Description
Slides from a panel presentation to the 2015 Sustainable Development in the Minerals Industry global conference held in Vancouver.
These slides outline the five key areas of growing societal expectations on the mining industry and discuss how companies and other stakeholders are addressing them in order to secure and maintain social license.
To keep updated on postings and events go to www.csrtraininginstitute.com and sign up for the newsletter. If interested the CSR Knowledge Centre http://bit.ly/CSRknowledge contains a series of short, pragmatic articles on CSR Strategy, Management and related areas.
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Five Keys to Social License Success
1. Five Keys to
Social License Success
Sustainable Development
in the Minerals Industry
Vancouver, Canada
July 14, 2015
Wayne Dunn
Prof. of Practice in CSR (McGill)
President, CSR Training Institute
2. 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!)
3. 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
6. Social License
You can FEEL it
You can SMELL it
But, you can’t SIGN it
You can TASTE it
You can TOUCH it
7. Growing Societal Demands
on 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)
8. 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.
9. 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
10. 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)
11. 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)
12. 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?)
13. 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.)
14. Sustainable Development in the Minerals Industry
Vancouver, 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
15. 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)
16. 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
18. We’re all Trying
But, 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)
20. 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.
www.csrtraininginstitute.com info@csrtraininginstitute.com
The CSR Training Institute is a private, mission driven organization. It began from a lifelong passion
for developing ground-breaking ways that business can serve both shareholders and society.
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.
21. Discussion
For any questions or comments
Wayne Dunn
Prof. of Practice in CSR (McGill)
President, CSR Training Institute
wayne@csrtraininginstitute.com