Petropavlovsk Plc. Csr

MGT 2530

Assignment One

Tutor: Ellis Osabutey

Student: Viktorija Butanova

Student Number: M00221421

Introduction.

In this essay I will be evaluating the ways in which Petropavlovsk plc fulfils its ethical and social obligations, based upon corporate information and independent sources. In the beginning I will speak about company’s background and history. In the main body of my essay I will make a brief stakeholder analysis, talking about relationship with local communities, ways the company treat their employees, etc. Thus, I will look at health and safety policy, ethical and CSR obligations. Also, I will compare Petropavlovsk plc with it’s competitor – African focused gold mining company- Randgold Resources.

Background.

Petropavlovsk plc. is a gold and iron-ore mining company which is based in London and operates in the Russian Far East, close to the board with China. In 1994 company was formed by Pete Hambro. Since then Petropavlovsk plc is one of the fastest growing gold producers. Mostly Petropavlovsk plc. operates in Amur Region (Pokrovskiy and Pioneer producing mines) and EAO (Evreyskaya Avtonomnaya Oblast or Jewish Autonomous Region). Both regions has a good transport system, based on two of Russia's key rail roads, and good access to low cost electricity from large hydroelectric plants - providing a sound base for gold production. ( Company Information for Petropavlovsk PLC, 2010)

Stakeholder analysis.

According to Henry (2008), customers, workers, managers, suppliers, shareholders etc are known as stakeholders. Their interests might affect an organization, because stakeholders have power and thus, have high level of influence. Any organization must satisfy its stakeholders needs for achieving its goals, followed by its profit maximization.

Peter Hambro, the Chairman of the Copmany, has appointed an Executive Committee and has delegated to this committee the authority to make decisions relating to the day-to-day management of the...