Corporate social responsibility (CSR) and public engagement for a Chinese state-backed mining project in Myanmar – Challenges and prospects

Abstract

Engagement with the public and stakeholders is an indispensable way to reduce negative effects associated with extractive projects, and is a key dimension in corporate social responsibility (CSR). In response to social protests against extractive projects in Myanmar resulting in project suspensions, Chinese state-backed companies have paid increased attention to CSR and public engagement. This paper will examine one of such cases – the Letpadaung copper mining project invested by Myanmar Wanbao, a subsidiary of a Chinese state-owned enterprise (SOE). Based on semi-structured interviews with villagers at Letpadaung, it will evaluate the extent and nature of public participation, as well as the challenges of implementing CSR in Myanmar’s political context.This paper finds that Myanmar Wanbao actively and visibly tries to salvage its corporate image by establishing a number of public engagement channels and investing in community development projects. While yielding initial results with some villagers expressing support for the project, there is much room for improvement. The company needs to strengthen its engagement with common villagers, not only local elites, and ensure alignment between CSR efforts and villagers’ immediate needs. Influenced by Chinese elite-centred governance principle, ideology of mass participation, and prevailing risk management mind-set, public participation is found to be tokenistic, which does not concede power to the public to contribute to the decision-making of the project. It also explores how CSR and public engagement initiatives of foreign companies are restricted by the local power and governance structures in the host country.