Deanna Kemp

Conflict translates environmental and social risk into business costs

Significance In this report we investigate company–community conflict and its role in the regulation of sustainability performance in the extractive industries. We estimate the cost of conflict to companies and identify conflict as an important means through which environmental and social risks are translated into business costs and decision-making. The paper clarifies the relationship between the environmental and social risk experienced—and interpreted—by local communities, and the business risks experienced—and interpreted—by corporations. Findings reveal that, at least for the case of the extractive industries, these two types of risk can co-constitute each other. The central importance of corporate strategy and behavior for sustainability science is highlighted. Sustainability science has grown as a field of inquiry, but has said little about the role of large-scale private sector actors in socio-ecological systems change. However, the shaping of global trends and transitions depends greatly on the private sector and its development impact. Market-based and command-and-control policy instruments have, along with corporate citizenship, been the predominant means for bringing sustainable development priorities into private sector decision-making. This research identifies conflict as a further means through which environmental and social risks are translated into business costs and decision making. Through in-depth interviews with finance, legal, and sustainability professionals in the extractive industries, and empirical case analysis of 50 projects worldwide, this research reports on the financial value at stake when conflict erupts with local communities. Over the past decade, high commodity prices have fueled the expansion of mining and hydrocarbon extraction. These developments profoundly transform environments, communities, and economies, and frequently generate social conflict. Our analysis shows that mining and hydrocarbon companies fail to factor in the full scale of the costs of conflict. For example, as a result of conflict, a major, world-class mining project with capital expenditure of between US

Human rights and impact assessment: clarifying the connections in practice

3 and US

Assets, Capitals, and Resources Frameworks for Corporate Community Development in Mining

5 billion was reported to suffer roughly US

Strategic resource or ideal source? Discourse, organizational change and CSR

20 million per week of delayed production in net present value terms. Clear analysis of the costs of conflict provides sustainability professionals with a strengthened basis to influence corporate decision making, particularly when linked to corporate values. Perverse outcomes of overemphasizing a cost analysis are also discussed.

Global perspectives on the state of resettlement practice in mining

Historically, impact assessment practice has not explicitly considered human rights. That human rights are relevant to business has been confirmed through the United Nations Human Rights Councils endorsement of the ‘Guiding Principles on Business and Human Rights’. Special Representative to the Secretary-General on business and human rights, Professor John Ruggie, advocated awareness of ‘rights-holders’ and ‘duty-bearers’ and a shift from third parties “naming and shaming” companies as a way of addressing human rights harms to companies also “knowing and showing” how they are taking responsibility for their human rights impacts and managing their human rights risks. Consideration of human rights should therefore be central to impact assessment for private sector projects, especially those affecting livelihoods, environment, health, safety and security, land and property, culture and gender dynamics. We provide an introduction to the business and human rights debate, discuss the relevance of human rights to the field of impact assessment, and examine a range of challenges associated with integrating the fields of human rights and social impact assessment.

Extractive Relations : Countervailing Power and the Global Mining Industry

The community mining space remains contested for a range of complex reasons. This inherently difficult discursive space is made most apparent in the context of international development where mining is often viewed as a potential lever in the effort to lift poorer nations out of poverty. In this article, the authors offer a critical review of community development (CD) approaches that are currently being applied by the mining sector. While the authors acknowledge recent positive developments in this domain, there remains a good deal of scope for improving the internal standing of, and the external influence over, CD practice in mining. Drawing on the contemporary CD literature, the authors assert “assets” as one possible heurism for enhancing this discursive space by highlighting the ways in which community and company representatives may be able to participate more actively in dialogical processes—both between and within company and community—where development discourse is not prefigured or biased against participating parties.

Conflict translates social and environmental risk into business costs

Purpose – The purpose of this paper is to examine how discourse used as a strategic resource can facilitate change in gender and corporate social responsibility (CSR) policy and practice in a global mining company.Design/methodology/approach – An existing model of discourse and organizational change was applied to illuminate the contours of a particular organizational change process. This paper draws on empirical data in the form of talk and text in oral and written form.Findings – The research highlights the challenge of finding the right balance between organizational receptivity and resistance, so that discursive boundaries around gender and CSR can be contested and challenged, but where new concepts and subjectivities are not rejected before they have an opportunity to generate shared meaning within the organization. Findings confirm that the involvement of a range of company personnel, particularly from the operational level, is important for generating knowledge and shared meaning, which can lead to...

Developing social impact assessment guidelines in a pre-existing policy context

Abstract This article presents the results of a global study on resettlement practice in the mining industry. We examine how international policy commitments are operationalised by the mining sector and how practitioners from across the institutional spectrum engage with planning and implementation efforts by the industry. Interviews were conducted with 52 senior practitioners from mining companies, consultancies, international finance institutions and international non-government organisations. Results confirm knowledge, resourcing, capacity and coordination gaps among each of the institutions. These findings give additional substance to emerging reports about the urgent need to improve performance in this area of practice. The article concludes with a call for further sector-specific research into mining and resettlement.

From the Cover: Conflict translates environmental and social risk into business costs

Extractive Relations explores the nature of industrial power and its role in shaping what we understand to be the global mining sector. The authors examine issues at the forefront of contemporary debates: corporate obligations in safeguarding the rights of people displaced by mining, the recognition of community rights and interests in supporting or opposing mining developments, the handling of non-judicial grievances and workability of corporate remedy systems, and the logic of community relations departments in navigating these issues inside and outside of the typical modern mining establishment. The authors develop a unique theoretical approach that highlights the different types and uses of power in these settings. This perspective is supported by the authors’ own sustained engagement with the mining sector over many years, drawing on cases from over twenty countries. The analysis of these issues from both ‘inside’ and ‘outside’ the sector is a key point of differentiation. For readers seeking to understand how mining companies interpret and interact with the communities and interests around their operations, this book provides invaluable insight and analysis.

Social licence and mining: A critical perspective

Significance In this report we investigate company–community conflict and its role in the regulation of sustainability performance in the extractive industries. We estimate the cost of conflict to companies and identify conflict as an important means through which environmental and social risks are translated into business costs and decision-making. The paper clarifies the relationship between the environmental and social risk experienced—and interpreted—by local communities, and the business risks experienced—and interpreted—by corporations. Findings reveal that, at least for the case of the extractive industries, these two types of risk can co-constitute each other. The central importance of corporate strategy and behavior for sustainability science is highlighted. Sustainability science has grown as a field of inquiry, but has said little about the role of large-scale private sector actors in socio-ecological systems change. However, the shaping of global trends and transitions depends greatly on the private sector and its development impact. Market-based and command-and-control policy instruments have, along with corporate citizenship, been the predominant means for bringing sustainable development priorities into private sector decision-making. This research identifies conflict as a further means through which environmental and social risks are translated into business costs and decision making. Through in-depth interviews with finance, legal, and sustainability professionals in the extractive industries, and empirical case analysis of 50 projects worldwide, this research reports on the financial value at stake when conflict erupts with local communities. Over the past decade, high commodity prices have fueled the expansion of mining and hydrocarbon extraction. These developments profoundly transform environments, communities, and economies, and frequently generate social conflict. Our analysis shows that mining and hydrocarbon companies fail to factor in the full scale of the costs of conflict. For example, as a result of conflict, a major, world-class mining project with capital expenditure of between US