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Five Keys to Social License Success


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Slides from a panel presentation to the 2015 Sustainable Development in the Minerals Industry global conference held in Vancouver.

These slides outline the five key areas of growing societal expectations on the mining industry and discuss how companies and other stakeholders are addressing them in order to secure and maintain social license.

To keep updated on postings and events go to and sign up for the newsletter. If interested the CSR Knowledge Centre contains a series of short, pragmatic articles on CSR Strategy, Management and related areas.

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Five Keys to Social License Success

  1. 1. Five Keys to Social License Success Sustainable Development in the Minerals Industry Vancouver, Canada July 14, 2015 Wayne Dunn Prof. of Practice in CSR (McGill) President, CSR Training Institute
  2. 2. Why Me? Who is Wayne? • Saskatchewan Farm Boy • Accidental Academic • 2 seasons diamond drilling (Gold/Uranium) • 25+ years of practical, global CSR/social license experience • About 100 projects (programs, policies, strategy, relationships, innovation, etc.) Many very complex (e.g., industry HIV/AIDS strategy in South Africa and Papua New Guinea). Some great successes, at least one social license failure. • Over 40 countries spanning all continents (urban, rural, indigenous, traditional, etc.) • Numerous awards (1st private sector winner of World Bank Development Innovation Award, Stanford Case Study, etc.) • Developed McGill | ISID Executive Program on CSR Strategy & Management and taught hundreds of participants globally. • Professor of PRACTICE in CSR (note – still practicing and learning!)
  3. 3. Presentation Outline • Look at growing social demands on mining? • How these demands can provide a five-point strategic framework for social license actions and responses? • Industry Social License • Social License partnerships? • Discussion
  4. 4. Social License Catching a cloud in a net
  5. 5. Social License You can FEEL it You can SMELL it But, you can’t SIGN it You can TASTE it You can TOUCH it
  6. 6. Growing Societal Demands on Mining • Consultation (formal/informal, history, structure, FPIC, closure) • Access to land (who/how approved) • Benefit sharing (what’s in it for everyone) • Project approval (who approves? when? how?) • Environmental monitoring (Who monitors? Trust, Communication, Local Involvement)
  7. 7. Consultation • From exploration to closure • Formal/Informal (relationship history across ownership changes) • Structured Processes (who leads, who participates, roles & responsibilities, end points) • Starting point (exploration, permitting, construction) • ICMM Position Paper • defines FPIC as process based on Good Faith Negotiation through which Indigenous Peoples can give or withhold consent • commits members to work to obtain the consent of Indigenous Peoples • includes supporting commitments that apply to most interactions with indigenous communities • defines how to engage where government has primary responsibility • addresses how to move forward where differences of opinion arise.
  8. 8. Land Access • Role of the State (strength of land cadastre systems) • Role of Community (who leads, who participates, roles & responsibilities, traditional land owners, end points,) • Role of Landowner • Role of Traditional Leaders • Process (purchase, lease, negotiation, relocation, pricing, etc.) • Dispute Resolution
  9. 9. Benefit Sharing • Compressive Community Development Agreements (structured frameworks, bi-lateral, tri- lateral/multi-dept, multi-lateral, ODA involvement) • Local Content (employment, procurement, training) • Local Industry/Diversification • Infrastructure (direct funded, co- funded, tax credits [Works for Investment]) • Resource Access (water, small scale mining, agriculture)
  10. 10. Project Approval • Informal (local, national, international pressures: Tambo Grande, Rosia Montană) • Structured Local Processes (Binding Referendum/Honduras) • Informed Processes (State decision informed and influenced by local [and other] input)
  11. 11. Environmental Monitoring • Who monitors? (company, community, state, 3rd party) • How trusted is the regulator (objectivity, impartial, informed, communication) • Local involvement (Is the community involved? How? Starting when?) • Communication (Is information available? How?)
  12. 12. Industry Social License • Oil Sands - Alberta • Uranium Mining – Saskatchewan • American chefs signing up to boycott Canadian seafood because of the seal hunt • Industry Associations (ICMM, Mining Chambers, CIM, PDAC, AME BC, etc.)
  13. 13. Sustainable Development in the Minerals Industry Vancouver, Canada, July 14, 2015 Increasing mandatory and voluntary compliance • ICMI - International Cyanide Management Institute (ICMI) • Conflict Free Gold Standard • Voluntary Principles on Security and Human Rights • EITI • Global Reporting Initiative • Voluntary Principles • ICMM • IFC • Equator Principles • ILO • Accountability • Many, many more
  14. 14. Relationships & Trust • Crosscutting themes (relationship history across ownership changes) • History of relationships (reputational capital of project and owners – new owners don’t reset reputational liabilities) • Transparency and legitimacy of processes (environment, permitting & approvals)
  15. 15. 5 keys to Social License Success 1. Consultation (formal/informal, history, structure, FPIC, closure) 2. Access to land (who/how approved) 3. Benefit sharing (what’s in it for everyone) 4. Project approval (who approves? when? how?) 5. Environmental monitoring (Who monitors? Trust, Communication, Local Involvement) ± Industry Social License
  16. 16. BEWARE The Industry/Community Capacity Gap
  17. 17. We’re all Trying But, often its not working Industry Efforts Community Efforts Clear roles & responsibilities Organizational Structure/Vehicle Cultural Understanding Adequate Resources Execution Capacity Governance Partnership Strategy Politics/Business separation Other partners (ODA/IFI)
  18. 18. Social License Story
  19. 19. CSR Knowledge Centre Below are some recent articles and publications on Corporate Social Responsibility and stakeholder engagement that you may find interesting. They are short and pragmatic, hopefully helpful and interesting. Read them, download them, share them and feel free to comment on them by sending us an email. The CSR Training Institute is a private, mission driven organization. It began from a lifelong passion for developing ground-breaking ways that business can serve both shareholders and society. We are a small, committed team focused on helping organizations of all types to create and capture value at the intersection of business and society.
  20. 20. Discussion For any questions or comments Wayne Dunn Prof. of Practice in CSR (McGill) President, CSR Training Institute