10. Our contribution to society measured, shared and valued

Businesses not only contribute to society through the taxes they pay, but by creating employment, sustaining smaller suppliers, and supporting local economies. We need to measure this contribution and ensure it is widely understood.

Why is this important to us?

Across the world, companies are increasingly expected to make more than a financial contribution – our stakeholders and communities want us to play a wider social role locally, nationally, and internationally. For all these reasons, it’s vital that companies develop better measures of the real long-term value they create.

The commercial imperative

What kind of challenges do we face?

Our social licence to operate depends on the perceived value we deliver to our stakeholders: economic, social and environmental. Where this is deemed to be negative, not positive enough, or simply where we do not have the data, we can lose the trust of governments and communities. We have to be aware that this could cost our business – whether through changes in policy or taxation, or in disruptions to our everyday operations. Unless we have a well-founded reputation, we risk losing customers or potential recruits too.

What do we need to do?

We need to be able to measure the different types of value we create accurately, make this information open to scrutiny, and communicate it meaningfully. We need to consider not only salaries and dividends, tax contributions and payments to suppliers, but the skills training we provide, the investments we make in local infrastructure and to prevent pollution, the impact we have on the sustainability of other industries, and the value our products bring to both consumers and society at large.

What is the potential to create value?

We already make a significant contribution to society, but we need to demonstrate it better. This will help build trust not only in our communities, but among our investors, and our employees will be proud to say they work for us. It will also help prevent disruptions. As our local operations take responsibility for measuring and valuing their own impact, they will make better decisions, and form more resilient business strategies. We will become a partner of choice for governments, and an employer of choice for the talent of the future.

Our stakeholders’ expectations

Mining companies, more than in many other sectors, are expected to make significant economic and social contributions to the communities where they operate. The agreements with host governments – memorandums of understanding – set out these requirements in great detail. Steelmaking companies can also face similar challenges from their host governments and communities.

Recent disclosures about corporate tax payments in the retail sector make the media and consumers more aware of the issue of the contributions companies make. Greater scrutiny of company tax structures is shining the spotlight on the contributions business makes to government revenues. Stakeholders and investors also attach great importance to transparent disclosure, as a crucial element of better governance. The Extractive Industries Transparency Initiative is an example of this, and we have been involved in it since 2007, both on the board and in Liberia.

Sustainability frameworks like the Global Reporting Initiative (GRI) and the Integrated Reporting Framework, as well as concepts such as ‘net positive’ and ‘shared value’, are driving companies like ours to measure and report on the social and environmental value we create through our operations, investments and products.

The outcome we need

We can show the value of the contribution we make to society, and our stakeholders understand and appreciate it.

Achieving our new outcome

We have reported on our socio-economic contribution at a corporate level for a number of years, and we want to do so in a more meaningful way at a local level. As part of our sustainable development framework we will ask our local managers to consider how they demonstrate the positive and negative social and economic impacts of our business. We will also ask them whether there are opportunities to be had in measuring these better, either themselves or by collaborating with others. Most of our local operations produce their own sustainability report and we are making a big effort to improve and extend the information these local reports provide, asking them all to work towards alignment with the GRI G4 framework by 2016 to report on their socio-economic impacts.

Our approach to date

At present we monitor the safety of our workforce, assess the interests of our stakeholders at site level, and report on our implementation of labour standards and human rights. At a global level we also assess the economic value created through our procurement, tax payments and R&D investments. With the exception of a small number of studies – we have not yet combined these and our environmental measurement into a comprehensive assessment of net social impact. Nor have we assessed the social impact of our steel products. However, we are taking some initial steps in this direction, which we will build on as we pursue this new outcome.

What's new?

News 21.09.2016 Steel goes circular: The Circular Building
News 19.03.2015 ArcelorMittal steel in Warsaw underground
Our Stories01.05.2016 Steel goes circular: re-using sheet piles
Our Stories01.04.2016 Fertile thinking: farmers benefiting from steel slag
Our Stories01.04.2016 Clearing the air: new products for indoor environments
Our Stories01.04.2016 New ideas, new technology: interns in Argentina
Our Stories01.04.2016 Collaboration on the Great Lakes
Our Stories01.04.2016 Getting on the front foot in Ostrava: dealing with dust
Our Stories01.01.2015 Engineering low-carbon solutions for buildings
Our Stories01.01.2015 Sustain Our Great Lakes
Our Stories01.01.2015 Measuring impact in South Africa
Our Stories01.01.2015 Liberia: Mobilising the response to Ebola
Our Stories01.01.2015 Creating shared value at the base of the pyramid
Our Stories01.01.2014 Rails of steel
Our Stories01.01.2014 Strong, sustainable, inspirational steel
Our Stories01.01.2014 The science behind the steel
Our Stories26.06.2012 Steel on the move
Our Stories01.04.2012 Clearing the air
Our Stories31.03.2012 The house of the future
Our Stories01.01.2012 Making zero the hero
Our Stories01.01.2011 Saldanha's scorpions
Our Stories01.01.2011 Transforming tomorrow in emerging markets
Our Stories01.01.2010 Engaging with local communities
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SD Update19.01.2017 Gender diversity award for ArcelorMittal Ostrava
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SD Update27.06.2016 ArcelorMittal assesses contribution to South Africa
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SD Update17.04.2015 Kazakhstan and Ukraine: Ethics days
SD Update26.02.2015 Kazakhstan: best workers honoured
SD Update01.01.2015 Global: researching technology
SD Update01.01.2015 US: Maximising water re-use
SD Update01.01.2015 Engaging with our suppliers: Buying safe products
SD Update01.01.2015 Kazakhstan: Treating mine water
SD Update01.01.2015 US: Girls in STEM
SD Update01.01.2015 South Africa: Renewable energy
SD Update01.01.2015 US: Encouraging interest in STEM
SD Update01.01.2015 The social value of steel
SD Update01.01.2015 Brazil and South Africa: Nuclear energy
SD Update01.01.2015 Global: The integrity campaign
SD Update01.01.2015 Global: Employment and turnover
SD Update01.01.2015 Global: Collective bargaining agreements
SD Update01.01.2015 South Africa: Building the skills the economy needs
SD Update01.01.2015 Global: adapting to the downturn
SD Update01.01.2015 US: Success in both steel and mining
SD Update01.01.2015 Europe: European Works Council
SD Update01.01.2015 Morocco: Reducing accidents to zero
SD Update01.01.2015 Training: Performance and progress
SD Update01.01.2015 Mining: Managing security
SD Update01.01.2015 R&D: Innovations in our energy processes
SD Update01.01.2015 Global: Performance and progress
SD Update01.01.2015 Global: Progress and performance
SD Update01.01.2015 Global: Health and safety day
SD Update01.01.2015 Americas: Continued progress
SD Update01.01.2015 Global: Performance and progress - Resources
SD Update01.01.2015 Global: Maximising value from residues
SD Update01.01.2015 Europe: The Energize programme
SD Update01.01.2015 Performance and progress
SD Update01.01.2015 Jean-Sebastien Thomas: a personal contribution
SD Update01.01.2015 Global: R&D
SD Update01.01.2015 Global: Performance and progress - Resources
SD Update01.01.2015 Global: Women in Leadership programme
SD Update01.01.2015 Morocco: Developing a local scrap economy
SD Update01.01.2015 Global: Valuing differences
SD Update01.01.2015 Global: Performance and progress
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SD Update01.01.2015 South Africa: Zero effluent discharge (ZED)
SD Update01.01.2015 US: Encouraging women into steelmaking
SD Update01.01.2015 Poland: A broad-based programme
SD Update01.01.2015 Romania: Meeting targets
SD Update01.01.2015 Customers: Managing sustainability enquiries
SD Update01.01.2015 Performance and progress
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SD Update01.01.2015 Liberia: The resettlement and livelihoods programme
SD Update01.01.2015 Measuring our impact
SD Update01.01.2015 Local procurement: BBBEE in South Africa
SD Update01.01.2015 Morocco and Czech Republic: Employee volunteering
SD Update01.01.2015 South Africa: Environmental disclosure
SD Update01.01.2015 Liberia: Responding to Ebola
SD Update01.01.2015 Bosnia & Herzegovina: Responding to the floods
SD Update01.01.2015 Mining: Managing risks from our tailings dams
SD Update01.01.2015 Algeria: Supporting women
SD Update01.01.2015 Liberia: Protecting natural habitats
SD Update01.01.2015 Mexico: A mixed year
SD Update01.01.2015 Railways and bridges
SD Update01.01.2015 Liberia: Managing expectations
SD Update01.01.2015 Flood defences
SD Update01.01.2015 France: living up to our promises
SD Update01.01.2015 Baffinland, Canada: committed for the long term
SD Update01.01.2015 Europe: EU2030
SD Update01.01.2015 Performance and progress
SD Update01.01.2015 Replacing hazardous compounds
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SD Update01.01.2015 Energy efficiency: insulation
SD Update01.01.2015 R&D: New ways to deal with CO2e
SD Update01.01.2015 Liberia: Responding to Ebola
SD Update01.01.2015 R&D: Low-impact steelmaking
SD Update01.01.2015 Kazakhstan: Health checks
SD Update01.01.2015 Performance and progress
SD Update01.01.2015 Global: Tackling stress
SD Update01.01.2015 Global: Raising health awareness
SD Update01.01.2015 Global: R&D
SD Update01.01.2015 Global: Performance and progress
SD Update01.01.2015 Czech Republic: Modernisation programme at Ostrava
SD Update01.01.2015 Czech Republic: Aiming to be a non-smoking company
SD Update01.01.2015 Canada: Challenges for Dofasco
SD Update01.01.2015 Global: supporting research students
SD Update01.01.2015 Bosnia and Herzegovina: Mixed blessings
SD Update01.01.2015 Germany: apprenticeships volunteering
SD Update01.01.2015 Future leaders scheme
SD Update01.01.2015 France: Investing in university-level talent
SD Update25.06.2013 Presenting new ultra lightweight car door solution