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19. A Good Neighbor
- The University of Alabama Press
- Chapter
- Additional Information
19 A Good Neighbor The Wall Street Journal recently asked: “What obligations do companies have to be socially responsible?” Chief executives, the article said, “know their primary mission is to make profits, but they also feel pressured to demonstrate that their businesses have a social conscience.”1 Newmont Mining’s philosophy was summed up a few years ago by then CEO Wayne Murdy, who said the company strives to be “a model of how an ethical company should behave,”2 and is committed to “act with integrity , trust and respect” in all of its activities. “From the day we begin exploration , our success is tied to our ability to develop, operate and close mines in a manner that improves the lives of the people in the surrounding communities in a safe and environmentally responsible manner.”3 Newmont has an excellent, and verifiable, safety and environmental rec ord and invests millions of dollars each year—$45 million in 2008 alone— for schools, health care, infrastructure improvements, and other community projects. It has won numerous international awards for its efforts and in 2007 became the first mining company to earn inclusion in the Dow Jones Sustainability Index—World, which selects the best of 2,500 global companies based on their long- term economic, environmental, and social performance. That is just the tip of the economic benefits that it brings to its mine sites around the globe. Through job creation, local purchases, taxes, and community projects, the company pumped $19 billion into local communities in 2006, 2007, and 2008—Ghana received $750 million, Indonesia nearly $2.5 billion, and Peru $4 billion. Yet the company has faced unrelenting opposition from nongovernmental organizations (NGOs), many with an anti- development bias, that use inflamed rhetoric and unsubstantiated charges in an attempt to discredit it. Accepting such charges, which are widely circulated on Web sites, as fact, 304 chapter nineteen reporters have vilified the company while searching out those who feel bypassed by progress rather than those who have benefited. “Our employees care deeply about the communities in which we operate [and] we work closely with local governments . . . to ensure that the highest environmental standards are upheld,” Murdy wrote in a December 2004 letter to the editor of the Denver Post. The newspaper had just published a series of articles attacking the company’s global environmental record in a way, Murdy said, that “portrays a company largely unrecognizable to us.”4 Mining is open to legitimate public concern, especially in undeveloped areas. This extends beyond the immediate environmental impact of mineral extraction. Land compensation, employment, potential health impacts, eventual mine closure, and threats to the local hierarchy are also issues. Managing expectations is critical in areas where government services are few, needs are great, and the company is seen through local eyes as having immense wealth. This is all made more difficult when governments are remote or corrupt; when there is no history of legal rights, land titles, or conflict resolution; and when savvy NGOs with global Internet connections are eager to exploit any perceived misstep. Every mining and energy company has run this gauntlet, but Newmont’s experience has been one of the most bruising. The company’s approach to social responsibility is based on core values developed over time. Safety has always been number one and in 2007, nearly three- quarters of a million hours, or the equivalent of fifty hours per employee , was invested in safety training. This is particularly important at new mines in underdeveloped countries where local workers often lack an ap preciation for even the basic safety requirements. The company believes that all accidents are preventable and major incidents become case studies in how to improve procedures and prevent future injuries. “We value human life in all that we do at Newmont and we will not sacrifice a safe workplace for any reason,” says the current CEO, Richard O’Brien.5 A second core value, environmental stewardship, was championed by Peter Philip. When he became president in 1991, he worked to ingrain that ethic into Newmont’s mind- set by formalizing a “Mission Statement for Environmental Compliance,” which said it was “the intent of Newmont to set standards of excellence with regard to environmental matters” wherever it operated. Compliance began with the commitment of senior manage- [44.222.63.67] Project MUSE (2024-03-29 13:46 GMT) A Good Neighbor 305 ment, and performance would be enforced through tracking, training, and audits, all of which are now integrated into...