I doubt seriously that Tolkien ever addressed an animal rights issue in his works. Mainly because such an issue barely existed if at all when LOTR was written.
Certainly the Haradrim were a cruel and hard people. They worshipped darkness, having been under the sway of Morgoth during the first age and later under Sauron's domination. But, that does not necessarily mean they were outright cruel to the Oliphaunts. Most people don't run around abusing a perfectly good and usefull tool, which I am sure is how the Haradrim viewed Oliphaunts.
As far as the gold banding on the tusks goes, the Oliphaunt probably never felt a thing when banding took place. The tusks are a waste product like hair and nails on people. No nerve endings, just a bunch of dead cells. The banding itself probably serves a similiar purpose as the banding on a wooden hafted weapon, to strengthen and help protect against breakage. Thoug in this case it was more decorative because gold is certainly to soft to provide any protection worth mentioning. As for the blood, well it was a war Oliphaunt, probably killed a few Haradrim (and maybe a few Rangers of Ithilien, as well) after raging out of control, so it was blood from a victim, not the Oliphaunt's own blood.
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