Download - Five Keys to Social License Success
Five Keys to Social License Success
Sustainable Development in the Minerals Industry
Vancouver, CanadaJuly 14, 2015
Wayne DunnProf. of Practice in CSR (McGill)President, CSR Training Institute
Why Me? Who is Wayne?
• Saskatchewan Farm Boy
• Accidental Academic
• 2 seasons diamond drilling (Gold/Uranium)
• 25+ years of practical, global CSR/social license experience• About 100 projects (programs, policies, strategy, relationships, innovation,
etc.) Many very complex (e.g., industry HIV/AIDS strategy in South Africa and Papua New Guinea). Some great successes, at least one social license failure.
• Over 40 countries spanning all continents (urban, rural, indigenous, traditional, etc.)
• Numerous awards (1st private sector winner of World Bank Development Innovation Award, Stanford Case Study, etc.)
• Developed McGill | ISID Executive Program on CSR Strategy & Management and taught hundreds of participants globally.
• Professor of PRACTICE in CSR (note – still practicing and learning!)
Presentation Outline
• Look at growing social demands on mining?
• How these demands can provide a five-point strategic framework for social license actions and responses?
• Industry Social License
• Social License partnerships?
• Discussion
Social LicenseCatching a cloud in a net
Social License
You can FEEL it
You can SMELL it
But, you can’t SIGN it
You can TASTE it
You can TOUCH it
Growing Societal Demandson Mining• Consultation (formal/informal,
history, structure, FPIC, closure)
• Access to land (who/how approved)
• Benefit sharing (what’s in it for everyone)
• Project approval (who approves? when? how?)
• Environmental monitoring (Who monitors? Trust, Communication, Local Involvement)
Consultation• From exploration to closure• Formal/Informal (relationship history across
ownership changes)
• Structured Processes (who leads, who participates, roles & responsibilities, end points)
• Starting point (exploration, permitting, construction)
• ICMM Position Paper http://bit.ly/ICMMFPIC
• defines FPIC as process based on Good Faith Negotiation through which Indigenous Peoples can give or withhold consent
• commits members to work to obtain the consent of Indigenous Peoples
• includes supporting commitments that apply to most interactions with indigenous communities
• defines how to engage where government has primary responsibility
• addresses how to move forward where differences of opinion arise.
Land Access
• Role of the State (strength of land cadastre systems)
• Role of Community (who leads,
who participates, roles & responsibilities, traditional land owners, end points,)
• Role of Landowner
• Role of Traditional Leaders
• Process (purchase, lease, negotiation,
relocation, pricing, etc.)
• Dispute Resolution
Benefit Sharing
• Compressive Community Development Agreements (structured frameworks, bi-lateral, tri-lateral/multi-dept, multi-lateral, ODA involvement)
• Local Content (employment,
procurement, training)
• Local Industry/Diversification
• Infrastructure (direct funded, co-funded, tax credits [Works for Investment])
• Resource Access (water, small scale mining, agriculture)
Project Approval
• Informal (local, national, international pressures: Tambo Grande, Rosia Montană)
• Structured Local Processes (Binding
Referendum/Honduras)
• Informed Processes (State decision informed and influenced by local [and other] input)
Environmental Monitoring
• Who monitors? (company, community, state, 3rd
party)
• How trusted is the regulator (objectivity,
impartial, informed, communication)
• Local involvement (Is the community involved? How? Starting when?)
• Communication (Is information available? How?)
Industry Social License
• Oil Sands - Alberta
• Uranium Mining –Saskatchewan
• American chefs signing up to boycott Canadian seafood because of the seal hunt
• Industry Associations (ICMM, Mining Chambers, CIM, PDAC, AME BC, etc.)
Sustainable Development in the Minerals IndustryVancouver, Canada, July 14, 2015
Increasing mandatory and voluntary compliance
• ICMI - International Cyanide Management Institute (ICMI)
• Conflict Free Gold Standard
• Voluntary Principles on Security and Human Rights
• EITI
• Global Reporting Initiative
• Voluntary Principles
• ICMM
• IFC
• Equator Principles
• ILO
• Accountability
• Many, many more
Relationships & Trust
• Crosscutting themes (relationship history across ownership changes)
• History of relationships (reputational capital of project and owners –new owners don’t reset reputational liabilities)
• Transparency and legitimacy of processes (environment, permitting & approvals)
5 keys to Social License Success
1. Consultation (formal/informal, history, structure, FPIC, closure)
2. Access to land (who/how approved)
3. Benefit sharing (what’s in it for everyone)
4. Project approval (who approves? when? how?)
5. Environmental monitoring (Who monitors? Trust, Communication, Local Involvement)
± Industry Social License
BEWAREThe Industry/Community
Capacity Gap
We’re all TryingBut, often its not working
Industry Efforts Community Efforts
Clear roles & responsibilities
Organizational Structure/Vehicle
Cultural Understanding
Adequate Resources
Execution Capacity
Governance
Partnership Strategy
Politics/Business separation
Other partners (ODA/IFI)
CSR Knowledge Centre
Below are some recent articles and publications on Corporate Social Responsibility and stakeholder engagement that you may find interesting.They are short and pragmatic, hopefully helpful and interesting. Read them, download them, share them and feel free to comment on them by sending us an email.
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We are a small, committed team focused on helping organizations of all types to create and capture value at the intersection of business and society.
Discussion
For any questions or comments
Wayne DunnProf. of Practice in CSR (McGill)President, CSR Training [email protected]