Beyond Beads 'n Trinkets: Wayne Dunn,


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

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Beyond Beads 'n Trinkets: Wayne Dunn,

  1. 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& TrinketsCREATING VALUE WITH SUSTAINABILITY INVESTMENTSTHE MINING INDUSTRY IS UNDER create both stakeholder and shareholder BE SYSTEMATIC IN YOUR APPROACHgrowing pressure to demonstrate that it is value, it isn’t CSR. That doesn’t mean it Understand the development dynamicscreating 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 andcompanies have responded with innovative collaboration. Know where your mostand 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’spriorities. Many other companies have yet left better off after mine closure. The de- UNDERSTAND THE MARKET ANDto embrace CSR and, if they are doing any- velopment and operation of a mine creates LOCAL COMPETITIVE ADVANTAGEthing, 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 marketoften 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 projectIt is important. Do it and do it well. But along its chosen development path. ideas in agriculture, tourism and smalldon’t stop there. Community consultation business development. You need to havewill not secure your social licence. Build on ACCEPT THAT THERE WILL BE information to be able to properly assessit with the strategies below and you have a NEGATIVE IMPACTS them and systematically pick potentialgood chance of succeeding. Developing and operating a mine will winners. Conduct a detailed analysis of the cause families and communities some industry. Remember, without marketsFOCUS ON VALUE CREATION it isn’t sustainable. Work with partners whoCSR needs to focus on value creation. Sus- have technical knowledge and/ortainable 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 trainingEvery CSR activity should be vetted program at the award-winning Placer Dome Care Project inagainst 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. 2. OWN THE INTERFACE WITH UNDERSTAND AND SUPPORT innovation. Before launching any effort askCOMMUNITIES . . . 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 haveconsultants. 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? Howing 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 issuesBRING THE INDUSTRY ALONG can quickly erode social licence and createPoor 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@wayneonly as strong as its weakest performers. cordingly. This will require discipline and; 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 Canada V7X 1P1 winter 2004 | MINING REVIEW 51