DPR1504
ASSIGNMENT 1
DUE 28 MARCH 2025
, DPR1504
ASSIGNMENT 1 2025
To complete Question 1 and Question 2, consult Lonmin Platinum Mining Company
uploaded under additional resources.
QUESTION 1- Reasons for building relationships with stakeholders
According to the ‘King Code of Governance’, called King IV, the principle regarding
stakeholders states the following: “As part of its decision-making in the best interests of
the organisation, the governing body should ensure that a stakeholder-inclusive
approach is adopted”.
QUESTION 1: Reasons for Building Relationships with Stakeholders (20 Marks)
According to the King IV Code of Governance, organizations should build strong
relationships with stakeholders as part of their decision-making process. Stakeholders
include employees, trade unions, government authorities, investors, and local
communities. In the case of Lonmin Platinum Mine, the failure to engage effectively with
stakeholders led to severe consequences, including the Marikana massacre.
1. Improved Trust and Reputation
Engaging stakeholders builds trust, which is essential for maintaining a good corporate
reputation. In Lonmin’s case, a lack of trust between the company, workers, and unions
resulted in violent protests.
2. Social License to Operate
A company’s acceptance by the community and workforce determines its long-term
sustainability. Lonmin’s failure to address miners’ concerns about wages and living
conditions led to resistance from both employees and the surrounding community.
3. Compliance with Legal and Ethical Standards
ASSIGNMENT 1
DUE 28 MARCH 2025
, DPR1504
ASSIGNMENT 1 2025
To complete Question 1 and Question 2, consult Lonmin Platinum Mining Company
uploaded under additional resources.
QUESTION 1- Reasons for building relationships with stakeholders
According to the ‘King Code of Governance’, called King IV, the principle regarding
stakeholders states the following: “As part of its decision-making in the best interests of
the organisation, the governing body should ensure that a stakeholder-inclusive
approach is adopted”.
QUESTION 1: Reasons for Building Relationships with Stakeholders (20 Marks)
According to the King IV Code of Governance, organizations should build strong
relationships with stakeholders as part of their decision-making process. Stakeholders
include employees, trade unions, government authorities, investors, and local
communities. In the case of Lonmin Platinum Mine, the failure to engage effectively with
stakeholders led to severe consequences, including the Marikana massacre.
1. Improved Trust and Reputation
Engaging stakeholders builds trust, which is essential for maintaining a good corporate
reputation. In Lonmin’s case, a lack of trust between the company, workers, and unions
resulted in violent protests.
2. Social License to Operate
A company’s acceptance by the community and workforce determines its long-term
sustainability. Lonmin’s failure to address miners’ concerns about wages and living
conditions led to resistance from both employees and the surrounding community.
3. Compliance with Legal and Ethical Standards
