SELF-REGULATION IN THE MINING INDUSTRY
Many industries have established their own systems for self-regulation. They often do so when companies operate in countries where financial, technical, environmental and social regulation is weak and when the industry is challenged by legitimacy issues related to behaviour in one of these areas. Mining is one industry that has progressed unevenly down the road of self-regulation in these areas. This paper examines how the development of self-regulation for mines and mining companies involves difficult questions of scope, rules, membership, assessment criteria and performance evaluation. Using a range of theoretical and empirical results from research on self-regulation, performance rating and corporate strategy, this paper analyses the strategic and operational issues related to the idea of self-regulation in the mining industry. The analysis indicates that while self-regulation may bring benefits to members, they are likely to take a long time coming; but when they do arrive they may be substantial. Using the fact that in relation to technical and financial issues the industry is quite experienced in self-regulation – not least as it is more reluctant in areas such as environmental and social performance – the case is made for a comprehensive and innovative approach, that draws on the areas where the industry is experienced and develops new institutional solutions in the areas where the industry is more reluctant.
mining; Regulations; Performance; Standards; Governments; Government; Mining industry; Research; Benefits;