A short paper providing an overview of a strategic approach to creating value (corporate and community) through a strategic approach to CSR

1. by Wayne Dunn & Associates
Wayne Dunn (left) with a group of children from Rama Caye,
a small island off the Miskito (Atlantic) coast of Nicaragua.
dislocation. Often, issues such as domestic
violence, HIV/AIDS and breakdown
of traditional governance structures follow
mining development closely. Take steps to
mitigate this; find partners to help.
DEVELOP NON-TRADITIONAL
PARTNERSHIPS
Think about other organizations and insti-
tutions (i.e. Development Agencies, World
Bank, United Nations, Development
NGOs) that share your interest in support-
ing community economic and social devel-
Far Beyond opment. Meet with them and find out if
they are active where you are working.
Beads& Trinkets
CREATING VALUE WITH SUSTAINABILITY INVESTMENTS
THE MINING INDUSTRY IS UNDER create both stakeholder and shareholder BE SYSTEMATIC IN YOUR APPROACH
growing pressure to demonstrate that it is value, it isn’t CSR. That doesn’t mean it Understand the development dynamics
creating local social and developmental val- shouldn’t be done, but recognize that it isn’t and priorities of the country and region be-
ue in addition to shareholder value. Many really CSR; it is likely just a handout. fore you begin exploring partnerships and
companies have responded with innovative collaboration. Know where your most
and successful Corporate Social Responsi- COMMUNITY TRANSFORMATION strategic intervention points are and devel-
bility (CSR) programs, helping communi- Effective CSR approaches use the devel- op a partnership, then you can begin mak-
ties and countries to address poverty allevi- opment and operation of a mine as a cata- ing a real difference.
ation, HIV/AIDS and other socio-economic lyst to help a community transform, so it’s
priorities. Many other companies have yet left better off after mine closure. The de- UNDERSTAND THE MARKET AND
to embrace CSR and, if they are doing any- velopment and operation of a mine creates LOCAL COMPETITIVE ADVANTAGE
thing, have more of a beads-and-trinkets ap- opportunities for local businesses and work- Before investing in local economic devel-
proach that throws money at social problems, ers. As early as possible in the development opment initiatives, understand the market
often destroying rather than creating value. cycle of a project, consideration should be and the natural advantages and disadvan-
given to how these opportunities can be tages (geographic, climatic, terrain, infra-
COMMUNITY CONSULTATION utilized to assist the community to move structure). You will be besieged by project
It is important. Do it and do it well. But along its chosen development path. ideas in agriculture, tourism and small
don’t stop there. Community consultation business development. You need to have
will not secure your social licence. Build on ACCEPT THAT THERE WILL BE information to be able to properly assess
it with the strategies below and you have a NEGATIVE IMPACTS them and systematically pick potential
good chance of succeeding. Developing and operating a mine will winners. Conduct a detailed analysis of the
cause families and communities some industry. Remember, without markets
FOCUS ON VALUE CREATION it isn’t sustainable. Work with partners who
CSR needs to focus on value creation. Sus- have technical knowledge and/or
tainable CSR creates value in two forms: financial capacity.
developmental value for local communi-
ties, and financial value for shareholders. Women were the top graduates of the electronics training
Every CSR activity should be vetted program at the award-winning Placer Dome Care Project in
against this value duality. If it does not South Africa.
50 MINING REVIEW | w i n t e r 2004 P h o t o g r a p h s : c o u r t e s y Wa y n e D u n n & A s s o c i a t e s

2. OWN THE INTERFACE WITH UNDERSTAND AND SUPPORT innovation. Before launching any effort ask
COMMUNITIES . . . LOCAL ORGANIZATIONAL CAPACITY yourself these questions:
. . . And don’t be overly dependent on Regardless of how good your CSR programs • If this is successful, what will have
consultants. As much as possible, engage in are, how much money you invest or how changed? How can we measure it?
community consultation and research us- committed your CSR team is, you will have • What else will have changed? How
ing your own staff. Advantages include: only a minimal impact at best on the com- can we measure it?
• Better visibility for the company munity’s sustainability if there isn’t Set targets for how much change will oc-
• The community interface doesn’t sufficient institutional/organizational capac- cur over time and measure progress against
belong to an external company or ity at the local government and civil society those targets. What is important is not that
consultant whose interests might not level. If you bring in an external organization you get the right indicator but that you go
always align with yours to assist with capacity development, make through the discipline of identifying indi-
• It will be much more cost effective sure that you are able to communicate your cators, using them, assessing them and
• You will get your information overall plan to them. then, when necessary, doing it all again.
directly rather than filtered through
a consultant BEGIN CLOSURE PLANNING NOW ENVIRONMENT
• You can communicate your own We suggest developing a rolling plan that Be a responsible environmental steward.
interests and priorities rather than have looks at what the community could realis- All of the above efforts will produce little
them filtered through a third party tically achieve by closure and how it could value if you don’t have a world-class envi-
economically sustain itself. ronmental program. Environmental issues
BRING THE INDUSTRY ALONG can quickly erode social licence and create
Poor CSR performance by others in the MANAGE TO QUANTIFY TARGETS a negative legacy that will follow your com-
national or regional industry will under- “If you can’t measure it, you can’t manage pany around the world for years.
mine your own activities. In many ways it.” Every CSR program should have quan- Contact Wayne Dunn & Associates at: 250-743-
the industry’s social licence to operate is tifiable targets and should be managed ac- 7619; fax 250-743-7659; wayne@wayne
only as strong as its weakest performers. cordingly. This will require discipline and dunn.com; www.waynedunn.com.
Placer Dome.
Excellence in Mining.
Placer Dome operates 17 mines in seven countries around
the world. We are one of the world’s largest and most
successful gold mining companies, and we are headquartered
here in Vancouver.
From the early prospectors and developers who discovered
the gold mines that formed Placer Dome’s foundation, to the
13,000 people around the world who work for us today, all
have contributed to building our reputation for excellence in
finding, building and operating mines.
Suite 1600, Bentall IV Tel: 604.682.7082
1055 Dunsmuir Street Fax: 604.682.7092
Vancouver, British Columbia www.placerdome.com
Canada V7X 1P1
winter 2004 | MINING REVIEW 51