Large mining projects can generate highly inequitable outcomes, with affected communities bearing the burden of social and environmental costs while economic benefits accrue largely to domestic and foreign metropolitan centres. This raises important ethical and social justice issues, as does the finite nature of mineral resources, which can mean that current generations enjoy the benefits of mining while future generations bear the costs of environmental and social impacts that can continue long after mining ends. During recent decades two broad approaches, (...) voluntary industry initiatives and government regulation, have been employed in attempts to achieve a more equitable distribution of mining’s positive and negative effects. Both have serious drawbacks. Industry initiatives are ultimately voluntary and may be abandoned in tough economic times; they can be highly variable across companies and projects; and they suffer from serious compliance issues. Public regulation can be inflexible, is subject to industry capture, and in many major mineral producing nations a ‘retreat from regulation’ is reducing its relevance. This article considers whether, and under what conditions, a third and emergent instrument, community development agreements, can help overcome the shortcomings associated with industry initiatives and public regulation. It argues that CDAs have considerable potential in this regard, but that communities can encounter significant practical challenges in their negotiation and implementation. In addition, disparities in negotiation power between communities and project developers can result in inequitable agreements, indicating a continued need for government involvement to create a more level ‘negotiation terrain’. (shrink)

The provision of responsible labor standards along the entire value chain poses considerable challenges for corporations. In particular, management shortcomings and institutional deficits—which are partly related to cultural issues—frequently impede the realization of responsible business practices in emerging and developing countries. It is widely established in theory that industry self-regulation constitutes a particularly promising approach for overcoming these challenges. Nonetheless, it is still an open question as to whether industry initiatives effectively promote responsible standards in practice. This contribution aims to (...) enrich the current discussion about the power of industry self-regulation to ensure responsible labor standards in factories in emerging and developing countries. For this purpose, we analyze the ICTI CARE Process, the self-regulation initiative of the international toy industry, that aims to promote responsible business practices in Chinese toy factories. The assessment of the ICP shows that corporations’ buying behavior is decisive in order for industry self-regulation to become an appropriate means of improving labor standards. Based on the insights from the study and from theoretical reasoning, we develop a framework for effective industry self-regulation that integrates the perspective of factories. (shrink)