Barrick Gold Corporation 
1. What are the challenges faced by extractive mining corporations in their attempt to establish subsidiary operations in developing nations
As major multinational extractive mining corporations continue to expand their developing country footprints, they are finding challenges in carrying out corporate social responsibility (CSR) to achieve a sustainable balance of benefits for business, its employees, stakeholders and the communities in which they attempt to establish subsidiary operations. In response to increasing global demand, extractive firms are operating where the natural resources are located, mostly in developing countries where governance mechanisms are often weak and sometimes non-existent. Developing countries envisage that the mining sector would be a key driver for economic growth and that the industry would eventually alleviate poverty and foster economic and social development. However, benefit gap exists between the anticipated and actual rewards to the local communities that are impacted by the mining corporations – mining has actually contributed little to the economic and social development in these developing countries. The Mineral Sector Policy of 1997 set the goal that mining would contribute 10% to Tanzania GDP by 2015. However, by 2010 mining’s contribution to GDP was only 2.3% (Tanzania Chamber of Minerals and Energy). Poverty and corruption have increased (Pegg, 2006), particularly, large-scale mining combined with weak governance of the rule of law has been found to be closely connected with human right abuses and forced displacement (Ballard and Banks, 2003).
Governments from various countries, companies in the extractive sectors, as well as non-government organizations, all with an interest in human rights and corporate social responsibility, have developed a set of Voluntary Principles on Human Rights and Security to help guide companies in maintaining the safety and security of their operations (Foley Hoag LLP, 2015). However,
As major multinational extractive mining corporations continue to expand their developing country footprints, they are finding challenges in carrying out corporate social responsibility (CSR) to achieve a sustainable balance of benefits for business, its employees, stakeholders and the communities in which they attempt to establish subsidiary operations. In response to increasing global demand, extractive firms are operating where the natural resources are located, mostly in developing countries where governance mechanisms are often weak and sometimes non-existent. Developing countries envisage that the mining sector would be a key driver for economic growth and that the industry would eventually alleviate poverty and foster economic and social development. However, benefit gap exists between the anticipated and actual rewards to the local communities that are impacted by the mining corporations – mining has actually contributed little to the economic and social development in these developing countries. The Mineral Sector Policy of 1997 set the goal that mining would contribute 10% to Tanzania GDP by 2015. However, by 2010 mining’s contribution to GDP was only 2.3% (Tanzania Chamber of Minerals and Energy). Poverty and corruption have increased (Pegg, 2006), particularly, large-scale mining combined with weak governance of the rule of law has been found to be closely connected with human right abuses and forced displacement (Ballard and Banks, 2003).
Governments from various countries, companies in the extractive sectors, as well as non-government organizations, all with an interest in human rights and corporate social responsibility, have developed a set of Voluntary Principles on Human Rights and Security to help guide companies in maintaining the safety and security of their operations (Foley Hoag LLP, 2015). However,
Bibliography: Ballard, Chris and Glenn Banks. "Resource wars: the anthropology of mining." Annual Review of Anthropology 32 (2003): 287-313. Canada Department of Foreign Affairs. "Mining in Developing Countries - Corporate Social Responsibility." The Government 's Response to the Report of the Standing Committee on Foreign Affairs and International Trade. 2005. Curtis, Mark and Tundu Lissu. A golden opportunity - Justice and Respect in Mining: How Tanzania is Failing to Benefit from Gold Mining. 2008. 18 February 2015 <http://www.africafiles.org/printableversion.asp?id=19218>. Environmental Law Alliance Worldwide. Breaking the Curse: How Transparent Taxation and Fair Taxes can Turn Africa’s. Johannesburg: Open Society Institute of Southern Africa, 2009. Lange, Siri. "Gold and Governance: Legal Injustrices and Lost Opportunities in Tanzania." African Affairs 101.439 (2011): 233-252. Pegg, Scott. "Mining and poverty reduction: transforming rhetoric into reality." Journal of Cleaner Production 14.3-4 (2006): 379. Price, Susanna. "Prologue: Victims or Partners? The Social Perspective in Development-Induced Displacement and Resettlement." The Asia Pacific Journal of Anthropology 10.4 (2009): 278. PwC. Global mining tax comparison: Income taxes, mining taxes and mining royalties. PriceWaterhouseCooper, 2010.