User:ZHEN ZHU (RUTGERS)/sandbox

Ikrom2014 (talk) 18:39, 15 March 2018 (UTC)== Draft (List Only) ==

=== Background Infromation === √ 3) Mining is an important part of Indian industry, which contributes about 3% of the GDP in 1990s, and about 2% of the GDP now.

√ 4) Goa, India, has 1000 million tonnes of iron ore reserves. Therefore, Goa has a strong mining industry which produces and exports a large amount of iron ore.

√ 5) In the early 21th century, the demand of iron ore from China increased, accordingly, the iron ore exported from Goa increased. Plus, the indian government liberlized the iron ore trading market, so that mining companies can easily export their iron ore.

√ 6) The spot contract between mining companies and Chinese steel plants made the trade convenient.

√ 7) According to an Act of Parliment in 1987, mining companies had to obtain the lease for 20 years in maximum from the Indian Government, otherwise, their mining behaviours were not allowed.

Environmental and Social Issue
1)

CSA and Mineral Foundation of Goa (MFG)
√ 1) Corporate Social Action (CSA) is a such a behavior by an company or organization that intend to solve social problems and create social benifits. Discrete CSA is a type of social actions that CSA is not much considered as core business strategies in a company. This type of CSA is common in Asia.

√ 2) Companies Act 2013 of India requires every company to invest 2% of their net profit in social program in every financial year (135, 5).

√ 1) Mineral Foundation of Goa is a non-profit organization that founded by 16 mine operators on December 12th, 2000.

√ 2) MFG involved in many projects in order to help the communities and residents living near mines solve social and environmental problems.

√ 3) MFG took corporate social actions by investing in many social and environmental projects, such as environmental sustainability, healthcare and educational support. For instance, MFG totally invested Rs. 10 crores in Environmental sustainability project between 2000 and 2010

√ 4) In some ways, the foundation contributed a lot, such as creating ponds and donating books. The society and environment were improved under these project. However, MFG was unwilling to give futher support to maintain these results.

√ 5) The farmers preferred to receive money from mining companies, whereas the mining companies wanted to provide technical assistance.

The Ban
√ 1) Shah Commission found several important fact that existed in Goa's mining industry, when they visit Goa in 2010.

√ 2) Some mining companies continued mining even if their leases was expired.

√ 3) Some mining companies were mining outside the permissive mining area.

√ 4) Some mining companies failed to maintain a required distance between overburden and irrigation canals.

√ 5) The production of iron ore exceeded the allowable output by more than 15%.

√ 6) Based on those facts, the state government banned mining in Goa. Later, the Supreme Court also gave a temporary ban on mining operations in Goa.

Result and Conclusion
√ 1) The ban on mining industry directly caused a large amount of revenue vaporized. The government lost up to Rs. 50,000 crores (8 billion dollars). Furthermore, the mining ban also hitted India's GDP in 2013 and 2014.

√ 2) People who lost their jobs were unwilling to take their previous occupations, like fishing and farming.

√ 3) Due to the lack of government documents and supervision, mine operators became more opportunistic, in other words, companies tended to take the risk of doing illegal things and gain more profit.

√ 4) Even though some mining companies took corporate social actions, the industry's core strategy conflicted with the corporate social responsibility. Finally, the mining behavior was prohibited. Therefore, taking corporate social actions doesn't mean that the social responsibility is accepted by community or government.

5)

Background
Mining plays an important role in Indian industry, which contributes about 3% of the GDP in 1990s, and about 2% of the GDP now. . Goa, a state of India, has 1000 million tonnes of iron ore reserves and thereby has a strong mining industry. It exports about 30 million tonnes of iron ore annually.

In the early 21 century, the demand of iron ore from China increased in a dramatic speed, accordingly, the export of iron ore from Goa increased. Meanwhile, Indian government loosened the regulation on iron ore trading. Besides, the spot contract between mining companies and Chinese steel plants accelerated the trade. All these aspects resulted in the doubled export of iron ore between 2005 and 2010.

In order to maintain the sustainability of mining, Indian government set up a series of regulations included in Act of Parliament in 1987. According to Act of Parliament, mining companies had to obtain the lease for 20 years in maximum from the Indian Government, otherwise, their mining behaviors were not allowed.

CSR and Mineral Foundation of Goa
When it comes to the corporate social responsibility (CSR), Indian government encouraged companies to take discrete corporate social actions. According to Companies Act 2013 of India, every company was required to invest 2% of their net profit in social program annually. Discrete corporate social actions means corporate social actions are not a part of the core strategy in companies, so companies are more likely to take social actions by setting up their own foundation.

Mineral Foundation of Goa (MFG) is a non-profit organization that founded by 16 mine operators on December 12th, 2000. The main purpose of MFG is to implement their social responsibility by helping communities and residents near the mining area in various ways. Their most common take was to invest in social and environmental projects, such as environmental sustainability, healthcare and educational support. For instance, MFG totally invested Rs. 10 crores in Environmental sustainability project between 2000 and 2010. In some ways, they contributed a lot to the society through these projects, such as creating ponds, donating books and equipment to the schools. However, MFG was unwilling to give further support to maintain their results. On the other hand, farmers preferred to receive money from mining companies, whereas mining companies wanted to provide technical assistance.

The ban
In 2010, Shah Commission visited Goa, and soon they found several important facts that existed in Goa's mining industry. Some mining companies continued mining even if their leases were expired, some were mining outside the permissive mining area., some failed to maintain a required distance between overburden and irrigation canals. All aspects above resulted in the fact that the production of iron ore exceeded the allowable output by more than 15%. Based on these negative impacts caused by mining industry, the state government shut down all 90 iron ore mines in Goa. Later, the Supreme Court also gave a temporary ban on mining operations in Goa.

Result and conclusion
The ban on mining industry directly resulted in a huge lost on government revenue, which is up to Rs. 50,000 crores (8 billion dollars). Furthermore, the mining ban also hit India's GDP in 2013 and 2014. It also cause social problems that people who lost their jobs were unwilling to take their former occupations, like fishing and farming.

This study shows that when the core strategy conflicts with corporate social responsibility, the social benefits created by companies will not guarantee companies' normal operations. In Goa's case, even though some mining companies and organizations, like MFG, took corporate social actions, most of the mining companies are more profit-oriented. Due partially to the lack of government documents and supervision, mine operators became more opportunistic, in other words, companies tended to take the risk of doing illegal things and gain more profit. Moreover, the social actions may not sufficient. Despite the fact that the water quality was somewhat improved, the concentration of iron ore in water was still unacceptable in some period. I believe you have a lot of great resources supporting your topic. You have it all organized and spread out. I believe that you should either add more information in environmental and social issues or take it out completely because it is making it little confusing having a topic that has nothing to do with what everything else is going by.Ikrom2014 (talk) 18:39, 15 March 2018 (UTC)