A Study On Precaution Against Social Responsibility Risks Of Foreign Of Chinese Mining Enterprises

With the continuous development of the Chinese economy,more and more mining companies have set their sights overseas in order to reduce costs and obtain mineral resources.Mineral resources are an important pillar of domestic economic development as well as the cornerstone of China’s modernization and industrialization.Although there are abundant mineral resource reserves in our country,large population makes it a low level of mineral resources per capita which is far behind the global level.On this condition,Chinese economy will depend on other countries a lot.Besides,the acceleration of industrialization and the short supply of domestic market both impel Chinese mining enterprises to obtain mineral resources aboard through different foreign direct investment.With the ‘Go globally’ strategy proceeding,the overseas investment of Chinese mining companies has experienced rapid development.However,mining companies of facing complexed social responsibility risks have undergone many failures such as heavy losses.This thesis mainly uses the literature research method and case analysis method to analyze prevention of mining enterprises’ social responsibility risks.First of all,this article introduces the related concepts and the theoretical basis used.Secondly,this article describes the overall situation of Chinese mining companies encountering social responsibility risks overseas,then further analyzes the causes and impacts of overseas social responsibility of mining companies.Thirdly,based on the inner controlling theory this article selects two mining companies,Myanmar Wanbao Mining Copper Limited and SHOUGANG HIERRO PERú S.A.A,as examples,to analyze the social responsibility they encountered and solutions they made from five aspects,which are controlling environment,risk assessment,control activities,information and communication,and monitoring activities.Finally,in order to promote the process of FDI of mining enterprises,it provides some suggestions for Chinese mining companies to fulfill their social responsibilities when invest overseas.The conclusion of this thesis are as follows.Firstly,the social responsibility risks encountered by Chinese mining companies when invest overseas are related to five aspects,which are the risks of shareholders,employees,host governments,communities and the environment.Secondly,the main reasons for the failure of Chinese mining companies to take measures to prevent social responsibility risks are caused by low degree of control of the environment,deficiencies in management,inadequate risk assessment,poorcommunication process,inefficient supervision.Finally,this thesis proposes the suggestion to optimize the internal control of preventing social responsibility risks overseas.The main innovations of this article are as follows: On the one hand,the topic selection is relatively novel;On the other hand,based on the theory of internal control,this thesis analyzes the social responsibility risks mining enterprises undergo overseas,which makes a new study perspective.