Business decisions influence employees, customers, suppliers and competitors, while business operations affect communities, government and the environment where they operate. This is more so for companies in the extractive industries.

While companies have contributed towards improved social development through providing jobs, paying taxes, building an industrial base, enhancing efficiency, earning foreign exchange and transferring technology, they have also been linked publicly to deepening disparities in wealth, poor labour conditions, pollution incidents, health and safety failings, forced displacement and other human and civil rights abuses, leading to calls from all over the world for companies to become more accountable.

In actuality, companies do not have any choice but to deliver tangible and sustainable benefits to their access, host and impacted communities. Extractive companies especially face rising expectations to do more than simply mitigate negative impacts, they are expected to be sources of economic opportunity and to be reliable and trustworthy partners and neighbours.

As extractive companies have severe negative impacts on their host communities, they are expected to deliver lasting social and economic benefits to the areas where they have their footprints.