Beyond the Gate: Corporate Social Responsibility and Mining
The University of British Columbia - School of Mining Engineering
Vancouver, Canada | March 2004
www.waynedunn.com
Beyond the Gate: Corporate Social Responsibility and Mining
1. Beyond the Gate
Beyond the Gate: CSR & Mining
UBC Mining Lecture
March 19, 2004
Vancouver, Canada
Presented by:
Wayne Dunn
www.waynedunn.com
info@waynedunn.com
A History of Creating Innovative Partnerships
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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
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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
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4. Beyond the Gate
Presentation Outline
WHY
HOW and HOW NOT
Some Examples
Questions/Discussion
A History of Creating Innovative Partnerships
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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
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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.”
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7. Beyond the Gate
The Mining World Has Changed
• “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-Ngcuka
South Africa Minister of Minerals and Energy
A History of Creating Innovative Partnerships
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8. Beyond the Gate
The Mining World Has Changed
Social issues are
as important as
Technical Issues
A History of Creating Innovative Partnerships
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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/Eurogold
Saskatchewan Uranium Industry
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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
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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
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12. Beyond the Gate
SD/CSR Implementation Challenges
more than a warm fuzzy issue
Spending isn’t the answer
?Results? Framework
Plan System
Solving social
problems Objectives
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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
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14. Beyond the Gate
Some Examples
Placer Dome South Africa
Poverty alleviation
HIV/AIDS
Capacity development
Eldorado Gold - Kisladag
Poverty alleviation
Environmental rehabilitation
Rural development
Capacity development
Porgera (PNG)
Infrastructure
Rural Development.
National HIV/AIDS Strategy
Closure Planning Approach
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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)
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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
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17. Beyond the Gate
Future Development
Current reality Mining Outreach Partnership
Helps to mitigate the social and
economic impact of AIDS
Healthy worker Virtually no support for families in rural villages
leaves village Challenge is too vast for any Financially sustainable through
for employment single company to address fee for service approach
Scalable beyond the mining industry
Training, Support and
Medical Supplies
Family
Assist Family to
Employed Medical Family and Counselling
Worker becomes Care for terminally ill
Worker Repatriation Community and
HIV Positive and
Supporting Terminally Ill Prepared to Integration
Eventually develops
Extended Man Returns Recieve with
AIDS Care Process assists
Family To Village Worker Community
Family member to
Services
Develop alternative
Economic Opportunity
Without intervention
the worker goes home
to overwhelm family who
have no support and no
means of economic sustainabilty
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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)
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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
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20. Beyond the Gate
Porgera Closure Framework
A History of Creating Innovative Partnerships
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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 Focused
Measure, Measure, Measure
Examples South Africa, Turkey, Papua New Guinea
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22. Beyond the Gate
Main Point
CSR is
about
value
creation
not Charity
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This can be edited and revised to whatever you are comfortable with.
This can be edited and revised to whatever you are comfortable with.
This can be edited and revised to whatever you are comfortable with.
In terms of our social responsibility program we welcome the leadership demonstrated by the Minister of Minerals and Energy who said the following.
In terms of our social responsibility program we welcome the leadership demonstrated by the Minister of Minerals and Energy who said the following.
This can be edited and revised to whatever you are comfortable with.
Often CSR is approached by industry, communities and government without a clear framework or plan, or a common understanding of what it involves and hopes to achieve Little is done to elaborate specific objectives, making it difficult to measure results and to know what, if any progress has been made. As a result, progress or success is often measured in terms of dollars spent, without considering the impact of those dollars in meeting CSR objectives. Often spending has little sustainable impact
Often CSR is approached by industry, communities and government without a clear framework or plan, or a common understanding of what it involves and hopes to achieve Little is done to elaborate specific objectives, making it difficult to measure results and to know what, if any progress has been made. As a result, progress or success is often measured in terms of dollars spent, without considering the impact of those dollars in meeting CSR objectives. Often spending has little sustainable impact
This can be edited and revised to whatever you are comfortable with.
This can be edited and revised to whatever you are comfortable with.