beyond beads 'n trinkets: wayne dunn,
TRANSCRIPT
THE MINING INDUSTRY IS UNDER
growing pressure to demonstrate that it is
creating local social and developmental val-
ue in addition to shareholder value. Many
companies have responded with innovative
and successful Corporate Social Responsi-
bility (CSR) programs, helping communi-
ties and countries to address poverty allevi-
ation, HIV/AIDS and other socio-economic
priorities. Many other companies have yet
to embrace CSR and, if they are doing any-
thing, have more of a beads-and-trinkets ap-
proach that throws money at social problems,
often destroying rather than creating value.
COMMUNITY CONSULTATIONIt is important. Do it and do it well. But
don’t stop there. Community consultation
will not secure your social licence. Build on
it with the strategies below and you have a
good chance of succeeding.
FOCUS ON VALUE CREATIONCSR needs to focus on value creation. Sus-
tainable CSR creates value in two forms:
developmental value for local communi-
ties, and financial value for shareholders.
Every CSR activity should be vetted
against this value duality. If it does not
create both stakeholder and shareholder
value, it isn’t CSR. That doesn’t mean it
shouldn’t be done, but recognize that it isn’t
really CSR; it is likely just a handout.
COMMUNITY TRANSFORMATIONEffective CSR approaches use the devel-
opment and operation of a mine as a cata-
lyst to help a community transform, so it’s
left better off after mine closure. The de-
velopment and operation of a mine creates
opportunities for local businesses and work-
ers. As early as possible in the development
cycle of a project, consideration should be
given to how these opportunities can be
utilized to assist the community to move
along its chosen development path.
ACCEPT THAT THERE WILL BE NEGATIVE IMPACTSDeveloping and operating a mine will
cause families and communities some
dislocation. Often, issues such as domestic
violence, HIV/AIDS and breakdown
of traditional governance structures follow
mining development closely. Take steps to
mitigate this; find partners to help.
DEVELOP NON-TRADITIONAL PARTNERSHIPSThink about other organizations and insti-
tutions (i.e. Development Agencies, World
Bank, United Nations, Development
NGOs) that share your interest in support-
ing community economic and social devel-
opment. Meet with them and find out if
they are active where you are working.
BE SYSTEMATIC IN YOUR APPROACH Understand the development dynamics
and priorities of the country and region be-
fore you begin exploring partnerships and
collaboration. Know where your most
strategic intervention points are and devel-
op a partnership, then you can begin mak-
ing a real difference.
UNDERSTAND THE MARKET ANDLOCAL COMPETITIVE ADVANTAGEBefore investing in local economic devel-
opment initiatives, understand the market
and the natural advantages and disadvan-
tages (geographic, climatic, terrain, infra-
structure). You will be besieged by project
ideas in agriculture, tourism and small
business development. You need to have
information to be able to properly assess
them and systematically pick potential
winners. Conduct a detailed analysis of the
industry. Remember, without markets
it isn’t sustainable. Work with partners who
have technical knowledge and/or
financial capacity.
OWN THE INTERFACE WITH COMMUNITIES . . .. . . And don’t be overly dependent on
consultants. As much as possible, engage in
community consultation and research us-
ing your own staff. Advantages include:
• Better visibility for the company
• The community interface doesn’t
belong to an external company or
consultant whose interests might not
always align with yours
• It will be much more cost effective
• You will get your information
directly rather than filtered through
a consultant
• You can communicate your own
interests and priorities rather than have
them filtered through a third party
BRING THE INDUSTRY ALONG Poor CSR performance by others in the
national or regional industry will under-
mine your own activities. In many ways
the industry’s social licence to operate is
only as strong as its weakest performers.
UNDERSTAND AND SUPPORT LOCAL ORGANIZATIONAL CAPACITYRegardless of how good your CSR programs
are, how much money you invest or how
committed your CSR team is, you will have
only a minimal impact at best on the com-
munity’s sustainability if there isn’t
sufficient institutional/organizational capac-
ity at the local government and civil society
level. If you bring in an external organization
to assist with capacity development, make
sure that you are able to communicate your
overall plan to them.
BEGIN CLOSURE PLANNING NOWWe suggest developing a rolling plan that
looks at what the community could realis-
tically achieve by closure and how it could
economically sustain itself.
MANAGE TO QUANTIFY TARGETS“If you can’t measure it, you can’t manage
it.” Every CSR program should have quan-
tifiable targets and should be managed ac-
cordingly. This will require discipline and
innovation. Before launching any effort ask
yourself these questions:
• If this is successful, what will have
changed? How can we measure it?
• What else will have changed? How
can we measure it?
Set targets for how much change will oc-
cur over time and measure progress against
those targets. What is important is not that
you get the right indicator but that you go
through the discipline of identifying indi-
cators, using them, assessing them and
then, when necessary, doing it all again.
ENVIRONMENTBe a responsible environmental steward.
All of the above efforts will produce little
value if you don’t have a world-class envi-
ronmental program. Environmental issues
can quickly erode social licence and create
a negative legacy that will follow your com-
pany around the world for years.
Contact Wayne Dunn & Associates at: 250-743-7619; fax 250-743-7659; wayne@wayne
dunn.com; www.waynedunn.com.
by Wayne Dunn & Associates
w i n t e r 2 0 0 4 | MINING REVIEW 51
Suite 1600, Bentall IV1055 Dunsmuir StreetVancouver, British ColumbiaCanada V7X 1P1
Tel: 604.682.7082Fax: 604.682.7092www.placerdome.com
Placer Dome. Excellence in Mining.Placer Dome operates 17 mines in seven countries around the world. We are one of the world’s largest and most successful gold mining companies, and we are headquarteredhere in Vancouver.
From the early prospectors and developers who discoveredthe gold mines that formed Placer Dome’s foundation, to the13,000 people around the world who work for us today, allhave contributed to building our reputation for excellence infinding, building and operating mines.
Far Beyond
Beads& TrinketsCREATING VALUE WITH SUSTAINABILITY INVESTMENTS
Wayne Dunn (left) with a group of children from Rama Caye,a small island off the Miskito (Atlantic) coast of Nicaragua.
Women were the top graduates of the electronics trainingprogram at the award-winning Placer Dome Care Project inSouth Africa.
50 MINING REVIEW | w i n t e r 2 0 0 4 Photographs : cour tesy Wayne Dunn & Assoc ia tes
THE MINING INDUSTRY IS UNDER
growing pressure to demonstrate that it is
creating local social and developmental val-
ue in addition to shareholder value. Many
companies have responded with innovative
and successful Corporate Social Responsi-
bility (CSR) programs, helping communi-
ties and countries to address poverty allevi-
ation, HIV/AIDS and other socio-economic
priorities. Many other companies have yet
to embrace CSR and, if they are doing any-
thing, have more of a beads-and-trinkets ap-
proach that throws money at social problems,
often destroying rather than creating value.
COMMUNITY CONSULTATIONIt is important. Do it and do it well. But
don’t stop there. Community consultation
will not secure your social licence. Build on
it with the strategies below and you have a
good chance of succeeding.
FOCUS ON VALUE CREATIONCSR needs to focus on value creation. Sus-
tainable CSR creates value in two forms:
developmental value for local communi-
ties, and financial value for shareholders.
Every CSR activity should be vetted
against this value duality. If it does not
create both stakeholder and shareholder
value, it isn’t CSR. That doesn’t mean it
shouldn’t be done, but recognize that it isn’t
really CSR; it is likely just a handout.
COMMUNITY TRANSFORMATIONEffective CSR approaches use the devel-
opment and operation of a mine as a cata-
lyst to help a community transform, so it’s
left better off after mine closure. The de-
velopment and operation of a mine creates
opportunities for local businesses and work-
ers. As early as possible in the development
cycle of a project, consideration should be
given to how these opportunities can be
utilized to assist the community to move
along its chosen development path.
ACCEPT THAT THERE WILL BE NEGATIVE IMPACTSDeveloping and operating a mine will
cause families and communities some
dislocation. Often, issues such as domestic
violence, HIV/AIDS and breakdown
of traditional governance structures follow
mining development closely. Take steps to
mitigate this; find partners to help.
DEVELOP NON-TRADITIONAL PARTNERSHIPSThink about other organizations and insti-
tutions (i.e. Development Agencies, World
Bank, United Nations, Development
NGOs) that share your interest in support-
ing community economic and social devel-
opment. Meet with them and find out if
they are active where you are working.
BE SYSTEMATIC IN YOUR APPROACH Understand the development dynamics
and priorities of the country and region be-
fore you begin exploring partnerships and
collaboration. Know where your most
strategic intervention points are and devel-
op a partnership, then you can begin mak-
ing a real difference.
UNDERSTAND THE MARKET ANDLOCAL COMPETITIVE ADVANTAGEBefore investing in local economic devel-
opment initiatives, understand the market
and the natural advantages and disadvan-
tages (geographic, climatic, terrain, infra-
structure). You will be besieged by project
ideas in agriculture, tourism and small
business development. You need to have
information to be able to properly assess
them and systematically pick potential
winners. Conduct a detailed analysis of the
industry. Remember, without markets
it isn’t sustainable. Work with partners who
have technical knowledge and/or
financial capacity.
OWN THE INTERFACE WITH COMMUNITIES . . .. . . And don’t be overly dependent on
consultants. As much as possible, engage in
community consultation and research us-
ing your own staff. Advantages include:
• Better visibility for the company
• The community interface doesn’t
belong to an external company or
consultant whose interests might not
always align with yours
• It will be much more cost effective
• You will get your information
directly rather than filtered through
a consultant
• You can communicate your own
interests and priorities rather than have
them filtered through a third party
BRING THE INDUSTRY ALONG Poor CSR performance by others in the
national or regional industry will under-
mine your own activities. In many ways
the industry’s social licence to operate is
only as strong as its weakest performers.
UNDERSTAND AND SUPPORT LOCAL ORGANIZATIONAL CAPACITYRegardless of how good your CSR programs
are, how much money you invest or how
committed your CSR team is, you will have
only a minimal impact at best on the com-
munity’s sustainability if there isn’t
sufficient institutional/organizational capac-
ity at the local government and civil society
level. If you bring in an external organization
to assist with capacity development, make
sure that you are able to communicate your
overall plan to them.
BEGIN CLOSURE PLANNING NOWWe suggest developing a rolling plan that
looks at what the community could realis-
tically achieve by closure and how it could
economically sustain itself.
MANAGE TO QUANTIFY TARGETS“If you can’t measure it, you can’t manage
it.” Every CSR program should have quan-
tifiable targets and should be managed ac-
cordingly. This will require discipline and
innovation. Before launching any effort ask
yourself these questions:
• If this is successful, what will have
changed? How can we measure it?
• What else will have changed? How
can we measure it?
Set targets for how much change will oc-
cur over time and measure progress against
those targets. What is important is not that
you get the right indicator but that you go
through the discipline of identifying indi-
cators, using them, assessing them and
then, when necessary, doing it all again.
ENVIRONMENTBe a responsible environmental steward.
All of the above efforts will produce little
value if you don’t have a world-class envi-
ronmental program. Environmental issues
can quickly erode social licence and create
a negative legacy that will follow your com-
pany around the world for years.
Contact Wayne Dunn & Associates at: 250-743-7619; fax 250-743-7659; wayne@wayne
dunn.com; www.waynedunn.com.
by Wayne Dunn & Associates
w i n t e r 2 0 0 4 | MINING REVIEW 51
Suite 1600, Bentall IV1055 Dunsmuir StreetVancouver, British ColumbiaCanada V7X 1P1
Tel: 604.682.7082Fax: 604.682.7092www.placerdome.com
Placer Dome. Excellence in Mining.Placer Dome operates 17 mines in seven countries around the world. We are one of the world’s largest and most successful gold mining companies, and we are headquarteredhere in Vancouver.
From the early prospectors and developers who discoveredthe gold mines that formed Placer Dome’s foundation, to the13,000 people around the world who work for us today, allhave contributed to building our reputation for excellence infinding, building and operating mines.
Far Beyond
Beads& TrinketsCREATING VALUE WITH SUSTAINABILITY INVESTMENTS
Wayne Dunn (left) with a group of children from Rama Caye,a small island off the Miskito (Atlantic) coast of Nicaragua.
Women were the top graduates of the electronics trainingprogram at the award-winning Placer Dome Care Project inSouth Africa.
50 MINING REVIEW | w i n t e r 2 0 0 4 Photographs : cour tesy Wayne Dunn & Assoc ia tes