Beyond the PaycheckPlacer Dome’s CSR Program in Southern Africa                                              Presented    ...
Objective• Case study of innovative developmental CSR• Demonstrate application of key CSR principles  – CSR/Sustainability...
Presentation Overview•   Background – how did this get    started•   The Care Project    –Developing and implementing the ...
Background•   1990s saw massive changes in South    African mining industry – over    100,000 jobs lost as the industry   ...
Background (cont)•   In late 1999 after detailed study    management realized that economic reality    dictated major rest...
Families & Communities must benefit from mining PLACER DOME            Slide 6
The Care Project•    A commitment to mitigating the social     and economic impact of retrenchment     at the family and c...
Implications•   The Care project decisions and    commitments had a huge    implication for South Deep    management•   En...
2560 Retrenchees                                          •Mozambique                                          •Lesotho   ...
The Initial 4-Step Plan1.   Consultations with retrenchees in their villages2.   Recruit (from amongst the retrenchees) a ...
Reality was different than we expected•   Retrenchees and their                        Consultations with                 ...
Reality was different than we expected•   Our lack of socio-economic development    experience was an issue•   Partnership...
Meeting the challenges•   Negotiated a public private    partnership with CIDA that    contributed CAD$ 2 million in    ad...
Orientation and Awareness PhaseThe Care                                        1. Registration & Homestead Visits         ...
Some results•   92% of the retrenchees have been    located and registered•   57% of those (1,250) are    economically act...
Chicken raising businessPLACER DOME           Slide 16
Furniture makingPLACER DOME           Slide 17
Unique training programsPLACER DOME          Slide 18
Rice farming in MozambiquePLACER DOME        Slide 19
Spaza (convenience) shopPLACER DOME               Slide 20
And the business value is…•   HIV/AIDS, Black Empowerment, new    mining legislation, social scorecards,    escalating sec...
The Mining World Has Changed•   “We are determined to provide multi-    skilling to workers and assist them to    cope wit...
What’s in it for Placer Dome?  We believe that our ability to effectively   manage social issues is a competitive   advant...
And then there is HIV/AIDS•   RSA ACCOUNTED FOR    NEARLY 1 IN 8 OF THE NEW                Life Expectancy    HIV INFECTIO...
HIV/AIDS Facts•   ESTIMATED THAT 12% OF TOTAL RSA    POPULATION AND 25% OF MINEWORKERS    ARE HIV+•   ALREADY 400,000 PEOP...
HIV/AIDS Impact•   REDUCED ECONOMIC GROWTH RATE – 2010 GDP 20% below a non AIDS    scenario•   REDUCED POPULATION – RSA po...
HIV/AIDS and Gold Mining• $10/oz impact if nothing is  done (5% of production  costs)• ~$3/oz with maximum  intervention• ...
HIV/AIDS ProgrammingOur program – multi- level and holistic•   Education•   Prevention•   Treatment•   Impact mitigation (...
Minesite Program•   TRAINING AND    EDUCATION•   STI & TB TREATMENT•   CONDOM DISTRIBUTION•   PEER EDUCATION•   VOLUNTARY ...
Minesite ProgramPLACER DOME           Slide 30
Current Community Program• AWARENESS AND EDUCATION PROGRAMS• MOBILE CLINIC• CONDOM & FEMIDOM DISTRIBUTION• PERIODIC PRESUM...
Community Mobile Clinic                                COMMUNITY PROGRAMPLACER DOME          Slide 32
And when HIV prevention doesn’t work•   What to do when people can    no longer work?•   They return to their villages    ...
Industry Home Based CareAIDS CAMPAIGN TEAM MINING•   TEBA INFRA-STRUCTURE•   TRAINING OF CARE GIVERS•   SUPPORT STRUCTURE ...
Home Based CarePLACER DOME           Slide 35
INDUSTRY HOME BASED CARE RESULTS                          (Year One)     Milestone                             Target   Ac...
Overview of South Deep AIDS Programming                        SOUTH DEEP Sustainable Development Department            On...
But what happens to children and       families when the breadwinner                 can’t workPLACER DOME            Slid...
HIV/AIDS and Rural Areas•   HIV/AIDS is having a    monumental impact on the    socio-economic well being    of families t...
HIV/AIDS and Rural Areas•   Knowing that their family needs    the income and that there is little    medical care for the...
Where to next?•   The Care project piloted an effective    means of assisting rural families to    become economically act...
Our Vision for the FutureCare Positive                               Care Process• Integrate the Home Based Care    projec...
Care Positive SummaryPLACER DOME              Slide 43
Summary and Discussion• Case study of innovative developmental  CSR• Demonstrate application of key CSR  principles   – CS...
Beyond the PaycheckPlacer Dome’s CSR Program in Southern Africa                                                Presented  ...
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Wayne discusses Corporate Social Responsibility and Corporate Strategy at a Conference on CSR in Africa presented by the Canadian Council on Africa: Calgary, Canada – June 2003

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Wayne discusses Corporate Social Responsibility and Corporate Strategy at a Conference on CSR in Africa presented by the Canadian Council on Africa: Calgary, Canada – June 2003 www.waynedunn.com

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Wayne discusses Corporate Social Responsibility and Corporate Strategy at a Conference on CSR in Africa presented by the Canadian Council on Africa: Calgary, Canada – June 2003

  1. 1. Beyond the PaycheckPlacer Dome’s CSR Program in Southern Africa Presented by Wayne Dunn Corporate Social Responsibility and Business Renaissance in Africa Calgary, Canada June 2003PLACER DOME
  2. 2. Objective• Case study of innovative developmental CSR• Demonstrate application of key CSR principles – CSR/Sustainability Policy – Strategic interventions vs. shotgun approaches – Impact metrics vs. expense metrics – Partnership strategies (financial, operational, technical) – Leadership and leverage PLACER DOME Slide 2
  3. 3. Presentation Overview• Background – how did this get started• The Care Project –Developing and implementing the plan (challenges, partners, learnings) –Business value created• HIV/AIDS – The Crisis and why does it matter – Programs and activities• Where are we going from here• DiscussionPLACER DOME Slide 3
  4. 4. Background• 1990s saw massive changes in South African mining industry – over 100,000 jobs lost as the industry restructured;• 1999 – Placer Dome purchased a 50% interest in South Deep (WAL), a mine located just outside Johannesburg – This was the first major post-apartheid foreign investment in the South African mining industry PLACER DOME Slide 4
  5. 5. Background (cont)• In late 1999 after detailed study management realized that economic reality dictated major restructuring at South Deep• 1/3 of the South Deep workforce (over 2,500) workers were retrenched – Industry standard retrenchment packages consisted of 2 weeks salary per year of service plus access to onsite training• South Deep management compared the industry standard retrenchment package against the commitment to stakeholders inherent in the Placer Dome Sustainability Policy and decided that the workers deserved more – that the commitment went BEYOND THE PAYCHECK PLACER DOME Slide 5
  6. 6. Families & Communities must benefit from mining PLACER DOME Slide 6
  7. 7. The Care Project• A commitment to mitigating the social and economic impact of retrenchment at the family and community level• A target of assisting at least 70% of the retrenchees and their families to become economically active• A commitment to develop HIV/AIDS programming initiatives• A commitment to enable spouses (women) to be able to benefit directly from retrenchment benefits• 2 year time frame and R15 million (CAD$3.6 million) budget was established PLACER DOME Slide 7
  8. 8. Implications• The Care project decisions and commitments had a huge implication for South Deep management• Entire industry watching to see what this Canadian newcomer will do PLACER DOME Slide 8
  9. 9. 2560 Retrenchees •Mozambique •Lesotho •South Africa •Swaziland •Botswana The MineHow to successfully providesocio-economic support acrossremote rural regions of fivecountriesPLACER DOME Slide 9
  10. 10. The Initial 4-Step Plan1. Consultations with retrenchees in their villages2. Recruit (from amongst the retrenchees) a group of 25-30 fieldworkers who would provide frontline support to the retrenchees and their families3. Locate and register the retrenchees4. Provide them with training and support to enable them to become economically activeAll of the above to be done in partnership with MDA, TEBA and other partnersPLACER DOME Slide 10
  11. 11. Reality was different than we expected• Retrenchees and their Consultations with retrenchees Unions were still angry over the contested retrenchment• Retrenchees’ homes were difficult to locate and registration was often problematic Walking to a remote retrenchee homestead in Lesotho PLACER DOME Slide 11
  12. 12. Reality was different than we expected• Our lack of socio-economic development experience was an issue• Partnerships took longer to form and more time to manage than expected• Industry skepticism• Mozambique floods• National borders• Micro-finance• HIV/AIDS• Fieldworker training programs• Retrenchee education levels• Centralized delivery didn’t work• Project was under-financed• We couldn’t do it in two years• Etc. PLACER DOME Slide 12
  13. 13. Meeting the challenges• Negotiated a public private partnership with CIDA that contributed CAD$ 2 million in additional resources• Kept working at getting our partnerships working for everyone• Leading by example gradually demonstrated our commitment to industry, unions and others• Continual revision of plan and project delivery to ensure it met the needs of the recipients PLACER DOME Slide 13
  14. 14. Orientation and Awareness PhaseThe Care 1. Registration & Homestead Visits 2. District Counselling Sessions 3. Open Days/Career Fairs 4. Financial Lifes Skills Training 5. Feedback and Choices SessionProcess Personal Economic Plan Prepared & Assessed Decision on Economic Option Enterprise Stream Employment Stream Business Planning & Preparation Employment Planning & Preparation13-step process 1. Business Orientation a) Introduction to Business 1. Identification of Employment Options 2. Skills Training (Vocational/Agricultural, etc) b) Skills/Product Training 3. Employment Counseling / Placement Delivered 2. Develop Draft Business Plan (to be reviewed with Counselor) (Job search/Resume, etc.) 18 times (plan will contain market assessment, financial, operational and skills upgrading plan) 3. Preparation of Micro-Finance Application Personal Employment Plan Prepared Across Business & Five countries Financing Plan Ongoing Processes Prepared Follow-up sessions/ Evaluation of Micro Finance Application activities to monitor effectiveness of Business Operation interventions 1. Ongoing availability of Technical Assistance and Business Counselling Communication and 2. Ongoing faclitiation of skills training needs consultation with stakeholders (i.e., business, agriculture, vocational, etc.) Continuous improvement process (review feedback; enhance programs, procedures, processes) Retrenchee is Re-Integrated PLACER DOME and Economically Active Slide 14
  15. 15. Some results• 92% of the retrenchees have been located and registered• 57% of those (1,250) are economically active• 65% (1,556) have received financial life skills training• Many of the trainees were women• Care process is becoming an industry standard in RSA and replicated elsewhere in Africa and globally• Development infrastructure and partnerships throughout the five country region PLACER DOME Slide 15
  16. 16. Chicken raising businessPLACER DOME Slide 16
  17. 17. Furniture makingPLACER DOME Slide 17
  18. 18. Unique training programsPLACER DOME Slide 18
  19. 19. Rice farming in MozambiquePLACER DOME Slide 19
  20. 20. Spaza (convenience) shopPLACER DOME Slide 20
  21. 21. And the business value is…• HIV/AIDS, Black Empowerment, new mining legislation, social scorecards, escalating security challenges and a myriad of other issues are the daily facts of mining life. Mines and mining companies must demonstrate an ability to create meaningful value for people, communities and other social stakeholders – and they must do so while meeting increasingly challenging financial targets.• Placer Dome is not a charity and the Care project was not just some sort of corporate philanthropy PLACER DOME Slide 21
  22. 22. 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. Phumzile Mlambo-Ngcuka South Africa Minister of Minerals and EnergyPLACER DOME Slide 22
  23. 23. What’s in it for Placer Dome? We believe that our ability to effectively manage social issues is a competitive advantage as we look towards the future of the industry in South Africa and globally Through programs like Care we are better able to manage risk and are securing our long term future in South Africa and throughout the sub-continent Piet Kolbe Mine Manager, South DeepPLACER DOME Slide 23
  24. 24. And then there is HIV/AIDS• RSA ACCOUNTED FOR NEARLY 1 IN 8 OF THE NEW Life Expectancy HIV INFECTIONS THAT 70 OCCURRED WORLD WIDE IN 65 2000 60• HIV+ PREVALENCE RATE IN WOMEN ATTENDING ANTE- 50 NATAL CLINICS INCREASED 40 40 FROM 0.7% IN 1990 TO 24.8% IN 2001 30• AVERAGE OF 1700 NEW 20 INFECTIONS PER DAY• LIFE EXPECTANCY WILL 10 DECLINE FROM 65 TO 40 0 2001 2011 BY 2011 PLACER DOME Slide 24
  25. 25. HIV/AIDS Facts• ESTIMATED THAT 12% OF TOTAL RSA POPULATION AND 25% OF MINEWORKERS ARE HIV+• ALREADY 400,000 PEOPLE ARE AIDS SICK, AND THIS WILL INCREASE TO 1,4 M BY 2010• YOUNG WOMEN PARTICULARLY VULNERABLE – 23.9% AGED BETWEEN 15 – 49 ALREADY INFECTED AND WILL RISE TO 29.7% BY 2007• AIDS ORPHANS AT PRESENT AMOUNT TO 660,000+ AND WILL RISE TO 1,8M BY 2015• ACCUMULATIVE AIDS DEATHS WILL RISE TO 9M BY 2015PLACER DOME Slide 25
  26. 26. HIV/AIDS Impact• REDUCED ECONOMIC GROWTH RATE – 2010 GDP 20% below a non AIDS scenario• REDUCED POPULATION – RSA population 10M smaller than non AIDS scenario• SKYROCKETING DEMANDS ON PUBLIC HEALTH SYSTEM -• RADICALLY CHANGED PRIVATE SPENDING PATTERNS – to healthcare and funeral costs• IMPACT ON SOCIO-ECONOMIC STABILITY? (orphans) HIV/AIDS is the worst epidemic in human history. At every level it is causing devastation, destruction and suffering throughout Southern Africa This is the reality for business operating in much of Africa today. Nobody can afford to ignore it PLACER DOME Slide 26
  27. 27. HIV/AIDS and Gold Mining• $10/oz impact if nothing is done (5% of production costs)• ~$3/oz with maximum intervention• Impact on social and political stability? PLACER DOME Slide 27
  28. 28. HIV/AIDS ProgrammingOur program – multi- level and holistic• Education• Prevention• Treatment• Impact mitigation (when one has AIDS)• On the minesite• In local communities• In rural areas where our workers come from PLACER DOME Slide 28
  29. 29. Minesite Program• TRAINING AND EDUCATION• STI & TB TREATMENT• CONDOM DISTRIBUTION• PEER EDUCATION• VOLUNTARY COUNSELING AND TESTING (VCT)• WELLNESS PROGRAM• MEDICAL REPATRIATION PLACER DOME Slide 29
  30. 30. Minesite ProgramPLACER DOME Slide 30
  31. 31. Current Community Program• AWARENESS AND EDUCATION PROGRAMS• MOBILE CLINIC• CONDOM & FEMIDOM DISTRIBUTION• PERIODIC PRESUMPTIVE TREATMENT (PPT)• TREATMENT FOR SEXUALLY TRANSMITTED INFECTIONS ( STI) PLACER DOME Slide 31
  32. 32. Community Mobile Clinic COMMUNITY PROGRAMPLACER DOME Slide 32
  33. 33. And when HIV prevention doesn’t work• What to do when people can no longer work?• They return to their villages where there is little or no support• Families are overwhelmed• Tremendous social and economic impact• Addressing it effectively is too much for one company PLACER DOME Slide 33
  34. 34. Industry Home Based CareAIDS CAMPAIGN TEAM MINING• TEBA INFRA-STRUCTURE• TRAINING OF CARE GIVERS• SUPPORT STRUCTURE – QUALIFIED STAFF• MONTHLY MEDICATION• WORK WITH OTHER STAKEHOLDERS (E.G. TRADITIONAL HEALERS)• WORLD BANK DEVELOPMENT INNOVATION AWARD (US$100,000) PLACER DOME Slide 34
  35. 35. Home Based CarePLACER DOME Slide 35
  36. 36. INDUSTRY HOME BASED CARE RESULTS (Year One) Milestone Target Actual Community Care Supporters engaged 87 127 Community Care Training 87 123 People under Home Based Care 696 801 THE PROJECT EXCEEDED TARGETS IN EVERY AREAPLACER DOME Slide 36
  37. 37. Overview of South Deep AIDS Programming SOUTH DEEP Sustainable Development Department On Mine Program Community Program •Voluntary Counseling and testing HIV Negative •Continue working Wellness Program Farm Modified work program •Agricultural work / Environmental Medical repatriation Back to work or Re skilled Home Based Care Benefits Care Positive EC HBC OPPPLACER DOME Slide 37
  38. 38. But what happens to children and families when the breadwinner can’t workPLACER DOME Slide 38
  39. 39. HIV/AIDS and Rural Areas• HIV/AIDS is having a monumental impact on the socio-economic well being of families throughout rural Southern Africa• Workers who used to support extended families of 10-20 people are becoming too sick to work and are coming home, literally to die PLACER DOME Slide 39
  40. 40. HIV/AIDS and Rural Areas• Knowing that their family needs the income and that there is little medical care for them if they go home, these workers are staying on the job as long as possible• In addition to the human tragedy, this is having a severe impact on business productivity• There are solid business and humane reasons to address this problem• But, economies of scale are needed PLACER DOME Slide 40
  41. 41. Where to next?• The Care project piloted an effective means of assisting rural families to become economically active and has an existing infrastructure and management system in place• Industry Home Based Care project piloted a cost effective, fee for service, program to support medically repatriated workers and their families PLACER DOME Slide 41
  42. 42. Our Vision for the FutureCare Positive Care Process• Integrate the Home Based Care project with the Care process and + launch as a fee for service based program to address the social and Home Based economic impacts that AIDS is Care having on rural families and communities =• Start with the mining industry but design the infrastructure and Care Positive management systems to enable participation by other industries, governments and donor community stakeholders PLACER DOME Slide 42
  43. 43. Care Positive SummaryPLACER DOME Slide 43
  44. 44. Summary and Discussion• Case study of innovative developmental CSR• Demonstrate application of key CSR principles – CSR/Sustainability Policy – Strategic interventions vs. shotgun approaches – Impact metrics vs. expense metrics – Partnership strategies (financial, operational, technical) – Leadership and leveragePLACER DOME Slide 44
  45. 45. Beyond the PaycheckPlacer Dome’s CSR Program in Southern Africa Presented by Wayne Dunn wayne@waynedunn.com Corporate Social Responsibility and Business Renaissance in Africa Calgary, Canada June 2003PLACER DOME
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