Harvard Case - Putting the Guiding Principles into Action: Human Rights at Barrick Gold (A)
"Putting the Guiding Principles into Action: Human Rights at Barrick Gold (A)" Harvard business case study is written by Rebecca M. Henderson, Nien-he Hsieh. It deals with the challenges in the field of General Management. The case study is 31 page(s) long and it was first published on : Mar 19, 2015
At Fern Fort University, we recommend that Barrick Gold Corporation (Barrick) implement a comprehensive and proactive approach to embedding human rights principles within its corporate strategy and operations. This involves a multi-faceted strategy that includes strengthening its existing human rights framework, enhancing stakeholder engagement, promoting transparency and accountability, and fostering a culture of respect for human rights throughout the organization.
2. Background
This case study focuses on Barrick Gold Corporation, a leading global gold mining company facing challenges in upholding human rights standards across its diverse operations. The case highlights the company's efforts to integrate human rights into its business practices, including the development of a comprehensive human rights policy and the establishment of a dedicated Human Rights Department. However, the case also reveals that Barrick continues to face criticism and scrutiny regarding its human rights performance, particularly in relation to land acquisition, community engagement, and the potential for human rights abuses in its mining operations.
The main protagonists in this case are:
- Barrick Gold Corporation: A multinational mining company seeking to balance its business objectives with its commitment to human rights.
- Human Rights Activists and NGOs: Organizations advocating for the protection of human rights and holding Barrick accountable for its actions.
- Local Communities: Residents impacted by Barrick's mining operations, who may face displacement, environmental degradation, and other challenges.
- Barrick's Management: Executives and employees responsible for implementing the company's human rights strategy and ensuring compliance.
3. Analysis of the Case Study
This case study can be analyzed through the lens of various frameworks, including:
- Corporate Social Responsibility (CSR) Framework: This framework emphasizes the responsibility of corporations to operate ethically and sustainably, considering the impact of their actions on stakeholders. Barrick's efforts to develop a human rights policy and engage with stakeholders demonstrate a commitment to CSR.
- Stakeholder Theory: This theory emphasizes the importance of considering the interests of all stakeholders, including employees, customers, communities, and the environment. Barrick's challenges stem from the conflicting interests of these stakeholders, particularly in regions where mining operations have a significant impact on local communities.
- Strategic Management Framework: This framework provides a structured approach to analyzing the external and internal environment of an organization, setting strategic goals, and developing action plans. Barrick needs to integrate human rights considerations into its strategic planning process to ensure that its business objectives are aligned with its human rights commitments.
4. Recommendations
To address the challenges outlined in the case, Barrick should implement the following recommendations:
1. Strengthen Human Rights Framework:
- Refine and Enhance Human Rights Policy: Conduct a thorough review of the existing policy, ensuring it aligns with international human rights standards, addresses specific risks associated with mining operations, and provides clear guidance for employees.
- Develop Comprehensive Human Rights Due Diligence Process: Implement a robust due diligence process to identify, assess, and mitigate potential human rights risks in all stages of the mining lifecycle, from exploration to closure.
- Establish Independent Human Rights Advisory Board: Create an independent advisory board composed of experts in human rights, international law, and mining to provide oversight and guidance on Barrick's human rights performance.
2. Enhance Stakeholder Engagement:
- Promote Transparency and Accountability: Publish regular reports on human rights performance, including details of any incidents, complaints, and remedial actions taken.
- Strengthen Community Engagement: Implement participatory approaches to engage with local communities, ensuring their voices are heard and their concerns addressed throughout the mining project lifecycle.
- Establish Grievance Mechanisms: Create accessible and effective grievance mechanisms for communities and employees to raise concerns and seek redress for human rights violations.
3. Foster a Culture of Respect for Human Rights:
- Integrate Human Rights Training: Provide comprehensive human rights training for all employees, including managers, to enhance awareness, knowledge, and skills in upholding human rights principles.
- Develop Ethical Leadership Programs: Promote ethical leadership by providing training and support to managers on ethical decision-making, conflict resolution, and cultural sensitivity.
- Incentivize Human Rights Performance: Incorporate human rights performance into employee performance evaluations and reward systems, recognizing and rewarding employees who uphold human rights standards.
4. Leverage Technology and Analytics:
- Utilize Technology for Monitoring and Reporting: Employ technology solutions to monitor human rights risks, track grievances, and report on human rights performance.
- Develop Data-Driven Decision Making: Use data analytics to identify patterns, trends, and potential risks related to human rights, enabling proactive interventions and informed decision-making.
5. Basis of Recommendations
These recommendations are based on the following considerations:
- Core Competencies and Consistency with Mission: The recommendations align with Barrick's stated commitment to responsible mining practices and its desire to be a leader in the industry.
- External Customers and Internal Clients: The recommendations address the concerns of external stakeholders, including local communities, NGOs, and investors, while also fostering a positive work environment for employees.
- Competitors: By implementing these recommendations, Barrick can differentiate itself from competitors by demonstrating a strong commitment to human rights, attracting investors and customers who value ethical business practices.
- Attractiveness: The recommendations are expected to enhance Barrick's reputation, reduce risks, and improve its long-term sustainability, ultimately contributing to increased profitability and shareholder value.
6. Conclusion
By implementing these recommendations, Barrick Gold Corporation can demonstrate a genuine commitment to human rights, improve its reputation, enhance stakeholder relationships, and mitigate risks associated with its operations. This proactive approach will enable Barrick to achieve its business objectives while upholding ethical standards and contributing to a more sustainable future.
7. Discussion
Alternatives not selected:
- Maintaining the status quo: This option would likely lead to continued criticism and reputational damage, potentially impacting Barrick's business operations and long-term sustainability.
- Focusing solely on legal compliance: While important, this approach would not address the broader concerns of stakeholders regarding human rights impacts and would not be sufficient to foster a culture of respect for human rights within the organization.
Risks and key assumptions:
- Resistance to change: Some employees and managers may resist the implementation of new policies and procedures, particularly those related to human rights.
- Cost of implementation: Implementing these recommendations may require significant investment in training, technology, and resources.
- Effectiveness of implementation: The success of these recommendations depends on effective implementation and ongoing monitoring.
8. Next Steps
Timeline with key milestones:
- Year 1: Develop and implement a comprehensive human rights policy, establish an independent advisory board, and conduct human rights training for all employees.
- Year 2: Implement a robust human rights due diligence process, strengthen community engagement initiatives, and establish grievance mechanisms.
- Year 3: Leverage technology for monitoring and reporting, develop data-driven decision-making processes, and incorporate human rights performance into employee evaluations and reward systems.
By taking these steps, Barrick can effectively integrate human rights into its core business practices, becoming a leader in responsible mining and setting a positive example for the industry.
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Case Description
In 2010, Human Rights Watch, a well-regarded international NGO, approached Barrick Gold asserting that members of the company's security force at the Porgera Gold Mine in Papua New Guinea had on multiple occasions raped women who were trespassing onto the mine's waste dumps in search of gold. Subsequent investigations identified significant evidence to support the allegations, and the revelations led to broad ranging change at both Porgera and at Barrick more generally. Drawing heavily on the United Nation's Guiding Principles on Business and Human Rights (GPs), Barrick not only moved to make efforts to provide restitution to the women involved, but also designed and rolled out a comprehensive set of policies designed to embed the protection of human rights into the entire company. Barrick also played a central role in leading the development of an auditing and verification framework for the Voluntary Principles on Security and Human Rights (the VPs), a set of commitments embraced by most of the world's largest extractive companies. The case provides students with an opportunity to analyze the challenges that arise from operating in environments with weak state institutions; to examine the challenges of implementing voluntary frameworks, such as the GPs or VPs, and their potential as alternatives to state institutions; to learn about the field of business and human rights; and to develop an analytic framework for evaluating the responsibilities of business leaders to society, especially from the perspective of human rights.
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