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Ethical and Social Responsibility in the Congo

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by

Eliza Russell

on 30 August 2013

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Transcript of Ethical and Social Responsibility in the Congo

Introduction
ETHICS AND SOCIAL
RESPONSIBILITY
Democratic Republic of Congo
Market landscape
Why should we act ethically?
Voluntary considerations
Involuntary considerations
Conclusion
Legal consequences in all legal jurisdictions
US law
Colombian law
Congolese law

Intrinsic values as CEO

To protect and build our international
reputation as an ethical mining company

To reduce risk for the future

We choose to act ethically for various reasons:
Involuntary
Labour
Conflict
Corruption
Environment
Voluntary
Labour
Environment
Health
Education
Economic development

Water pollution
Deforestation
Environmental damage (mining) [1]
DRC: sustainable development is "community development" [2]


Ethical theory: sustainable development [1]
Health and Safety
Environmental infrastructure Small-scale and artisan mining [2]
Underrepresented in workforce
Maternal deaths: 900/100k births [1]
Limited maternal health care
48 rapes/hour [2]


Ethical theory: universal rights [1]
Hiring employees for merits and effort
Equality for genders
Instrumental theory: strategies for achieving competitive advantage
a) social investments in competitive context
b) strategy for bottom of economic pyramid [1]
Female head-of-household
[1] Central Intelligence Agency (2013). CIA - The World Factbook. Retrieved August 7, 2013, from https://www.cia.gov/library/publications/the-world-factbook/geos/cg.html

[2] Gibson, D. (2013). Getting down to sustainable business in the DRC. Mining World, 10(1), 24-25.
[1] Garriga, E. & Domènec, M. (2004). Corporate Social Responsibility Theories: Mapping the Territory. Journal of Business Ethics, 53(1), 51-71. doi: 10.1023/B:BUSI.0000039399.90587.34

[2] AngloGold Ashanti (2012). AngloGold Ashanti Annual Reports 2011. Retrieved August 7, 2013, from http://www.aga-reports.com/11/pdf/drc.pdf
[1] Cause of Death Women (2013) DR CONGO. Retrieved August 6, 2013, from http://www.causeofdeathwoman.com/dr-congo
[2] BBC News Africa (2011). DR Congo: 48 rape every hour, US study finds. Retrieved August 6, 2013, from http://www.bbc.co.uk/news/world-africa-13367277
[1] Garriga, E. & Domènec, M. (2004). Corporate Social Responsibility Theories: Mapping the Territory. Journal of Business Ethics, 53(1), 51-71. doi: 10.1023/B:BUSI.0000039399.90587.34
[1] Garriga, E. & Domènec, M. (2004). Corporate Social Responsibility Theories: Mapping the Territory. Journal of Business Ethics, 53(1), 51-71. doi: 10.1023/B:BUSI.0000039399.90587.34
2010 World Bank Enterprise Survey: 65% of DRC firms interviewed expected to make informal payments to “get things done”
75% government contracts are done with corruption
Illegal trafficking of workers
Labourers controlled by rebel groups
Legal labour framework exists but authorities fail to act


Minerals are used to fund armed conflict and human rights abuses
Child labour
Less pay
Easy to traffic
Limited work force in DRC
Work to support their family
Our actions:
Check laws in all juristictions
Contract overage foreign labour
Approach NGO/World Bank to support the education of the children.

Our actions:
Check laws in all jurisdictions
Help illegal migrant workers gain legal migration status
Human trafficking clauses included in contracts with suppliers and subcontractors
Audits by third party specialists and Electronics Industry Citizenship Coalition (EICC).
Provide training to staff on law and guidance for transparent business.

Our actions:
Check laws in all jurisdictions
Additional systems to ensure early detection of corruption in any form inside and outside of the company.
Reduce number of channels in the supply chain
Recruit specialised staff to provide additional assurances on corruption risk management

Labor Rights
Conflict Minerals
Corruption
Environment
Labor
Environment
Health
Education
Economic development
Legal working age in mines:
DRC: 16
Colombia and US: 18
In DRC, 40% of children aged 5–14 are labourers
Why is child labour used in mining?
Human trafficking
Corruption
Sustainability I
Sustainability II
Women in DRC I
Women in DRC II
Women in DRC III
1.Market landscape – brief history of country and conflict
2.We may choose to act ethically because...
3.Involuntary/compulsory considerations
4.Voluntary considerations
5.Conclusion

DRC is estimated to have $24 trillion worth of untapped deposits of raw minerals
The major minerals extracted throughout the DRC are:
Cobalt
Diamonds
Gold
Copper
Mass scale and small scale looting (1/5 population: 12.5 million people)
References
AngloGold Ashanti (2012). AngloGold Ashanti Annual Reports 2011. Retrieved August 7, 2013, from http://www.aga-reports.com/11/pdf/drc.pdf
BBC News Africa (2011). DR Congo: 48 rape every hour, US study finds. Retrieved August 6, 2013, from http://www.bbc.co.uk/news/world-africa-13367277
Cause of Death Women (2013) DR CONGO. Retrieved August 6, 2013, from http://www.causeofdeathwoman.com/dr-congo
Central Intelligence Agency (2013). CIA - The World Factbook. Retrieved August 7, 2013, from https://www.cia.gov/library/publications/the-world-factbook/geos/cg.html
Garriga, E. & Domènec, M. (2004). Corporate Social Responsibility Theories: Mapping the Territory. Journal of Business Ethics, 53(1), 51-71. doi: 10.1023/B:BUSI.0000039399.90587.34
Gibson, D. (2013). Getting down to sustainable business in the DRC. Mining World, 10(1), 24-25.
http://www.rightrespect.org/2010/07/01/the-congo-goes-viral-a-call-for-the-electronics-industry-to-take-a-leadership-role-in-conflict-minerals/
http://www.worldvision.org/news/child-labor-children-reveal-horror-working-mines
http://en.wikipedia.org/wiki/Mining_industry_of_the_Democratic_Republic_of_the_Congo#History
http://www.katangamining.com/corp-respo/drc-challenges.aspx
http://www.anglogold.com/subwebs/InformationForInvestors/ReportToSociety04/values_bus_principles/economic/ep_cs_grp_5_1.htm
http://human-rights.unglobalcompact.org/case_studies/conflict-minerals/#mcs_291
http://www.worldvision.org/resources.nsf/main/press-reports/$file/201303_Child-Miners-Speak_REPORT.pdf
http://human-rights.unglobalcompact.org/dilemmas/conflict-minerals/?h=drc#.UgJubprrbIU
http://www.globalwitness.org/library/criminal-complaint-accuses-senior-manager-danzer-group-responsibility-over-human-rights

Conflict Mineral
Scale of Human Trafficking
Full transcript