Playing the publicity game

Comment

Publishing Date: 08 Sep 2010 3:24pm GMT
Author: Mining, People and the Environment

Corporate Social Responsibility CSR Environmental Change Health and Safety Legal and Legislation Sustainability Pollution & Waste management

In announcing his departure from BP, chief executive Tony Hayward said, in the wake of the Gulf oil spill, that the company had been “a model of corporate social responsibility” but had failed to be a “PR success”.

A similar motto could be applied to some mining companies, which find it hard to translate any success in environmental or social concerns in to a strong public image.

Arguably, the industry has come a long way in tackling CSR problems past and present, but this good work is still failing to reach the ears of communities, shareholders and regulators alike.

What is more, bad press scares all these groups and can spell serious trouble for planned mining projects.

Take the case of Vedanta Resources plc (see below), which lost its proposed bauxite project in Orissa because of alleged environmental law violations and concerns about the welfare of local indigenous people.

The decision to withdraw the project was ultimately made by the Indian Ministry for Environment and Forests, but a hugely public campaign by NGOs (including celebrity support) will not have helped Vednata’s case.

The example should serve as a cautionary tale to others in the industry. Public image is just as important as share price performance, and the industry would do well to keep working hard on the battle for hearts and minds.