Maravi

Mining investments and social responsibility

Mining investments and social responsibility
By The Post
Fri 30 Dec. 2011, 14:00 CAT

INVESTMENT in mining are increasing in our country today. We have been told time and again that massive investments are put up in our country's mineral-rich areas. This is definitely a very good development for our country.

But in saying this, those in government have to ensure that all the investments being attracted into the country benefit the local economy and the people themselves, who are the owners of these natural resources.

We know very well that our people have continued to live on about a dollar per day; our people lack access to proper medical care and facilities; they fail to send their children to school and have little or no access to safe and clean drinking water; our roads are in a pathetic condition and need urgent attention from our government and private institutions who have the Zambian people's interests close to their hearts.

And these problems are usually prevalent in areas where we have seen massive investments taking place, especially in the mining industry.

In order for the mining industry to promote sustainable development among the poorest communities, the government must have robust and clear policies intended to redistribute revenues to benefit local communities; we must have an organised and responsible civil society that is involved in important decisions about policies, and mining companies must operate in responsible ways.

When we talk about having an organised and responsible civil society, we mean having civil society organisations that put people's interests before self, those that ensure that they champion the cause of the majority poor in our society today.

And when we talk about mining companies operating in responsible ways, we mean companies observing our country's laws that govern the industry, paying taxes that are due to the government, re-investing in other sectors of the economy and upholding the tenets of corporate social responsibility.

Although the debate around corporate social responsibility is a complicated one and opinions will obviously depend on one's standpoint, we think that it is a matter that needs serious thought, especially for those in the mining industry.

Are the investors in our country today - local and foreign - living up to their pledges on corporate social responsibility? Are they doing enough in responding to the needs of the communities they operate in? Are they paying adequate taxes to the government? And are they assisting in maintaining key infrastructure such as roads where heavy-duty equipment is transported to various mines?

While we acknowledge that the business or economic environment may not treat all businesses equally, we are aware that some corporations have done quite well in terms of realising profits.

Other than the obvious fact that a good number of multinational corporations are good at externalising their profits, we also know that in most cases, these corporations have no regard for the welfare of society.

We have seen how the environment has been destroyed, how our rivers have been polluted by some corporations, all in the pursuit of profits. We have also seen how workers have been exploited, given slave wages by most multinational corporations, all in the interest of profit making.

Yes, we know that our labour laws are quite ridiculous and in most cases mainly favour the interests of corporations.

However, it is not just a question of meeting the legal or statutory obligations. We have seen how most corporations have taken advantage of the minimum wage requirement to pay their workers very poor salaries. We have seen how some corporations have casualised labour just to ensure that their profits are maximised.

These are the areas that need serious consideration. And even in cases where some of the multinational corporations have been given tax exemptions, such gestures have not been reciprocated in terms of paying back to the community.

Today most new investors are not interested in social sectors as was the case in the past.

We have seen how not many new investors are interested in social sectors like education and health as opposed to what was the case in the past where, for instance, the Zambia Consolidated Copper Mines, apart from focusing on mining activities, was also involved in providing its employees with education, health and sports facilities. With the privatisation of the mines, we have witnessed a decline of investment in other social sectors.

There may be arguments that these areas were not core to the mining business and this may even explain why the sale of the mines excluded previously mine-run schools, hospitals or social clubs.

But we know how much they helped ease the situation for those who were employed by the mines. There is very little regard, if not none at all, for the welfare of the ordinary Zambians living in these communities where massive investments have been placed.

There is very little effort coming from corporations in the mining sector. Only a small fraction of the many corporations in mining have significantly made a difference in terms of meeting community needs through investments in social sectors such as health, education and roads.

But as we have already stated, it would appear that businesses are now much more focused on profits only. They do not want to care much about the health or education concerns of their employees, and even communities they operate from, apart from the fact that in most cases these employees get very low wages.

There are some corporations that pay their employees exactly or just above the minimum wage requirement of about K400,000. And we should not forget that the minimum wage was at one time K95,000 only.

Some employers were not even ashamed to pay their workers as little as this paltry amount. And this is besides the fact that the basic needs basket is way beyond K2 million per month for a family of six.

It is even more shameful that some business entities were complaining about the plans by the government to adjust the minimum wage level from the current K400,000. But we know that even the present minimum wage level of K400,000 requirement is just too low when compared with the reality on the ground.

What can an individual with a family of six do with K400,000 per month? We are talking about a wage where an employee is not only expected to buy food but also to pay for their children's school fees and other needs.

Further, some companies do not want to employ on permanent basis so that they can avoid certain statutory obligations. This may not be illegal, but it is a matter of moral conscience. We think that there must be morals even in the way business is done.

We think that these big corporations should be investing not only for profits but also investing in the communities by demonstrating social concern through investments in sustainable development programmes. The corporate world should start taking centre-stage in development initiatives. This is one way in which they can help to fight poverty and under-development in our communities.

We think that corporations need to involve themselves actively in terms of improving the lives of people within the communities they operate rather than just focus on activities that enhance their profits.

And they can start doing so by firstly ensuring that they give their employees what is suitable to be called a living wage, not the slave wages that still exist in most companies.

It may not be possible for all business entities to be directly involved in community initiatives, but we think that they can contribute positively by ensuring that at least the interests of their employees are well taken care of.

However, for those seen to be involved in community activities, it should not just be a matter of window dressing simply because they have to project some positive impression to the public. We believe that the corporate world has a role to play in developing the communities in which they operate because they are part of those communities.

Labels: MINIMUM WAGE, MINING, POLLUTION

posted by MrK @ 5:43 PM