The project aimed to establish a rating sheet or a scorecard for the mining companies that are using the SHES (Safety and Health, Environmental Protection and Enhancement, and Social Development and Management) performance audit as a tool in benchmarking for continuous improvement in the intensification of responsible mining toward economic development. The SHES scorecard is a concrete and tangible management tool for the government, the public, and the private sectors to gauge the overall performance of a mining company. It also rates or scores mining companies that are top and poor performers in SHES management and are recorded as responsible or irresponsible mining operators. It will then classify mining operations in accordance with their level of SHES management compliance and top performers will eventually set a high standard that will serve as a model which can be emulated by the rest of the pack in the field.
Background and Problem
Mining operations all over the world, just like other industries, are beset with various disasters such as environmental incidents, safety, and negative social impacts on communities. In the Philippines, the MGB has the mandate to monitor and audit the mining companies as to their compliance and performance in the implementation of the approved Safety and Health, Environmental Protection and Enhancement, and Social Development and Management Program. These three pillars are called the SHES management. Currently, the MGB conducts monitoring and auditing of various mining companies as mandated by law. However, the reports generated from these monitoring and auditing activities are descriptive in nature with no distinction between the good and the bad SHES performers and do not consider developmental needs. Hence, the SHES assessment system is not reflective of the company’s actual needs to improve performance and to change the public perception of their SHES performance.
Solution and Impact
With the identified loop holes and discrepancies of the SHES management system, a scorecard or rating system can be used as an instrument in classifying and rating the mining companies in terms of SHES performance. The rating as well as the score will classify and identify which among the mining companies are the top performers on SHES compliance.
It is envisioned that both the good and bad performers will be published through the MGB website. Recognition and incentives will be given to companies with exemplary SHES performance including its initiatives and innovations implemented on the ground. Alternatively, a notice of violation or suspension order is bestowed to the poor performing mining companies to give them time and a chance to shape up in their SHES performance. The SHES scorecard can be one of the solutions that may trigger a change in the industry toward a responsible mining to showcase the classification and rating of mining companies through SHES performance. Once institutionalized and implemented, it is expected that mining companies will be motivated to upgrade their SHES performance, increase their SHES compliance, and in the long run, geared toward a responsible mining industry in the country.
Bridging leadership, collaboration, and consultation with various government agencies, the stakeholders and professional experts in the fields of safety and health, environmental management, and social development were tapped for comments and insights in the formulation of the SHES scorecard. The SHES scorecard was pilot tested in three different mining operations namely, metallic, nonmetallic, and mineral processing to evaluate the adaptability, practicality, and usability of the SHES scorecard on the ground.
A Procedural Guideline was also developed for the SHES scorecard to guide the SHES team in conducting, rating, and scoring a mining company.
Note: This initiative is based on the Public Management Development Program (PMDP) Re-Entry Plan of Ms. Rhoda M. Noble of the PMDP Middle Manager Class Batch 5 (Dagitab).