Does the Principle of Compensation Provide a Solid Basis for Establishing Corporate Environmental responsibility: A Case study of Madagascar’s Mining…

2019

The mining sector has been criticized for its lack of environmental responsibility, but a certain amount of progress has been evident. At the same time, a number of developing countries have opted for an environmental management framework underpinned by the principle of compensation. Even though this principle is closely aligned to corporate social responsibility, it does not appear to represent the most effective way of achieving corporate social responsibility. Based on a case study in Madagascar, we examine the application of the principle within a mining project and show that its inadequacy stems from failing to consider the population’s response to the actions taken by companies. In ou…