3.1.3 Managing Conflicts of Interest in Mining

Conflicts of interest can significantly affect not only principals and agents but also broader stakeholders, making it essential to manage them effectively. Wayne Norman and Chris MacDonald (2010) distinguish between micro-, mid-, and macro-level conflicts of interest and thereby provide a framework for organizing strategies to address such situations. On the microlevel that targets the individual, measures are often limited to “exhortations for conflicted professionals to resist temptation” (Norman & MacDonald, p. 464). Ideally, professionals proactively avoid conflicts of interest, maintain objectivity when they arise, fully disclose relevant information, and adhere to established policies. At the mid-level, attention turns to the organization itself, with the goal of fostering an environment that enables individuals to behave in an ethical way. This involves implementing appropriate policies, encouraging the inclusion of independent third parties, and considering structural aspects such as compartmentalization – having one division dedicated to employee safety and another focused on cost reduction can mitigate the likelihood of conflicting interests, for example. The macro-level examines conflicts of interest in business within the broader context of social, legal, and political frameworks. Emphasizing the role of trust in institutions and organizations, one might argue that, following numerous violations, a professional code should be overseen not by the profession itself but by the state.