A sustainability assessment modeling-based external account of the impacts of mining activities in Brazil

Abstract

Purpose

This study aims to propose and apply a sustainability assessment model (SAM) for the mineral extraction industry developed on the basis of elements of dialogic accounting.

Design/methodology/approach

Distinct from other similar exercises, ours is also one in external accounting that focuses on a set of mining companies operating in a specific geographical location. It was undertaken based on different perspectives from various stakeholders, including mining workers and city dwellers, retrospectively, using publicly available information, entirely independently of the set of companies regarding which impacts the authors try to offer an account and without their approval. Twenty indicators were identified from the perspective of value for society.

Findings

The results for all environmental externalities appeared to be negative, as companies’ attitudes continue to be reactive and on the threshold of legal requirements. This assessment of the selected social indicators emphasizes that accelerated expansion of mining activities poses a threat to the mining area in the long term, as it reduces the useful lives of mineral deposits and expands social and environmental externalities.

Practical implications

The authors propose to expand the horizon of accounting through a framework that combines elements of the SAM technology, dialogic accounting and external accounting. This investigation contributes to the development of social and environmental accounting practices through the discussion, proposal and use of an SAM, built with the cooperation of several social actors and from the perspective of the other rather than the entity.

Social implications

The authors tried to show how an SAM approach can be used in combination with dialogic accounting processes, increasing the accountability and awareness of the different groups of stakeholders, focusing on marginalized stakeholders, to offer an external account of the impacts of a set of companies from the mining sector operating in a specific geographical area.

Originality/value

This study’s findings suggest there are opportunities for accountants to support social and environmental accounting, thereby contributing to community awareness and empowering transformative action.