Current CSR developments in the mining sector in Peru


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Current CSR developments in the mining sector in Peru

  1. 1. Presented to the CSR in Mining in Latin America Conference Victoria. British Columbia October 2009
  2. 2. CSR in Peru - The Past <ul><li>We, the [mining] entrepreneurs, have done it wrong before, but at that time we thought it was the right thing to do. </li></ul><ul><li>(while referring to seek communities favor with philanthropy and short term gifts) </li></ul><ul><li>Ivo Ucovich, president local mining company in Peru </li></ul>
  3. 3. CSR in Peru - The Present <ul><li>“ An important change in the mindset of the [mining] entrepreneur is that is aware of globalization. The companies have to compete in a global scale…” “My purpose [as a mining business person] is to obtain a financial, social and environmental profit” </li></ul><ul><li>Augusto Baertl, Peruvian mining entrepreneur, 2008 </li></ul>
  4. 4. CSR inPeru – NGOs View <ul><li>it is “…hard – arguably impossible – to point to any locality in Peru where the expansion of mining has led to significant human development for the local population. While this does not necessarily imply that future mining will have the same effects, it makes the ‘marketing’ of new projects problematic” </li></ul><ul><li>Anthony Bebbington, British social researcher </li></ul>
  5. 5. CSR in PERUMIN 2009 <ul><li>Arequipa </li></ul><ul><li>7000 participants </li></ul><ul><li>Trade Show (Canadian Pavilion) </li></ul><ul><li>Technical Sessions </li></ul><ul><ul><li>CSR among others </li></ul></ul><ul><ul><li>163 papers submitted </li></ul></ul><ul><ul><li>12 selected </li></ul></ul>
  6. 6. Papers for CSR Session <ul><li>Tintaya (Xstrata) </li></ul><ul><li>“ Balance Scorecard Methodology in the Implementation of a CSR Strategy” </li></ul>
  7. 7. Papers for CSR Session <ul><li>Southern Peru (Mexico) </li></ul><ul><li>Creation of an Alpaca Production Cluster to Promote Economic Development </li></ul><ul><li>Value Chain Analysis to CSR in the Mining Sector </li></ul><ul><li>Community Relations as the Management of Perceptions and Attitudes in the Mining Sector </li></ul>
  8. 8. Papers for CSR Session <ul><li>Yanacocha (Newmont) </li></ul><ul><li>Creation of an Artisanal Jewelry Training School to Promote Sustainable Economic Development </li></ul>
  9. 9. Papers for CSR Session <ul><li>Apurimac Ferrum (Australia/Peru) </li></ul><ul><li>Participatory Communication in the Management of an Exploration Project </li></ul><ul><li>(This presentation received the Convention’s award in this category) </li></ul>
  10. 10. Papers for CSR Session <ul><li>Goldfields La Cima </li></ul><ul><li>Statistical Analysis of Community Perceptions to Support a New Mining Project </li></ul>
  11. 11. Organizational Design for CSR Case Tintaya <ul><li>Office of Community Relations and Institutional Affairs </li></ul><ul><li>  </li></ul><ul><li>a) Superintendent of Social Development, in charge of devising the strategy for consultation and engagement and applying proper Communications and conflict resolution techniques; </li></ul><ul><li>  </li></ul><ul><li>b) Tintaya Foundation; responsible to implement the different projects negotiated and approved with the communities close to the mine site. The projects are basically joint ventures with the communities and regional governments. The areas of intervention are health and education, agriculture development, social infrastructure, and tourism; </li></ul><ul><li>  </li></ul><ul><li>c) Communications Office, providing the different means for internal and external communications; and </li></ul><ul><li>  </li></ul><ul><li>d) Regional Office in Cusco, responsible for institutional relations with private and public organizations aiming to promote the company’s public image. </li></ul>
  12. 12. Organizational Design for CSR <ul><li>In the beginning: </li></ul><ul><ul><li>PR/Public Image </li></ul></ul><ul><ul><li>Intelligence </li></ul></ul><ul><ul><li>Risk Mitigation </li></ul></ul><ul><ul><li>Conflict Resolution </li></ul></ul><ul><ul><li>Sustainable Development?? </li></ul></ul>
  13. 13. Organizational Design for CSR <ul><li>From PR to CSR and to CSR + SD </li></ul><ul><li>By social pressure (NGOs, communities, shareholder) </li></ul><ul><li>By corporate global policy (public image) </li></ul><ul><li>Regulatory (voluntary, mandatory) </li></ul><ul><li>Ethical and moral concerns </li></ul>
  14. 14. Organizational Design for CSR <ul><li>Managerial Decision Process for CSR </li></ul><ul><li>I know that I don’t know </li></ul><ul><li>Then… </li></ul><ul><li>Don’t do anything..let’s see what happens (exploration) </li></ul>
  15. 15. Organizational Design for CSR <ul><li>Managerial Decision Process for CSR </li></ul><ul><li>I know that I don’t know </li></ul><ul><li>Then… </li></ul><ul><ul><li>Let’s others do it </li></ul></ul><ul><ul><ul><li>With us </li></ul></ul></ul><ul><ul><ul><li>Without us (credits?) </li></ul></ul></ul>
  16. 16. Drivers for CSR - Tintaya <ul><li>Social License </li></ul><ul><li>Stakeholders Acceptance </li></ul><ul><li>Social and Political Risk </li></ul><ul><li>Sustainable Projects </li></ul><ul><li>Dialogue Engagement </li></ul>