Introducing the concept of “Using the transformative power of businesses and collective action to create sustainable value and social support”
On August 19, 2019, the Business Roundtable (BRT), a lobbying group composed of leading CEOs in the US, released an updated Statement on the Purpose of a Corporation. This statement expresses a fundamental commitment to all stakeholders, including customers, employees, suppliers, communities, and shareholders, differing from a long-standing view that shareholder profit is the sole purpose of corporations.
This initiative represents a flicker of emerging change in a landscape historically focused on shareholder value first and foremost to a new paradigm of Collective purpose-based stakeholder engagement. Whilst the members of the Business Roundtable are represented by a great variety of companies no major mining company seems to be participating at least at this point.
The complexity of “stakeholder engagement” for mining companies is exponentially more complex than traditional companies and whilst the principles of these new emerging business models are consistent, the specific application of these principles to varying regions is not; particularly when considering jurisdictional demographics, societal needs and regulatory / economic maturity variations such as Australia, Chile, Papua New Guinea or Ecuador as just some examples.