Corporate Social Responsibility for Mining Corporations: Balancing Profitability and Energy Sustainability

DOI: 10.5176/2251-3809_LRPP16.26

Authors: Mas Rahmah

Abstract:

This paper aims at discussing the CSR for mining corporations to ensure energy sustainability. The paper argues that mining corporations, especially oil and gas companies sit directly at the heart of the energy production and half of all energy supplied to the world is provided by mining corporations, thus they have important role in ensuring energy sustainability. Contrarily, in nature they are the economic entities enhancing maximum profit at the expense of vulnerable energy, environmental degradation, mineral resources depletion that can be the perils of the energy sustainability. The paper asserts that the treat of energy sustainability leads to emerging demand of Corporate Social Responsibility (CSR) for mining corporations to balance their profit orientation and responsibility to ensure the energy sustainability. This paper will contests the conflict between the nature of CSR and the nature of mining corporations as the economic agents aiming at profit maximization. The paper also evaluates whether ensuring energy sustainiblity by mining corporations can be considered as CSR. Then the paper analysis the dichotomy of imposing CSR for mining corporations based on voluntary or mandatory basis. Finally this paper highlights the need and the significance for mining corporations to balance their profitability against CSR in order to ensure energy sustainability.

Keywords: CSR, energy sustainability, mining corporations, profitability.