From Theory to Practice: Corporate Social Responsibility and
Sustainable Development in Mineral Exploration
Outputs from the Short Course and
Collaborative Learning Experience sponsored by the Prospectors and Developers
Association of
Notes prepared by On
Common Ground Consultants Inc.
Coordinator
Facilitators
Susan Joyce and Ian
Thomson, Principals, On Common Ground
Organizing Committee
Peter Bradshaw, Chairman, First Point Minerals
Ross Gallinger, Vice President, Environment, Health, Safety & Community, IAMGold
Bill McGuinty, Vice President Exploration, Intrepid Minerals Ltd
Introduction
A total of 75 people were registered for the short course, plus 6 case history presenters, 3 from the organizing committee and 2 from PDAC for a gross total of 87. Travel problems prevented a number from attending and many were delayed in arriving on the morning of the first day. It is estimated that some 72 persons participated in the key breakout on the afternoon of the first day at which the make-up of Corporate Social Responsibility (CSR) in mineral exploration was discussed and a preliminary working model adopted.
The following notes present areas where agreement or strong consensus emerged from the breakout sessions and/or discussion. A full listing of findings from the tables in the breakout sessions is presented in the Appendix to this document.
Basis of Participation
At the beginning of the Short Course the basis of participation, as set out below, was discussed and agreed to:
Our intent is:
- To explore, not negotiate
- To share not contest
- To inform, and when requested, advise
- To understand the diversity of perspectives and, where possible, build consensus
- To help guide the flow of the discussion in such a way that areas of common ground and of difference are identified along with the underlying reasons, and
- To respect that participation and contributions are not to be seen as an endorsement by any participant of the PDAC initiative on Corporate Social Responsibility (or any specific outcome of it)
Attribution of comments
- No specific attribution of any comment made by any participant(s) will be referenced in any written output from the Short Course unless specifically requested by the participant(s)
Notes
- Notes will be prepared from the Short Course and shared. Notes shall typically be of a summary nature and include a list of participants
- Any notes prepared should include at the beginning, this "Basis for Participation" which shall have been discussed with participants at the beginning of the activity.
The Challenge of CSR in Exploration
In addressing the question in the first breakout session, what are the strengths, weaknesses and challenges in implementing CSR in Exploration, a total of 8 tables participated and recorded the following response (the list shows only where a minimum of two table had the same observation)
|
STRENGTHS |
WEAKNESSES |
CHALLENGES |
|
Experience, knowledge, awareness (international) (8) Motivated willingness to learn - adaptable (5) Capable of making a difference (finance, technical, etc) (4) Innovation quality people (3) Immediate benefits jobs training (3) Strong industry
associations (2) |
Lack of capacity and/or ignorance (7) Short term nature , impatience view (3) Creating expectations (2) Lack of communications (2) Lack of Govt support (2) |
Lack of knowledge /complexity - capacity (6) Public understanding of exploration/mining (5) Managing expectations (3)1 Cost time (2) Stakeholder identification (2) |
There was strong consensus that the strengths of the mineral exploration sector in dealing with the challenge of CSR lie in the knowledge, experience and awareness of its people, their motivation and willingness to change. On the other hand, the weakness and challenges of the sector lie in the ignorance, lack of capacity and lack of knowledge of the nature and application of CSR. There is also recognition that the sector is not well known or understood by the general public, particularly in many foreign countries, which creates a further challenge for the sector.
Other findings and observations include:
- Strong
agreement with the proposition that a formal model for CSR providing guidance and benchmarks would be
useful for mineral exploration.
- Exploration should build on existing industry initiatives and avoid creating too much new material that might cause confusion or duplication.
- CSR is a management framework and mechanism for making a contribution to sustainable development. It is, however, possible to achieve a high level of CSR without contributing to sustainable development. On the other hand, it is impossible to meet the principles of sustainable development without also fully implementing CSR.
A Working Model for CSR in Exploration
The full model, incorporating all recommendations coming from the breakout groups and discussion, is attached to this document.
Aspects of the Working Model
- CSR is seen as founded in good corporate governance with engagement (defined as a process of contact, dialogue and interaction that ensures all parties of interest are informed and participating in decisions that affect their future, in a way that is satisfactory to them.) as the most significant aspect of implementing CSR on the ground during exploration, as illustrated in the diagram below created by Short Course participants.
- A hierarchical/layered approach is required with principles, guidelines and tools
- It is reasonable to adopt an existing set of high level industry principles such as those published by ICMM, but they should be adapted to meet the characteristics of exploration.
Limitations of the Working Model
- The present Guidelines are an aggregate of high level objectives, tasks and tools and require dis-aggregation.
- The Guidelines are incomplete in many areas.
- The Guidelines represent the gross character of CSR in exploration and not all aspects would necessarily be implemented at the same time. There is thus a need to develop milestones linked to the incremental advance of an exploration project and/or the stages of exploration to indicate what is appropriate for CSR at each stage.
Operationalizing CSR in Exploration
Participants identified a number of factors that are considered critical to the effective implementation of CSR in exploration;
Issues for Management and the Field Team
- Communications are the cross-cutting issue. Information must flow freely in both directions. There should be a high level of transparency inside the company.
- Management
- Provides leadership, articulates vision, sets goals, provides resources
- Creates a working environment with a shared vision, common CSR philosophy, mutual respect and trust
- Be flexible and responsive to social issues
- Should be very familiar with the field area, visit the area frequently, be seen and known by key stakeholders
- Be role models for the company/project demonstrate truth and transparency in reporting
- Creates a safe working environment
- Establishes management structures to:
- Facilitate two-way internal communications
- Sharing of information
- The Field Team
- Should have a mandate and authority granted/defined by management
- Gives continuous feedback
- Flags issues early so that they can be resolved before there is a crisis
- Resources and tools
- Budget
- Timetable that is realistic for both CSR and technical objectives
- People appropriately trained and informed
- Guidelines for engagement with stakeholders particularly for pre-engagement and engagement
- External verification and validation
- Tool kit optimized to local situation
- An exit strategy
Resolving the Lack of Capacity
- Recognize that CSR is more valuable than a drill hole
- Early, up front identification of the resources needed
- People (skills, personality, aptitude)
- Budget
- Time
- Training and instruction for all personnel use all available sources
- Recognize when you need help and bring in the best people possible
- Use consultants as necessary to support and validate your staff
- Be willing
- Manage your supply train
- Develop industry knowledge sharing
Going Overseas
In addition to the many familiar challenges to working overseas, participants identified the following as being particularly important with respect to implementing CSR:
- Finding people who share the same social values as the parent company particularly important for the in-country manager as well as the field staff
- Language and the challenge of communicating values across cultural as well as linguistic distance
- Establishing limits to CSR, particularly benefits
- Defining the area of social impact/influence of a project
- The need for a tool kit specific to the realities of a country or region
- The lack of knowledge/understanding of exploration (often mining in general) in local communities
- The low credibility of the mining industry due to legacy issues and/or bad image in many places
- The presence of activist NGOs and others critical of or opposing mining
- Recognizing the lack of government capacity in many developing countries
Challenges and Barriers to the Implementation of CSR
- Industry ability to be credible
- Where to draw boundaries on participation, benefits etc
- CSR, particularly Engagement, not accepted as an exploration cost.
Lead Issues Identified by Participants
- People the difficulty in finding appropriately qualified individuals and/or those with the aptitude to work with communities
- Knowing and/or understanding the community and other stakeholders
- Communicating what exploration is and managing expectations
- Setting boundaries to CSR with respect to benefits, etc
- Defining the areas of social impact and influence
- Buy-in/acceptance of the importance of CSR by shareholders and analysts
- Lack of acceptance that aspects of CSR, and in particular Engagement, are a cost of exploration and are just as important as great drill holes
- The lack of a level playing field in many places where community groups, NGOs, the media and others are not necessarily truthful, ethical or honest in their criticism/opposition to mining and mineral exploration.
Recommendations for Moving Forward
- PDAC should form a working group to advance development of the model.
- Next steps include optimizing the working model for the various stages of exploration from first contact through to full feasibility to form an operational model.
- Case histories are an important part of learning and communicating CSR and it would be highly advantageous to have linkages between recommended procedures and practical examples.
- A self assessment tool kit would be very useful.
- The CSR for exploration model should be validated with a broader group of peers in the industry and then external stakeholders a multi-sector process would be appropriate once the model is a little more refined.
- The final model should be widely disseminated within the industry and be available to communities and other stakeholders e3 is a potential platform or model for this.
- The final product should be linked to the Global Compact.
- A
reporting
Unresolved Issues
Parked as being either too complex or a detailed sub-set of CSR
- International accountability guidelines, benchmarks for other actors as a mechanism for leveling the playing field.
- First
Nation/Aboriginal Consultation and Rights in
A WORKING MODEL FOR CORPORATE SOCIAL
RESPONSIBILITY IN MINERAL EXPLORATION
As developed in the PDAC Short Course,
PRINCIPLES
(Modified from ICMM)
Implement and maintain ethical business practices and sound systems of corporate governance.
Integrate sustainable development considerations within the corporate decision-making process.
Uphold fundamental human rights and respect cultures, customs and values in dealings with employees and others who are affected by our activities.
Implement risk management strategies based on valid data and sound science.
Seek continual improvement of our health and safety performance
Seek continual improvement of our environmental performance.
Contribute to conservation of biodiversity and integrated approaches to land use planning.
Contribute to the social, economic and institutional development of the communities in which we operate.
Implement effective and transparent engagement, communication and independently verified reporting arrangements with our stakeholders.
GUIDELINES
(Incorporating contributions from Short Course breakout workgroups)
Mineral exploration activities should be conducted taking into consideration the following guidelines.
Pre-engagement
Before going to the project area, assemble all available information on social, cultural, legal and environmental conditions so that a pre-visit assessment can be made of social and environmental risks and develop a strategy for initial engagement with local populations.
Provide information, instruction and, if necessary, capacity building to the field team charged with making the first visit to the field area.
Provide specialist assistance to the field team to facilitate risk assessment and initial contact with local populations
Engagement
Set up an engagement process that provides for the mutual exchange of information in a transparent, inclusive and respectful manner, and community participation in decisions that affect their future.
Conduct social profile/mapping and analysis of the community and other stakeholders in order to understand local social, socio-economic and cultural characteristics as baseline for a plans for engagement, communications and community relations;
Provide complete, objective information about the companies exploration program, the process of exploration, its possible chances of success and potential time lines; and both the risks and opportunities of mining, should a mine eventuate.
Provide company press releases to all stakeholders in their native language.
Provide independent information about exploration and mining
Provide access to independent advice (the company should be prepared to finance the provision of independent advise to the community and individual landowners where exploration takes place)
In consultation with affected parties, develop a schedule of compensation for access to land and/or harm arising from exploration activities prior activity taking place
Have a signed agreement with any affected surface owners before any stage of physical work
Develop specific plans to cope with
Communications and information issues during extended periods of time when the company is absent;
A signed completion agreement when any stage in completed (e.g. trenches filled in and re-seeded; drill pads reclaimed; etc).
An exit strategy for projects that terminate/fail; and
Transfer of project management or ownership.
Transparency
Develop and publicize policies and procedures for transparency and the availability of information to interested parties and affected populations.
Provide complete disclosure of information using language and mechanisms that facilitate access and comprehension by interested parties and local populations (jargon free, non-technical vocabulary, language of receiving population, appropriate mechanisms of distribution of information)
Provide complete and objective reports on all activities
Adopt processes of third-party verification of company actions and compliance with corporate policies and objectives for transparency.
Benefits
In consultation with the community, create inclusive procedures for employment and maximizing economic opportunities.
Emphasis should be given to maximizing local employment and training, the use of local services and suppliers and encouraging the formation of local business to provide such services.
In consultation with community, support and strengthening institutional capacity in existing social structures and authorities.
Assist the community in liaison with regional and national authorities.
If the potential for a mine becomes visible, assisting the community in gaining access to training so that persons who wish to work can become qualified for positions in the mine.
If a mine looks feasible work with the community to have only the appropriate level of in-migration.
Bribery and
Corruption
Develop and publicize policies and procedures to cover bribery and corruption.
Provide instruction and training to personnel on how to handle situations in which bribes are suggested, requested or demanded.
Security and Human
Rights
Conduct a situation assessment of security and human rights at the project, regional and national level
Apply the Voluntary Principles on Security
and Human Rights.
Relationship with
Government
Assess the regulatory regime with respect to quality of legislation pertaining to exploration/project development.
Assess the capacity of government (at the National, regional and local level) to implement the regulatory regime.
Develop a plan for interaction with government.
Environment, Heath
and Safety
Environment
Conduct an assessment of environmental risks and hazards
Apply best practice procedures for management of
the environment that are relevant to the geography and culture of the area.
Capacity building/education of
community/stakeholders in environmental management
Create a community based environmental monitoring and verification process
Health and Safety
Assess risks to health and safety of employees and local people
Provide training and equipment (minimum of safety glasses and boots) to local employees to ensure a safe working environment
Conduct (or sponsor) base line health studies to
define the pre-mine situation and
identify where early intervention can be productive.
Corporate Governance
Develop and publicize policies and procedures to cover CSR including corporate governance and ethics
Create a management structure, budget, responsibilities and reporting for environmental and social aspects of exploration both leading to success (i.e. a mine) and failure (i.e. cessation of all activity).
Employ specialists to support the exploration team and/or fill capacity gaps.
Create, in collaboration with the community, an extra-legal mechanism for managing disputes.
Adopt processes that encourage continuous learning and adaptive management such as.
Monitoring, reviews and evaluations
Education and training programs
Regular review and update of plans
Establish community/stakeholder based processes to verify company performance
Negotiate community agreements that define rules, roles and responsibilities of all parties (reduce uncertainty).
Bind sub-contractors to company environmental and social policies.
Report outcomes of CSR to public
APPENDIX 1
Raw findings from the breakout groups
Breakout 1 - Responses to Questions
List
three
Strengths
Weaknesses
Challenges
Of the Canadian mineral exploration sector in meeting the expectations
of Corporate Social Responsibility
In
groups discuss and develop a list of the five most important strengths,
weaknesses and challenges.
Responses listed below with the number of tables (total 8 tables reporting) recording the same or very similar observation
|
STRENGTHS |
WEAKNESSES |
CHALLENGES |
|
Experience, knowledge, awareness (international) (8) Motivated willingness to learn - adaptable (5) Capable of making a difference (finance, technical, etc) (4) Innovation quality people (3) Immediate benefits jobs training (3) Strong industry
associations (2) First contact Sensitive to env & cmtys Existing standards & codes Good corporate culture Location proximity Canadian leadership Initial goodwill Business case exists Grass roots presence Ability to enter agreements |
Lack of capacity and/or ignorance (7) Short term nature , impatience view (3) Creating expectations (2) Lack of communications (2) Lack of Govt support (2) Expectations too high Govt interference inaction Narrow business focus discovery 1 CSR not integrated into business Company resistance poor performers affect reputation Impact on land Dynamic nature of sector Lack of understanding of fundamentals Widespread impact Cultural differences Understanding local priorities Nature of exploration business Role of govt not always adhered to Social and political uncertainty Cultural naeivity Economic and time commitments Absence of exploration specific guidelines Not proactive to non-technical issues Sense of prerogative or ownership (arrogance) Legacy issues Land ownership |
Lack of knowledge /complexity - capacity (6) Public understanding of exploration/mining (5) Managing expectations (3)1 Cost time (2) Stakeholder identification (2) Sophistication of communities & NGOs Land tenure traditional use Weak host govts Hidden agendas Uncertainty and high risk of Expln Confusion of codes and standards Lack of clarity of roles responsibilities (Govt/Indy) Making equitable balance between company, landowners and govt Image of mining Lack of trust Working in complicated political environments Building consensus Cultural and language differences Establishing balance between technical and CSR Stakeholder identification Defining comprehensive guidelines Training and change of corporate culture Presenting the business case Community capacity Government participation Regulatory environmental process |
Breakout 3 Responses to Questions
In
implementing CSR in exploration:
What
do management and the field team need from each other?
What
are the critical capacity issues and how would you resolve them?
What
are the challenges for a company implementing CSR outside of
What is currently working/not working?
Internal/External relations, barriers, challenges, etc
What do management
and field team need?
Communication
Management articulates and team BUYS IN
Mutual respect and trust
Budget
Flagging issues two way communication
Shared vision
Health and Safety emergency response planning
Management helps create security at field level
Knowledge sharing
Time
Common philosophy
Resources People internal/external
Information
Leadership and management on the ground
Pre-engagement
Both led through and external evaluation
Internal Champion
Management provides training to field team
Feedback from field team to management
Management gathers info from site as pre-engagement due dilligence
Management as role model to set tone
Act to identify problems early
Frequent communication management to visit field
Truthful reporting management style culture
Flexibility, promptness
CSR has to permeate company report on CSR as well as geology
Respect trust
Management to field team
Strong direction/support
Awareness (cultural/social)
Rules of engagement
Some form of tool-kit
Exit strategy
Field team to management
Communication
Mgmt needs info/data from field
Field needs support/mandate
Both need CSR capacity (process, elements)
Resources (time, funding, training, expertise, people)
Mutual respect and trust
Common vision and commitment
Transparency within company
Critical capacity
issues how to resolve
Recognizing a good CSR is as important as a drill hole
Manage strategic stakeholder expectations
Capacity to do stakeholder mapping
Resources people industry shortage
Training local people
Time and funds
Training from appropriate sources
Consolidated information
Company/Industry ability to be credible
Get capacity from local partners (caution) resources (intellectual)
Develop industry level knowledge sharing
Company investor
Manage expectations
Training, trust, empowerment
Indigenous language training
Up-front identification of resources
Choose right personality
Social skills greater than geological
CSR training
Appropriate consultants validate staff
Internal CSR reporting
Manage supply chain
Communication/people skills
Awareness of CSR principles
Where to draw boundaries?
Training, expertise (in house)
Fear of failure perfection/procrastination
Money, time resources
Willingness
Recognizing when you need help/external expertise
Local knowledge, people
Communications
Challenges overseas
Multi layered governments
Finding the RIGHT local people
Language issues barriers
Cultural challenges
Not knowing the community
Governance corruption/anti-corruption policy
Creating partnerships at the local level (village ministry, etc)
Understanding local politics
Credibility
Cultural social/govt/local business corrupt
White knight/father Christmas syndrome
Expectations (success) community/stakeholders/shareholders
Levels of play
Delegation of authority from management to field team
Educating communities about exploration and mining
Negative legacy or bad behavior
Validation of field team judgments
Establishing limits to CSR
How to identify the best person for local manager and community relations
Defining area of influence
Weak host country governance
Defining appropriate community contacts
Risk of perceived bribery
Understanding of Culture Values Social structure, etc
Legislation/regulatory differences/lack of
Often political instability
Different regimes (political)
Extreme poverty
Low education and health levels in some areas
Cases of Human Rights abuse
Threat of nationalization
Transparency
The boom/bust cycle
Managing expectations
Local understanding of the industry
NGOs
Having a corporate philosophy
Political will of host govt
Corruption
Local expertise (or lack of)
A TOOL KIT (mechanisms)
Maintaining continuity of engagement
Resources (time, money, people)
Investor support
Currently working
Awareness of CSR importance
Third party reviews
Established role models for CSR best practice
Incremental benefits to local community
Increased awareness case histories, meetings like this
E3
Third party reviews
Potential for partnerships and motivation
Agreement on need for CSR
Currently NOT working
Co-operation (industry, government, local people, etc)
CSR Not applied
No real culture so new
Still reactive
Too many players too many views national leadership in
Buy-in by most juniors to CSR
Government support
Lack of simple guidelines
Generalization
Awareness needs to spread, foster and reach all stakeholders, including shareholders
Holding to account (internally and externally)
A common philosophy
Co-operation (internally and externally)
Cultural understanding
Contrived issues
Barriers
lack of recognition of real cost (assessment credit?)
PARKING LOT
International accountability guidelines, benchmarks
First Nation/Aboriginal Consultation and Rights role of government
APPENDIX 2
List of Participants
Need to add