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Peter Pichler Presentation Rio Tinto social / community development approach

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Ensuring Rio Tinto´s coherent set of architectural elements for social competency in Mozambique operations

Ensuring Rio Tinto´s coherent set of architectural elements for social competency in Mozambique operations

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  • Part of the JD provided by HRDuring Interview´s the overarching Role for RTCM was noted
  • It also has to be said that those in the mining industry who commission suchexperts often have a limited understanding of anthropology and sociology. Thebest report in the world is only as good as the commissioning organization'sability to understand it. (Harvey)
  • Harvey: In the absence of such understanding, the mining industry and miningprofessionals will find themselves greatly disadvantaged. For instance, in thedebate (what debate?) on how best to conduct Social Impact Analysis (SIA), themining industry has virtually surrendered the field to consultants andacademics. SIA is seen by industry as an adjunct to Environmental ImpactAnalysis, something to be tolerated for the sake of compliance. Hence, SIA hasevolved with little industry input, and has no standard methodology, no objectivemonitoring of predictions, and only rarely defined performance objectives forinvolved parties. SIA timeframes and agendas are imposed on communities byresearchers, and to my knowledge there has never been a retrospective reviewof a mine development SIA. Such a review would find that social scienceexperts have not necessarily made any better guesses about developmentramifications than locally affected people. But industry can hardly complain, forthe most part its executives cannot even speak the language of SIA.

Transcript

  • 1. Communities work in Rio Tinto Coal Mozambique Social / Community Development Our Approach 05 August 2011
  • 2. Proposed Role of Social / Community Development Manager • Effective delivery of social development / community programme by managing the development of the programme content and monitoring implementation in the field • To ensure self reliance of Communities we work with and sustainability of programs we implement. • Overall responsibility for the delivery of Rio Tinto Coal Mozambique projects within time, cost, quality, safety and environmental criteria and in terms of the Rio Tinto Business Conduct and Ethics Policy • Overall decision making about Communities relationships, programs and work activities to the needs of the business
  • 3. What we need to do 1. Adherance to Rio Tintos community standards
  • 4. Ensuring Rio Tinto´s coherent set of architectural elements for social competency in Mozambique operations  Adhering to business unit community polices that are consistent with each other and with local circumstance;  What needs to be done - Step 1  Develop Baseline Community Assessment With different sampling methods covering core areas as well as Wider country context Provincial context Mining districts context The wider context to understand the impact , i.e. migration  Ensure that we embrace values-based principles called 'The Way We Work‟ that guide operations interface with their workforces, their neighbors' and the wider world;  What need to be done - Step 2  Conclude Social Risk Analysis based on BS  Develop and annually update a 5-year business unit community plan that encompass defined local objectives and timeframes  What needs to be done Step - 3  Prepare a Multi Year (5 years with annually review) Plan
  • 5. rebutting allegations that the business has caused harm to help avoiding situations where the business is blamed for something that would have happened regardless of its presence or absence Identifying social changes that are imminent or underway Why Baseline Community Assessment Identifying economic and cultural dynamics that pre-existed In order to make claims to be improving communities livelihoods
  • 6. Building Partnership We promote active, gender sensitive partnerships at international, national, regional and local levels. These are based on mutual commitment, trust and openness. • We need to assess the presence of and proactively engage with other organizations, universities, UN organizations, WB/IFC, non government organizations (NGOs) or other community groups; regional organizations, such as environmental, wildlife, flora & fauna groups, civil society groups, welfare groups and the like; promoting their capacity for partnerships. • We need to setup a gender sensitive community skills base with regard to trades; economic opportunities, capacity of local people to take up employment at the operation; the extent and need for training to assist maximizing regional and local employment. • We need to gather information on the quality and capacity of regional and local suppliers and contractors. We need to support small business development, e.g. training programs, business incubators, and advisory services.
  • 7. September 2011 to March 2012 Plan Development of new Strategy Participatory / consultative process, community and stakeholder consultation Team setup Office setup Competency assessment of current staff, identification of gaps, hiring of qualified staff Identifying location, purchase of necessery items Mar 2012 Participatory / consultative planning process, Budgeting Feb 2012 Multi Year Communities Plan Jan 2012 Community consultation, Data interpretation, participatory Risk assessment, prioritisation Dec 2 011 Community Risk Assessment Nov 2011 ToRs, Tender , Award, Survey, Community consultation, Data processing, draft Report, Final Report Oct 2011 Baseline Communities Assessment Sept 2011 Milestones Aug 2011 My aim - goals Roll out Capacity building
  • 8. Current Situation Gaps Proposed way forward A existing Corporate Social Responsibility Policy (version 1.0 from 01.03.2010), mainly designed for Benga, was not disseminated throughout programs Develop and align Strategy, policy and practice with global Rio Tinto standards and international acknowledged best practises Strategy: What is our strategy? Current strategy not broadly disseminated Once approved dissemination of strategy to all internal and external stakeholders Multi year planning with set aims contributing to Mozambican poverty reduction strategy and the MDGs How do we intend to achieve our objectives? KPMG was engaged to draft a SDP (5/2001) and came up with objectives/strategic areas we should focus on, this document was produced for Benga, a broader document embracing all operations doesn't exist. No objectives set for broader business units, ad hoc decisions and How do we deal with competitive pressure? No collaboration with other Mining houses like Vale or others. No Informal and formal meetings apart of GoM joint meetings development of business objectives and local applicable social performance indicators Setting up of a regular meeting with other Mining houses and large companies like MLT in the Region
  • 9. Current Situation Gaps Proposed way forward Currently no overarching structure, each Department has different structures in place Define organisational Structure Lack of communication and common standards between teams Define reporting structure Lack of guidance and feeling of left alone In order to ensure peak performance in our SD team we need to increasing team unity by clear set goals and progress together. Structure: How is the company/team divided? Separate teams with no or very little interaction What is the hierarchy? Benga team reports to the Benga General Manager, other teams reporting directly to Australia How do the various departments coordinate activities? A Steering committee was leading Benga but not other teams How do the team members organize and align themselves? Poor long term organization Is decision making and controlling centralized or decentralized? Is this as it should be, given what we're doing? Where are the lines of communication? Explicit and implicit? As per Benga it is centralized for others since reporting to Australia not clear
  • 10. Current Situation Current Situation Gaps Gaps Systems: Systems: the daily activities and procedures that staff Where are the controls and how are No monitoring team in place members engage in to get they monitored and evaluated? the job done. What internal rules and processes Shared Values: on track? does the team use to keepcalled "superordinate goals" when the Committee Through SDCmodel was first Dissolved, vacuum in decision developed, these are the core making values of the company that are evidenced in the corporate culture and the general work ethic. Proposed How to fill way forward Develop Standard Operating Procedures for SD in accordance with Rio Tinto´s policies and Adherence with Mozambican laws Replace the current not functional Sustainable Development Committee or restructure decision making Process Style: the style of leadership adopted. Shared Values: What are the core values? Riversdale due to different structures core values were not clear like in Rio Tinto What is the corporate/team culture? How strong are the values? What are the fundamental values that the company/team was built on? Lack of understanding how our organization frames strategies and short to long term plans for growing and sustaining the business. Awareness raising and broad dissemination of Rio Tinto‟s core values “the way we work”
  • 11. Current Situation Gaps Proposed way forward Skills: What are the strongest skills represented within the team? All sites will use the Rio Tinto Communities competencies to build and develop fit-for purpose Communities capability. Are there any skills gaps? What is the team known for doing well? Do the current employees/team members have the ability to do the job? Training will be provided to Communities professionals and other employees according to individual and business needs, aligned with routine career development processes. How are skills monitored and assessed? Style: How participative is the management/leadership style? How effective is that leadership? Do employees/team members tend to be competitive or cooperative? Are there real teams functioning within the organization or are they just nominal groups? Development and effective management of business-driven Communities work
  • 12. Current Situation Gaps Proposed way forward Skills gap Training staff No M&E staff Database not well managed Hiring of M&E staff and all sites will develop local Communities targets and performance indicators that meet the requirements of the Rio Tinto global Communities target. Staff: What positions or specializations are represented within the team? RAP Advisor LVH Advisor PP partnerships What positions need to be filled? M&E staff Database Manager Are there gaps in required competencies? some lack knowledge, skills, experience required to effectively perform the role
  • 13. Putting sociology before geology • The need of Specific Professional Competencies As Communities work continues to grow in complexity the competencies required to deliver on our Communities objectives evolve accordingly. We need to be confident that we have the requisite capabilities to design and deliver multi-year Communities plans that are integrated with operational planning and address strategic business needs. As a business driver, Communities capability needs to reside „inhouse‟! (B.E. Harvey) Draft Proposal (may be revised after competency assessment and Strategy development) for a overarching Social Development / Community Development Team Structure within Rio Tinto Mozambique
  • 14. Key to Develop new Strategy in Rio Tinto Coal Mozambique: Understanding How Change Happens 1. What is the change we want to see? 2. How is the change most likely to happen? 3. What can we learn from other Rio Tinto operations in other parts of the World? 4. What can Rio Tinto contribute to it happening & what will be the key relationships required?
  • 15. Millennium Development Goals Rio Tinto is committed to playing our part in the achievement of the Millennium Development Goals (MDGs) • Since 2009 our communities global target has been pegged explicitly off the MDGs. The target states - all operations to have locally appropriate, publicly reported social performance indicators that demonstrate a positive contribution to the economic development of the communities and regions where we work, consistent with the Millennium Development Goals, by 2013.  Need to aligned Rio Tinto´s Mozambican SD/CD strategies and focus areas to contribute to the MDGs
  • 16. LIVELIHOOD SECURITY MODEL ASSETS •Natural Resources Natural Capital Human Capital •Institutions (resources) (Livelihood Capabilities) •Infrastructur e Social Capital Economic Capital (Claims & (Stores & Resources) Access) Production & Income Activities CONTEXT •Nutrition •Water Consumption Activities HOUSEHOLD •Demography SHOCKS & STRESSES •Food •Health •History •Economic, Cultural and Political Environment Security of: •Shelter •Education •Community Participation •Personal Safety Processing, Exc hange, Marketi ng Activities LIVELIHOOD STRATEGY After Swift, 1989; Drinkwater, 1994; Carney, 1998; Frankenberger and Drinkwater, 1999 LIVELIHOOD OUTCOMES
  • 17. An Approach - The Gender oriented Entrepreneurship Promotion, Swiss SDC
  • 18. Job Description - Contract Peter Pichler Develop the overall social development component and manage all participatory steps of its development Enlist the cooperation of government bodies, community based organizations and sponsors Act as a link between communities, local government, other statutory bodies and Riversdale Mediate between opposing parties Challenge inappropriate behavior and political structures where decisions are not in the best interests of all stakeholders Co-ordinate capacity building and joint working initiatives with communities and other relevant stakeholders Help to raise public awareness on issues relevant to the community Provide leadership and coordination of projects Assist with the recruiting of staff to work on community projects Plan, attend and coordinate community meetings and events Oversee the practical arrangements for ensuring that people from all sections of the community are actively involved and participating and contributing to Community development Network to build contacts and fundraising Assist community to conduct research to find other external funding opportunities to upgrade/expand existing social development projects
  • 19. Help communities to become self-sustaining by assisting them to find markets/clients for product and services resulting from the social development projects implemented Undertake research where applicable to develop innovative solutions to community issues/problems Manage and report on projects against agreed project schedule Serve as a member of the Riversdale Sustainable Development committee Develop and implement community and government relations strategies and programs that support and further the business goals of Riversdale. Systematic identification and documentation of community issues and matters Supervise and ensure the coordination and integration of the social development activities carried out at the project level Coordinate the social development activities carried out as part of (1) resettlement plans; (2) obligations imposed by the mineral titles, applicable legislation and the mining contract(s) and corporate social responsibility Oversee the financial management of projects as per the approved budget Develop annual and five-year implementation plans and budgets for social development initiatives Evaluate, prioritize and monitor implemented social development projects through the study phase to construction and ultimately mining operations. Develop implementation plans and budget for social development initiatives in coordination with the people in the field
  • 20. Promote the participation of local communities in the design, implementation and management of project activities Evaluate and monitor existing implemented social development projects Actively liaise with local government agencies, NGO‟s and community based organisations in order to ensure their involvement in social development initiatives Provide guidance or mentorship to and facilitate the professional development of the social development team in the field Coordinate the process to find external training providers to train community members working on social development projects Establish and maintain accurate and timely reporting standards throughout the project Ensure that an achievable programme is set and maintained for social development projects Prepare a Project Execution Plan Ensure that quality assurance, safety, HR/IR environmental programs are established and maintained by all parties Undertake field visits to follow up the implementation of social development activities Branding Review policies Align policy and practice with global standards Fund raising Develop partnerships that are of strategic value
  • 21. List of Documents and Bibliography: • RT HSEC Standard B11 - HIV/AIDS December 2008 • RT Baseline communities assessments guidance, Vers. 1.2, 5 September 2007 • Sociology Before Geology, the Development of Social Competencies in Rio Tinto, Bruce E Harvey • RT User guide, 2010 v1.3, Communities Competencies • RT Communities FLP Module 2 – Africa • RIO TINTO_genderguide • RIO TINTO Livelihoods • RT The_way_we_work_2009 • Final Riversdale SDP Document, Benga Coal Mine Project, Moatize District, Tete Province KPMG 2009 • Conference paper MINING, GENDER AND SUSTAINABLE LIVELIHOODS, Nov2008 J. Parmenter • Mining Community_Investment_Indicators_Table, CommDev & CES, IFC, Sept 2007 • Pathways out of Poverty in Rural Mozambique, 2008, Benedito Cunguara e.a. • Riversdale Concept Paper Sustainable Livelihoods Program for Benga Mining Community, P.Pichler 2011 • Riversdale Corporate Social Responsibility Policy, Version 1, 01.03.2010 • Gendering the Field: Towards Sustainable Livelihoods for Mining Communities, Sara Bice e.a. • Creating Empowered Communities: Gender and Sustainable Livelihoods in a Coal Mining Indonesia, Petra Mahy • In search for sustainability and improved livelihoods in mining areas, Ghana 2011, Yeboah, Stephen • Care International, PHLS Unit, The Sustainable Household Livelihood Approach, various documents
  • 22. Thanks! Be that Change!