Academic journal article Informatica Economica

The Prediction of Successful Probability of CSR and Sustainable Development Strategy Implementation within "Rosia Montana Project" Using Fuzzy Logic

Academic journal article Informatica Economica

The Prediction of Successful Probability of CSR and Sustainable Development Strategy Implementation within "Rosia Montana Project" Using Fuzzy Logic

Article excerpt

This article aims to develop a methodology to forecast the probability of success regarding to the implementation of the concept of corporate social responsibility (CSR) and of the strategy of sustainable development in a mining company of exploitation of mineral resources. It is well known that in the modern period we are witnessing ever more to increased demands in terms of corporate responsibility towards the environment, in the area which can include economic, social, cultural and ecological environment. As a consequence of this fact, it increases the uncertainty of decisions to be adopted by companies, uncertainty that may arise from several aspects such as incompleteness, inconsistencies or inaccuracies in information or simply due to the subjective nature of human reasoning which often is expressed in words, through linguistic values. Thus, for modeling this vagueness of decision or prediction process there is a particularly effective tool, represented by the fuzzy logic through triangular fuzzy numbers. By multiplying the importance weight of factors that influencing the adoption of CSR and sustainable development policy with values resulting from evaluation of the possibility of successful implementation of this policy with respect to each factor, there it results a probability that suggests us if the action of implementation of CSR and of sustainable development strategy will have the overall expected effect and in the case the result is not properly there it will require remedial measures. The proposed methodology is applied in a case study concerning the Romanian mining company Rosia Montana Gold Corporation (RMGC) from Rosia Montana, Romania and also concerning the community in which it operates.

Keywords: CSR, Sustainable Development, Fuzzy Logic, Prediction

(ProQuest: ... denotes formulae omitted.)

1 Introduction

For any company, the sustainable development must be more than a series of corporate commitments and promises. The development of tools for measuring progress - to ensure consistency between promise and performance - is the real test of a responsible behavior in social terms. CSR is defined as a "voluntary corporate commitment exceeding the explicit and implicit obligations imposed on a company by society expectations in terms of conventional corporate behavior" [1], There are intense discussions on the extent to which corporate social responsibility should be a central concept: if it is really essential for the way the company operates or if it's just a concession made because of external pressures from stakeholders and critics. With regard to the mining company to which we refer in this article, as an aside, it is well known that in most of Eastern Europe and in Romania including there were conducted mining activities over time without taking into account the long term benefits for community and for country in general, that's why one of the Ro§ia Montanä Gold Corporation's (RMGC) strategic objectives is that its commitment for sustainable development to be essential for achieving "social license" and success.

For corporations, generally, the adoption of CSR strategies can improve their relationships with different stakeholders. Therefore, is required the public notice regarding to CSR activities and use of an effective management of relations with all actors involved in company's life to meet their expectations and achieving the strategic objectives of CSR initiatives [2], It is well known that proper implementation of some CSR practices in particular and of sustainable development generally is no small challenge for any company in any industry. That's why, the activity of forecasting the success or failure resulting from the implementation of CSR and of sustainable development policy, should be a key objective of any business strategy, to know exactly which will be the future results and if eventually there is a particular need to adjust the tactical and operational processes. …

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