Writing the Social Contract: Integrating the UN Global Compact and Mining CSR

Abstract

Purpose

This chapter discusses the influence of the United Nations Global Compact (UNGC) 10 Principles on multinational mining companies’ (mining multinational enterprise (MNE)) corporate social responsibility (CSR) activities and strategies.

Design/methodology/approach

Business ethics, mining management, CSR, stakeholder, and social contracting literatures are integrated with case vignettes to examine the UNGC’s role in motivating efficacious, benevolent CSR in mining.

Findings

Mining industry groups and some mining MNEs have adopted and fully implemented UNGC principles while other mining MNEs have not. The variation manifests as a gap between CSR form and CSR substance. Mining industry bodies such as International Council for Mining and Minerals, stakeholders, and private monitors have increased pressure to narrow this gap. The UNGC acts as a catalyst to create and codify valid hypernorms and to build trust and managerial buy-in in mining MNEs’ CSR.

Research limitations/implications

Reliance on selected cases and extant literature indicates, but does not fully support, conclusions.

Practical implications

Mining MNEs are advised to pursue CSR activities which integrate social contracting and precepts of the UNGC. The results would be happier, less antagonistic to stakeholder communities, and less questioning of mining MNEs’ legitimacy.

Originality/value of the chapter

This chapter integrates above-mentioned literature and cases to advise academics, governance officials and private monitors, and mining MNE managers on effective integration of the UNGC into mining through social contracting.

Citation

Selmier, W.T. (2015), "Writing the Social Contract: Integrating the UN Global Compact and Mining CSR", The UN Global Compact: Fair Competition and Environmental and Labour Justice in International Markets (Advances in Sustainability and Environmental Justice, Vol. 16), Emerald Group Publishing Limited, Leeds, pp. 83-101. https://doi.org/10.1108/S2051-503020140000016017