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Bj And Son Property Management
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UWA School of Agriculture and Environment (M004), The University of Western Australia, 35 Stirling Highway, Crawley, Perth, WA 6009, Australia
Received: 26 February 2018 / Revised: 19 April 2018 / Accepted: 24 April 2018 / Published: 27 April 2018
Do Humble Ceos Matter? An Examination Of Ceo Humility And Firm Outcomes
It is often argued that extractive industries contribute to both poverty reduction and economic growth. However, there is also a body of research that shows that dependence on natural resources can lead to limited development, environmental degradation and social upheaval. This article examines differences in the socioeconomic and environmental status of mining and non-mining communities in rural Vietnam to understand the extent to which mining contributes to livelihood development and socioeconomic well-being. In particular, we examine the role that ‘corporate social responsibility’ (CSR) plays in supporting community development in the Phuoc Son and Phu Ninh districts of Quang Nam province. Content analysis of newspapers, government documents, and mining company reports provided a contextual overview of mining operations and community relations in each area studied. Semi-structured interviews were used to gather information from local and regional stakeholders to further understand the perceived impacts of mining operations on local communities. Our research found that compared to non-mining communities, communities with active mines have demonstrated increased employment, reduced poverty, improved infrastructure and social development along with increased CSR initiatives. However, a number of negative impacts of mining have been reported, including environmental degradation (eg deforestation, water pollution, etc.), increased criminal activity and drug addiction. The dependence of local communities on mine-related employment becomes acutely apparent when temporary mine closures lead to widespread unemployment. Local governments stand to benefit the most from mining with increased tax revenues and enhanced capacity to manage leased land. Communities that are not involved in mining and do not directly benefit from mining have maintained economic diversity and thus have been more resilient to economic shocks such as the closure of nearby mines.
Mining; socio-economic well-being; corporate social responsibility; environmental degradation; mining Vietnam; socio-economic well-being; corporate social responsibility; environmental degradation; Vietnam
The impact of natural resource extraction, including mining, on local communities has long been of interest to sociologists. Scientific studies have shown that extractive industries contribute to both poverty reduction and economic growth [1, 2]. However, there are also a number of studies that show that dependence on natural resources can lead to slow economic growth, environmental degradation and social upheaval [3, 4, 5].
Research on mining and development has generally focused on three areas: the impact of mining on governance, national economies and growth (e.g. [ 3 , 6 , 7 , 8 ]); the relationship between mineral extraction and social, economic and environmental change at the community level (e.g. [ 9 , 10 , 11 ]); and the development of socio-economic indicators to measure the impact of mining (e.g. [12, 13, 14]). However, over the past two decades, mining companies and governments have begun to pay more attention to the concept of “social license to operate” (SLO) and corporate social responsibility (CSR) in response to impacts on local communities in developing countries.
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According to the World Bank [2], SLO is a process through which mining companies engage with communities to obtain free prior and informed consent, negotiate voluntary resettlement, and address the rights of indigenous peoples. In contrast, CSR has emerged as a culture of practice through which mining companies attempt to improve livelihoods, socio-economic well-being and environmental conditions in the regions where they operate [15]. Indeed, SLO has been viewed as an element of CSR that aims to implement a number of important values, including accountability, trust, and stakeholder involvement [ 16 ].
While early research in mining and development, especially CSR, focused on African and Latin American communities (e.g. [8, 17, 18]), over the past few decades this approach has also become increasingly common in South- East Asia (eg [19, 20]). While CSR discourse is becoming more prevalent in Southeast Asia, there has been relatively little research on the topic, especially in Vietnam (e.g. [15, 21, 22]), despite the country having a long history of resource extraction. Moreover, the country has recently seen a rapid growth in mineral extraction, mainly as a result of growing demand for goods from China [23, 24]. Most of this mining is located in remote regions where mining is an important part of local livelihoods [ 25 , 26 ]. The little research that has been conducted tends to focus on a narrow set of issues related to environmental degradation [ 27 ], economic sustainability [ 28 ], governance [ 23 ] and the impact of resettlement on local populations [ 22 ]. What is lacking is an understanding of the extent to which mining has affected socio-economic development in mining communities, particularly in comparison to non-resource-intensive locations.
Against this background, the aim of this paper is to examine the differences in the social, economic and environmental conditions of mining and non-mining communities in rural Vietnam in order to understand the extent to which extractive industries contribute to livelihood development and socio-economic well-being. and environmental sustainability. The document focuses on two thematic areas of Quang Nam province, where significant gold mining is carried out – Phuoc Son and Phu Ninh districts.
Over the past few decades, researchers have questioned the notion that resource extraction ensures the socio-economic prosperity of communities [29]. First brought to attention in the 1960s during an investigation of “underdevelopment” in Latin America, [30] trade imbalances were highlighted where raw materials were exported from mining regions at relatively low prices and value-added products were imported at higher prices. In response to the mining boom of the 1980s, Godoy [31] called for a systematic study of the social and cultural dimensions of mining and development. According to Ballard and Banks [32], Godoy’s review of industry-related research provided a framework that changed the field of mining research with a greater focus on mining communities, especially indigenous peoples in developing countries.
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Subsequent studies have highlighted the socio-economic impact of resource extraction on adjacent communities, particularly in the context of remote regions and ethnic minorities. For example, the World Bank [2] has championed the benefits of mining jobs, infrastructure development, and poverty reduction, yet there are many studies in the literature linking resource-dependent communities to high levels of unemployment and poverty [8, 33], tensions between local residents and mining companies [34, 35] and an increase in crime [36].
Mining has also been criticized as a destructive economic activity that damages the environment and health [37]. Resource extraction is often cited as a major factor in environmental degradation, particularly in relation to water pollution, deforestation, and acid mine drainage [38]. Moreover, due to the use of toxic chemicals in the extraction process, mercury and cyanide have been linked to public health impacts [ 14 , 39 ]. Around the world, volatile commodity prices are an inherent vulnerability of resource-dependent communities. Volatility is closely related to fluctuations in production and employment in the mining industry [40] and contributes to economic instability. The resulting uncertainty can make private capital and governments reluctant to invest in resource-dependent communities, further inhibiting economic development [41].
In part, resource dependency issues are exacerbated by the corporate and geographic characteristics of mining operations. In many cases, resource extraction is dominated by a single firm or a small number of firms, and given the scale and capital requirements of modern mining, the sector is often dominated by large multinational companies. Dependence on a single firm can constrain economic diversification—especially forward and backward linkages—and increase vulnerability when prices become volatile [42]. Indeed, resource-dependent communities are often borderlands with large indigenous populations [ 10 ], where livelihoods depend on mining and where control over company operations is limited [ 43 ].
In many ways, much of the debate surrounding ‘unsustainable mining’ aligns with notions of the ‘resource curse’ [44], where economic growth
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