GETTING YOUR SOCIAL LICENSE:

Transcription

1 GETTING YOUR SOCIAL LICENSE: SOME LESSONS LEARNED FROM PROJECTS THROUGHOUT LATIN AMERICA Presentation to 4 th Annual Session on Risk Mitigation and CSR in Africa and Emerging Markets replan Inc. October 27, 2010

2 Presentation Overview 1. Social License to Operate a. What is it? b. Why do I need it? c. How do I get it? 2. Top Ten Lessons Learned.

3 replan Helps resource companies understand and meet their corporate social responsibilities on the ground and in the boardroom. Specializes in: 1. Managing the social, economic and housing dimensions of resource projects 2. Helping companies obtain their Social License to Operate.

4 Our Services 1. Social Impact + Risk Assessment 2. Social Management Plans 3. Land Acquisition + Resettlement 4. Worker Housing Planning + Design 5. In-Migration Management 6. Regional + Community Master Plans 7. Community Engagement + Development.

5 Some Clients AngloGold Ashanti Anglo Platinum Barrick Goldcorp Gold Fields IAMGOLD Inmet Kinross Metorex Newmont Noranda RioTintoAlcan Teck IFC EBRD World Bank

6 Our Reach 60 Full-Time Social Scientists, Planners, Architects, Engineers Experience in 40+ countries; ongoing projects in 15 countries Languages: English, French, Spanish, Portuguese

7 SOCIAL LICENSE TO OPERATE: What is it? Why do I need it? How do I get it?

8 What is a Social License to Operate? Ongoing process of earning and maintaining Broad Community Support for your project. Some key words: 1. Ongoing Process Not a one-time thing 2. Earning and Maintaining Implies continuous action 3. Broad Representative cross-section, including individuals from all walks of life, as well as opinion leaders and recognized leaders.

9 What is a Social License to Operate? More key words: 4. Community -- Network of stakeholders, who affect or are affected by your project, both internal and external 5. Support -- Collective expression of Acceptance Approval Co-Ownership * 6. Project Site specific. * From Ian Thompson s work

10 Why do I need a Social License? In short, self interest, given that a Social License protects and adds value to your project. replan.ca WITH WiTHOUT Project Schedule Shorter Longer Access to Capital / Insurance Better Worse Employee Relations Stronger Weaker Community Relations Stronger Weaker Reputation / Brand Stronger Weaker Permitting Facilitated Impeded Financial Viability / Perf. Better Worse Share Prices Higher Lower building corporate social responsibility

11 How do I get a Social License? You don t get your social license by going to a government ministry and making an application or simply paying a fee It requires far more than money to truly become part of the communities in which you operate. -- Pierre Lassonde 2003

12 How do I get a Social License? It requires: 1. Investing time and energy 2. Getting to know your Community, and letting the Community get to know you 3. Building positive, collaborative relationships 4. Acting responsibly and respectfully 5. Addressing Community fears and desires head on.

13 TOP TEN LESSONS LEARNED

14 Lesson #1: Don t Reinvent the Wheel Many many many resources available: a. Standards, handbooks, and guides b. Other projects c. Social development professionals. But beware: there is no such thing as a One Size Fits All solution.

15 Lesson #2: Its Never Too Early to Start 1. A good first impression is essential 2. Train exploration teams in basic Community Relations 3. Be a good Employer and a good Neighbour 4. Understand the Human Geology 5. Be proactive and don t let issues fester.

16 Lesson #3: Engage Engage Engage 1. Analyze your Community 2. Engage with everyone by -- a. Spreading awareness b. Consulting and ACTING c. Planning together and ACTING d. Negotiating and ACTING 3. Provide a grievance management system 4. Ramp-up efforts during periods of change.

17 Lesson #4: Manage Unrealistic Expectations 1. Be proactive 2. Be honest about: a. Status and uncertainty b. Significance of specific activities c. Likely impacts and benefits d. Management plans 3. Document your commitments 4. Don t make promises you can t keep!

18 Lesson #5: Acquire Land Carefully * 1. Avoid land acq. that results in displacement 2. Displacement can be a significant impact 3. Strict international standards are in play 4. Manage displacement through a formal resettlement / compensation process 5. Treat as an opportunity for sustainable development.

19 replan.ca Lesson #6: Maximize Local-Local Jobs * 1. Major mismatch between reality and expectation 2. Explore ways of maximizing local-local employment opportunities 3. Distribute opportunities methodically and transparently 4. Strive for a balance between impacts and benefits, geographically and socioeconomically. building corporate social responsibility

20 Lesson #7: Contribute to Sust. Development 1. Maximize local capture of benefits; minimize exposure to impacts 2. Be responsive to Community needs / issues 3. Work with your Community to create a long-term vision of the future 4. Demonstrate how your Project can help realize that vision 5. Align Project with other development initiatives.

21 Lesson #8: Achieve Consent 1. Increasing pressure to achieve Free Prior and Informed Consent 2. Much debate over the definition of Consent 3. Define Consent early with your Community and provide clear goalposts 4. Does not necessarily require unanimity or even a vote 5. Can be very similar to Broad Community Support and based on a collective expression of Acceptance Approval Co-ownership.

22 Lesson #9: Get Ready to Prove It The era of declaratory CSR is over; we ve moved into prove it time - John Ruggie Proof requires, at a minimum: a. Robust engagement program b. Good baseline information, regularly updated c. Strong relationship with your Community d. Good documentation of the above 2. Ideally, your Community will provide the proof for you in words or actions!

23 Lesson #10: Keep Your Hands On the Wheel Social License 1. Implies a dynamic, ongoing process of relationship-building 2. Is granted by the Community outside normal approvals processes 3. Rooted in beliefs, perceptions and opinions 4. Is intangible, informal and non-permanent i.e., not a one-time deal! Like any relationship, you have to work on your Social License constantly. Never take it for granted!

24 Summary 1. Don t Reinvent the Wheel 2. Its Never to Early to Start 3. Engage Engage Engage 4. Manage Unrealistic Expectations 5. Acquire Land Carefully * 6. Maximize Local-Local Jobs * 7. Contribute to Sustainable Development 8. Achieve Consent 9. Get Ready to Prove It 10. Keep Your Hands on the Wheel.

25 Graeme Burt replan Inc x270