A set of 20 revised and updated tools intended for …...together all other community development...

A set of 20 revised andupdated tools intended for use throughout themining project cycle

COMMUNITY DEVELOPMENT

TOOLKIT

Community development is theprocess of increasing the strengthand effectiveness of communities,improving people’s quality of life and enabling people to participate in decision making to achieve greaterlong-term control over their lives.Sustainable community developmentprograms are those that contribute to the community’s long-termdevelopment needs and priorities and ensure a fairer distribution of the costs, benefits, risks andresponsibilities associated withmining activities. The essentialelement of sustainability incommunity development is thatactions must be community plannedand driven, not imposed by donors or companies. Mining and mineral-processing activities can play acentral role in sustainable communitydevelopment by acting as a catalystfor positive economic and socialchange in areas that may otherwisehave limited opportunities foreconomic and social development.They can also influence the equitabledistribution of mine-related benefitsby ensuring that opportunities arecreated for women and vulnerableand/or marginalized groups such as Indigenous Peoples, ethnicminorities and the economicallydisplaced.

INTRODUCTIONPreface 05 Background to the project 07Target audience 08Structure of the toolkit 09Acronyms 12

MINING AND COMMUNITY DEVELOPMENTGoals and processes, and opportunities to link 15community development to the mining and metals project cycle

COMMUNITY DEVELOPMENT TOOLSThe tools provide practical guidance for all stages of 35 the community development process

RELATIONSHIPS TOOLSThe central set of activities that underpins and binds 43 together all other community development activities

PLANNING TOOLSPlanning tools are used for planning the resources, 83both human and financial, that will be needed to undertake community development activities or to expand or adopt new programs

ASSESSMENT TOOLSThese tools help people to understand the potential 125risks and impacts of the mine on surrounding communities and other stakeholders

MANAGEMENT TOOLSMethods and approaches for mitigating potential 153mine impacts and enhancing benefits to maximize community development

MONITORING AND EVALUATION TOOLSHow to monitor and evaluate community development 187activities and measure progress towards program goals

GLOSSARY AND REFERENCESDefinitions of community development terms and 203concepts used in this toolkit and key sources of further information

Acknowledgements 220

INTR

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Preface

Background to the project

Target audience

Structure of the toolkit

Acronyms

INTRODUCTION

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THE TOOLKIT PROVIDES PRACTICAL GUIDANCE FOR ALL STAGES OF THE COMMUNITY DEVELOPMENT PROCESS – FROM EXPLORATION THROUGH CONSTRUCTION, OPERATIONS, AND EVENTUALLY DECOMMISSIONING AND CLOSURE, INCLUDING THE POST-CLOSURE ENVIRONMENT.

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05Community Development Toolkit

Introduction

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The original Community Development Toolkit(CDT), which this document updates andreplaces, was produced in 2005. It was theproduct of a joint project between the WorldBank Group’s Oil, Gas and Mining PolicyDivision, the Energy Sector ManagementAssistance Program (ESMAP) and theInternational Council on Mining and Metals(ICMM). The development of this revisedtoolkit was informed by a review of theusage of the 2005 version. It was alsoinformed by approaches developed in theintervening period by other organizations,notably the International FinanceCorporation (IFC).

This toolkit aims to:

• foster constructive working relationships and alliances among communities, companies and governments

• build capacity within governments, companies and communities to addresssustainable development issues at the local level

• promote the value-adding potential of mine development and operation in support of local and regional social and economic sustainable development efforts

• improve opportunities for the sustainable development of communities around mining and metals operations and regions during all phases of the mining and metals cycle.

“The revised toolkit draws upon work on sustainable development that has emerged since the 2005 version was published.”

06 Community Development Toolkit

Introductioncontinued

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N The revised toolkit draws upon work onsustainable community development thathas emerged since the 2005 version waspublished. This includes IFC guidance andreports such as

Stakeholder Engagement: A Good Practice Handbook for Companies Doing Business in Emerging Markets (2007),

A Guide to Designing and Implementing Grievance Mechanisms for DevelopmentProjects (2008),

Projects and People: A Handbook for Addressing Project-Induced In-Migration(2009),

Strategic Community Investment: A Good Practice Handbook for Companies DoingBusiness in Emerging Markets (2010)

and ICMM’s good practice guides such as

Planning for Integrated Mine Closure: Toolkit (2008),

Human Rights in the Mining and Metals Industry: Overview, Management Approachand Issues (2009),

Human Rights in the Mining and Metals Industry: Handling and Resolving LocalLevel Concerns and Grievances (2009),

Mining Partnerships for Development: Using Resource Endowments to FosterSustainable Development. Mapping In-Country Partnerships (2010),

Good Practice Guide: Indigenous Peoples and Mining (2010) and

Human Rights in the Mining and Metals Industry: Integrating Human Rights Due Diligence into Corporate RiskManagement (2012).

The result is this revised and upgradedCommunity Development Toolkit, whichpresents a set of 20 tools intended for use throughout the mining project cycle and that cover a range of communitydevelopment approaches under the headings of relationships, planning,assessment, management, and monitoringand evaluation.

The Toolkit complements other work undertaken by ICMM (see column to the left),including ICMM’s Mining Partnerships for Development Toolkit1 which can be used bymine managers and those interested inpromoting economic and socialdevelopment.

1 Available at: www.icmm.com/mpdtoolkit


01. Implement and maintain ethical business practices and sound systems of corporate governance.

02. Integrate sustainable development considerations within the corporate decision-making process.

03. Uphold fundamental human rights and respect cultures, customs and values in dealings with employees and others who are affected by our activities.

04. Implement risk management strategies based on valid data and sound science.

05. Seek continual improvement of our health and safety performance.

06. Seek continual improvement of our environmental performance.

07. Contribute to conservation of biodiversity and integrated approaches to land use planning.

08. Facilitate and encourage responsible product design, use, re-use, recycling and disposal of our products.

09. Contribute to the social, economic and institutional development of the communities in which we operate.

10. Implement effective and transparent engagement, communication and independently verified reporting arrangements with our stakeholders.

Box 1: ICMM 10 Principles

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NBackground to the project

ICMM affirmed its commitment to workcollaboratively with other stakeholders in the Toronto Declaration of May 2002. The ICMM Sustainable DevelopmentFramework2 followed shortly thereafter(2003). From ICMM’s perspective, this project provides an opportunity to developtools to assist members, and others,implement ICMM’s 10 Principles (see Box 1)and supporting position statements, againstwhich corporate members have committedto measure and report their performance.

In particular, the project is relevant to theninth principle where ICMM members havecommitted to “contribute to the social,economic and institutional development ofthe communities in which we operate”.


2 See www.icmm.com/our-work/sustainable-development-framework


INTR

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N Target audience

The toolkit provides practical guidance forall stages of the community developmentprocess – from exploration throughconstruction, operations, and eventuallydecommissioning and closure, including the post-closure environment.

Because it is the mining and metalscompany (rather than the government or the community) that applies for explorationand/or mining licences, selects explorationtargets, commissions feasibility studies,contracts construction activities, managesthe mine during its operational life, andprepares and implements the mine closureplan, it became evident during preparation of the toolkit that much of it should be aimed at enabling mining and metalcompanies to undertake these various steps in a manner that would gather andtake account of community views and would contribute to sustainable communitydevelopment. When reviewing the usage ofthe 2005 version of the CDT, mining andmetals company staff were highlighted asprimary users. Thus, the updated version is aimed primarily at companies from themining and extractives industry. That said,there are tools that could be used bycommunities where the mining and metalscompany could play a facilitator role.Governments may also decide to modifytheir licensing regulations to provide aframework that would set rules and allocateresponsibilities for undertaking some of theactions included in the toolkit.

In addition to being a valuable resource forcompanies, communities and governmentagencies, the toolkit could also be a resourceand guide for civil society groups such asnon-governmental organizations (NGOs) and community-based organization (CBOs),academics, training and education providers,trade unions, business associations andmining services companies – in fact, anyonewho is interested in facilitating communitydevelopment. Ideally, most of the tools willbe used by several groups working together.



Structure of the toolkit

The toolkit is divided into four sections (seeTable 1):

• an introduction, describing the background to the project; how it builds on previous work by the World Bank Group and the mining, minerals and metals industry; the target audience; and the structure of the toolkit

• a brief discussion of mining and community development, including community development goals and processes, and opportunities to link community development to the mining and metals project cycle. This section includes good practice principles for sustainable community development, advice on the scheduling of development activities in the mining and metals cycle, and on the roles of government, companies and communities

• a community development tools section that introduces the essential building blocks of community development and describes the 20 tools and how to use them (see Table 2). Each community developmenttool is supported by detailed, step-by-step instructions on how and when to apply the tool. The tools are designed to be easily extracted for use in the field

• a glossary and references section, including a glossary to some important community development terms and concepts, and a list of referenced sources.

Introduction

Mining and community development

Community development tools• relationships tools• planning tools• assessment tools• management tools• monitoring and evaluation tools

Glossary and references

Section

Background, objectives and target audience forthe toolkit.

Definition of community development, keyprinciples for sustainable community development,phases of the mining and metals project cycle and stakeholder roles and responsibilities.

Twenty practical tools for community development supported by step-by-step guidanceto assist in using them.

Glossary and a list of referenced sources.

Key points

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Table 1: Community Development Toolkit at a glance


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Acronyms

ABCD asset based community development approach ASM artisanal and small-scale miningBPD Business Partners for DevelopmentCAO Compliance Advisor/OmbudsmanCAP community action planCBO community-based organisationCD community developmentCDT Community Development ToolkitCI community investmentCR community relationsCRO community relations officerCSR corporate social responsibilityE3 Environmental Excellence in ExplorationESG environment, social and governanceESIAs environmental and social impacts assessmentsESMAP Energy Sector Management Assistance ProgramESR environment and social responsibilityGAS Goal Attainment ScalingGRI Global Reporting InitiativeHRIA human rights impact assessmentHSEC health, safety, environment and communityICMM International Council on Mining and MetalsIFC International Finance CorporationIGT Implementation Guidance Tools (for the Voluntary Principles on Security and

Human Rights)ISO International Organization for Standardization M&E monitoring and evaluationNGO non-government organizationNPV Net Present Value PDAC Prospectors and Developers Association of CanadaPRA Participatory Rural Analysis (or Participatory Rapid Analysis)RAP resettlement action planSIA social impact assessmentSEMS Social and Environmental Management System SIOA social impact and opportunities assessmentSMART Simple, Measurable, Accessible, Relevant and TimelySME small and medium scale enterpriseSWOT strengths, weaknesses, opportunities and threats



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Goals and processes, andopportunities to linkcommunity development to the mining and metalsproject cycle

MINING AND COMMUNITYDEVELOPMENT

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COMMUNITY DEVELOPMENT IS THE PROCESS OF INCREASING THE STRENGTHAND EFFECTIVENESS OFCOMMUNITIES, IMPROVINGPEOPLE’S QUALITY OF LIFE AND ENABLING PEOPLE TOPARTICIPATE IN DECISIONMAKING TO ACHIEVE GREATERLONG-TERM CONTROL OVERTHEIR LIVES.

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3 See International Organization for Standardization (ISO), ISO 26000 Social Responsibility Standard, Geneva, 2010 for recent discussions of the social responsibility obligations of companies.


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TThe relationship betweenmining and sustainablecommunity development

Managing risks is an essential factor ofsuccess for mining and metals companies.Many risks are financial or technical innature but, increasingly, “softer” elements of projects (e.g. social and environmentalaspects) are becoming greater risks tomanage. Societal expectations of corporatesocial responsibility (CSR) are encouragingcompanies to go beyond mitigating theirimpacts and to actively contribute tosustainable community development in hostcountries and neighbourhoods, in order tomaintain their “social licence to operate”.3

Community development is the process ofincreasing the strength and effectiveness of communities, improving people’s qualityof life and enabling people to participate in decision making to achieve greater long-term control over their lives.Sustainable community developmentprograms are those that contribute to the long-term strengthening of communityviability. Often, the most sustainablebeneficial legacies that communitydevelopment programs around a mining and metals operation may leave are in the skills and capacities that training,employment and education programs forlocal people provide.

Mining and community development

The essential element of a sustainablecommunity development program is that itcan survive without input from a mining andmetals company, especially after the miningproject is finished. Thus, communitysustainability can be supported by miningpractices that help convert one local asset,namely non-renewable natural resourcecapital, into other local assets, namelysustainable social, economic andenvironmental capital.

The role of the mining and metals industryThe mining and metals industry can play acentral role in community development byacting as an influence for positive change in areas that may otherwise have little, if any, opportunity for economic and socialdevelopment. This is especially true insituations where mining can be a catalyst to help build up other (non-mining)sustainable income sources in the areaswhere the mines are located so thatcommunities are able to developindependently of the mine and are thus ableto survive the exhaustion of the ore reservesand the closure of the mining and metalsoperation. An important means of achievingthis is to foster dynamic linkages betweencommunities and external partners.


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T During the mine life, there can be tensionsinvolving the distribution of mining revenuesin a country, between local and nationallevels. This arises from the fact that mineralwealth is usually vested in nationalgovernments rather than owned by peopleliving in the mining area, and nationalgovernments may have priorities fordevelopment that differ from those of the communities neighbouring the mine.4

For companies who see sustainablecommunity development as a positive factorfor their mining activities, however, there is a pressing need to expand the positivebenefits and mitigate the harmfuloperational impacts in the local area,regardless of whether the centralgovernment chooses to return a proportionof royalty payments and other miningrevenues to the local community. At theminimum, companies must ensure thatharmful project impacts are alleviated, forexample by providing job opportunities, ortraining leading to job opportunities, for any residents whose livelihoods are reducedby the mine’s land take. Going further,companies should act as the anchor orcatalyst for broader projects that providealternative livelihood benefits for a widerange of people, and not only for mine-related businesses. This could be, forexample, by guaranteeing enterprisedevelopment loans at a reduced interestrate, or by signing contracts to purchasegoods during the vulnerable start-up yearsof local businesses.

This is harder to achieve, and thereforeneeds to be firmly embedded in partnershipswith other important development actors,such as governments and donor agencies.Encouraging central governments to investmining revenues in the regions most affectedby mining is important, but it is equallyessential to work with local and regionalgovernments on local development programs.Most governments have their own national,regional and local development plans.Emphasizing the need to build multi-stakeholder partnerships, ICMM’s MiningPartnerships for Development Toolkit5

responds to a clear need for a moresystematic and objective way to quantify andagree ways to enhance mining’s economicand social contribution.

Community development is good for business Improved social performance generally leads to better financial returns. While thebusiness case for community developmentwill always be specific to the individualcompany or operation, some commonthemes are clear. If communities benefitgreatly from a mining operation, then theyhave a significant stake in seeing the mineoperate successfully and will help toovercome obstacles that could adverselyaffect the mining operation, and in turnreducing risk for the company. By contributingto local community well-being anddevelopment, benefits to companies may include:

Reputation: Enhanced reputation in the financial community, in government andamong other stakeholders.

Resources: Improved access to resources, such as ore bodies, in environments that are increasingly challenging or remote.

4 For further discussion on this topic, see ICMM, Minerals Taxation Regimes; A Review of Issues and Challenges in Their Design and Application, February 2009.


Mining and community developmentcontinued

6 IFC, Strategic Community Investment: A Good Practice Handbook for Companies Doing Business in Emerging Markets, Washington DC, June 2010.

Ease approvals processes and help resolvedisputes: Better relations with localgovernments, NGOs and communities thatcan help ease approvals processes forproject development, expansion and closureand help resolve disputes and avoidsituations in which local groups might hinderor even prevent mining from taking place.

Reduced closure costs and liabilities:Resulting from better management of socialrisk, better management of communityexpectations and reduced communitydependency on the operations.

Efficiency and productivity of local support services: Greater efficiency and productivityowing to the availability of improved localsupport services.

Local workforce: Improved education and skill levels of the local workforce enablingcompanies to reduce their dependence onexpensive expatriates and increase localknowledge in operations – knowledge thatcan save time, effort, frustration and money.

Employees: Improved employee recruitment, retention and engagement.

In other words, community development is a reciprocal process. By supportingcommunities to develop themselves in asustainable manner, a mining and metalscompany is simultaneously helping its ownbusiness to succeed. Mining operations andtheir community development programsshould be viewed as a mutually beneficialpartnership process to achieve sustainability.

Good practice principles forsustainable community developmentThe most effective and sustainablecommunity development activities reflectsome basic principles:

Adopt a strategic approach: Developmentactivities at the operational level are linkedto long-term strategic objectives for thecompany and are also aligned with existingand future community and/or regionaldevelopment plans. Recent IFC guidance oncommunity investments advises companiesto move beyond well-meaning actions tostrategic community development programs,and suggests parameters for filteringprograms.6

Ensure consultation and participation:Local communities are actively involved in all stages of project conception, design andimplementation, including closure and post-closure. Include a diversity ofcommunity members, ensuring that womenand vulnerable and/or marginalized groupsare included. Ensuring that communities areenabled to participate fully in the decisionsmade about the allocation of benefits thatflow from projects will offer the best chancefor community development programsustainability. This will be achieved byconcerted stakeholder engagement activities that demystify the mining andmetals process, empowering communitymembers to understand the motivations aswell as project plans of the companies sothat they can make informed choices.

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Work in partnership: Private, governmental,NGO and community organizations bringingdifferent skills and resources – but sharedinterests and objectives – can achieve morethrough working together than individually.Formal or informal partnerships can alsoreduce costs, avoid duplication of existinginitiatives and reduce communitydependency on the mining and metalsoperation.

Strengthen capacity: Programs thatemphasize strengthening of localcommunity, NGO and government capacityare more sustainable in the long term than the supply of cash, materials orinfrastructure. While infrastructure is oftenessential for the development of remotecommunities, it will only be sustained if thereis an adequate maintenance programsupported by a well-designed, participatoryprocess including local communities andgovernments.

Measuring and communicating: In order tomanage community development programswell and to ensure that they work towardssustainable goals, it is important to monitorthe programs and to periodically evaluatethem against selected sustainabilityindicators. Regular measurement, ormonitoring and evaluation, enables theadjustment of programs to enhance success.Including community members in thisprocess, by using participatory monitoringprocesses, is ideal and also facilitates thecommunication of program progress to the wider community. Additionalcommunication of community developmentprogram progress and challenges, throughinternal and external reporting of results,encourages a broader support base forprograms.

Mining and metals Operations support community developmentThis is the focus of the toolkit. While thetools have broad applicability, there is nosimple or single blueprint for how they will be used at any particular site. Mining and metals operations’ support forcommunity development is alwaysdetermined by local conditions – by thenature and scale of the operation, localgovernment resources and local people’sspecific needs and priorities.

Conventionally, mining companies havewanted to take immediate measures toalleviate poverty or address needs theyobserved in the neighbourhood of theirmining or metals projects. Typically, this has been by building infrastructure such as schools, clinics or hospitals, and bysponsoring external health and educationservice providers to create new programs.

Often, these efforts, although appreciated as generous gifts to local communities, have not lasted beyond the life of the mine,sometimes not even beyond the tenure ofthe particular company staff that instigatedthe projects. The reasons for this arebecause often the projects:

• were chosen by the mining company people and/or the local elites

• were built or run by outsiders, with littlemanagement involvement from local community members and limited capacity building to allow a handover of responsibility over time

• required technology, resources or knowledge not locally available to maintain them.

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The sum of these factors is that, with thebest of intentions, the projects were “donated”to local communities and they therefore didnot feel any particular ownership of themnor did they have the needed capabilities tosustain them, resulting in a progressive, andoften speedy, decline once external supportwas withdrawn.

Further, if local communities andgovernment agencies become accustomedto mining companies taking charge of theprovision of essential infrastructure andservices, an unhealthy dependencyrelationship can evolve, working againstsustainability.

Mining and metals companies should take astrategic perspective and focus upon theirown areas of expertise to determine wherethose intersect with community needs. In that way, there is a reduced chance ofcompanies filling roles that should be theresponsibility of others. For example, schoolsand clinics are the areas of expertise ofeducational and health experts and theresponsibility of governments, not corebusiness skills for mining companies.Certainly, companies have building expertise,but the buildings are only the skeleton of the health and education systems, and notmuch use without teachers, nurses, coursematerials and medicines. Even where miningcompanies are willing and able to put inplace such health and education services,there remains the inherent risk, ifimplemented solely by a company, that whenthe mining company ceases its activities anddeparts, these services will collapse.

By contrast, mining and metals operationsdo have skills to share with communities in a range of trades, administration,management, finance, operating andmaintaining mobile and fixed machinery,improving local supplier and contractorcapability, and so on. Partnership programsfor local apprentices in these areas ofcapacity building will be more beneficial inthe long term than the traditional list ofinfrastructure projects.

The challenge, however, is to not only build the skills but also facilitate the growthof other activities in parallel to mining. For example, the Lac La Ronge Indian Bandinitially developed trucking and cateringskills, with support from the local uraniummines in northern Canada, as part of aprogram of localizing the miner’sprocurement needs. Over time, theyexpanded their business away from themines and increasing annual turnover toCan$65 million by supplying services in the surrounding region. In addition tohelping train local community members toprovide goods and services, companies canalso consider supporting microcredit andother entrepreneurial schemes to helpencourage small business.

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Local agriculture development is also a keyarea of community sustainability. One of thesustainability risks faced by communities isthat local agricultural production can declineduring the mining boom. The loss of localagriculture capabilities can be a cause ofsevere problems at the time of mine closurewhen a community no longer has the incometo purchase most of its food from outside.Actively supporting and fostering localagriculture can prevent this risk and improve sustainable livelihoods for farmingcommunities in a mining project area. Forexample, in Ghana, Newmont establishedthe Ahafo Agribusiness Growth Initiative(AAGI) in partnership with an NGO, AfricanConnections. The AAGI program aimed toincrease farmers’ productivity throughimproved training for agriculturaltechniques, crop varieties, marketing,networking and access to finance. In the first few years of AAGI, almost 200 farmergroups were formed in eight communitieswith a total participation of 2,647 farmerswith the project attracting donor funding andmicrocredit participation from local banks.7

Human rights and community developmentSince the publication of the original CDTin 2005, several developments have taken place in the human rights arena around CSR in general and the extractives sector in particular.

Of particular relevance is the work of theSpecial Representative of the UN Secretary-General, Professor John Ruggie, on the issue of human rights and transnationalcorporations and other business enterprises.The UN’s “Protect, Respect and Remedy”framework, approved in 2008, has beenbroadly accepted and outlines the distinctive,albeit complementary, roles of states andcompanies in relation to human rights.Governments have the responsibility to“protect” human rights, which is analogousto their primary role in development.Companies must “respect” human rights,which means not infringing on enjoyment ofrights by others and not impeding the socialand economic development of communities.“Remedy” refers to the need for access byvictims to effective remedy, both judicial and non-judicial.

Recognizing that projects and operations canhave potential human rights impacts, Ruggiespecifically recommends that companiescarry out human rights due diligence byassessing their actual and potential humanrights impacts. Companies should alsoembrace their responsibility to contribute to the development of communities andrecognize that projects can only besuccessful if they enjoy broad support oflocal communities. The role of governmentsand companies in the human rights space is different; however, it is clear that at aminimum companies can play an importantcatalytic role in the human rights field.8

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7 www.icmm.com/page/2222/newmonts-agribusiness-initiative-supports-local-communities

8 See ICMM’s three Guidance documents on Human Rights in the Metals and Mining Industry. Available at: www.icmm.com/page/14809/human-rights-in-the-mining-and-metals-industry-overview-management-approach-and-issues


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Community development and conflictCompanies can also play a catalytic rolewhen operating in conflict or post-conflictstates where investment from companiesmay be one of the few means of socio-economic development. Robust riskmanagement and strategic communityinvestment in such contexts is critical. Risk management approaches shouldinclude (i) adhering to internationalstandards such as the Voluntary Principleson Security and Human Rights and applyingthe supporting Implementation GuidanceTools (IGT)9, (ii) considering the potential forinvestment to negatively affect the securityof local communities or exacerbate conflictsand (iii) drawing on existing guidance in this area.10

Context is critical in conflict situations, so all community development activities needto be informed by the local environment and adapted as the situation changes. TheIGT provides good advice for companies onhow to undertake stakeholder engagementin conflict-sensitive environments.

Gender and inclusion Underlying the use of the toolkit is animportant gender dimension. Typically,mining development has a gender biaswhereby most of the benefits (employment,income, royalties and infrastructureprojects) tend to accrue to men and thenegative impacts (cultural disruption, socialstress, environmental harm and domesticviolence) affect women and childrendisproportionately.

Corrective actions are available that canredress this situation and improve theeconomic and social empowerment ofwomen and improve the well-being, safetyand security of both women and children.Increasing the proportion of women inemployment, for example, helps ensure abroader spread of community benefits.

Greater attention to the gender aspects ofmining operations can help companies gainand maintain their social licence to operate,improve the quality of life and socio-economic conditions of impacted andaffected women and men, uphold humanrights and minimize the negative impacts ofmining operations. Gender considerationsshould be integrated into social baselinesand impact assessments, stakeholderengagement and community developmentprogram planning, and in the monitoring and reporting on all of these activities. This should be done from the start, but if ithas not been, then specific studies andplanning processes can be undertaken toredress the balance.11 Each stakeholdergroup (government, companies, communitiesand civil society groups) should examinetheir own activities to see how well gendersare represented and how much their viewsand concerns are taken into account indevelopment projects.

9 http://voluntaryprinciples.org/files/VPs_IGT_Final_13-09-11.pdf

10 See International Alert, Conflict-Sensitive Business Practice: Guidance for Extractive Industries, London, March 2005, for more on this topic.

11 For further guidance, see Rio Tinto, Why Gender Matters, Australia, 2009, especially Part 2: Guidance on “how to” integrate gender considerations into Communities work at Rio Tinto.


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12 www.icmm.com/library/indigenouspeoplesguide

13 For further guidance, see ICMM, CASM and IFC, Working Together: How Large-scale Mining Can Engage with Artisanal and Small-scale Miners, Pilot Version, London, 2010. Available at: www.icmm.com/page/17638/new-publication-on-engaging-with-artisanal-and-small-scale-miners

Indigenous PeoplesSome mining and metals projects occur inplaces where there are populations ofIndigenous Peoples. Due to their distinct way of life, and frequently their vulnerableposition within society, there is an increasedneed for companies to acknowledge andrespect the social, economic, environmentaland cultural interests of Indigenous Peoples. All development programs should be basedon engaging and consulting with IndigenousPeoples in a fair, timely and culturallyappropriate way throughout the projectcycle. See ICMM’s Position Statement onMining and Indigenous Peoples and a Good Practice Guide: Indigenous Peoplesand Mining12 for detailed guidance on:

• engagement and indigenous participation

• laying the groundwork

• agreements

• managing impacts and sharing benefits

• dealing with grievances.

Artisanal and small-scale mining (ASM) In certain places, artisanal and small-scaleminers may be displaced by the developmentof a large mine with modern technology. This can create great hardship for thosewhose livelihood was dependent upon thelocal mining activity, even if it was not legallysanctioned, which can often be the case. The hardship can lead to resentment andpoor community relations for the mine and it is good practice for mines displacing ASMactivity to work with the local miners to assistthem in finding alternative livelihoods.13

ASM activity can also develop around anexploration or mining project throughopportunistic speculation. In both cases,relationships between a company and theASM miners are critical and investments in developing and maintaining theserelationships can minimize and potentiallymitigate future social challenges.

Acid test for sustainable communitydevelopmentWhen reviewing programs for communitydevelopment, mining companies should askthemselves how those programs will farewhen the mine has closed (rememberingthat this may happen sooner than planned).If ongoing company support, leadership andmaintenance will be required to keep aprogram going in good order, then it is notsustainable and will need to be reconsidered.This is where the real contrast betweenhighly visible, tangible projects like roadbuilding, and low-key, hard-to-demonstrateprograms like women’s literacy programs is sharpest.

A road will obviously be useful, with people,bicycles and buses using it every day whilethe mine is there to maintain it. Picture thesame road some years after the miningoperation has closed, if neither the localdistrict government, the nationalgovernment nor the local community feels the responsibility nor has the capacityto continue its upkeep. It may well bepotholed, crumbling and likely to get worse.Or, rehabilitation requirements may havenecessitated its removal, meaning that itshould never have been classified as asustainable community benefit at all. In either case, unless a major constructionproject like a road is developed as part of

Roles and responsibilities forcommunity development14

Community development needs clearlydefined roles and responsibilities ofgovernment, companies, NGOs/CBOs andcommunities (see Table 3), and sharedcommitment from all levels within anorganization.

The precise roles of the various participantsdepend on local circumstances, and changeduring the course of both the mine and thecommunity development process. However,some broad principles are clear:

Companies: Have a responsibility to respect human rights and can play an activerole to support community development.Where government capacity is insufficient,companies may be forced to take aleadership role but to the extent possible itshould be shared with NGOs and communityorganizations to ensure companies do notusurp the role of government at the locallevel. In the longer term, however, theyshould focus on ensuring that local initiativeswork constructively alongside governmentdevelopment programs and on buildingpartnerships to help develop sustainablecommunity capacities and resources.

Government: Has the primary responsibilityfor protecting human rights and ensuringthat communities benefit from development.Governments should take the lead in settingpolicy and standards to ensure developmenttakes place at the local level, planning thedevelopment of social and physicalinfrastructure and land use, developingsystems for project monitoring and evaluation,and protecting the rights and interests ofcitizens. In some areas, governments canrequire mining projects to contribute

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14 Advice on capacity building for all stakeholder groups is available in Chapter 5 of the IFC’s Strategic Community Investment: A Good Practice Handbook for Companies Doing Business in Emerging Markets, Washington DC, June 2010.


a community-centred program, withcommunity plans and capacity for ongoingmanagement and maintenance, or is part of a partnership initiative with the hostgovernment, who will therefore takeresponsibility for its care and upkeep whenthe mine is gone, then it is unlikely to besustainable.

By comparison, women’s literacy andnumeracy programs may yield much moremodest demonstrable results. There may not have been any follow-on enrolments in adult education classes nor womenachieving high-school diplomas. However, if a number of women became literate andmanaged bank accounts that helped them to save money, establish and operate smallbusiness enterprises and use them to helptheir families, those skills will not be lost.Further, if some of the women valueeducation more as a result of their experienceof learning, and encourage their children tocomplete their schooling so that schoolretention rates are raised, the benefits oftraining those women will multiply andcontinue. And there is no need for themining company to maintain a presence tosustain the benefits of the program afterclosure. Although smaller scale, this sort ofdevelopment is sustainable.

For community development projects to besustainable they must be conceived,developed, implemented and managed inpartnership with their beneficiaries.Ensuring that government authorities arealso supportive, or at least aware, of thedevelopment project will also support itschances of being sustainable.


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Companies

• Manage exploration, construction, operation and closure of mine in accordance with regulatory requirements

• Catalyst for action at the community level

• Stakeholder co-ordination around project site

• Financial, material and facilities supportfor local community

• Transfer of technical and management skills and expertise to local community

• Monitoring and evaluation

Table 3: Typical roles and responsibilities of stakeholders

Government

• Strategic leadership,priority setting

• Strategic co-ordination and planning

• Deliver local services

• Provide policy and regulatory framework for project development, operation, closure and post-closure

• Support capacity building at the local level, including monitoring capabilities

• Leverage state and external resources


Community groups

• Local needs definition and prioritization

• Local knowledge and values

• Community planningand mobilization

• Mobilization of local assets and resources


• Internal organization and conflict resolution

NGOs/CBOs etc.

• Local needs assessment

• Local capacity building and institutional strengthening

• Community project design and implementation

• Leverage external funding for community support


substantially to sustainable developmentthrough project agreements, potentiallystipulating it in investment agreements.

Community groups: Play a central role.Community development is essentially theprocess through which communities address locally defined goals and achieveimprovement in their quality of life.Development reflects their needs, prioritiesand aspirations; is achieved largely throughtheir ownership and commitment to locallydefined development goals; and is sustainedwhen they have the capacity, confidence andopportunity to plan appropriate strategiesand mobilize resources to fulfil theirdevelopment goals.

NGOs/CBOs: Can play an important role inadvocating on behalf of local communitiesand in delivering local services. The interestsof NGOs/CBOs need to be understood byother development actors, as they may bedifferent to those of the local community.NGOs/CBOs regularly partner withcompanies to support, and in many casesimplement, company communitydevelopment projects.

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15 World Bank, Mining Foundations, Trusts and Funds: A Sourcebook, Washington DC, June 2010. Available at: http://go.worldbank.org/ICB0VQBWM0

16 See www.pdac.ca/e3plus


In addition, international developmentagencies may also play a role in communitydevelopment in the mining sector, althoughthey are not always present in areas wheremining takes place. Donors have uniqueinfluence and responsibility, particularly inharmonizing the standards by whichcommunities are treated and in bringinginfluence to bear on public and private sectordevelopment actors. They provide animportant source of development resources,expertise and experience and can advisegovernments, companies, NGOs/CBOs andcommunities of good practice as well ashelping mobilize financial support for local development projects. Internationalorganizations can play a particularly effectiverole in encouraging regional managementapproaches and the co-ordinatedmanagement of cumulative impacts.

Although each of the developmentparticipants described above has a distinctrole to play in the sustainable communitydevelopment process, great benefits canderive from partnerships between several of them. For example, in Peru, the FondoMinero Antamina (FMA), in co-operation withthe municipal and national governments,identified five key areas for sustainabledevelopment programs, one of which was nutrition. The largest programsupported by the FMA to date is the AllyMicuy (meaning “good nutrition” in Quechua)health program addressing childmalnutrition. Ally Micuy is being implementedby two NGOs (Caritas in the northern half of Ancash Region and ADRA in the south).

After operating for two years, a reduction inchronic malnutrition among children under three years of age by almost 7% has beenattributed to the program, with over 31,000children benefiting from the program todate.15

Community development in the mining project cycleCommunity development activities span all phases of the mining and metals projectcycle. All present particular challenges andopportunities. It is important to rememberthat the relationships between miningcompanies, local communities and otherstakeholders begin long before constructionof a mine commences, and companies wouldbe wise to invest in establishing good localrelationships at the earliest stages possible.While the toolkit includes guidelines onwhen different tools are applicable, as apractical rule of thumb the sooner you start,the better. Processes can more easily beslowed down than speeded up to meet acommunity’s needs. Additional guidance forthe exploration phases of project developmentis provided in the Prospectors andDevelopers Association of Canada’s (PDAC)Environmental Excellence in Exploration(E3)16 – free registration is provided to anonline reference (an e-manual) of bestpractices in environmental management and community engagement practices forminerals exploration globally. Where leasesor projects are acquired from othercompanies, an assessment of relationshiplegacies must be made at the earliestpossible stage and steps towardsamelioration taken as soon as possible,if needed.

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17 For advice, see ICMM, Planning for Integrated Mine Closure: Toolkit, London, 2008. Available at: www.icmm.com

Special attention is needed at theconstruction stage – which can be highlydisruptive for communities unless carefullymanaged. There is always an influx ofconstruction workers from outside theregion, typically with little affinity for localpeople, their customs or their needs. This isthe stage when community incomes changedrastically with “haves” and “have nots”starting to emerge according to whichindividuals and families receive employmentand/or compensation and which do not.During this time, traditional authoritystructures and family relationships can beweakened, and domestic violence and otherforms of social breakdown can increase inresponse to community stresses.

There can also be unintended consequences– especially at the construction stage. Theconstruction of a mine in a remote locationcan place significant demands on localtransportation services, accommodation,land, food and other supplies, causing priceincreases that benefit suppliers andfarmers. While positive for one group, thiscan mean that local people no longer haveeasy access to transportation to otherlocations, the delivery of supplies to localstores is disrupted, and the price increasesfor food and suppliers harms those withlittle or no income – typically women andchildren – who are least able to protectthemselves. The end of the constructionperiod also heralds the departure of largenumbers of workers (and their dependants)and can cause a significant reduction in local employment as the project establishesits operational workforce.

The operational period of a mine typicallyprovides the most steady-state environmentfor community development projects withlocal communities. During this time,companies have a greater sense ofconfidence around their long-term presenceand are able to make planning andresourcing decisions that can extend beyondannual budget cycles, and the turnover ofpersonnel can slow down to allow for thedevelopment of strong relationships withcommunity stakeholders.

All stakeholders should start planning forclosure from the earliest opportunity. Taking into account closure needs andimplications will inform initial mine design,town/accommodation and infrastructureprovision, and the nature of developmentprojects that are supported by a company.Planning for closure should becomeprogressively more detailed as the mine life advances.17 It is critically important toensure that all planning takes post-closureaspects into consideration. This is particularlythe case where long-term post-closuremonitoring will be required.

The importance of monitoring and evaluationcannot be overstated, especially sincerelationships with and impacts on localcommunities will continue after the mine isfinished. Effective monitoring and evaluationprograms ensure that improvements todevelopment projects are fed back intoproject design and implementation and allow for adaptation as the operating context changes.


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Table 4 shows the sequence of communitydevelopment (CD) tools and activitiesthroughout the mining and metals projectcycle. The depth and breadth of communitydevelopment activities is greatest duringconstruction and operations, having built up during exploration and feasibility andthen tapering off gradually duringdecommissioning and closure.

Many of those activities are repeatedthroughout the project cycle – assessinglocal community or regulatory conditions,identifying stakeholders and developinghuman resources and capacities will beongoing through a project.

The earlier these activities are started, thebetter. But it is never too late to startapplying community development tools and approaches.

For sustainability, it is necessary to considerhow a community development program will cope without support from the mine,whether the mine closes in five years or fiftyyears. Program plans should include exitstrategies from the outset, that is how themining company will cede management ofprograms to another group (preferably thecommunity themselves) at a suitable time.18

18 See “Tips for developing handover and exit strategies” on p. 73 of the IFC Strategic Community Investment:A Good Practice Handbook for Companies Doing Business in Emerging Markets, Washington DC, June 2010.

“The earlier these activities are started the better.”

Exploration19

19 Detailed online guidance on best practices in exploration is available via free registration from Environmental Excellence in Exploration (E3): www.pdac.ca/e3plus


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Table 4: Description of phases of the mining project cycle and company/community interactions

Main CD activities recommended (tool numbers)

• Hire a full-time or part-time community relations officer (CRO) (13)

• Identify and establish dialogue with local stakeholders (1)

• Inform community about exploration program (3)

• Desktop study of local community (11)

• Collect basic baseline data (11)

• Manage expectations through communication (3)

• Establish a community grievance management process (5)

• Hire and buy locally (17)

• Invest in community initiatives to offset impacts and support sustainable initiatives (17)

Description

Small teams, working on short time horizonspotentially across vastareas and structured withinvery short time horizons.

The nature of the relationship betweencompany and localcommunities is established,and generally sets the tone of relationship fromthen on. This is achallenging time since, in the earliest stages atleast, there is an in-builtmismatch between theinterests of communitieswho want full informationdisclosure and a long-standing relationship andthe interests of explorationteams who have nocertainty of their futureactivities in the region andwill move on if there areno promising prospects for follow-up.

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Feasibility

Table 4: Description of phases of the mining project cycle and company/community interactionscontinued


• Engage social baseline and impact assessment experts (13)

• Hire more CROs as local study activity levels increase (13)

• Increase the level of stakeholder engagement (2, 3)

• Provide more detail about project plans and seek to understand community priorities (3)

• Grievance mechanism (5)

• Detailed socio-economic baseline study (11)

• Social impact and opportunities assessment (12)

• Ensure that communities understand uncertainty of project future (3)

• Increase community investments to offset increased activities (16)

• Expand monitoring indicators (19)

• Report on changes observed and community feedback

Description

Extensive technical studies and consultations withgovernment and localstakeholders.

Important opportunities for the company to engage with local communities to establish clearunderstanding of social,environmental anddevelopment needs,priorities, concerns, etc. aswell as inform communitiesabout possible minedevelopment scenarios and timing.

Ü


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Construction



• Expansion of community relations (CR) team (13)

• Hire impact management experts (13)

• Review and updating of stakeholder analysis (2)

• Intensive communications program (3)

• Regular program of stakeholder engagement (3)

• Grievance mechanism (5)

• Resettlement action plan and associated compensation programs for construction and operational periods (18)

• Livelihood restoration programs (16, 17)

• Detailed impact management plans (12)

• Communications for construction disruption (3, 18)

• Comprehensive impact monitoring system (19, 20)

• Completion audits may be needed

Description

Relatively short, but typically intense set of activities inthe construction phase,potentially with a largeand/or temporaryworkforce.

The influx of construction workers can be highlytraumatic for thecommunity. This phaseoften introduces significantcash into the community,sometimes for the firsttime, with profound impacts– that can be both negativeand positive – for thecommunity.

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Operations



• Full team of qualified staff on board (13)

• External expert support as needed (13)

• Dedicated and adequate community investment budget (17)

• Regular program of stakeholder engagement (3)

• Agreements with communities (14)

• Updated stakeholder analysis and records (2)

• Fully functioning grievance mechanism (5)

• Participatory program of community investments (most tools)

• Ongoing collection of updated data (11, 19)

• Additional studies as needed (12)

• Implementation of impact management plans (16, 17)

• Manage community expectations through consultation (3)

• Full-scale monitoring and evaluation program including community participation (19, 20)

• Regular internal and external reporting of progress and challenges

Description

Medium- to long-term time horizons. Period of greatestpresence and stableactivities.

Opportunities to implement long-term communitydevelopment programs,focusing on locallyidentified developmentneeds; communityparticipation; andstakeholder partnerships in program design,implementation andmonitoring.

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Decommissioning and closure



• Allocate staff time to closure planning, increasing as closure approaches (13)

• Engage stakeholders in closure planning discussions (3)

• Conduct and regularly update a closure socio-economic impact assessment (12)

• Develop impact management plans (16)

• Report on updates

Description

May be according to long- term plan or may occurprematurely. Need forclosure planning throughoutthe mining project cycle toensure that programs cansurvive.

Role and development of local partners is criticallyimportant in planning forclosure.

Even well-planned and implemented closure willlikely cause significantdecline in communityincome and tax base oflocal government.

Post-closure


• Company personnel to provide program support until finalization (13)

• Regular stakeholder updates (3)

• Completion study of end-of-project socio-economic situation (12)

• Manage and support the transition to independence of community enterprises (17)

• Report on transition progress and completion

Description

Long-term time horizon. Includes monitoring ofenvironmental impacts andsocial conditions followingclosure.

Requires clear allocation of responsibilities formonitoring and remediationof any post-closure impacts.

Support for post-closure alternative income-generation measures andsustaining the delivery ofsocial services.

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The tools provide practicalguidance for all stages of the community developmentprocess

COMMUNITY DEVELOPMENT TOOLS

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THE TOOLS PROVIDE PRACTICALGUIDANCE FOR ALL STAGES OF THE COMMUNITY DEVELOPMENTPROCESS – FROM FIRST CONTACTSBETWEEN EXPLORATIONGEOLOGISTS AND LOCALCOMMUNITY MEMBERS TODECOMMISSIONING, CLOSURE AND POST-CLOSURE.

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Community development tools

Using the tools

The tools are predominantly designed formine site managers and communityrelations staff. They will also be useful forgovernment representatives, communityofficials and members in mining regions, butmay need to be adapted for these groups.They briefly provide and simply explain someessential tools for community developmentin a way that makes them easy to learn andto use, especially if you have limited time fordevelopment jargon or theory.

By following the step-by-step approach, thecommunity development process will bebetter understood and the communitydevelopment project in and around mining andmetals operations will be better supported.

The tools have six specific objectives:

• to foster constructive working relationships among communities, companies and governments

• to support lasting improvement in the quality of life enjoyed by mining communities

• to improve understanding of local community development processes

• to facilitate community empowerment through participatory development processes

• to build local capacities and development resources

• to reduce conflict in mining communities and regions.

The tools provide practical guidance for all stages of the community development process– from first contacts between explorationgeologists and local community members, or the acquisition of existing projects, throughto construction, operations and eventuallydecommissioning, closure and post-closure.

Ideally, most of the tools will be used byseveral participants working together insome type of formal or informal partnership.For example, development opportunityranking workshops may be organized by the mining company in conjunction withcommunity members, with the participationof local government officers and facilitatedby a local NGO.

Some other tools may be used by differentparticipants from slightly differentperspectives. Strategic planning andstakeholder analysis tools, for example, may be used by each of the company,government and NGOs in a similar fashionbut with varying results, due to the differentviewpoints of each group.

The tools are a reference and a guide to helpyou work more effectively in communitydevelopment; however, they are not all-encompassing (or they would be too bulky touse!). You will find other useful sources ofadvice referred to in the text, with web linkswherever possible. These are particularlyrelevant when faced with issues requiringseparate and specific treatment, such asresettlement planning, influx managementand grievance resolution, for example, andreferences to international specialistorganizations knowledgeable about theseand other topics are provided. The tools alsodo not remove the need for knowing andobserving laws and regulations that apply toan operation.

Using the tools will not mean you will neverneed help from others. Certain aspects ofcommunity development require expertiseyou may not have. The tools should help youdecide when you need assistance and whatkind of assistance that should be.


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LS Explanation of Participatory Rural Analysis (PRA) methods20

Many of the tools described in the toolkit arefrom a suite of tools known as ParticipatoryRural Analysis (PRA). PRA is a widely usedapproach for the development of anunderstanding of community capacity andmotivation. It has been used internationallyfor more than 20 years, and is highlyeffective in identifying development needs,setting priorities and designing developmentprograms in a co-operative and participatorymanner.

People participate in local developmentevery day through their family life, livelihoodactivities and community responsibilities.PRA techniques can help you involvecommunity members in the actual planningstages of development programs, ratherthan relying solely on the opinions ofexternal development actors, therebyincreasing the likelihood of developingappropriate and sustainable plans.

Increasing the level of participation fromcommunity stakeholders, while beneficial tothe outcome of the development projects,can also bring with it some challenges, suchas increased time to allow for meaningfulparticipation of significant and potentiallyvulnerable stakeholder groups (e.g. women,youth, ethnic minorities – all of whom tendto be overlooked in conventional planningprocesses), and additional time required tobuild capacity of these groups to takeadvantage of participatory approaches.Participatory assessment and planningmethods will take you longer to develop andimplement than autocratic methods.

However, the initial outlay in time will berepaid many times over when communitiesbegin to assume control of their own destiny.

PRA is a methodology that covers a variety of useful tools rather than being a tool initself. The PRA-based tools selected for this toolkit, Community Mapping (tool 7),Institutional Analysis (tool 8) andDevelopment Opportunity Ranking (tool 9),are some of the most useful for engagingwith communities near mine sites in jointplanning exercises. These three tools enablea community to consider its physical andinstitutional structures and their strengthsand weaknesses, to identify areas they wishto improve in their community and then toassess the optimal means for achieving theirdevelopment goals. Each of these tools willbe explained in detail in the following pages.There are also many other PRA tools thatcan prove useful when working withcommunities unused to managing their owndevelopment futures.21

Community development toolscontinued

20 Most commonly known as PRA or Participatory Rural (or Rapid) Analysis. In the community development approach we are advocating in this toolkit for the minerals sector, the analysis or assessment aspects of PRA are ultimately of lesser importance than the co-operative planning aspects, so it would be more accurate to use the term Participatory Planning, which is what the assessment activities will lead to.

21 Many reference works about PRA methods can be found at www.clarku.edu/departments/idce/publications.shtml

Early participatory planning for closureNewmont, Peru

SummaryEngagement on mine closure with communities around Newmont’s Yanacocha mine wasinformed by previous experience of community protests around the company’s earlierwithdrawal from the nearby Cerro Quilish project. This experience led the Yanacocha teamto establish a permanent community centre in order to ensure that local people fullyunderstood the implications of mine closure.

Context and challengeIn 2004, there were community protests against the planned expansion of Newmont’sMinera Yanacocha mine into the neighbouring region of Cerro Quilish. Local residents tookcontrol of Cerro Quilish and the roads leading to the mine. In response to the protests, thecompany asked the government to revoke its exploration permit in the area.

Learning from the experience of responding to the community protests over Cerro Quilish,Yanacocha prioritized the development of an engagement plan with the communitiesrelating to the planned closure of Yanacocha – even though closure was many years away.

ResponseThe company recognized that the protests at Cerro Quilish were partly the result of a failureto engage with communities effectively, and sufficiently in advance. In order not to repeatthe mistake, Yanacocha worked with the community to establish a specific gathering placeto enable the mine to share its proposed closure and reclamation activities in order toprepare the community economically, socially and environmentally for life beyond the mine.

As a result of these discussions, Yanacocha’s “Center for Research in Mine Closure” wasbuilt. It provided the community with visual examples of programs that could be adoptedpost-closure, and gave regular opportunities for the community to provide feedback onways to strengthen the programs, or suggest alternatives.

Based on this feedback, the Center commissioned analysis from local scientificorganizations in order to identify the best post-closure land use options – those offeringenvironmental protection while providing long-term economic opportunities for thecommunity. The proposed options included raising alpacas, farming crops in the Andes,propagating forests and attracting “eco-tourists”.

The Center also conducted programs in order to help assess options for land reclamation,in response to the very wet climate of the mine site and the need to prevent rainwater from infiltrating into waste rock storage areas. As a result of these adaptations – whichconsisted of physically measuring water runoff and seepage rather than adapting the usualpractice of relying on mathematical modelling – the company was able to discuss impactson local water supplies post-closure with local ranchers and farmers.

Outcomes Since the Yanacocha mine is not due to close for many years, it is impossible to know inadvance what the impacts of this enhanced consultation program will be. However, as aresult of the work at Yanacocha, the company has looked at the possibility of implementinga similar approach at its sites, including Batu Hijau in Indonesia and Ahafo in Ghana.

Sources:“Newmont mining withdraws from Cerro Quilish, Peru”, press release from Oxfam America, 5 November 2004.“Community engagement for mine closure”, case study from Newmont Sustainability Report 2007.

CASE STUDY


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LS Categories of tools and the process of community development planning and managementThe tools have been divided into several groupsaccording to their main uses, which are alsothe main elements necessary in a healthycommunity development program – planning,assessment, management, monitoring andevaluating and, most importantly, relationships.This categorization is primarily for convenienceof presentation and discussion – it is notdefinitive.

Figure 1 illustrates graphically the overlaps between the various types of communitydevelopment tools and their multidirectional,cyclical relationships. The relationship toolsare central to the entire process and are thefoundation upon which all other activities rest.If the relationships between the project and itsstakeholders are not healthy, then it is unlikelythat even the most sophisticated and carefullyconceived planning and management activitieswill be successful. If relationships are healthy,then a firm footing for good communitydevelopment has been laid.

It is difficult to state definitively whether the planning or assessment tools come first as theyare very closely interrelated. Some resourcesare needed in order to commence assessment;however, it is through assessment that thedecisions about resources needed are made.

Similarly, the assessment tools inform the project about what management measures are needed, while management tools helpdecide what further assessments are needed.In the same way, management tools feed intothe monitoring and evaluation processes, which feed back to management tools therequirements for modifications of managementprocesses. Monitoring and evaluation toolsalso help revise decisions about resourcing,and the cycle, with many backward and forwardlinkages, is complete.


Some adviceBe patient. Let communities develop attheir own pace.

One of the greatest challenges ofproviding good community developmentsupport is working to the timetable of the community. Community leaders andmembers will likely be fully aware of this.If you are a mining or metals companyrepresentative, you may have projectdeadlines, annual reports to complete and budgets to utilize. These imperatives,coupled with the temptation to seeimmediate results from your work, can be strong.

But remember that development is a long-term process. It is about buildinglocal capacities and strengthening localorganizations – not necessarily theimmediate or visible outputs of yourdevelopment activity. Development is theprocess of change in local people’scapacities and resources, in how theyorganize themselves and in how theyrelate to the outside world.

As a mining or metals companyrepresentative, your role is to facilitatethat process and to take a back seat orsupporting role. You probably have specialskills, knowledge and abilities and theaccess to resources, all of which couldachieve the tangible aspects of communitydevelopment projects more quickly thanpeople just learning the ropes can.

However, you will really have achieved the goal of sustainable communitydevelopment when the community feels it can manage well without you.


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Figure 1: Interrelationship of community development tools

RELATIONSHIPS

PLANNING

MANAGEMENT

MONITORING ANDEVALUATION

ASSESSMENT

RELATIONSHIPS TOOLSThe central set of activities that underpins and bindstogether all other community development activities.

MANAGEMENT TOOLSMethods and approaches for mitigating potential negative mine impacts and enhancing benefits to maximize community development. These management toolsinclude means for ensuring that plans are realistically resourced and scheduled, and that there are people taking responsibility for implementing them.

PLANNING TOOLSUsed for planning the resources, both human and financial, that will be needed to undertake community development activities or to expand or adopt new programs.

MONITORING AND EVALUATION TOOLSHow to monitor and evaluate community development program activities and for measuring progress towardsprogram goals.

ASSESSMENT TOOLSThese tools help people to understand the potential risks and impacts of the mine on surrounding communities and other stakeholders.


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The central set of activitiesthat underpins and bindstogether all other communitydevelopment activities

RELATIONSHIPS

TOOLS

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RELATIONSHIPS ARE THE MOST IMPORTANT ELEMENT OF ANY SUCCESSFULCOMMUNITY DEVELOPMENTPROGRAM. THE BEST-DESIGNEDPLANS WILL FALTER IF THEREIS INSUFFICIENT TRUSTBETWEEN THE VARIOUSSTAKEHOLDERS INVOLVED.

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Relationships tools

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TOOL 1 Stakeholder IdentificationIdentifying all the people with an interest in the project, or who may be affected by the project.

TOOL 2 Stakeholder AnalysisHaving identified the project’s stakeholders, it is useful to analyse their level of interest in the project and how they may like to be involved.

TOOL 3 Consultation MatrixWhen you have analysed your stakeholders, it is important to develop a system to ensure they are consulted regularly on thetopics that affect them.

TOOL 4 Partnership AssessmentA tool for analysing potential partners, their suitability for partnering with your organization and what areas of mutual interest you share in regional community development programs.

TOOL 5 Grievance MechanismA means by which community members or other stakeholderscan register their concern about real or perceived actions bythe mining project, with the objective of resolving problemsbefore they escalate.


Guidance for usingrelationships tools

Relationships are the most importantelement of any successful communitydevelopment program. The best-designedplans will falter if there is insufficient trustbetween the various stakeholders involved. It is therefore essential that all parties knowwho the other stakeholders are, know whythey are involved with the project and for allstakeholders to learn to know each other so they can work together to developprograms acceptable to all of them.Consultation is both the best means ofcoming to understand other stakeholdersand of building good relationships withthem.

All of the tools in this relationships sectioncan be applied at the mining project level orthe community development project level. To highlight the widest range of applications,these tools have been developed for thewhole mining project (with the exception ofthe Partnership Assessment tool (tool 4)),but you can easily apply them to specificcommunity development projects. If you are working in a developed mine, and theactivities these tools reference have notbeen undertaken in the past, they representan excellent and necessary place to start asa means of informing your communitydevelopment projects.

As mining company community developmentstaff, you may have started work on a newmining or metals project and need to knowwho all the project’s stakeholders are. Youwill also need to find out if there are legaciesfrom previous owners or earlier interactionsin the area so that you can ameliorate themand develop sound and positive relationships.Building good relationships with allstakeholders will be a central part of yourteam’s responsibility. While the primaryresponsibility for building relationships willrest with you, many other teams will alsodevelop relationships with communitystakeholders (e.g. procurement, logistics,government relations and human resources,etc.) and it is the responsibility of the wholesite to uphold the same level of respectwhen engaging with communitystakeholders as you have established.

Government officers, NGOs and communitymembers in mining areas may also findthese tools useful. For example, a newmining project may be developing in the areaand understanding who the stakeholders areand how to engage with the project as itdevelops could be advantageous for allgroups. Similarly, these tools will help allinterested groups to understand thepotential benefits of partnering oncommunity development initiatives andleveraging resources from all parties.

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Relationships toolscontinued


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Stakeholder Identification 1DescriptionStakeholder identification is the processused to identify and define your project’sstakeholders – their interests and the waysin which those interests affect the project’sviability. Stakeholder identificationcontributes to project design by learningabout the goals and roles of different groups,and suggesting appropriate forms ofengagement with those groups.

Stakeholders are persons or groups who areinterested in, affected by or can affect theoutcome of your project. Stakeholders maybe individuals, interest groups, governmentagencies or corporate organizations. They may include politicians, commercialand industrial enterprises, labour unions,academics, religious groups, national socialand environmental groups, public sectoragencies and the media. Your project’sstakeholders may change over time. In addition, groups of stakeholders may hold divergent views within what appear to be unified parties. It is important not toassume that all members of a group orcommunity are in one mind over a programor plan, but to seek various points of view.

There can be a temptation to only engagewith the stronger voices in a community orwith those who seem to be in charge, suchas traditional chiefs. While it is alwaysimportant to deal with these obvious leaders,it is equally essential to ensure that youengage with the broader community andsociety, for example women, minoritygroups, vulnerable sectors of the communitysuch as the poor, or migrants. If seemingly“powerless” sectors of society are left out ofthe consultative processes, the project canfail due to a lack of comprehension of thebroader context and concerns in which it isbeing implemented. Successful companiesseek to validate who has the right to speakfor or represent others and not just acceptassertions of representativeness at facevalue. There must be broad agreement onwho can be allowed to represent othermembers of the community.

In addition, when dealing with customaryleaders, it is crucial you ensure that allcustomary leaders, as well as electedleaders, are consulted. In some culturesthere may be traditional leaders who holdceremonial or spiritual power as well asthose who wield more secular ororganizational power, and if some areexcluded, you may find that the project doesnot have the support of the full community.Women leaders, traditional or secular, areoften overlooked when identifying importantstakeholders.

The key to this process is to undertakeexhaustive discussions over an extendedperiod of time about “who’s who” in acommunity and not to just stop when youthink you have found the leader. Such anassumption can cause problems at a later date.


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Stakeholder Identificationcontinued

PurposeTo identify a comprehensive list of peopleand groups who may be affected by, canaffect or have an interest in your project.This can be used for consultation purposes,impact assessment and partnershipassessment as the project evolves.Stakeholder identification provides a startingpoint in building the relationships you needfor successful project development and forsuccessful community development – youneed to find out which groups to work withand how to engage with them mosteffectively. If you find that some stakeholdersseek to exclude others from the engagementprocess, then extra care should be taken toexplain that the company wants to be fair,open and transparent in its consultationswith stakeholders and that anybody andeverybody who wants to be included can and should be.

When to use this toolStakeholder identification is a dynamicprocess – some stakeholders disengage,others join in at different stages of projectdevelopment. There is no such thing as astatic list that can be filed away once allstakeholders have been successfullyidentified. Take care to remember internalstakeholders – for example your ownemployees – form an essential part of thecommunity and should be kept informed and listened to just as much as externalstakeholders. This will enhance employees’feeling of “ownership”. In addition, manyexternal stakeholders gain knowledge ofyour activities through interactions with your employees, so it makes sense to keepyour own staff engaged.

From the earliest exploration stages of aproject, you should start to build yourstakeholder list, and then revise the listwhenever there are any changes in projectdesign, scope, social environment or activity,right through to closure. Revise the listsystematically at least once a year, moreoften if changes are observed.

The following process is aimed at companystaff, but could be applied just as easily tostakeholder identification by government or NGO representatives or communitymembers.

How to use this toolYour initial objective is to identify everyoneand every group that might have an interestin the project in order not to miss anyoneout. Later, you will ascertain who has anenduring or deep interest in the project, butto start with, you should aim for inclusivity.

1


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Stakeholder Identificationcontinued 1

STEP 2Network to expand the list. Ask thestakeholders you already know to suggestother people with an interest in the project.Be inclusive. Do not worry about numbers –they will even out in the end. Worry moreabout leaving people out. It may be helpful toconsider the following questions to ensurethe widest number of possible stakeholdersare included:

• Who will be affected by negative impacts of the project?

• Who will benefit from the project?

• Who will be responsible for implementing measures to mitigate the negative impacts?

• Whose co-operation, expertise or influencewould be helpful to the success of the project?

• Who are the most vulnerable, least visible and voiceless for whom special consultation efforts may have to be made?

• Who supports or opposes the changes that the project will bring?

• Whose opposition could be detrimental to the success of the project?

• Who might have resources to contribute?

• Who will make decisions?

STEP 1Brainstorm existing stakeholders. This isbest done by a team of people who haveinteractions with parties external to theorganization. Every project already hasexisting relationships – list those to beginwith. Using the checklist, name thestakeholders for the project you are working on.

Some stakeholders are easily identified,such as people in the neighbourhood of theproject, interest groups in the country wherethe project is located, local and regionalgovernment people, and so on. Do not forgetthat mining company employees are alsostakeholders and need to be considered forconsultation plans. Other stakeholders maybe more difficult to identify, requiring you tothink more laterally about how you establishand maintain relationships with them.Examples of these may be NGOs or academicssituated in locations remote from the projectbut nonetheless with an interest in it.


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Stakeholder Identificationcontinued1

STEP 3Check that you have included all the possiblestakeholders that you and your colleaguescan think of. A rule of thumb for ensuringthat all key stakeholders are included in thelist is to ask yourself: “Who will the projectimpact (positively or negatively) and whosesupport or lack of it might significantlyinfluence the success of the project?” Alsocheck that you have taken care to includewomen and vulnerable and/or marginalizedstakeholders, not just the influentialmembers of society.

Communities• Nearest neighbours• The local community near your site• The local community near your head office• Communities you may pass through on a

regular basis (e.g. linear project elements)• Regional centres for your local

communities

Potentially vulnerable people/groups• Women• Elderly/ill/incarcerated/disabled• Indigenous Peoples22

• Racial minorities/oppressed groups• Children/schools/orphanages or other

youth groups• Child-headed households• Others

Government officials• Local officials (elected and appointed)• Regional officials• State officials• National officials• Opposition officials• Administrative representatives from each

of the ministries based in your local areaor region

Other civic organizations• Places of worship and religious

organizations• Trade or labour unions• Educational organizations• Fraternal organizations• Charitable organizations• Organizations serving children • Organizations serving the elderly• Professional and trade associations• Others

Checklist of possible stakeholders

22 For a detailed examination of the issues in relation to mining and Indigenous Peoples, see ICMM’s Mining and Indigenous Peoples Issues Review, 2005. Available at: www.icmm.com/page/1161/mining-and-indigenous-peoples-issues-review

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Stakeholder Identificationcontinued 1

Internal• Board of directors• International Advisory Board• Senior management• Unions or other organized labour groups• Shareholders• Legal team• Health, safety and environment teams• Human resources team• Medical services team• Logistics team• Procurement and contracts teams• Employees• Retirees• Families of employees• Others

Industry• Individual companies• Competitors• Suppliers• Customers• Industry associations• Business associations• Others

Regulators• Local agencies• Regional agencies• State agencies• National agencies• International organizations• Others


Non-governmental organizations andcommunity based organizations• Local groups• Regional groups• State groups• National groups• Cultural groups• Environmental groups• Recreational groups• Sporting groups • International groups with an interest in

your project, the location or the type of activity you are conducting

• Others

Other advocacy groups• Individual activists• Health and safety groups• Human rights groups• Social justice groups• Political groups• Others

Specially concerned people/groups• With interests in your site (e.g. small-

scale miners)• With interests in your company (e.g.

existing partners)• With interests in your industry• Those already involved• Those who want to be involved• Those with emergency response jobs

who you wish to involve• News media• Others


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Stakeholder mapping to inform community programsGold Fields, Far Southeast gold-copper project, Philippines

SummaryThe Far Southeast gold-copper project located in northern Luzon in the Philippinesrepresents a relatively challenging socio-political environment. This means the project’sultimate success is more dependent than most on close consultation with localstakeholders.

ResponseFar Southeast has established a strong Community Sustainable Development team made up of 52 people – or 21% of the total project workforce. The majority of the team is made upof local and Indigenous Peoples from the Municipality of Mankayan – where the ore body islocated. Far Southeast’s approach to community engagement is informed by comprehensivecommunity stakeholder mapping, carried out with the assistance of the nearby BenguetState University (BSU). This was based on an innovative household survey of almost all ofMankayan’s 35,000 residents, carried out using a team of 340 student volunteers andanalysed using advanced geo-spatial software.

Geo-spatial image from community stakeholder mapping program

CASE STUDY


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Stakeholder mapping to inform community programsGold Fields, Far Southeast gold-copper project, Philippines

CASE STUDY continued


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Outcomes The community stakeholder mapping exercise – as well as subsequent work with localofficials and the BSU to develop strategic Barangay (local administrative unit) developmentplans – helped inform Far Southeast’s targeted community programs, including:

• communication campaigns to address negative perceptions around mining, land stability and water quality/availability

• engagement with local people and land claimants to expedite drilling

• support for local health missions, benefiting more than 8,600 people

• implementation of teacher training for 133 high-school teachers, and 79 day care and pre-school teachers

• “cultural renewal” activities, co-ordinated by local elders, to promote indigenous Kankana-ey tradition

• disaster management training for Barangay emergency response teams through the Philippine Red Cross.

Far Southeast stakeholders

Source: Gold Fields, Integrated Annual Review 2011, pp. 106–108www.goldfields.co.za/reports/ar_dec_2011/pdf/integrated_ann_rev_2011.pdf

Project outcome

Stakeholderswith an interestin the project

Communityorganizations

Provincialgovernment of Benguet

Municipalgovernment of Benguet

The Church

Indigenousrepresentatives

Government ofthe Philippines

Localbusinesses

Localcommunities

NGOs

Land claimants

Ancestraldomain holders

Stakeholdersgranted decision-making power

Stakeholders who are directlyimpacted

Stakeholderswho are indirectlyimpacted


Key references

IFC, Stakeholder Engagement: A Good Practice Handbook for Companies Doing Business inEmerging Markets, Washington DC, 2007. Available at:

www.ifc.org/ifcext/sustainability.nsf/content/publications_resettlement

Zandvliet, L. and Anderson, M. B., Getting it Right: Making Corporate-Community RelationsWork, Greenleaf Publishing, Sheffield, 2009, especially Chapter 9.

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Stakeholder Identificationcontinued1


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Stakeholder Analysis 2DescriptionOnce you have identified stakeholders usingtool 1 (Stakeholder identification), it isnecessary to consider what stakeholders’interests are in the project and how muchand in what ways they might like to beinvolved. Every effort should be made toclearly identify and understand the interestsand perspectives of the various stakeholdersregarding a project and its potential impactsin order to design inclusive engagement andconsultation processes. It may be helpful toknow whether stakeholders support themining project, oppose it, are neutral orundecided, so that you can tailorengagements with each group accordingly.

The Stakeholder Analysis tool enables you toassess how important the project might beto each stakeholder. If you are applying thistool to frame your community developmentactivities, the analysis will help youunderstand how much each stakeholdermight want to participate in communitydevelopment programs. Understanding howstakeholders relate to each other will alsohelp you to understand the web ofrelationships surrounding the project.

In order to be able to engage fully with manystakeholders, it helps to understand theirmotivations for becoming involved with themining project – are their interests or concernsprimarily environmental, and/or economic orpolitical? Do they have a historical connectionto the project area, or are they relativenewcomers wishing to become more deeplyrooted in their community through publicparticipation? The list of questions that couldbe posed is as varied as the stakeholdersyou will encounter, so you need to considereach individual or group as a separate case.In coming to know your stakeholders, youwill come to understand their priorities andbe able to use this knowledge as the basisfor forming strong relationships.

PurposeTo refine your understanding of youridentified stakeholders for the miningprojects, and how to engage with them, by:

• defining the characteristics of stakeholders in order to understand their level of interest, connection and capacity to impact the mining project

• identifying conflicts of interests between stakeholders, to help manage such relationships during the course of the project

• prioritizing the engagement with different stakeholders based upon their influence and impact on the project.

To refine the approach you will take withdifferent stakeholders when developing acommunity program by:

• drawing out the interests of stakeholders in relation to key development issues

• identifying relations between stakeholders that may facilitate development partnerships

• assessing appropriate levels of engagement with different stakeholders – for example informing, consulting, partnering – at different stages of the project cycle

• ensuring that the interests of women, youth and vulnerable and/or marginalized people in the community are not overlooked in the mine’s community development programs.


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Stakeholder Analysiscontinued

The identified level of interest of eachstakeholder helps you to design yourConsultation Matrix (tool 3), and to decidehow much time to devote to engaging witheach stakeholder or group. The engagementlevels required for each group of stakeholdersas revealed through this analysis may bemore than consultation, for example theymay include partnership, involvement incommunity development plans or communitymonitoring, or a wide range of activities. It is important to always ask stakeholdershow much involvement they desire and tolearn about their views and expectations.The more you know about your variousstakeholders, the more successful you arelikely to be in building and retaining goodrelationships with them.

When to use this toolThe Stakeholder Analysis tool should beused when designing the ConsultationMatrix (tool 3) and should be revised eachtime the list of stakeholders (from tool 1) is revised. The initial analysis should beundertaken for national and internationalstakeholders in the exploration period andthen at least by early feasibility period forlocal stakeholders, depending on whenmajor impacts are generated by the project(impacts to land, access to resources, localeconomic opportunities, in-migration,employment, etc.).

How to use this toolThis tool requires you to categorize thestakeholders identified in tool 1 according toa set of three criteria: (i) how they view theproject, (ii) their influence and (iii) the extentto which they will be impacted (positively ornegatively) by the project.

STEP 1Obtain a list of stakeholders from using tool 1.

STEP 2Either individually or in a team, evaluateeach stakeholder’s view of the project(positive, neutral, negative), how influentialthey are (high, medium, low) and how greatly they will be impacted by the project(high, medium, low).

STEP 3Arrange the lists of stakeholders into theanalysis matrix as shown in Table 5. Use the category lists to assign priorities tostakeholders for engagement activities inthe Consultation Matrix (tool 3).

Stakeholder X would be classified as a highlyinfluential supporter of the project, and notlikely to be negatively impacted – perhaps alocal business owner who does not live nearthe project.

Stakeholder Y is neutral about the project,has a certain amount of influence and is notstrongly impacted – perhaps a schoolteacherat the local school, but who does not liveclose to the project site.

Stakeholder Z is a strongly influentialopponent of the project who will benegatively impacted – perhaps a powerfullocal landowner who does not want to loseland to the project.

2


Colour-code the stakeholders according to their level of support for the project. In Figure 2 you would want to prioritize thedevelopment of an effective engagementstrategy for the two influential andsignificantly impacted stakeholders whooppose the project as a matter of urgency.

STEP 4 Each stakeholder’s position in relation to theproject is illustrated in a stakeholder map,such as that included in the IFC guide, andreproduced in Figure 2. To do this, plot thestakeholders according to their ability toinfluence the company’s activities (verticalaxis) and the degree to which they areaffected by the project (horizontal axis).

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Stakeholder Analysiscontinued 2Table 5: Stakeholder analysis matrix

X

Y

Z

Name/group ofstakeholders

View of project

Pos Neutral Neg H M L H M L

Influence Impact

Figure 2: Prioritizing stakeholder engagement activities23

HighLow

Hig

hLo

w

Degree impacted by the project

Stakeholder map

Cap

acit

yto

infl

uenc

e

Key

Supportive

Supportive with conditions

Neutral

Opposed

23 Taken from IFC, Strategic Community Investment: A Good Practice Handbook for Companies Doing Business in Emerging Markets, Washington DC, June 2010, page 27.

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Key references

DFID, Tools for Development: A Handbook for Those Engaged in Development Activity, 2003,Section 2: Stakeholder analysis.

IFC, Strategic Community Investment: A Good Practice Handbook for Companies DoingBusiness in Emerging Markets, Washington DC, June 2010.

IFC, Strategic Community Investment: A Quick Guide, Highlights from IFC’s Good PracticeHandbook, Washington DC, February 2010. Both IFC publications available at:

www.ifc.org/ifcext/sustainability.nsf/content/publications_handbook_communityinvestment



Zandvliet, L. and Anderson, M. B., Getting it Right: Making Corporate-Community RelationsWork, Greenleaf Publishing, Sheffield, 2009.


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Stakeholder Analysiscontinued2


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Consultation Matrix 3DescriptionThere is a significant difference betweenrelationships in which stakeholders areengaged in consultative ways and those inwhich stakeholders are seen as passiverecipients of engagement activities. You needto understand these distinctions in order todecide what level of engagement you wouldreally like to undertake with each group ofstakeholders – and how successful that level of engagement might be.

Engagement should be both formal andinformal and may involve a number of theactivities listed below:

• information disclosure

• public meetings, interviews with specific stakeholders

• community liaison team members appointed

• grievance mechanism, newsletters, open houses

• annual/quarterly targeted consultation

• perception surveys

• participatory monitoring.

The consultation matrix is the basis fordeveloping a comprehensive, well-thought-through consultation plan. It is a helpful toolfor ensuring that information gets to thepeople who need it, at the right times; thatfeedback from stakeholders reaches theright people in the company and government;and that stakeholders are informed of theresults of their inputs. Stakeholders shouldbe asked what level of consultation theydesire – information provision, involvementin meetings, active contribution to planning,participation in monitoring activities for the project or partnership on communitydevelopment programs. Matching the levelsof interactions with stakeholders’ needs and expectations will help you deliver atargeted, time-effective consultationprogram. Ideally, consultations between allstakeholders should be frequent, open andmutual. Consultation is not a one-way street.

Key principles for achieving comprehensiveconsultation are:

• consult often and not just when you need something

• consult everyone who wants to be consulted

• listen as much as you talk

• record your interactions in a database, including comments and responses from stakeholders and your responses to them

• be responsive to issues raised/actions arising from consultations and commit toproviding feedback to your stakeholders about their concerns

• keep a register of any commitments you or your colleagues have made with stakeholders and review it regularly.


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Consultation Matrixcontinued

PurposeThe consultation matrix enables you toestablish a comprehensive plan for projectconsultation and communications, and toensure that your consultation activities areappropriate to the specific needs of differentstakeholder groups. For example, if youdiscover during early consultations thatareas of current or potential conflict existbetween stakeholders, or between theproject and various stakeholders, you shouldmake note of that to ensure that efforts aremade to try to resolve and manage theseconflicts (see tool 5 Grievance Mechanism).

It should also enable you to keep up to date with consultations with stakeholders.You will be able to tell when you last spoketo a stakeholder and what you or yourcolleagues talked about. Often, thisinformation is stored in field officers’ heads.Unfortunately, if those officers move on toother jobs, the information in their headsgoes too, so it is important to keep recordsto enable constancy and continuity inrelationships with stakeholders. Typically,this is done with the assistance of anelectronic stakeholder database (see tool 15Management Systems).

When to use this toolWhenever stakeholder engagement activitiesbegin, which should mean exploration, fordirectly affected stakeholders such assurrounding communities who may beproviding labour, resources or land tosupport exploration activities. Indirectlyimpacted stakeholders such as financiers,government agencies, NGOs and otherinstitutional bodies should also be includedfrom advanced exploration/pre-feasibilityperiods based on their interest and level ofimpact on the project. Employees are also an important stakeholder group that needsto be consulted from the beginning of themining project activities. The employee poolwill change drastically over the life of themining project, but regular engagement withthis group is essential from the time of thefirst geological survey. The plan should berevised at least annually, or whenever thescope of activities changes.

How to use this toolUsing step 4 from tool 2, you can plan the nature of communications with eachstakeholder and ensure that the level ofengagement correlates with the level ofinterest, influence and impact assessed in tool 2.

Schedules need to be drawn for the frequencyof each type of consultation, for example site tours once a month, press releasesquarterly, etc., with records being kept ofwhich stakeholders are engaged by whichmethod, and how often. Records should alsobe kept of responses to stakeholders,especially if project or program modificationsare made due to stakeholder inputs. It isparticularly important projects maintain acommitment register of all formal andinformal commitments made to stakeholdersacross the life of the project. Many of thesecommitments will emerge from consultationactivities being discussed here.

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Consultation Matrixcontinued 3STEP 1Make sure all key stakeholders are includedfrom the list from tool 2 (Table 5, page 55).Update your stakeholder analysis wheneverchanges in the project or community occur.

STEP 2Using the consultation matrix (Figure 3) atthe end of this tool as a guide, identifyappropriate consultation methods for eachstakeholder or group based upon their levelof interest and impact on the project. Whilehighly influential stakeholders who opposethe project will require detailed engagement,it is also important to consider appropriateconsultation methods for those who arehighly impacted but are not influential asthey will require equally important butdifferent engagement and/or support.

The consultation methods you apply arelikely to fall within a broad continuum – from simply informing stakeholders of youractivities, to partnering with them inprogram design or integrating them into the project’s decision-making process foractions that affect communities. The formsof consultation listed in the matrix are notexhaustive and must be informed by youroperational context – that is, if you operate ina conflict-sensitive area, you need to considerwhether the consultation approach you areconsidering will affect (either positively ornegatively) the existing tension.24 Appropriateformats should also be utilized, for exampleusing audiovisual methods for people whoare not highly literate. Local languagesshould always be used, through aninterpreter if necessary.

STEP 3Once you have defined the appropriateapproach to engagement for each group ofstakeholders, create a table summarizingthe approaches you have selected. Use theconsultation matrix to plan for consultationthroughout the life of the program,recognizing that stakeholders’ needs andinterests are likely to change.

STEP 4Monitor and evaluate the effectiveness ofyour consultation activities (see monitoringand evaluation tools); revise your approachto engagement to reflect changing needs,circumstances and experience. Rememberthat consultation is an interactive processand that messages coming in fromstakeholders are just as important as those going out.

STEP 5Keep a record of consultation activities,including messages from and feedback tostakeholders. This will help you to keeptrack of who you have consulted and howoften, in order to neither neglect nor fatiguestakeholders. When agreements are reachedthrough consultation with stakeholders, it is always useful to generate a signed recordof this, whether minutes of a meeting or aformal agreement. All parties should receivecopies of such records, and the companyshould ensure that one is kept in itsdatabase.

Lists of stakeholders contacted, records ofthe dates and nature of the contact andfeedback should be systematicallydocumented and filed in a database, whetherelectronic or paper based. People shouldconsent to notes or recordings being taken

24 See International Alert, Conflict-Sensitive Business Practice: Guidance for Extractive Industries, 2005.www.international-alert.org/resources/publications/conflict-sensitive-business-practice-guidance-extractive-industries

http://www.international-alert.org/resources/publications/conflict-sensitive-business-practice-guidance-extractive-industries


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Consultation Matrixcontinued3

Figure 3: Consultation matrix

Infl

uenc

e

Context driven

HighRegular targeted consultationInformed participation in planningOpportunities for partnershipsParticipatory monitoringOpen houses/information shopsIssues workshops as necessaryEffective grievance mechanism

Impact

Medium/highConsultation through CROEffective grievance mechanismOpportunities for partnerships in development programsFocus working groups on specific topics

MediumRegular consultationPublic meetingsPerception surveysGrievance mechanism

LowInterviews with key stakeholdersPublic meetings as neededPeriodic engagement

of meetings, otherwise it would beinappropriate to do so. Privacy legislationmust be adhered to, ensuring thatstakeholder data are not passed on or usedfor any purpose other than keeping track ofinteractions. If people provide confidential or personal information that is entered inthe database, it should be marked asconfidential and treated as such.


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Pre-operational implementation of HSEC processesBHP Billiton, multiple locations in Kalimantan, Indonesia

SummaryBHP Billiton’s IndoMet Coal Project (IMC) has taken a comprehensive and integratedapproach to developing health, safety, environment and community (HSEC) practices and processes while still in the exploration and feasibility study stages of the project. This approach was motivated by the company’s Charter commitment and Communitystandard, which aim to build strong relationships with key stakeholders, deliver clear socio-economic benefits and manage potential risks and impacts.

ResponseThe company began by identifying and analyzing key stakeholders and developingappropriate procedures for their consultation and engagement. Stakeholders includedgovernment at various levels, 20 directly affected villages and regional communities(representing around 14,000 people), NGOs and the media.

Comprehensive socio-economic, public health and cultural impact and baseline studies were undertaken. As some of the studies required considerable lead times, communitydevelopment practitioners were commissioned to undertake up-front “rapid rural appraisals”across all directly affected village communities. The communities reacted positively to thestudies and actively participated in workshops. Typical issues raised by the communitieswere on employment opportunities, access to better education, provision of clean water and opportunities for local businesses to support the company’s operations in the area.

The recommendations from this preparatory work were formally discussed at formal and informal consultative meetings. Preparatory work also included consultation with localgovernment to align the company’s initiative with government programs.

Results from more comprehensive baseline studies and research were then fed back into the stakeholder consultative process and, in turn, into IMC’s community investmentactivities. For example, thorough environmental baseline studies were initiated early in thepre-feasibility stage, including an extensive biodiversity study of the project footprint. Several new species of fauna were discovered, prompting the development of an extensivebiodiversity management plan. As the feasibility studies on the project continue, the baselinedata inform a range of programs such as health awareness campaigns, the provision ofteaching and learning materials to local students and cultural enhancement supportactivities. In addition to regular day-to-day engagement, ongoing formal forum consultationsessions were held several times each year to provide an ongoing “health check” of theprogram and an opportunity to enhance relationships.

In addition to working collaboratively with local development partners, IMC has prepared a scope of work for an Indonesian-based international NGO to assist in designing andexecuting a partnership program. The program will be informed by the baseline data, andwill build capacity and provide a broad social benefit to the region.

Outcomes From the outset, the company involved host communities, NGOs and government in impactassessment research, in the identification and selection of priority areas for communityinvestment and in the delivery of the resulting programs. A range of Indonesian CoalProjects/stakeholder partnerships were developed to deliver a range of programs coveringpublic health, education, behaviour management, essential infrastructure (including waterand sanitation), microfinance, business development, food security, poverty alleviation,vocational skills training, risk sensitization, agricultural improvement and village-levelgovernance and administration.

Source: BHP Billiton IndoMet Coal Project

CASE STUDY


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Consultation Matrixcontinued3

Key references



Zandvliet, L. and Anderson, M. B., Getting it Right: Making Corporate-Community RelationsWork, Greenleaf Publishing, Sheffield, 2009, especially Chapter 9.


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Partnership Assessment 4DescriptionThe sustainability of community developmentactivity demands effective partnershipsbetween government, business and civilsociety. None of these groups possesses the full range of resources required topromote community development at thelocal level. Each has distinctive roles andresponsibilities, skills and capacities withinthe community development process.Working together they can make significantand sustainable contributions to the localdevelopment process, which will outlive thepresence of a mining project. Successfulpartnerships are built on a sharedcommitment to address development needs.

The World Bank’s Business Partners forDevelopment (BPD)25 initiative broughtgovernment, industry and civil societyrepresentatives together to exploreopportunities for partnership aroundresource development projects, and toproduce practical guidance on how thosepartnerships could generate sustainablebenefit in local communities. Much of thissection is based on the BPD initiative.Additional analysis of the importance ofpartnerships to successful communitydevelopment programs in mining areas hasbeen undertaken in a number of countries by ICMM.26

Partnerships offer a model of participatorydevelopment. While partnerships are oftenbetween two parties, namely a miningcompany and an NGO or communityorganisation, this tool specifically addressestri-sector partnerships as they can bringtogether unique resources and qualities (seeTable 6):

Government can contribute credibility to partnership arrangements, strategic co-ordination through local developmentplans and public investment, and can act ascatalyst, broker and mediator.

Business can contribute employment and infrastructure opportunities, financialresources, capital equipment, a results-ledwork ethic and attention to performancequality.

Community organizations and NGOscan contribute local knowledge, capacity tomobilize community participation, tools and methods to ensure relevance to localconditions and a long-term presence in thehost community.

The greatest opportunities for communitydevelopment – and best hope for programsustainability – lie in bringing together thedevelopment capacities and resourcesavailable collectively within the region. If companies and other actors can align their programs with those already decidedupon by the local and regional governmentsnear a mining project, then the combineddevelopment actions of such partnershipswill help communities contribute to nationaldevelopment goals. This ensures bettercoordination of development activities, moreefficient use of development resources, andthe active support and participation of keystakeholder groups.

25 See World Bank Business Partners for Development initiative at www.bpdweb.com

26 See several ICMM documents at www.icmm.com/mpd/partnerships


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Partnership Assessmentcontinued4

Table 6: Partnership benefits

Source: Adapted from Business Partners for Development

for government

• Alignment of private sector infrastructure with government development plans

• Greater visibility of government discharging its civic duties

• Co-ordination between government departments

• Cost sharing, risk sharing

• Improved capability, resources, etc. to deliver development programs

• Greater efficiency of production, reduced delays,facility “downtimes”, security costs

• Greater return on investment

• More robust social licence to operate

• Better management of community expectations

• Meeting compliancerequirements for social management

• Direct cost savings in managing social issues

• Enhanced local reputation and competitiveness

• Shareholder and investor confidence

• Improved recruitment, retention and employee engagement

• More participatory design of community projects

• Transparency and accessibility of company and government

• Relevance of interventions closer to true livelihood needs

• Greater sustainability of community projects

for business for community


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Partnership Assessmentcontinued 4PurposeTo enable you to assess the developmentcapacities and resources available within the region, anticipate future capacity needsand identify any critical gaps. Not allorganizations will be able to enter intopartnerships with all others, so it isimportant to undertake this assessmentbefore entering into any arrangements. The framework can help you to assess theneed for – or success of – capacity-buildinginitiatives to improve regional developmentperformance and partners to work with inachieving those goals. It is used to assess:

• existing and future partnership capacity needs

• anticipated benefits of the partnership to your organization

• appropriate programs or projects for partnership

• the sustainability of potential partner organizations.

Over time, an institution may be consideredsustainable if it can fulfil its functions on apermanent basis with decreasing levels ofexternal support – specifically, if it is able to secure necessary inputs and support,provide a continuing stream of developmentactivities and services that are valued by itsstakeholders, and survive for as long as it is needed.

When to use this toolDuring exploration and feasibility when youmay not have the resources to implementprograms directly and you need to draw onthe skill set of partners already operating inthe region.

During the construction phase, so thatpartnerships will be in place by the timecommunity development plans are made and operations commence.

During operations, when actively planningcommunity development programs, in orderto ascertain what other skills and capacitiesexist locally and avoid duplication of effort.Tri-partite partnerships can also be arequirement under licensing and royaltyconditions in some environments.

For closure planning purposes, to ensurethat the partnerships invested in are likely tobe sustainable and to continue to benefit thelocal community after the mine has closed.

The Strategic Planning Framework (tool 6)should inform the partnership assessment.


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How to use this toolAnalyze potential partners for suitability to team with your organization and forcapacities in community development byusing the partnership assessmentworksheet (see Table 7).

STEP 1Review the potential for businesspartnerships for different developmentprojects using Table 7. This analysis shouldbe conducted by theme, not by potentialpartner. A description of the criteria toconsider is provided here:

• Financial contribution – will partnering with a group on this theme support financial contributions that the company was already intending to make? Or would this be a new investment?

• Mandate – is this theme an area wherethe company could be/would be expected to engage?

• Baseline needs – has this theme been identified by communities as an area of concern or need?

• Operational effectiveness – will a partnership around this theme increase the operational effectiveness of the community investment?

• Outreach – who will benefit from a partnership on this theme?

• Capacity – what is the capacity to deliver a program on this theme? For example, are there existing successful programs which have been developed to address such a theme in the past within the country or region?

• Human resources – would a partnership on this theme bring necessary human resources to this investment?

• Legitimacy – by partnering on this theme, would the company’s contribution gain greater legitimacy?

• Sustainability – by partnering on this theme, would the company’s contribution be more sustainable?

• Any negative impacts – could there be adverse consequences from partnering on this topic, eg, a sense that the company is seeking assistance from others for something which should be managed and funded by the company in entirety?


Program

s,e.g.m

alariaprogram

ming

Child

malnutrition

Vocationaleducation

Etc.

Com

panyX

hasa

budgetof$yyto

spendon

malaria

programm

ing.Partnering

will

allowthis

contributionto

bem

atchedby

others,expanding

theoutreach

oftheprogram

.

Thisw

ouldbe

anew

areaof

investmentfor

Com

panyX.

Com

panyX

would

needto

hireadditional

trainedstaff

toim

plement

thisprogram

ifitwere

implem

entedby

thecom

pany.A

partnershipw

ouldavoid

thisand

couldleverage

offexisting

skillsw

ithinthe

country.

Additionalresourcesw

ouldneed

tobe

hired/contracted

tom

anagethis

partnership.

Throughthe

socialimpact

assessment

andbaseline

studiesfor

thecom

munities,

malaria

programm

ingw

asidentified

asa

keyneed

bythese

comm

unities.

Child

malnutrition

was

notidentified

asa

principalconcern

duringthe

baselinestudies.

Thereis

noexperiencew

ithinC

ompany

Xfor

conductingsprayingcam

paigns,or

comm

unityengagem

enton

malaria

prevention.Inthe

absenceof

apartnership,

theC

ompany

willhave

todevelop

alotofnewm

aterialandhire

newstaff.

Thereis

noexperiencew

ithinC

ompany

Xfor

working

onthis

theme.

Com

panyX’s

programis

designedto

caterfor

impacted

comm

unities.B

ypartnering

thiscould

beexpanded

toa

broadergeographicregiontransitioning

theprogram

fromsolely

socialm

itigationto

comm

unitycontribution.

Unknow

n.

Thereis

anexisting

malaria

sprayingprogram

beingrun

inthe

countryby

experiencedN

GO

s,which

isw

ellrespectedand

supportedby

theM

inistryofH

ealth.

Thereare

existingN

GO

sw

orkingon

thisthem

ein

thecountry

with

goodsuccess.

Thereare

partnershiporganisationsw

ithexperience

inthe

country/regionw

hohave

agood

reputationfor

implem

entingm

alariaprogram

s.

Existingorganisationsare

deemed

legitimate

actorsin

thisfield.

NG

Os

havebeen

working

onm

alariaprogram

ming

inthe

countryfor

anum

berofyears

andreceive

supportfrom

externalagencies.The

chanceof

thisbeing

sustainedpost

Com

panysupportis

high.

Theseprogram

shave

onlybeen

goingfor

3years,so

longterm

sustainabilityis

unknown.

None

noted.

Questions

may

arisefrom

roleof

Com

panyX

inthis

theme.

Com

panyX

operatesin

aregion

with

highlevels

ofendem

icm

alaria.Itisalso

buildinga

largew

aterreservoir

which

may

changethe

malaria

prevalencew

ithinhost

comm

unities.

Child

malnutrition

isan

issuefor

thecountry,

butnotsom

ethingthat

theproject

impacts

directlyor

am

ajorissue

forthe

hostcom

munity.

Table7:P

artnershipassessm

entworksheet

Potentialbenefits frompartnership

Financialcontribution

Mandate

Baselineneeds

Operationaleffectiveness

Outreach

Capacity

Humanresources

Legitimacy

Sustainability

Any negativeimpacts


STEP 2Based on existing knowledge ofstakeholders, develop a list of all possiblecommunity development partners. Usingyour knowledge of these potential partners,identify their areas of strength and interestsin community development.

STEP 3Based on the assessment in step 1, identifythose themes where partnership providesyou with the greatest benefits. Then reflectback on the list developed in step 2 toidentify the best potential partners to deliveron these themes.

STEP 4When considering partnerships, it isimportant to understand the motivation of your own company for partnering. The following questions will help you in this process:

• Would the partnership have the support of key internal stakeholders?

• Would there be any internal opposition to this partnership proposal?

• What financial resources are available for partnership?

• Are staff available to support the partnership, and for how long?

• What technical resources will be available (e.g. accountancy, legal, etc.)?

• Is there agreement within your company on the purpose and expected outcomes of the partnership?

• Is there agreement on how to proceed with partnership planning?

• Do your colleagues and managers understand the resources and time that will be required to develop and implement the partnership?

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LSSTEP 5Using the narrowed options for potentialpartners (based on analysis in step 3),conduct a strengths, weaknesses,opportunities and threats (SWOT) analysisinternally for each potential partnership.This analysis will help you understand thevalue proposition for each partner in thepartnership and help to ensure your futurediscussions address their needs andconcerns as well. Table 8 should becompleted for each potential partnership(this table assumes a tri-partite partnership,but a two-way partnership could just aseasily be analysed).

STEP 6If you feel the company is ready for apartnership based on your assessment instep 4, approach potential partners (drawnfrom your list in step 3) with a view toreaching broad-level agreement to exploreways of addressing priority developmentinitiatives through partnership. The SWOTanalysis you will have completed in step 5should make these conversations mutuallybeneficial. To do this you may need to assignresponsibilities and timelines for thefollowing discussions to occur with each ofthe potential partners (see Table 9).

Table 9: Partnership action list

Establish communications with potential partners.

Validate, with external stakeholders, assumptions in your internal assessment.

Explore possible roles and resource commitments of prospective partners.

Assess potential partners’ capacity to contribute and maintain support for thepartnership.

Action Responsibility Deadline

Table 8: SWOT analysis

Strengths

Weaknesses

Opportunities

Threats

For each partnership consider:

Partner Company Government body NGO/CBO

Partnership Assessmentcontinued 4


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Strengthening community engagement following mine expansionVale, Minas Gerais, Brazil

SummaryThe expansion of Vale’s Brucutu mine in Brazil’s Minas Gerais State brought with it a rangeof significant social and economic impacts. While the expansion was well handled from atechnical perspective, failure to adequately manage these social and economic impacts –particularly relating to the large influx of work-seekers during the construction phase – ledto resentment against the company. A collaborative action plan was developed for two ofthe most directly affected cities, resulting in stronger relations between the company andlocal stakeholders.

Context and challengePrior to the mine’s arrival, the economy of São Gonçalo do Rio Abaixo was primarilyagricultural, with limited industrial infrastructure. When the mine began production, thecity’s population expanded significantly, schools were refurbished and other civic works wereundertaken such as the opening of a new cultural centre and the construction of a universitycampus. Neighbouring city Barão de Cocais also received a range of benefits from thepresence of the mine, such as the creation of new jobs, technical training and hiring of youngpeople. Additionally, development of local trade and the installation of a large automotivedealership (a supplier of Vale that moved to the city) were fostered by the company.

However, when the mine expanded there were a number of challenges that quickly led todeteriorating relations between the mine, local authorities and local communities. The mostsignificant impacts related to the 6,000 men who arrived in Barão de Cocais to work on theconstruction of the project. Most of these men were lodged in the city and the suddenincrease in population, although temporary, brought real challenges to the city’sinfrastructure. For example, the motel in the city was adapted to house the workers andgarages became dormitories. The population increase resulted in problems relating tohealth, transportation and safety services. The lack of dialogue between Vale (and itscontractors) and the community increased difficulties.

ResponseThe company commissioned an economic impact study that provided a clearer picture ofwhat had happened in the region. Using the study as a basis, the company decided toprepare an “investment plan” to support growth in Barão de Cocais. Meanwhile, during theplanning process, the company realized that many of the suggested solutions involvedinvesting in dialogue rather than large expenditures in infrastructure. This change incompany attitude began with a process of raising employee awareness. A dedicated teamwas appointed to maintain a public dialogue with the community. This team took part indeveloping “joint solution groups”, comprising company representatives, local citizens andauthorities. The groups debated the difficulties the cities were experiencing and soughtviable solutions for the existing social impacts in the city.

Vale took responsibility for the overall impact resulting from the company’s arrival andoperations. Several specialized studies were conducted to assess each issue arising in themeetings. Traffic problems caused by the increase in the number of vehicles from thecompany, for example, were mitigated with the help of outside consultants. These expertssuggested actions such as switching the right of way of certain streets, relocating bus stopsfrom certain points and changing the route used by trucks. The changes were implementedwith funding from Vale.

CASE STUDY

Ü


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Vale also worked with communities and authorities to help develop responses to problemsthat predated the mine’s arrival. For example, another study indicated that difficultiesexperienced in the local hospital pre-existed the mine’s arrival, and suggested solutions that needed to be adopted by the local government.

Outcomes The company states that as a result of the Brucutu experience, it has changed the way itrelates to communities, stating that it is now “committed to open dialogue, transparencyand the search for joint solutions”. As an example of this new attitude, Vale points out thatthe design of construction of a tailings dam was changed in order to respond to localcommunity concerns. In particular, the company reduced the number of houses thatneeded to be relocated, and put back the proposed date of the flooding of a local church in order to allow sufficient time to make a contingency plan in consultation with thecommunity.

Source: “Conversation is the key to understanding”, case study in Vale’s Sustainability Report, 2007.

Strengthening community engagement following mine expansionVale, Minas Gerais, Brazil



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Key references

ICMM, Making Mining Count in Peru, Ghana and Tanzania: Case Studies, 2010. Three separate reports. Available at:

www.icmm.com/mpd/partnerships

ICMM, Mapping In-Country Partnerships, 2010. Available at:www.icmm.com/mpd/partnerships

International Business Leaders Forum/World Business Council for Sustainable Development,A Business Guide to Development Actors. Available at:

www.wbcsd.org/pages/edocument/edocumentdetails.aspx?id=102&nosearchcontextkey=true

ODI/Business Partners for Development, Training Modules: Tri-Sector Partnerships forManaging Social Issues in the Extractive Industries, 2001, Working Paper 7. Available at:

www.odi.org.uk/work/projects/98-02-bpd-natural-resources-cluster/html/pub_working.html#

World Bank, Sharing Mining Benefits in Developing Countries: The Experience withFoundations, Trusts and Funds, Extractive Industries for Development Series, Washington DC, 2011. Available at:

http://web.worldbank.org/WBSITE/EXTERNAL/TOPICS/EXTOGMC/0,,contentMDK:22950635~pagePK:210058~piPK:210062~theSitePK:336930,00.html


DescriptionA grievance mechanism is a means by whichcommunity members or other stakeholderscan express concerns in the form of acomplaint or grievance about real orperceived actions by your project that causethem concern. The importance of effectivenon-judicial complaint mechanisms as ameans of redress in the event of disputesbetween companies and communities (orallegations that human rights have not beenupheld) is the third pillar of the UN’s“Protect, Respect and Remedy” framework.Developing robust complaint procedures forlocal community members helps underpinthe credibility of corporate human rightspolicies and ethical and community relationspractices more broadly. Most companiesdevelop a grievance form for complainantsto use and a grievance managementprocedure to ensure that grievances aredealt with in a clear and methodical manner.28

The parameters that need to be covered by a non-judicial grievance mechanism have been defined by the UN Office of theHigh Commissioner for Human Rights, in The Guiding Principles on Business andHuman Rights: Implementing the UnitedNations “Protect, Respect and Remedy”Framework.29 The key elements pertinent toyour business are summarized in Box 2.

PurposeTo give your stakeholders an avenue to raiseconcerns and complaints about your project.In recent years, international organizationsand companies have realized this is animportant part of good community relations.All too often, companies are working hard at implementing what they believe to bebeneficial community development projectswithout realizing that certain parts of thecommunity may be unhappy with someaspects of their activities. Often, the activitiesthat are causing concern are independent of the community development program, but to the community beneficiaries they areall being undertaken by the same company. By instituting a grievance procedure,stakeholders can formally voice theirconcerns, providing a valuable feedback loopto help you learn about the effectiveness of your suite of activities. If complaintsprocedures or mechanisms are welldesigned, they are likely to bring significantbenefits to you and your communities.


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Grievance Mechanism27

5

27 For more detailed information on overarching design principles and designing a complaints or grievance mechanism, see ICMM, Human Rights in the Mining and Metals Industry: Handling and Resolving Local Level Concerns and Grievances, Pilot Testing Version, 2009. Available at:www.icmm.com/page/15816/human-rights-in-the-mining-metals-sector-handling-and-resolving-local-level-concerns-grievances

28 There is much discussion about the nuances of the various terms such as grievance, complaint, mechanism and procedure. Companies may choose not to label their processes as a “mechanism” and may prefer terms such as complaints “procedures”. In practical terms there is little distinction, so they are used interchangeably in this tool.

29 Available at: www.ohchr.org/Documents/Publications/GuidingPrinciplesBusinessHR_EN.pdf

http://www.icmm.com/page/15816/human-rights-in-the-mining-metals-sector-handling-and-resolving-local-level-concerns-grievances


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Grievance Mechanismcontinued5

30 www.business-humanrights.org/SpecialRepPortal/Home

In order to ensure their effectiveness, non-judicial grievance mechanisms, both statebased and non-state based, should be:

• legitimate: enabling trust from the stakeholder groups for whose use they are intended, and being accountable for the fair conduct of grievance processes

• accessible: being known to all stakeholder groups for whose use they are intended, and providing adequate assistance for those who may face particular barriers to access

• predictable: providing a clear and known procedure with an indicative time frame for each stage, and clarity on the types of process and outcome available and means of monitoring implementation

• equitable: seeking to ensure that aggrieved parties have reasonable access to sources of information, advice and expertise necessary to engage in a grievance process on fair, informed and respectful terms

• transparent: keeping parties to a grievance informed about its progress, andproviding sufficient information about the mechanism’s performance to build confidence in its effectiveness and meet any public interest at stake

• rights-compatible: ensuring that outcomes and remedies accord with internationally recognized human rights

• a source of continuous learning: drawing on relevant measures to identify lessons for improving the mechanism and preventing future grievances and harms.

Operational-level mechanisms should also be:

• based on engagement and dialogue: consulting the stakeholder groups for whose use they are intended on their design and performance, and focusing on dialogue as the means to address and resolve grievances.

Box 2: Effectiveness criteria for non-judicial grievance mechanisms30


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Grievance Mechanismcontinued 5In addition to serving as a platform to resolvegrievances, an effective grievance mechanismcan help achieve the following goals:

• open channels for effective communication

• demonstrate that a company is concerned about community members and their well-being

• mitigate or prevent adverse impacts on communities caused by company operations

• improve trust and respect

• provide structures for raising, addressing and resolving issues that reduce imbalances in power

• promote productive relationships

• build community acceptance of a company’s “social license” to operate.31

It should be made clear to communities thatthe existence of a mechanism does not inany way inhibit their access to legal orjudicial recourse processes. In somecountries, legal systems may be seen to beinadequate or beyond the financial reach ofcommunities, which is why their attentionoften focuses on corporate mechanisms. Complainants should be free to pursue legalor judicial processes at any stage if they feeltheir concerns are not being adequatelyaddressed by the mechanism.

The IFC and ICMM have both producedvaluable handbooks on this topic in the lastcouple of years (see key references sectionof this tool). It would be worthwhile readingthese reference documents when preparingyour company’s grievance mechanism.This tool sets out the practical steps involved in establishing a grievancemechanism rather than rehearsing thedetailed discussions contained in the farmore extensive manuals.

When to use this toolThis tool should be used whenever acomplaint is received from a communitymember, whether oral or written. In somecases, a minor verbal complaint from acommunity member may be able to beresolved swiftly and informally. All complaintsor grievances should be recorded so that the formal mechanism can be engaged. Anygrievance mechanism needs to be culturallyappropriate, allowing for complaints in alanguage and form sensitive to local needs.If a complaint is received in writing, theprocedure can commence immediately.There may be a reason for designing amechanism that allows for verbal complaints(e.g. a lack of literacy among somecommunity members). If an oral complaint is made, the company should be receptive to any concerns and register them officiallyon the company’s grievance form, and thenthe grievance procedure can commence.

It is important to create an organizationalstructure and mindset to support themechanism. This organizational structuremust include the involvement of staff withthe power to resolve grievances on behalf of the company, with seniority that reflectsthe level of severity of the complaint.Community relations officers (CROs) play avital role in informing community membersabout the grievance mechanism and inrelaying complaints to the company but it isnot always their responsibility to solve all the problems.

31 From the CAO, World Bank Group, A Guide to Designing and Implementing Grievance Mechanisms for Development Projects, 2008, p. 11.


STEP 3Respond to grievance Written communication to the complainantto acknowledge the grievance and provideinformation as to expected steps and timing for resolution of the grievance. This communication is to be provided withina set period of time, typically seven workingdays of the receipt of the grievance. Where illiteracy is common, considerationmust be given to the means ofcommunicating this message.

STEP 4Investigate and resolve This procedure investigates the underlyingcause(s) of the grievance and developsactions needed to prevent recurrence of asimilar grievance. The approach and teammembership to complete the investigationwill depend upon the category and level ofthe grievance. Some investigations mayrequire a simple examination of thecompany’s records, whereas others mayrequire discussions with many stakeholders,both internal and external.

A grievance resolution report should becompleted no later than one month from the start of the grievance investigation,which begins on the date the grievance was entered in the consultation database(this obviously depends on the nature of thegrievance, but this time frame should beaimed for). The community relations (CR)manager shall co-ordinate conflict resolutionactivities required to contain and resolveactual or potential conflicts and ensure thatthe complainant is kept informed of theprogress of the grievance procedure,especially if a longer period of time isneeded to complete the investigation.

How to use this toolBy designing a grievance mechanism in atransparent and participatory manner withthe community you are likely to increase buy-in and understanding of the mechanism.You need to consider issues of accessibility,especially ensuring that vulnerable or lessvisible members of the community haverecourse to the procedure. Regardless of theexact method, it is important to define aclear process involving regular updates forcomplainants. One method is shown in theprocedure flowchart (see Figure 4). The sevenpotential steps are summarized as follows:

STEP 1Receive grievanceThe staff member receiving the grievance isresponsible for documenting and recordingthe grievance and ensuring that it is enteredinto the stakeholder engagement databaseor complaints log.

STEP 2Preliminary assessment An initial assessment of the grievance shouldbe conducted to assign the grievance to therelevant person in the company. Grievancesmay be classified into a number of categories,such as environmental, cultural heritage,land disturbance, recruitment procedures,health and safety, human rights, physical or economic displacement or related to aspecific community development project. For each of these categories, a differentperson within the company would beassigned to deal with the specific details ofinvestigating the grievance.

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Grievance Mechanismcontinued 5STEP 5ConclusionThe CR manager shall follow theinvestigation procedure in order to developrecommendations to ensure the grievancedoes not reoccur. The aggrieved parties shall be engaged and their views about thecompany recommendations sought, toensure that they are satisfied with theproposed resolution. If the complainant issatisfied, then the CR manager shall seektheir sign-off that the grievance has beenresolved.

STEP 6Further actionIf the complainant is not satisfied with theproposed solution, the CRO and/or CRmanager will initiate further investigation to determine what further action may betaken. In the case that satisfaction cannot be achieved, then the grievance may bereferred for third party mediation or external panel review.

STEP 7Monitoring and evaluationPart of the grievance managementprocedure is entering the details and eachstep of progress into the company’sstakeholder engagement database (see tool 15 Management Systems). At variousintervals, monthly is ideal, the number ofgrievances received, resolved andoutstanding should be tallied and reported to management and advisers. At leastannually, the trends and time taken forgrievance resolution should be analysed and the evaluation used for assessing theefficacy of the grievance mechanisms. If the procedure is not managing to resolvethe majority of grievances within the settime frames, then the mechanism may needadjusting. Likewise, if no grievances arebeing received, then the system is likelyeither inaccessible to stakeholders or is not trusted and needs to be revised. Better indicators of success are thatresolution is received to the satisfaction ofboth parties within the agreed amount oftime specified in the procedure on a majorityof cases and that there are not recurringcomplaints about the same issues.


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Figure 4: Grievance procedure flowchart

STEP 1

STEP 2

STEP 3

STEP 4

STEP 5

STEP 6

STEP 7

• Engage community member and receive grievance • Record the grievance and enter it into the database• TIP: Ensure mechanism is accessible and promote external awareness

of it, allow for different ways of making complaints and adapt these to local culture, log and document all complaints carefully

• Preliminary assessment – categorize the complaint – environment, cultural, employment, human rights, health and safety, etc.

• Assign the grievance to the relevant officer• TIP: Keep potential scope of issues broad, ensure internal support and

accountability for the mechanism

• Respond to the complaint – write or communicate verbally to the complainant• Explain the process and timeline of the grievance procedure• TIP: Define a clear process for resolving the complaints involving regular

updates to the complainant

• Investigate the grievance using an appropriate team and required information• Devise a resolution process and record the results• TIP: Involve communities and/or respected third parties where possible in

the design and implementation of the mechanism

• Follow up the resolution process with the aggrieved parties to ensure their satisfaction

• Seek sign-off from the complainant and file all documents in database• TIP: Seek resolution to concerns and grievances where possible through

dialogue and joint problem solving with the communities

• If the complainant is not satisfied, discuss further options• If matter is still unresolved, refer matter to third party mediation or external

review• TIP: It may be necessary to deepen community or third party engagement

to strengthen trust. In some cases setting up an independent forum or process, potentially led by third parties, may be necessary

• Regularly monitor and evaluate the numbers of grievances received, resolved and outstanding

• Adjust procedure if required• TIP: Internally evaluate how the mechanism is functioning, report externally

on the results of the mechanism


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Setting up an independent forum or processCerrejon coal mine in Colombia

Anglo American, BHP Billiton and Xstrata, equal owners of the Cerrejon coal mine in Colombia, commissioned in August 2007 an independent “social review” of Cerrejon’s past and current social engagement to provide a credible assessment of the mine’s social impact and outstanding concerns. Though not explicitly a complaints or grievanceresolution process, the panel’s recommendations provided insights into the resolution of a number of legacy issues, notably regarding concerns and grievances over theresettlement of the Tabaco community in 2000–2001.

The review was conducted independently of Cerrejon management by a panel of fourinternationally recognized experts in the area of social development, supported by a localconsultancy to undertake fieldwork. The panel consulted extensively at the mine site andwithin local communities, as well as with international stakeholders. The panel’s reportwas published in March 2008 and highlighted a number of areas in which Cerrejon couldenhance its social practices. Cerrejon’s management subsequently produced acomprehensive response to the report as well as an action plan to address its findings.These documents are all publicly available.

Among its recommendations, the panel emphasized the need to address outstandingissues over the resettlement of the Tabaco community. It urged Cerrejon “to facilitatereconciliation between the disparate groups formed by the former inhabitants of the village of Tabaco … through a consultative, participatory process”. Taking up therecommendation, Cerrejon appointed the former chair of the review panel to act asindependent facilitator to a series of dialogue meetings with community members fromAugust to December 2008. This led to an agreement setting out a number of commitmentsby Cerrejon, for example to purchase a new plot of land where the Tabaco community willbe reunited.

It is as yet too early to evaluate whether the concerns and grievances over the Tabacoresettlement are indeed resolved but the recent agreement marks a significant step.According to Cerrejon, “the comprehensive independent review of our social processes has been a very constructive experience”.

Source: ICMM, Human Rights in the Mining and Metals Industry: Handling and Resolving Local Level Concernsand Grievances, Pilot Testing Version, 2009. Available at:www.icmm.com/page/15816/human-rights-in-the-mining-metals-sector-handling-and-resolving-local-level-concerns-grievances

CASE STUDY



Key references

CAO, World Bank Group, A Guide to Designing and Implementing Grievance Mechanisms forDevelopment Projects, Advisory Note, Washington DC, 2008. Available at:

www.cao-ombudsman.org

Centre for Social Responsibility in Mining, Mining Industry Perspectives on HandlingCommunity Grievances: Summary and Analysis of Industry Interviews, University ofQueensland, 2009. Available at:

www.csrm.uq.edu.au/docs/Mining%20industry%20perspectives%20on%20handling%20community%20grievances.pdf

Harvard University, Corporate Social Responsibility Initiative, Rights-Compatible GrievanceMechanisms: A Guidance Tool for Companies and Their Stakeholders, 2008. Available at:

www.reports-and-materials.org/Grievance-mechanisms-principles-Jan-2008.pdf

ICMM, Human Rights in the Mining and Metals Industry: Handling and Resolving Local LevelConcerns and Grievances, Pilot Testing Version, 2009. Available at:

www.icmm.com

IFC, Addressing Grievances from Project-Affected Communities, Good Practice Note,Washington DC, September 2009. Available at:


United Nations Office of the High Commissioner for Human Rights, The Guiding Principles on Business and Human Rights: Implementing the United Nations “Protect, Respect andRemedy” Framework, Geneva, 2011. Available at:

www.ohchr.org/Documents/Issues/Business/A-HRC-17-31_AEV.pdf

Zandvliet, L. and Anderson, M. B., Getting it Right: Making Corporate-Community RelationsWork, Greenleaf Publishing, Sheffield, 2009, especially Chapter 9, pp. 131–134.

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http://www.csrm.uq.edu.au/docs/Mining%20industry%20perspectives%20on%20handling%20community%20grievances.pdf

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Planning tools are used forplanning the resources, bothhuman and financial, that will be needed to undertakecommunity developmentactivities or to expand or adopt new programs

PLANNING

TOOLS

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BEING ABLE TO CLEARLYARTICULATE THE RESOURCES NEEDED, BOTH HUMAN AND ECONOMIC, FOR IMPLEMENTING PROGRAMS AND POLICIES IS KEY TO BEING ABLE TO PLAN AND MANAGE BUDGETS AND PERSONNEL, FOR BOTH COMMUNITIES AND COMPANIES.

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Planning tools

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TOOL 6 Strategic Planning FrameworkThe process through which you understand why you want to contribute to community development and define your development objectives, how you plan to achieve them, the resources you will need and how you will know when you have succeeded. This can be equally effective for a community planning its development future as it can be for a company planning its community investment program.

TOOL 7 Community MappingAn exercise in which local people map out their community’s physical layout. Designed to start people recognizing that they are the experts about their own community and to get discussion and co-operation going.

TOOL 8 Institutional Analysis An exercise in evaluating the variety, strength and linkages of institutions within and around a community.

TOOL 9 Development Opportunity RankingTo allow a full range of participants to decide upon priority development issues in the community. A workshop process that enables a broad range of community participants, including women, youth, the elderly and disabled, to define and explain the development situation in their community.

Development opportunity ranking helps community members decide which projects to start implementing first, by sorting them according to priority and feasibility. This is done taking into account the locally available resources, skills and capacities.

TOOL 10 Financial Valuation ToolA process through which companies can plan their sustainable investment projects by assessing the extent to which these projects could create value and/or provide value protection for the company. The quality of a sustainability investment determines whether risks and opportunities are maximized or minimized. As such, quality needs to be accurately assessed as input into financial valuation. The Financial Valuation Tool: Sustainability Program Quality Framework can be used to assess the quality of a company’s portfolio of sustainability investments.


Guidance for using planning tools

Deciding upon the strategic orientation and core objectives of the communitydevelopment program is an essentialfoundation step, both for companies andcommunities. Ensuring that companypolicies, procedures and informationcollection methods are co-ordinated enablesthe constant monitoring of progress so that resources can be adjusted as needed.Being able to clearly articulate the resourcesneeded, both human and economic, forimplementing programs and policies is keyto being able to plan and manage budgetsand personnel, for both communities andcompanies. In contrast to the relationshipstools, these planning tools are targeted atcommunity development projects rather thanthe broader mining and metals activities.

As mining company staff, you need to ensure that the company’s strategic plansare in accord with the needs of surroundingcommunities. You will need systems, policies and procedures in place that ensureco-ordination between all actors andactivities. You need to be able to monitorresource levels for program implementation.You will need to ensure that your team hasthe right skill set to successfully implementcommunity development programs.

Government officers, NGO/CBO staff andcommunity members will also likely findthese tools useful. The more involved eachof these groups is in the visioningundertaken by a company, the better theirinterests will be represented in thecompany’s approach. Community membersand NGOs/CBOs can also use the tools toassess what competencies they need inorder to pursue their priority developmentprograms and to actively engage with thecompany and government in monitoring andevaluating their community plans.

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Planning toolscontinued


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Strategic PlanningFramework 6DescriptionCommunity development should be anintegral component of mining and metalsactivity from exploration through to closureand beyond. It should be aligned with otherorganizational processes and strategies –including risk and impact assessment,communications and consultation,employment and local business development– concerned with minimizing negativeimpacts to communities, minimizing risk for the company and maximizingopportunities associated with the operation.The strategic planning framework flowchart(see Figure 5) should be informed by theSocial Baseline Study (tool 11) and will helpyou to clarify your project’s communitydevelopment objectives and to relate thoseobjectives to the broader goals of yourorganization. Although it is essential that acompany plans its community investmentprograms strategically in order to align them with business objectives, it can beequally beneficial for a community tomap out its vision, mission statement andstrategic development goals.

Strategic planning is the process throughwhich you understand why you want tocontribute to community development: todefine your development objectives, how youplan to achieve those objectives, who you willwork with, the resources you will need andhow you will know when you have succeeded.Initially, you need to conduct strategic planninginternally within your organization. Then youwill need to ascertain local communities’,and local governments’, aspirations andpriorities. Data gathered on the communitysituation in tool 11 should help to define thevision, mission, etc. As you establish closerworking relations with regional stakeholders,and progress towards detailed activityplanning, you will need to share and reviewyour strategic plans in consultation withregional partners to ensure consistency.

PurposeTo guide fundamental decisions and actionsthat shape how your community developmentprogram operates. This covers:

• preparing the best way to respond to changing and sometimes hostile environments

• being clear about your organization’s objectives and resources, and consciously incorporating both into your response to a dynamic environment

• setting goals (planning a desired future), developing an approach to achieving those goals and measuring whether they havebeen achieved.

The strategic planning process applies asequence of questions that help you examineexperience, test assumptions, gather andincorporate information about the presentand anticipate the environment in which youwill operate in the future.

Strategic planning will lead to a set ofdecisions about what you want to do, whyand how you do it. Naturally, some decisionsand actions are more important than others– much of strategic planning lies in makingthe tough decisions about what is mostimportant to achieving success.


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Strategic Planning Frameworkcontinued

When to use this toolTo ensure that community projects areresponsive to the needs of the community anddecisions are made to deliver lasting value, this tool should be used before any significantinvestment is made in community projects. This tool should be used as early as possible,when building your community developmentteam (see tool 13 Competencies Assessment).Communities should undertake this process, if they wish to, prior to developing theirCommunity Action Plans (tool 16) usingparticipatory methods. Post-closuresustainability also needs to be taken intoaccount when defining strategies.

How to use this toolStrategic planning includes five key elements,discussed below:

• a vision statement, defining your objectives,values and principles

• a mission statement, describing what youare going to do and why you are going to do it

• goals, the results you want to achieve in themedium to long-term

• purposes, the means by which you will achieveyour goals and with what resources (inputs)

• outputs, the measures to be achieved byimplementing strategies in pursuit of your defined objectives.

Strategic planning will provide the foundation –as you improve your understanding of yourlocal environment, and explore opportunitiesfor partnership with regional stakeholders – fordetailed program planning. This is where youbegin to address critical management issuesrelated to resource allocation, deadlines,budgets, responsibilities and performance.Program planning is described in detail later inthe toolkit (see tool 16 Community Action Plans)and resourcing issues are discussed further in the Management Systems tool (tool 15).

STEP 1Develop vision statement Your vision reflects your understanding ofthe ideal conditions for your community or for the part your project plays in thecommunity, for example how things mightlook if community development wereperfectly addressed and there wereharmonious and mutually supportiverelationships between the mining companyand other sectors of the community. It isbest articulated and communicated througha vision statement.

By developing a vision statement, you clarifyyour objectives, values and principles – firstfor yourself, and then for your team andorganization (see Table 10). Vision statementsshould generally be:

• easily understood by members of thecommunity and shared by all team members

• broad enough to include a diverse variety of perspectives and based on an assessment of what is important to people

• inspiring and uplifting to everyone involved in your effort

• easy to communicate – generally short enough to fit on a T-shirt.

Your vision statement should inspire yourpeople to dream. Your mission statementshould inspire them to action.

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Strategic Planning Frameworkcontinued 6STEP 2Develop mission statement The mission statement grounds your visionin practical terms. Your mission statementdescribes what you are going to do and whyyou are going to do it. It is similar to a visionstatement, in that it also looks at the bigpicture, but it is more concrete, and moreaction oriented. The mission statement mayidentify broad objectives and indicate inbroad terms how you might reach yourgoals. Mission statements generally are:

• concise – while not as short as visionstatements, they still get their point acrossin one sentence

• outcome oriented – they explain the fundamental outcomes your organization is working to achieve

• inclusive – while mission statements describe your key goals, they do so in very broad terms. Good mission statements are not limiting in the strategies or sectors of the community that may become involved in the project.

Clearly defined vision and missionstatements are important for a number ofreasons:

• they help your organization focus on what is really important

• they let other individuals and organizations have a snapshot view of who you are and what you want to do

• they are helpful in having members who are focused and bound together in common purpose

• they provide a basis for developing the other aspects of your action planning process: your objectives, strategies and action plans.

STEP 3State your goals The next element is to state your goals – theresults you want to achieve in the medium to long term. Goals should reflect theexpectations and requirements of all majorstakeholders, and the underlying reasons forestablishing the development initiative.These objectives could cover, for example,co-ordination and service delivery, capacitybuilding and institutional development.

STEP 4Develop the process to achieve yourobjectivesDevelop the steps by which your mission,goals, etc. may be achieved. They can coverthe community development program as a whole, including such matters as co-ordination, participation and sustainability,or they can relate to primary matters in key functional areas such as, for example,health provisions, education, training ofcommunity leaders, etc. Resources (inputs)available and needed to carry out thestrategic functions should be considered at this stage.

STEP 5Define outputsThe outputs are specific interim or ultimatetime-based measurements to be achieved byimplementing strategies in pursuit of yourdefined objectives such as:

• to establish a regional development partnership with key stakeholders within the next three years

• to achieve 100% vaccination in three years’ time

• to increase school completion rates by 20%, etc.


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Strategic Planning Frameworkcontinued

Outputs should be quantifiable, consistent,realistic and achievable. They should bebased on the impacts identified in the Social Impact and OpportunitiesAssessment (tool 12) and thereforegrounded in knowledge gathered throughthe Social Baseline Survey (tool 11).Detailed, program-specific outputs will bedeveloped to align with the goals identifiedby community members when communityaction plans are designed.

STEP 6Develop program The final element is the developmentprogram itself, which sets out theimplementation plans for key strategies.This is described in detail later in the toolkitas the Community Action Plan (tool 16), and covers resources, objectives, timescales, deadlines and budgets.

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Figure 5: Strategic planning framework flowchart

Strategicdirection

Goals

Purpose

Outputs

Inputs

• Vision • Mission

Tool 6 – Strategic Planning Framework

• Medium- long-term project objectives (three to five years or longer) Tool 16 – Community Action Plan

• Current program objectives needed to achieve goals (e.g. this year)Tool 9 – Development Opportunity Ranking

• Immediate outputs to achieve purpose of the programTool 9 – Development Opportunity Ranking

• Resources needed to produce outputsTool 13 – Competencies Assessment


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Strategic Planning Frameworkcontinued 6Table 10: Step-by-step process for developing a vision and mission statement

Step

1 Learn what is important topeople in your community

2 Decide on the generalfocus of your program

Knowing the important issues in your community isvital for the establishment of a strong, effective andenduring development program. Your first step indeveloping your vision and mission is to define theissues that matter most to people in your community.Do so through consultation, surveys or facilitated focusgroups. Identify what is important to the community,and what local people perceive to be the community’sstrengths and problems, and what people wish thecommunity was like. As all of these activities shouldhave been undertaken in the baseline study and SocialImpact and Opportunities Assessment (tools 11 and 12), this information may already be available to thecompany.

Once you have heard what the community has to say, decide the general focus of your program.

• What topic is most important to your organization and your community?

• What level will you work at – the village, local area or broader region?

• Is there a niche opportunity for your company to establish a name for itself in a specific field where a real difference could be made?

• Are there groups already working on topics in the region who your company could partner with?

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Strategic Planning Frameworkcontinued6

Table 10: Step-by-step process for developing a vision and mission Statement continued

Step

3 Develop your visionstatement

4 Develop your missionstatement

Now that you have a clearer understanding of what you want to do and why, you can develop the statementsthat will capture your ideas.

Remember, it may require several vision statements to fully capture the vision of those involved in thecommunity development program: you do not need – or even want – just one “perfect” phrase. Encouragepeople to suggest all of their ideas, and write themdown – possibly on poster paper at the front of theroom, so people can be further inspired by the ideas of others. After you have brainstormed a lot of ideas,your group can discuss critically the different ideas.Often, at times, several of the vision statements willjust jump out at you – someone will suggest it, andpeople will just instantly think, “That’s it!” You can alsoask yourselves the following questions about visionstatements:

• Will it draw people to common work?

• Does it give hope for a better future?

• Will it inspire team members to realize thecommunity’s dreams through positive, effective action?

• Does it provide a basis for developing the other aspects of your action planning process?

The process of developing your mission statement ismuch like that for developing your vision statements.Remember, though, that unlike with vision statements,you will want to develop a single mission statement.After having brainstormed for possible statements, you will want to ask of each one:

• Does it describe what you will do and why you will do it?

• Is it concise (one sentence)?

• Is it outcome oriented?

• Is it inclusive of the goals and people who may become involved in the organization?

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Strategic Planning Frameworkcontinued 6Table 10: Step-by-step process for developing a vision and mission statement continued

Step

5 Obtain consensus on your vision and missionstatements

6 Decide how you will useyour vision and missionstatements

Your next step is to learn what other members of yourorganization or community think of your vision andmission statements before you start to use themregularly. Talk to the same community leaders or focusgroup members you spoke to originally. Ensure thatthey agree that the statements together capture thespirit of what they believe and desire. You might findyou have omitted something very important by mistake.

Finally, remember that all of your hard work indeveloping your vision and mission statements willcount for nothing if you do not communicate them andincorporate them in your action planning. The point isto get the message across to your internal and externalstakeholders and fellow community members – and tobegin living your expressed values and goals.

Action Description


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Strategic Planning Frameworkcontinued6

Key references

AusAID, The Logical Framework Approach, 2002. Available at:

www.who.int/ncd/vision2020_actionplan/documents/LFAguidelines.pdf

DFID, Tools for Development: A Handbook for Those Engaged in Development Activity, 2003.Available at:

www.dfid.gov.uk/Documents/publications/toolsfordevelopment.pdf

IFC, Strategic Community Investment: A Good Practice Handbook for Companies DoingBusiness in Emerging Markets, Washington DC, June 2010.

IFC, Strategic Community Investment: A Quick Guide, Highlights from IFC’s Good PracticeHandbook, Washington DC, February 2010. Both IFC publications available at:



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Community Mapping 7DescriptionA community map is a visual representationof what the community perceives as itscommunity space. This includes showing the boundary of the community asunderstood by community members and allthe elements recognized by them as part oftheir area. Most of the spatial information is obtained through direct observation andfacilitators should familiarize themselveswith the area sufficiently to be able to assist the community in drawing the map.However, it is the community membersthemselves who must decide what does anddoes not go on the map, where items areplaced on the map and how big they shouldbe. Some items of importance to thecommunity, and which they may choose tomark on the map, may not be noticeable tooutsiders – sacred sites or clan boundaries,for example.

PurposeTo encourage community members torecognize that they are the experts abouttheir own community and to get discussionand co-operation going. Community mappingcan be used as an ice-breaking exercise inwhich community groups sketch out theircommunity’s physical layout. You mightseparate groups of men and women if that is appropriate and practical, and draw mapswith different features, which can lead tointeresting discussions about communitydynamics.

The objective of this exercise is not toproduce any particular kind of map, but to engage community members, possiblyunused to being involved in planningexercises, in mapping out their owncommunity as they see it and to startanalysing for themselves how theircommunity functions. It is also veryinstructive to the facilitators, company andgovernment people to learn about how thecommunity functions from the inside and to observe community dynamics andcapabilities.

If the combined community meeting wishesto, they could produce a combinedcommunity map, incorporating features from all the different small group maps.


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Community Mappingcontinued

When to use this toolAs the first of a series of exercises that maylead up to a community developmentplanning workshop to develop a CommunityAction Plan (see tool 16). A tool like this isalso often used as part of the initial analysisfor a social baseline (see tool 11).

How to use this toolGather interested community memberstogether for a community developmentplanning workshop.

STEP 1Try to ensure that as many people aspossible feel encouraged and welcome to attend, although no-one should bepressured to join in. Ask them to dividethemselves into groups, which they often do along gender lines, and then to draw a map of their community as they see it (see Figure 6). People are often shy andstate that official maps are better than theycan produce. Some may prefer to do roughsketches, in the sand or on rough paper,before committing the drawing to cardboard.Once people realize that they are beingasked to draw their picture of theircommunity, not for someone else’s use, they usually enjoy the process.

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“A tool like this is also often used as part of the initial analysis for a social baseline.”


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Community Mappingcontinued 7Figure 6: Example of community sketch map

Source: Training Kit on Participatory Spatial Information Management and Communication, Module 8, Ground and Sketch Mapping. CTA, the Netherlands and IFAD, ItalySee http://pgis-tk.cta.int for further information(Photo. Steward Brown, 2010)


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Community Mappingcontinued7

Key references

IFC, Investing in People: Sustaining Communities Through Improved Business Practice.A Community Development Resource Guide for Companies. Washington DC, 2001. Available at:


National Environment Secretariat, Government of Kenya; Clark University; Egerton University;and the Center for International Development and Environment of the World ResourcesInstitute, Participatory Rural Appraisal Handbook: Conducting PRAs in Kenya, December1991.

Oduor-Naoh, E. et al. Implementing PRA: A Handbook to Facilitate Participatory RuralAppraisal, Program for International Development, Clark University, Worcester, MA, 1992.

Other participatory tools references are listed on p. 47 of the IFC, Stakeholder Engagement: A Good Practice Handbook for Companies Doing Business in Emerging Markets,Washington DC, 2007. Available at:



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Institutional Analysis 8DescriptionInstitutional analysis is a process fordiscussing what institutions are present inand around a community, how importanteach institution is, how they relate to eachother and who participates in them.Institutions could be schools, churches,mosques, sports teams, fishing or farmingco-operatives, women’s groups, youthgroups, businesses or companies,government offices and a range of otherorganizations.

PurposeTo ask community members to describe theinstitutions that exist in their community,their function, how important they are inrelation to other institutions and how centralor peripheral they are to the community’slife. This exercise is immensely useful forassessment and planning purposes becauseit becomes apparent which communityinstitutions are vibrant enough to play anactive role in development activities andwhich may need strengthening. You will findone of the major benefits is that it shouldreveal who the community membersconsider to be influential, not just those who appear to be in charge at first glance.

When to use this toolAs part of a series of exercises that may leadup to a community development planningworkshop to develop a Community ActionPlan (see tool 16). This should be done when community development programs arebeing considered, so that active communityengagement in the planning process can be encouraged.


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Institutional Analysiscontinued8

How to use this toolThis is best done with a form of Venndiagram, in which different-sized circles ofpaper are used to represent each institution.

STEP 1Using pre-prepared paper circles of differentsizes, members of the community choose a circle to represent an institution that isimportant to them. Ask them to explain therole of that institution and why they havechosen a particular size of circle torepresent its relative importance. Differentcommunity members often challenge thesize of circles chosen and lively discussionensues.

STEP 2Once all institutions are represented by a circle whose size has been agreed upon, draw a large circle on the groundrepresenting the community and ask thecommunity members to place theinstitutional circles either inside the circle, outside the circle or straddling the boundary, indicating how central each institution is to the community (seeFigure 7). The relationship between various institutions may also be described by thedistance between the circles.

As with all participatory planning exercises,the institutional analysis may be undertakenby separate groups of women, youth, theelderly, religious or ethnic minorities, andthese separate sessions may reveal different power bases within a community. If undertaken in joint session, it is essentialthat the facilitators ensure the opportunityfor all community members to contribute,not just the most vocal.


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Institutional Analysiscontinued 8Figure 7: Institutional diagram of an inland fishing village in Wendo Tcham, Guinea-Bissau, 2004

Source: Participatory Landing Site Development for Artisanal Fisheries Livelihoods,FAO Fisheries Technical Paper 466, Rome, 2004, Figure 1, page 28.www.fao.org/docrep/007/y5552e/y5552e06.htm

Key

The village Links inside the village and links with governmentorganizations and traders outside the village

Health group

Fantamidwife

Youngmen’sgroup

Leader atSutumaca

Tribunal at Gabu

Municipalityof Beli

Wise menat Madina

de Boe

Almamereligious

group

Oretchomtown

Women’s group

Fodewomen’sadviser

Fisheriesgroup

BusinessmanMamadu Boi

at Bafata

Other towns:Marea, Beli

and Tchetche

Villagecommittee

at Tchetche

Villageheadman at Madina

de Boe

Sale of fish at:Beli, Dandu,Madina and

Tchetche

Fishingpermits at Beli

Sale of fish at: Oretchon,

Gabu andTchetche

Bantaba group

Villagecommittee


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Institutional Analysiscontinued8

Key references

Eldis, Livelihoods Connect: Sustainable Livelihoods Toolbox (web-based resources). Section 1 of the toolbox: Policy, institutions and processes. Available at:

www.eldis.org/go/topics/dossiers/livelihoods-connect/tools

IFC, Strategic Community Investment: A Good Practice Handbook for Companies Doing Business in Emerging Markets, Washington DC, June 2010 (see tool 3). Available at:





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Development OpportunityRanking 9DescriptionThe Development Opportunity Ranking toolcombines assessment and planningprocesses. Community members identifytheir major development priorities orconcerns and then assess the bestopportunities for achieving desired changes.The meetings needed to undertake this two-step process may stretch over severalsessions, depending upon the time availableto participants and how much discussion andresearch they might like to pursue betweenworkshop sessions.

This tool requires a facilitator to encouragecommunity members to think broadly aboutpotential development opportunities,perhaps introducing ideas by describingprograms they have seen elsewhere(although they need to be careful not toimpose their own ideas upon the community).This is best undertaken in a small groupsetting, conducted in the community orvillage where stakeholders live. It shouldbegin with a non-threatening, focuseddiscussion that uses small group dynamicsto produce a complete and ranked census ofthe development opportunities identified byindividual households and the community as a whole.

A list of potential opportunities to addresseach development challenge should bedrawn up from community discussions,taking into consideration the community’scapacity to address these challengesthemselves. Each opportunity should then be ranked for its suitability as a solutionusing an agreed set of criteria, many ofwhich are tried and tested. The beauty of this process is that opportunities thatrequire little outside input or finance oftenscore higher than those dependent onassistance. This can be enlightening for acommunity by helping them realize thepower of self-management. This prioritizationof opportunities can allow communities tostart work on some of the “easier” options,while you may look into how your projectcould support the more complex orresource-intensive options.

When to use this toolAs part of a series of exercises that may lead up to community development planningworkshops to develop a Community ActionPlan (see tool 16). This should be done when community development programs arebeing considered, so that active communityengagement in the planning process can be encouraged.

How to use this toolThis exercise is usually done in a communityworkshop (which may be a series ofmeetings, and may be run in several smallergroupings of community members, as theyprefer) and led by experienced facilitators,who may come from the community, fromNGOs, from local government agencies or be consultants hired by your company.Facilitators should not lead the discussion in any particular direction, other than toexplain the process and to prompt thoughtsand discussion. This approach provides thesetting in which all participants cancontribute. No topic is rejected. All issuesare considered. Community members arethe only contributors, although they may call for suggestions and ideas from thefacilitators or other observers, including you. The final ranking of developmentopportunities is to be decided upon andowned by the community participants.

PurposeFor community members to articulate thedevelopment situation in their community, to discuss it as a community and then tocollectively decide upon developmentpriorities to be tackled. It is not intended to elicit a “laundry list” of problems andrequests, but rather to encourage people to consider how they would like to improvetheir lives and how they might go aboutmaking the desired changes, with thesupport of other parties, such as yourproject, the government and NGOs. This canbe coupled with the asset-based communitydevelopment approach (ABCD),32 which askscommunity members to identify all theirassets (be they physical, mental, spiritual,financial, etc.) that can be used to supportthe achievement of development outcomesin their own community.

Once the options are agreed, this tool willhelp community members and otherdevelopment partners decide which projectsto start implementing first. A scoring systemis used for ranking the opportunities againstagreed sustainability criteria, such as costand the need for external expertise andfinance. While a score may be compellingwith your colleagues, you need to rememberthat community feelings about opportunitiesare more important than any so-calledobjective score.


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Development Opportunity Rankingcontinued9

32 Coady International Institute, From Clients to Citizens: Asset-Based Community Development as a Strategy for Community-Driven Development, 2002. Available at: www.abcdinstitute.org/publications/related

STEP 1Initiate meeting with community leaders The facilitator will make initial contact withvillages or communities – ideally, this wouldbe someone known to the community.Discussions with the village leader, elders or key individuals in each community,including women and youth, will evaluateinterest and capacity of each community toparticipate in community developmentplanning activities. If there is interest andsufficient labour, resource and financialcapacity to effectively participate in activities,plans would be made to conduct adevelopment opportunity ranking exercisewith that community.

The facilitator needs to emphasize theimportance of inclusion of men and women,youth and the elderly from the outset ofdiscussions and ensure that representativesof these different groups are included inplanning the meeting.

STEP 2Development opportunity identification(small groups) Development opportunity ranking beginswith the coming together of the community.If segregation is preferred, ask men andwomen to meet in separate locations. The facilitator introduces and explains theprocess and, with other members of theteam, facilitates the meeting. Questions thatcan be asked include:

• What is most important for the future of your family?

• What are the priority development needs for your community?

It is ideal if individuals and families answer,or at least consider, these questions forthemselves first, before the village view isagreed through discussion. If individuals are comfortable completing this task, thefacilitator should assemble them into small groups of up to 10 people – although six or less is ideal. Each group will be asked to discuss the development opportunitiesidentified by individual participants. Thegroup is asked to reach consensus on thepriority development opportunities theycollectively consider important at the villageor community level. They record thisconsensus outcome on a large piece ofpaper, ready for presentation to otherparticipants.

STEP 3Community level development opportunityconsensus The consensus from each small group willbe shared with the other participants in aplenary session. These developmentopportunity priorities should be recorded bythe facilitator. Participants then regard thelists of opportunities from small groups andcollectively prioritize them for the village orcommunity. Consensus is sought on the topfive or ten (to be decided by the community)development priorities.


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Development Opportunity Rankingcontinued 9

STEP 4Development opportunity ranking At the conclusion of step 3 the communitywill have a list of projects or opportunitiesthey would like to pursue, possiblyaddressing the same development topic, or avaried group. Not all of these opportunitieswill be able to be addressed by you, or thecommunity themselves, in the short,medium or long term. To inform the rankingof these opportunities, it is best to develop aset of agreed criteria to use to assess theopportunities for each development theme.Commonly used criteria for rankingopportunities are:

• Sustainability – can the community keep the project running by itself, after outside assistance has gone?

• Productivity – will the project substantially increase the availability of needed resources?

• Equitability – will the project benefit a broad cross-section of the community?

• Cost – will large amounts of external funding be needed?

• Community contribution – will the community be able and willing to contribute to the project (normally through an in-kind contribution)?

• Technical feasibility – does the project require specialized expertise both to start and maintain?

• Social/cultural acceptability – does the project fit within the community’s norms?

• Time needed – will it take a long time for the community to reap the benefits of the project?

Considering each development projectagainst these criteria can help you work withthe community to develop a communitydevelopment plan. In Table 11, communitymembers have identified a significantdevelopment opportunity (improved accessto water), defined an objective (increasedwater availability) and assessed four options(boreholes, roof catchment, shallow wellsand surface dams) for achieving theobjective. In this instance, the action planwould focus on roof catchment options forthe community, as that was assessed as thenumber one option.


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Table11:P

articipatoryassessm

entofwater

options

Key

0–

Nil

1–

Low2

–Average

3–

High

Boreholes

13

10

21

12

114

Roofcatchm

ent3

23

22

23

219

1

Shalloww

ells2

22

12

22

215

2

Surfacedam

s1

21

22

12

112

3

Criteria/option

SustainabilityP

roductivityEquitability

FeasibilitySocial/cultural

Com

munity

contributionC

ostTim

eP

ointsR

ank


Step

1 Community framework ofinterest

2 Introduce regionalstakeholders’ frameworksof interest

The top priority development opportunities identified bythe community during step 4 represent the communityframework of interest.

The facilitator now introduces senior miningcompany/government/NGO leaders to present theirrespective frameworks of interest.

The facilitator compares the community and otherframeworks of interest. Overlapping interests areidentified and, ideally, several will be chosen to bedeveloped as Community Action Plans (tool 16).

Action Description

3 Identify overlappingframeworks of interest

Table 12: Steps in identifying overlapping regional frameworks of interest

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STEP 5Identifying overlapping regional frameworksof interest – follow-up session For the development of an overallcommunity development plan, in which you,the community and other developmentpartners (government, NGOs, developmentagencies, etc) agree upon an integratedprogram of development activities for afuture period of time, perhaps one year orseveral, all parties need to decide upon their relative frameworks of interest (seeTable 12 and Figure 8). For communities,this will be the priority developmentareas/needs identified as part of theprevious exercise.

As a company, you will usually decideinternally which programs in the communitydevelopment sphere are priority issues forsocial investment. The results of the Social Impact and Opportunities Assessment(tool 12) should help the company to makethese decisions and where this processpredates the social impact and opportunitiesassessment, you can draw upon thestrategic planning framework developed intool 6. Governments will normally alreadyhave local or regional development plansthat list their priority developmentprograms. Many NGOs and CBOs focus onspecific areas and will therefore prioritizeprograms in their field of interest. For allparties, then, an overlapping framework ofinterest can be identified in a joint meeting.Other development priorities identified bythe community, which do not happen tooverlap with the frameworks of interest ofany of the other parties, can still be priorityissues for the community to solve, but theymay need to seek alternative sources ofsupport or act independently.


Figure 8: Example of overlapping frameworks of interest

Government interests:

• revenue

• education

• health

• roads

NGO/CBO interests:

• SME building

• microfinance

• capacity-building training

Company interests:

• social licence to operate

• enhanced reputation – developer of choice

• continuity of production

• employer of choice

Community interests:

• income

• training

• infrastructure

• sustainable development

Overlapping framework of interests:

• employment at mine

• small business training and operation

• transport operator training and operation

• machinery maintenance and supply

• primary produce supplies

• uniform and clothing tailoring supply

Development Opportunity Rankingcontinued 9

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Key references

AusAID, The Logical Framework Approach, 2002. Available at:

www.who.int/ncd/vision2020_actionplan/documents/LFAguidelines.pdf

DFID, Tools for Development: A Handbook for Those Engaged in Development Activity, 2003,Chapter 3: Problem and situational analysis. Available at:


IFC, Strategic Community Investment: A Quick Guide, Highlights from IFC’s Good PracticeHandbook, Washington DC, February 2010. See p. 22 in particular. Available at:


Kumar, S., Methods for Community Participation: A Complete Guide for Practitioners,ITDG, London, 2002.

National Environment Secretariat, Government of Kenya; Clark University; Egerton University;and the Center for International Development and Environment of the World ResourcesInstitute, Participatory Rural Appraisal Handbook: Conducting PRAs in Kenya, Kenya, 1991.

Rietbergen-McCracken, J and Narayan, D. (compilers), Participation and Social Assessment:Tools and Techniques, International Bank for Reconstruction and Development/World Bank,Washington, DC, 1998.

World Bank, The World Bank Participation Sourcebook, Washington DC, 1996,Appendix 1: Methods and tools for social analysis, pp. 199–202.




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Financial Valuation ToolSustainability Program Quality Framework 10DescriptionSustainability investments can createbenefits to the local communities as well ascreate significant business value forcompanies. However, the amount of moneyinvested in these programs does notnecessarily correlate with the results acompany is aiming to achieve. Sometimessustainability investments are not plannedand designed based on input from affectedcommunities and other relevantstakeholders. Instead of creating socialcapital and improving corporate communityrelations, these community investmentprograms may contribute to decreasing trustand intensifying tensions with affectedcommunities. For that reason, the qualityand effectiveness of community investmentsare important factors in the company’sstrategy to achieve and monitor itssustainability goals and to make a positiveimpact on local development. It is clear thatthe quality of a sustainability investmentdetermines whether risks and opportunitiesare maximized or minimized. Accurateassessment of the quality and effectivenessof programs is critical for pinpointing therange of value generated by environmental,social and governance (ESG) investmentsand enables companies to effectively planwhat programs they should invest in.

In order to reduce the subjectivity of ratingthe effectiveness of sustainabilityinvestments, the Sustainability ProgramQuality Framework (Quality Framework) was developed by the IFC and Deloitte, withsupport from ICMM, to assess the quality of a company’s portfolio of sustainabilityinvestments.

PurposeTo enable corporate social responsibility(CSR) and community relations’professionals plan, design, monitor andevaluate the quality and effectiveness of a company’s social, economic andenvironmental investments.

When to use this toolThough this tool can be used at themonitoring and evaluation stage of a projectfor managers to periodically assess theeffectiveness of each investment in asustainability portfolio, it is also useful at the planning stage, enabling companies todirect investment effectively.

To successfully implement the self-assessment questionnaire and receive ascore that realistically reflects the qualityand effectiveness of sustainability initiatives,it is of crucial importance that users haveevidence supporting their answers.

For each question, the range of possibleanswers is:

You need to answer Section 1 of thequestionnaire by carefully reading thestatement and choosing the answer thatbest describes your company’s approachbased on the possible answers listed above.Keep in mind the management practices ofthe entire sustainability program at theselected operational site.

STEP 2 Answer Section 2 separately for eachindividual sustainability initiative (e.g.workforce development, local suppliersdevelopment, community development).

To increase objectivity of the assessment,different grades of CSR staff should apply sections of the self-assessmentquestionnaire. For example, CSR manager-level staff may answer Section 1(Sustainability program management), while staff responsible for management ofeach sustainability initiative may answerSection 2 (Individual sustainability initiative).


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Financial Valuation Tool Sustainability Program Quality Frameworkcontinued10

How to use this toolSTEP 1Complete the self-assessment questionnaire(Table 13). This questionnaire consists of two sections to assess the quality andeffectiveness of sustainability investments,i.e. “how to” design, plan, implement andmonitor a program, but not on “what” should be the program.

Section 1: Sustainability program managementThis section assesses the general management practices of the sustainability/community program at the specific operational site. The section consists of 10 questions that cover topics applicable to the entire sustainability portfolio of initiatives.

Section 2: Individual sustainability initiativeIn this section, 11 additional questions are considered in relation to each specific sustainability initiative/investment.This series of questions assesses eachinitiative/investment individually.

1 – Do not agree

2 – Somewhat agree

3 – Agree

4 – Strongly agree

0 – Not applicable/do not know

Possible answers


Tabl

e13

:Sel

f-as

sess

men

tque

stio

nnai

re

Sect

ion

1:Su

stai

nabi

lity

prog

ram

man

agem

ent

Do

nota

gree

Som

ewha

tag

ree

Agr

eeSt

rong

lyag

ree

Ass

essm

enta

ndpl

anni

ng

1.Th

eco

mpa

nyha

sun

dert

aken

asc

opin

gas

sess

men

tan

did

entif

ied

key

soci

alan

den

viro

nmen

tali

ssue

s,ri

sks

and

oppo

rtun

ities

rela

ted

toth

epr

ojec

t.

2.Th

eco

mpa

nyha

sid

entif

ied

key

stak

ehol

der

grou

psan

dun

dert

aken

initi

alco

nsul

tatio

nsto

iden

tify

the

key

issu

es.

3.So

cial

and

envi

ronm

enta

lim

pact

asse

ssm

ent,

soci

alba

selin

est

udie

san

dst

akeh

olde

rco

nsul

tatio

nre

sult

sar

eus

edto

dete

rmin

eth

epo

rtfo

lioof

sust

aina

bilit

yin

itiat

ives

.

4.Et

hica

lpra

ctic

esm

echa

nism

s,an

ti-co

rrup

tion

mea

sure

san

dhu

man

righ

tsco

nsid

erat

ions

are

fact

ored

into

the

port

folio

ofsu

stai

nabi

lity

initi

ativ

es.

Stak

ehol

der

enga

gem

enta

ndco

mm

unic

atio

n

5.Vu

lner

able

grou

ps,a

sid

entif

ied

byst

akeh

olde

ran

alys

is(e

.g.w

omen

,you

th,e

lder

ly,d

isab

led,

Indi

geno

usP

eopl

es,p

oor,

mar

gina

lized

grou

psan

dm

inor

ities

),ar

ein

clud

edin

the

stak

ehol

der

enga

gem

entp

roce

ss,a

ndth

eir

inpu

tis

inco

rpor

ated

into

the

desi

gnof

the

sust

aina

bilit

yin

itiat

ive

port

folio

.

6.Th

eco

mpa

nyha

sa

grie

vanc

em

echa

nism

inpl

ace,

whi

chis

bein

gus

edan

dpe

rcei

ved

byco

mm

uniti

esas

trus

twor

thy

and

cult

ural

lyse

nsiti

veto

thei

rw

ays

ofre

solv

ing

prob

lem

s.

7.Th

eco

mpa

nyre

gula

rly

info

rms,

cons

ults

,neg

otia

tes

and

part

ners

with

loca

lsta

keho

lder

sth

roug

hout

the

life

ofth

epr

ojec

t.

Not

appl

icab

le/

dono

tkno

w

Ü


Tabl

e13

:Sel

f-as

sess

men

tque

stio

nnai

reco

ntin

ued

Sect

ion

1:Su

stai

nabi

lity

prog

ram

man

agem

ent

Do

nota

gree

Som

ewha

tag

ree

Agr

eeSt

rong

lyag

ree

No

appl

icab

le/

dono

tkno

w

Impl

emen

tati

on,m

onit

orin

gan

dev

alua

tion

8.Th

epo

rtfo

lioof

sust

aina

bilit

yin

itiat

ives

incl

udes

form

alqu

ality

assu

ranc

em

echa

nism

s,re

lyin

gon

inte

rnal

audi

t(s)

,and

/or

thir

dpa

rty

audi

t(s)

,tha

tare

loca

land

inde

pend

ent.

9.C

ompa

nym

anag

emen

t’spe

rfor

man

ceev

alua

tions

and

ince

ntiv

esar

eal

igne

dw

ithth

ego

als

and

obje

ctiv

esof

the

port

folio

ofsu

stai

nabi

lity

initi

ativ

es.

10.T

here

isa

clea

rst

rate

gyfo

rth

eco

ntin

uatio

nof

sust

aina

bilit

yin

itiat

ives

afte

rpr

ojec

tcl

osur

e(a

ccou

ntab

ility

,cap

acity

and

orga

niza

tiona

land

fund

ing

stru

ctur

esin

plac

e),w

hich

isun

ders

tood

byal

lsta

keho

lder

s.

Ü


Tabl

e13

:Sel

f-as

sess

men

tque

stio

nnai

reco

ntin

ued

Sect

ion

2:In

divi

dual

sust

aina

bilit

yin

itia

tive

Do

nota

gree

Som

ewha

tag

ree

Agr

eeSt

rong

lyag

ree

Not

appl

icab

le/

dono

tkno

w

Ass

essm

enta

ndpl

anni

ng

11.T

hesu

stai

nabi

lity

initi

ativ

eis

alig

ned

with

dist

rict

/loc

alan

d/or

regi

onal

deve

lopm

ent

plan

san

dis

deve

lope

din

part

ners

hip

with

rele

vant

loca

lsta

keho

lder

s,in

clud

ing

gove

rnm

ent,

toen

sure

owne

rshi

pan

dto

build

loca

lcap

acity

.

12.D

irec

tri

sks,

indi

rect

risk

san

dsi

deef

fect

sar

eco

nsid

ered

whi

lepl

anni

ngth

ein

itiat

ive.

13.A

llne

cess

ary

perm

itsfo

rth

ein

itiat

ive

have

been

obta

ined

from

the

gove

rnm

entp

rior

toim

plem

enta

tion.

Stak

ehol

der

enga

gem

enta

ndco

mm

unic

atio

n

14.T

heco

mpa

nyro

utin

ely

clea

rly

com

mun

icat

esth

ein

tend

edgo

als

and

repo

rts

back

resu

lts

ofth

ein

itiat

ive

tore

leva

ntst

akeh

olde

rs(e

.g.l

ocal

com

mun

ities

,gov

ernm

ent,

the

med

ia,e

mpl

oyee

s).

15.P

erfo

rman

cein

dica

tors

for

the

mon

itori

ngan

dev

alua

tion

ofth

ein

itiat

ive

are

deve

lope

din

co-o

pera

tion

with

rele

vant

stak

ehol

ders

.

Impl

emen

tati

on,m

onit

orin

gan

dev

alua

tion

16.R

oles

,res

pons

ibili

ties

and

acco

unta

bilit

ies

for

the

initi

ativ

ear

ecl

earl

yas

sign

edw

ithin

the

com

pany

.

17.F

orm

alag

reem

ents

with

loca

lpar

tner

sha

vebe

enes

tabl

ishe

din

orde

rto

ensu

reac

coun

tabi

lity.

18.A

dequ

ate

finan

cial

and

hum

anre

sour

ces

are

allo

cate

dto

the

initi

ativ

e,w

ithso

me

cont

inge

ncy.

Ü


Tabl

e13

:Sel

f-as

sess

men

tque

stio

nnai

reco

ntin

ued

Sect

ion

2:In

divi

dual

sust

aina

bilit

yin

itia

tive

Do

nota

gree

Som

ewha

tag

ree

Agr

eeSt

rong

lyag

ree

Not

appl

icab

le/

dono

tkno

w

19.A

nef

fect

ive

mon

itori

ngan

dev

alua

tion

syst

emis

inpl

ace

inor

der

tom

easu

reou

tcom

esan

dim

pact

sof

the

initi

ativ

e.

20.B

enef

itsar

isin

gfr

omth

ein

itiat

ive

are

dist

ribu

ted

todi

rect

lyim

pact

edst

akeh

olde

rsth

roug

hfa

iran

dtr

ansp

aren

tm

echa

nism

s.

21.T

here

isan

esta

blis

hed

mec

hani

smin

plac

eth

aten

able

slo

cal

stak

ehol

ders

’rep

rese

ntat

ives

tore

gula

rly

part

icip

ate

inpr

ovid

ing

thei

rin

puta

ndfe

edba

ckon

this

sust

aina

bilit

yin

itiat

ive,

and

tosu

gges

thow

itco

uld

beim

prov

ed.


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Financial Valuation Tool Sustainability Program Quality Frameworkcontinued 10STEP 3Calculate your weighted average score asfollows:

The Excel-based self-assessment questionnaire is available at: http://fvtool.com

It automatically calculates the score for theuser.

1. Score each statement in the questionnaire from 0 to 4. Do not include statementsmarked with 0 (not-applicable/do not know)in the calculation.

2. Add up the scores for each statement and divide by the number of statements, generating an average score for each section (Section 1 and 2).

3. Each specific sustainability initiative will receive separate scores ranging from 1 to 4. The overall score for each sustainability initiative on the self-assessment questionnaire is a sum of the weighted average of the scores from Section 1 and Section 2. The score on Section 1 accounts for 30% of the overall weighting, while the score on Section 2 accounts for the other 70% of weighting (e.g. score on Section 1 of 3.30 would make weighted score of 0.99 (3.30 x 0.30). Score of 3.27 on Section 2 would make weighted score of 2.29 (3.27 x 0.70). Total score is 3.28 (sum of weighted scores on Section 1 and Section 2).

STEP 4The final result of the self-assessmentquestionnaire is a numerical score rangingfrom 1 (ineffective) to 4 (excellent). Enter thescore into the Quality of SustainabilityInvestments tab in the FV Tool(http://fvtool.com) or use the score as a stand-alone rating of sustainabilityinvestment.

STEP 5Refer to the management processes’good/best practices in Table 14 for guidanceon stakeholder engagement, grievancemechanisms and monitoring and evaluation.Compare the score generated for thespecific sustainability initiative (Section 2above) with the full Benchmark Matrix forfurther reference(http://fvtool.com/files/Benchmark%20Matrix.pdf).The full Benchmark Matrix offersdescriptions of different sustainabilityinitiatives along four performancecategories, from ineffective practice to bestpractice, for the most common sustainabilityprograms (“the what”) as listed here formanagement processes (“the how”).


Tabl

e14

:Sus

tain

abili

tyP

rogr

amQ

ualit

yB

ench

mar

kM

atri

x

Stak

ehol

der

enga

gem

ent

Inef

fect

ive

prac

tice

Neu

tral

prac

tice

Goo

dpr

acti

ce

•P

oorl

yco

nduc

ted

anal

ysis

that

does

notc

aptu

rere

leva

ntin

tere

stgr

oups

.

•N

ost

akeh

olde

ren

gage

men

tstr

ateg

y,pl

anan

dac

tiviti

es.

•St

akeh

olde

rsig

nore

dan

dre

ques

tsde

nied

.

•St

akeh

olde

ren

gage

men

tcon

sist

sof

aon

e-tim

ese

tof

publ

icm

eetin

gsw

ithlo

call

eade

rsw

hodo

notr

epre

sent

the

true

inte

rest

sof

loca

lco

mm

uniti

es.

•Ve

ryea

rly

enga

gem

ent

duri

ngpr

e-fe

asib

ility

orpr

e-ex

plor

atio

nph

ase

–en

gage

men

tas

info

rmat

ion

disc

losu

rean

dco

nsul

tatio

nw

ithst

akeh

olde

rs.

•En

gage

men

twith

stak

ehol

ders

inth

eir

own

com

mun

ities

ina

cult

ural

lyap

prop

riat

em

anne

r.

•St

akeh

olde

ren

gage

men

tst

rate

gyba

sed

onst

akeh

olde

rid

entif

icat

ion

and

anal

ysis

.

•A

stak

ehol

der

enga

gem

ent

plan

that

addr

esse

sm

ultip

lest

akeh

olde

rgr

oups

and

issu

es(N

GO

s,m

edia

,com

mun

ities

and

loca

lgo

vern

men

t,as

wel

las

wom

en,I

ndig

enou

sP

eopl

es,t

hepo

or,y

outh

and

elde

rly)

.

•Th

ere

istr

usta

ndre

spec

tbet

wee

na

com

pany

and

loca

lcom

mun

ities

.

•St

akeh

olde

ren

gage

men

tis

inte

grat

edin

toSE

MS

(Soc

iala

ndEn

viro

nmen

tal

Man

agem

entS

yste

m).

Bes

tpr

acti

ce

•St

akeh

olde

ren

gage

men

tth

roug

hout

the

who

lepr

ojec

tcy

cle.

•St

akeh

olde

ren

gage

men

tis

inte

grat

edin

toco

rebu

sine

ssac

tiviti

es(H

R,p

rocu

rem

ent,

secu

rity

).

•Se

nior

man

agem

ent

isin

volv

edin

stak

ehol

der

activ

ities

.

•Th

ere

isa

syst

emin

plac

eth

atm

easu

res

effe

ctiv

enes

sof

build

ing

cons

truc

tive

corp

orat

e–co

mm

unity

rela

tions

and

rela

tions

hips

with

othe

rre

leva

ntst

akeh

olde

rs.

•Lo

calc

omm

uniti

esar

ese

enas

part

ners

.

•St

akeh

olde

rsca

nca

llth

em

eetin

gsan

dth

ere

isa

proc

edur

efo

rth

is,j

oint

lyes

tabl

ishe

dbe

twee

na

com

pany

and

rele

vant

stak

ehol

ders

.

•St

akeh

olde

ren

gage

men

tst

rate

gyan

dpl

anis

desi

gned

toco

mpl

yw

ithlo

calr

egul

atio

n.

This

topi

cad

dres

ses

issu

esof

abr

oade

r,m

ore

incl

usiv

ean

dco

ntin

uous

proc

ess

betw

een

aco

mpa

nyan

dth

ose

pote

ntia

llyim

pact

edth

aten

com

pass

esa

rang

eof

activ

ities

and

appr

oach

es,a

ndsp

ans

the

entir

elif

eof

apr

ojec

t.It

isre

cogn

ized

that

ther

ear

ebu

sine

ssan

dre

puta

tiona

lri

sks

that

com

efr

ompo

orst

akeh

olde

rre

latio

ns.A

good

stak

ehol

der

enga

gem

enta

ppro

ach

incl

udes

stak

ehol

der

iden

tific

atio

nan

dan

alys

is,

info

rmat

ion

disc

losu

re,s

take

hold

erco

nsul

tatio

n,ne

gotia

tions

and

part

ners

hips

,gri

evan

cem

anag

emen

t,st

akeh

olde

rin

volv

emen

tin

proj

ect

mon

itori

ng,r

epor

ting

tost

akeh

olde

rsan

dm

anag

emen

tfu

nctio

ns.

Ü


Tabl

e14

:Sus

tain

abili

tyP

rogr

amQ

ualit

yB

ench

mar

kM

atri

xco

ntin

ued

Stak

ehol

der

enga

gem

ent

Inef

fect

ive

prac

tice

Neu

tral

prac

tice

Goo

dpr

acti

ce

•A

proc

ess

that

ison

lyre

spon

sive

(pas

sive

),i.e

.aco

mpa

nyen

gage

son

lyw

hen

ther

eis

apr

oble

m,s

uch

asa

com

mun

itypr

otes

t,ne

gativ

epr

ess

orN

GO

pres

sure

s.

•A

nad

hoc

appr

oach

.

•En

gage

men

twith

com

mun

ities

isco

nduc

ted

onth

eco

mpa

ny’s

prem

ises

.

•Th

ere

are

regu

lar,

ongo

ing

mee

tings

with

stak

ehol

ders

(com

mun

ities

,loc

alN

GO

s,lo

cal

gove

rnm

ents

).

•En

gage

men

twith

alo

ng-t

erm

view

.

•C

ompa

ny-h

ired

qual

ified

com

mun

itylia

ison

staf

f.

Bes

tpr

acti

ce

•N

egot

iatio

nsw

ithco

mm

uniti

esar

eco

nduc

ted

ingo

odfa

ith.

•C

omm

uniti

esgi

vefe

edba

ckab

outp

rogr

ams

that

are

bein

gim

plem

ente

dan

dth

eir

feed

back

isin

corp

orat

edin

topr

ojec

tdes

ign.

•Vu

lner

able

grou

psar

ein

clud

edin

enga

gem

enta

ctiv

ities

ina

dist

inct

man

ner.

•In

case

sw

here

loca

lcom

mun

ities

lack

expe

rien

cein

orga

nizi

ngth

emse

lves

and/

orin

publ

icco

nsul

tatio

npr

oces

ses,

the

com

pany

faci

litat

esca

paci

ty-b

uild

ing

activ

ities

.

•Th

eco

mpa

nyen

sure

sth

atlo

calb

enef

itsar

eun

ders

tood

bylo

cals

take

hold

ers.

•Ex

pect

atio

nsar

eef

fect

ivel

ym

anag

edan

dth

eco

mpa

nyis

very

clea

rab

outw

holo

ses

and

who

win

s.

•Th

ere

are

prog

ram

sta

rget

ing

“hav

e-no

ts”,

peop

lew

hodo

notb

enef

itfr

omth

epr

ojec

t,th

athe

lpcr

eate

oppo

rtun

ities

for

them

.

Ü

Tabl

e14

:Sus

tain

abili

tyP

rogr

amQ

ualit

yB

ench

mar

kM

atri

xco

ntin

ued

Gri

evan

cem

echa

nism

Inef

fect

ive

prac

tice

Neu

tral

prac

tice

Goo

dpr

acti

ce

•Th

ere

isno

grie

vanc

em

echa

nism

inpl

ace

orth

egr

ieva

nce

mec

hani

smis

not

acce

ssib

leto

com

mun

ities

and

they

dono

tuse

itto

addr

ess

diff

icul

ties

ina

non-

conf

ront

atio

nal

man

ner.

•Th

egr

ieva

nce

proc

ess

addr

esse

son

lygr

ieva

nces

,but

negl

ects

unde

rlyi

ngfe

ars

and

need

sof

peop

le.

•Th

egr

ieva

nce

mec

hani

smis

func

tioni

ng,

clea

ran

dtr

ansp

aren

t,cu

ltur

ally

appr

opri

ate

and

acce

ssib

leto

com

mun

ities

atno

cost

and

with

outr

etri

butio

nto

the

part

yth

ator

igin

ated

the

issu

eor

conc

ern.

•C

omm

uniti

esar

ein

form

edab

outt

heex

iste

nce

ofth

egr

ieva

nce

mec

hani

smdu

ring

the

cons

ulta

tion

proc

ess.

•Th

egr

ieva

nce

mec

hani

smis

used

byco

mm

uniti

es.

•Th

egr

ieva

nce

mec

hani

smgo

esbe

yond

issu

esof

grie

vanc

e,an

dpe

ople

’sfe

ars

and

emot

ions

are

addr

esse

d.

•G

riev

ance

sar

ead

dres

sed

ina

cult

ural

lyap

prop

riat

em

anne

r.

•C

omm

unity

perc

eptio

nsar

eta

ken

into

acco

unt

whe

nad

dres

sing

grie

vanc

es.

•Th

egr

ieva

nce

proc

ess

ispr

edic

tabl

ean

din

clud

esa

fixed

timel

ine

for

the

entir

epr

oces

s.

Bes

tpr

acti

ce

•Th

ere

isa

thir

dpa

rty

audi

tof

the

effe

ctiv

enes

sof

the

grie

vanc

em

echa

nism

.

•Fo

rla

rge

proj

ects

,con

trac

tors

follo

wth

eco

mpa

ny’s

grie

vanc

em

echa

nism

.

•C

omm

uniti

esar

ein

clud

edin

the

part

icip

ator

ym

onito

ring

ofth

egr

ieva

nce

mec

hani

sm.

•Th

eco

mpa

nyre

port

sba

ckto

com

mun

ities

onho

wgr

ieva

nces

have

been

addr

esse

d.

This

topi

cad

dres

ses

the

issu

esof

havi

ngan

acce

ssib

lean

dre

spon

sive

mea

nsfo

rst

akeh

olde

rsto

rais

eco

ncer

nsan

dgr

ieva

nces

abou

tthe

proj

ect

thro

ugho

utits

life.

The

aim

isto

have

agr

ieva

nce

mec

hani

smsc

aled

toth

epo

tent

ialr

isks

and

adve

rse

impa

cts

ofth

epr

ojec

t.Th

em

echa

nism

shou

ldad

dres

sco

ncer

nspr

ompt

ly,u

sean

unde

rsta

ndab

lean

dtr

ansp

aren

tpro

cess

that

iscu

ltur

ally

appr

opri

ate

and

read

ilyac

cess

ible

toal

lse

gmen

tsof

the

affe

cted

com

mun

ities

,and

doso

atno

cost

toco

mm

uniti

esan

dw

ithou

tre

trib

utio

n.Th

em

echa

nism

shou

ldno

tim

pede

acce

ssto

judi

cial

and

adm

inis

trat

ive

rem

edie

s.


Ü


Tabl

e14

:Sus

tain

abili

tyP

rogr

amQ

ualit

yB

ench

mar

kM

atri

xco

ntin

ued

Gri

evan

cem

echa

nism

Inef

fect

ive

prac

tice

Neu

tral

prac

tice

Goo

dpr

acti

ce

•Th

ere

isa

grie

vanc

essp

ecia

lista

vaila

ble

tore

ceiv

egr

ieva

nces

and

co-o

rdin

ate

effo

rts

tore

dres

sth

ose

grie

vanc

esth

roug

hth

eap

prop

riat

ech

anne

ls,t

akin

gin

toco

nsid

erat

ion

any

cust

omar

yan

dtr

aditi

onal

met

hods

ofdi

sput

ere

solu

tion

with

inth

eaf

fect

edco

mm

unity

.

Bes

tpr

acti

ce

Mon

itori

ngan

dev

alua

tion

Inef

fect

ive

prac

tice

Neu

tral

prac

tice

Goo

dpr

acti

ce

•Th

ere

isa

nasc

ent

M&

Esy

stem

inpl

ace.

•N

oba

selin

eda

tais

colle

cted

.

•Ta

rget

sar

eno

tspe

cific

and

mea

sura

ble.

•Th

ere

isno

budg

etfo

rM

&E

nor

any

desi

gnat

edpe

rson

inch

arge

ofth

epr

oces

s.

•Th

ere

isa

clea

rM

&E

syst

eman

dpl

anfo

rea

chpr

ogra

m.

•Th

eM

&E

fram

ewor

kca

ptur

esm

ainl

you

tcom

es,b

utne

glec

tsim

pact

.

•Th

ere

isa

budg

etfo

rM

&E

activ

ities

.

•Th

ere

isa

desi

gnat

edpe

rson

resp

onsi

ble

for

the

M&

Epr

oces

s.

Bes

tpr

acti

ce

•Th

eM

&E

syst

emin

clud

esou

tcom

esan

dim

pact

indi

cato

rs.

•Th

ein

dica

tors

have

been

deve

lope

din

co-o

pera

tion

with

rele

vant

stak

ehol

ders

;th

ere

isa

shar

edvi

sion

ofsu

cces

s.

•A

ffec

ted

popu

latio

nsar

ein

clud

edin

impa

ctm

onito

ring

.

•St

akeh

olde

rs’f

eedb

ack

and

perc

eptio

nsfe

edin

topr

ojec

tdes

ign.

•Th

ere

isan

nual

repo

rtin

gag

ains

tkey

perf

orm

ance

indi

cato

rs.

•Th

eM

&E

repo

rtis

exte

rnal

lyas

sure

d.

•Th

ere

isa

basi

cM

&E

syst

emin

plac

e,fo

cusi

ngon

activ

ityin

dica

tors

.

This

topi

cad

dres

ses

issu

esof

havi

ngan

esta

blis

hed

mon

itori

ngan

dev

alua

tion

(M&

E)sy

stem

that

syst

emat

ical

lytr

acks

outc

omes

and

impa

cts

ofpr

ojec

ts.T

heai

mis

toha

vest

akeh

olde

rin

volv

emen

tin

proj

ect

mon

itori

ngan

din

defin

ing

the

visi

onof

succ

ess.


PLA

NN

ING

TOO

LS

Financial Valuation (FV) Tool for sustainability investmentsThe case of Newmont Ghana

There is a growing body of work for quantifying the impact of sustainability programs andtaking a more strategic view of community investment decisions. Intuitively, mining companiesunderstand the business case for being a good corporate citizen and generating positiverelationships with communities, civil society and governments that enable key businessdrivers, including access to land, government approvals, access to resources and access tocapital. Quantifying the value of these investments and planning accordingly, however, haslong posed a challenge for companies and community development practitioners.

Through a multilateral partnership, including the IFC, Rio Tinto, Deloitte, Newmont, the Multilateral Investment Guarantee Agency (MIGA) and the Government of Norway, the FV Toolwas developed which quantifies the return on site-specific sustainability investments. Thisvalue is generally understood to take the form of either direct value creation (i.e. reducedcosts, generated benefits) or indirect value protection (i.e. risk mitigation, programeffectiveness). Such information helps to justify and stabilize the annual budget thatcompanies devote to sustainability efforts. It creates incentives, within companies, to invest in their communities. The FV Tool is a web-based software available at www.fvtool.com.

Ahafo gold mine pilotThe Newmont Mining Corporation Ahafo mine has been pilot testing the FV Tool over the last several years and is currently testing the potential of formally integrating the FV Tool in its budgeting and capital project process planning for operational investments related tosustainability, impact mitigation and community benefits. The company firmly believes itsperformance in the areas of environment and social responsibility (ESR) is key to its futuresuccess. While this sentiment is broadly shared throughout the company, there are divergentviews among the company’s internal stakeholders as to how much the company should bespending on sustainability investments and what the benefits are to the business in moreconcrete terms.

Newmont anticipates that the tool will better enable the environment and social teams to communicate, in more rigorous terms, the value of the sustainability investments. While theFV Tool provides an estimated net present value (NPV) range of a specific sustainabilityportfolio, the true value of using the FV Tool is the process, cross-functional engagement andability to provide explicit rationale for each program in terms of direct value creation and riskmitigation.

Conversation with non-sustainability functionsManagement of programs and budgets with direct sustainability outcomes and impactsreside with different non-traditional sustainability functions in a company. For example, theNewmont Ahafo Linkages and Apprenticeship programs are managed by Supply Chain andLearning and Development functions and are designed to generate local business opportunitiesand enhanced skill training for local community members. An intense data collection processwas required to generate inputs into the FV Tool. The FV Tool provided a common platform for risk, social responsibility, human resources, health and safety, supply chain, operationsand land teams to engage in discussions to understand the strategy, data, analysis anddecision-making process related to sustainability investments and associated expenditures.

Value protection and risk managementESR and risk teams worked closely to identify risks from the Newmont Ahafo mine’s riskregister that are being managed by sustainability investments, including managingcommunity expectations for jobs and benefits, in-migration, water quality and access, public relations, stakeholder engagement and compliance-related issues. The FV Toolprocess strengthened the understanding and convergence between risk, finance and

CASE STUDY

Ü


social responsibility teams and led to a growing appreciation among Newmont staff of therelationship between social responsibility investments and risk management and the abilityof the ESR staff to communicate from a risk and finance perspective.

Value-creation perspectiveA cost-benefit analysis for each sustainability investment was conducted by finance and ESRstaff to identify “value drivers” or productivity gains/savings to Ahafo. Where evidence tosupport value drivers was not available, conservative assumptions were developed and keyperformance indicators identified for future monitoring and evaluation. Finance was critical to this process by supporting the ESR team to express the value of their programs in terms of cost (operating expenditure and capital expenditure), benefits (e.g. cost savings andproductivity leading to financial gains) and operational risk mitigation. For example, a cost-benefit analysis of Newmont Ahafo’s malaria control program revealed several key valuedrivers. In 2006, the average monthly workforce malaria incidence rate was about 8%, costingthe Ahafo mine nearly 76,680 hours of lost productivity due to employee and contractorabsenteeism, translating into an operating cost of nearly US$400,000. Without the malariacontrol program, the projection of the direct costs to the company over a five-year period(2006–2010) due to absenteeism alone would have been about US$2 million. The cost formedication and medical consultation (average US$30 per case) for that five-year periodwould have stood at about US$500,000 and indirect costs (e.g. workforce morale, candidate refusals to accept posting to Ahafo, cost of family members contracting malaria, etc. atUS$30 per case) contributing to another loss of US$500,000. Thus, the total cost of malaria to the company without a malaria control program over the five-year period would have beenaround US$3 million, minimum.33 In comparison, Newmont Ghana invested US$1.5 million inthe malaria control program over the same five-year period. This achievement made by the company in the fight against malaria has received global recognition by the GlobalBusiness Coalition in 2010. The project team recognizes some limitations to fully integratethe financial outputs of the FV Tool due to accounting principles but observes an improvedunderstanding of shared value by non-sustainability business functions.

Business process integrationThe real test of the FV Tool will be determined by Ahafo’s ability to formally integrate the FV Tool process into the business process and planning cycle. In the past, ESR staff haverelied on Newmont’s social responsibility standards, intuition around benefits and moralarguments to defend budget requests rather than value, NPV and risk language. Over thepast year, there has been a considerable improvement in the ESR staff’s ability to evaluatetheir sustainability investments using principles of value creation and protection. Ongoingtraining efforts are being conducted to expose ESR and finance staff to the types of inputsrequired and analysis of outputs generated by the FV Tool and use of the budgeting templates.

Lessons learnedA key learning from using the FV Tool is not how much sustainability investment cost butrather how dispersed pieces of information limited the company from having more informed discussions based around the value of sustainability investments in a language the business understood. That is, the outcome is an ongoing process for evaluatingsustainability investments rather than a point-in-time prioritization or go/no-gorecommendation. The enhancement of communications within the company and withstakeholders has helped create common understanding of how defining value should be at the core of all the company’s resource allocation going forward.

Financial Valuation (FV) Tool for sustainability investmentsThe case of Newmont Ghana


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33 Private Sector Integrated Malaria Control in Ghana: Methods, Impact and Business Case for Protecting Employees – Godwin Fuseini, Peter Ebsworth, Dave Knight, Paul Caiger, Chuck Burns, Michael J. Bangs.


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Financial Valuation Tool Sustainability Program Quality Frameworkcontinued10

Key references

IFC, Financial Valuation Tool for Sustainability Investments. Available at:

http://fvtool.com

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These tools help people tounderstand the potentialrisks and impacts of the mineon surrounding communitiesand other stakeholders

ASSESSMENT

TOOLS

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CONSIDERING ENVIRONMENTAL AND SOCIAL ELEMENTS ENABLES COMPANIES TOMITIGATE NEGATIVE IMPACTS,UNDERSTAND POTENTIALOPPORTUNITIES AND DEVELOP ROBUST MANAGEMENT SYSTEMS.

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Assessment tools

TOOL 11 Social Baseline StudyDrawing up a profile of the community surrounding the project area, and its regional and national setting.

TOOL 12 Social Impact and Opportunities AssessmentAssessing the impacts, both positive and negative, that the project may have on host communities and how to manage them.

TOOL 13 Competencies Assessment Determining the attributes your team, whether company, community, NGO or government, has and whether other skills, knowledge and understanding may be required, that is additional human resources.

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Guidance for using assessment tools

For ease of reference, the tools arepresented separately in this section thoughyou should use them in an integrated way. In practice, the Social Baseline Study and the Social Impact and OpportunitiesAssessment should be used at the sametime. IFC Performance Standard 134

advocates this integrated approach anddescribes the necessity of identifying risksand impacts based on recent social andenvironmental baseline data. An integratedmethod that considers social, economic,environmental and health aspects ispreferable as it can lead to a more holisticand comprehensive overall impactassessment with fewer inconsistencies andpotential conflicts in findings between theindividual assessments. Consideringenvironmental and social elements enablescompanies to mitigate negative impacts,understand potential opportunities anddevelop robust management systems.

That said, you may find stand-aloneassessments are appropriate in certaincircumstances, for example when a quickoverview of potential health impacts isrequired so that emerging community healthissues can inform the early project designand planning process (references for healthimpact assessments are included in the keyreferences at the end of tool 12). Similarly, if you are facing widespread concerns over a range of human rights issues, analysingthese separately may bring greater clarityand enhance the credibility of the analysis.

There is a growing number of methodologiesfor conducting stand-alone human rightsimpact assessments (HRIAs), some of whichare provided in the reference section at theend of tool 12. A number of references arealso provided for conducting gender-specificimpact assessments, though, as recognizedby the IFC, a good starting point is toconduct a gender-responsive social analysisas part of the overall social andenvironmental impact assessment.

As mining company staff, you may be usedto community programs that consistedlargely of donations or of the construction of buildings deemed necessary by minemanagement and a small section of thecommunity. To better target yourdevelopment projects, you need tounderstand the communities around you and the ways your project will impact them.These assessment tools will help you gainthat understanding, and when coupled withthe PRA techniques and those in theplanning section, you can work with a broad range of community members tohelp them make their own plans, ensuringthat any development activities will bewanted by the recipients, and that they willwant to “own” them.

Community members, NGOs/CBOs andgovernment officers may also find thesetools useful, both to use themselves, and to understand the activities a company is undertaking.

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Assessment toolscontinued

34 Available at: http://www1.ifc.org/wps/wcm/connect/topics_ext_content/ifc_external_corporate_site/ifc+sustainability+framework/2012+edition/performancestandard1

http://www1.ifc.org/wps/wcm/connect/topics_ext_content/ifc_external_corporate_site/ifc+sustainability+framework/2012+edition/performancestandard1


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Social Baseline Study 11DescriptionThe gathering and compilation of baselinedata that describe the state of the social and economic environment and thecharacteristics of the populations living in the area around mining and metalsactivity is usually known as a social baselinestudy. Companies should collect datadisaggregated by gender or ethnic groupwhere there is a particular vulnerability orrisk of disadvantage. A social baseline study investigates the following topics:

Demographic factorsNumbers of people, their location, populationdensity, age, ethnicity, presence ofIndigenous Peoples, etc. Population growthtrends, including migration practices, areimportant to establish in order to determinethe potential for significant influx.

Socio-economic determinantsFactors affecting incomes and productivityfor both women and men (such as skill setsof the community and the extent to whichrequisite skills exist or training will berequired), land tenure, access to productiveinputs and markets, family composition,kinship reciprocity, and access to wageopportunities and labour migration. This will also include levels of educationattained, literacy and skills held within the community.

Social organizationOrganization and capacity at the householdand community levels affecting participationin local-level institutions as well as localdecision-making processes and access toservices and information for both womenand men.

Economic organizationLocal and regional businesses andcommercial structures, infrastructuresupporting economic activity, governmentand other economic/industrial developmentplans for the area.

Socio-political context Stakeholder organizations’ developmentgoals, priorities, commitment to developmentobjectives, control over resources,experience and relationship with otherstakeholder groups, including women, youth,minorities, elderly and disabled people.

Historical contextHistorical issues and events, for examplemigration, relocation, etc.

Needs and valuesStakeholder attitudes and valuesdetermining whether developmentinterventions are needed and wanted,appropriate incentives for change andcapacity of stakeholders to manage theprocess of change.

Human rights contextPrevailing human rights issues, status ofwomen, minorities, vulnerable groups andpolitical risks, etc.

Health context Health situation within the community priorto the development of a mining project,including access to health services, healthlevels within host population (acrossdifferent demographics), etc.

InstitutionsRole, governance, resources and capacitiesof local institutions as well as regulatoryframework.


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Social infrastructureEducational institutions, health services,power and water supply, sewerage andsanitation, transport infrastructure includingroads, rail, air and sea transport and theaccessibility of services.

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Social Baseline Study continued11

PurposeTo help you understand the localcommunities’ situation, their hopes andfears surrounding the project, and thepotential impacts, both positive and negative,of the project to allow you to developinformed mitigation and management plans.To gather data, disaggregated as far aspossible for gender, ethnicity and age, that you can use for measuring futurechange against.

Without a good understanding of the localsocial and economic context, you may underestimate project risks and impacts tocommunities, fail to identify opportunities for contributing to social and economicdevelopment, introduce developmentactivities that are culturally or sociallyinappropriate or fail to understand localcauses of poverty and inequality.

A good baseline study also provides thegrounding data needed for assessments ofchange after a project has been initiated. By measuring conditions at the outset of a project, it is possible to take latermeasurements, compare them with thebaseline data and determine whetherchange has taken place. For example, itwould be possible to ascertain whether there are more local businesses since thestart of a project and whether more girls are completing school. It is a good idea tokeep in mind the kind of changes you wouldhope to measure when doing a baselinestudy to ensure you collect data in a mannerthat can be repeated and that will give youthe analysis you seek.

Social surveyor (right) collecting baselinedata from community member, Tanzania (Photo. C. Macdonald)

When to use this toolA baseline study, by definition, needs to beundertaken at the beginning of a project. It is usually conducted at the early stages of an ESIA or may be conducted as astandalone exercise prior to investment incommunity projects taking place. If anexisting project is acquired, and no baselinestudy was conducted by the previousmanagers, then it is a good idea to do abaseline study from the time you start with a project, something termed a delayedbaseline.

The gathering of primary data to completethe baseline survey should commence assoon as possible. The baseline study is not, however, the end of the process ofknowing your local community. Developmentfacilitators need to update their understandingof local social conditions – to identifyemerging concerns and changing need –throughout the life of the project.

Another important time to update baselinesocial and economic data is at mineexpansion or closure – this will help you toplan appropriately for expansion or closureand to provide a baseline against which tomeasure post-closure changes or an adjustedbaseline to measure post-expansionchanges against.

Ensure that a regional level of assessmentand data collection is included in the termsof reference for baseline studies of yourproject.


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Social Baseline Study continued 11

How to use this toolA baseline survey is a large undertaking,frequently requiring a large team of fieldsurveyors, and is therefore beyond thecapacity of most companies to conduct within-house resources, and it is often wise tohave an independent party collecting thedata regardless. Usually, consultants areengaged to gather and analyse the baselinedata, including information already availablefrom a variety of sources, such asuniversities and government departments.Ideally, experienced consultants with afamiliarity with international socialassessment standards will team with localconsultants and researchers to conduct thesocial baseline study process. Even better, if time and resources permit, participatoryresearch methods, where communitymembers conduct their own analysis, maybe used. Though participatory methods are more time-consuming than the data-gathering efforts of professionalresearchers, they can mitigate against future social impacts. Other participatorymethods (e.g. focus groups) can beeffectively integrated into social baselinedata gathering.

STEP 1Desktop social profile – engage researchersto locate available data in co-operation withlocal officials and community leaders todraw up a social profile (this couldincorporate any social data collected as partof a due diligence assessment).

STEP 2Decide what further information needs to be acquired through primary research. Large projects may conduct a social baselineas part of their exploration activities andthen again as the project expands intofeasibility. The level of primary data that iscollected will likely expand as the projectdevelops.


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STEP 3Engage experienced social scientists andlocal tertiary institutes or researchorganizations to design a survey to captureboth quantitative (questionnaire of manypeople) and qualitative (focus groups and key informant interviews) information.Where Indigenous Peoples are present in the project’s area of influence, experiencedanthropologists may be required to conductthis assessment.

STEP 4Draw a comprehensive community profile,ensuring coverage of vulnerable groups andminorities. Test with community participantsand adjust as needed. Be sure to incorporatestakeholder feedback.

STEP 5Use the completed social and economicbaseline study as the basis for conducting a Social Impact and OpportunitiesAssessment (tool 12) and for monitoring and evaluation activities (tools 19–20).

STEP 6Share the baseline study with localstakeholders, etc in an accessible format(audiovisual resources may be useful inareas with low levels of literacy).

Village women in Tanzania engaged in aparticipatory planning exercise with help ofexternal facilitator. Here, they are draftingtheir seasonal calendar on the groundbefore transferring the final version tocardboard. By conducting participatoryplanning exercises such as this separatelyfor men and women, you ensure thatwomen have a non-threatening opportunityto provide their input into discussions.Further, you can draw out the differentpriorities of each group, which then leads toa lively debate about which things are mostimportant to the community as a whole.(Photo. C. Macdonald)

This particular baseline study wasundertaken of the entire South GobiProvince (Umnugobi aimag) inMongolia. This is a far largerundertaking than would be attemptedby many mining projects, but indicatesthe wide range of information that can be included. It was paid for by Oyu Tolgoi mining project, now run by Rio Tinto, as a contribution to thepeople and regulators of the entireprovince, and was undertaken by ateam of Mongolian researchers, guided by an external advisory panel,made up of Mongolian national,provincial and local stakeholders, with international organizationobservers.

Example of a social baseline study table of contents South Gobi Social, Economic and Environmental Baseline Study, 2008

CASE STUDY


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TABLE OF CONTENTS

THE OYU TOLGOI (OT) SOCIO-ECONOMIC BASELINE STUDY TEAM

ACKNOWLEDGEMENTS

EXECUTIVE SUMMARY

1. INTRODUCTION

2. EXPLANATORY NOTE

3. ECONOMY AND FINANCE

(includes information on: the Financial sector, Local economy and market, Local budgetrevenues and expenditures, Agriculturalcommodity prices, Attitudes toward migrant-settlers and “outsiders”, Standard of living,Poverty and prosperity, Income/expenditure,Access to income support/social welfare in times of hardship, Employment, under-employment and unemployment,Existing employment sources, Subsistencestrategy, Child labour and Youth issues)

4. AGRICULTURE AS SOURCES OF LIVELIHOODS

(includes information on: General issues, Livestock sector and Crop production – scaleand trend)

5. INDUSTRY

(includes information on: Industry as economic sector, Mining sector and Opportunities fornew enterprises, access to finance, capital)

6. LOCAL BUSINESS

(includes information on: Small businesses, Informal business, Tourism and associatedbusinesses)

7. SUPPLY AND SERVICE CAPACITY FROM LOCALS TO LARGE PROJECTS

8. ENVIRONMENTAL DATA

(includes information on: Climate, Air quality, Soils, Vegetation, Wild fauna, Landscape, Land resources, Specially protected areas,Water resources, Afforestation, Solid wastemanagement, State of water and soilpollution, Opinions of local residents on use of natural resources, Environmental capacityto support humans and livestock)


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Key references

Centre for Social Responsibility in Mining, Leading Practice Strategies for Addressing theSocial Impacts of Resource Developments, University of Queensland, 2009.

www.csrm.uq.edu.au/docs/Franks_etal_LeadingPracticeSocialImpacts_2009.pdf

IFC, Good Practice Note: Addressing the Social Dimensions of Private Sector Projects,Washington DC, 2003. Available at:


World Bank, Social Analysis Sourcebook: Incorporating Social Dimensions into Bank-Supported Projects, Washington DC, 2003, Chapter 4: Social assessment, and Chapter 5: The way forward, section on Good practice in social analysis. Available at:

http://web.worldbank.org/WBSITE/EXTERNAL/TOPICS/EXTSOCIALDEV/0,,contentMDK:21177387~pagePK:64168445~piPK:64168309~theSitePK:3177395,00.html

Example of gender sensitive baseline:

www.riotinto.com/rio-apps/riotinto_operationmap/pdf/Case_study_3_%20Rio_Tinto_in_Mongolia.pdf


http://www.riotinto.com/rio-apps/riotinto_operationmap/pdf/Case_study_3_%20Rio_Tinto_in_Mongolia.pdf


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Social Impact and Opportunities Assessment 12DescriptionThe process of social impact assessment(SIA) can limit itself to identifying negativeimpacts and mitigating them, rather thanalso considering positive aspects of thepresence of a project. An SIA should identifypositive as well as negative impacts and lookfor methods of enhancing the opportunitiesthat can flow from the positive impacts aswell as offsetting the negative ones. For thisreason, the tool described here is a SocialImpact and Opportunities Assessment (SIOA). The opportunities can form the basis for asustainable community development program,if harnessed in a co-operative participatoryplanning program, with full engagementfrom the local community, government andother stakeholders. In addition, thepurposeful identification and enhancement ofopportunities that can add value to aproject’s presence within a community fromthe start will make the challenges ofengagement, local participation and a morecollaborative and sustainable communitydevelopment effort throughout the life cycleof the project easier. This approach, ofenhancing positive project impacts forcommunity development purposes, goingbeyond the obligatory mitigation of negativeimpacts, is explained comprehensively in theIFC’s Strategic Community Investmenthandbook.35

Mining projects have historically concernedthemselves primarily with developmentswithin their lease boundaries or connectedto the infrastructure associated with theirmines. Impact assessments have generallyfocused on the mine’s direct impact area,usually within a defined geographic space. If cumulative impacts, impacts across a

regional or provincial level and the likelihoodof rapid population growth are identified inthe impact assessment stage, then a regionalplanning approach will be warranted.36

Ideally, especially for large-scale projects,adopting a regional approach should beginwhen baseline studies commence. Impactassessments are undertaken beforecommencing construction.

PurposeTo assess the potential social and economicimpacts, and identify opportunities,generated by your project. Having identifiedlikely impacts, propose measures to mitigateor offset potential negative impacts andmaximize positive impacts. Going beyond thebasic SIA model, a community-development-focused SIA approach should include anopportunity assessment to enhance positivedevelopment impacts of the project as wellas identifying impacts that need to bemitigated. Like baseline studies, SIOAsbenefit from having input from communitymembers and other stakeholders, as theyoften identify potential impacts andopportunities that may not be evident toresearchers and company staff. Specificinclusion of the likely impacts of the projecton women and vulnerable and/ormarginalized groups is essential. It is important to identify the barriers andconstraints to participation along genderlines, as opportunities for local economicdevelopment can be very different from the perspectives of men and women. Separate consultations with women’s andmen’s groups should take place to ensurethat gender-specific impacts andopportunities can be clearly identified.

35 IFC, Strategic Community Investment: A Good Practice Handbook for Companies Doing Business in Emerging Markets, and Strategic Community Investment: A Quick Guide, Highlights from IFC’s Good Practice Handbook,Washington DC, 2010. Both available at: www.ifc.org/ifcext/sustainability.nsf/content/publications_handbook_communityinvestment

36 See IFC’s Performance Standard 1, Washington DC, 2012 for more detail on these topics. Available at: www.ifc.org


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Social Impact and Opportunities Assessment continued12

When to use this toolIdeally, an SIOA should be conducted assoon as possible after the social baselinestudy (see tool 11). Indeed, they usually formpart of the same large exercise, although, in some cases, a baseline study may beconducted as a separate undertaking. It ispossible, but unwise, to conduct an impactassessment without a baseline study.Without the broad-based knowledge of thecommunity’s social and economic status andstructure that is provided in a baseline study,an SIOA may draw incorrect conclusions. Inaddition, without baseline data, managingand monitoring mitigation measures isdifficult, as there will be no initial data withwhich to compare change over time.

Assessments should be made of the impactslikely at each stage of the project, fromfeasibility through to relinquishment, includingtransitory phases like construction, when alarge, temporary workforce may be present.It is particularly important that the socialimpacts of a project at closure and beyondare taken into account when assessing thefeasibility of a proposed project. As a siteapproaches closure, a specific SIOA on theimpacts of closure should be conducted and closure mitigation and opportunitiesprograms should be developed accordingly.The cost of exit strategies should be factoredinto the financial modelling when examiningthe feasibility of a project.

Some leading companies are alreadyincluding a less complex assessment of thelikely costs of programs to mitigate potentialsocial problems in their due diligenceprocess (i.e. not a full SIOA, but a scopingstudy). Conceivably, if the costs of mitigatingsocial impacts and implementing adequatesocial programs will outweigh the potentialprofits of a mine, as assessed at a high levelat this early stage, then it may be prudent to walk away from the project. It may also be the case that it is not clear how certain pre-existing social impacts (such as ahistory of human rights abuses by a previousowner) can be mitigated or managed, whichagain may make it wise not to make theproject acquisition.

Module 5 of ICMM’s Mining Partnerships for Development Toolkit37 may also be helpfulwhen applying this tool. Module 5 can assistin the measurement of the positive andnegative contributions of mining to localcommunities.



Impacts should ideally be assessed twice,once without the ameliorative effect ofmitigation measures, and then again afterproposed management measures areincluded in the equation, in order todetermine whether a project is able not onlyto manage its negative impacts through goodcommunity development programs, but evento have a positive contribution to sustainabledevelopment. This comparative assessmentwill highlight the importance of goodcommunity development and encouragecompanies to invest in social programs. For example, as a large gold mine you mayhave a significant negative impact on localemployment for small-scale miners who willno longer be able to mine the deposits theyused to. However, if you put employmentprograms in place to provide alternativelivelihoods for these miners, then the impact may be neutral or even positive.Going further, if the mine is able to put inplace, in co-operation with government andemployment and training agencies, aneffective training and education programthat allows local people to acquire skills that enable them to obtain lifelongemployment from a variety of sources, then the overall impact of the project onemployment and income may be positive. Your project, in partnership with governmentagencies, will then have createdopportunities for the broader community, not just the negatively impacted miners.

How to use this toolThe assessment would normally beundertaken by experienced social scientistswith a good understanding of mining andmetals projects and their potential effects,as well as sound knowledge of community dynamics and the local population. If goodbaseline data have been collected, then the assessment will be based on a solidfoundation. The participation of local, regional and national stakeholders, throughinterviews, focus groups and surveys, willalso provide you with information about localvalues and experiences – invaluable for acomprehensive assessment. These surveysand interviews are not just for the purposesof data collection, in order to populate thebaseline study, but should capture people’shopes, fears and expectations, in order togive life to the assessment of impacts andidentification of opportunities.

Criteria applied for the determination of animpact should include the likelihood of animpact occurring, how widespread theimpact will be (how many people will itaffect) and, after management measureshave been developed, whether it can bemitigated reasonably or not. Managementmeasures are then proposed for the impactsidentified, either to enhance the positiveimpacts (opportunities) or to mitigate thenegative impacts. Closure planning shouldalso form part of the planning for impactmanagement measures from the earlieststage. That is, the impact managementprograms should be designed to besustainable, to survive the cessation ofmining operations, not simply be a positivemeasure during the life of the mine, leavingpeople no better off when the mine closes.

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38 IFC, Projects and People: A Handbook for Addressing Project-Induced In-Migration, Washington DC, December 2009.

STEP 1Review social baseline study and determineareas of concern to the communities,potential impacts as well as areas where theproject might present opportunities (refer totool 9 Development Opportunity Ranking).Community and other stakeholder input,through focus groups or advisory panels, canassist here and in the following three steps.

STEP 2Assess potential impacts and opportunities –identify areas needing impact managementprograms. Determine whether there aresignificant cumulative impacts in theproject’s broader region, as well as directand indirect impacts. Cumulative impactswill occur when the effects of severalseparate developments combine to create an intensified impact, for example road dustfrom roads leading to several separatemining and infrastructure projects within a region might jointly create a seriousenvironmental and social health impact.

STEP 3Propose measures to manage and, ifnecessary, mitigate the identified impactsand enhance opportunities. If it is likely thatthere will be problems associated withpopulation influx, then use the IFC Handbookfor Addressing Project-Induced In-Migrationto develop appropriate managementmeasures.38 This handbook is comprehensiveand strategic in its approach to issues relatedto unintended population influx. The volumecovers the business case for addressinginflux issues and what the associated costsmight be, understanding the dynamics andmotivations of project-induced in-migration,risk assessment and managementapproaches. There are also sections onassociated issues such as artisanal andsmall-scale mining, Indigenous Peoples,resettlement and biodiversity.

STEP 4Reassess the impacts and opportunities,taking the proposed management measuresinto account.

STEP 5Work with community and other partners on participatory development plans thataddress community priority programs(enhancing opportunities) as well asrequired mitigation programs (mitigatingimpacts). Tools 6–18 can be used to developimpact management plans in co-operationwith community members and other partneragencies.

STEP 6Review management measures andprograms regularly, and adjust as required(see tools 19–20 for monitoring andevaluation methods).

STEP 7If significant regional and cumulativeimpacts are likely to occur as a result of theproject, then a regional managementapproach, in partnership with governmentand other civil society and donororganizations, should be initiated as early as practicable. The case study on page 141provides an example of what might beincluded in such an approach. Tool 1 willhelp in identifying the appropriatestakeholders and partners to work with.


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Social Impact and Opportunities Assessment continued 12

Subsections of the assessment couldinclude:

i. description of the potential impact,which discusses the following:

a. cause – identifies the project activity responsible for the impact

b. nature – notes whether the impact is positive or negative, as well as direct, indirect or cumulative

c. geographic extent – describes thegeographic area impacted

d. duration – notes whether the impact is related to a specific phase of projectactivity and how long the impact will persist

e. magnitude – notes the number of people affected

f. significance – notes whether the impact will have a major impact on those affected

ii. identification of management measures to avoid or reduce to acceptable levels any potentially unacceptable negativeimpacts and to maximize potential benefits

iii. assessment of residual impact (i.e. the impact that will remain following consideration of the proposed management measures) and characterization of overall significance.

Example impact assessment framework(for step 2)An example impact assessment frameworkis presented in Table 15 as a guide to theelements of a SIOA. The potential impactsidentified therein are both positive andnegative in nature. Positive potential impacts may result in positive social change(e.g. increased employment, economicgrowth), and the opportunity exists for yourproject to maximize these benefits througheffective management (i.e. identification andimplementation of benefits enhancementmeasures).

In contrast, negative potential impacts mayresult in negative social change (e.g.displacement of settlements, pressure oninfrastructure), and the opportunity exists for your project to minimize these negativeimpacts, and in some cases to transformthem into positive impacts, through effectivemanagement (i.e. identification andimplementation of mitigation measures).

In addition, potential impacts can be bothdirect and indirect in nature. Direct impactsrefer to changes in baseline socialconditions that are caused by a specificproject-related activity (e.g. loss ofarchaeological sites). Indirect impacts referto changes in baseline social conditions that are indirectly caused by a specificproject-related activity (e.g. economicgrowth not directly associated with themine’s expenditures).

Importantly, some direct and indirectimpacts have the potential to accumulatewith those impacts of other existing orproposed projects and activities in the areasof influence: these are called cumulativeimpacts.

In the example in Table 15, the steps were:

1. Description of the potential impactThe following matrices provide guidelines fordetermining the extent, magnitude andduration of a project impact. which, in turn,enables the calculation of the significance ofan impact. Each of these elements of theimpact assessment aids in determining thepriority of management actions that need tobe taken.


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Criteria

Extent or spatial influence of impact

Magnitude of impact (at the indicatedspatial scale)

Duration of impact

1. Impact assessment criteria

Description

Beyond 20km of the project sites

Within 20km of the project sites

On-site or within 100m of the site boundary

Social functions are severely altered – large number of directly impacted people/households

Social functions are notably altered – medium number of directly impacted people/households

Social functions are slightly altered – small number of directly impacted people/households

Longer than the project life (more than six months after operations cease)

For the duration of the project

For the duration of the construction (or less than six months)

Table 15: Example matrices for determining significance of identified impacts

(The distances and durations will vary depending on the context.)

Category

Regional

Local

Site specific

High

Medium

Low

Long term

Medium term

Short term

The specific parameters for each projectneed to be determined by the assessmentteam, for example whether local impacts are to be described within a certain distanceof the project, or within a local governmentboundary, and whether national-levelimpacts should also be included for verylarge projects. The matrices provideexamples, rather than definitive parameters.


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Social Impact and Opportunities Assessment continued 122. Populate the matricesThe potential impacts of the project areevaluated on the basis of a series of criteriain relation to magnitude, extent and durationas presented in Table 16. On the basis of theevaluation criteria, a level of significance(low, medium, high) is assigned to theidentified potential impact. The variouscombinations of evaluation criteria(magnitude, extent and duration) determinethe level of significance of the impact (low,medium or high) as presented in the table.

It should be noted that this assessmentpresents an example evaluation of the levelsof significance of the impacts before andafter the implementation of mitigationmeasures. The level of significance of eachimpact has to be re-evaluated after theprojected implementation of the measures,as illustrated in Table 16.

There are other aspects of impact analysisthat can be included in the SIOA process, for example the likelihood of an impactoccurring or the risk associated with notmitigating impacts. These additionalelements can help in deciding upon thepriorities for various impact mitigationprograms. The elements of the impactassessment process described here,however, are the most important and willenable the production of a feasible SIA.


Land

alie

natio

n

Wat

erqu

ality

and

sani

tatio

n

Fish

erie

s

Alie

natio

nof

agri

cult

ural

and

fore

stla

ndfo

rpr

ojec

tfa

cilit

ies

Dec

reas

ein

amen

ityof

dow

nstr

eam

surf

ace

and

grou

ndw

ater

reso

urce

sfo

rpo

tabl

ew

ater

and

bath

ing

Dec

reas

ein

amen

ityof

dow

nstr

eam

wat

erre

sour

ces

for

fishe

ries

and

aqua

ticfa

una

Min

imiz

epr

ojec

tfo

otpr

int

Avoi

dag

ricu

ltur

alla

nd

Dev

elop

agri

cult

ural

and

fore

stry

prog

ram

sw

ithco

mm

unity

bene

ficia

ries

Impl

emen

twat

ertr

eatm

ents

yste

mpr

ior

todi

scha

rge

Impl

emen

twat

ertr

eatm

ents

yste

mpr

ior

todi

scha

rge

Loca

l

Loca

l

Loca

l

Hig

h

Hig

h

Med

ium

Med

ium

term

Long

term

Long

term

Med

ium

Hig

h

Med

ium

Loca

l

Loca

l

Loca

l

Med

ium

Med

ium

Med

ium

Med

ium

term

Long

term

Long

term

Med

ium

Med

ium

Med

ium

Dir

ect,

nega

tive

Dir

ect,

nega

tive

Dir

ect,

nega

tive

Tabl

e16

:Exa

mpl

eof

pote

ntia

lim

pact

s/is

sues

befo

rean

daf

ter

mit

igat

ion

mea

sure

sPotential impact/issue

Cause

Nature

Extent

Magnitude

Duration

Significance

Mitigationactivites

Residualextent

Residualmagnitude

Residualduration

Residualsignificance

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Contributing to community health and economic development throughimproved agricultural techniquesXstrata, Peru

SummaryUntil recently, the limited success of agriculture and cattle production has been one of the main challenges faced by the rural communities around Xstrata’s copper mine in LasBambas, Peru. Thanks to a community development program instituted by the company,local communities living near the mine are now benefiting from agricultural improvementprojects that they have helped to identify, prioritize and implement.

Context and challengeXstrata’s Las Bambas copper project was the company’s first operation in Peru. It islocated at an altitude of 4km above sea level, between Grau and Cotabambas – among thecountry’s poorest provinces. Local government capacity in the area is weak, for examplemany residents cannot receive even basic public services due to a widespread lack ofidentity documents and poor land registration.

Agricultural production was being compromised by lack of irrigation channels, poor genetic breeding and parasites. Sheep were kept under a “free grazing” system thatcontributed to overgrazing in several areas. The company recognized that there was a riskto its licence to operate if it could not demonstrate the benefits of its presence to thepredominantly agricultural local community.

ResponseThe company’s community engagement team consulted widely in order to respond to localneeds. Communities agreed priorities for action in open meetings and the companyarranged for training as part of the projects. This included modules on capacity building and institutional strengthening. Projects identified through this process included:

• construction of irrigation systems in Pamputa, Huancuire, Pallca Picosayhuas, Chicñahui and Choquecca and a cattle breeding program

• guinea pig breeding and the establishment of hydroponic pasture farms in Fuerabamba

• trout farming in Pamputa.

Outcomes Irrigation systems were constructed and healthy cattle introduced to improve the localgenetic pool. A disease prevention system was established to protect the new cattle. Local people considered this project important for improving nutrition and health, as wellas providing a potential source of income from the production of dairy goods.

The local community also identified the breeding of small animals as an effective means of improving family nutrition, and increasing commercial capacity and income generation. A pilot guinea pig breeding project was undertaken by 10 families in Fuerabamba to testwhether improved guinea pigs could adapt to the altitude and whether families could easily adopt the new techniques required to breed this type of guinea pig.

CASE STUDY


Ü

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A nutrition baseline for the families was established during the year, guinea pig houseswere built, a hydroponic greenhouse was constructed for growing barley (an importantsource of vitamins for guinea pigs), and monthly training and capacity-building programswere undertaken with women and children.

A second phase of the guinea pig project was then implemented – a partnership betweenLas Bambas and local NGO Caritas – and work started in the communities of Pumamarcaand Chuicuni to extend the project to 100 families.

Xstrata Copper also signed an agreement with SENCICO to provide training for 200 localpeople in construction and masonry as a precursor to a trout-farming project in Pamputa.These people and a number of others were engaged mid-year to construct a six-pondrainbow trout farm under the leadership of an engineer and two construction specialists.The engineer prepared the drawings and managed the project while local people built theinfrastructure.

Source: Xstrata – community engagement at Las Bambas, Peru. Available at:www.xstrata.com/sustainability/casestudies/community-engagement-at-las-bambas-peru/

Contributing to community health and economic development throughimproved agricultural techniquesXstrata, Peru



http://www.xstrata.com/sustainability/casestudies/community-engagement-at-las-bambas-peru/


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Social Impact and Opportunities Assessment continued 12Key references

There are many references on SIA, and it is frequently a rather detailed process. This toolintends to give an outline of the broad processes involved. For greater detail, the followingsources will be useful:

Aim for Human Rights, Guide to Corporate Human Rights Impact Assessment Tools, 2009.Available at:

www.humanrightsimpact.org/themes/business-centre/hria-in-business/guide-to-corporate-human-rights-impact-assessment-tools/

Asian Development Bank, Gender Checklist: Agriculture, 2006. Available at:

www.adb.org/Documents/Manuals/Gender_Checklists/Agriculture/default.asp?p=genchck

Danish Institute for Human Rights, Human Rights Compliance Assessment (HRCA) QuickCheck, 2006. Available at:

https://hrca2.humanrightsbusiness.org/docs/file/HRCA%20Quick%20Check_English.pdf

ICMM, Good Practice Guidance on Health Impact Assessment, London, 2010. Available at:

www.icmm.com/hia

IFC, Strategic Community Investment: A Good Practice Handbook for Companies DoingBusiness in Emerging Markets, Washington DC, June 2010. Available at:


IFC, Strategic Community Investment: A Quick Guide, Highlights from IFC’s Good PracticeHandbook, Washington DC,February 2010. Available at:


IFC, Guide to Human Rights Impact Assessment and Management, Washington DC, 2010.Available at:

www.ifc.org/ifcext/sustainability.nsf/Content/Publications_Handbook_HRIA

IFC, Introduction to Health Impact Assessment, Washington DC, 2009. Available at:

www.ifc.org

IFC, Projects and People: A Handbook for Addressing Project-Induced In-Migration,Washington DC, December 2009. Available at:



IFC, Good Practice Note: Addressing the Social Dimensions of Private Sector Projects,Washington DC, 2003. Available at:


International Association for Impact Assessment (IAIA), IAIA website, 2012. Available at:

www.iaia.org/default.aspx

March, C., Smyth, I. and Mukhopadhyay, M., A Guide to Gender-Analysis Frameworks,Oxfam GB, Oxford, 1991.

Minerals Council of Australia, Socioeconomic Benefits and Impacts: An Assessment andPlanning Toolkit. Canberra, 2010. Available at:

www.minerals.org.au/file_upload/files/resources/SEIBA-Toolkit-draft23August.pdf

Oxfam Australia, Guide to gender impact assessment, Melbourne, 2009.

SIAhub, Social Impact Assessment website, 2012. Available at:

www.socialimpactassessment.com/resources-references.asp

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Competencies Assessment 13DescriptionIt is important to note from the outset thatgood community development is dependentupon having people with suitable skills andunderstanding to run programs, and ongiving community development staff thetraining support they need to perform theirjobs well. If responsibility for managingcommunity development is given to peoplewhose primary duties and expertise are inother areas, environmental science orhuman resource management for example,it is unlikely that community developmentprograms will run at optimal levels.

The competencies assessment is a processfor measuring and recording the skills of anindividual or group. It is a highly flexible tool,which can be performed through a facilitatedworkshop process or an individual basis.

PurposeTo identify additional resources, eitherpermanent or temporary, that you may needover time. This tool can be used for selectingconsultants for short-term or intermittentinputs to your programs as well as forchoosing permanent staff. This tool helpsyou to identify and develop the knowledge,skills and attitudes you need to ensure youhave the right team and resources to achieve your community development goals,whatever the size of your organization. It can also help you to assess the skillsavailable in an existing team or that the localcommunity possesses so that you canrecognize training and development needsfor staff and community members as well as gaps to be filled by additionalpersonnel.

Knowledge, skills and attitudesYou need a range of knowledge and skills in your team to achieve your developmentobjectives (see Table 17). In general, youwould be looking for people with humanitiesor social science training or communityorganization experience to join your team.Direct knowledge of the local community andcultural context would be beneficial, butmore important is experience in workingwell with communities and the ability tograsp quickly the local issues. Yourassessment of people’s skills needs toinclude more than formal training, assomeone with appropriate experience may be more suitable than someone with the right degree but little experience.

When to use this toolThe competencies assessment is neededwhen forming your community developmentteam, as early as possible, ideally at thesame time that project construction plansare being made. If resettlement of localcommunities is required for the constructionof the mine and its infrastructure, thencommunity development expertise will berequired to plan and manage the relocationprocess. Then, as the scale of operationalactivities increases, it may be necessary toexpand the team to cover additional areas of community development activity, forexample you may need to hire a smallbusiness development expert. You may also need to include additional expertisewhen planning for closure, and certainlywhen implementing closure plans when a combination of experience and localknowledge is essential.

In other words, use this tool as early aspossible. Then, re-evaluate the team asneeds evolve.


Des

crip

tion

Key

poin

ts

Tabl

e17

:Kno

wle

dge,

skill

san

dat

titu

des

for

com

mun

ity

deve

lopm

ent

Kno

wle

dge

Skill

sA

ttit

udes

Com

mun

ityde

velo

pmen

tdem

ands

abr

oad

base

ofkn

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any

area

s–

for

exam

ple,

loca

lsoc

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tions

and

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mic

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utio

nal

deve

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omic

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prog

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dm

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emen

t,et

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incl

udes

both

basi

cin

form

atio

n,ho

wto

acqu

ire

itan

dth

ew

ays

inw

hich

you

appl

yth

isin

form

atio

n.

Und

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andi

ngof

:

•co

mm

unity

need

s,pr

iori

ties

and

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es

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and

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omic

deve

lopm

enta

ndna

tura

lres

ourc

em

anag

emen

t

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and

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ance

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oup

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ics

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anci

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t

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am-b

uild

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and

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man

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Skill

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omes

.

Skill

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eed

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wel

ldev

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the

begi

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se.

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:

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anni

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sear

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g,st

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anci

alm

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n

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gan

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ion

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t

Attit

ude

–th

esp

irit

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omw

hich

you

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oach

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mun

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velo

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t–

shap

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cisi

ons

and

actio

ns.I

tis

criti

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dual

,may

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ithin

grou

psor

may

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mm

onth

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orga

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Res

pect

for:

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ton

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oces

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tion


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Competencies Assessmentcontinued 13How to use this toolThe tool can be used by an individual orcollectively by a team. It enables you to listrequired skills, estimate the level ofexpertise needed for each skills area andassess your current level of skills againstyour requirements. You can then take stepsto fill any gaps you have identified in thecompetencies assessment process.

STEP 1As an individual, if you are a singlecommunity development worker, or in ateam if there are several of you, think about the predicted impacts of youroperation and the baseline conditions of the local communities (from tools 11 and 12). Consider what areas of communitydevelopment programs you expect tobecome involved in, for example mechanicaltraining, women’s microenterprises,agricultural extension, community health, etc.

STEP 2Having listed likely program areas, considerthe role that could best be played by yourteam, for example would your team actuallyrun training programs for mechanics, orwould you work with a local vocationaltraining school to help them upgrade theirservices? Decide whether you need technicalskills, training skills or organizationaldevelopment skills, then list the full range of skills your team will need.

STEP 3Write the list of required skills in the centralcolumn in Table 18.

STEP 4Estimate the level of expertise desired inthose required skills and record it in the left-hand column.

STEP 5Assess the levels of skills and knowledgepossessed by you and/or your colleagues in the right-hand column.

STEP 6Compare the results of the left- and right-hand columns and make note ofdiscrepancies, for example you may haveestimated that you need a small businessexpert, with level 3 knowledge and skills, but your team has only level 1 knowledge inthis area, or none at all. This means that you may need to either hire an extra teammember or a consultant or have one of your existing team trained in extra skills. You might also decide that it would be bestto team up with a local organization thatoffers the requisite skills, such as a vocationaltraining school, rather than hiring theexpertise yourself.

STEP 7Collate the gaps identified in the audit andthen make an assessment of what actionsyou need to take to make your team effectiveand ensure that the necessary support foryour programs is available.

STEP 8Prepare a training needs list and a humanresources request list, to be presented to the relevant administration people in yourorganization. In addition, list the range of consultants you will need to hire fortemporary inputs and the kinds oforganizations you might need to form links with.


Tabl

e18

:Com

pete

ncie

sas

sess

men

twor

kshe

et

Req

uire

dsk

illle

vel

Skill

sEx

isti

ngsk

illle

vel

Leve

lofe

xper

tise,

know

ledg

eor

unde

rsta

ndin

gre

quir

edto

perf

orm

effe

ctiv

ely

inro

le

No

expe

rtis

eH

igh

expe

rtis

e

01

23 3

3

3 3 3

3

Pla

nnin

gan

dpr

ogra

mde

sign

Res

earc

h,as

sess

men

t,an

alys

isan

dev

alua

tion

Team

build

ing,

staf

fand

finan

cial

man

agem

ent

Com

mun

icat

ions

,con

sulta

tion

and

faci

litat

ion

Pro

blem

solv

ing

and

conf

lictr

esol

utio

n

Org

aniz

atio

nald

esig

nan

dde

velo

pmen

t

Skill

sar

ea(e

.g.t

here

may

beot

hers

]Ac

tual

leve

lofe

xper

tise,

know

ledg

eor

unde

rsta

ndin

g

No

expe

rtis

eH

igh

expe

rtis

e

01

23

3

3

3

3

3

3

The

exam

ple

lists

gene

rals

kills

for

com

mun

ityde

velo

pmen

tdep

artm

ent

staf

f.Th

ere

sult

sof

that

team

asse

ssm

entw

ould

beth

atad

ditio

nale

xper

tise

isre

quir

edin

the

prob

lem

solv

ing

and

conf

lictr

esol

utio

nar

ea,

soa

cons

ulta

ntm

aybe

requ

ired

for

that

.

Inad

ditio

n,ei

ther

ane

wte

amm

embe

rw

ithhi

gher

-lev

elsk

ills

inco

mm

unic

atio

ns,

plan

ning

and

orga

niza

tiona

ldes

ign

may

bene

eded

,or

curr

ents

taff

may

need

addi

tiona

ltr

aini

ngin

thos

efie

lds.


Req

uire

dsk

illle

vel

Skill

sEx

isti

ngsk

illle

vel

From

new

team

mem

ber

orco

nsul

tant

No

expe

rtis

eH

igh

expe

rtis

e

01

23 3 3

Smal

lbus

ines

sde

velo

pmen

t

Trai

ning

and

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ansf

er

Skill

sar

eaIn

curr

entt

eam

No

expe

rtis

eH

igh

expe

rtis

e

01

23

3 3

An

exam

ple

for

ape

rson

oror

gani

zatio

nw

itha

spec

ific

tech

nica

lski

ll,su

chas

the

smal

lbu

sine

ssex

pert

ise

men

tione

din

step

6,m

ight

look

like

this

:

Itis

likel

yth

ata

new

team

mem

ber

orlo

ng-

term

cons

ulta

ncy

orpa

rtne

rshi

pm

aybe

need

edto

fillt

his

gap.

Upg

radi

ngcu

rren

tst

affs

kills

from

leve

l1to

leve

l3by

trai

ning

wou

ldpr

obab

lyta

keto

olo

ngto

beef

fect

ive.


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Competencies Assessmentcontinued13

Key references

DFID, Tools for Development: A Handbook for Those Engaged in Development Activity, 2003. Available at:


Zandvliet, L. and Anderson, M. B., Getting it Right: Making Corporate-Community Relations Work,Greenleaf Publishing, Sheffield, 2009, Chapter 13.

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Methods and approaches formitigating potential negativeimpacts and enhancingbenefits to maximizecommunity development

MANAGEMENT

TOOLS

MANAGING COMMUNITY DEVELOPMENT PROGRAMSAFTER THE COMMUNITY AND PARTNERS HAVE DESIGNED THEM IS VERY IMPORTANT. EVEN WELL-DESIGNED PLANS MAY FAIL IF NOT WELL MANAGED.

Imag

eco

urte

syof

Lonm

in

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NA

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TOOL 14 Community Development Agreements A flexible approach to voluntary agreement making between companies and communities, to help ensure that community development programs or initiatives achieve successful outcomes.

TOOL 15 Management SystemsAn integrated management system could be a set of policies and procedures and traditional hard-copy registers for recording and reporting on their use and implementation or it can be a modern, electronic system for performing the same tasks. Using an integrated management system helps a company to assess whether sufficient resources are being allocated to the right functions at the right time.

TOOL 16 Community Action Plans The community action plan (CAP) is a detailed plan for implementing solutions to the problems that have been identified during the participatory planning process. It will become the management plan both for the community and its development partners, and will be adjusted to suit circumstances and changing community priorities as time passes.

TOOL 17 Local Economic Investment For long-term community and economic viability and sustainable community development, it is vital that efforts be made to help diversify local economies. Mining activities can play a crucial catalytic role by both ensuring that companies purchase goods and services locally and also in encouraging a diversification of the local economic base. Companies can also foster the equitabledistribution of mine-stimulated benefits by ensuring that their programs provide opportunities to women and vulnerable and/or marginalized groups.

TOOL 18 Resettlement Planning In most jurisdictions, and by all measures of good practice, it is necessary to ensure that any people physically or economically displaced by mining activities have their assets and livelihoods replaced, and even improved. This will include communal, community and public assets if they are affected. This is a complex and highly specialized field and a mining project should seriouslyconsider engaging specialized and experienced consultants to manage the process for a resettlement process of any size larger than a few households.


Management tools

155

161

165

173

179


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Management tools continued

Guidance for using management tools

Managing community development programsafter the community and partners havedesigned them is very important. Even well-designed plans may fail if not well managed.The beneficiaries of the plan, the communitymembers, must be well represented in themanagement structures for communitydevelopment plans; indeed, they mustmanage the plans, with appropriate supportfrom donors, companies, governmentagencies, etc. These plans can be built intothe content and implementation ofcommunity development agreements. This isequally important with wide-reaching planssuch as those needed for resettlement,regional co-ordination, influx managementand cumulative impact management. Thismay be by means of a multi-stakeholdercommunity development committee, orcommunities may establish their ownmanagement groups and consult withexternal supporters as needed. Ownership of the plans, time-bound commitments andpeople agreeing to take responsibility arekey factors of success.

As mining company staff, you must workwith community members to help themmanage their own plans. Providingopportunities for community managementcapacity building and moral as well asfinancial support for community efforts aremajor roles that companies can play. This iskey in important planning processes such as resettlement, regional co-ordination,influx management and cumulative impactmanagement, where there may be ashortage of local expertise and experience.Training programs in management methodsare essential elements for buildingcommunity and company staff capacitywhere needed.

Government officers, NGOs/CBOs andcommunity members may also find thesetools useful, both to inform theirparticipation in company-led processes andto implement themselves. As the recipientsof community development programs,community members have a key role inensuring that these programs are wellmanaged and that they deliver on theaspirations of the community, wherepracticable. Through using some of thesetools, government officers may be betterplaced to identify and access regional andnational funding to support local priorities.


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Community DevelopmentAgreements 14DescriptionCommunity development agreements,derived through good faith negotiations, have the potential to help support theachievement of socio-economic developmentoutcomes. The potential value of suchvoluntary agreements within the miningsector has been an area of discussionbetween practitioners for some time andagreements between mining companies and Indigenous Peoples have been commonpractice for several years, especially withinAustralia and Canada. This is an area thathas increasingly become the subject ofdiscussion and debate as moves towards a regulatory approach have been explored or advocated by a number of actors (e.g. the World Bank and some developmentNGOs).

While recognizing that there are potentialpitfalls to regulating in this area,39 thepotential benefits of voluntary agreementmaking in situations beyond those whereIndigenous Peoples are present areincreasingly being recognized. For example,such agreements can form a basis forstructured engagement between companiesand communities around matters of mutualconcern, in pursuit of mining projects thatdeliver mutual benefit. The process ofagreement making (and necessary follow-upengagement) can also help to supportmutual understanding and diffuse tensionsbefore they arise, provided that it isapproached in a respectful manner by allparties. In addition, it provides an effectivemeans for administering not just communitydevelopment activities, but also relatedaspects such as mitigation andcompensation.

PurposeTo outline a flexible approach to voluntaryagreement making between companies andcommunities, to help ensure that communitydevelopment programs or initiatives achievesuccessful outcomes, or that social andenvironmental mitigation and compensationefforts are effectively handled.

When to use this toolThis tool should be used at any stage wherecompanies find themselves engaged inconversations around matters that wouldbenefit from a structured agreement-makingprocess (which often occurs relatively earlyin the life of a project). Subsequently, theapproach outlined is applicable throughoutthe mining and metals project life cycle,where agreements are being entered intoand implemented.

How to use this toolUse this tool as a basis for negotiationsbetween companies and communitieslooking to put voluntary yet formalagreements in place to govern theirinteractions around community development programs or initiatives.

39 Common pitfalls of a regulatory approach include (i) its inherent inflexibility, (ii) the inability to address local development issues or link to local processes, (iii) the reality that regulation can lead to compliance/positional mindset as opposed to encouraging interest-based negotiations and (iv) the risks of delegating developmental responsibility to companies rather than government.


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Community Development Agreements continued14

STEP 1Establish the basis for successfulnegotiations Companies should recognize that successfulagreement making is critically dependent on ensuring that the negotiations that arecentral to reaching agreement arecharacterized by a positive set of attributes.In practice, this means establishingnegotiations that are:

• Interest based rather than positional To establish a shared understanding of the individual and shared interests of company and community should involve consideration and acknowledgement of the rights of all parties.

• Grounded in inclusivity of process If genuine progress is to be made in a manner that addresses the interests and aspirations of all parties, agreement-makingprocesses must involve not only communityleaders, but also representation for groups that may otherwise be marginalized.

• Legitimate and trusted Whatever form the negotiations take, they must have legitimacy in the eyes of parties and be trusted. In practice, this may mean working with or adapting local or traditionaldecision-making processes, rather than imposing an unfamiliar process. It also means conducting negotiations in a spirit of openness and information sharing.

• Transparent between the parties At a minimum, the negotiation processand decision-making authority must be transparent to the parties concerned, while respecting legitimate interests of the parties on matters they may wish to remainconfidential. This involves up-front thinking about (and agreement on) what should or should not be disclosed to the parties to a negotiation or other stakeholders, and at what stage.

• Focused on the stability and sustainability of outcomes Focus on achieving stable and sustainable outcomes for long-term benefit, rather than on short-term fixes that lack the sustained support of the parties needed to underpin success.

• Context specificThe rationale for focusing on attributes rather than prescriptive approaches is that negotiations must be adapted to local conditions and realities – there are no boilerplate solutions that will fit all company–community interactions.

• Predictable in terms of processWhile the outcomes of negotiations will invariably be unpredictable, it is important that the process steps towards reaching agreement are clearly understood and agreed between the parties – and that they are adhered to unless changes are mutually agreed. Establish a time frame for the agreement-making process which is acceptable for all parties.

• Fair and equitable (for participants) Recognizing that there may be asymmetries between the parties in terms of their knowledge or ability to effectively engage in negotiations, it is incumbent on the company to offer support (on an as-needed basis) to ensure that communities can effectively engage in the process. Failure to do so makes it more likely that the process will result in agreements that are open to challenge and become a source of discontent.


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Community Development Agreements continued 14STEP 2Understand the contextPrior to entering into formal agreementnegotiations, consider: (i) the rights ofcommunities to control the use anddevelopment of land and subsurfaceminerals and (ii) any legal and proceduralrequirements (including royalty arrangements)that apply to company–communityagreements. Establish who in the communityhas the authority to negotiate on behalf ofthe community and who else should beincluded in the process.

STEP 3Establish the overall aims of the agreementEnsure both parties have a thoroughunderstanding of each other’s objectives,needs and the potential impacts of theproject. Drawing on baseline studies, socialimpact studies and consultations withcommunities, the company should strive tounderstand the aspirations, concerns anddevelopment needs of the community. These will vary depending on the context.Clearly communicate company objectivesand plans to ensure the agreement isrealistic and achievable. Ensure risks andthe opportunities associated with the projectare well understood. Establish long-termobjectives and revisit them throughout thenegotiation process and beyond.

STEP 4Build understanding and respectAllow time for building relationships beforeembarking on formal negotiations. Apply theprinciples of “good faith negotiation”,establishing where points of disagreementand agreement lie and what the options arefor resolving disagreements. Recognize thatthere may be asymmetries in informationand unbalanced negotiating power betweenthe parties involved.

STEP 5Build knowledge and capacityEnsure information on needs and objectivesis presented in a meaningful way.Negotiations should be conducted on a level playing field with no party feelingdisadvantaged.

STEP 6Manage internal disagreementsResolve internal company tensions anddisputes prior to negotiating withcommunities. Ensure relevant departmentsand employees are kept aware of the issuesunder discussion and the company’sposition.

STEP 7Establish potential components ofagreementsThe components to be included in anagreement will vary depending on thecontext, the goals and aspirations of theparties to the agreement and theirperception of what is fair and reasonable.Some of the issues that companies may wish to consider including are:

• financial payments and disbursement arrangements

• employment, training and contracting opportunities

• environmental, social and cultural impact management

• governance arrangements

• land access arrangements

• engagement mechanisms

• reciprocal obligations and what action should be taken if either side does not fulfil their obligations.


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STEP 8Implement the agreementPlan thoroughly for implementation. To support implementation, companiesshould ensure:

• agreement obligations are fully documented in an accessible form

• responsibility for implementing different components of the agreement is allocated at an early stage and people know what is expected of them

• someone within the organization has overall responsibility for the ongoing management of the agreement

• an up-to-date register is maintained indicating what action has been taken, is in train or proposed to address specific agreement obligations

• action plans are aligned with the agreement

• there is ongoing internal monitoring of compliance

• capacity building remains a focus throughout the life of the agreement, recognizing that both company and community personnel involved in monitoring and implementation will change over time.

Effective implementation requires that theaims of the agreement are constantlyconsidered.

STEP 9Set up appropriate governance processes,which include monitoring and reviewrequirementsPerformance should be monitored againstthe aims of the agreement. Companiesshould be prepared to change practiceand/or the agreement where necessary.


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Community Development Agreements continued 14Key references

Centre for Social Responsibility in Mining, EI Source Book, Good Practice Note: CommunityDevelopment Agreements, University of Queensland, 2011.

www.eisourcebook.org/cms/files/csrm_good_practice_notes_on_cdas_document_final_260911.pdf

Sustainable Development Strategies Group, public library of materials related to CommunityDevelopment Agreements (CDA) between resource companies and local communities.

www.sdsg.org/archives/cda-library

http://www.eisourcebook.org/cms/files/csrm_good_practice_notes_on_cdas_document_final_260911.pdf


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Management Systems 15DescriptionIntegrated community developmentmanagement systems can help communitydevelopment personnel manage theactivities required to implement successfulcommunity development programs. An integrated management system willnormally entail a set of policies andprocedures, registers of training, astakeholder database, a complaints register, a commitments register andreporting frameworks. These can be in hard copy or, more typically, in electronicformats.40

Integrating community developmentmanagement with the managementprocesses of the rest of the mine andcompany may involve participation inproject- and corporation-wide committees,communication throughout the company and with external stakeholders, andreporting. The essential element is for thecommunity development team to activelyengage across the board within thecompany, however it may be structured.

40 Though this list is not exhaustive, some electronic systems that companies may wish to consider are Borealis (www.boreal-is.com), SQL (www.sqleffects.com) and Q-Pulse (www.q-pulse.com).

PurposeDevelopment and implementation of anintegrated management system ensures thatcommunity development activities apply the“plan, do, check, act” process common toISO standards. Management systems addrigour to processes that you may alreadyhave been undertaking through formalizingexisting processes and allowing them to be audited.

When to use this toolAn integrated management system shouldalways be used. It should be established asearly as possible in the life of a mining andmetals project, used daily, maintainedcontinuously, monitored regularly andrevised and improved as needed. Quarterlyreviewing and annual updating/upgrading ofthe system should be sufficient to ensurethat it is kept in good working order.

How to use this toolThe explanation below details thefundamental aspects of an integratedcommunity development managementsystem.

STEP 1Using the knowledge base of your local and regional communities (tool 11 SocialBaseline Study) and other stakeholders (tool 1 Stakeholder Identification), and thecommunity development vision of yourdepartment (tool 6 Strategic PlanningFramework), produce policies to support this approach.


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Management Systems continued15

41 For guidance on co-ordination with wider business plans, see pages 12 and 32 of Minerals Council of Australia, Socioeconomic Benefits and Impacts: An Assessment and Planning Toolkit. Canberra, 2010. Available at: www.minerals.org.au/file_upload/files/resources/SEIBA-Toolkit-draft23August.pdf

STEP 2Develop procedures to implement thepolicies. Engage stakeholders in anyprocedures that affect them (such as tool 5Grievance Mechanism) and ensure that theyare aware of these procedures and knowhow to use them if needed. Ensure thatresources are available for departmentalstaff to implement all procedures throughthe project/corporate budgeting processes.Ensure that adequate budgets are availableto provide training in how to use andimplement procedures for staff and also for community members, if appropriate.41

STEP 3Plan and implement communitydevelopment programs in partnership withlocal communities and other stakeholderpartners. Keep records of program activities,and gather data for measuring progressusing selected indicators, ideally in co-operation with community partners andother stakeholder partners, such as NGOs.

STEP 4Monitor and evaluate the programs (use tools 19–20) and report to companymanagement and stakeholders. Adjustprograms as necessary from reviewing the evaluations, including inputs fromstakeholders.

Revise stakeholder lists, baseline data,grievance procedures, etc. in light of lessonslearned from evaluating monitoring dataand from input from stakeholders.


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Incorporating impact assessment into the ongoing management of operationsAnglo American, worldwide

Background and methodologyMost large mining and metals companies undertake environmental and social impactsassessments (ESIAs) prior to the development of new projects. These assessments areoften prompted by requirements from investors and/or regulators. An important objective is to help ensure that effective management of social and environmental issues is built into the physical design and incentive structure of the mine from the outset. Anglo American recognized that there was a need for ongoing socio-economic impactassessment and engagement to be implemented at producing operations.

In 2003, its Socio-Economic Assessment Toolbox (SEAT) was launched, which allowed mines to assess current social and environmental impacts and identify and respond to the broader developmental aspirations of host communities, in line with international best practice and in close consultation with local stakeholders.

Following a consultation stakeholder engagement process, SEAT guides managers throughthe process of developing a publicly-available management action plan. Business units are encouraged to collaborate closely with local stakeholders in developing this actionplan. Subjects covered by the toolbox include stakeholder identification, calculating totalemployment from the operation, assessing performance in relation to corporate policiesand establishing partnerships. Each SEAT assessment takes around four months toconduct. The toolbox was intentionally designed to be accessible to general businessmanagers. External organizations have, however, been brought in to help local businessunits undertake the process, for example the NGO Casa de la Paz helped the company’soperations implement SEAT in Chile.

Outcomes Launched in 2003 and enhanced in 2007 and 2011/12, SEAT has been implemented at all of the company’s mining locations. One of the main lessons emerging from SEATimplementation is the need to address community perceptions of adverse impacts, evenwhen these are not well founded. In addition, a number of substantive issues have emerged frequently from SEAT applications, including access to jobs and training, access to land and alternative livelihoods, access to supply chain opportunities, and the balance and distribution of social investments. In terms of implementing the processitself, managing rivalries between stakeholder groups has been identified as a particularchallenge.

One of SEAT’s main strengths has been to help professionalize the approach of operationalmanagers to managing social issues. Where social investment and philanthropycharacterized many community development efforts in the past, business units have beenencouraged to treat management of socio-economic impacts with the same degree ofdiscipline and attention as, for example, health and safety, or recruitment. SEAT has alsohelped shift the focus of socio-economic development contributions towards core businessactivities, such as local procurement, workforce development and delivering mineinfrastructure in a way that also benefits local communities.

CASE STUDY

Ü


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All the company’s significant operations are now required to undertake SEAT assessmentsevery three years. Training on SEAT implementation takes place on an ongoing basis across the company, and to date over 600 managers have been trained (staff from externalNGO or government partners represents around 15% of this figure). The toolbox hasemerged as the centrepiece of the company’s approach to community development and has been highly commended by a number of external organizations. For example, SEATwon the International Association for Impact Assessment’s (IAIA) 2012 “Corporate InitiativeAward”. IAIA hailed SEAT as “a unique attempt by a major mining company to incorporateimpact assessment into the on-going management of major operations”.42

Incorporating impact assessment into the ongoing management of operationsAnglo American, worldwide


42 www.icmm.com/page/70711/anglo-american-wins-international-award-for-socio-economic-assessment-toolbox-seat

http://www.icmm.com/page/70711/anglo-american-wins-international-award-for-socio-economic-assessment-toolbox-seat


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Community Action Plans 16DescriptionPRA exercises aim to establish detailedcommunity action plans (CAPs). Takingcommunity members through the steps ofparticipatory assessment and planning (seetools 6–13) enables them to analyse theirsituation, gain confidence in their own abilityto understand the cause of their problems,devise solutions to them and design adetailed plan for future action. CAPs not only list actions that need to be taken forcommunity development, they also state who should undertake those activities (bothcommunity members and external partners)and dates by which actions need to beundertaken. They provide a reality check forcommunity expectations, as the process ofallocating responsibilities, deadlines andresources required should make it clearwhen too much is being expected from oneperson, one donor or in too short a timespan. CAPs provide detailed work programsboth for the community, who own the plan,and for development partners.

Communities should be encouraged to takea long-term perspective in their developmentplanning, aiming for sustainability after themining and metals activity has finished.Community development planners shouldalso take into account the environmental orbiodiversity impacts of the programs theydevise, as economic success is not the onlycriterion for sustainable futures. It may bedevelopment partners who introduce thesesustainable development parameters intodiscussions with community members whenworking upon collaborative programplanning to align corporate communityinvestments with community andgovernment plans.

Initial CAPs will be fine-tuned, modified andupdated as communities and their programpartners go through the implementationprocess. Early versions of CAPs will likelyfocus on problems requiring immediateaction. As time passes, and communitiesbecome more confident in their ability tomanage their development agenda incollaboration with program partners, itwould be a good idea to emphasize post-closure planning. By the time a mine closes,the communities’ development plans shouldinclude the mining company as only one of a range of partners, as they should havemoved beyond dependency on the miningproject for financial support.

Above all, participatory assessment andplanning is an ongoing process andextremely interactive. CAPs are not drawnup for development experts to implement or for gaining community acquiescence inpreordained plans. As a dynamic system,PRA is subject to “growing pains” andsetbacks as well as successes. It is thesedevelopmental stages, however, that enable participatory planning to eventuallybring about a mutually respectful and co-operative working relationship betweencommunities and their partners in thedevelopment process – government, NGOsand resource companies.


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Community Action Plans continued16

PurposeTo act as a template for future planningactivities by the community and to serve as a record of how much they have achievedduring the participatory assessment andplanning activities. It is the basicmanagement tool for the community’sdevelopment program. Through producing a CAP, community members are providedwith a set of community-developed andcommunity-endorsed goals, activities andtimelines to enable them to achieve theirdevelopment objectives. The communityowns the plan and it also provides memberswith a list of partners to follow up with forhelp in achieving these objectives and targetdates to work towards. Simultaneously, theCAP provides you, as a development partner,with a clear understanding of communitypriorities and development objectives, so youdo not need to guess what the communityneeds and can align your programs formaximum synergy with the CAP.

When to use this toolFollowing on from the PRA exercisesdetailed in previous sections. Specifically,the results of the Development OpportunityRanking (tool 9) feed directly into the CAP process, as action plans need to bedeveloped for the implementation of thepriority opportunities identified. CAPs shouldbe reviewed as frequently as any otherdevelopment plan, that is as circumstanceschange or at least once a year. The project’smonitoring and evaluation system (see tools 19–20) should check whether CAPs are being implemented and suggest whether revisions are required.


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Community Action Plans continued 16

STEP 1State the specific objective that will addressthe identified issue.

STEP 2Develop a list of activities that must beundertaken to achieve the objective.

STEP 3Decide who in the community or whatunit/agency is most appropriate to undertakeeach activity.

STEP 4Decide when the activities are to be done.

STEP 5Decide what resource and budget will beneeded for each activity and who willcontribute resources.

STEP 6Name who will take responsibility forensuring that the plan is implemented. The CAP then becomes the managementtool for community development activities, tobe managed by the community with supportfrom company, government and NGOpartners. Part of the management processesfor the CAP will include selecting indicators(tool 19) for monitoring and evaluation ofprograms and reporting to communitymembers and development partners onprogram challenges and achievements.

See Tables 19 and 20 for examples of CAPs.

How to use this toolThis exercise is usually done in a communityworkshop, when all interested communitymembers are invited to participate inplanning for community development. The mining company can initiate andunderwrite this workshop, in collaborationwith key local stakeholders. As broad arange of participants as possible should beinvited, including representatives from thepublic sector. Efforts should be made toensure that women, youth, the elderly anddisabled are enabled to participate and anycultural or religious minority groups mustalso be fully represented. Experiencedfacilitators who understand how toencourage community members to take thelead are the best people to manage theproduction of CAPs. These facilitators shouldalso have a good knowledge of communitydevelopment processes and of successfulprograms elsewhere so that they can offerideas and suggestions to broaden the scopeof the plans where necessary.

There are six principal steps in developing a CAP for a specific problem. The sameprocedure should be followed for each of theselected opportunities. The specific plans canthen be combined to form an overall CAP forthe community. The community may wish toframe its planning process in a strategicplanning framework, as outlined in tool 6,including the community’s vision, communitydevelopment mission statement, goals,purposes, outputs and inputs.


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Four years after starting their CAP, theseresidents of Nzega District, Tanzania, have taken charge of their own communitydevelopment programs. Here, village menare seen working on a school building on a Sunday, completely independent of anyexternal motivation. (Photo. C. Macdonald)

SummaryResolute’s Golden Pride Gold Project in the Tabora region of western Tanzania was the first modern gold mine tocommence operation in Tanzania when itbegan to produce gold in November 1998.The communities close to Golden Pride inNzega District depended on subsistencefarming and suffered from a lack ofinfrastructure and income-generatingopportunities.

Resolute, an Australian company, tookmeasures to alleviate some of the mostimmediate features of the poverty it saw,rehabilitating and equipping the localschools, supplying uniforms, books, desksand trees for fruit to supplement thechildren’s diet. Gradually, the companyrealized that it would be more effective inthe long term if communities could beencouraged to empower themselves and take responsibility for their owndevelopment plans. The company couldthen join in with community-motivated and community-initiated projects instead of trying to ascertain from outside what the communities needed.

For this reason, Resolute decided toconduct a participatory planning programat the end of 2000 in the four communitiesclosest to the mine’s perimeter – Isanga,Mwaluzwilo, Bujulu and Undomo – toencourage communities to develop theirown community action plans (CAPs).Community members were delighted to be asked what they lacked, what theyneeded and to be assisted to devise theirown plans. Once they overcame their initial shyness with the unfamiliar process,each community embraced the opportunityto develop a CAP and put a great deal ofeffort into ensuring the project wascompleted.

Participatory planning Resolute Mining Limited, Nzega District, Tanzania

Participatory planning methods used in Nzega District

• Community mapping

• History

• Seasonal calendar

• Gender daily calendar

• Problem ranking

• Options assessment

• CAP

CASE STUDY

Source: C. Macdonald, URS and F. Kyessi, Resolute Mining Limited


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Key references

National Environment Secretariat, Government of Kenya; Clark University; Egerton University;and the Center for International Development and Environment of the World ResourcesInstitute, Participatory Rural Appraisal Handbook: Conducting PRAs in Kenya, Kenya, 1991.

Oduor-Naoh, E. et al. Implementing PRA: A Handbook to Facilitate Participatory RuralAppraisal, Program for International Development, Clark University, Worcester, MA, 1992.

Rietbergen-McCracken, J and Narayan, D. (compilers), Participation and Social Assessment:Tools and Techniques, International Bank for Reconstruction and Development/World Bank,Washington DC, 1998.

World Bank, The World Bank Participation Sourcebook, Washington DC, 1996,Appendix 1: Methods and tools for social analysis, pp. 199–202.

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Community Action Plans continued 16


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Community Action Plans continued16


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Local Economic Investment 17When to use this toolThe groundwork for local economicinvestment activities should commenceduring the feasibility stage to drivebehaviours among contractors and so that local businesses will be ready to supply goods and services when the mine’sneed for products and services ramps up for construction. By encouraging/requiring a proportion of local employment within your workforce during the construction period(at which time the greatest number ofworkers are employed), you can help build a skill set locally that can supply the mine in operations. Similarly, helping localbusinesses survive the transition to thesteady state of operations, when demandmaybe lower but more stable than duringconstruction, will be necessary. Providingsupport for companies and individuals todevelop sustainable businesses notdependent upon your project will be aconstant priority. If successful, as timepasses, there will be new people andbusinesses needing support as theirpredecessors achieve viability and theygraduate to independence.

How to use this toolTo implement this tool it is necessary tofirst determine the community investmentstrategy internally within the company.Based upon the approach defined in thestrategy, and then shared with and supportedby community stakeholders, you candetermine how to go about determiningopportunities for local economic investment.

The IFC’s Strategic Community Investment:A Good Practice Handbook for CompaniesDoing Business in Emerging Marketsprovides a good starting point forsuggestions on how mining companies canestablish an effective set of local economicinvestment programs. Published in June2010, the handbook provides comprehensive

DescriptionOne of the main benefits a mining and metalsproject can bring to an area is economicstimulus. There may be few other economicdrivers in places where mines are developed,making the mine a focal point for localeconomic activities. Often, the main benefitsthat local people hope for are economic – jobsand the ability to sell their products to themine, and significant expectations often arisearound both of these potential benefits. Minesneed to take care not to create a dependencyscenario, however, where all local economicactivities are centred upon their needs. Companies will need to ensure that theirapproach to local economic investment iscross-functional across departments. It isimportant that departments work towards ashared objective, especially if there are tensionsbetween the supply team who are concernedwith cost efficiency and the community relationsteam’s focus on community development.

For long-term community and economicviability and sustainable communitydevelopment, it is vital that efforts be madeto help diversify local economies. Companiescan play a crucial catalytic role both inensuring that they purchase local goods andservices and also in encouraging diversificationof the local economic base. They can alsofoster the equitable distribution of mine-stimulated benefits by ensuring that theirprograms provide opportunities to womenand vulnerable and/or marginalized groups.

PurposeTo enhance the benefits delivered by yourproject at a local level. This can be throughthe comparatively short-term employmentbenefit or through building capacity of localbusinesses to supply the goods and servicesneeded by the mine and to develop a diversityof other products and markets that can sustainthe local economy and community after themine has closed.


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advice about the many elements that need to be considered, including the company’sown strengths and priorities, communitypriorities, local economic capacity,appropriate means of assistance and amultitude of other useful aspects.43

For the IFC, strategic community investment (CI) involves voluntary contributions oractions by companies to help communities in their areas of operation address theirdevelopment priorities, and take advantageof opportunities created by privateinvestment, in ways that are sustainable and support business objectives.

STEP 1Define localTo prioritize local economic investment, youfirst need to consider what “local” will meanin this context. The definition of local youapply to your recruitment procedures islikely to be different from the definition youuse for procurement, but at this first stepyou need to engage with the communityrelations team (and draw on the outcome of tool 1 Stakeholder Identification) to agreeon the parameters you might consider for“local”. This might be a physical distancefrom the project, a distinction betweenimpacted and non-impacted communities, a political or administrative region, etc.

STEP 2Increase local contentOne quick and reliable way of “kick-starting”local economic investments is for thecompany’s procurement department tosearch for and support synergies between its product needs and the supplier capacityof local people. For more specific guidance

43 IFC, Strategic Community Investment: A Good Practice Handbook for Companies Doing Business in Emerging Markets, and Strategic Community Investment: A Quick Guide, Highlights from IFC’s Good Practice Handbook,Washington DC, 2010.

44 IFC, A Guide to Getting Started in Local Procurement, Washington DC, 2011. Available at: www.commdev.org/content/document/detail/2774/

on local procurement, the IFC’s Guide toGetting Started in Local Procurement providesadditional information for companies.44

This step of the tool summarizes the keytasks recommended by the IFC:

1.Conduct a company self-assessmentThe IFC has developed an Excel spreadsheet (available at: http://commdev.org/content/document/detail/2626)to support companies to conduct this assessment. It assesses the supporting structures that are in place to support a local procurement program, the existing processes in place and support that your company already provides to small and medium-scale enterprises (SMEs). Based on this assessment, you will get an understanding of the gaps that will need to be addressed in order to implement an effective local procurement program.

2. Identify the business case For local procurement to be integrated in standard operating procedure for your company, the business case needs to be clearly enunciated and agreed across the company. The business case can vary vastly for different operations; however, the IFC has identified seven key drivers: government regulation or contract requirement for local content, competitive advantage, social licence to operate, energyand environment considerations, cost reduction and/or increase in quality, business continuity and long-term economic diversification.

3.Define local As highlighted in step 1, it is critical that you agree a definition of local for your local procurement activities.


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45 See IFC, Projects and People: A Handbook for Addressing Project-Induced In-Migration, Washington DC, 2009. Available at: www.ifc.org

4.Create a policy By working through these tasks, you will be in a position to develop a local procurement policy, which can be applied to both your own business activities and those of your contractors.

STEP 3Local employmentWhen communities hear that a mine may be developed in their area, the first questionthat is asked is more often than not abouthow many jobs will go to their communitymembers. Expectations around localemployment need to be managed verycarefully, but there are steps you can take to improve the opportunities for localemployment within your project. Increasinglocal employment and setting clear criteriafor eligibility as a “local” can be a criticalelement of managing in-migration.45

To support local employment you shouldconsider the following ideas:

1.Local employment policyDo you have a local employment policy and/or a national requirement to prioritize local employment? Is this policy well understood across your project and by community members?

2.Skills audit Do you know what skills are held by community members, and are there opportunities to use these skill sets currently or to build upon them through vocational education programs in readiness for future employment? (tool 13 Competencies Assessment may be useful.)

3.Contractor requirements The largest labour force is normally seen during construction, and it is often primarily contractor based. Do you have clauses in your tender process that favour companies who employ locally, or that require contractors to train local employees as they undertake the work?

4.Community development programsAre there programs you could support that would increase the likelihood of thecommunity members finding sustainable opportunities, either with your project or ideally with other diversified activities?

STEP 4Diversify opportunitiesIn addition to supplying the mine, it isimportant to encourage alternative livelihoodand economic opportunities so thatcommunities do not become dependent upon the mine. This can be done throughproviding low-cost loans to otherbusinesses, business advice and mentoringservices not solely related to procurementopportunities, and a variety of trainingcourses and support services.

One philosophy for diversifying localbusinesses without creating dependencies iscalled Enterprise Facilitation, developed over25 years by the Sirolli Institute. Its approachrelies upon never offering advice until abudding entrepreneur asks for it, therebyavoiding a handout relationship. It alsoemphasizes the importance of building a teamapproach to business, as it is very unlikelyfor an entrepreneur to be equally skilled andpassionate about production, marketing andfinancial management, so it makes sense toteam up people whose strengths lie in each ofthese fields. This approach can be explored onthe Sirolli Institute website at: www.sirolli.com


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Assisting growth and development of local suppliers through collaboration andcapacity-building programsBHP Billiton, Mozambique

SummaryOne of the most significant contributions that a large mining company can make to societyis an economic one. By investing in the local private sector, a company provides the localcommunity (including employees who work for local businesses) a reason to value themine’s presence, enhancing its social licence to operate.

Context and challengeLocated in Maputo in southern Mozambique, BHP Billiton’s Mozal aluminium operation was the first major development in the country in the past 50 years and it quickly accountedfor more than 45% of imports and 7% of gross domestic product (2002 figures). In 2007,aluminium exports contributed 61.4% of the total exports value and in 2010, Mozal’saluminium ingots still accounted for over half of the export earnings in Mozambique. To date, Mozal continues to rank first place on the top 100 companies in the country (KPMG 2010 Top 100 Companies in Mozambique).

A 17-year civil war had devastated Mozambique and its physical and economic infrastructure.There were few local businesses that could provide the new smelter with essential goodsand services. Development of a local supply chain was therefore imperative. Commencingwith a commitment to award as much work as possible to local suppliers, the focus ofdevelopment support programs is to help small and medium businesses improve theirskills and capacity, with a view to building a local base of strong, competitive andsustainable supplier companies.

ResponseInitially, a program was developed to educate and train the newly formed small andmedium-scale enterprises (SMEs) on an international-standard tendering package,allowing them to compete for business against foreign companies. Work packages wereexclusively allocated to local companies. This was undertaken without compromising theprinciples of compliance to specifications, timely delivery or safety.

The materials and services identified for procurement from local companies includedstationery, transport labour, vehicle rental, signage, labour rate agreements, minor civilwork, equipment surveys, manufacturing, small tool repairs, lifting services, hardware and software services, vehicle service and maintenance, laboratory consumables and hand tools.

Services that could be undertaken with low risk to the operation were selected toparticipate in the program in the initial stages; then the range was expanded as localcapabilities developed.

In parallel, the company established the “MozLink” program and built an SME DevelopmentCentre. Through the program, Mozal builds SME capacity, shortens the supply chain,minimizes cross-border complexities and reduces lead times, which in turn leads to lowerstock levels and cost savings for the company. The MozLink program aims to createstronger and more competitive SMEs, transfer knowledge and capacity, and assistMozambican companies to grow and develop into strong organizations that can compete in both local and international markets.

CASE STUDY

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The MozLink process is to:

• identify, introduce and develop suitable suppliers

• create a Mozambican supplier database

• identify materials and services to be procured exclusively from Mozambican companies

• implement training and development programs for SMEs and

• build co-operative relationships.

MozLink is a win-win for the corporations, for SMEs and the overall community. More than 150 SMEs were developed through MozLink I and II creating more than 3,000 jobs. The success of the MozLink program has encouraged other large organizations to join the initiative, which will converge to MozLink III set up to start early July 2012. A further80 SMEs are expected to take part in this phase.

Outcomes and lessons learnedSince the beginning of operations at Mozal, the number of packages awarded to localcompanies has progressively grown. In 2004, an average of around US$4 million was beingspent per month with Mozambican registered companies. In 2011, this figure has more than doubled, contributing to more that US$110 million to the local economy annually.

Figure 9 shows the history of expenditure with local companies between 2004 and 2011. It is expected that a further US$123 million will be spent in the local economyduring the financial year 2012.

This approach provides SMEs with opportunities for information sharing that can extend their marketplace, facilitate access to useful data, accelerate growth, introduce bestpractice information systems and bring demand and supply together. Overall, thedevelopment of SMEs has ensured a stronger supply chain, development of local capacityand local availability of products and services.

Source: BHP Billiton Mozal

Assisting growth and development of local suppliers through collaborationand capacity-building programsBHP Billiton, Mozambique


Figure 9: Spend with the local economy

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Key references

Enterprise Facilitation on the Sirolli Institute website at: www.sirolli.com

IFC, A Guide to Getting Started in Local Procurement, Washington DC, 2011. Available at:

www.commdev.org/content/document/detail/2774/



IFC, Strategic Community Investment: A Quick Guide, Highlights from IFC’s Good PracticeHandbook, Washington DC, February 2010. Available at:


Various Oil, Gas, and Mining Sustainable Community Development Fund resources on localprocurement are available at:

http://commdev.org/section/tools/local_supplier_devp

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Resettlement Planning 18DescriptionThe construction and operation of a miningor metals project, including its infrastructuresuch as accommodation, roads, dams andstorage facilities, require the acquisition ofland. Sometimes there are people eitherliving on or using this land for theirlivelihoods and who will therefore be eitherphysically or economically displaced by the development of the mine. Physicaldisplacement means that the residentpopulation will need to move to anotherplace. For those who lose productive land or resources or have their access to itdiminished by the activities of the miningor metals company, the process is termed economic displacement. In mostjurisdictions, and by all measures of goodpractice, it is necessary to ensure that thepeople physically or economically displacedby the mine have their assets and livelihoodsreplaced, and even improved. This willinclude communal, community and publicassets if they are affected.

PurposeIf the development of a mining or metalsproject will require the physical or economicdisplacement of residents in the host area,then a resettlement action plan (RAP) will berequired. If only economic and not physicaldisplacement will occur, then a livelihoodrestoration plan rather than a RAP will beneeded. The IFC is the leading internationalagency that provides resettlement planningguidance to private sector mining projectson resettlement. Its principles forresettlement planning are set out inPerformance Standard 5 “Land Acquisitionand Involuntary Resettlement”46 and aresummarized below:

• to avoid, and when avoidance is not possible, minimize displacement by exploring alternative project designs

• to avoid forced evictions

• to anticipate and avoid, or where avoidance is not possible, minimize adverse social and economic impacts from land acquisition or restrictions on land use by (i) providing compensation for loss of assets at replacement cost and (ii) ensuring that resettlement activities are implemented with appropriate disclosure of information, consultation and the informed participation of those affected

• to improve, or restore, the livelihoods and standards of living of displaced persons

• to improve living conditions among physically displaced persons through the provision of adequate housing with security of tenure at resettlement sites.

46 See IFC’s Sustainability Framework, 2012 edition, http://www1.ifc.org/wps/wcm/connect/Topics_Ext_Content/IFC_External_Corporate_Site/IFC+Sustainability/Sustainability+Framework/The+2009-2011+Review+and+Update/

http://www1.ifc.org/wps/wcm/connect/Topics_Ext_Content/IFC_External_Corporate_Site/IFC+Sustainability/Sustainability+Framework/The+2009-2011+Review+and+Update/


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When to use this toolAs soon as it becomes clear that the projectwill require involuntary resettlement or willaffect income-producing activities, then theresettlement and livelihood restorationplanning process should commence.

How to use this toolThis is a complex and highly specialized field and for a resettlement process of anysize larger than a few households, youshould seriously consider engagingspecialized and experienced consultants tohelp manage the process. This tool drawsheavily on the IFC’s 2002 Handbook forPreparing a Resettlement Action Plan.

As described in the IFC handbook, theessential components of a RAP are thefollowing:

• identification of project impacts and affected populations

• a legal framework for land acquisition and compensation

• a compensation framework

• a description of resettlement assistance and restoration of livelihood activities

• a detailed budget

• an implementation schedule

• a description of organizational responsibilities

• a framework for public consultation, participation and development planning

• a description of provisions for redress of grievances

• a framework for monitoring, evaluation and reporting.47

47 http://www1.ifc.org/wps/wcm/connect/topics_ext_content/ifc_external_corporate_site/ifc+sustainability/publications/publications_handbook_rap__wci__1319577659424

As always in successful communitydevelopment, relationships and engagementwith affected populations are essential.Mining company personnel should work in partnership with the project-affectedpeople, their government and communityrepresentatives, and appropriate civil societyorganizations to establish the parametersfor the resettlement and compensationactions. Using the guidance handbooks ofthe international organizations listed in thereferences for this tool, and engaging theservices of qualified and experiencedresettlement, land valuation andcompensation experts, mining companypersonnel should develop a plan agreeableto all affected parties.

http://www1.ifc.org/wps/wcm/connect/topics_ext_content/ifc_external_corporate_site/ifc+sustainability/publications/publications_handbook_rap__wci__1319577659424


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Resettlement Planning continued 18The following steps for identifying the peoplelikely to be affected by the project (bullet 1)are outlined in the handbook on pages 12 to25. The preparation and implementation of aRAP is a complex and serious procedure,one that will require the commitment oftime, expertise and resources.

It is important to note that resettlement isnot purely about replacement of physicalassets but also about restoring the socialfabric of communities, which is usuallydisrupted during a resettlement process.Steps 1 to 3 below describe efforts toquantify the resettlement – population andasset census and inventory. However, Steps4 to 6 also include gathering qualitativeknowledge to help restore the quality ofcommunity life, not just the standard ofliving.

STEP 1Develop thematic maps that identify suchfeatures as population settlements,infrastructure, soil composition, naturalvegetation areas, water resources and landuse patterns.

STEP 2Undertake a census that enumerates theaffected people and registers themaccording to location.

STEP 3Prepare an inventory of lost and affectedassets at the household, enterprise andcommunity level. This will need to considerloss of access as well as physical loss.

STEP 4Conduct socio-economic surveys and studiesof all affected people (including seasonal,migrant and host populations), as necessary.These surveys should include focus groupsand discussions with the various sectors of the communities being resettled, tounderstand the social dynamics and patternsthat will be disrupted by the resettlementprocess.

STEP 5Analyse the results of the surveys andstudies to establish compensationparameters, design appropriate incomerestoration and sustainable developmentinitiatives, and identify baseline monitoringindicators. Initiatives to support therestoration of the social fabric of theresettled communities and their communityvitality will also be important.

STEP 6Engage in consultation with affectedpopulations regarding mitigation of effectsand development opportunities. Work withthe resettled people to ensure that theresettlement program is achieving its aimsof restoring and enhancing their way of life.

Managing the impacts of resettlement, AhafoNewmont, Ghana

SummaryA resettlement process was undertaken at Newmont Ghana’s Ahafo mine. Because of the demographic profile of the community – many small farmers and some vulnerablehouseholds – the company partnered with a range of local organizations in order to develop a tailored resettlement process.

Context and challengeNewmont Ghana’s Ahafo mine is located around 180 miles north-west of Accra. Prior to the development of the mine, which was home to around 500 families, the companyundertook a study to identify whether it would be possible to avoid the disruptive process of community resettlement, which it viewed as a last resort. However, since there were no other viable options, the company instituted a resettlement process for the primarilyagricultural community.

Response Negotiation on behalf of the community was undertaken by a Resettlement NegotiationCommittee, which comprised community representatives and traditional authorities. Via this committee, some members of the community opted for monetary compensationrather than resettlement. Payment was conditional upon proof that the individuals hadalternative homes to relocate to.

An initial group of 2,200 people were resettled to two new villages in 400 purpose-builthomes, at a cost of US$14 million. The homes and residential plots came with legal title (99-year leases), the first time that the families had owned such title to the land. Prior toresettlement, traditional ownership arrangements had prevented members of thecommunity from legally owning their properties.

CASE STUDY


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Agricultural smallholdingsThe main issue raised by the communities was the loss of land and, in turn, the ability toearn a living. Replacement plots were given to residents who lost their residential land, and farmers whose crops were disrupted received monetary compensation.

There was some disagreement over prices paid for cocoa crops that had been disrupted by the resettlement. In response, the company created a “crop review committee” drawnfrom the community, NGOs, traditional authorities and government agencies.

There was also disagreement over the lack of compensation for fallow land. Despite beingin accordance with Ghanaian law in not providing compensation in this case, the companydecided to explore mitigation measures for individuals who had lost fallow land.

Some people found alternative livelihoods to farming, including employment at the newmine, or in small businesses supplying the mine with goods and services, but there weresome concerns regarding a perceived lack of youth employment opportunities, particularlyin agriculture. In response, the company launched an agricultural improvement and landaccess program to help farmers increase their crop productivity.

The program offered five agricultural assistance packages, and monetary assistance.Initially, the program targeted around 4,000 farmers. Two thousand individuals formallyregistered and 400 received assistance packages and begun new farms as a result.

Outcomes and lessons learnedThe company worked closely with the community during the resettlement process, drawingon external expertise where necessary, and responded quickly and effectively to concernsraised along the way, going beyond legal requirements where necessary.

The company ensured that the main source of employment not only continued, but wasstrengthened, following resettlement. In addition, the company ensured that vulnerablepopulations were specifically supported during the relocation.

Full resettlement disclosure documents available at:

www.newmont.com/africa/ahafo-ghana/public-disclosure-documents

Sources: Newmont website – 2007 community development case studies, accessed 10 January 2009 from: www.beyondthemine.com/2007/?l=2&pid=240&parent=253&id=303

“Independent assessment of resettlement implementation: Ahafo South Project” (August 2005) prepared by Frédéric Giovannetti, a resettlement consultant, for Newmont and the IFC

“Independent monitoring of resettlement implementation: progress update” (January 2006), Newmont Ghana Gold Limited.

“Report on vulnerable program: Ahafo South Project” (April 2006) prepared by planning Alliance for Newmont Ghana Gold Limited

Managing the impacts of resettlement, AhafoNewmont, Ghana



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Key references

Asian Development Bank, Handbook on Resettlement: A Guide to Good Practice, Manila, 1998.Available at:

www.adb.org/documents/handbook-resettlement-guide-good-practice

European Bank for Reconstruction and Development’s Performance Requirement 5: LandAcquisition, Involuntary Resettlement and Economic Displacement. Available at:

www.ebrd.com/downloads/about/sustainability/ESP_PR05_Eng.pdf

IFC, Performance Standard 5: Land Acquisition and Involuntary Resettlement, Washington DC,2012. Available at:


IFC, Handbook for Preparing a Resettlement Action Plan, Washington DC, March 2002.Available at:



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MONITORING AND EVALUATION

TOOLS

How to monitor and evaluate community developmentactivities and measure progress towards program goals

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MONITORING AND EVALUATIONSUPPORTS YOUR COMMITMENTTO STAY ON TRACK ANDACHIEVE RESULTS. IT ALSOGIVES YOU AN OPPORTUNITYTO CRITICALLY REVIEW YOUR MANAGEMENT SYSTEMS AND PROCESSES, TO IDENTIFY WHAT IS WORKING WELL AND WHAT NEEDS SOME DEVELOPMENT.

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TOOL 19 Indicator DevelopmentA process for choosing indicators for program evaluation that can measure up to transparent scrutiny from any quarter. These indicators are especially appropriate for use in the Goal Attainment Scaling tool and may also be useful for GRI reporting. The best place to find appropriate indicators to be used for monitoring and evaluation will be in the Social Baseline Study (tool 11).

TOOL 20 Goal Attainment ScalingGoal Attainment Scaling (GAS) is a useful means for measuring the degree to which outputs and outcomes are being met. It is particularly useful for social investment and community development projects where multiple stakeholders are involved and where there may be differing assessments about the degree of achievement of project goals. It enables evaluations to be made by a range of stakeholders and observers, not just so-called experts. Another major advantage is that the results can be presented in the form of simple graphs, which makes them more accessible to people unfamiliar with qualitative, social science measurements, such as financial and technical managers at a mining or metals project.


Monitoring and evaluation tools

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Guidance for using monitoringand evaluation tools

Monitoring and evaluation (M&E) ensuresthat development programs are going in theright direction to achieve their stated goals:

MonitoringThe ongoing, methodical collection andanalysis of data on development activities,which provides program managers andstakeholders with early indications ofprogress and achievement of goals.Monitoring can be said to be themeasurement of outputs and is undertakenmore frequently than evaluation and is often done by people involved in thecommunity development programs.

EvaluationThis is primarily concerned with longer-termresults of development activity, or themeasurement of outcomes. It aims toidentify how and why activities succeeded,failed or were changed – in order to improvethe effectiveness of future undertakings.Many mining projects opt to have evaluationdone periodically by independent, externaladvisers, but internal evaluation is alsoworthwhile.48

Through M&E, you are exploring fourfundamental questions:

• What worked and why?

• What did not work and why?

• What could have been done differently?

• What adjustments and changes are required now?

The process you develop for answering these questions depends on the complexityof your community development activitiesand the depth of knowledge andunderstanding you require. Evaluations ofcommunity development are challengingbecause they have both quantitative andqualitative dimensions: basic informationabout what has been undertaken isimportant but so too is information aboutcommunity members’ perceptions of theprocess, the results achieved and the overallbenefits of community development.

The benefits of effective M&E include:

Improved managementIt supports your commitment to stay ontrack and achieve results. It also gives youan opportunity to critically review yourmanagement systems and processes, toidentify what is working well and what needs some development.

Improved accountability Your partners want to know how you haveused program resources and what you haveachieved in order to assess whether theyshould continue to support your activities.

Participation M&E provides an opportunity to bringcommunities and other stakeholders into the program management process, to review program performance from their own perspective and to influence futureprogram direction.

48 Examples of external evaluation processes are the TIAP team for the Tangguh LNG Project and PEAK (Porgera Environmental Advisory Komiti) in Papua New Guinea (see www.watercentre.org/news/peak-newsletter).


Monitoring and evaluation tools continued

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M&E is an important learning process,enabling you to reflect on your experienceand assess how that experience can beincorporated into other activities and longer-term program development.

By applying indicators developed in tool 19,project managers and stakeholders canassess the implementation of projectactivities, and achievement of agreed projectgoals. As an additional means of assessingboth short-term achievements (monitoringof outputs) and longer-term results(evaluation of outcomes), the GAS method(tool 20) is beneficial because it allowsassessment to be undertaken by a widerange of stakeholders and permitscomparison of assessments given bydifferent stakeholder groups.

All of these processes can assist in theprocess of gathering data for reporting tostakeholders in accordance with the GlobalReporting Initiative (GRI).

M&E should be used during the life of acommunity development project orinvestment to measure:

• results of community development programs

• differences between expected and actual outcomes

• reallocation of remaining resources to improve outcomes

• justification for allocation of further resources

• outcomes in terms of benefits to the community and the business.

There are many other M&E processesavailable, and the references will lead you to discussions of some of these. If you usetools 19 and 20, however, you will have agood understanding of the progress of thecommunity development programs that youare involved with and be able to report itboth within the company and externally.

As mining company staff, you will likely haveinternal company demands for M&E, toreport to managers and shareholders thatcommunity development funds are beinginvested wisely, and achieving statedobjectives. You should involve the communityand other stakeholders in the monitoringprocess as much as possible, as this willgive you the most “real” feedback about your progress.

NGOs/CBOs will likely have their own M&Erequirements, as will donors and bilateralpartners, many of which will draw on similarapproaches to those identified in these tools.

Government officers and communitymembers may find it useful to understandthe approach to M&E taken by companies,especially if they are going to participate inthe monitoring process.

Involving community members in monitoringprograms, especially for matters of greatimportance to them, such as water quality, is an ideal way not only of conducting goodpractice monitoring but also of establishingcommunity belief and support in the miningproject’s environmental managementsystems and procedures. Table 21 illustratesthe characteristics of eight such programs in Peru, studied by the World Bank’sCompliance Advisor/Ombudsman.


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Indicator Development 19DescriptionEffective reporting, monitoring andevaluation depend on the identification of effective performance indicators. Effective performance measurement needsto use appropriate units for measuringchange; to be able to distinguish betweeninputs, outputs and outcomes; to measureeffectiveness and efficiency; and to assess both qualitative and quantitative dimensions of change.

Anglo American’s Socio-EconomicAssessment Toolbox (SEAT) providesexcellent guidance on the development ofmanagement and monitoring measures. Steps 4 and 5 of this tool draw heavily on the approach outlined in SEAT tool 6A:Developing a Social Management Plan.49

Inputs Input indicators measure inputs such asmoney, time, etc. contributed to developmentactivities and/or processes conducted,number of meetings held, number of studies conducted, etc. They are important in managing resources and ensuringaccountability of development facilitators.They do not, however, tell us anything abouthow successful, or otherwise, developmentactivity has been.

OutputsOutput indicators measure the direct resultsof community development projects, forexample numbers of children vaccinated,numbers of people trained in agriculturalmethods, school completion rates, etc.

OutcomesOutcome indicators measure longer-termchanges that are the desired return oninvestment in the project, for examplemeasurable change in the community’squality of life, health or economic well-being. They are the best measure ofhow successful, or otherwise, developmentactivity has been.

49 www.angloamerican.com/seat


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Indicator Development continued19

PurposeTo develop a set of objectively verifiableindicators to measure performance ofcommunity development programs.

When to use this toolFrequent monitoring can enable programs to be reoriented if they are not succeeding at first. So, as often as possible, at leastonce a year, or whenever circumstanceschange. As with GAS (tool 20), appropriateperformance indicators are important partsof a post-closure monitoring program aswell as useful during operation of the mine.

How to use this toolSimilar to the GAS tool (tool 20),development of program indicators is bestdone as a group exercise involvingcommunity members. Performancemeasurement should be based on objectivelyverifiable indicators, to ensure thatmeasurements of change by one group areaccountable to all stakeholders as well asbeing repeatable by other groups if needed.The important point is that there must besome objective means of verifying results,for example test results for students, ornumbers of trainees completing a course.

STEP 1Gather together a group of people from thecommunity and the company with knowledgeof and interest in the programs you want todevelop indicators for. In addition tobeneficiaries from the program, this shouldinclude staff with insight about how theprojects fit into the broader socio-economicobjectives of the operation. Involving stafffrom a number of departments will increasebuy-in for the indicators selected to monitorthe progress of the community projects.

STEP 2Brainstorm ideas for indicators, focusing onmeans of verification.


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Indicator Development continued 19STEP 3Prepare a list of indicators for each program.Examples of quantitative indicators mayinclude:

• the frequency of meetings, the number of people involved

• growth rates

• yields, prices

• the uptake of activity inputs, e.g. loans, school enrolment, visits to the clinic, children vaccinated

• the adoption/implementation of activity outputs, e.g. technologies, manuals, newsletters or guidelines in use.

Qualitative indicators may relate to:

• the level of participation of a stakeholder group

• stakeholder/consumer opinions, satisfaction

• aesthetic judgements regarding local amenity or lifestyle choices

• decision-making ability

• changes in attitudes

• the emergence of leadership

• the ability to self-monitor

• the development of groups and of solidarity

• behavioural changes

• evidence of consensus.

It is generally easier to measure behaviourthan feelings; behaviour can be observed. So if an objective is to increase people’sconfidence in meetings, it may beappropriate to measure this by observinghow often they speak and whether theyspeak clearly.

SimpleEasy to interpret, monitor and understand by the community and otherswho need to act

Measurable Quantifiable and reliable

AccessibleBased on accessible and consistent information that is available over time

RelevantMeasures what people need to know andcan be acted on

TimelyResponds to changes in social conditionsand alerts people to action what isrequired

Indicators should be SMART:


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STEP 4Evaluate the feasibility of the output and/oroutcome expected. In order to evaluate thefeasibility of each recommended indicator,the following should be considered:

• strategic socio-economic management or development objectives, and how potential indicators will contribute to these

• whether the recommended indicator will be effective

• whether the resources and skills are available within the company or among local partners to measure the indicator

• the approximate cost and time required to measure the indicator.

See Figure 10.

Figure 10: Ideal criteria for indicators (adapted from Anglo American’s SEAT)

RelevantEasily understood

MeasurableSimple to report

UsefulWidely recognized

Informative

Indicators


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Indicator Development continued 19

Table 22 provides an example of howmonitoring might be undertaken for aninvestment in apprenticeships and trainingcourses. The selected indicators can beclassified according to the SMART system.The input is the apprenticeships and courses themselves, although this could also be noted as the cost of the courses, for example US$5,000, which would be moreSimple. The expected output is Measurable –there was a target of 20 apprentices andtrainees starting, graduating and findingcontinuous employment with the company.The target was Accessible, although notquite reached. The indicators are certainlyRelevant, as numbers of graduates findingcontinuous employment is exactly what the program was designed for. Finally, themonitoring indicators are Timely, as thecourses were run for a fixed period of time.

STEP 5Engage with stakeholders to monitor andreport on the effectiveness of the community programs using the indicators.Monitoring should be carried out throughengaging openly with stakeholders, allowing for feedback on performance andinformal inspections of the programs.Involving external parties in monitoringactivities will also provide useful feedbackfor improving performance.

Table 22: Example of a monitoring table

Apprenticeshipsand trainingcourses

Twentyapprentices andtrainees starting,graduating andfindingcontinuousemployment withthe company

Twentyapprentices andtraineescompleted thecourse thoughonly 15 foundcontinuousemployment withthe company

Five More supportneeds to beprovided forindividuals tomanage thetransition fromapprenticeships/trainings tocontinuousemployment

Input Output expected(indicator)

Actual results(indicator)

Difference Observations(action to betaken)

Monitoring of apprenticeships, training and skills development


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Key references

African Network on Participatory Approaches, Village Participation in Rural Development,Royal Tropical Institute/World Bank, Washington DC, 2000.

Anglo American, Socio-Economic Assessment Toolbox, 2012. Available at:

www.angloamerican.com/development/social/seat

DFID, Tools for Development: A Handbook for Those Engaged in Development Activity,London, 2003, especially Chapter 12. Available at:




Rietbergen-McCracken, J and Narayan, D. (compilers), Participation and Social Assessment:Tools and Techniques, International Bank for Reconstruction and Development/World Bank,Washington DC, 1998, especially pp. 189–252.


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Goal Attainment Scaling 20DescriptionGoal Attainment Scaling (GAS) is a tool used to determine different – or changingover time – levels of stakeholder satisfaction with development activities. Its results canbe used as an easily understood means ofreporting feedback.

PurposeGAS allows you to directly track progresstowards an identified goal. GAS can be usedto monitor the outputs of communitydevelopment activities, say every six months,or it can be used to evaluate differentstakeholder perceptions of outcomes of a program over a longer time period. The results of the surveys can demonstratedifferences between different stakeholders’perceptions of an issue of shared interest.

When to use this toolWhenever the views of one or more groupsof stakeholders are required on the progressand achievements of a program. They can berepeated at intervals and among differentgroups. This can be done at any stage frompre-construction to post-closure, with thequestions being asked altered to match theprevailing situation.

How to use this toolActivity or program goals are framed as key questions. They form a commonframework for personal consultations,analysis of program performance and reviewof documentation. The key questions leadlogically to a Goal Attainment Scalingframework that enables the facilitator todetermine the degree to which programoutputs or outcomes are being achieved.

Table 23 presents an example GAS sheet forthe tracking of community and companyperceptions of an engagement programbeing conducted with communities adjacentto a planned mining project.

Using this instrument with differentstakeholder groups can detect areas wherethe perception of the performance of theengagement program differs between theparties. The results can also be used toestablish benchmarks that can be trackedfor change over time.

You can see that it is easy to represent theresults in graphic form to make it easier formanagement and stakeholders to analysequickly changing trends in perceptions of thesuccess of the programs being evaluated.

This is best done with a group or team ofpeople involved in the project, and can bedone for each indicator for outputs andoutcomes, as feedback desired.


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Goal Attainment Scalingcontinued20

The descriptors for points 4 and 5 on thescale should indicate results that exceed theobjective, with a score of 5 being the highest.See rows (4) and (5) in Table 23.

STEP 3The method for using GAS is that eachperson rates the program being evaluatedwith a score of 1 to 5. In the example given,60 people are asked to rate the program, 15 people from each of the four categories of stakeholders. So, looking at the top row of Table 23, you will see that none of thegovernment or company people gave theprogram the lowest score, but three NGOsand two community members did. At theother end of the scale, the bottom rowreveals that one person from each of thecompany and government groups gave theprogram the most favourable outcome score, and none of the NGO or communitypeople did.

The beauty of this process is that the samequestions can be asked of differentstakeholder groups, and the results can becompared. The survey can also be reportedat intervals of time. Finally, the results areeasy to present in a graphical format.

Weighting accorded to the results obtainedfrom different GAS results may differdepending on the importance of eachgroup’s perspective to the projectmanagement.

STEP 4Communicate the results and display theresults in graphs.

STEP 1Identify the objectives for a project and their associated indicators. In the exampleprovided below, one of the goals of thestakeholder engagement program beingevaluated was defined as developing a goodrelationship between the company andcommunities. So, a central question toevaluate was:

Question: Is the engagement program developing a good relationship between thecompany and local communities?

STEP 2Decide on and write descriptors for thescoring scale for each indicator. Ideally, thisshould be determined by the projectmanager/co-ordinator together with keyprimary stakeholders. Defining and agreeingon GAS scales can take some time, oftenbecause different participants have differentexpectations, perhaps stemming fromdifferent understandings about what theproject is about. This time, however, is auseful investment to ensure a sharedunderstanding of what the collectiveexpectations are for it.

The descriptors for the 1–5 scale aredesigned with the central question beingscale point 3, that is the average score,meaning that your objective has been met. In this case, a score of 3 was described as:

The engagement process is developing the basis for a sound and fruitful relationshipbetween the parties.

The descriptors for scale points 1 and 2should describe evaluations that fall short of meeting the objective, with 1 being thelowest achievement. See rows (1) and (2) inTable 23.


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Goal Attainment Scalingcontinued 20

In the graphic representation (Figure 11), you can see that most scores are around the middle, which means the program hasattained its goal for building a goodrelationship. The highest ratings came fromthe government and company people, andthe lowest from NGOs with middling scoresfrom the communities. The scores could be agglomerated, to give a raw score of howmany people rated the program as havingobtained its objective, but is most usefulwhen stakeholder group scores are keptseparate.

This example shows the results of only onequestion asked about a program, but aseries of questions or objectives could beevaluated in just the same way, and repeatedat intervals, as part of a regular monitoringprocess that can continue even after themine has ceased operations, as part of apost-closure monitoring program. If lowscores or wide discrepancies in scores areobserved from different stakeholder groups,this should be taken as an indication that theprogram is not meeting the expectations ofcertain stakeholders. Corrective action

Table 23: GAS sheet for assessing the engagement program

(1)

(2)

(3)

(4)

(5)

0

1

6

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1

8

5

1

3

7

5

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2

5

5

3

0

Question: Is the engagement program developing a good relationship between the company and localcommunities?

The engagement program is poorly regarded with thelevel of contact between the parties being low andineffective.

The engagement program is regarded as generally well run, in that contacts are friendly but are not progressingfar in establishing a sound relationship.

The engagement process is developing the basis for a sound and fruitful relationship between the parties.

The engagement process has evolved into a solid relationship, based on mutual trust, open exchange ofissues and ideas and a shared framework of interests.

The relationship between the parties has been formalized and is recognized as very important by bothparties.

Engagement program leads to a mutually beneficialrelationship between company and local stakeholders

Gov

ernm

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Com

pany

GA

Ssc

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NG

Os

Com

mun

ities

Goal Score (n=60)


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Goal Attainment Scalingcontinued20

should be taken by consulting thedissatisfied stakeholders and workingtowards a mutually agreed modification ofthe program. As modifications may thenaffect other stakeholders, they should alsobe consulted. Using GAS for monitoring thus enables early corrective actions to beundertaken. For longer-term evaluationpurposes, the GAS process similarly allowsprograms to be improved and enablesprogram managers to understand whichsections of the community may not besatisfied with project activities.

Results to questions about stakeholdersatisfaction with community developmentprograms can be useful for reporting tomanagers about the perceived success of acommunity investment program. They canalso inform external reports such as acompany’s sustainability report.

X-axis

(1) most unfavourable outcome

(2) less than expected success

(3) expected level of success

(4) more than expected success

(5) most favourable outcome

Y-axis

number of people giving that score

maximum score possible per group = 15

Key

Company

Government

NGOs

Communities

Figure 11: Example of GAS results displayed as a graph

8

7

6

5

4

3

2

1

0(1) (2) (3) (4) (5)

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GLOSSARY AND REFERENCES

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WE HAVE INCLUDED DEFINITIONS OF COMMUNITY DEVELOPMENT TERMS AND CONCEPTS USED IN THIS TOOLKIT AND KEY SOURCES OF FURTHER INFORMATION.

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Glossary

A

Arbitration A process in which a third partyneutral, after reviewing evidence andlistening to arguments from both sides,issues a decision to settle the case.Arbitration is often used in commercial andlabour/management disputes.

B

Baseline data Information gathered prior toproject development that demonstrates themagnitude of the development problem, theextent to which it exists in your communityand, over time, will enable you to measureyour progress in addressing the problem.Baseline data can indicate the incidence of a problem in the community (e.g. thecommunity has an adolescent pregnancyrate of 15.8 pregnancies for every thousandteenage girls). It can reveal the prevalenceof a problem (45% of teens in the communityreport that they did not use contraceptivesduring the last time they had sex). It can also measure community attitudes towards a problem (65% of local people do notconsider teen pregnancy to be an importantproblem for the community).

C

Capacity building A managed process of (i) skill upgrading, both general and specific, (ii) procedural improvement and (iii) organizational strengthening. Capacitybuilding aims to develop the ability ofindividuals, groups, institutions andorganizations to identify and solvedevelopment problems.

Civil society The network of associations,social norms and relationships that existseparately from government or marketinstitutions. Civil society may include

religious organizations, foundations,professional associations, labour unions,academic institutions, media, pressuregroups and environmental groups. Civil society reflects social diversity. It may provide the intellectual, material and organizational basis for communityinteraction with the state and businesssectors.

Community A social group possessingshared beliefs and values, stablemembership and the expectation ofcontinued interaction. It may be definedgeographically, by political or resourceboundaries, or socially as a community ofindividuals with common interests.

Community-based organizations Groups ofindividuals within a village or group ofvillages or residential area with similarinterests, established to work together toachieve common objectives. Can refer toorganizations that provide care or services in the neighbourhood as well as initiatives by individual citizens and groups within the community.

Community development The process ofincreasing the strength and effectiveness of communities, improving people’s qualityof life, and enabling people to participatein decision making and to achieve greaterlong-term control over their lives.Community development aims to empowerand help communities to improve theirsocial and physical environments, increaseequity and social justice, overcome socialexclusion, build social capital and capacities,and involve communities in the strategic,assessment and decision-making processesthat influence their local conditions.


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Glossary continued

Community profile A picture of thecommunity that reflects the demographic,economic, human, social, visual and naturalresources, needs and assets of thecommunity.

Competency An attribute that contributes tosuccessful performance and achievement oforganizational goals. Competencies may bedefined organizationally or individually, andinclude knowledge, skills and abilities plusother characteristics such as values,motivation, legitimacy, initiative and control.

Conflict resolution The process by which theparticipants together with the assistance of a neutral person or persons systematicallyisolate disputed issues in order to developoptions, consider alternatives and reach aconsensual agreement that willaccommodate their needs.

Consultation A tool for managing two-waycommunications between project developersand stakeholders. Its goal is to improvedecision making, reduce risk and buildunderstanding by actively involvingindividuals, groups and organizations with a stake in the project. Their involvementincreases the project’s long-term viabilityand enhances its benefits to locally affectedpeople and other stakeholders. To bemeaningful, consultation should be carriedout in a culturally appropriate manner, withlocally appropriate time frames and in locallanguages.

E

Empowerment Increasing poor people’sability to participate in decision making – tonegotiate with, influence, control and holdaccountable the institutions that affect theirlives. In its broadest sense, empowerment is the expansion of freedom of choice andaction, and implies transferring decision-making responsibilities and operationalresources to project beneficiaries.

Evaluation Systematic investigation of theworth, value, merit or quality of an object.Assessment of the operation or theoutcomes of a program or policy, comparedto a set of explicit or implicit standards, as ameans of contributing to its improvement.Criteria for evaluation may includerelevance, effectiveness, efficiency, impactand sustainability.

F

Focus group A group, selected for itsrelevance to a particular area ofinvestigation, that is engaged by a trainedfacilitator in discussions designed to shareinsights, ideas and observations on the areaof concern. Focus groups are typically open-ended, discursive and used to gain adeeper understanding of respondents’attitudes and opinions. A key feature of focus groups is that participants are able tointeract with, and react to, each other – thegroup dynamic often provides richer insightsand data than would have been achieved byinterviewing the participants individually.


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Glossary continued

G

Gender The socially constructed rolesascribed to males and females and resultingsocially determined relations. Gender rolesare learned, change over time and varywidely within and across cultures. Gender isa key variable in social analysis. It isimportant to understand the social,economic, political and cultural forces thatdetermine how men and women participatein, benefit from and control projectresources and activities. Social analysisshould highlight gender-specific constraints,risks and opportunities.

I

Impact Any effect, whether anticipated orunanticipated, positive or negative, broughtabout by a development intervention.

Indicator Quantitative or qualitative factor orvariable that provides a simple and reliablemeans to measure achievement, to reflectthe changes connected to an intervention or to help assess the performance of adevelopment actor.

Input The activities and resources allocatedto the implementation of communitydevelopment projects.

Institutional analysis Analyses theinstitutional capacities and relationshipscritical to operational success, and identifiesgaps or weaknesses in institutionalresources, performance or sustainability.Over time, an institution may be consideredsustainable if it can secure necessarysupport, provide continuing developmentactivities and services that are valued by itsstakeholders and maintain its functions withdecreasing levels of external support.

L

Logical framework A simplified chain ofrelationships that demonstrates the logicand assumptions underlying a program orintervention and how it intends to achieve itsexpected results. It states the logic of theprogram, identifies the assumptions onwhich it is based and outlines the logicalconnections between i) the activitiesundertaken, ii) the outputs to be produced,iii) the immediate or short-term outcomesthat are expected and iv) the ultimate orlong-term impacts the program is designedto achieve.

M

Mediation A voluntary and confidentialprocess in which a neutral third partyfacilitator helps people discuss difficultissues and negotiate an agreement. Basic steps in the process include gatheringinformation, framing the issues, developingoptions, negotiating and formalizingagreements. Parties in mediation createtheir own solutions and the mediator doesnot have any decision-making power overthe outcome.

Mediation-arbitration A hybrid thatcombines both of the above processes. Prior to the session, the disputing partiesagree to try mediation first, but give theneutral third party the authority to make a decision if mediation is not successful.

Mission statement A brief statementoutlining the specific task(s) for which a group has charged itself.


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Glossary continued

Monitoring The ongoing, methodicalcollection and analysis of data on development activities that provideprogram managers and stakeholders with early indications of progress andachievement of goals. Monitoring can be said to be the measurement of outputs and is undertaken more frequently thanevaluation and is often done by peopleinvolved in the community developmentprograms.

N

Negotiation A discussion among two or more people with the goal of reaching anagreement.

Non-government organizations (NGOs)Private organizations that pursue activitiesto relieve suffering, promote the interests ofthe poor, protect the environment, providebasic social services or undertakecommunity development. NGOs operateindependently of government, are oftenvalue based and guided by the principles ofaltruism and voluntarism. Broadly, NGOsmay be i) operational, when their primarypurpose is the design and implementation of development-related projects, or ii) advocacy focused, when their primarypurpose is to defend or promote a specificcause or seek to influence developmentpolicies and practices.

O

Objective An expression of an effect that aprogram is expected to achieve if completedsuccessfully and according to plan.Objectives are often viewed as a hierarchy,beginning with strategic goals, purposes,outputs and activities.

Organization Formal structures withdesignated roles and purposes.Organizations and individuals pursue theirinterests within an institutional structuredefined by formal rules (constitutions, laws,regulations, contracts) and informal rules(ethics, trust, religious precepts and otherimplicit codes of conduct). Organizations, in turn, have internal rules to deal withpersonnel, budgets, procurement andreporting procedures, which constrain thebehaviour of their members.

Outcome The objectives of communitydevelopment – the longer-term resultsaimed for at the end of a program.

Output The direct results of an intervention,a “deliverable” for which management isresponsible.

P

Participation A process through whichstakeholders influence and share controlover development initiatives and thedecisions and resources that affect them.Participation can improve the quality,effectiveness and sustainability of projectsand strengthen ownership and commitmentof government and stakeholders.


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Glossary continued

Participatory Rural Appraisal (PRA) A rangeof participatory approaches and methodsthat emphasize local knowledge and enablelocal people to conduct their own appraisal,analysis and planning. PRA uses groupanimation and exercises to facilitateinformation sharing, analysis and actionamong stakeholders. Although originallydeveloped for use in rural areas, it can beemployed successfully in a variety ofsettings, enabling development facilitators,government officials and local people towork together to identify and address localdevelopment needs.

Partner The individual and/or organizationwith which one collaborates to achievemutually agreed-upon objectives.

Partnership Negotiated relationships thatexist between two or more entities that havevoluntarily entered into a legal or moralcontract.

Primary data Qualitative or quantitative data that are newly collected to address aspecific research objective. Primary datamay include original information gatheredfrom surveys, focus groups, independentobservations and test results.

Program management Managementconcerned directly with the production anddelivery of services. Program managementskills and procedures include project cyclemanagement, program formulation,communications, financial and humanresource management, and technicalreviews and evaluation.

Q

Qualitative surveys Research that is moresubjective than quantitative research anduses very different methods of collectinginformation, mainly a relatively smallnumber of individual, in-depth interviewsand focus groups. Qualitative surveys areexploratory and open-ended, and allowrespondents greater freedom to influencethe research scope and design. Participantsare asked to respond to general questions,and the interviewer or group moderatorprobes and explores their responses toidentify and define their perceptions,opinions and feelings about the topic or idea being discussed. The quality of thefindings from qualitative research is directlydependent upon the skill, experience andsensitivity of the interviewer or groupmoderator. Qualitative research is often less costly than quantitative surveys and isextremely effective in understanding whypeople hold particular views, and howthey make judgements. While qualitativeresearch does not produce results that arestatistically reliable, its findings can, if participants are broadly representative, be strongly indicative of the population as a whole.

Quality of life People’s overall well-being.Quality of life is inherently subjective anddifficult to measure (whether for anindividual, group or nation) because itincludes both material well-being and suchintangible components as the amenity andquality of the environment, national security,personal safety and political and economicfreedoms.


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Glossary continued

Quantitative surveys Research that isconcerned with measurement of objective,quantitative and statistically valid data.Simply put, it is about numbers. In quantitativesurveys a relatively large and scientificallycalculated sample of people from apopulation is asked a set of closed questionsto determine the frequency and percentageof their responses. Quantitative surveys canbe used with reasonable levels of confidenceto assess community attitudes across largepopulations. Weaknesses of quantitativesurveys, however, are that they are relativelyexpensive and questions are strictly ordered,determined by the questioner and are closed– respondents cannot introduce topics intothe survey and cannot expand on or qualifytheir responses.

R

Ranking An exercise in which respondentsidentify what is most important to them (e.g. in identifying development needs,communities may rank livelihood as moreimmediately important than education).Ranking allows facilitators to understandlocal preferences, and to understand howvalues differ among different groups.Identifying local preferences and priorities iscritical to choosing appropriate and effectivedevelopment strategies and interventions.

S

Secondary data Qualitative or quantitativeinformation that has already beenassembled, having been collected for someother purpose. Sources may include censusreports, journal articles, technical oracademic studies and other publications.

Semi-structured interviews Interviews thatare partially structured by a flexibleinterview guide with a limited number ofpreset questions. The guide ensures that the interview remains focused on the issueat hand, while providing enough flexibility to allow participants to introduce anddiscuss topics that are relevant to them.Semi-structured interviews are a deliberatedeparture from survey-type interviews withlengthy, predetermined questionnaires.

Stakeholder analysis A process that seeks to identify and describe the interests andrelationships of all the stakeholders in agiven project. It is a necessary preconditionto participatory planning and projectmanagement.

Stakeholders Persons or groups who areaffected by or can affect the outcome of aproject. Stakeholders may be individuals,interest groups, government agencies orcorporate organizations. They may includepoliticians, commercial and industrialenterprises, labour unions, academics,religious groups, national social andenvironmental groups, public sectoragencies and the media.

Standard of living The level of well-being ofan individual, group or the population, asmeasured by the level of income or by thequantity of various goods and servicesconsumed.

Strategic plan An outline of the program ororganization’s long-term goals, and of thespecific strategies, approaches,methodologies and resources through whichthose goals will be achieved.


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Glossarycontinued

Strategic planning A process by which afuture vision is developed for anorganization, taking into account its politicaland legal circumstances, its strengths andweaknesses, and the threats andopportunities facing it. Strategic planningarticulates the organization’s sense ofmission and maps out future directions to betaken, given the organization’s current stateand resources.

Strategy A planned course of actionundertaken with the aim of achieving thegoals and objectives of an organization.Strategy may be developed for any aspect ofan organization’s activities or, at thebroadest level, for the organization itself.

Survey The collection of data from apopulation for the purpose of analysis of aparticular issue. In a sample survey data iscollected from a representative sample ofthe population.

Sustainability The ability of an organizationto secure and manage sufficient resourcesto enable it to fulfil its mission effectivelyand consistently over time without excessivedependence on a single funding source.Sustainable organizations have i) the abilityto scan the environment, adapt to it andseize opportunities it offers, ii) strongleadership and management, iii) the abilityto attract and retain qualified staff, iv) theability to provide relevant benefits andservices for maximum impact incommunities, v) the skills to demonstrateand communicate this impact to leveragefurther resources, vi) community supportand involvement and vii) commitment tobuilding sustainable (not dependent)communities.

Sustainability investment A sustainabilityinvestment is an initiative, program, projector any other intervention that responds tothe needs of local stakeholders, as well as tothe company’s business objectives and risks.In practice, sustainability investments mayinclude skills development, local sourcing,health, agricultural assistance, waterinfrastructure, etc.

Sustainable development Defined as:“Development that meets the needs of thepresent without compromising the ability offuture generations to meet their own needs”.Progress measured in social or economicterms is accomplished without irreversibleenvironmental degradation or socialdisruption. The benefits should not onlyoutweigh the social and ecological costs butshould also be founded on a rational use ofhuman and natural resources that can bemaintained indefinitely.

T

Triangulation A process of using multipledata sources, data collection methods,evaluators or theories to study an issue from different perspectives, validateresearch findings, help eliminate bias anddetect errors or anomalies in results.


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Glossary continued

V

Vision A description of the large-scaledevelopment changes (economic, political,social or environmental) to which theprogram hopes to contribute.

Vulnerability Condition characterized byhigher risk and reduced ability to cope withshock or negative impacts. It may be basedon socio-economic condition, gender, age,disability, ethnicity or other criteria thatinfluence people’s ability to access resourcesand development opportunities. Vulnerabilityis always specific to the particular locationand time. Development initiatives shouldassess vulnerability, and target interventionsto particularly vulnerable and marginalmembers of the community.


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Referenced sources

General reading – community development

DFID. 2003. Tools for Development: A Handbook for Those Engaged in Development Activity.http://webarchive.nationalarchives.gov.uk andwww.dfid.gov.uk/Documents/publications/toolsfordevelopment.pdf

IFC. 2001. Investing in People: Sustaining Communities Through Improved Business Practice. A Community Development Resource Guide for Companies. Washington DC.www.ifc.org/ifcext/sustainability.nsf/content/publications_resettlement

Zandvliet, L. and Anderson, M. B. 2009. Getting it Right: Making Corporate-Community Relations Work.Greenleaf Publishing, Sheffield.

Artisanal and small-scale mining

ICMM, CASM and IFC. 2010. Working Together: How Large-scale Mining Can Engage with Artisanal and Small-scale Miners.Pilot Version, London. www.icmm.com/page/17638/new-publication-on-engaging-with-artisanal-and-small-scale-miners

Assessments

African Network on Participatory Approaches. 2000.Village Participation in Rural Development.Royal Tropical Institute/World Bank, Washington DC.

AusAID. 2002. The Logical Framework Approach.www.who.int/ncd/vision2020_actionplan/documents/LFAguidelines.pdf

DFID. 2003. Tools for Development: A Handbook for Those Engaged in Development Activity.www.dfid.gov.uk/Documents/publications/toolsfordevelopment.pdf

Eldis. Livelihoods Connect: Sustainable Livelihoods Toolbox (web-based resources). Policy,institutions and processes.www.eldis.org/go/topics/dossiers/livelihoods-connect/tools

ICMM. 2010.Good Practice Guidance on Health Impact Assessment.www.icmm.com/hia

http://www.icmm.com/page/17638/new-publication-on-engaging-with-artisanal-and-small-scale-miners


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Referenced sourcescontinued

IFC. Financial Valuation Tool for Sustainability Investments. http://fvtool.com

IFC. 2009. Projects and People: A Handbook for Addressing Project-Induced In-Migration.Washington DC. www.ifc.org/ifcext/sustainability.nsf/content/publications_resettlement

IFC. 2007. Stakeholder Engagement: A Good Practice Handbook for Companies Doing Business inEmerging Markets. Washington DC.www.ifc.org/ifcext/sustainability.nsf/content/publications_resettlement

IFC. 2003. Good Practice Note: Addressing the Social Dimensions of Private Sector Projects.Washington DC. www.ifc.org/ifcext/sustainability.nsf/content/publications_resettlement

International Association for Impact Assessment (IAIA), IAIA website. 2012.www.iaia.org/default.aspx

Kumar, S. 2002. Methods for Community Participation: A Complete Guide for Practitioners. ITDG, London.

Minerals Council of Australia. 2010.Socioeconomic Benefits and Impacts: An Assessment and Planning Toolkit. Canberra.www.minerals.org.au/file_upload/files/resources/SEIBA-Toolkit-draft23August.pdf

National Environment Secretariat, Government of Kenya; Clark University; Egerton University; and the Center for International Development and Environment of theWorld Resources Institute. 1991. Participatory Rural Appraisal Handbook: Conducting PRAs in Kenya.

Oduor-Naoh, E. et al. 1992.Implementing PRA: A Handbook to Facilitate Participatory Rural Appraisal.Program for International Development, Clark University, Worcester, MA.

Rietbergen-McCracken, J. and Narayan, D. (compilers). 1998. Participation and Social Assessment: Tools and Techniques.International Bank for Reconstruction and Development/World Bank, Washington DC.

SIAhub, Social Impact Assessment website. 2012. www.socialimpactassessment.com/resources-references.asp


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World Bank. 2003.Social Analysis Sourcebook: Incorporating Social Dimensions into Bank-Supported Operations.Washington DC.http://web.worldbank.org/WBSITE/EXTERNAL/TOPICS/EXTSOCIALDEV/0,,contentMDK:21177387~pagePK:64168445~piPK:64168309~theSitePK:3177395,00.html

World Bank. 1998. Participation and Social Assessment: Tools and Techniques. Washington DC. http://info.worldbank.org/etools/docs/library/238582/toolkit.pdf

World Bank. 1996. The World Bank Participation Sourcebook, Appendix 1: Methods and tools for social analysis.Washington DC.

Many reference works about PRA methods can be found at:www.clarku.edu/departments/idce/publications.shtml

Case studies

BHP Billiton www.bhpbilliton.com/home/aboutus/sustainability/Pages/Sustainability-in-action.aspx

Newmontwww.beyondthemine.com

Rio Tinto (gender case study) www.riotinto.com/rio-apps/riotinto_operationmap/pdf/Case_study_3_%20Rio_Tinto_in_Mongolia.pdf

Valewww.vale.com

Xstratawww.xstrata.com/sustainability/casestudies

Community development and conflict

Gossen, R. et al. 2002. A Business Guide to Conflict Impact Assessment and Risk Management.http://commdev.org/content/document/detail/1433/

ICMM, ICRC, IFC, IPIECA. 2011. Voluntary Principles on Security and Human Rights: Implementation Guidance Tools.www.voluntaryprinciples.org/resources


http://www.riotinto.com/rio-apps/riotinto_operationmap/pdf/Case_study_3_%20Rio_Tinto_in_Mongolia.pdf


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Institute for Human Rights and Business. 2011. From Red to Green Flags.www.ihrb.org/news/2011/from_red_to_green_flags.html

International Alert. 2008. Red Flags: Liability Risks for Companies Operating in High-Risk Zones.www.redflags.info

International Alert. 2005. Conflict-Sensitive Business Practice: Guidance for Extractive Industries.www.international-alert.org/resources/publications/conflict-sensitive-business-practice-guidance-extractive-industries

McPhail, K. Presentation, Responsible Business and Investment in Conflict-Affected Areas:Global Compact Network Sudan. Strategic Community Investment: A Corporate Perspective.www.unglobalcompact.org/docs/issues_doc/Peace_and_Business/Presentations/McPhail.pdf

World Bank. 2008. Clarifying Challenges in Conflict and Post-Conflict Settings.Social Development How to Series.http://go.worldbank.org/414DCE1FE0

World Bank, Social Development Department. 2006. Community-Driven Development in the Context of Conflict-Affected Countries: Challengesand Opportunities.http://siteresources.worldbank.org/INTCDD/Resources/CDD_and_Conflict.pdf

Grievance mechanisms

CAO, World Bank Group. 2008. A Guide to Designing and Implementing Grievance Mechanisms for Development Projects.http://commdev.org/content/document/detail/2269/

Centre for Social Responsibility in Mining. 2009. Mining Industry Perspectives on Handling Community Grievances: Summary and Analysis ofIndustry Interviews. University of Queensland.www.csrm.uq.edu.au/docs/Mining%20industry%20perspectives%20on%20handling%20community%20grievances.pdf

Harvard University, Corporate Social Responsibility Initiative. 2008. Rights-Compatible Grievance Mechanisms: A Guidance Tool for Companies and TheirStakeholders.www.reports-and-materials.org/Grievance-mechanisms-principles-Jan-2008.pdf

http://www.international-alert.org/resources/publications/conflict-sensitive-business-practice-guidance-extractive-industries

http://www.csrm.uq.edu.au/docs/Mining%20industry%20perspectives%20on%20handling%20community%20grievances.pdf


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ICMM. 2009. Human Rights in the Mining and Metals Industry: Handling and Resolving Local LevelConcerns and Grievances. Pilot Testing Version. www.icmm.com/page/15816/human-rights-in-the-mining-metals-sector-handling-and-resolving-local-level-concerns-grievances

IFC. 2009. Addressing Grievances from Project-Affected Communities.Good Practice Note, Washington DC.www.ifc.org/ifcext/sustainability.nsf/content/publications_resettlement

Human rights and community development

Aim for Human Rights. 2009. Guide to Corporate Human Rights Impact Assessment Tools.www.humanrightsimpact.org/themes/business-centre/hria-in-business/guide-to-corporate-human-rights-impact-assessment-tools/

ICMM. 2009. Human Rights in the Mining and Metals Industry: Overview, Management Approach and Issues.www.icmm.com/page/14855/icmm-presents-new-guidance-note-on-mining-and-human-rights

IFC. 2010. Guide to Human Rights Impact Assessment and Management. Washington DC. www.ifc.org/ifcext/sustainability.nsf/Content/Publications_Handbook_HRIA

Ruggie, J. 2008. Protect, Respect and Remedy: A Framework for Business and Human Rights, Report of theSpecial Representative of the Secretary-General on the Issue of Human Rights andTransnational Corporations and Other Business Enterprises.www.unglobalcompact.org/docs/issues_doc/human_rights/Human_Rights_Working_Group/29Apr08_7_Report_of_SRSG_to_HRC.pdf

United Nations Office of the High Commissioner for Human Rights. 2011. The Guiding Principles on Business and Human Rights: Implementing the United Nations“Protect, Respect and Remedy” Framework. Geneva. http://www.ohchr.org/Documents/Issues/Business/A-HRC-17-31_AEV.pdf


http://www.unglobalcompact.org/docs/issues_doc/human_rights/Human_Rights_Working_Group/29Apr08_7_Report_of_SRSG_to_HRC.pdf


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Indigenous Peoples

Australian Government Department of Industry, Tourism and Resources. 2007. Leading Practice Sustainable Development Program for the Mining Industry: Working withIndigenous Communities. Canberra. www.ret.gov.au/resources/Documents/LPSDP/LPSDP-IndigenousCommunitiesHandbook.pdf

Gibson, G. and O’Faircheallaigh, C. 2010. IBA Community Toolkit: Negotiation and Implementation of Impact and Benefit Agreements.www.ibacommunitytoolkit.ca

ICMM. 2010. Good Practice Guide: Indigenous Peoples and Mining.www.icmm.com/library/indigenouspeoplesguide

In-migration

IFC. 2009. Projects and People: A Handbook for Addressing Project-Induced In-Migration.http://commdev.org/section/topics/in_migration

International standards/voluntary initiatives

ICMMwww.icmm.com/our-work/sustainable-development-framework

IFC’s Performance Standards. 2012. Washington DC.http://www1.ifc.org/wps/wcm/connect/topics_ext_content/ifc_external_corporate_site/ifc+sustainability/sustainability+framework/sustainability+framework+-+2012/performance+standards+and+guidance+notes+2012/performance+standards+-+2012

International Organization for Standardization (ISO). 2010. ISO 26000 Social Responsibility Standard. Geneva.www.iso.org/iso/iso_catalogue/management_standards/social_responsibility.htm

Local procurement

Enterprise Facilitation on the Sirolli Institute website.www.sirolli.com

IFC. 2011. A Guide to Getting Started in Local Procurement. Washington DC. www.commdev.org/content/document/detail/2774/

http://www1.ifc.org/wps/wcm/connect/topics_ext_content/ifc_external_corporate_site/ifc+sustainability/sustainability+framework/sustainability+framework+-+2012/performance+standards+and+guidance+notes+2012/performance+standards+-+2012


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Various Oil, Gas, and Mining Sustainable Community Development Fund resources on localprocurement are available at: http://commdev.org/section/tools/local_supplier_devp

Mine closure

ICMM. 2008. Planning for Integrated Mine Closure: Toolkit.www.icmm.com/page/9568/planning-for-integrated-mine-closure-toolkit

Mining and gender

Asian Development Bank. 2006.Gender Checklist: Agriculture.www.adb.org/Documents/Manuals/Gender_Checklists/Agriculture/default.asp?p=genchck

Danish Institute for Human Rights. 2006. Human Rights Compliance Assessment (HRCA) Quick Check.https://hrca2.humanrightsbusiness.org/docs/file/HRCA%20Quick%20Check_English.pdf

Dowling, S. 2009. Gender Impact Assessment: An Introductory Guide.Australian National University.

Dowling, S. 2008. Gender Analysis: An Introductory Guide.Australian National University.

March, C., Smyth, I. and Mukhopadhyay, M. 1999. A Guide to Gender-Analysis Frameworks. Oxfam GB, Oxford.

Oxfam Australia. 2009. Guide to gender impact assessment. Melbourne.

Rio Tinto. 2009. Why Gender Matters. Australia.www.riotinto.com/documents/ReportsPublications/Rio_Tinto_gender_guide.pdf

World Bank. 2009. Mainstreaming Gender into Extractive Industries Projects: Guidance Note for Task TeamLeaders. Extractive Industries and Development Series, 9.http://siteresources.worldbank.org/EXTOGMC/Resources/eifd9_gender_guidance.pdf


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Partnerships

ICMM. 2011. Mining: Partnerships for Development Toolkit.www.icmm.com/page/61160/icmm-launches-mining-partnerships-for-development-toolkit

ICMM. 2010. Making Mining Count in Peru, Ghana and Tanzania: Case Studies. Three separate reports.www.icmm.com/mpd/partnerships

ICMM. 2010. Mapping In-Country Partnerships.www.icmm.com/library/mapping

ODI/Business Partners for Development. 2001.Training Modules: Tri-Sector Partnerships for Managing Social Issues in the ExtractiveIndustries, Working Paper 7.www.odi.org.uk/work/projects/98-02-bpd-natural-resources-cluster/html/pub_working.html#

World Bank, Business Partners for Development.www.bpdweb.com/overview.htm

Resettlement

Asian Development Bank. 1998. Handbook on Resettlement: A Guide to Good Practice. Manila.www.adb.org/documents/handbook-resettlement-guide-good-practice

European Bank for Reconstruction and Development’s Performance Requirement 5: LandAcquisition, Involuntary Resettlement and Economic Displacement.www.ebrd.com/downloads/about/sustainability/ESP_PR05_Eng.pdf

IFC. 2002. Handbook for Preparing a Resettlement Action Plan. Washington DC.www.ifc.org/ifcext/sustainability.nsf/content/publications_resettlement


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Stakeholder engagement

IFC. 2007. Stakeholder Engagement: A Good Practice Handbook for Companies Doing Business inEmerging Markets. Washington DC.www.ifc.org/ifcext/sustainability.nsf/content/publications_resettlement

International Business Leaders Forum/World Business Council for Sustainable Development. A Business Guide to Development Actors.www.wbcsd.org/pages/edocument/edocumentdetails.aspx?id=102&nosearchcontextkey=true

Strategic community investment

IFC. 2010. Strategic Community Investment: A Good Practice Handbook for Companies Doing Businessin Emerging Markets. Washington DC.www.ifc.org/ifcext/sustainability.nsf/content/publications_resettlement

World Bank. 2011. Sharing Mining Benefits in Developing Countries: The Experience with Foundations, Trustsand Funds, Extractive Industries for Development Series. Washington DC.http://web.worldbank.org/WBSITE/EXTERNAL/TOPICS/EXTOGMC/0,,contentMDK:22950635~pagePK:210058~piPK:210062~theSitePK:336930,00.html



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Acknowledgements

Original project partnersICMM is extremely grateful to the World BankGroup’s Oil, Gas and Mining Policy Divisionfor partnering with ICMM on the developmentof the Community Development Toolkit in2005. The original funding support fromESMAP is also gratefully acknowledged. In addition, ICMM would like to sincerelythank the following individuals from theWorld Bank’s Oil, Gas and MiningSustainable Community Development Fund(IFC/CommDev) for their constructivecomments on the second draft of this versionof the toolkit: Maria Arsenova, Arjun Bhalla,Jelena Lukiç, Veronica Nyhan Jones andDafna Tapiero.

External contributorsA draft of the toolkit was also circulated to a number of individuals and organizationswith known expertise in this area. ICMM isindebted to those that took the time andeffort to provide comments. Please notethat their involvement in this way does notimply any endorsement for the document or its contents.

Cristian Parra, Bernadetta Devi and Nina Collins (Centre for Social Responsibility inMining, University of Queensland)Jo Render (ERM)Diana Klein (International Alert)Angus Wong and Gary MacDonald (Monkey Forest Consulting)Susan Joyce (On Common Ground)Serena Lillywhite (Oxfam Australia)Kirk Herbertson (World Resources Institute)Luc Zandvliet (Triple R Alliance)

ICMM working groupThe development of the toolkit was overseenby an ICMM working group chaired by Liesel Filgueiras (Vale). ICMM is grateful tothe members of the working group for theirengagement on iterative drafts that resultedin the current document.

The working group comprised:

Jon Samuel (Anglo American)Thando Njoko (AngloGold Ashanti)Peter Sinclair (Barrick)Melinda Buckland (BHP Billiton)Stan Batey (Freeport-McMoRan)Shari Knoerzer (Freeport-McMoRan)Dina Aloi (Goldcorp)Rinaldo Mancin (IBRAM)Michiharu Yamamoto (JX Nippon)Marilie Liebenberg (Lonmin)Barnard Mokwena (Lonmin)Elize Swart (Lonmin)Pierre Gratton (MAC)Melanie Stutsel (MCA)Andrew Hocking (MMG)Ross Gallinger (PDAC)Eric Christensen (Rio Tinto)Bruce Harvey (Rio Tinto)Richard Labo (Rio Tinto)Marcelle Shoop (Rio Tinto)Gillian Davidson (Teck)Dave Parker (Teck)Juliana Ferreira (Vale)Viviane Vanni Leffingwell (Vale)Patricia Mantovani (Vale)Leonardo Mercante (Vale)Claire Divver (Xstrata).

ICMM teamClaire White and Aidan Davy led the process to develop this toolkit on behalf of the ICMMSecretariat.

Consultant supportSpecial thanks go to Catherine Macdonald(Social Sustainability Services Services) whowrote the 2005 version of the toolkit andrestructured and updated the content for thisversion. ICMM is also very grateful to ElizabethWall (Shared Resources) who provided thoroughedits on the entire toolkit and enhanced anumber of the tools with helpful contentadditions. ICMM is appreciative of the workDave Prescott did in drafting a number of thecase studies that are included in this toolkit.

DisclaimerThis publication contains general guidance onlyand should not be relied upon as a substitute forappropriate technical expertise. While reasonableprecautions have been taken to verify theinformation contained in this publication as at thedate of publication, it is being distributed withoutwarranty of any kind, either express or implied.

In no event shall the International Council onMining and Metals (“ICMM”) be liable fordamages or losses of any kind, however arising,from the use of, or reliance on this document. The responsibility for the interpretation and useof this publication lies with the user (who shouldnot assume that it is error-free or that it will besuitable for the user's purpose) and ICMMassumes no responsibility whatsoever for errorsor omissions in this publication or in other sourcematerials which are referenced by this publication.

The views expressed do not necessarily representthe decisions or the stated policy of ICMM. This publication has been developed to supportimplementation of ICMM commitments, howeverthe user should note that this publication doesnot constitute a position statement or othermandatory commitment which members of ICMM are obliged to adopt under the ICMMSustainable Development Framework.

We are not responsible for, and make norepresentation on, the content or reliability oflinked websites, and linking should not be takenas endorsement of any kind. We have no controlover the availability of linked pages and accept no responsibility for them.

The designations employed and the presentationof the material in this publication do not imply the expression of any opinion whatsoever on thepart of ICMM concerning the legal status of anycountry, territory, city or area or of its authorities,or concerning delimitation of its frontiers orboundaries. In addition, the mention of specificentities, individuals, source materials, tradenames or commercial processes in this publicationdoes not constitute endorsement by ICMM.

This disclaimer should be construed in accordancewith the laws of England.

Publication details

2012-7

Published by the International Council on Miningand Metals (ICMM), London, UK.

© 2012 International Council on Mining andMetals. The ICMM logo is a trade mark of theInternational Council on Mining and Metals.Registered in the United Kingdom, Australia and Japan.

Reproduction of this publication for educational or other non-commercial purposes is authorizedwithout prior written permission from thecopyright holders provided the source is fullyacknowledged. Reproduction of this publicationfor resale or other commercial purposes isprohibited without prior written permission of thecopyright holders.

ISBN: 978-0-9559983-8-6

Available from: ICMM, www.icmm.com,[email protected]

Design: Duo Design Limited

This toolkit is printed on Satimat Silk. The paper stock is manufactured at a mill that is ISO 9001,ISO 14001 and is FSC certified. It contains 15%post-consumer recycled fibre and elementalchlorine free (ECF) fibre sourced from well-managed forests.

ICMM35/38 Portman SquareLondon W1H 6LRUnited Kingdom

Phone: +44 (0) 20 7467 5070Fax: +44 (0) 20 7467 5071Email: [email protected]

www.icmm.com

ICMMThe International Council on Mining andMetals (ICMM) was established in 2001to improve sustainable developmentperformance in the mining and metalsindustry. Today, it brings together manyof the world’s largest mining and metalscompanies as well as national andregional mining associations and globalcommodity associations. Our vision isone of leading companies workingtogether and with others to strengthenthe contribution of mining, minerals andmetals to sustainable development.

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