Free «Xstrata's CSR Policies» Essay Paper

Xstrata in Tintaya has several policies that have helped it in maintaining corporate social responsibility. These policies include: observing ethics and human rights, maintaining workplace health and safety, producing products that are safe for clients, contributing to the economy, and caring for its employees. Furthermore, it ensures environmental performance in addition to developing sustainable communities. This has helped it in empowering the community in areas where it conducts its operations while at the same time increasing its profitability. This essay provides a summary of Xstrata’s corporate social responsibility policies.

Xstrata in Tintaya has several policies that have helped it maintain ethics in all its activities. Its ethics are defined by its code of conduct. No employee is supposed to accept any form of bribery. Every employee at Tintaya has the right to receive fair wages and equal pay for equal work. Freedom of association, safe and healthy workplaces, non-discrimination, and protection of legal rights are guaranteed as well. Furthermore, Xstrata in Tintaya has maintained positive relationships with labor unions in this area in addition to offering their employees fringe benefits such as family medical insurance. This insurance benefit even covers employees’ parents without considering their age limit. Furthermore, Xstrata transports all its workers to their places of work and offers them training, food, uniforms, and lodgings. It does not accept forced or underage labor.

 

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It also offers training and leadership programs that help in strengthening the competence of its employees. In addition to this, the employees’ performance is regularly assessed in order to ensure that the employees are efficient in all the duties that they perform. Xstrata in Tintaya has also introduced a talent program that is aimed at identifying employees eligible for promotion and coaching employees on mining operations. It also has MoR Program that has the responsibility of drafting plans for promoting professional development. In 2011, it followed the commitments of career development for 24 employees. It has an annual training plan that is designed to improve performance and functional skills of all the employees.

Xstrata in Tintaya has several policies that help to maintain workplace health and safety. It has enhanced risk analysis and controls for its employees through HIRAC in order to ensure employee’s safety. Concerning occupational health, it has developed health programs that investigate common diseases affecting its employees to determine their causes. It also provides all information on product composition, toxicology relating to human health and environment as well as handling, storage, and exposure issues. This helps to protect the employees’ health and reduces incidences of employees’ contamination due to toxic chemicals. It also requests all its suppliers to provide information of the physic-chemical properties of all the materials they use to produce copper cathodes and concentrates. After getting this information, it uses Our Health and Hygiene, Safety and Environmental policy to evaluate whether the employees can work with these components.

Xstrata has also undertaken efforts to ensure that it protects the environment for the benefit of the public. Through the Development Table and Canipia Bilateral Process, it meets with the local communities in order to check whether it complies with the environmental plans. It mainly focuses on responsible water management in order to ensure that the environment has enough water supplies to support the ecosystem. In 2011, it appointed a water resource superintendant who is responsible for ensuring that there is efficient water use in the area around Tintaya. Furthermore, it trains its employees on how to implement initiatives for water conservation such as reusing tailing dam water. It also considers reusing mine water instead of freshwater for mining activities. Xtrata in Tintaya has also undertaken efforts to ensure biodiversity and land management. It has formulated the mine closure plan that aims at re-vegetating 22 hectares of its mining area. This project is expected to end in 2012. Moreover, it carried out the Puya Raimondii project aimed at creating community awareness in order to prevent destructive activities such as burning of plants. Furthermore, it plans to rehabilitate 18.75 hectares. It has also undertaken efforts to improve waste management. It accepted the Comprehensive Waste Management Plan that classified wastes produced from different areas of operations. This plan helped in providing it with information for recycling programs. It has also helped in managing climate change through its afforestation programs

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Xstrata in Tintaya has also formulated policies that have helped it create sustainable communities in the areas where it conducts its operations. It received the Peru 2021 Award for Corporate Social Responsibility and Sustainable Development due to its project known as Dairy Plant-Development of the Livestock Sector in Espinar. This project also offered job opportunities and training to the local communities and created direct income to the producers. Xstrata also offers direct communication with the community. This is achieved through holding meetings with the community. In addition to this, it communicates to the community through a magazine known as Kuska Winasuchis, Radio Stereo Titnaya, and Willanakuy TV. It also has a Grievance and Complaint Management centre in Titnaya where the community residents can present their complaints or suggestions regarding the activities of Xstrata in Tintaya. These centers have coordinators who work together with community residents to verify the complaints. Tinaya received a complaint in 2011 regarding level of dust that caused nuisance to the local community, and it implemented dust suppressors in order to reduce the level of dust in that area. It signed a Framework Agreement in 2003 that aimed at developing Espinar province. It contributes 3 % of its profits to fund this agreement. In 2011, it contributed $ 10,374,015 to fund this project. It encourages citizens’ participation in implementing this framework since they help to prioritize which projects to undertake and oversee how the funds are utilized.

It also started the Canipia Bilateral Process. This was a bilateral agreement between the Front of the irrigators in Canipia Microbasin and Xstrata. This project focuses on environmental protection, agricultural and livestock development. Furthermore, Xstrata started the Tintaya Foundation, which is a non-profit private foundation concentrated on promoting the building capacity, abilities, and skills of underprivileged social sectors in Espinar. It also has also established the Development Table that is aimed at resolving conflicts with its surrounding communities due to previous mining activities. In 2011, it allocated a budget of about $ 360,000 to fund 23 projects under the Development Table. It also started the Espinar Educational Resource Centre that supported the academic work of public schools from Espinar through its collaboration with the Ministry of Education. This project has succeeded in helping more than 8, 000 children and adolescents in pre-school as well as primary and secondary school. It also helped in the construction of Espinar Dairy Plant that aimed at boosting the production of milk in Espinar. In 2011, Xstrata managed to improve cattle genetic management, which led to an increase in the quality and quantity of milk that is produced in this region.

Tintaya Antapaccay constructed the Alpaca Fibre and Sheep Wool Plant in Pallpata district. This project cost about $ 7 million, and its main aim is to process alpaca fibre and wool from the neighboring provinces. It also established a program known as the Solidarity in conjunction with People Mining Program. This project aimed at empowering people living in extreme poverty, for example, people in Chumbivilcas province. It has allocated a voluntary contribution to the people from this province and this money helps to promote their well being and social development. It has also raised a fund known as Tintaya Regional Mining Fund managed by Tintaya Civil Association. In 2011, it allocated $ 11.6 million to support 215 projects benefiting more than 67,000 community residents.

Xstrata in Tintaya offers good services and products to all its clients. It conducts satisfaction survey each year, and from the results it receives from the survey, it proposes initiatives on how to improve its relationships with clients. Moreover, it uses low arsenic and bismuth content in making its copper, and that is why smelters love its copper. It also has good product delivery coordination; thus, ensuring that its clients receive all their orders on time. It also provides information transparency to all its clients by stating the characteristics and quality of its products, especially in terms of concentration levels and purity.

To conclude, it is evident that Xstrata in Tintaya has several policies that have helped it maintain corporate social responsibility. It has a code of ethics that ensures that its employees do not engage in corruption practices. Furthermore, it observes human rights since it does provide equal pay to all employees for equal work done. It also has policies that offer training and development for all its employees, thus ensuring career growth for its employees. Xstrata in Tintaya has also formulated policies for environmental protection. Through Development Table and Canipia Bilateral Process, it meets with local communities to discuss whether they comply with the environmental protection plans. It has also formulated policies that have helped it create a sustainable community in the areas where it conducts its operations. It engages in direct communication with its community members through its meetings. It also started Canipia Bilateral Process that helped in improving the environment around Canipia in addition to improving livestock development.