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Topic: Mineral rich area but local people are poor: A case of Marikan South Africa Executive summary Areas that are mineral rich are often comprised of poor people living around especially the workers in the mines. There are many reasons that can be attributed to this scenario which is quite common in different parts of the globe…
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Download file to see previous pages However, research has shown that local members of the community are not benefiting much from the resources that are mined in their area. It has also been found that the working conditions of the employees are not favourable since the mine has been recently hit by a spate of strikes over pay issues. It has also been found that people who were protesting over improved working conditions were harshly treated and 34 lost their lives after the police opened fire on the protestors. In principle, organizations that extract natural resources in different places should plough back to the members of the community. It has been recommended that the company involved in this case should make efforts to empower the employees in particular so that they can also directly benefit from the natural resources that are obtained from their areas. This can be done through increasing their wages as well as creating community share trusts. This action is designed to fulfil the corporate social responsibility (CSR) concerns of the company. Overview of the topic In most cases, natural resources like minerals are exploited for various reasons. Minerals contribute towards economic growth and development if they are sold to other countries. Through exploitation of mineral resources in a particular area or country, employment is created and the welfare of the people is likely to be improved. There are many benefits that can be derived from extracting natural resources in a certain area. Development of infrastructure can also be promoted if a natural resource that is of commercial value is being mined in a particular area. Essentially, informed companies should make an effort to ensure that their activities also positively contribute to the growth and development of the areas they would be operating in. This can also help to create trust among the local members since they would stand to benefit from the wealth obtained from their backyard. However, this is not the case in some places that are rich in mineral resources since the people living around the area where the minerals are being mined live in abject poverty. This is in stark contrast to minerals millions of dollars extracted in these people’s background but they do not benefit from these resources. This is ironical because local residents in the communities where the precious minerals are mined are poor and they do not directly benefit from the wealth extracted from their backgrounds. This calls for organizations involved in this business to be more accountable and socially responsible for their activities. Essentially, the concept of “CSR maintains that businesses are part of the larger society in which they exist and are accountable to the society for their operations,” (Strydom, 2004 p.11). This means that organisations should strike a fine balance between the needs and interests of customers, needs of the environment and the need for businesses to realise their financial goals. This goes hand in hand with the concept of business ethics which tries to make a distinction between something that is morally good from bad (1994). Apart from inequalities in the distribution of wealth obtained from extraction of natural resources in a particular area, it can be seen that the local community members are also exposed to dangers such as environmental pollution that are directly caused by the activities of the company extracting the ...Download file to see next pagesRead More
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