No longer is it enough that businesses “maximize shareholder value”. Whether private or public, businesses are now expected to serve a social purpose and demonstrate that they are making a positive contribution to society. While the public may mistakenly associate mining companies with antiquated skill sets and technologies, those of us in the industry know that many global mining corporations have been on the forefront of adapting, responding, and demonstrating their commitment to communities and countries where they operate.
BlackRock, a global investment firm, manages $1.7 trillion in active funds and CEO Larry Fink is a major proponent that purpose be the animating factor of a company’s business model and strategy, and not simply a marketing campaign. He believes that “profits and purpose are inextricably linked” and ultimately the key to long term sustainability. As he states, “environmental, social, and governance issues will be increasingly material to corporate valuation.”
Mr. Fink notes that there are a number of factors driving this direction including:
· A failure of government to provide solutions for the public’s growing fear and frustration of the future primarily related to the effects of technology on jobs, stagnant wages, and worry about funding retirement.
· A majority of Millennials believing that the primary purpose of business should be “improving society” rather than “generating profit.”
· The pressures of social media that fuel sensitive social issues.
Look for these concerns to only increase, and perhaps instead of assigning mining to the sidelines, it may be that some of the trendier companies could learn something from those of us who continue working to improve an industry that has elevated and augmented human endeavors for eons.
10 COMPANIES DOMINATING THE GLOBAL CONSTRUCTION MARKET
10. Technip FMC, London, United Kingdom
9. Strabag, Vienna, Austria
8. Skanska AB, Stockholm, Sweden
7. Hocktief Aktiengesellschaft, Essen, Germany
6. Bechtel, Reston, VA, USA
5. Bouygues, Paris, France
4. Grupo ACS, Madrid, Spain
3. Vinci, Rueil-Malmaison, France
2. Power Construction, Beijing, China
1. China Communications Construction, Beijing, China
Source: Roof Stores