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Opportunities for Managing Community Relations Through the Supply Chain by Monica Ospina 5th Annual Risk Mitigation & Corporate Social Responsibility (CSR) in Africa and Emerging Markets Vancouver, 2011

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Page 1: Opportunities for Managing Community Relations Through the ...onthegroundgroup.com/documents/5 - O trade1.pdf · Community Relations ! Through the Supply Chain!! by Monica Ospina

Opportunities for Managing Community Relations !

Through the Supply Chain !!

by Monica Ospina

5th Annual Risk Mitigation & Corporate Social Responsibility (CSR) in Africa and Emerging Markets

Vancouver, 2011

Page 2: Opportunities for Managing Community Relations Through the ...onthegroundgroup.com/documents/5 - O trade1.pdf · Community Relations ! Through the Supply Chain!! by Monica Ospina

The Challenge for !the Extractive Industry: Managing relationships & expectations with local communities

  Global markets observe CSR practices and sustainable relations with local communities.

  Local communities have high expectations around the entry of extractive companies. Expectations around education, sanitation and employability.

  Strict environmental, socio-economic, and contractual regulations make it difficult for companies to welcome unqualified suppliers.

  Little knowledge about local capabilities and competences.

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The Challenge for Locals: Gaining access to the supply chain

  Locals often lack understanding or knowledge around: ✘  Capabilities; ✘  Ability to innovate; ✘  Paths to satisfying client needs;

✘  Accessing the supply chain; and/or ✘  Becoming a qualified supplier.

  Modest local government support exists for private sector and capacity building programs.

  Locals may not meet industry standards around safety and quality due to: ✘  “Informal” businesses practices; ✘  Little knowledge of quality certifications; ✘  Deficiency in technical regulations.

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Building Trust Mining activities affect communities over the long term

Copyright © 2011 O trade and market access Page 4

Page 5: Opportunities for Managing Community Relations Through the ...onthegroundgroup.com/documents/5 - O trade1.pdf · Community Relations ! Through the Supply Chain!! by Monica Ospina

Why Market Access, the Supply Chain and CSR ? !

PRIVATE SECTOR ACCESS TO EXTRACTIVE OPPORTUNITIES

LOCAL COMMUNITIES

ACCESS TO DO BUSINESS WITHIN THE SUPPLY CHAIN

MARKET ACCESS

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Why Sustainable Supply Chains and Communities?!

Principles to build sustainable supply chain practices:

•  Transparency •  Early Engagement

•  Knowledge Transfer •  Expectations management

•  Solid Anticorruption policies

Because we need partners

committed to:

•  Reduce risk •  Secure quality & HSE •  Build efficiencies •  innovation

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Our Work: strengthen organizations by desinging CSR solutions around market access and efficiencies in the supply chain

Strengthen Centers for Excellence

CSR Management

Innovation & Productivity

Market Access

Community Relations

Client Relations

Supplier Relations

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Page 8: Opportunities for Managing Community Relations Through the ...onthegroundgroup.com/documents/5 - O trade1.pdf · Community Relations ! Through the Supply Chain!! by Monica Ospina

Our Programs:!CSR and the supply chain Local Community Procurement Program (LCPP)

The Buyer!Private Sector

Local !Organizations!

(Municipalities, Church, Social Associations)

The Supplier!Local SMEs

LCPP!Local Community Procurement

Program

“SMEs learned how to self-identify core competences, how to access the oil and gas supply chain and understand the specific demands of Alberta’s Oil and Gas industry”

Lori Schmidt, Sr. Director, Productivity Alberta Industry Development Branch, Government of Alberta, Canada

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Page 9: Opportunities for Managing Community Relations Through the ...onthegroundgroup.com/documents/5 - O trade1.pdf · Community Relations ! Through the Supply Chain!! by Monica Ospina

Thank you !

Monica Ospina, Director Email: [email protected]

Tel:  1 647 345 2535 www.omarketaccess.com