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ONCOMMONGROUND.CA
LESSONS ALONG THE ROAD: SOCIAL LICENSE AND
WHO GETS A SAY?
Panel Discussion: Social License to Operate
SDIMI Conference, UBC, July 2015
Presented by Susan Joyce
ONCOMMONGROUND.CA
CANADA
WHERE WE ARE – WHAT I KNOW
USA
MEXICO
GUATEMALA
EL SALVADOR
ECUADOR
PERU
PANAMA
HONDURAS
DOMINICAN REPUBLIC
COLOMBIA
SURINAME
ARGENTINA
BRAZIL
BOLIVIA
VENEZUELA
CHILE AUSTRALIA
INDONESIA
PHILIPPINES
CHINA
TAJIKISTAN
KAZAKHSTAN
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THE PROBLEM
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Social acceptance (a Social License to Operate) of projects by host communities is increasingly conditional
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CONFLICTIVITY CONTINUES TO INCREASE
Clear, significant trend in the number of incidents
registered between mining companies and
communities/stakeholders in the last decade
Are conflicts increasing or is there more
media coverage and visibility of
those conflicts due to iinternet and social media?
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
0 10 20 30 40 50 60
Business and HR
Resource Centre
Alll sources
ICMM study carried out on publicly available information. Presented at the “Social
Responsibility in Mining” Conference, Santiago Chile, 7 November, 2013
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QUESTION: WHAT IS A SOCIAL LICENSE TO OPERATE?
Concept proposed by Jim Cooney (VP External Affairs for Placer Dome Mining Company) in 1997 as an essential requirement for the future survival of the mining industry
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It is when the stakeholders – direct, indirect – are in agreement with the ‘what’ and the ‘how’ of the development of a project
‘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, President of Newmont Mining Corporation (2003).
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2008 – MODEL PROCESS OF GAINING SOCIAL LICENSE
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COMPONENTS OF SOCIAL LICENSE
COMMUNITY PERCEPTIONS OF:
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Social Legitimacy of project
Conforming to established norms – norms may be legal, social, cultural and both formal and informal
Credibility of project/company
The quality being believed – the capacity or power to elicit of belief
Trust in operators of project
Willingness to be vulnerable to risk or loss through the actions of another
Elements are acquired sequentially, are cumulative, and function in BOTH directions Pioneering research done by OCG Associate Ian Thomson and Social Psychologist Robert Boutilier
ONCOMMONGROUND.CA
COMPLEXITY OF ‘REPRESENTATION’ - 4 DIFFERENT INTEREST GROUPS The construction of a process to gain social license for Michiquillay Project - Perú
• 12 months for initial engagement process
• Previous ‘hard-core’ opposition to privatization by a sub-group
• Government set some of the terms
• $1 million social fund/promise of $215 million if project went ahead • AA given 1 year to achieve acceptance • Negotiated agreement at 12 months
gave company authorization to explore
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Final agreement represented a range of interests, but not all of those ‘at the table’
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INITIAL MEETING WITH 1 OF 17 VILLAGES
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MICHIQUILLAY SOCIAL LICENSE PROCESS
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Initiated broad and ongoing information/training sessions on mining and built capacity of nominated community liaison leads to translate information to their communities
Had to actively counter corruption process involving community president and others paid to support specific outcome - Overall legitimacy at risk - balanced role of other groups, - internal accountability mechanisms
New company, had to engage differently - Assessment of ‘community’ structure, power relations
and interests - Three sub-groups, three strategies
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BUILDING SOCIAL CAPITAL NEEDS TO BE THE FOCUS
Pioneering research done by OCG Associate Ian Thomson and Social Psychologist Robert Boutilier
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ISOLATED GROUPS No community
ELITE HUB with peripheral spokes
STRONG FACTIONS Weak, contested core
COHESIVE BALANCE Smooth gradient of inclusion
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WHAT DID SLTO GIVE US THAT WAS NEW?
• Gave a name and capacity to strategize, analyze and understand that power
• Recognized the nuances in ‘visible’ face of relationships, and ‘unpacks’ some of what lies underneath
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• Tends to see the different actors as separate from the other
• Tendency to seek to ‘homogenize’ the community?
SLTO shifted our focus to recognize the (usually) informal
power of communities and other stakeholders in the
decision making process
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Approval or
acceptance
of the
project
Confidence in the
company
Contact (quality and
quantity)
Procedural Justice
Impact
Factors
Relationship
Factors
Experience of impacts &
gap in expectations
WHY FOCUS ON THE PROCESS?
From: Airang Zhang & K. Moffat, CSIRO, Australia. Presented at the
SRMining Conference, November 2013, Santiago Chile.
RESEARCH ON HOW COMPONENTS OF THE SLO ACTUALLY FUNCTION
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RELATIONSHIP BETWEEN TRUST AND PERCEPTIONS OF IMPACTS
Relational Factors • quality of the contact • trust • sense of procedural fairness •acceptance
Perceptions of Impacts • social infrastructure • water and environment •Social wellbeing •Local businesses
2011
2011
2013
2013
+vo
-vo
+vo
-vo
From: Airang Zhang & K. Moffat, CSIRO, Australia. Presented at
SRMining Conference, 2013, Santiago Chile
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Pro-active engagement and collaboration to
solve shared challenges with
water
THE OPPORTUNITY FOR SYNERGY & COLLABORATION
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INNOVATION
Where do we need to go now?
• Self-determination, control over path to development, Free prior informed consent,
• From this comes collaboration on shared priorities, formal legal agreements
• Synergy, collaboration, shared value
Are we using the right tools and the right concepts if this is the priority?
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ONCOMMONGROUND.CA
TAKEAWAYS – INNOVATION AROUND SYNERGIES
• Harness the opportunities – intellectual capital
• Build public-private partnerships
• Engage and collaborate with development partners around shared or broader goals
• Technological fixes that address social needs
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….have also looked to
optimize social value?
How many ‘Best Practices’ across
engineering, environment, safety, etc…
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580 WEST 18TH AVENUE Vancouver, BC V5Z 1V6 (604) 235-1376 [email protected]
ON COMMON GROUND CONTACT US
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Socially Sustainable Development
SUSAN JOYCE [email protected]
