Extractive industry has specific nature. They involve some environmental damages which can be of long term. Metal mining for example: this industry involves some highly poisonous and harmful substances. Oil and gas also involve high amount of environmental risk such as oil spills and gas flaring.
Besides ecological risks, social features should be taken into consideration such as the relationship with MNEs, local community and the government. In some host countries, MNEs connection has been professed for contributing to potential negativity that could have an adverse impact on the human rights situation. As a response, MNEs disagree and demonstrate themselves in the formula of CSR policy to be able to make a balance of the community demands, environmental protection and profit known as the triple bottom line. A survey made on the mining enterprises concluded that 48 % of the report focuses on the health social and environment, 30% for sustainability, 13% for environment and social, and 9% for social aspects.
To be able to cope with the encounter occurring in which MNEs are managing, the following strategizes should be apply for a better approach in order to handle the countered conflicts in the CSR contexts. They are:
a) Compliances: at the least level, the MNE should comply with national rules even if the host governments are not applying or controlling these effectively. At this stage, the MNEs should also abide with international law, protocol and standards.
b) Do not harm: above the basic compliances, MNEs should be well aware that they are capable of causing serious damage to the environment, socioeconomic and political influence of their business. So, MNEs construct and execute code to minimise any harm that may cause from their operations.
c) Peace building: Beyond compliances and...