Mining and Sustainability in the Circumpolar North: The Role of Government in Advancing Corporate Social Responsibility

Abstract

Corporate Social Responsibility (CSR) is recognized as important to fostering sustainable natural resource development in the Circumpolar North. Governments are playing an increasingly active role in promoting and shaping CSR initiatives, often in collaboration with Indigenous communities and industry. This paper explores the role of CSR in mining for improving socio-economic and environmental management practice. The article argues that government instituted regulations can lead to the development and implementation of CSR practices by mining companies. To examine the relationship between government requirements and CSR, we use two Northern case studies: Cameco Corporation’s uranium mining operations located in Saskatchewan, Canada and Northern Iron’s iron mining operation located in Troms and Finnmark county, Norway. Through an in-depth review of scholarly literature, document analysis, and semi-structured interviews, our findings suggest that the role of the state in the initiation and implementation of CSR is of much greater importance than is currently acknowledged in the literature. In the case of Cameco, the Mine Surface Lease Agreements agreed to by the corporation and the provincial government provided motivation for the development and implementation of their world-renowned CSR practices, resulting in a community-based environmental monitoring program and benefits for both the company and surrounding communities. With Northern Iron’s operations in Kirkenes, working hour requirements instituted by the Norwegian Government allowed for significantly higher levels of local employment. Our findings suggest a greater role exists for government to facilitate the adoption of CSR policies, contributing in turn to improved socio-economic and environmental outcomes for Northern communities.

To Approve or not to Approve? A Comparative Analysis of State-Company-Indigenous Community Interactions in Mining in Canada and Sweden

“…Saskatchewan, BC, NWT and northern Sweden are regions with long traditions of mining, and the targeted commodities include copper and gold (Prosperity and Aitik), iron (Kallak/Gállok), uranium (McArthur River/Key Lake) and diamonds (Diavik). All cases are located in sparsely populated and historically resource dependent regions where forestry, mining and traditional economic activities such as hunting, fishing and trapping are important (see Beland Lindahl et al, 2018 ; Jackson et al, 2023 ; Wilson and Allard, 2023 ; Poelzer et al, 2023 ). Land use competition or conflicts are prominent issues in both countries; in Sweden, Sámi RHCs depend on reindeer herding which requires extensive territories and is under pressure by cumulative land use impacts (Lawrence and Kløcker Larsen, 2019 ), and in Canada, Indigenous communities rely on traditional hunting, trapping and fishing which also is sensitive to the impacts of resource extraction.…”

“…Nevertheless, uranium extraction is associated with significant environmental risks and, as a result, environmental impacts have become important issues. However, in this case it was possible to resolve land use and environmental issues through communication and mutually appreciated collaboration between the company and the Indigenous community (Jackson et al, 2023 ; Poelzer et al, 2023 ).…”

“…The Government of Canada has since long engaged in an active reconciliation process with Indigenous peoples (Government of Canada, 2023 ), reflecting the fact that reconciliation is a legal and political objective. Accordingly, Canada has promoted flexible governance mechanisms and partnerships with corporate actors to help ensure sustainability and protect the rights and interests of Indigenous peoples (Long, 2019 ; Jackson et al, 2023 ). This approach has facilitated the development of various kinds of industry-state agreements, such as Mine Surface Lease Agreements (MSLA) in Saskatchewan and industry-state-community agreements in the Diavik case (Poelzer et al, 2023 ).…”

“…Altogether nine interviews (three with company representatives, four with the involved Sámi RHCs and two with their legal representatives) were conducted in the Swedish cases. This comparative analysis also drew on the already completed articles in this Special Section exploring the individual cases and their institutional context (Allard and Curran, 2021 ; Wilson and Allard, 2023 ; MacPhail et al, 2022 ; Jackson et al, 2023 ; Poelzer et al, 2023 ; Poelzer, 2023 ). All empirical information was systematically compiled, analyzed thematically in relation to RQ1-3 and compared to identify important similarities and differences between Canada and Sweden generally and the individual Canadian and Swedish cases specifically.…”

Sentimentally attached to hometown: CEO hometown identity and corporate environmental violations

“…If laws and regulations are violated, corresponding punishments will follow and affect enterprise performance (Tang et al, 2015). Jackson et al (2023) proposed that the government can ensure the compliance of the environmental behavior of enterprises by charging fines for violating environmental regulations. In regions with strict environmental regulations, the costs of environmental violations rise, and hometown CEOs may be inclined to reduce environmental violations due to the overall consideration of regional and corporate interests.…”