An internal audit assists the organization to achieve its objectives, through a systematic and disciplined approach that helps in evaluating and increasing effectiveness in control, risk management, and governance process. The major functions of an internal audit in an organization include evaluation and provision on reasonable ways of managing risks, as well as organization control. An internal audit team is expected to report the deficiencies and recommendation to the management. Barrick Gold Corporation is a gold producing company with its headquarters at Toronto Canada.
Get Full Essay Get access to this section to get all help you need with your essay and educational issues. What are the challenges faced by extractive mining corporations in their attempt to establish subsidiary operations in developing nations As major multinational extractive mining corporations continue to expand their developing country footprints, they are finding challenges in carrying out corporate social responsibility CSR to achieve a sustainable balance of benefits for business, its employees, stakeholders and the communities in which they attempt to establish subsidiary operations.
In Barrick gold corporation essay to increasing global demand, extractive firms are operating where the natural resources are located, mostly in developing countries where governance mechanisms are often weak and sometimes non-existent.
Developing countries envisage that the mining sector would be a key driver for economic growth and that the industry would eventually alleviate poverty and foster economic and social development. However, benefit gap exists between the anticipated and actual rewards to the local communities that are impacted by the mining corporations — mining has actually contributed little to the economic and social development in these developing countries.
Poverty and corruption have increased Pegg,particularly, large-scale mining combined with weak governance of the rule of law has been found to be closely connected with human right abuses and forced displacement Ballard and Banks, Governments from various countries, companies in the extractive sectors, as well Barrick gold corporation essay non-government organizations, all with an interest in human rights and corporate social responsibility, have developed a set of Voluntary Principles on Human Rights and Security to help guide companies in maintaining the safety and security of their operations Foley Hoag LLP, However, there are a number of practical policy challenges that prevent mining companies like Barrick Gold Corporation to practice in the developing countries in which the business operates.
For companies operating in weak states with little or no capacity to enforce their laws and little in the way of accountability or transparency, a blurring of lines between public and private responsibilities can result. Not only can this perpetuate weak governance, but it can also result in misdirected grievances.
American Barrick Resources Corporation Case Words Feb 3rd, 6 Pages Explain the value chain for gold mining firms (how can a mine create a competitive advantage relative to its rivals). Barrick Gold Corporation Essay Sample. 1. What are the challenges faced by extractive mining corporations in their attempt to establish subsidiary operations in developing nations. Barrick Gold Corporation is a gold producing company with its headquarters at Toronto Canada. The company operates 27 mines and several exploration projects across five continents around the world. The company requires an internal audit to determine its actual position considering the current mineral trends (Barrick, ).
Despite wanting to act in a responsible manner, mining companies are unaware of the standard they are expected to follow to ensure sustainable development. There are ongoing debates concerning the responsibility that home countries have for the overseas activities that their international companies carry out.
Although guidelines currently exist, there is a need to assess whether or not a mandatory regulatory framework should be implemented by home countries to further regulate CSR on mining companies operating abroad. Why and how has Barrick Gold Corporation adopted a global approach to address corporate social responsibility issues in Tanzania?
Quite simply put — governments have not always been the best stewards of natural resources. There are increasing clamour for better governance and social accountability for natural resource use. Major international companies such as Barrick Gold Corporation moved beyond narrow corporate social responsibility concerns to recognize their collective stake in promotion broad-based and sustained development in the extractive industry.
Corporate responsibility performance in the mining sector is positively linked to business success MacMahon et al. Sustainability concerns and evolving stakeholder expectations are having a greater impact on the business environment due to the emergence of international norms and standards that are playing an equally significant role in sector governance.
Barrick integrated CSR throughout their management structures so that they operate abroad in an economic, social and environmentally sustainable manner. Barrick understands that incorporating CSR practices into their operations can contribute to their success. As more are becoming known about the costs of poor stakeholder relations, which is reflected in terms of share price and the bottom line, more investors will want to see evidence of effective CSR.
In doing so, the company can benefit from: Barrick implemented a number of policies to signal their commitments in the long term sustainable development of the mining sector in Tanzania Barrick, They took the initiative to improve transparency by first open up constructive dialogues and be more responsive in providing information in an accurate, appropriate and timely manner.
To break away from resource curse in Tanzania and other developing nations the government can improve their ability to collect revenues from mineral extraction and spend them effectively on physical and social infrastructure.
The lack of policy and administrative absorptive capacity in the public sector leaves government departments and regulatory frameworks ill-prepared for the challenge of translating resource revenues into economic development.
Investment and tax laws have been revised such that Tanzania now offers a raft of tax incentives to attract foreign mining companies to establish in the country.
These incentives amount to hidden subsidies for the large mining companies — increasing incidence of tax avoidance by mining companies that are conditioned by measures such as secret mining contracts, corporate mergers and acquisitions, and various creative accounting mechanisms Environmental Law Alliance Worldwide, American Barrick Resources Corporation Case Essay American Barrick Resources Corporation Case a.
Explain the value chain for gold mining firms (how can a mine create a competitive advantage relative to its rivals). By providing your e-mail address, you are consenting to receive press releases and other information concerning Barrick Gold Corporation and its affiliates and partners.
Essay on Barrick Gold and the Mine at the Top of the World Words | 3 Pages. Barrick Gold and the Mine at the Top of the World Introduction The purpose of this case analysis is to identify the main communication problem that the world's largest gold mining company, Barrick Gold, is facing in the midst of their major Pascua-Lama developmental project.
Barrick Gold Corporation is the largest pure gold miningcompany in the world, with its headquarters in Toronto, Ontario, Canada; and four regional business units (RBU's) located in Australia, Africa, North America and South America.
For example, in , American Barrick produced and sold over 1,, ounces of gold at an average price of $ per ounce, while the market price was about $ per ounce.1 O T American Barrick’s gold-hedging program, and indeed all the corporate finance and treasury functions of the $4 billion market capitalization enterprise, were.
What are the challenges faced by extractive mining corporations in their attempt to establish subsidiary operations in developing nations As major.