Background
The licensing phase of a mining project is particularly susceptible to corruption. In fact, a quarter of all corruption cases in the oil, gas and mining sectors globally arise at the very start of those extractive projects. [1]
At a time when social licence to operate is regarded as the top business risk facing the mining industry,[2] a company’s ability to demonstrate business integrity is increasingly essential for the success of its projects. Aside from legal sanctions, corrupt activity and even allegations of corruption can severely damage a company’s reputation with customers, shareholders, investors and future business partners.
Having effective systems in place to detect, prevent and manage corruption risks is a business imperative both to ensure compliance with applicable laws and because it is good for business. Corruption affects project viability, company reputation and future business relationships.
