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Conference Proceedings

SDIMI 2009 - Sustainable Development Indicators in the Minerals Industry

Conference Proceedings

SDIMI 2009 - Sustainable Development Indicators in the Minerals Industry

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Profitability, Sustainability and Community Development - Is There a Contradiction? A Case of Gold Fields' Driefontein Gold Mine in South Africa

Since the days of Adam Smith and Milton Friedman the discussion of corporate citizenship and sustainability has been flooded with multiple contradictions, with proponents of sustainability saying that it is a crucial cog in the business strategy, while those against, maintain that the business of business is business' and therefore sustainability issues are just add-ons._x000D_
Sustainability arises from a deeply held vision by corporate leaders that businesses can and should play a role beyond just making money. Businesses should embrace the understanding that everything that a company does has an impact both internally and externally (communities, employees and customers), and the natural environment._x000D_
This paper highlights the approach that led to a view that there is a contradiction between profitability, sustainability and community development, and we provide a further argument to the contrary. This argument is based on a comprehensive literature review of over three decades by various scholars linking corporate social performance and corporate financial performance._x000D_
Driefontein Gold Mine's approach is that of linking the community development, natural environmental and employee well-being initiatives and projects to the mine's business strategy. The paper further highlights the coordination and implementation mechanism of sustainability at the mine where the accountability lies with the head of the mine operations. A two pronged approach is employed where there is an internal dialogue on sustainability between the various departments coordinated by the sustainable development department and an external tri-sector partnership with local government, interested and affected parties and the mine. These approaches are closely linked to the contributions towards the mine's financial bottom line._x000D_
FORMAL CITATION:Makuluma, H, 2009. Profitability, sustainability and community development - is there a contradiction? A case of Gold Fields' Driefontein Gold Mine in South Africa, in Proceedings SDIMI 2009 - Sustainable Development Indicators in the Minerals Industry, pp 273-282 (The Australasian Institute of Mining and Metallurgy: Melbourne).
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  • Profitability, Sustainability and Community Development - Is There a Contradiction? A Case of Gold Fields' Driefontein Gold Mine in South Africa
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  • Published: 2009
  • PDF Size: 0.25 Mb.
  • Unique ID: P200906037

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