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description
transcript
Introducing a Conflict-Senstitive Business Practice: Lessons From
Colombia
Notre Dame, November, 2006
Table of contentsTable of contents
1. What the CSBP pilots are about
2. The Colombia context and challenges
3. Key preliminary lessons of the pilots
3.1. Occidental
3.2. Cerrejón
1. What the CSBP pilots are about1. What the CSBP pilots are about
In 2004/2005, Bogotá-based think-tank Fundación Ideas
para la Paz and UK conflict-transformation NGO,
International Alert, began each on their own to develop
risk and impact assessment tools to implement the
Voluntary Principles on Security and Human Rights.
They later joined to carry out the CSBP pilots with two
etxractive multinationals in Colombia.
The Oxy and Cerrejón pilots began in 2006 and have been
designed as a hands-on, field testing of an innovative,
conflict-sensitive impact and risk assessment methodology.
•Business case
• Practical series of two-way conflict analysis tools
•Project and national levels
•Overview of regulatory environment
•Flashpoint issues
•Improved stakeholder relations and partnership
CSBPCSBP
1.1.What the CSBP pilots are aboutWhat the CSBP pilots are about
Key objectives have been:
To adjust company analytical capacity in order to
respond better to complex environments, increase
positive influence and minimize potential negative
impacts… … while at the same time addressing possible
risks in human rights. Engage in a trust-building exercise between NGOs
and companies.
On the ground, FIP and IA have introduced CSBP
methodology facilitating meetings and training.
2. Colombia context and challenges2. Colombia context and challenges
From 1960s- 1980s conflict was relatively contained. In the 1980s, drug trafficking expands and in the 1990s
armed conflict escalates. Alongside Marxist guerrillas (ELN
and FARC), right-wing, illegal self defense forces emerge.
Illegal armed groups resort increasingly to extortion, theft, kidnapping, drug trafficking and money laundering as a means to finance the war. Violence increases. The state steps up military response and judicial system targets illegal armed groups for their criminal behaviour.
2. Colombia context and challenges2. Colombia context and challenges
UNLIKE other places with on going conflicts, however,
Colombia is a Western country with a long democratic
tradition, legitimate institutions and empowered civil
society.
Companies are over exposed to transnational advocacy
networks seeking to protect innocent and vulnerable local
populations
Increasing international scrutiny on local dynamics
3. Key preliminary lessons of the 3. Key preliminary lessons of the processprocess
Occidental Engagement
Occidental entered Voluntary Principles 2003Occidental entered Voluntary Principles 2003 2004 issued a Human Rights Policy2004 issued a Human Rights Policy Risks Assessments required by the policy and Risks Assessments required by the policy and
by the VPsby the VPs Stakeholders AnalysisStakeholders Analysis Identification of impacts Identification of impacts Identification of Human Rights RisksIdentification of Human Rights Risks Local Economic ImpactLocal Economic Impact
Need for tools and implementation guidelinesNeed for tools and implementation guidelines
3.1. The Oxy-3.1. The Oxy-Ecopetrol pilot: Ecopetrol pilot: overview overview
Pilot carried out at La
Cira Infantas oil field in the
Middle Magdalena region –
oldest field in Colombia
(1920s)
Home of oil industry
unions (USO) and inhabited
by aprox. 13.000
Middle Mag: high
intensity armed and social
conflict
3.1. The Oxy-3.1. The Oxy-Ecopetrol pilot: Ecopetrol pilot: overview overview
Increasing international presence – foreign aid agencies, UN, international NGOs
Issues for operation include: local communities and utilities (which used to be free), governance, land and relocation and local opposition to foreign multinationals
3.1. The Oxy Pilot: preliminary lessons3.1. The Oxy Pilot: preliminary lessons
Conflict-sensitive risk and impact assessment methodology has changed key concepts and perceptions regarding:
Risk
Understandings of how different factors/variables are connected and how they contribute to conflict
Value of stakeholder engagement
Connection between local issues impacting on global reputation
Understanding civil society/understanding companies
3.1. The Oxy Pilot: preliminary lessons3.1. The Oxy Pilot: preliminary lessons
Other lessons: Need to differentiate Conflict and conflict
- The need for nuance and common understanding of stakeholders, issues and political dynamics
Engineers and Social Scientists can find common ground in Risk Analysis Methodologies
The pace of the project is faster than the pace of PESC
Local partners with special skills play a critical role in interface between companies and international NGOs- A perceptions translator- between company and Intl NGO- A prejudice diffuser
3.1. The Oxy Pilot: preliminary lessons3.1. The Oxy Pilot: preliminary lessons The process in itself is as important as the tool, if not
more:- Alignment- Training- Common Language- Trust building - Awareness
Effective trickling down of concepts and practices (cultural change) is not automatic- Internal transactions in companies need to be considered- Internalizing ideas takes time- Simple language is needed to reach all employees
Delivery design and facilitation enhance effect of a powerful toolkit (a manual is not enough)
3.2. The Cerrejón 3.2. The Cerrejón pilot: overview pilot: overview
Pilot carried out at Cerrejón coal mine: largest mining company in Colombia (4610 direct employees).
Independent operation, owned by BHP Billiton, Anglo American and Xtrata
Behavior Options Behavior Options SOCIAL AND ENVIRONMENTAL VALUE
ECONOMIC VALUE
CHARITYTARGET
SOCIALLY IRRESPONSIBLE
Corporate Social Responsibility PolicyCorporate Social Responsibility Policy
INTERNAL STAKEHOLDERS VALIDATIONCRITICAL AREAS
SAFETYSAFETY
LABORLABOR
COMMUNITYCOMMUNITY
ENVIRONMENTENVIRONMENT
HUMAN RIGHTSPublica Affairs
Environental
Human Resources
Procurement
Comptrollers
VOLUNTARYVOLUNTARY PPLS/CSBPPPLS/CSBP
ISO 14001ISO 14001
SEATSEAT
SA 8000SA 8000
OSHAS 18001OSHAS 18001
Supervision COMMUNICATION: GRI VERIFICATION
TRANSPARENCY
GLOBAL GLOBAL COMPACTCOMPACT
EITI
3.2. The Cerrejón pilot: overview 3.2. The Cerrejón pilot: overview
Guajira region: historical smuggling & contraband corridor, Wayuu indigenous communities, border with Venezuela.
Some guerrilla and paramilitary presence/attacks to infrastructure.
Concerned with conflict and the potential impacts in the region where it operates, Cerrejón started a Human Rights program
3.2. The Cerrejón Pilot: preliminary lessons3.2. The Cerrejón Pilot: preliminary lessons
CSBP has the potential to change corporate culture:
If transmitted in a language that employees/engineers can understand: FIP and IA have had to adapt original manual to make it more user friendly and resort to direct training
If mainstreamed in corporate policy: Cerrejón integrated CSBP in SIO
If well recieved by key employees: staff may react in a defensive manner
If constant top management encouragement is present: initiative approved by company CEO
3.2 Key preliminary lessons of the processA. NGO’s are NOT an enemy.
B. Adopt and follow intenational best practices:• Voluntary Principles
• Global Compact.
• EITI.
• CSBP
C. Top/down, bottom/up• Management leadership.
• Comprehensive communication and training.
D. Make it part of “the system”.
• Identify a corporate driver (operational integrity).
• Formulate a policy.
• Communicate the policy:
• Part of the induction process.
• Regular refreshers.
3.2. The Cerrejón Pilot: preliminary lessons3.2. The Cerrejón Pilot: preliminary lessons
Other lessons:
CSPB mitigates the risks associated with running an operation in the middle of an armed conflict and it is a palpable effort to enhance community well-being.
Furthermore, since private and public security forces assist in Cerrejón’s security, it is important that their behaviour is consistent with the promotion of human rights.
This enhances Cerrejón's reputation risk management, reduces litigation and financial risks and preserves the Company's social licence to operate into the future.