Governance is the foundation of sustainability, as it determines how the company defines its purpose, sets its strategy, and implements its actions. Governance also reflects the company’s values and principles, which guide its decisions and behaviors. We were fortunate to have met Giuliana Fonseca, a young, international mining professional,  who recently completed her MBA at the Ivey School of Business at Western University. As Giuliana is evaluating her next career opportunities, she agreed to participate in an interview with us to explore an interesting sustainability topic related to her past work experience in international mining and the transportation of high-value commodities. The discussion builds awareness around the topics of anticorruption and antibribery illustrating how well-designed operating procedures and technologies can enhance trust across a global supply chain. Giuliana witnessed first hand how successfully executing the strategy  leads to real economic benefits and long-term viability for a company. We have included her LinkedIn profile here.

The interview has been edited, paraphrasing for flow without compromising content.

Blue Monarch: Can you describe your educational background and work experience  in the context of sustainability?

Giuliana: I hold a Bachelor’s degree in Business Management from the Pontifical Catholic University of Peru and I just finished my MBA at Ivey Business School, Western University. My professional experience has been heavily oriented towards governance, risk management, and compliance, particularly in industries where sustainability is a critical concern. For example, at one of the last companies I worked for, I developed and implemented AML/CFT processes and standardized mineral traceability processes, directly addressing environmental and ethical sustainability in the mining sector. My roles have consistently involved creating systems and strategies that promote sustainable practices and compliance with regulatory standards.

Blue Monarch: What have you studied and why?

I chose to study Business Management to gain a comprehensive understanding of organizational dynamics and strategic decision-making. One key elective I selected was Development and Social Responsibility, taught by Dr. Gerardo Castillo. He demonstrated that sustainability is not just about avoiding harm to the environment, but about actively taking care of it and considering all stakeholders. This foundation has been crucial in my roles that require balancing business objectives with ethical considerations. My recent MBA studies at Ivey Business School are focused on enhancing my leadership and strategic management skills, with a particular interest in sustainability and its integration into business practices. I believe that combining business acumen with sustainability principles is essential for driving long-term organizational success and societal impact.

Blue Monarch: Can you describe your international work experience?

I have gained international work experience through various roles that required collaboration with global teams and adherence to international standards. For instance, in my previous job, I worked on the registration process of a processing plant with Swiss refineries, ensuring compliance with global standards. Additionally, my time at EY in Lima, Peru allowed me to become familiar with good corporate governance practices. These experiences have equipped me with a global perspective and the ability to navigate diverse regulatory environments.

Blue Monarch: How do corruption and bribery happen in the mining industry?

Giuliana: Corruption and bribery in the mining industry can occur at various stages, from obtaining permits and licenses to operational activities and export processes. It often involves illicit payments to government officials or manipulation of regulatory requirements to gain favorable treatment or expedite processes. Such practices undermine legal and ethical standards, leading to environmental degradation, loss of revenue, and social injustices. Corruption can also happen inside different levels in a company. There is a lot of risk and so preventative measures can be taken, including training, security procedures aligned with specific levels of employees in the organization, and background checks that might identify high risk individuals with personal circumstances that might make them susceptible to corruption and bribery. When evaluating potential suppliers, sustainable companies follow due diligence processes, evaluate available blacklists, and conduct web searches. I have observed instances that would warrant not continuing with a particular supplier relationship.

Blue Monarch: Can you provide me with an overview of what anti-corruption and anti-bribery initiatives are and how they add value to the global mining industry?

Giuliana: Anti-corruption and anti-bribery initiatives include stringent regulatory frameworks, transparency requirements, third-party audits, and the implementation of compliance programs. These initiatives add value to the global mining industry by promoting fair competition, attracting ethical investments, and ensuring sustainable resource management. By reducing corruption, these initiatives enhance the industry’s reputation, increase investor confidence, and contribute to social and economic development.

Blue Monarch: Why might these initiatives be considered sustainable business practices and who do they benefit?

Giuliana: These initiatives are considered sustainable business practices because they promote long-term economic stability, social equity, and environmental protection. They benefit a wide range of stakeholders, including companies, investors, governments, local communities, and the environment. By fostering a culture of integrity and accountability, these practices ensure that the benefits of mining activities are distributed fairly and sustainably. A sustainable company might build up its focus on community relations by developing an understanding of what the community needs and what it expects. It is very interesting how companies from different parts of the world handle this role. Mines might enhance social equity by working with local communities to help build infrastructure, provide jobs, and improve local and regional conditions.

Blue Monarch: How have technologies and standard operating procedures been applied to these initiatives?

Giuliana: Technologies such as blockchain for traceability, automated compliance monitoring systems, and data analytics for risk assessment have been applied to anti-corruption and anti-bribery initiatives. Standard operating procedures (SOPs) included regular audits, employee training programs, and clear reporting mechanisms. These technologies and SOPs enhance transparency, streamline processes, and reduce the risk of unethical practices. We have used advanced data analytics to flag changes in patterns for stakeholder behaviors.

Blue Monarch: Did you see an impact?

Giuliana: Yes, I observed a significant impact from these initiatives. For example, at one company, the implementation of AML/CFT processes and mineral traceability standards not only reduced associated risks by 35% but also, once the traceability process is fully accredited, it would allow the company to charge a premium price per ounce of semi-processed gold. These outcomes demonstrate that rigorous compliance and ethical practices can lead to both improved operational efficiency and financial performance.

Blue Monarch: What were your top learnings from your work on these initiatives?

Giuliana: My top learnings include the importance of integrating compliance and sustainability into core business strategies, the effectiveness of technology in enhancing transparency and accountability, and the value of fostering a culture of integrity within organizations. Additionally, I learned that stakeholder engagement and collaboration are crucial for the successful implementation of anti-corruption and anti-bribery initiatives.

Blue Monarch: What do you think needs to happen next? Where should companies explore further investment in these kinds of initiatives?

Giuliana: Next, companies should focus on enhancing their technological capabilities to improve transparency and compliance monitoring. Investment in advanced data analytics, blockchain for supply chain traceability, and continuous employee training programs are essential. Companies should also strengthen their partnerships with governments, NGOs, and other stakeholders to create a unified approach to combating corruption and promoting sustainability in the mining industry.’

Our engagement with Giuliana was rich and very rewarding. This interview introduces some of the complexities of designing systems and procedures in natural resource industries with an eye to ethics, technologies and data, standards, and value in the end-to-end global supply chain. Next week, we will share part two of the article, which unpacks some of the analysis and governance related to the interview.

About

Jeff Peterson is the Founder and CEO of Blue Monarch Management and is a professional Management Consultant specializing in Strategy, Governance, and Organizational Development for companies designing and driving transformational investments.