Date post: | 13-Feb-2017 |
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Value of a Social License to Operate
Sustainable Development through Mining
Dr Cathryn MacCallum
Santiago, Chile
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IntroductionSocial license and sustainable development
• Understanding• Achieving • Measuring
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Global Sustainability Challenge
aspirations and demands of people’s expectations and needs against the capacity of natural resources
upon which they/we depend
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Sustainable Development and Poverty Reduction
Sustainable Livelihoods Framework
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International Development Agendas
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Corporate Social Responsibility to Social License
misinformed
dependency
substitute
conflict
philanthropy
expectations
RI
SK
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Redefining a Social License to Operate
Social risk to operations
• Pre-existing poverty and unsustainable livelihoods
• Shift from subsistence to cash based economy
• Political and community conflicts
Social license to operate
• Facilitation of critical dialogue
• Understanding poverty contexts
• Engagement in responsible and culturally appropriate practices
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Interrelationships and Interdependence
Host communities
Mining company
Regulatory bodies
Global context
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Community Profiling
Poverty drivers should inform social obligations
Put people and what they value at the centre rather than what they want or need
Poverty is complex and multidimensional
Understanding local context and perceptions is the first step in effective relationships
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Quantifying a SLO
• How does a company know if they have achieved a SLO or not ?
• What can they do to improve or maintain it ?
• How and what are the cost implications?
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Measuring an SLO
• Understand the complexities and multi-dimensions of the poverty context;
• Tackle vulnerability, promote resilience, mitigate risk• Enhance security, social cohesion and asset valuation
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Social License and Sustainable Development
“Development is, ultimately, the
progress of human freedom and
capability to lead the kind of lives
that people have reason to value.”
(Sen 2013)
•Start with the assets in a community rather than the needs of the community;
•Enable investigation of livelihood dynamics in a given geography and historical context;
•Place the interactions of the different capital assets within a broader policy environment;
•Create opportunities to build on what is already happening and on what the host community values
•Emphasize the importance of seeing land as just one among several assets/ capitals required to make a living.
(MacCallum 2014)
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Conclusions- Three take away messages
1. People attribute more value to what they may lose than what they may receive.
2. Mining has a legitimate role in the SDG framework and can utilise this to achieve and maintain a SLO;
3. The SRK SLO Index can assist a mining company to identify the causal factors of risks and opportunities and in turn enable effective mitigation and maximization.
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