The document is a presentation about corporate social responsibility (CSR) and how it relates to corruption. It discusses the definition of CSR as continuing commitments by businesses to behave ethically and contribute to economic development while improving quality of life. It provides examples of CSR programs at mining companies that partner with communities and address issues like health, education and sustainable development. The presentation argues that CSR can provide a sustainable competitive advantage over options like bribery and corruption by building reputational capital and broader access to investors. It concludes with inviting questions from the audience.

1. THE COMMONWEALTH SECRETARIAT
& CHATHAM HOUSE
ANTI-CORRUPTION CONFERENCE
Corporate Social Responsibility & Corruption
Presented by:
Chatham House Wayne Dunn
London, U.K. President & CEO
24-April-06
A History of Creating Innovative Partnerships
Page 1

2. THE COMMONWEALTH SECRETARIAT
& CHATHAM HOUSE
ANTI-CORRUPTION CONFERENCE
Overview
 So What Is CSR?
 Where Did It Come From?
 What Does it Look Like?
 How Does It Provide a Sustainable
Competitive Advantage?
 Questions and discussion.
A History of Creating Innovative Partnerships
Page 2

3. THE COMMONWEALTH SECRETARIAT
& CHATHAM HOUSE
ANTI-CORRUPTION CONFERENCE
Definition
“CSR is the continuing commitment by business to behave ethically
and contribute to economic development while improving the quality
of life of the workforce and their families as well of the local
community and society at large”
Corporate Social Responsibility
(Triple Bottom Line)
Financial Social Environmental
Responsibility Responsibility Responsibility
Source: World Business Council on Sustainable Development
A History of Creating Innovative Partnerships
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4. THE COMMONWEALTH SECRETARIAT
& CHATHAM HOUSE
ANTI-CORRUPTION CONFERENCE
CSR is about…
 Companies working in partnership with communities
and others to address problems;
 Companies promoting good values to their
employees, suppliers, customers, partners;
 Companies investing in social and economic
development;
 Companies being good corporate citizens;
A History of Creating Innovative Partnerships
Page 4

5. THE COMMONWEALTH SECRETARIAT
& CHATHAM HOUSE
ANTI-CORRUPTION CONFERENCE
CSR Drivers/Corruption Challenges
Globalized world is demanding more of business…
 Global media – The CNNization of the world – remote local issues direct to
television screens
 Proliferation of NGOs and CBOs – direct, well organized and financed
support to communities
 Internet and other communications innovations – direct communications
from remote projects to worldwide audience
 Global Democratization – increased attention to local issues
A History of Creating Innovative Partnerships
Page 5

6. THE COMMONWEALTH SECRETARIAT
& CHATHAM HOUSE
ANTI-CORRUPTION CONFERENCE
CSR Drivers/Corruption Challenges (cont)
 Emergence of Global Standards
 Equator Principles – World Bank/IFC Environment and Social Standards
adopted by private banks
 ‘Socially conscious’ shareholders
 Social Investment Funds
 The Financial Markets
– Dow Jones Sustainability Index (http://www.sustainability-index.com/)
– FTSE Sustainability Index (FTSE4Good)
http://www.ftse4good.com/
– Domini 400 Social Index (DSI)
http://www.domini.com/
A History of Creating Innovative Partnerships
Page 6

7. THE COMMONWEALTH SECRETARIAT
& CHATHAM HOUSE
ANTI-CORRUPTION CONFERENCE
Social License
 An emerging phenomena
 In addition to more traditional state issues
licenses and regulatory approvals
 Based on the principle that communities and
local interests have a valid role in determining
whether or not a project will proceed
 Communities have inserted themselves into
the regulatory approval/permitting process and
can easily disrupt operations that they
disapprove of
A History of Creating Innovative Partnerships
Page 7

8. THE COMMONWEALTH SECRETARIAT
& CHATHAM HOUSE
ANTI-CORRUPTION CONFERENCE
Placer Dome Care Project
– South Africa, Mozambique, Botswana,
Lesotho and Swaziland
– Poverty alleviation
– Community health
– Industry leadership
– Capacity development
– HIV/AIDS
A History of Creating Innovative Partnerships
Page 8

9. THE COMMONWEALTH SECRETARIAT
& CHATHAM HOUSE
ANTI-CORRUPTION CONFERENCE
Eldorado Gold - Kisladag Project
 Strategic approach to
use mining project to
facilitate sustainable
rural development
– Development of
agriculture related
industries and
infrastructure;
– Increased involvement of
women;
– Improved grazing and
land management (reduce
desertification)
A History of Creating Innovative Partnerships
Page 9

10. THE COMMONWEALTH SECRETARIAT
& CHATHAM HOUSE
ANTI-CORRUPTION CONFERENCE
Porgera, Papua New Guinea
 Working to leave behind a
sustainable community
– Development of local, non-
mine related, business
– Creation of local infrastructure
to support a sustainable
community after the mine
leaves
– National HIV/AIDS PPP
Strategy
– Innovative closure planning
A History of Creating Innovative Partnerships
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11. THE COMMONWEALTH SECRETARIAT
& CHATHAM HOUSE
ANTI-CORRUPTION CONFERENCE
Sustainable Competitive Advantage
 Triple bottom line (financial, social and
environmental performance)
 Support sustainable development
 Deal with a variety of stakeholders
 Inter-connected projects with global markets
and impacts
 Transparent decision making processes
 Broader access to investors and capital
 Management of Reputational Capital
A History of Creating Innovative Partnerships
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12. THE COMMONWEALTH SECRETARIAT
& CHATHAM HOUSE
ANTI-CORRUPTION CONFERENCE
Competitive Advantage Choices
Bribery Social Responsibility
Corruption Ethical Behaviour
A History of Creating Innovative Partnerships
Page 13

13. THE COMMONWEALTH SECRETARIAT
& CHATHAM HOUSE
ANTI-CORRUPTION CONFERENCE
Competitive Advantage Choices
The Sustainable
Competitive Advantage
Bribery
Social Responsibility
Corruption
Ethical Behaviour
A History of Creating Innovative Partnerships
Page 14

14. THE COMMONWEALTH SECRETARIAT
& CHATHAM HOUSE
ANTI-CORRUPTION CONFERENCE
Overview
 So What Is CSR?
 Where Did It Come From?
 What Does it Look Like?
 How Does It Provide a Sustainable
Competitive Advantage?
 Questions and discussion.
A History of Creating Innovative Partnerships
Page 15

15. THE COMMONWEALTH SECRETARIAT
& CHATHAM HOUSE
ANTI-CORRUPTION CONFERENCE
Question and Answer
Wayne Dunn
wayne@csrdevelopments.com
A History of Creating Innovative Partnerships
Page 16