de beers canada’s approach to first nations community ... · pdf filede beers...

62
De Beers Canada’s Approach to First Nations Community Engagement Jonathan A Fowler De Beers Canada Inc. Presented at Ryerson University. 25 November 2013

Upload: dinhthuan

Post on 25-Mar-2018

215 views

Category:

Documents


1 download

TRANSCRIPT

Page 1: De Beers Canada’s Approach to First Nations Community ... · PDF fileDe Beers Canada’s Approach to First Nations Community Engagement Jonathan A Fowler . De Beers Canada Inc. Presented

De Beers Canada’s Approach to First

Nations Community

Engagement

Jonathan A Fowler De Beers Canada Inc. Presented at Ryerson

University. 25 November 2013

Page 2: De Beers Canada’s Approach to First Nations Community ... · PDF fileDe Beers Canada’s Approach to First Nations Community Engagement Jonathan A Fowler . De Beers Canada Inc. Presented

About Myself - Jonathan Fowler

• Position: - Vice President - Aboriginal Affairs & Sustainability

• Experience: Over 45 years in diamond exploration and mining, including working with indigenous peoples in Namibia, South Africa, Botswana, Zambia, Canada, Brazil, and Kalaallit Nunaat: ~30 of these years spent in Canada. Previously Chief Geologist for exploration in Canada (1989-1999).

• Interests: Travel, indigenous peoples, semi-precious stones, cooking, reading, geology

• Family: Married 39 years (same wife!), one son

aged 28.

Page 3: De Beers Canada’s Approach to First Nations Community ... · PDF fileDe Beers Canada’s Approach to First Nations Community Engagement Jonathan A Fowler . De Beers Canada Inc. Presented

Agenda

• Background • Why engage with First Nations

(and other Aboriginal Peoples)? • Communities • Approach • Communities of Interest or

Stakeholders • 8 Stages of Community

Engagement • Effective Community

Engagement – Who, What, When? • Engagement Process • Corporate Social Responsibility • Developing Opportunities • Importance of Sustainability &

Capacity Building

• Corporate Social Investment • Common Pitfalls • Hurdles • Overcoming Hurdles • Consultation tips • Building Partnerships • When It All Goes Wrong • Social License to Operate • Conclusions

3

Page 4: De Beers Canada’s Approach to First Nations Community ... · PDF fileDe Beers Canada’s Approach to First Nations Community Engagement Jonathan A Fowler . De Beers Canada Inc. Presented

Background

• Remarkably few universities provide guidance to students on community engagement with indigenous people (in Canada, referred to as Aboriginal people).

• There is rarely mention of the importance of Corporate (Social) Responsibility, particularly at the exploration stage of a project.

• The concept of a ‘Social License to Operate’ is also missing. • These are all essential elements of exploration in the 21st Century.

Where these are not included in an exploration program, a proponent – whether a junior or a major – will have issues going forward.

• How all these fit together will be discussed. • There are no ‘silver bullets’ and plenty of pitfalls. • Most of the approaches discussed work elsewhere in the world, and

techniques for working with Indigenous people work with non-indigenous ones.

4

Page 5: De Beers Canada’s Approach to First Nations Community ... · PDF fileDe Beers Canada’s Approach to First Nations Community Engagement Jonathan A Fowler . De Beers Canada Inc. Presented

Background (2)

• Canada is a composite nation including many peoples from many parts of the world.

• When the first settlers arrived, there were already people living here:

– First Nations in the south – Inuit in the north.

• Shortly after the arrival of the first settlers from overseas, a third group of people of mixed heritage appeared.

• Some of these are defined as Métis, and these have a direct link to the Red River area of Manitoba.

• The Canadian Constitution (1982) recognises three groups of Aboriginal People in Canada, First Nations, Métis and Inuit.

5

Page 6: De Beers Canada’s Approach to First Nations Community ... · PDF fileDe Beers Canada’s Approach to First Nations Community Engagement Jonathan A Fowler . De Beers Canada Inc. Presented

Why engage with stakeholders? (Ethical Corporation, Sept 2013)

• “It helps inform the decision-making of the business by making visible some of the potential consequence of proposed decisions. It is of interest to stakeholders because it is about actions that may directly affect them.”

• “It is about building relationships with the people that are important to the business – relationships on a level other than the one where people buy things from you.”

• “Stakeholder engagement has to be focused and sophisticated.” – … Focused on the right people …; – … [Sophisticated because it] involves understanding their thoughts,

interests, fears and aspirations …. – There is a growing realisation that stakeholder engagement and

corporate responsibility realms overlap.

6

Page 7: De Beers Canada’s Approach to First Nations Community ... · PDF fileDe Beers Canada’s Approach to First Nations Community Engagement Jonathan A Fowler . De Beers Canada Inc. Presented

Why Engage with Aboriginal Peoples

• The first peoples, the Aboriginal peoples, traditionally have occupied Canada since time immemorial

• The areas they occupied are called traditional lands. • The traditional lands are used collectively by a community, and

the community has collective rights (Aboriginal rights). • If there is a treaty covering the area, there are also Treaty rights,

which are also collective rights. • It makes sense to have discussions with these traditional land

users. • The public are free consultants! So why not engage them as

well?

7

Page 8: De Beers Canada’s Approach to First Nations Community ... · PDF fileDe Beers Canada’s Approach to First Nations Community Engagement Jonathan A Fowler . De Beers Canada Inc. Presented

Communities

• Each community is unique! • Understanding how a community is made up is important: most

have elected leaders, and many also have hereditary leaders. • Some communities are patriarchal, and many are matriarchal. It

is important to understand who is influential in decision making. • Besides the elected and hereditary leaders, there are non-

elected influential community members. • There will be other significant segments within a community, e.g.

entrepreneurs, hunters and trappers, perhaps farmers, Youth, Elders, and so on.

8

Page 9: De Beers Canada’s Approach to First Nations Community ... · PDF fileDe Beers Canada’s Approach to First Nations Community Engagement Jonathan A Fowler . De Beers Canada Inc. Presented

Approach

• The ground rules are simple: you should ... • Be honest • Be open • Develop trust • Be truthful • Be respectful • Be inclusive • Be transparent • Communicate (listen carefully

and talk) • Be clear on the limits of what

you can discuss • Disarm suspicion by being

open and honest

• Not make promises that you cannot keep

• Not be afraid to say you do not know the answer and will find out and get back to the questioner with the answer (make sure you do!)

• Avoid surprises • Learn as much about the

stakeholder as possible • Focus on principles rather than

process • Keep good records of the

engagement!

• Lastly, ensure a continuity of both the message and the messenger.

9

Page 10: De Beers Canada’s Approach to First Nations Community ... · PDF fileDe Beers Canada’s Approach to First Nations Community Engagement Jonathan A Fowler . De Beers Canada Inc. Presented

Approach (2) - Tools

• What are the basic requirements for effective dialogue? – Identifying who the dialogue has to be with; – Knowing what the topics are to be discussed from the proponent’s

perspective; – Identifying concerns and issues of the Aboriginal people [i.e. First

Nation(s)]; – Identifying what are the time constraints; – Learning to listen; – Undertaking the conversation.

10

Page 11: De Beers Canada’s Approach to First Nations Community ... · PDF fileDe Beers Canada’s Approach to First Nations Community Engagement Jonathan A Fowler . De Beers Canada Inc. Presented

Approach (3)

• Community engagement is all about building a relationship and developing trust.

• It takes time to build a relationship, and it takes seconds to damage one significantly.

• There are 8 stages in community engagement. • Ensure during the planning that you undertake a risk

assessment, and include social risk as well as the usual exploration or operational ones.

• So who are we talking about?

11

Page 12: De Beers Canada’s Approach to First Nations Community ... · PDF fileDe Beers Canada’s Approach to First Nations Community Engagement Jonathan A Fowler . De Beers Canada Inc. Presented

Who is a “Community of Interest?”

“Stakeholders are persons or groups who are directly or indirectly affected by a project, as well as those who may have interests in a project and/or the ability to influence its outcome, either positively or negatively.”

(IFC, 2007, p.10)

In Canada, we prefer the term “Community of Interest” (COI) to

“stakeholder” because our indigenous peoples consider themselves to be stewards of the land for future generations, thus they do not have a “stake” in the land. This perspective may not be the same elsewhere in the world.

12

Page 13: De Beers Canada’s Approach to First Nations Community ... · PDF fileDe Beers Canada’s Approach to First Nations Community Engagement Jonathan A Fowler . De Beers Canada Inc. Presented

Who is a “COI?” continued

• Stakeholders may be internal to the organisation or they may be external.

• Examples of stakeholders are shown below..

Internal

• Company’s management • Company’s employees • Company’s shareholders • Related companies

External

• Local Aboriginal communities • Non-Aboriginal communities • Non-government organisations • National government • Local government • Academia • Suppliers and contractors • Industry competitors

13

• So where do joint venture partners fit in?

Page 14: De Beers Canada’s Approach to First Nations Community ... · PDF fileDe Beers Canada’s Approach to First Nations Community Engagement Jonathan A Fowler . De Beers Canada Inc. Presented

Verifying COI

• Once the list of COI is complete, each individual COI should be approached and asked to confirm whether they believe they are an interested or affected party.

• Each should also be asked who else should be included or engaged.

• COI lists are dynamic, and as a project evolves, the list of COI may change. It is good practice to review and update the list periodically (i.e. annually).

• Caution: Some COI may assert that another party is not affected or interested. This should not be accepted as a fact but verified with the party in question.

14

Page 15: De Beers Canada’s Approach to First Nations Community ... · PDF fileDe Beers Canada’s Approach to First Nations Community Engagement Jonathan A Fowler . De Beers Canada Inc. Presented

8 Stages of Community Engagement (After IAP2, 2007)

• Information: Provide information to assist understanding the problem, alternatives, opportunities, who we are etc;

• Dialogue: Establish how each party wants to engage with the other i.e. through public meetings, a committee, a working group etc;

• Consultation (or Deep Dialogue): Discussion of what is proposed to identify concerns and issues and provide feedback on these until issues addressed;

• Involvement: Ensuring the stakeholder is part of the discussion, and that their concerns and issues are heard, understood and adequately addressed;

• Collaboration: Partner with the Stakeholder in each aspect of the decision including development of alternatives and identification of preferred solution

• Empowerment: Place the final decision in the stakeholder’s hands.

• Loop back to consultation: (for subsequent engagement) or • Exit strategy: How to quit and still leave the door open for the future

15

Page 16: De Beers Canada’s Approach to First Nations Community ... · PDF fileDe Beers Canada’s Approach to First Nations Community Engagement Jonathan A Fowler . De Beers Canada Inc. Presented

Effective Community Engagement – Who, What, When? (1) • Who are we talking to? We have to determine:

– Who are the prime affected stakeholders/Communities of Interest (COI)?

– Who are the secondary affected Communities of Interest (COI)? – Have we checked that these are the correct COIs? – Who else should be included? – What is the structure and organization of the COI that we are about

to talk to?

• Do not depend upon government to tell you who you have to talk to. Sometimes government gets it wrong!

16

Page 17: De Beers Canada’s Approach to First Nations Community ... · PDF fileDe Beers Canada’s Approach to First Nations Community Engagement Jonathan A Fowler . De Beers Canada Inc. Presented

Effective Community Engagement – Who, What, When? (2) • What are we talking about:

– What do you want to talk about? • Do you have a list?

– What are the values of the other party? Are any of these shared or common to you as well?

– What are the interests, issues and concerns of the other party? – How do you find out? – Sort it all out for a coherent message.

17

Page 18: De Beers Canada’s Approach to First Nations Community ... · PDF fileDe Beers Canada’s Approach to First Nations Community Engagement Jonathan A Fowler . De Beers Canada Inc. Presented

Effective Community Engagement – Who, What, When? (3) • When should we be talking?

– Is there a particular event that should trigger dialogue? – Start early and continue; – Community engagement is an on-going process; – Never close the door without leaving a window open!

• Exploration models and priorities change over time and an area considered of low interest today may become a high priority with new technology or new exploration models.

18

Page 19: De Beers Canada’s Approach to First Nations Community ... · PDF fileDe Beers Canada’s Approach to First Nations Community Engagement Jonathan A Fowler . De Beers Canada Inc. Presented

Effective Community Engagement – Who, What, When? (4)

• How do we know what are the priorities and interests of the COI that we are dealing with?

• Food for thought: – Have you asked them? – Have you tried to compare values? – Have you tried to match their interests and priorities with the

company’s strengths? – Has any attempt been made to accommodate issues or concerns

by modifying a proposed work plan?

19

Page 20: De Beers Canada’s Approach to First Nations Community ... · PDF fileDe Beers Canada’s Approach to First Nations Community Engagement Jonathan A Fowler . De Beers Canada Inc. Presented

Engagement Process

• Engagement can take many forms, e.g.:

• Public meetings • Open houses • Focus groups • Workshops • Fact sheets • Web sites • Surveys • Deliberative polling • Advisory committees • Consensus - building

• Participatory decision- making

• Advertorials • Newspaper articles • Community TV channels • Community radio • Social media • One-on-one discussions • Posters

20

Page 21: De Beers Canada’s Approach to First Nations Community ... · PDF fileDe Beers Canada’s Approach to First Nations Community Engagement Jonathan A Fowler . De Beers Canada Inc. Presented

Developing Opportunities (1)

• Early in the dialogue, find out what are the priority issues and concerns for the First Nation.

• Where possible, match these with your/the company’s strengths.

• Do not commit to something that you cannot deliver!

• Discuss where needs and skills match to ensure both parties are aligned and that there is consensus on these.

21

Page 22: De Beers Canada’s Approach to First Nations Community ... · PDF fileDe Beers Canada’s Approach to First Nations Community Engagement Jonathan A Fowler . De Beers Canada Inc. Presented

“But Exploration does not have opportunities … or money to spare”

• Budgets for exploration are usually very tight. • Think outside the box. • Many initiatives can be put in place for a nominal cost. • Every program requires labour, supplies, and fuel. • What are the resources available in the community? • Even limited on-the-job training contributes to a more effective

and safer program: a win-win for both parties that saves money in the long run.

22

Page 23: De Beers Canada’s Approach to First Nations Community ... · PDF fileDe Beers Canada’s Approach to First Nations Community Engagement Jonathan A Fowler . De Beers Canada Inc. Presented

Developing Opportunities (2)

• Plan jointly how to move forward, identifying what parts each party is responsible for (and where possible, identify who is accountable).

• Identify a quick win and go for it to start demonstrating that you can deliver.

• Aim for win-win situations (and if more than 2 parties, then win-win-win).

23

Page 24: De Beers Canada’s Approach to First Nations Community ... · PDF fileDe Beers Canada’s Approach to First Nations Community Engagement Jonathan A Fowler . De Beers Canada Inc. Presented

Developing Opportunities (3)

Example • Issue with potable water in a community?

– Opportunity to drill and equip a water well?

– Opportunity to train a water plant operator? Job shadowing?

– Opportunity for company specialist(s) to review maintenance schedules, spare parts and consumable stores list to create a better maintenance plan, appropriate stock levels, and system for supplies, assistance with budget preparation?

24

Page 25: De Beers Canada’s Approach to First Nations Community ... · PDF fileDe Beers Canada’s Approach to First Nations Community Engagement Jonathan A Fowler . De Beers Canada Inc. Presented

Developing Opportunities (4)

• Other possibilities might include, for example: – Assistance with temporary emergency

accommodation – Equipment repairs – Provision of expertise to assist with longer

term planning – Employee volunteers present talks in the local

school on areas of specialization e.g. geology, environmental protection, coaching maths

– Participate in Career Days at a local school – Hold business opportunity workshops on

creating a business, preparing an proposal/tender/bid etc.

– Work with a local college to deliver a workshop on a topic of interest e.g. money management, business management.

25

Page 26: De Beers Canada’s Approach to First Nations Community ... · PDF fileDe Beers Canada’s Approach to First Nations Community Engagement Jonathan A Fowler . De Beers Canada Inc. Presented

Importance of Sustainability & Capacity Building

• Many communities lack the capacity to participate in opportunities.

• Many communities want to participate but do not know where to start.

• Virtually all exploration and mining opportunities are not truly sustainable: a way is required to create something of comparable value to a community.

• Depending upon community priorities, creation of transferable and lasting skills and businesses can provide a way forward.

• This provides a win-win for both community and proponent.

26

Page 27: De Beers Canada’s Approach to First Nations Community ... · PDF fileDe Beers Canada’s Approach to First Nations Community Engagement Jonathan A Fowler . De Beers Canada Inc. Presented

27

Canada - Sustainable Development

Brundtland, 1987: “Ensuring that activities undertaken today meet the needs of the

present without compromising the ability of future generations to meet their own needs.”

• This requires all employees and contractors to understand, and be

empowered to take account of the longer term economic, social and environmental implications of their decision making and actions – not just for business but for society at large.

Page 28: De Beers Canada’s Approach to First Nations Community ... · PDF fileDe Beers Canada’s Approach to First Nations Community Engagement Jonathan A Fowler . De Beers Canada Inc. Presented

28

Environment

• A shared value and concern with

communities. • Consultation on environmental permit

applications. • Involvement with Closure planning. • Incorporation of traditional ecological

knowledge into project design, to balance/strengthen western science.

• Regular feedback to communities. • Use community members as

environmental monitors. • Annual reporting.

Page 29: De Beers Canada’s Approach to First Nations Community ... · PDF fileDe Beers Canada’s Approach to First Nations Community Engagement Jonathan A Fowler . De Beers Canada Inc. Presented

29

Mineral Exploration & Mining

• The mining sequence commences with exploration, and with luck progresses to mining.

• Exploration is usually short duration with a low probability of progression to a mine.

• Deposit Evaluation is longer duration.

• Mining is of relatively long duration, and once the natural ore body is depleted, the mine decommissions and closes.

• The opportunities for sustainable development are thus similar but different for these activities.

Page 30: De Beers Canada’s Approach to First Nations Community ... · PDF fileDe Beers Canada’s Approach to First Nations Community Engagement Jonathan A Fowler . De Beers Canada Inc. Presented

30

Common Themes

• Both Exploration and Mining require development of capacity within affected communities.

• Most aboriginal (e.g. remote) communities suffer from sub-standard education and a host of social issues.

• Common capacity issues are limited by education and training, and these impact employment and business opportunities (collectively “BET”).

• Both require a ‘Social Licence to operate.’ • Both parties are looking for ‘certainty and comfort.’

Page 31: De Beers Canada’s Approach to First Nations Community ... · PDF fileDe Beers Canada’s Approach to First Nations Community Engagement Jonathan A Fowler . De Beers Canada Inc. Presented

31

De Beers Philosophy • Do not do the job of government or replace other organisations.

• Work with local communities to identify what issues the

company can impact positively, and

• Identify with local communities what are their priorities.

• Help to develop capacity through BET.

• Deliberately plan not to provide infrastructure at present as this may require funding that an exploration company does not have.

• Plan to use a percentage of profit once a mine is found and is in

production for socio-economic support

Good Practices

Page 32: De Beers Canada’s Approach to First Nations Community ... · PDF fileDe Beers Canada’s Approach to First Nations Community Engagement Jonathan A Fowler . De Beers Canada Inc. Presented

32

Challenge and Goal

• How to leave something of comparable value to a community at the end of the company’s presence in an area is the challenge.

• How to do so in a way that delivers skills and businesses that are sustainable and are of long-term use to the community is the objective.

Page 33: De Beers Canada’s Approach to First Nations Community ... · PDF fileDe Beers Canada’s Approach to First Nations Community Engagement Jonathan A Fowler . De Beers Canada Inc. Presented

CSR – What do we mean?

• One definition of Social Responsibility is “the responsibility of an organization for the impacts of its decisions and activities on society and the environment, through transparent and ethical behaviour that:

– Contributes to sustainable development, including health and welfare of society;

– Takes into account the expectations of stakeholders; – Is in compliance with applicable law and consistent with

international norms of behaviour; and – Is integrated throughout the organization and practised in its

relationships.” (ISO26000:2010)

• There is an expectation that companies will address and answer two

aspects of their operations: – quality of their management (both people and processes), and – nature of and quantity of their impact on society in various areas

(e.g. marketplace, workplace, community, environment)

33

Page 34: De Beers Canada’s Approach to First Nations Community ... · PDF fileDe Beers Canada’s Approach to First Nations Community Engagement Jonathan A Fowler . De Beers Canada Inc. Presented

CSR Priorities - Worldwide (as at 2007)

Africa Asia Europe North America

Latin America Middle East

Poverty reduction

Poverty Environment See next slide

Labour issues National employment

Health & HIV/AIDS

Education Demographic change

Environment Diet & lifestyle

Skills development & education

Labour & supply chain

Education & skills development

Social services Worker's rights

Youth development

Environment Health & safety Corporate governance

Environmental sustainability

Socio-economic development

Products Poverty & social exclusion

Corruption

Community Diversity & equal opportunities

Governance

34

From: Visser, W.; Tolhurst, N. (Eds); 2010. The World Guide to CSR. Greenleaf Publishing, 451p.

Page 35: De Beers Canada’s Approach to First Nations Community ... · PDF fileDe Beers Canada’s Approach to First Nations Community Engagement Jonathan A Fowler . De Beers Canada Inc. Presented

Canada • Tar sands development &

greenhouse gas emissions • Old growth deforestation &

loss of habitat • Canadian fishing industry

(decline for >30years) • Water management • Widening demographic gap

(growing income gap)

United States • Energy & climate change • Job creation • Human rights • Consumer health • Protection of environment

especially wetlands and water (2012)

From: Visser, W.; Tolhurst, N. (Eds); 2010. The World Guide to CSR. Greenleaf Publishing, 451p 35

CSR Priorities - North America (as at 2007)

Page 36: De Beers Canada’s Approach to First Nations Community ... · PDF fileDe Beers Canada’s Approach to First Nations Community Engagement Jonathan A Fowler . De Beers Canada Inc. Presented

My limited perception of CSR Priorities – in Aboriginal Canada

Recurring mantra of six main elements, plus many others: • Poverty reduction • Housing • Potable water • Health • Employment • Education

In addition, there is a wish to share the benefits from natural resources.

36

Page 37: De Beers Canada’s Approach to First Nations Community ... · PDF fileDe Beers Canada’s Approach to First Nations Community Engagement Jonathan A Fowler . De Beers Canada Inc. Presented

CSR Priorities

• How do you address these in an exploration program?

37

Page 38: De Beers Canada’s Approach to First Nations Community ... · PDF fileDe Beers Canada’s Approach to First Nations Community Engagement Jonathan A Fowler . De Beers Canada Inc. Presented

First Step

• In dialogue with Aboriginal COI: – Identify their priorities, needs, expectations and aspirations; – Identify what are the company’s strengths; and – From these two lists, identify what is possible and what is not,

and also identify what is practical and what is not. • Define boundaries. These may not be what a community is looking

for, but it is transparent and honest. • Impacts (actual and potential) are identified at a conceptual study

stage, and regularly updated throughout the project life. – Community input is included.

• Are there third parties (i.e. an NGO) that you could partner with? • Caution: Sometimes it is difficult to complete a plan of what a

sustainable community looks like because the community’s perspective continues to evolve and sometimes change significantly.

38

Page 39: De Beers Canada’s Approach to First Nations Community ... · PDF fileDe Beers Canada’s Approach to First Nations Community Engagement Jonathan A Fowler . De Beers Canada Inc. Presented

CSR Components usually include

1. Organizational governance and ethics 2. Human rights 3. Labour practices - Health and Safety 4. Environment 5. Fair operating practices 6. Consumer issues 7. Community involvement and development

39

Page 40: De Beers Canada’s Approach to First Nations Community ... · PDF fileDe Beers Canada’s Approach to First Nations Community Engagement Jonathan A Fowler . De Beers Canada Inc. Presented

CSR Components

• There are legal requirements for companies to address – Corporate structure – Financial reporting – Human rights – Labour practices, including Occupational Health and Safety – Environmental protection – Fair operating practices – (Consumer issues) – While not an issue during exploration, if the

rest are not addressed, the legacy in the future will affect these – Community involvement

• In addition, there are ethical expectations for corporate

behaviour.

40

Page 41: De Beers Canada’s Approach to First Nations Community ... · PDF fileDe Beers Canada’s Approach to First Nations Community Engagement Jonathan A Fowler . De Beers Canada Inc. Presented

Corporate Social Investment

• Two components: 1. A philanthropic “hand out” 2. A capacity building “hand up”

• De Beers Canada focuses on the ‘hand-up’ philosophy:

– “Give a man a fish, he eats for a day. Teach a man to fish and he eats for life” (From Chinese proverb).

• This may not be appropriate for all companies.

• Use a Corporate Social Investment policy to provide consistent approach across the company.

41

Page 42: De Beers Canada’s Approach to First Nations Community ... · PDF fileDe Beers Canada’s Approach to First Nations Community Engagement Jonathan A Fowler . De Beers Canada Inc. Presented

CSR - Does it add value?

• What is CSR worth? It is difficult to define the financial value of CSR initiatives. Senior Management usually wants to know!

• A collaborative effort between Deloitte, International Finance Corporation, Rio Tinto, MIGA1, the Norwegian Ministry of Foreign Affairs, Newmont and Community Development produced a Financial Valuation Tool specifically for the extractives industries.

• It allows managers to value (sustainability) investments both from a direct cash flow and indirect risk mitigation perspective via a NPV. This can help to justify such investment to Senior Management!

• This is a free tool and is available at: http://commdev.org/financial-valuation-tool-fv-tool

• It helps answer two questions: i. What is the right portfolio of community investments? ii. What is the financial return they will likely bring?

1 MIGA = Multilateral Investment Guarantee Agency

42

Page 43: De Beers Canada’s Approach to First Nations Community ... · PDF fileDe Beers Canada’s Approach to First Nations Community Engagement Jonathan A Fowler . De Beers Canada Inc. Presented

Common Pitfalls (1)

• Insufficient information or poor communications giving rise to rumours (may be between proponent and community or between leadership and community).

• Poor interpretation, use of wrong words in translation. • Using acronyms and jargon. • Ineffective listening by company. • Lack of clarity in explaining how community concerns and issues

were addressed.

43

Page 44: De Beers Canada’s Approach to First Nations Community ... · PDF fileDe Beers Canada’s Approach to First Nations Community Engagement Jonathan A Fowler . De Beers Canada Inc. Presented

Common Pitfalls (2)

• Lack of an adequate and transparent grievance procedure. • Talking/dealing with a group that does not represent the entire

community. • Inconsistent messages from the company. • Frequent changes in the company’s team/representatives. • Overuse of acronyms and jargon.

44

Page 45: De Beers Canada’s Approach to First Nations Community ... · PDF fileDe Beers Canada’s Approach to First Nations Community Engagement Jonathan A Fowler . De Beers Canada Inc. Presented

Hurdles • Lack of capacity (proponent or community). • Not understanding the jargon, acronyms or language used. • Fear of change and the unknown. The status quo, however bad,

is nearly always preferable to something new. • Previous experiences with broken promises.

45

Page 46: De Beers Canada’s Approach to First Nations Community ... · PDF fileDe Beers Canada’s Approach to First Nations Community Engagement Jonathan A Fowler . De Beers Canada Inc. Presented

Overcoming Hurdles • Building capacity • Effective interpretation • Using plain language • Education and training

– Utilize excess training capacity to train community members e.g. potable water plant operators

46

• Employment • Business opportunities • Shared vision and priorities, e.g.

environmental protection • Being supportive

Page 47: De Beers Canada’s Approach to First Nations Community ... · PDF fileDe Beers Canada’s Approach to First Nations Community Engagement Jonathan A Fowler . De Beers Canada Inc. Presented

Overcoming Hurdles (2)

• Capacity – Is the capacity issue internal to the proponent? – Does the COI also perceive a capacity issue? – What areas are involved? – What training could help?

– How do you get buy in from the COI that they would like to have assistance to build capacity?

– How do you reach out to the community at large?

– How do you leverage (scarce) available funds to get a bigger bang for your buck?

47

Page 48: De Beers Canada’s Approach to First Nations Community ... · PDF fileDe Beers Canada’s Approach to First Nations Community Engagement Jonathan A Fowler . De Beers Canada Inc. Presented

A Few Consultation Tips

• Ensure messages to be delivered are clear and in plain language.

• Ensure interpreter is familiar with the material and the concepts behind the messages so that the intent can be translated.

• Practice the delivery: – Short sentences to facilitate interpretation and comprehension – Plenty of relevant illustrations, and photographs – most Aboriginal

people are visual people with a strong oral tradition. • Ensure time for questions. • If you don’t have an answer, undertake to provide one. Record

the name of the questioner, obtain the answer and pass it on! • Keep a record of who said what, particularly of any

commitments made.

48

Page 49: De Beers Canada’s Approach to First Nations Community ... · PDF fileDe Beers Canada’s Approach to First Nations Community Engagement Jonathan A Fowler . De Beers Canada Inc. Presented

Consultation Tips (2)

• Never interrupt an Elder! • Learn to be comfortable with silence. • Don’t be surprised if someone ‘vents’ on an unrelated issue at a

meeting. Everyone has issues and sometimes frustration boils over. Don’t take such venting personally if it is not directed specifically at you for something you have done.

• Make sure to acknowledge the honour of being on a community’s traditional land and of being able to meet with them.

• Say “Thank you” at the end of a meeting. • If you are offered a gift, do not refuse it (and make sure you have

a small gift or two on hand in case you have to reciprocate). • Be prepared to meet and be social from time to time so people

can get to know you.

49

Page 50: De Beers Canada’s Approach to First Nations Community ... · PDF fileDe Beers Canada’s Approach to First Nations Community Engagement Jonathan A Fowler . De Beers Canada Inc. Presented

Building Partnerships Where to start? • Identify possible opportunities • Confirm which are priorities for the community • Jointly select one for a pilot study • Jointly plan how best to implement this • Start working on it together

– Regularly check in on progress – Ensure regular communication with leadership and membership of

the community – Identify issues early and address them as quickly as practical – Celebrate a successful partnership when a milestone is reached.

This helps build confidence, pride and self-esteem of all involved.

50

Page 51: De Beers Canada’s Approach to First Nations Community ... · PDF fileDe Beers Canada’s Approach to First Nations Community Engagement Jonathan A Fowler . De Beers Canada Inc. Presented

Building Partnerships (2)

• Have discussions with non-elected influential decision makers, including Elders.

• Talk to Youth because they are the future of the community and are often overlooked.

• Ensure their views and needs are included in the plans. • Ensure there is feedback to all potential partners.

51

Page 52: De Beers Canada’s Approach to First Nations Community ... · PDF fileDe Beers Canada’s Approach to First Nations Community Engagement Jonathan A Fowler . De Beers Canada Inc. Presented

When It All Goes Wrong … (1)

• Find out what are the issues. This may not be as easy as it seems. (Try the “Five whys” to find the root cause).

• Find out what are the community’s expectations for a possible solution.

• Use a grievance procedure or a dispute resolution process if you have one.

• Enter into a respectful and open dialogue to resolve the issue. • Be prepared to listen to what is said, and where things are not

clear, be prepared to ask for more information, e.g. “Please tell me more about …”

52

Page 53: De Beers Canada’s Approach to First Nations Community ... · PDF fileDe Beers Canada’s Approach to First Nations Community Engagement Jonathan A Fowler . De Beers Canada Inc. Presented

When It All Goes Wrong … (2)

• Identify the root cause(s). • Once the root cause(s) are identified, find an appropriate

solution. • Check with the community that the solution is acceptable. • Carry out a risk assessment for the preferred solution to ensure it

does not make things worse or create a new issue. • Implement the solution. • Be sure to report back to the community what the solution is and

what has been done.

53

Page 54: De Beers Canada’s Approach to First Nations Community ... · PDF fileDe Beers Canada’s Approach to First Nations Community Engagement Jonathan A Fowler . De Beers Canada Inc. Presented

Social License to Operate

• What is this? “A social license to operate … exists when a mine or project has the ongoing approval within the local community and other stakeholders, ongoing approval or broad social acceptance, and most frequently as ongoing acceptance.”

Thomson and Boutilier, 2011

• Why is this important? – It provides a proponent with legitimacy for its presence and actions

from an Aboriginal community’s perspective; – It provides regulators with a level of comfort that a proponent is

acting responsibly; – It provides the shareholders for a proponent with a level of comfort.

54

Page 55: De Beers Canada’s Approach to First Nations Community ... · PDF fileDe Beers Canada’s Approach to First Nations Community Engagement Jonathan A Fowler . De Beers Canada Inc. Presented

How does De Beers earn its Social License to Operate?

• A SLO is earned through a combination of factors: – Community engagement undertaken in a respectful manner. – Listening to what an Aboriginal community is saying, addressing

concerns and issues, and using community input to improve a project.

– Providing appropriate support for an Aboriginal COI. This can take many different forms.

• It is important that the company is, and is seen to be, a good corporate citizen and a partner to the community:

– This does not mean that there will not be areas where we agree to disagree!

• We have to work hard to maintain it.

55

Page 56: De Beers Canada’s Approach to First Nations Community ... · PDF fileDe Beers Canada’s Approach to First Nations Community Engagement Jonathan A Fowler . De Beers Canada Inc. Presented

Social License to Operate

• A SLO is perceptual. • This perception is created by how the company behaves, how

consistent it is in its messages and its actions. – Does the company say what it will do, do what is says and is it able

to prove it? – Does the company deliver on its commitments? Most communities

consider commitments to be promises. – Does the company voluntarily partner with the community to help

the community resolve issues? – Does the company work with the community to build capacity? – Are local customs respected? – Does the company pay fair wages and fair compensation?

• The more of these where the answer is “Yes,” the greater the chance of obtaining a SLO.

56

Page 57: De Beers Canada’s Approach to First Nations Community ... · PDF fileDe Beers Canada’s Approach to First Nations Community Engagement Jonathan A Fowler . De Beers Canada Inc. Presented

Social License to Operate (3)

• A SLO can be affected by the profound cultural differences between corporations and communities, especially communities that are subsistent and rural.

• Keeping a low profile is not an option as it prevents legitimacy, transparency, credibility and the building of trust.

• Common pitfalls that should be avoided include – Failure to build a substantial relationship early; – Selective engagement within a community (e.g. only talking to

“friendly people”); – Failing to deliver on promises; – Failing to respect and listen to the community; – Failing to keep a community informed when there are changes with

project management; and – Misunderstanding and over-estimating the strength of the

relationship 57

Page 58: De Beers Canada’s Approach to First Nations Community ... · PDF fileDe Beers Canada’s Approach to First Nations Community Engagement Jonathan A Fowler . De Beers Canada Inc. Presented

Once a Social License to Operate has been earned, it can easily be lost!

58

Page 59: De Beers Canada’s Approach to First Nations Community ... · PDF fileDe Beers Canada’s Approach to First Nations Community Engagement Jonathan A Fowler . De Beers Canada Inc. Presented

Conclusions • Community engagement is about more than communication. • Start early • Have a consistent message and consistent messengers • Maintain continual communications • Listen • Solicit feedback • Make sure the community knows that you have heard them • Indicate how you have accommodated their input • Look for partnership opportunities • Focus on ones that are a priority for a community AND match

your skill/experience set. • Aim for win-win solutions • Build reputation and obtain a Social License to Operate

59

Page 60: De Beers Canada’s Approach to First Nations Community ... · PDF fileDe Beers Canada’s Approach to First Nations Community Engagement Jonathan A Fowler . De Beers Canada Inc. Presented

Thank you Merci

Meegwetch Tansi

Marci Cho Wela ‘lin

Questions?

60

Page 61: De Beers Canada’s Approach to First Nations Community ... · PDF fileDe Beers Canada’s Approach to First Nations Community Engagement Jonathan A Fowler . De Beers Canada Inc. Presented

Additional Resources (1)

• AccountAbility; 2010. AA1000 Stakeholder Engagement Standard 2011: Final Exposure Draft. AccountAbility; 52p. Available at http://www.accountability.org/images/content/3/6/362/AA1000SES%202010%20PRINT.PDF

• Anderson, M.B.; 1999. Do No Harm: How Aid can support Peace or War. Lynne Rienner Publishers, Boulder, Co.;161p.

• Anglo American plc.; 2012. SEAT Toolbox ver.3. Available at http://www.angloamerican.com/~/media/Files/A/Anglo-American-Plc/docs/seat-toolbox-v3.pdf

• CSA; 1996. A Guide to Public Involvement. Canadian Standards Association, publication Z764-96; 172 pages. Revised 2007

• Gray, L.; 2011: First Nations 101: tons of stuff you need to know about First Nations people. Adaawx Publishing. 209p.

• IAP2; 2007. Spectrum of Public Participation. International Association for Public Participation, 1p. Available from www.iap2.org/associations/4748/files/IAP2%20Spectrum_vertical.pdf

• ICMM; 2010. Good Practice Guide: Indigenous Peoples and Mining; 120p. Available at http://www.icmm.com/page/51914/guide-on-mining-and-indigenous-peoples-available-to-download

• ICMM; 2012. Community Development Toolkit. 220p. Available at http://www.icmm.com/page/84147/our-work/projects/articles/community-development

• IFC; 2007: Stakeholder Engagement: A Good Practice Guide for Companies Doing Business in Emerging Markets; 174p. Available at www.ifc.org/enviro

61

Page 62: De Beers Canada’s Approach to First Nations Community ... · PDF fileDe Beers Canada’s Approach to First Nations Community Engagement Jonathan A Fowler . De Beers Canada Inc. Presented

Additional Resources (2)

• IFC; 2011. Updated Performance Standards and Performance Guidelines (8 of each). Available at http://www.ifc.org/ifcext/policyreview.nsf/AttachmentsByTitle/Updated_IFC_SFCompounded_August1-2011/$FILE/Updated_IFC_SustainabilityFrameworkCompounded_August1-2011.pdf

• Jepsen, D.; Joseph R.; McIntosh, W.; McKnight, B.; 2005. Guidebook: Mineral Exploration, Mining and Aboriginal Community Engagement. Association of Mineral Exploration British Columbia, 82p.

• Joseph, R.P.C.; Joseph C.F.; 2012: Working Effectively with Aboriginal Peoples. Third Edition. Indigenous Corporate Training Inc. 204p.

• PDAC; 2011. e3 Plus. Prospectors and developers Association of Canada. Available at http://www.pdac.ca/e3plus/ see specifically http://www.pdac.ca/e3plus/English/pg/05-engage.aspx for community engagement

• Thomson, I.; Boutilier, R.; 2011. The Social Licence to Operate. In 3rd edition, SME Mining Engineering Handbook, 1772-1796.

• Zandvliet, L.; Anderson, M.B.; 2009. Getting It Right: Making Corporate – Community Relations Work. Greenleaf Publishing, 240p.

Useful web sites • University of Queensland Centre for Social Responsibility in Mining

http://www.csrm.uq.edu.au/publications/all-publications • Financial Valuation Tool (updated v.1.0.1.8) http://www.fvtool.com

62