**5.1 Which factors that are taken for granted by the mining industry should be eliminated?**

Causes of social conflicts should be eliminated. A noteworthy influence on how firms answer to disputes arisen when they arise within the project cycle. When early in the cycle, conflict more presumably leads firms to withdraw from investments (which may traduce into decreased social and environmental effect or the transfer of effects to a different area) and evaluate an essential restructuring of the project. The most constant costs distinguished were those emerging from lost productivity because of delays [6]. In Quellaveco's case, the reasons for social clashes were water assets and the utilization of freshwater from the streams without the community consent. The social conflict generated huge monetary losses to the firm. Interviewees calculated that around US\$10,000 is lost for each day of postponement in lost wages and the expenses of keeping up an investigation camp. Additionally, the manager of the company suggested that the company should provide more CSR programs to avoid these operational costs.

Reputation concerns should be eliminated. Firms are most certainly to adopt the design or increase the social responsibility activities, the latest providing impact compensation instead of impact reduction when conflict arises later in the project cycle [6]. The value of intangible resources such as trust can be increased by the

#### *Corporate Social Responsibility*

creation of a genuine solid reputation through certain and pre-planned activities and dealing with the corporate image. In BHP's case, one of the community members of the NGO's stated: "The community realized that the firm had numerous similar issues in Canada and Australia, so the organization didn't want to keep being influenced by its awful reputation".

### **5.2 Which factors should be reduced beneath the industry's standard?**

Environmental impact. In Quellaveco's case, the community realized that the firm had the financial ability to reestablish the trajectory of the river. As a leader stated: "Economists, local engineers, and practitioners had a profound discussion with the firm about their interests. Thus, in the closure plan, the project evaluated leaving the open pit as a lagoon so the community could use it as a water reservoir. However, neighborhood engineers demanded the organization reinstatement of the trajectory of the Asana River as it was prior to the operations. After numerous researches, the firm embraced to execute the elective conclusion plan noted as Restoration of the Asana River Bed. The following would elude any social conflict and lose cash as an outcome of the conflict.
