The communication of social and environmental performance to discharge stakeholder accountability : a case study of Talvivaara Mining Company Limited

This thesis presents a case study examining the social and environmental accounting (SEA) decisions and practices of Talvivaara Mining Company limited. Significant local presence and operating in a socially and environmentally sensitive industry has constantly exposed Talvivaara to social and ethical issues. In November, 2012, the company was faced with a major environmental accident when its gypsum pond leaked, releasing toxic substances to the environment, and posing a real threat to the company’s legitimacy. With special reference to this accident and generic social issues, this thesis aimed to ascertain how Talvivaara has utilized the communication of its social and environmental performance to discharge stakeholder accountability. The study used the content analysis method to analyze Talvivaara’s publicly available documents. The first stage was a longitudinal analysis to capture changes in the level of comprehensive reporting on generic corporate social responsibility (CSR) issues, and external verification and feedback solicitation features in the annual reports from 2008 to 2012. The second stage was a cross-sectional analysis of Talvivaara’s 2012 annual report and some selected press and stock exchange releases. This aimed to examine accounts ascribed to the accident and other CSR rhetoric, to establish the legitimation strategies used by Talvivara in the post-accident accounts. The longitudinal analysis revealed an inconsistent reporting pattern across the studied timeline and CSR issues. External verification and report feedback were sought only after the accident. Meanwhile, Talvivaara did not express responsibility for the accident itself but rather implied by the six discerned legitimation strategies used by the company; corrective action, organizational restructuring, normalizing accounts, attention deflection, image enhancement and redefinement of means and ends. Moreover, the accident response actions were exaggerated while the accident’s negative consequences obfuscated. The overall conclusion reached was that instead of discharging the duty of accountability, Talvivaara was more focused on presenting itself in a positive light. This thesis makes some contributions by describing how accountability tools are used to further legitimacy in an unexplored context, and also by showing the complimentary role of longitudinal and cross-sectional analyses

An assessment of the potential efficiency and profitability of valueaddition and marketing innovations involving smallholder farmers under a pilot system in Tanzania

An assessment of four pilot processing centers in Tanzania, established for processing cassava to high quality cassava flour, chips and starch based on IITA technologies was carried out from 2003 to 2005. We followed the value chain analysis approach, looking in detail at processing efficiency and relating it to market dynamics in particular of the fresh cassava or raw material market. Locations with large volumes of fresh cassava were found to be very favorable for such enterprises, as prices are likely to be low and surplus production ensures a steady flow of fresh cassava as raw material. Locations with little available cassava are not suitable, even if prices are low, as raw material is not readily available. Sourcing fresh cassava either on-farm or in the local market during the last quarter of the year was potentially difficult and very expensive. Trade margins of fresh cassava were significantly higher in markets with obvious scarcity, but relatively low in higher volume markets. Potential profitability of the infant processing sites was remarkably influenced by capacity utilization. At 100% capacity utilization, at Chisegu, a high quality cassava flour site, profitability was US$1,876, NPV was US$ 6,402, and IRR was 77%. At the high quality cassava flour site in Zogowale operated at 48% capacity utilization, profitability was US$1,640, NPV was US$ -9,429. At Bungu, a cassava chips site, although operated at 59% capacity utilization the profitability was US$2,126, NPV was US$ 8,698, and IRR was 135%. When the Zogowale operations were adjusted to 100% capacity utilization, the NPV increased substantially to US$11,013 while IRR also increased substantially to 177$ 4,482, a NPV, US$ 15,958, and IRR 91 %. Other factors, including infrastructure such as road and water, cultural attitudes of smallholder processors/farmers to work and their business outlook also affected the performances of the processing enterprises

Baseline study of Striga control using Imazapyr Resistant (IR) maize in Western Kenya

This report presents the results of the baseline study undertaken to assess the status of Striga damage, the general livelihoods and livelihood strategies of the rural poor in western Kenya. A stratified random sampling method led to the selection of 8 districts, 16 sub-locations, 32 villages and 800 households. A combination of techniques for data collection was used, including literature review, GPS recordings, focus group discussions and interview of individual households. Various econometric m odels were also developed and estimated for data analyses. A stochastic frontier production function was used to measure the technical efficiency of maize production. A logistic regression model of poverty was estimated to examine the determinants and correlates of poverty in western Kenya. The study revealed that households are small in size and the dependency ratio is high. There were about 26% of households headed by females. The level of education is low for the heads of households and all members of farm families. Households are endowed with a multitude of assets for their livelihoods. However, the level of assets was found to be low or of very poor quality. Maize is the major food crop and a so urce of cash income. Farmers grow both local and improved (hybrid) maize varieties, but the productivity is low. There is a considerable gap between potential and actual maize yields. Major factors constraining crop production include Striga infestation on maize, low soil fe rtility, drought and erratic rainfall. Striga is the major threat to livelihoods of smallholders and its economic importance has increased over the past three decades. Traditional methods of Striga control include uprooting, burning and manuring, which have proved to be ineffective. Alternative technologies exist but they have not been adopted and used as they should because the level of awareness is very low. Analysis of the determinants of poverty reveal ed that the poverty status of a household in western Kenya is significantly related to Striga damage, Striga control, dependency ratio, age, education, technology adoption, land per capita, farm assets, off-farm work, cash crop production, and location. More than 70% of the sampled households experi ence food shortage lasting as long as five months every year. Coping strategies include off-fa rm short-term jobs, disposal of assets, and informal safety nets especially through remittances received from relatives. The anthropometric Z scores calculated on children indicate that about 30% were wasting, 50% were underweight and 48% were stunted. Simila rly, the results on body mass index (BMI) on women showed that 36% were underweight while 18% were overweight. One of the possible strategies to reduce poverty and vulnerability is to increase the efficiency in maize production. Considerable variation in maize production efficiency was found among the sample maize farmers. The results point to the possibility of increasing maize production through improved efficiency and best local practic es adopted by the most efficient farmers in the sample, such as integrated Striga control. While technical efficiency increases with educational attainment, it has a significant non-li near relationship with farm size where it first increases but eventually declines with farm size. The direct farm size-efficiency relationship for smaller holdings coupled with the fact that most farmers in western Kenya cultivate tiny plots of land suggests that re-allocation of more land to maize would enhance farmer efficiency. Increased efficiency could be achieved through, for instance, more optimal application of inputs and greater intensity of ad option of improved maize varieties. Therefore, efforts must be made to enhance adoption of both hybrid maize and Striga control technologies to help increase maize production. Maize yields in Kenya have continued to decline despite increased use of new maize varieties, largely due to lack of effective Striga 7 control technologies. Promoting both high-yielding varieties and Striga control technologies should thus be an important goal for research and extension in Kenya