Socioeconomic development
Mining and mineral operations can provide a strong base for the economic growth of a local area, a region, or a nation. Rio Tinto focuses on the ways in which it can bring sustainable socio-economic benefits to the areas in which it operates.
Our direct economic contributions are measured by the sum of payments to suppliers and the value that they add. However, our true contribution is far greater than this figure when the secondary or "multiplier" effects of the contributions are included. This is because local and regional economies enjoy additional benefits when workers spend their wages, when governments spend revenues from taxes, and when local communities make use of infrastructure that we create for our operations.
Safe, efficient and innovative suppliers are strategically important to the success of Rio Tinto. Our Procurement function plays a key role in managing this 50,000-strong global supply base.
Our suppliers are required to demonstrate commitment to responsible and productive community relationships. We work with them to create business relationships that have positive and enduring effects in the developing economies where we operate.
We also work with non government organisations and other partners to build country capacity through programmes such as small and medium enterprise development, access to capital and tailoring procurement processes to improve supplier access.
Additionally, we actively support the global Extractive Industry Transparency Initiative (EITI) whilst working with government to develop audit protocols and achieve full compliance.
In 2006, we published our commercial business practices policy, The way we buy. This policy reflects how our corporate philosophy meets the operating demands of our business units, while ensuring that we conduct our procurement in a manner that is holistic, transparent and sustainable.
To pre-qualify as a supplier, business partners generally must be able to demonstrate strong organisational commitments to:
- corporate governance
- improved health and safety
- human rights and labour practices
- socio-economic welfare of local/indigenous communities
- natural resource conservation and management
- carbon and greenhouse gas emission reduction
- energy and fuel efficiency
- waste minimisation
By collaborating with our partners to obtain sustainable development objectives for each of our business units, we seek to build our partner communities' confidence in our reputation, and extend our licence to operate.