Mining and Metals: Global Portability of Governance and Agreements

Authors: Shattuck, Rachel; Scully, Maureen
Source: The Aspen Institute Center for Business Education
Year: 2009

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Abstract:

A common question in International Management is whether practices can be exported “as is,” whether they must be adapted, or whether a balance can be struck between these two approaches. In the mining and metals industry, many agreements with local communities have been created, evolving with time, experience, and learning from both positive and negative situations. Are these agreements portable across settings? On the one hand, the principles of human rights seem generalizable and widely applicable. On the other hand, the historic lessons about careful consultation with local communities and the gradual process of building trust indicate that agreements cannot be imposed and must be crafted specifically in each location. The case addresses the related issues of the portability of arrangements with multiple stakeholders and the role of business in human rights issues. A root consideration is the nature and extent of infrastructure in a locality, which will affect how agreements can be reached, enforced, and monitored by multiple parties. These governance structures may themselves be a function of how an area was colonized and how its resources were extracted, as two articles by Acemoglu, Johnson, and Robinson show.



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