy
Same as any other companies, profits is a very important factor for the organisation to sustain.
For the organisation to remain profitable, the board shall ensure that the management of the
organisation is maximising revenue while minimising costs.This may also maximise the
stakeholders wealth. (15)
3.2.2.4 Community
Social licence to operate is very essential for a mining company. As long as the community is
engaged and being supportive on the organisations mining operation, opposition and
confrontation will not occur. For example, the small-scale miners may interrupt the mining
processes that are done by the corporation because the small-scale miners were the one working
on the mining areas before the corporation comes in. Therefore, board shall provide jobs
opportunity for those small-scale miners and local people as well as providing jobs training and
skills related to businesses for them to survive after the mines close.(16)
Notes
1. King Code of Governance for South Africa. 2009. p. 12
2. Corporate Governance Blueprint. 2011. p. 50
3. L Mabuza, N Msezane and M Kwata. 2010.
4. Mariri, T and Chipunza, C. 2011.
5. Jenkins, H and Obara, L. 2008.
6. n.a. n.d.
7. Jenkins, H and Obara, L. 2008.
8. Mariri, T and Chipunza, C. 2011.
9. Environmental Quality Act .1974.
10. Jenkins, H and Obara, L. 2008.
11. A Guide to Leading Practice Sustainable Development in Mining. 2011.
12. Steffee. 2013.
13. Laurence. 2005.
14. Global Mercury Assessment. 2002.
15. A Guide to Leading Practice Sustainable Development in Mining. 2011.
16. A Guide to Leading Practice Sustainable Development in Mining. 2011.

Reference Lists
1. King Code of Governance for South Africa. 2009.
2. Corporate Governance Blueprint. 2011.
3. L Mabuza, N Msezane and M Kwata. 2010. Misuse of CSR by mining companies.
Mining and Corporate Social Responsibility Partnerships in South Africa. p. 4
4. Mariri, T and Chipunza, C. 2011. Social Performance. Corporate Governance,
Corporate Social Responsibility and Sustainability: Comparing Corporate Priorities
within the South African Mining Industry. p.10
5. Jenkins, H and Obara, L. 2008. CSR in the mining industry. Corporate Social
Responsibility (CSR) in the mining industry- the risk of community dependency. pp. 1-3
6. n.a. n.d. Government Resolution on Corporate Social Responsibility. Viewed on 10
th

December 2013. Available from: <
http://www.tem.fi/files/35134/Government_Resolution_on_CSR_FINLAND.pdf>
7. Environmental Quality Act .1974.
8. Department of Resources, Energy and Tourism. 2011. A Guide to Leading Practice
Sustainable Development in Mining. Australia: Department of Resources, Energy and
Tourism.
9. Steffee, S. "Sustainability reporting becoming common practice: organizations look
beyond financials to report on social and environmental impacts, as well." Internal
Auditor Aug. 2013: 13+.
10. Laurence, D.C. 2005.Safety Rules and Regulations on Mine SitesThe Problem and a
Solution. Journal of Safety Research. Volume 36, Issue 1, p. 39-50 ISSN 00224375.
11. UNEP Chemicals Branch, Global Mercury Assessment, 2002, UNEP Chemicals.