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Title of presentation to a maximum of three lines of text
Developing a conflict-sensitive
business approach
Audience A:
Awareness-raising session for senior staff
Aims and objectives of this session
In this session we’ll
explore:
What is the issue and why is it relevant to our business?
What are the risks?
What do we need to do in practice?
What is required of management?
2
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Incidents of conflict over time – 2015
2002
2003
2004
2005
2006
2007
2008
Total all sources
2009
Total BHRRC
2010
2011
2012
2013
2014
2015
0
20
40
60
80
100
Number of incidents
3
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120
Causes of conflict - 2015
ASM
Consultation
Corporate power
Corruption
Economic
Environmental
Underlying
Health and safety
Primary
Indigenous issues
Labour
Land issues
Resettlement
Security issue
Use of force
Water
0
4
2
4
6
8
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The direct costs of conflict to business
Direct costs
Example
Security
Higher payments to state/private security firms; staff time spent on
security management.
Risk management
Insurance, loss of coverage, specialist training for staff, reduced
mobility and higher transport costs.
Material
Destruction of property or infrastructure.
Opportunity
Disruption of production, delays on imports; aborted greenfield
investments or expansions.
Time
Senior management involvement, additional staff time, legal advice.
Capital
Increased cost of raising capital.
Personnel
Kidnapping, killing and injury; stress; recruitment difficulties; higher
wages to offset risk; cost of management time spent protecting staff.
Reputation
Consumer campaigns, risk-rating, share price, competitive loss.
Litigation
Expensive and damaging law suits.
5
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The indirect costs of conflict to business
Indirect costs
Example
Human
Loss of life, health, intellectual and physical capacity.
Social
Weakening of social capital.
Economic
Damage to financial and physical infrastructure, loss of markets.
Environment
Pollution, degradation, resource depletion.
Political
Weakening of institutions, rule of law, governance.
6
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The nature of conflict and the practical steps
required
•
Conflict is a consequence of perceived or
actual incompatibility
•
Conflict is inevitable, and can be a force
for positive change
•
It should therefore not be avoided at all
costs
•
However, conflict has negative
consequences for both business and
associated communities
•
A conflict-sensitive approach is thus
essential
•
This understanding forms the basis of your
interventions.
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At the heart of this approach is
meaningful stakeholder engagement,
and developing an understanding of
the conflict - the context, issues,
stakeholders, and company’s role in
the conflict.
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Reflection: Our operation and conflict
Place-holder slide for you to
put your operation’s own
reflections on conflict.
8
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Senior management’s role in contributing to a
conflict-sensitive approach
Keeping personnel safe, and creating a supportive environment
Allocation of resources for conflict analysis
Integration of “conflict lens” into due diligence processes
Assessment of internal causes of conflict
Prioritization of engagement and relationship building
Upskilling of staff
Tracking and quantification of conflict costs.
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In conclusion: The benefits of this approach
10
•
Improved companycommunity relations
•
More informed
management
responses and risk
management
•
Tracking of risks
across the project life
cycle
•
Warning system for
weaknesses in
existing risk
management
•
Improved security of
personnel, facilities
and communities.
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International Council on Mining and Metals
(ICMM)
35/38 Portman Square
London W1H 6LR
United Kingdom
Switchboard: +44 (0) 20 7467 5070
Main Fax: +44 (0) 20 7467 5071
E-mail: [email protected]
www.icmm.com

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