An exploration on corporate-community relationship in mining sector in China – Lessons from Yunnan Phosphate Chemical Group Co., Ltd

The corporate-community relations have always been an important influencing factor for the development of mining enterprises. In recent years, residents in the mining areas have been paying increased attention to their rights in the mining process, but the failure to properly handle corporate-community relations has resulted in conflict between mining enterprises and local communities. In severe situations, this may even trigger mass disturbances that cause disorders in their normal operations. Considering these potential circumstances, some Chinese mining enterprises started to emphasize corporate social responsibility (CSR), especially the construction of a sound corporate-community relationship, rather than simply making superficial efforts. As a model in such endeavors, the paper takes Kunyang Phosphate of Yunnan Phosphate Chemical Group as a case study; firstly, the development of relations between Kunyang Phosphate and the local community (Hanying Village) is divided into different periods, and each stage is analyzed from the aspect of corporate social responsibility performance of the mine. In addition, this paper makes a summary of “Hanying model”, and analyzes the mine's strategy of community engagement through its practice.