The impact of corporate governance on occupational risks in South Africa's mining industry

Abstract

Despite implementing various corporate governance (CG) frameworks, guidelines, and laws, mine workers continue to suffer from exposure to occupational health and safety risks. This study examines corporate governance's influence on occupational health and safety risk management performance in the South African mining sector from 2002 to 2018, with 510 firm-year observations. The study considered all the JSE-listed firms as the population. The study further purposively selected thirty JSE-listed mining firms and used content analysis to collect quantitative secondary data from 2002 to 2018 from online published integrated annual reports. The study used CG (board size, board independence, managerial ownership, audit and risk committee size, and board gender diversity) as independent variables and OHS risks (total injuries frequency rate [TIFR] and new cases of occupational diseases [NCOD]) as dependent variables. A multivariate regression model based on feasible generalised squares (FGLS) and ordinary least squares (OLS) analysis was employed to determine the influence of corporate governance variables on occupational health and safety risks. The results suggest a negative impact of CG variables on TIFR and a positive influence on NCOD. The general effect of CG on OHS risks turned out to be negative. Moreover, the results allude to aligning corporate governance with appropriate frameworks, such as the King IV report. The results may be vital as there is an increasing trend toward attaining the “zero harm” milestone by December 2024 in the mining sector. Moreover, the results may be useful to mining firms and policymakers in tailoring OHS risk management frameworks compatible with existing internal corporate governance mechanisms. Lastly, the study recommends further studies to explore the relationship between CG-OHS risks in the South African mining sector using different research approaches.

Ondanks die implementering van verskeie korporatiewebestuur (KB)-raamwerke, -riglyne en -wette, gaan mynwerkers steeds gebuk onder blootstelling aan beroepsgesondheid-en-veiligheidsrisiko’s. Hierdie studie ondersoek die invloed van korporatiewe bestuur op die prestasie van beroepsgesondheid-en-veiligheidsrisikobestuur in die Suid-Afrikaanse mynwese-sektor vanaf 2002 tot 2018, met 150 firmajaarwaarnemings. Die studie het al die JSE-genoteerde firmas as die populasie gebruik. Die studie het verder doelgerig dertig JSE-genoteerde mynboufirmas geselekteer en inhoudsontleding gebruik om kwalitatiewe sekondêre data vanaf 2022 tot 2018 uit aanlyn geintegreerde jaarverslae te versamel. Die studie het KB (direksiegrootte, direksie-onafhanklikheid, bestuursbesit, oudit- en risikokomiteegrootte, en direksiegeslagsdiversiteit) as onafhanklike veranderlikes gebruik, en BVG-risiko’s (totale beseringfrekwensiekoers [TIFR] en nuwe gevalle van beroepsiektes [NCOD]) as afhanklike veranderlikes. ’n Meerveranderlike regressiemodel gebaseer op uitvoerbareveralgemeendekwadrate (FGLS)- en gewonekleinstekwadrate (OLS)-ontleding is toegepas om die invloed van korporatiewebestuursveranderlikes op beroepsgesondheid-en-veiligheidsrisiko’s te bepaal. Die resultate dui op ’n negatiewe impak van KB-veranderlikes op TIFS en ’n positiewe impak op NCOD. Die algemene uitwerking van KB op BVG-risiko’s is as negatief identifiseer. Daarbenewens dui die resultate op die inlynstelling van korporatiewe bestuur met toepaslike raamwerke, soos die King IV-verslag. Die resultate kan van kardinale belang wees, aangesien daar ‘n toenemende tendens is om die “nulskade”-mylpaal teen Desember 2024 in die mynbousektor te bereik. Die resultate kan ook nuttig wees vir mynboufirmas en beleidsmakers om OHS-risikobestuursraamwerke te ontwerp wat met bestaande interne korporatiewebestuursmeganismes verenigbaar is. Laastens beveel die studie aan dat verdere studies gedoen word om die verband tussen KB-BVG-risiko’s in die Suid-Afrikaanse mynbousektor met behulp van ander navorsingsbenaderings te verken.

Naphezu kokusebenzisa izinhlaka, imihlahlandlela, kanye nemithetho ehlukahlukene yokuphathwa kwebhizinisi (CG), abasebenzi basezimayini basaqhubeka nokubhekana nobunzima bezempilo nokuphepha emsebenzini. Lolu cwaningo luhlola umthelela wokuphathwa kwebhizinisi ekusebenzeni kokulawulwa kwezingozi zezempilo kanye nokuphepha emkhakheni wezimayini waseNingizimu Afrika kusukela ngo-2002 kuya ku-2018, ngokubhekwa kweminyaka yenkampani engama-510. Ucwaningo lubheke zonke izinkampani ezisohlwini lwe-JSE njengenani labantu. Ucwaningo luphinde lwakhetha ngamabomu izinkampani zezimayini ezisohlwini lwe-JSE ezingamashumi amathathu futhi lwasebenzisa ukuhlaziywa kokuqukethwe ukuze kuqoqwe imininingwane yesibili esebenzisa izibalo kusukela ngo-2002 kuya ku-2018 emibikweni yonyaka ehlanganisiwe eshicilelwe ku-inthanethi. Ucwaningo lusebenzise i-CG (usayizi webhodi, ukuzimela kwebhodi, ubunikazi bokuphatha, usayizi wekomiti lokucwaningwa kwamabhuku kanye nezingozi, kanye nokuhlukahluka kobulili bebhodi) njengokuhluka okuzimele kanye nobungozi be-OHS (inani eliphelele lesilinganiso sokulimala kokulimala [TIFR] kanye nezimo ezintsha zezifo zasemsebenzini [NCOD]) njengokuguquguqukayo okuncikile Kusetshenziswe isifanekiso sendlela yezibalo esihlukahlukene esisekelwe endleleni yokulinganisela ejwayelekile (i-FGLS) kanye nokuhlaziya kwendlela yokulinganisela evamile (OLS) kwasetshenziswa ukuze kutholwe umthelela wokuhlukahluka kokubusa kwebhizinisi ezingozini zempilo nokuphepha emsebenzini. Imiphumela iphakamisa umthelela omubi wokuguquguquka kwe-CG ku-TIFR kanye nomthelela omuhle kuma-NCOD. Umthelela ojwayelekile we-CG ezingozini ze-OHS uphenduke waba mubi. Ngaphezu kwalokho, imiphumela iqondise ekuqondiseni ukubusa kwebhizinisi nezinhlaka ezifanele, njengombiko weKing IV. Imiphumela ingase ibaluleke njengoba kunokuthambekela okwandayo ekufinyeleleni ingqopha-mlando ‘yokungabi nangozi’ ngoZibandlela 2024 emkhakheni wezimayini. Ngaphezu kwalokho, imiphumela ingase ibe usizo ezinkampanini zezimayini nabenzi benqubomgomo ekuhleleni izinhlaka ze-OHS zokulawula ubungozi ezihambisana nezindlela ezikhona zokuphatha izinkampani zangaphakathi. Okokugcina, ucwaningo luphakamisa olunye ucwaningo lokuhlola ubudlelwano phakathi kwezingozi ze-CG-OHS emkhakheni wezimayini eNingizimu Afrika kusetshenziswa izindlela ezahlukene zocwaningo.