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Global Perspectives on CSR
Dealing with growing social demands
Wayne Dunn
CSR Training Institute
info@csrtraininginstitute.com
www.csrtraininginstitute.com
BC Mining Forum 2015
Friday March 6, 2015
Vancouver, Canada
BC Mining Forum 2015
Vancouver, Canada
Global Perspective
dealing with Growing Social Demands
Presentation Outline
ā€¢ What are the growing social demands?
ā€¢ Consultation (formal/informal, history, structure, FPIC,
closure)
ā€¢ Access to land (who/how approved)
ā€¢ Benefit sharing (whatā€™s in it for everyone)
ā€¢ Project approval (who approves? when? how?)
ā€¢ What is being done? (Industry, government, others)
ā€¢ Global, then BC example
ā€¢ Discussion
BC Mining Forum 2015
Vancouver, Canada
Global Perspective
dealing with Growing Social Demands
2015 not an easy time
for the mining industry
ā€¢ Bottom of the cycle (and
a long bottom?)
ā€¢ High costs
ā€¢ Low prices
ā€¢ Increasing social
demands
ā€¢ Increasing environmental
requirements
ā€¢ Artisanal mining
ā€¢ Expanding regulatory
requirements
ā€¢ Expanding compliance
requirements &
expectations
ā€¢ How to meet social,
environmental &
shareholder expectations
Need to innovate
Need to collaborate
BC Mining Forum 2015
Vancouver, Canada
Global Perspective
dealing with Growing Social Demands
Has the World Changed?
1990s
ā€¢ NGOs
ā€¢ Communications
ā€¢ National Governments
ā€¢ Business
Today
ā€¢ NGOs
ā€¢ Communications
ā€¢ National Governments
ā€¢ Business
Society expects more
AND
has more power to force change
BC Mining Forum 2015
Vancouver, Canada
Global Perspective
dealing with Growing Social Demands
CSR in the OLDEN DAYS (cont)
Suddenly
communities could
influence how, or
if, a project could
proceed.
Business had a
new challenge to
figure out
Answers werenā€™t
easy or obvious
Community Relations Management
Framework
Plan
?Results?
System
BC Mining Forum 2015
Vancouver, Canada
Global Perspective
dealing with Growing Social Demands
Growing Social Demands
Exploration ļƒ  Closure
ā€¢ Consultation (formal/informal,
history, structure, FPIC, closure)
ā€¢ Access to land (who/how
approved)
ā€¢ Benefit sharing (whatā€™s in it for
everyone)
ā€¢ Project approval (who approves?
when? how?)
ā€¢ Environmental permitting
and monitoring
BC Mining Forum 2015
Vancouver, Canada
Global Perspective
dealing with Growing Social Demands
Consultation
ā€¢ Formal/Informal (relationship history
across ownership changes)
ā€¢ Structured Processes (who leads, who
participates, roles & responsibilities, end points)
ā€¢ Starting point (exploration, permitting,
construction)
ā€¢ ICMM Position Paper on working
with Indigenous Peoples
http://bit.ly/ICMMFPIC
ā€¢ defines FPIC as process based on Good Faith
Negotiation through which Indigenous Peoples
can give or withhold consent
ā€¢ commits members to work to obtain the
consent of Indigenous Peoples
ā€¢ includes supporting commitments that apply to
most interactions with indigenous communities
ā€¢ defines how to engage where government has
primary responsibility
ā€¢ addresses how to move forward where
differences of opinion arise.
BC Mining Forum 2015
Vancouver, Canada
Global Perspective
dealing with Growing Social Demands
Land Access
ā€¢ Role of the State (strength of land
cadastre systems)
ā€¢ Role of Community (who leads,
who participates, roles & responsibilities,
end points,)
ā€¢ Role of Landowner
ā€¢ Process (purchase, lease, negotiation,
relocation, pricing, etc.)
ā€¢ Dispute Resolution
BC Mining Forum 2015
Vancouver, Canada
Global Perspective
dealing with Growing Social Demands
Benefit Sharing
ā€¢ Compressive Community
Development Agreements
(structured frameworks, bi-lateral, tri-
lateral/multi-dept, multi-lateral, ODA
involvement)
ā€¢ Local Content (employment,
procurement, training)
ā€¢ Local
Industry/Diversification
ā€¢ Infrastructure (direct funded, co-
funded, tax credits [Works for
Investment])
ā€¢ Resource Access (water, small
scale mining, agriculture)
BC Mining Forum 2015
Vancouver, Canada
Global Perspective
dealing with Growing Social Demands
Project Approval
ā€¢ Informal (local, national,
international pressures: Tambo
Grande)
ā€¢ Structured Local
Processes (Binding
Referendum/Honduras)
ā€¢ Informed Processes
(State decision informed by local
input)
BC Mining Forum 2015
Vancouver, Canada
Global Perspective
dealing with Growing Social Demands
New Gold @ Blackwater & New Afton
Overarching negotiated agreements with local First Nations
ā€¢ Consultation ā€“ exploration to closure
ā€¢ Formal & informal, guided by
ā€¢ Formal agreements with Indigenous interests
ā€¢ Statutory and regulatory requirements.
ā€¢ Corporate Policy
ā€¢ Voluntary compliance standards
ā€¢ Community Consultation Committee
ā€¢ Land Access
ā€¢ Regulatory requirements
ā€¢ Evolving aboriginal title issues
ā€¢ Corporate policy
ā€¢ Supported by ongoing Indigenous consultation
BC Mining Forum 2015
Vancouver, Canada
Global Perspective
dealing with Growing Social Demands
New Gold @ Blackwater & New Afton
ā€¢ Benefit Sharing (Indigenous/non Indigenous)
ā€¢ Support to local priorities and initiatives
ā€¢ Education and training (supported locally and on province-
wide initiatives like Underground Miner Training, Aboriginal
Mentoring & Training, Scholarships, etc.)
ā€¢ Employment (23% aboriginal employment in 2013)
ā€¢ Procurement ($20 million Indigenous procurement in 2013)
ā€¢ Direct payments from New Gold and the Province to local
First Nations
ā€¢ Project Approval
ā€¢ Regulatory & statutory process
ā€¢ Negotiated agreements with local Indigenous communities
BC Mining Forum 2015
Vancouver, Canada
Global Perspective
dealing with Growing Social Demands
Relationships & Trust
ā€¢ Crosscutting themes
(relationship history across
ownership changes)
ā€¢ History of
relationships (reputational
capital of project and owners ā€“
new owners donā€™t reset
reputational liabilities)
ā€¢ Transparency and
legitimacy of
processes (environment,
permitting & approvals)
BC Mining Forum 2015
Vancouver, Canada
Global Perspective
dealing with Growing Social Demands
What is being done
ā€¢ National policies and regulations
ā€¢ Company and industry wide initiatives
ā€¢ IFI support and multi-lateral technical assistance
and support
ā€¢ Africa Mining Vision/Country Mining Vision
ā€¢ ODA support, co-funding
ā€¢ Development collaboration (NGO, industry,
government)
BC Mining Forum 2015
Vancouver, Canada
Global Perspective
dealing with Growing Social Demands
National Policies & Legislation
ā€¢ Regulatory structures to facilitate meeting growing
social demands
ā€¢ Consultation
ā€¢ Access to land
ā€¢ Benefit sharing
ā€¢ Project approval
BC Mining Forum 2015
Vancouver, Canada
Global Perspective
dealing with Growing Social Demands
Increasing mandatory and
voluntary compliance
ā€¢ ICMI - International Cyanide Management
Institute (ICMI)
ā€¢ Conflict Free Gold Standard
ā€¢ Voluntary Principles on Security and Human
Rights
ā€¢ EITI
ā€¢ Global Reporting Initiative
ā€¢ Voluntary Principles
ā€¢ ICMM
ā€¢ IFC
ā€¢ Equator Principles
ā€¢ ILO
ā€¢ Accountability
ā€¢ Many, many more
BC Mining Forum 2015
Vancouver, Canada
Global Perspective
dealing with Growing Social Demands
Social value imperative
applies across industry, sector & geography
BC Mining Forum 2015
Vancouver, Canada
Global Perspective
dealing with Growing Social Demands
Mining Schools Hi Tech!
ā€¢ Long way to go,
Yes
ā€¢ But mining has
come a very
long way in last
15 years!
ā€¢ Other industries
see mining as a
leader/exemplar
BC Mining Forum 2015
Vancouver, Canada
Global Perspective
dealing with Growing Social Demands
Presentation Outline
ā€¢ What are the growing social demands?
ā€¢ Consultation (formal/informal, history, structure, FPIC,
closure)
ā€¢ Access to land (who/how approved)
ā€¢ Benefit sharing (whatā€™s in it for everyone)
ā€¢ Project approval (who approves? when? how?)
ā€¢ What is being done? (Industry, government, others)
ā€¢ Global, then BC example
ā€¢ Discussion
BC Mining Forum 2015
Vancouver, Canada
Global Perspective
dealing with Growing Social Demands
Questions, Discussion & Followup
Follow-up
Wayne Dunn
President & Founder
CSR Training Institute
Professor of Practice in CSR @ McGill
wayne@csrtraininginstitute.com
www.csrtraininginstitute.com

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Global Perspectives on CSR in the Extractive Sector

  • 1. Global Perspectives on CSR Dealing with growing social demands Wayne Dunn CSR Training Institute info@csrtraininginstitute.com www.csrtraininginstitute.com BC Mining Forum 2015 Friday March 6, 2015 Vancouver, Canada
  • 2. BC Mining Forum 2015 Vancouver, Canada Global Perspective dealing with Growing Social Demands Presentation Outline ā€¢ What are the growing social demands? ā€¢ Consultation (formal/informal, history, structure, FPIC, closure) ā€¢ Access to land (who/how approved) ā€¢ Benefit sharing (whatā€™s in it for everyone) ā€¢ Project approval (who approves? when? how?) ā€¢ What is being done? (Industry, government, others) ā€¢ Global, then BC example ā€¢ Discussion
  • 3. BC Mining Forum 2015 Vancouver, Canada Global Perspective dealing with Growing Social Demands 2015 not an easy time for the mining industry ā€¢ Bottom of the cycle (and a long bottom?) ā€¢ High costs ā€¢ Low prices ā€¢ Increasing social demands ā€¢ Increasing environmental requirements ā€¢ Artisanal mining ā€¢ Expanding regulatory requirements ā€¢ Expanding compliance requirements & expectations ā€¢ How to meet social, environmental & shareholder expectations Need to innovate Need to collaborate
  • 4. BC Mining Forum 2015 Vancouver, Canada Global Perspective dealing with Growing Social Demands Has the World Changed? 1990s ā€¢ NGOs ā€¢ Communications ā€¢ National Governments ā€¢ Business Today ā€¢ NGOs ā€¢ Communications ā€¢ National Governments ā€¢ Business Society expects more AND has more power to force change
  • 5. BC Mining Forum 2015 Vancouver, Canada Global Perspective dealing with Growing Social Demands CSR in the OLDEN DAYS (cont) Suddenly communities could influence how, or if, a project could proceed. Business had a new challenge to figure out Answers werenā€™t easy or obvious Community Relations Management Framework Plan ?Results? System
  • 6. BC Mining Forum 2015 Vancouver, Canada Global Perspective dealing with Growing Social Demands Growing Social Demands Exploration ļƒ  Closure ā€¢ Consultation (formal/informal, history, structure, FPIC, closure) ā€¢ Access to land (who/how approved) ā€¢ Benefit sharing (whatā€™s in it for everyone) ā€¢ Project approval (who approves? when? how?) ā€¢ Environmental permitting and monitoring
  • 7. BC Mining Forum 2015 Vancouver, Canada Global Perspective dealing with Growing Social Demands Consultation ā€¢ Formal/Informal (relationship history across ownership changes) ā€¢ Structured Processes (who leads, who participates, roles & responsibilities, end points) ā€¢ Starting point (exploration, permitting, construction) ā€¢ ICMM Position Paper on working with Indigenous Peoples http://bit.ly/ICMMFPIC ā€¢ defines FPIC as process based on Good Faith Negotiation through which Indigenous Peoples can give or withhold consent ā€¢ commits members to work to obtain the consent of Indigenous Peoples ā€¢ includes supporting commitments that apply to most interactions with indigenous communities ā€¢ defines how to engage where government has primary responsibility ā€¢ addresses how to move forward where differences of opinion arise.
  • 8. BC Mining Forum 2015 Vancouver, Canada Global Perspective dealing with Growing Social Demands Land Access ā€¢ Role of the State (strength of land cadastre systems) ā€¢ Role of Community (who leads, who participates, roles & responsibilities, end points,) ā€¢ Role of Landowner ā€¢ Process (purchase, lease, negotiation, relocation, pricing, etc.) ā€¢ Dispute Resolution
  • 9. BC Mining Forum 2015 Vancouver, Canada Global Perspective dealing with Growing Social Demands Benefit Sharing ā€¢ Compressive Community Development Agreements (structured frameworks, bi-lateral, tri- lateral/multi-dept, multi-lateral, ODA involvement) ā€¢ Local Content (employment, procurement, training) ā€¢ Local Industry/Diversification ā€¢ Infrastructure (direct funded, co- funded, tax credits [Works for Investment]) ā€¢ Resource Access (water, small scale mining, agriculture)
  • 10. BC Mining Forum 2015 Vancouver, Canada Global Perspective dealing with Growing Social Demands Project Approval ā€¢ Informal (local, national, international pressures: Tambo Grande) ā€¢ Structured Local Processes (Binding Referendum/Honduras) ā€¢ Informed Processes (State decision informed by local input)
  • 11. BC Mining Forum 2015 Vancouver, Canada Global Perspective dealing with Growing Social Demands New Gold @ Blackwater & New Afton Overarching negotiated agreements with local First Nations ā€¢ Consultation ā€“ exploration to closure ā€¢ Formal & informal, guided by ā€¢ Formal agreements with Indigenous interests ā€¢ Statutory and regulatory requirements. ā€¢ Corporate Policy ā€¢ Voluntary compliance standards ā€¢ Community Consultation Committee ā€¢ Land Access ā€¢ Regulatory requirements ā€¢ Evolving aboriginal title issues ā€¢ Corporate policy ā€¢ Supported by ongoing Indigenous consultation
  • 12. BC Mining Forum 2015 Vancouver, Canada Global Perspective dealing with Growing Social Demands New Gold @ Blackwater & New Afton ā€¢ Benefit Sharing (Indigenous/non Indigenous) ā€¢ Support to local priorities and initiatives ā€¢ Education and training (supported locally and on province- wide initiatives like Underground Miner Training, Aboriginal Mentoring & Training, Scholarships, etc.) ā€¢ Employment (23% aboriginal employment in 2013) ā€¢ Procurement ($20 million Indigenous procurement in 2013) ā€¢ Direct payments from New Gold and the Province to local First Nations ā€¢ Project Approval ā€¢ Regulatory & statutory process ā€¢ Negotiated agreements with local Indigenous communities
  • 13. BC Mining Forum 2015 Vancouver, Canada Global Perspective dealing with Growing Social Demands Relationships & Trust ā€¢ Crosscutting themes (relationship history across ownership changes) ā€¢ History of relationships (reputational capital of project and owners ā€“ new owners donā€™t reset reputational liabilities) ā€¢ Transparency and legitimacy of processes (environment, permitting & approvals)
  • 14. BC Mining Forum 2015 Vancouver, Canada Global Perspective dealing with Growing Social Demands What is being done ā€¢ National policies and regulations ā€¢ Company and industry wide initiatives ā€¢ IFI support and multi-lateral technical assistance and support ā€¢ Africa Mining Vision/Country Mining Vision ā€¢ ODA support, co-funding ā€¢ Development collaboration (NGO, industry, government)
  • 15. BC Mining Forum 2015 Vancouver, Canada Global Perspective dealing with Growing Social Demands National Policies & Legislation ā€¢ Regulatory structures to facilitate meeting growing social demands ā€¢ Consultation ā€¢ Access to land ā€¢ Benefit sharing ā€¢ Project approval
  • 16. BC Mining Forum 2015 Vancouver, Canada Global Perspective dealing with Growing Social Demands Increasing mandatory and voluntary compliance ā€¢ ICMI - International Cyanide Management Institute (ICMI) ā€¢ Conflict Free Gold Standard ā€¢ Voluntary Principles on Security and Human Rights ā€¢ EITI ā€¢ Global Reporting Initiative ā€¢ Voluntary Principles ā€¢ ICMM ā€¢ IFC ā€¢ Equator Principles ā€¢ ILO ā€¢ Accountability ā€¢ Many, many more
  • 17. BC Mining Forum 2015 Vancouver, Canada Global Perspective dealing with Growing Social Demands Social value imperative applies across industry, sector & geography
  • 18. BC Mining Forum 2015 Vancouver, Canada Global Perspective dealing with Growing Social Demands Mining Schools Hi Tech! ā€¢ Long way to go, Yes ā€¢ But mining has come a very long way in last 15 years! ā€¢ Other industries see mining as a leader/exemplar
  • 19. BC Mining Forum 2015 Vancouver, Canada Global Perspective dealing with Growing Social Demands Presentation Outline ā€¢ What are the growing social demands? ā€¢ Consultation (formal/informal, history, structure, FPIC, closure) ā€¢ Access to land (who/how approved) ā€¢ Benefit sharing (whatā€™s in it for everyone) ā€¢ Project approval (who approves? when? how?) ā€¢ What is being done? (Industry, government, others) ā€¢ Global, then BC example ā€¢ Discussion
  • 20. BC Mining Forum 2015 Vancouver, Canada Global Perspective dealing with Growing Social Demands Questions, Discussion & Followup Follow-up Wayne Dunn President & Founder CSR Training Institute Professor of Practice in CSR @ McGill wayne@csrtraininginstitute.com www.csrtraininginstitute.com