beyond the gate: corporate social responsibility and mining
DESCRIPTION
Beyond the Gate: Corporate Social Responsibility and Mining The University of British Columbia - School of Mining Engineering Vancouver, Canada | March 2004 www.waynedunn.comTRANSCRIPT
A History of Creating Innovative Partnerships
Page 1
Beyond the Gate
Beyond the Gate: CSR & Mining
UBC Mining Lecture
March 19, 2004Vancouver, Canada
Presented by:Wayne Dunnwww.waynedunn.com [email protected]
A History of Creating Innovative Partnerships
Page 2
Beyond the Gate
CSR is a Value Strategy
Share price of a CSR failure that rendered a multi-
billion dollar reserve
un-developable ~$13.00 $0.29
A History of Creating Innovative Partnerships
Page 3
Beyond the Gate
Presentation Objective
Basic understanding of the Why, How and How Not of CSR and Mining.
Know of a couple of Best Practices
A History of Creating Innovative Partnerships
Page 4
Beyond the Gate
Presentation Outline
WHY HOW and HOW NOT Some Examples Questions/Discussion
A History of Creating Innovative Partnerships
Page 5
Beyond the Gate
Why is CSR happening?
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
A History of Creating Innovative Partnerships
Page 6
Beyond the Gate
CSR and Development
Quotes from the World Summit UN Secretary General Kofi Annan “lasting and effective
answers can only be found if business – working together with other actors including government and civil society– is fully engaged ”
Prime Minister Chretien (Canada) “Building creative and innovative partnerships to promote sustainable development is a defining theme of our global agenda”
EU President/ Prime Minister of Denmark Anders Fogh Rasmussen, “The business sector has a very important role to play in sustainable development. To pursue this goal, we must all work together; governments, the business sector and civil society. I look forward to further cooperation between the EU and private business.”
A History of Creating Innovative Partnerships
Page 7
Beyond the Gate
• “We are determined to provide multi-skilling to workers and assist them to cope with retrenchments. This is a must and not a choice for industry”
• “It is important for mining to ensure that economic benefits accrue to society as a whole and more specifically to communities affected by mining . . . The social environment has not, in my opinion, been adequately addressed in the past”
Hon. Phumizile Mlambo-NgcukaSouth Africa Minister of Minerals and Energy
The Mining World Has Changed
A History of Creating Innovative Partnerships
Page 8
Beyond the Gate
The Mining World Has Changed
Social issues are as important as Technical Issues
A History of Creating Innovative Partnerships
Page 9
Beyond the Gate
CSR IS about value
Bougaineville - corporate practices were directly implicated in provoking civil war, allegedly cost Rio Tinto $3 billion (Stanford Univ study)Tambo Grande Ovacik/EurogoldSaskatchewan Uranium Industry
A History of Creating Innovative Partnerships
Page 10
Beyond the Gate
Mining IS a Development Business
Mining industry is amongst world leaders in creating local value from investments and operations.
SD/CSR will continue to grow in importance.
A History of Creating Innovative Partnerships
Page 11
Beyond the Gate
Beyond Beads ‘n Trinkets
To create bottom line value CSR must create meaningful development value in areas such as:
– Poverty Alleviation– Community Health– HIV/AIDS– Rural Development– Local Capacity Development– Infrastructure Support
Value Created is not measured in money spent
A History of Creating Innovative Partnerships
Page 12
Beyond the Gate
SD/CSR Implementation Challenges
more than a warm fuzzy issueSpending isn’t the answer
Plan
Framework
System
?Results?
Solving socialproblems Objectives
A History of Creating Innovative Partnerships
Page 13
Beyond the Gate
SD/CSR Implementation Framework
Focus on Value Creation Be systematic and integrate with overall development
objectives of the country/region Catalyst for Development – development partnerships Accept that there will be negative impacts (e.g. AIDS) Build from local strengths / mitigate local weaknesses Begin closure planning NOW Build international relationships Communication is critical – appropriate and strategic Bring the industry along with you Quantify objectives and results
A History of Creating Innovative Partnerships
Page 14
Beyond the Gate
Some Examples
Placer Dome South AfricaPoverty alleviationHIV/AIDSCapacity development
Eldorado Gold - KisladagPoverty alleviationEnvironmental rehabilitationRural developmentCapacity development
Porgera (PNG)InfrastructureRural Development.National HIV/AIDS StrategyClosure Planning Approach
A History of Creating Innovative Partnerships
Page 15
Beyond the Gate
Placer Dome Care Project
Original objective – mitigate the social and economic impacts of retrenchment and assist 70% of family units to become economically active
Innovative rural development and HIV/AIDS program, delivered at community level across 3.5 million sq km of southern Africa
– Extensive involvement of women and families– Pioneered new 13 step process with extensive counseling,
training and support. (Process is being copied by other development programs in the region)
A History of Creating Innovative Partnerships
Page 16
Beyond the Gate
Placer Dome Care Project
HIV/AIDS program won prestigious Development Innovation Award at World Bank’s Development Marketplace
– Over 2,400 development projects from 122 countries
CSR can create real development value
A History of Creating Innovative Partnerships
Page 17
Beyond the Gate
EmployedWorker
SupportingExtended
Family
Worker becomesHIV Positive and
Eventually developsAIDS
Healthy workerleaves village
for employment
MedicalRepatriationTerminally IllMan Returns
To Village
Virtually no support for familiesChallenge is too vast for anysingle company to address
Current reality
Family andCommunityPrepared to
RecieveWorker
FamilyCounselling
andIntegration
withCommunity
Services
Training, Support and Medical SuppliesAssist Family to
Care for terminally ill
Care Process assistsFamily member toDevelop alternative
Economic OpportunityWithout intervention
the worker goes hometo overwhelm family whohave no support and no
means of economic sustainabilty
Financially sustainable through fee for service approach
Scalable beyond the mining industry
Helps to mitigate the social andeconomic impact of AIDS
in rural villages
Mining Outreach Partnership
Future Development
A History of Creating Innovative Partnerships
Page 18
Beyond the Gate
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)
A History of Creating Innovative Partnerships
Page 19
Beyond the Gate
Porgera
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
A History of Creating Innovative Partnerships
Page 20
Beyond the Gate
Porgera Closure Framework
A History of Creating Innovative Partnerships
Page 21
Beyond the Gate
Summary
Why Because it is smart business and creates/preserves value
How not Don’t simply throw money at social issues
How Systematic and Value Creation FocusedMeasure, Measure, Measure
Examples South Africa, Turkey, Papua New Guinea
A History of Creating Innovative Partnerships
Page 22
Beyond the Gate
Main Point
CSR is about value
creation not Charity
A History of Creating Innovative Partnerships
Page 23
Beyond the Gate
Questions and Discussion