csr & corruption: chatham house/commonwealth secretariat conference on implementing the united...

A History of Creating Innovative Partnerships

THE COMMONWEALTH SECRETARIAT

& CHATHAM HOUSE

ANTI-CORRUPTION CONFERENCE

Corporate Social Responsibility & Corruption

Chatham House

London, U.K.

24-April-06

Presented by:

Wayne Dunn

President & CEO



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So What Is CSR?

Where Did It Come From?

What Does it Look Like?

How Does It Provide a Sustainable

Competitive Advantage?

Questions and discussion.

Overview



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Definition

“CSR is the continuing commitment by business to behave ethically

and contribute to economic development while improving the quality

of life of the workforce and their families as well of the local

community and society at large”

Financial

Responsibility

Environmental

Responsibility

Social

Responsibility

Corporate Social Responsibility

(Triple Bottom Line)

Source: World Business Council on Sustainable Development



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Companies working in partnership with communities and others to address problems;

Companies promoting good values to their employees, suppliers, customers, partners;

Companies investing in social and economic development;

Companies being good corporate citizens;

CSR is about…



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Globalized world is demanding more of business…

Global media – The CNNization of the world – remote local issues direct to

television screens

Proliferation of NGOs and CBOs – direct, well organized and financed support to communities

Internet and other communications innovations – direct communications from remote projects to worldwide audience

Global Democratization – increased attention to local issues

CSR Drivers/Corruption Challenges



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CSR Drivers/Corruption Challenges (cont)

Emergence of Global Standards

Equator Principles – World Bank/IFC Environment and Social Standards adopted by private banks

‘Socially conscious’ shareholders

Social Investment Funds

The Financial Markets – Dow Jones Sustainability Index (http://www.sustainability-index.com/)

– FTSE Sustainability Index (FTSE4Good) http://www.ftse4good.com/

– Domini 400 Social Index (DSI) http://www.domini.com/

http://www.sustainability-index.com/



http://www.ftse4good.com/

http://www.domini.com/



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Social License

An emerging phenomena

In addition to more traditional state issues licenses and regulatory approvals

Based on the principle that communities and local interests have a valid role in determining whether or not a project will proceed

Communities have inserted themselves into the regulatory approval/permitting process and can easily disrupt operations that they disapprove of



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– South Africa, Mozambique, Botswana, Lesotho and Swaziland

– Poverty alleviation

– Community health

– Industry leadership

– Capacity development

– HIV/AIDS

Placer Dome Care Project



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Eldorado Gold - Kisladag Project

Strategic approach to use mining project to facilitate sustainable rural development – Development of

agriculture related industries and infrastructure;

– Increased involvement of women;

– Improved grazing and land management (reduce desertification)



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Porgera, Papua New Guinea

Working to leave behind a

sustainable community

– Development of local, non-

mine related, business

– Creation of local infrastructure

to support a sustainable

community after the mine

leaves

– National HIV/AIDS PPP

Strategy

– Innovative closure planning



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Triple bottom line (financial, social and environmental performance)

Support sustainable development

Deal with a variety of stakeholders

Inter-connected projects with global markets and impacts

Transparent decision making processes

Broader access to investors and capital

Management of Reputational Capital

Sustainable Competitive Advantage


Page 13


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Competitive Advantage Choices

Bribery

Corruption

Social Responsibility

Ethical Behaviour


Page 14


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Competitive Advantage Choices

Bribery

Corruption

Social Responsibility

Ethical Behaviour

The Sustainable

Competitive Advantage


Page 15


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So What Is CSR?

Where Did It Come From?

What Does it Look Like?

How Does It Provide a Sustainable

Competitive Advantage?

Questions and discussion.

Overview


Page 16


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Question and Answer

Wayne Dunn

[email protected]