Valuing Social Investment in Mining

Valuing Social Investment in Mining

Strategic investments in communities should create value for both the beneficiary and the investor. This report discusses that by taking a strategic approach to corporate social responsibility, mining companies can maximize the impact of their social investments.  “Companies should aim for a small number of programs with measurable social impact.”

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community upliftment

Mining companies are very aware of the significant impact of their operations upon local communities and recognize the need to earn a “social license to operate”, in the form of an unwritten contract with workers, their families and other stakeholders.

Taking a strategic view

As mines are incredibly complex operations spread across wide geographical areas, there is a temptation to allocate social investment into broad categories such as health and safety, social welfare, education and sustainability. Yet without a detailed business plan, this money is at risk of disappearing into a black hole marked as “charitable contributions”.

Unlocking value

When considering options for social investment, the starting point is not: “how much should we pay?” but rather, “what can we achieve?” This mindset should lead to programs with measurable social impact.

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