CSR in Mongolia

History of CSR:

CSR is still a new concept in Mongolia.
The business world of Mongolia is aware of the term and largely perceives it as making environmental and social contributions in Mongolia.
The Mongolian business world, the legal and political environment, as well as the little acknowledgement of responsible business actions by the general Mongolian public, are obstacles for a stronger company commitment to CSR.
There is a lack of state led initiatives and possible hindrance by lack of state transparency.
The general consensus among the business community is that the onus of CSR lies with the government.
Larger international firms tend to follow internationally accepted CSR standards
CSR is seen by some groups as an attempt to buy public approval.

Legal framework and Initiatives:

Child Labour & Forced labour
Under Article 13 of Mongolia’s Criminal Code (2015), forced labour in general is punishable by a fine or up to 8 years’ imprisonment. In the agriculture industry particularly, the issue of informal contracts has facilitated the persistence of child labour.
Labour Laws
Mongolia has relatively strong labour laws that address health and safety requirements, minimum wage levels, and maximum hours of work regulations, collective employment agreements and resolution of employment disputes among other matters.
Environment
Under article 91.1 of Mongolian labour law, an employer must ensure that chemical, physical and biological conditions resulting from production processes will not have a negative impact on safety, sanitation, or the natural environment.
Corruption
This is fairly prevalent in Mongolia due to pervasive political and judicial corruption. Key anti-corruption legislation includes the Criminal Code and the Anti-corruption law.
CSR Law
No statutory requirement for CSR currently exists, however the 2014 amendment to the 2006 Minerals Law requires minerals exploration and mining companies to develop local development plans with the county in which they operate.

Good practice:

Aspire, a junior mining company that entered the Mongolian market 6 years ago has integrated community relations into operations right from the beginning of their exploration work programme. For instance: the education commitment by Aspire provides scholarships for local students, including 16 bursaries for university entry including tuition and books.