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Private Sector Contributions To   International Development                 INTERNATIONAL DEVELOPMENT     BRIDGING THE WOR...
Session Objectives Provide a general overview of the private sector objectives and issues in  international development i...
Map of the morning: How we willtry to meet the objectivesWe will explore: Why we even discuss private sector contribution...
Private Sector Contributions To   International Development                            Alignment around Shared Value      ...
What is ODA and FDIOfficial Development Assistance (OECD DAC Definition) The DAC defines ODA as “those flows to countries...
What is ODA and FDIForeign Direct Investment (OECD Definition)Foreign direct investment (FDI) is the category ofinternatio...
Why discuss Private Sector Contribution anyway?In a speech on Democratizing Development Economics delivered atGeorgetown U...
FDI/Business Outcomes       wayne@waynedunn.com
Intention and StrategyMake a DifferenceIn the 1960s Petroleumexploration upstream closed theOrinoco, making the waterstagn...
Why does the private sector care:                                  Components of S&P Market Value* Market is             ...
Community Consultation and Value Study of 26 Gold Mines  owned by 19 publicly  traded companies Period from 1993 to  200...
It’s Real Money                           Market value of $1 billion of                                          gold in t...
CSR is a Value StrategyShare price of a CSRfailure that rendered amulti-billion dollarreserve un-developableGood CSR cre...
Social License Failures costBougaineville (PNG)- corporate practiceswere directly implicated in provoking civil war,alleg...
Why is CSR happening?Globalized world is demanding more of business… Global media – The CNNization of the world – remote ...
The Mining World Has Changed   •   “We are determined to provide multi-skilling to       workers and assist them to cope w...
CSR is a complicated space                           135 Codes                           929 Page Report                  ...
CSR & Social License Social License is necessary Needs to be renewed daily Can build reputational capital credits to he...
Role of business is changing   (click image to play video)     wayne@waynedunn.com
Case Studies (of successes) Cameco in Northern Saskatchewan – indigenous    employment and development (Industry Social L...
1.   Eradicate extreme poverty and hunger2.   Achieve universal primary education3.   Promote gender equality and empower ...
Uranium Industry in Northern Saskatchewan  Huge remote area (larger than  all but five U.S. States (Alaska,  Texas, Califo...
Challenging area Very few roads, most communities fly-in only Most of the population was only a generation or  less away...
Challenging Times Strong opposition to industry developing  • From Europe  • From within governing party Industry had di...
Cameco in 1998                                                             Cameco’s approach has                          ...
Cameco in Northern Saskatchewan (2010) About 50% of the employees at northern Saskatchewan    operations were local resid...
So, how did Cameco and the industry do it? Charted a new course (in the 1980s nobody was    doing this stuff)   Bayda Re...
Placer Dome South Africa Case study of innovative developmental CSR Demonstrate application of key CSR principles  CSR/S...
Overview•   Background – how did this get    started•   The Care Project    –Developing and implementing the    plan (chal...
Background 1990s saw massive changes in South  African mining industry – over 100,000  jobs lost as the industry restruct...
Background (cont) In late 1999 after detailed study management  realized that economic reality dictated major  restructur...
Families & Communities mustbenefit from mining                   Slide 32     wayne@waynedunn.com
The Care Project A commitment to mitigating the social and    economic impact of retrenchment at the    family and commun...
Implications The Care project decisions and commitments had a huge implication for South Deep management Entire industry...
2560 Retrenchees                                      •Mozambique                                      •Lesotho          ...
The Initial 4-Step Plan1. Consultations with retrenchees in their villages2. Recruit (from amongst the retrenchees) a grou...
Reality was different                      Consultations with                                                     retrenc...
Reality was different than expected  Lack of socio-economic development experience     was an issue    Partnerships took...
Meeting the challenges Negotiated a public private partnership  with CIDA that contributed CAD$ 2  million in additional ...
Orientation and Awareness Phase                                                         1. Registration & Homestead Visits...
Some results 92% of the retrenchees were located    and registered   57% of those (1,250) are economically    active   ...
Chicken raising business  Slide 42
Furniture makingSlide 43
Unique training programs                   Slide 44     wayne@waynedunn.com
Rice farming in Mozambique                   Slide 45     wayne@waynedunn.com
Spaza (convenience) shop          Slide 46
And the business value is… HIV/AIDS, Black Empowerment, new  mining legislation, social scorecards,  escalating security ...
“The project changed thesocial face of the SouthAfrican Mining Industry”   Kgosietsile Mogaki,   South African Ministry of...
What was in it for Placer Dome?We believe that our ability to effectively manage social issues is a competitive advantage ...
And then there is HIV/AIDS                                      Life Expectancy                                 70 RSA AC...
HIV/AIDS Facts (in 2000) ESTIMATED THAT 12% OF TOTAL RSA POPULATION AND 25% OF MINEWORKERS ARE HIV+ ALREADY 400,000 PEOP...
HIV/AIDS Impact REDUCED ECONOMIC GROWTH RATE – 2010 GDP 20% below a non AIDS   scenario REDUCED POPULATION – RSA populat...
HIV/AIDS and Gold Mining $10/oz impact if nothing is done  (5% of production costs) ~$3/oz with maximum  intervention I...
HIV/AIDS Programming Placer Dome program –   multi-level and holistic  Education  Prevention  Treatment  Impact mitiga...
Minesite Program           TRAINING AND           EDUCATION           STI & TB TREATMENT           CONDOM DISTRIBUTION ...
Minesite Program                   Slide 56     wayne@waynedunn.com
Current Community Program AWARENESS AND EDUCATION PROGRAMS MOBILE CLINIC CONDOM & FEMIDOM DISTRIBUTION PERIODIC PRESUM...
Community Mobile Clinic                          COMMUNITY PROGRAM              Slide 58wayne@waynedunn.com
And when HIV preventiondoesn’t work What to do when people can no    longer work?   They return to their villages    whe...
Industry Home Based Care  TEBA INFRA-STRUCTURE  TRAINING OF CARE GIVERS  SUPPORT STRUCTURE –  QUALIFIED STAFF  MONTHLY...
Home Based Care              Slide 61wayne@waynedunn.com
INDUSTRY HOME BASED CARE RESULTS(Year One)         Milestone                 Target   Actual         Community Care       ...
Overview of Placer Dome AIDS Programming                      SOUTH DEEP Sustainable Development Department       On Min...
But what happens to children andfamilies when the breadwinner can’t               work                Slide 64  wayne@way...
HIV/AIDS and Rural Areas          HIV/AIDS is having a          monumental impact on          the socio-economic well    ...
HIV/AIDS and Rural Areas Knowing that their family needs the  income and that there is little  medical care for them if t...
Reputational Results for Placer Dome Worst to First (enhanced    relationships in South    Africa and Globally)   First ...
Where to next? The Care project piloted an effective means of assisting rural families to become economically active and ...
Planned Program                          Care Process                                         +Care Positive              ...
Care Positive Summary              Slide 70wayne@waynedunn.com
And… After over a year of negotiations CIDA declined to  participate in the Care Positive program  (partnering with a min...
MDG Impacts of Placer Dome in South Africa1. Poverty and hunger2. Some impact on primary education (School     feeding pro...
One thing leads to another World Bank observed how Placer Dome’s  leadership on HIV/AIDS moved South African  mining indu...
PNG HIV/AIDS Scoping mission to  determine what might be  done and how Enthusiastic interest from  industry, government,...
PNG Outcomes (or outputs – I’m never sure!) Partnership with Mining  Industry, Civil Society, WHO,  UNAIDS, UNDP, World B...
wayne@waynedunn.com
PNG AIDS mission to South Africa     wayne@waynedunn.com
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What we coveredWe will explore: Why we even discuss private sector contributions? Why does the private sector engage in ...
Session Objectives Provide a general overview of the private sector objectives and issues in  international development i...
Session Objectives Provide a general overview of the private sector objectives and issues in  international development i...
Private Sector Contributions To   International DevelopmentRemember                            Alignment around Shared Val...
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Private Sector Contributions To International Development – McGill Executive Education Program Lecture

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This lecture was delivered by Wayne Dunn to students and faculty at McGill University’s Executive Education Program on International Development: BRIDGING THE WORLDS OF THEORY, POLICY AND PRACTICE. The program, which was organized by McGill’s Institute for the Study of International Development, brought together 40+ mid-career professionals from around the world for an intensive program on International Development. The lecture provided:

 a general overview of the private sector objectives and issues in international development including why the concept of Corporate Social Responsibility has emerged to suddenly become an important development and strategic issue
 a broad overview of recent trends in Corporate Social Responsibility (CSR) and Creating Shared Values (CSV)
 a framework for thinking about and understanding private sector collaboration in international development
 an understanding of how/why CSR fits into international development projects and practices and provide examples of how the private sector contributes to international development and partners with International Funding Institutions.

Veröffentlicht in: Wirtschaft & Finanzen, Business

Private Sector Contributions To International Development – McGill Executive Education Program Lecture

  1. 1. Private Sector Contributions To International Development INTERNATIONAL DEVELOPMENT BRIDGING THE WORLDS OF THEORY, POLICY AND PRACTICE An Executive Education Program Vancouver, British Columbia June 18 - 21, 2012 Wayne Dunn Thursday June 21 9:00 – Noon Session wayne@waynedunn.com
  2. 2. Session Objectives Provide a general overview of the private sector objectives and issues in international development including why the concept of Corporate Social Responsibility has emerged to suddenly become an important development and strategic issue Provide a broad overview of recent trends in Corporate Social Responsibility (CSR) and Creating Shared Values (CSV) Provide a framework for thinking about and understanding private sector collaboration in international development Provide participants with an understanding of how/why CSR fits into international development projects and practices and provide examples of how the private sector contributes to international development and partners with International Funding Institutions. wayne@waynedunn.com
  3. 3. Map of the morning: How we willtry to meet the objectivesWe will explore: Why we even discuss private sector contributions? Why does the private sector engage in international development? MDGs as a unifying framework between public, private and civil society sectors in International Development Some case study examples (mostly in extractive sector) Public/private/civil society collaboration – case study and discussion (CIDA and Mining Companies) Open discussion on topics of interest (time permitting) wayne@waynedunn.com
  4. 4. Private Sector Contributions To International Development Alignment around Shared Value For shareholders For Communities For People For Governments wayne@waynedunn.com
  5. 5. What is ODA and FDIOfficial Development Assistance (OECD DAC Definition) The DAC defines ODA as “those flows to countries and territories on the DAC List of ODA Recipients and to multilateral development institutions which are: • i. provided by official agencies, including state and local governments, or by their executive agencies; and ii. each transaction of which: • a) is administered with the promotion of the economic development and welfare of developing countries as its main objective; and • b) is concessional in character and conveys a grant element of at least 25 per cent (calculated at a rate of discount of 10 per cent).” wayne@waynedunn.com
  6. 6. What is ODA and FDIForeign Direct Investment (OECD Definition)Foreign direct investment (FDI) is the category ofinternational investment that reflects the objective ofa resident entity in one economy to obtain a lastinginterest in an enterprise resident in anothereconomy. wayne@waynedunn.com
  7. 7. Why discuss Private Sector Contribution anyway?In a speech on Democratizing Development Economics delivered atGeorgetown University last September, World Bank President RobertZoellick pointed out that “In the 2000s, Foreign Direct Investment (FDI)inflows were the single biggest source of capital for developing countriesand a critical input for technology transfer in developing country firms.” Comparison of Outbound FDI vs. Official Development Assistance (ODA) from Development Assistance Committee (DAC) countries in 2009 (US$ billions) Source: OECD, UNCTAD Also need to consider growing internal capital and investment flows and potential to impact development
  8. 8. FDI/Business Outcomes wayne@waynedunn.com
  9. 9. Intention and StrategyMake a DifferenceIn the 1960s Petroleumexploration upstream closed theOrinoco, making the waterstagnant and devastated the lifeof the Warao Peoples wayne@waynedunn.com
  10. 10. Why does the private sector care: Components of S&P Market Value* Market is Intangible Assets Tangible Assets placing 20% 20% increasing 32% value on 68% intangibles 83% Reputational 80% 80% Capital is 68% closely 32% linked to 17% shareholder 1975 1985 1995 2005 2010 value *Adapted from Milla Craig’s presentation to ISID – March 30, 2012 wayne@waynedunn.com
  11. 11. Community Consultation and Value Study of 26 Gold Mines owned by 19 publicly traded companies Period from 1993 to 2008 Examined and coded over 50,000 stakeholder events to develop an index of cooperation/conflict Effective consultation and engagement reduced discount rate on gold in ground from 72% to between 12 – 32% wayne@waynedunn.com
  12. 12. It’s Real Money Market value of $1 billion of gold in the ground based on consultation and conflict$1,000,000,000 $120,000,000 $900,000,000 $330,000,000 $800,000,000 $700,000,000 $720,000,000 $600,000,000 $500,000,000 Lost Value $400,000,000 $880,000,000 Value in market $300,000,000 $670,000,000 $200,000,000 $100,000,000 $280,000,000 $0 72% 33% 12% wayne@waynedunn.com
  13. 13. CSR is a Value StrategyShare price of a CSRfailure that rendered amulti-billion dollarreserve un-developableGood CSR createsvalue for company,community and other ~$13.00 $0.29stakeholders
  14. 14. Social License Failures costBougaineville (PNG)- corporate practiceswere directly implicated in provoking civil war,allegedly cost Rio Tinto $3 billion (StanfordUniv study)Tambo Grande (Peru)Ovacik/Eurogold (Turkey)
  15. 15. Why is CSR happening?Globalized world is demanding more of business… Global media – The CNNization of the world – remote local issues direct to television screens Social Media – Youtube, Facebook, Twitter, etc. Everything is Everywhere and Organizable Proliferation of NGOs and CBOs – direct, well organized and financed support to communities Internet and other communications innovations – direct communications from remote projects to worldwide audience Global Democratization – increased attention to local issues wayne@waynedunn.com
  16. 16. The Mining World Has Changed • “We are determined to provide multi-skilling to workers and assist them to cope with retrenchments. This is a must and not a choice for industry” • “It is important for mining to ensure that economic benefits accrue to society as a whole and more specifically to communities affected by mining . . . The social environment has not, in my opinion, been adequately addressed in the past” Hon. Phumizile Mlambo-Ngcuka South Africa Minister of Minerals and Energy wayne@waynedunn.com
  17. 17. CSR is a complicated space 135 Codes 929 Page Report And that was in Jan 2007 wayne@waynedunn.com
  18. 18. CSR & Social License Social License is necessary Needs to be renewed daily Can build reputational capital credits to help through inevitable bumps and stumbles Social license is about value Social license applies to projects AND industries wayne@waynedunn.com
  19. 19. Role of business is changing (click image to play video) wayne@waynedunn.com
  20. 20. Case Studies (of successes) Cameco in Northern Saskatchewan – indigenous employment and development (Industry Social License) Placer Dome South Africa – community development and women’s empowerment, HIV/AIDS programming leadership Placer Dome in Papua New Guinea – leading public private partnerships in HIV/AIDS programming (and south/south cooperation) Eldorado Gold in Turkey – supporting community priorities CSR Developments in Ghana – underwater logging and social license wayne@waynedunn.com
  21. 21. 1. Eradicate extreme poverty and hunger2. Achieve universal primary education3. Promote gender equality and empower women4. Reduce child mortality5. Improve maternal health6. Combat HIV/AIDS, malaria and other diseass7. Ensure environmental sustainability8. Develop a global partnership for development wayne@waynedunn.com
  22. 22. Uranium Industry in Northern Saskatchewan Huge remote area (larger than all but five U.S. States (Alaska, Texas, California, Montana and New Mexico) Wayne’s World wayne@waynedunn.com
  23. 23. Challenging area Very few roads, most communities fly-in only Most of the population was only a generation or less away from life on the land, hunting, fishing, trapping, etc. Low levels of literacy Little experience with or even exposure to industrial employment or business wayne@waynedunn.com
  24. 24. Challenging Times Strong opposition to industry developing • From Europe • From within governing party Industry had difficulties from all sides • Local stakeholders didn’t have the capacity to engage productively in the industry • Early days of CSR (1980s) and companies largely didn’t realize the importance of local engagement and value creation wayne@waynedunn.com
  25. 25. Cameco in 1998 Cameco’s approach has transformed the socio-economic well-being of Indigenous Peoples in Northern Saskatchewan Cameco Aboriginal Employment (includes permanent contractor workforce) 50% Pe rcentage of Total Workforce 44% 45% 43% 42% 42% 39% 40% 37% 37% 34% 35% 30% 29% 30% 25% 20% 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 (Aug) wayne@waynedunn.com
  26. 26. Cameco in Northern Saskatchewan (2010) About 50% of the employees at northern Saskatchewan operations were local residents (much higher % if you count northern residents living in south) 78% of services to northern minesites - approximately $295 million - went to northern businesses (trucking, catering, underground mining, etc.) Engaged in project discussions with communities impacted by operations and exploration activities, making 120 community visits to provide information and answer questions Donated over $2.5 million to northern and aboriginal initiatives for youth, health and wellness, education and literacy, and culture and recreation Provided $100,000 in scholarships to post-secondary students. wayne@waynedunn.com
  27. 27. So, how did Cameco and the industry do it? Charted a new course (in the 1980s nobody was doing this stuff) Bayda Report (contracting preference) Kitsaki Development Corporation – NRT Trucking Skunk works/secret meetings Overcoming culture and practice barriers (drilling, underground mining, etc.) BHAGs Necessity wayne@waynedunn.com
  28. 28. Placer Dome South Africa Case study of innovative developmental CSR Demonstrate application of key CSR principles CSR/Sustainability Policy Strategic interventions vs. shotgun approaches Impact metrics vs. expense metrics Partnership strategies (financial, operational, technical) Leadership and leverage Slide 28 wayne@waynedunn.com
  29. 29. Overview• Background – how did this get started• The Care Project –Developing and implementing the plan (challenges, partners, learnings) –Business value created• HIV/AIDS – The Crisis and why does it matter – Programs and activities Slide 29
  30. 30. Background 1990s saw massive changes in South African mining industry – over 100,000 jobs lost as the industry restructured; 1999 – Placer Dome purchased a 50% interest in South Deep (WAL), a mine located just outside Johannesburg • This was the first major post-apartheid foreign investment in the South African mining industry Labour force came from throughout 5 countries in Southern Africa Slide 30
  31. 31. Background (cont) In late 1999 after detailed study management realized that economic reality dictated major restructuring at South Deep 1/3 of the South Deep workforce (over 2,500) workers were retrenched • Industry standard retrenchment packages consisted of 2 weeks salary per year of service plus access to onsite training South Deep management compared the industry standard retrenchment package against the commitment to stakeholders inherent in the Placer Dome Sustainability Policy and decided that the workers deserved more – that the commitment went BEYOND THE PAYCHECK Slide 31
  32. 32. Families & Communities mustbenefit from mining Slide 32 wayne@waynedunn.com
  33. 33. The Care Project A commitment to mitigating the social and economic impact of retrenchment at the family and community level A target of assisting at least 70% of the retrenchees and their families to become economically active A commitment to develop HIV/AIDS programming initiatives A commitment to enable spouses (women) to be able to benefit directly from retrenchment benefits 2 year time frame and R15 million (CAD$3.6 million) budget was established Slide 33
  34. 34. Implications The Care project decisions and commitments had a huge implication for South Deep management Entire industry watching to see what this Canadian newcomer will do
  35. 35. 2560 Retrenchees •Mozambique •Lesotho •South Africa •Swaziland •Botswana The MineHow to successfully provide socio-economic support across remoterural regions of five countries Slide 35 wayne@waynedunn.com
  36. 36. The Initial 4-Step Plan1. Consultations with retrenchees in their villages2. Recruit (from amongst the retrenchees) a group of 25-30 fieldworkers who would provide frontline support to the retrenchees and their families3. Locate and register the retrenchees4. Provide them with training and support to enable them to become economically activeAll of the above to be done in partnership with MDA, TEBA and other partners Slide 36 wayne@waynedunn.com
  37. 37. Reality was different Consultations with retrencheesthan we expected Retrenchees and their Unions were still angry over the contested retrenchment Retrenchees’ homes were difficult to locate and registration was often Walking to a remote retrenchee homestead in Lesotho problematic Slide 37 wayne@waynedunn.com
  38. 38. Reality was different than expected  Lack of socio-economic development experience was an issue  Partnerships took longer to form and more time to manage than expected  Industry skepticism  Mozambique floods  National borders  Micro-finance  HIV/AIDS  Fieldworker training programs  Retrenchee education levels  Centralized delivery didn’t work  Project was under-financed  We couldn’t do it in two years  Etc. Slide 38
  39. 39. Meeting the challenges Negotiated a public private partnership with CIDA that contributed CAD$ 2 million in additional resources Kept working at getting our partnerships working for everyone Leading by example gradually demonstrated our commitment to industry, unions and others Continual revision of plan and project delivery to ensure it met the needs of the recipients Slide 39
  40. 40. Orientation and Awareness Phase 1. Registration & Homestead Visits 2. District Counselling Sessions 3. Open Days/Career Fairs 4. Financial Lifes Skills Training 5. Feedback and Choices Session Personal Economic PlanThe Prepared & AssessedProcess Decision on Economic Option Enterprise Stream Employment Stream Business Planning & Preparation Employment Planning & Preparation 1. Business Orientation 1. Identification of Employment Options a) Introduction to Business 2. Skills Training (Vocational/Agricultural, etc) b) Skills/Product Training 3. Employment Counseling / Placement 2. Develop Draft Business Plan (Job search/Resume, etc.) (to be reviewed with Counselor) (plan will contain market assessment, Personal financial, operational and skills upgrading plan) Employment Plan 3. Preparation of Micro-Finance Application Prepared Business & 13-step process Financing Plan Prepared Ongoing Processes Delivered Evaluation of Micro Finance Application Follow-up sessions/ 18 times Business Operation 1. Ongoing availability of Technical Assistance activities to monitor effectiveness of Across interventions and Business Counselling 2. Ongoing faclitiation of skills training needs (i.e., business, agriculture, vocational, etc.) Communication and Five countries consultation with stakeholders Continuous improvement process (review feedback; Retrenchee is Re-Integrated enhance programs, procedures, Slide 40 and Economically Active processes) wayne@waynedunn.com
  41. 41. Some results 92% of the retrenchees were located and registered 57% of those (1,250) are economically active 65% (1,556) have received financial life skills training Many of the trainees were women Care process is becoming an industry standard in South Africa and replicated elsewhere in Africa and globally Development infrastructure and partnerships throughout the five country region Slide 41
  42. 42. Chicken raising business Slide 42
  43. 43. Furniture makingSlide 43
  44. 44. Unique training programs Slide 44 wayne@waynedunn.com
  45. 45. Rice farming in Mozambique Slide 45 wayne@waynedunn.com
  46. 46. Spaza (convenience) shop Slide 46
  47. 47. And the business value is… HIV/AIDS, Black Empowerment, new mining legislation, social scorecards, escalating security challenges and a myriad of other issues are the daily facts of mining life. Mines and mining companies must demonstrate an ability to create meaningful value for people, communities and other social stakeholders – and they must do so while meeting increasingly challenging financial targets. Placer Dome is not a charity and the Care project was not just some sort of corporate philanthropy Slide 47
  48. 48. “The project changed thesocial face of the SouthAfrican Mining Industry” Kgosietsile Mogaki, South African Ministry of Minerals and Energy Slide 48 wayne@waynedunn.com
  49. 49. What was in it for Placer Dome?We believe that our ability to effectively manage social issues is a competitive advantage as we look towards the future of the industry in South Africa and globallyThrough programs like Care we are better able to manage risk and are securing our long term future in South Africa and throughout the sub- continent Piet Kolbe Mine Manager, South Deep Slide 49 wayne@waynedunn.com
  50. 50. And then there is HIV/AIDS Life Expectancy 70 RSA ACCOUNTED FOR NEARLY 1 65 IN 8 OF THE NEW HIV 60 INFECTIONS THAT OCCURRED WORLD WIDE IN 2000 50 HIV+ PREVALENCE RATE IN 40 40 WOMEN ATTENDING ANTE- NATAL CLINICS INCREASED 30 FROM 0.7% IN 1990 TO 24.8% IN 2001 20 AVERAGE OF 1700 NEW 10 INFECTIONS PER DAY 0 LIFE EXPECTANCY WILL 2001 2011 DECLINE FROM 65 TO 40 BY  2011 Slide 50
  51. 51. HIV/AIDS Facts (in 2000) ESTIMATED THAT 12% OF TOTAL RSA POPULATION AND 25% OF MINEWORKERS ARE HIV+ ALREADY 400,000 PEOPLE ARE AIDS SICK, AND THIS WILL INCREASE TO 1,4 M BY 2010 YOUNG WOMEN PARTICULARLY VULNERABLE – 23.9% AGED BETWEEN 15 – 49 ALREADY INFECTED AND WILL RISE TO 29.7% BY 2007 AIDS ORPHANS AT PRESENT AMOUNT TO 660,000+ AND WILL RISE TO 1,8M BY 2015 ACCUMULATIVE AIDS DEATHS WILL RISE TO 9M BY 2015 Slide 51 wayne@waynedunn.com
  52. 52. HIV/AIDS Impact REDUCED ECONOMIC GROWTH RATE – 2010 GDP 20% below a non AIDS scenario REDUCED POPULATION – RSA population 10M smaller than non AIDS scenario SKYROCKETING DEMANDS ON PUBLIC HEALTH SYSTEM - RADICALLY CHANGED PRIVATE SPENDING PATTERNS – to healthcare and funeral costs IMPACT ON SOCIO-ECONOMIC STABILITY? (orphans) HIV/AIDS is the worst epidemic in human history. At every level it is causing devastation, destruction and suffering throughout Southern Africa This is the reality for business operating in much of Slide Africa today. Nobody can afford to ignore it 52
  53. 53. HIV/AIDS and Gold Mining $10/oz impact if nothing is done (5% of production costs) ~$3/oz with maximum intervention Impact on social and political stability? Slide 53
  54. 54. HIV/AIDS Programming Placer Dome program – multi-level and holistic  Education  Prevention  Treatment  Impact mitigation (when one has AIDS)  On the minesite  In local communities  In rural areas where our workers come from Slide 54
  55. 55. Minesite Program  TRAINING AND EDUCATION  STI & TB TREATMENT  CONDOM DISTRIBUTION  PEER EDUCATION  VOLUNTARY COUNSELING AND TESTING (VCT)  WELLNESS PROGRAM  MEDICAL REPATRIATIONSlide55
  56. 56. Minesite Program Slide 56 wayne@waynedunn.com
  57. 57. Current Community Program AWARENESS AND EDUCATION PROGRAMS MOBILE CLINIC CONDOM & FEMIDOM DISTRIBUTION PERIODIC PRESUMPTIVE TREATMENT (PPT) TREATMENT FOR SEXUALLY TRANSMITTED INFECTIONS ( STI) Slide 57 wayne@waynedunn.com
  58. 58. Community Mobile Clinic COMMUNITY PROGRAM Slide 58wayne@waynedunn.com
  59. 59. And when HIV preventiondoesn’t work What to do when people can no longer work? They return to their villages where there is little or no support Families are overwhelmed Tremendous social and economic impact Addressing it effectively is too much for one company Slide 59 wayne@waynedunn.com
  60. 60. Industry Home Based Care  TEBA INFRA-STRUCTURE  TRAINING OF CARE GIVERS  SUPPORT STRUCTURE – QUALIFIED STAFF  MONTHLY MEDICATION  WORK WITH OTHER STAKEHOLDERS (E.G. TRADITIONAL HEALERS)  WORLD BANK DEVELOPMENT INNOVATION AWARD Slide 60
  61. 61. Home Based Care Slide 61wayne@waynedunn.com
  62. 62. INDUSTRY HOME BASED CARE RESULTS(Year One) Milestone Target Actual Community Care Supporters engaged 87 127 Community Care Training 87 123 People under Home Based Care 696 801 THE PROJECT EXCEEDED TARGETS IN EVERY AREASlide 62
  63. 63. Overview of Placer Dome AIDS Programming SOUTH DEEP Sustainable Development Department On Mine Program Community Program •Voluntary Counseling and testing HIV Negative •Continue working Wellness Program Farm Modified work program •Agricultural work / Environmental Medical repatriation Back to work or Re skilled Home Based Benefits Care Positive Care EC Slide 63 wayne@waynedunn.com HBC OPP
  64. 64. But what happens to children andfamilies when the breadwinner can’t work Slide 64 wayne@waynedunn.com
  65. 65. HIV/AIDS and Rural Areas  HIV/AIDS is having a monumental impact on the socio-economic well being of families throughout rural Southern Africa  Workers who used to support extended families of 10-20 people are becoming too sick to work and are coming home, literally to dieSlide65
  66. 66. HIV/AIDS and Rural Areas Knowing that their family needs the income and that there is little medical care for them if they go home, these workers are staying on the job as long as possible In addition to the human tragedy, this is having a severe impact on business productivity There are solid business and humane reasons to address this problem But, economies of scale are neededSlide66
  67. 67. Reputational Results for Placer Dome Worst to First (enhanced relationships in South Africa and Globally) First private sector project to ever win World Bank Development Innovation Award Canadian CSR/Ethical Project Award (2004) Numerous other awards Stanford Case Study wayne@waynedunn.com
  68. 68. Where to next? The Care project piloted an effective means of assisting rural families to become economically active and has an existing infrastructure and management system in place Industry Home Based Care project piloted a cost effective, fee for service, program to support medically repatriated workers and their families Slide 68 wayne@waynedunn.com
  69. 69. Planned Program Care Process +Care Positive Home Based Care Integrate the Home Based Care project with the Care process and = launch as a fee for service based program to address the social and Care Positive economic impacts that AIDS is having on rural families and communities Start with the mining industry but design the infrastructure and management systems to enable participation by other industries, governments and donor community stakeholdersSlide69
  70. 70. Care Positive Summary Slide 70wayne@waynedunn.com
  71. 71. And… After over a year of negotiations CIDA declined to participate in the Care Positive program (partnering with a mining company was seen as too much reputational risk) Industry was frustrated because the negotiations had been invited by CIDA and industry had investment over $100,000 and considerable reputational capital into them Industry went forward with modified HIV/AIDS programming but huge developmental impacts were lost. wayne@waynedunn.com
  72. 72. MDG Impacts of Placer Dome in South Africa1. Poverty and hunger2. Some impact on primary education (School feeding program)3. Promote gender equality and empower women4. Reduce child mortality5. Improve maternal health6. Combat HIV/AIDS, malaria and other diseass7. Ensure environmental sustainability8. Develop a global partnership for development (Placer Dome, CIDA, Civil Society, NGOs) Slide 72 wayne@waynedunn.com
  73. 73. One thing leads to another World Bank observed how Placer Dome’s leadership on HIV/AIDS moved South African mining industry All indications were that PNG was at risk of huge crisis Placer Dome had two mines in PNG World Bank asked Placer Dome to take a look at what might be done wayne@waynedunn.com
  74. 74. PNG HIV/AIDS Scoping mission to determine what might be done and how Enthusiastic interest from industry, government, multi-laterals (WHO, UNAIDS, World Bank,etc.), ODA (AusAID) CIDA partnered with Place Dome to develop an HIV/AIDS strategy for PNG that integrated industry, public sector, civil society and international community wayne@waynedunn.com
  75. 75. PNG Outcomes (or outputs – I’m never sure!) Partnership with Mining Industry, Civil Society, WHO, UNAIDS, UNDP, World Bank, PNG AIDS, AusAID, Oil Palm Industry, etc. National workshop on HIV/AIDS and public/private partnerships South/South Collaboration: Industry, government, civil society, international community study trip to South Africa wayne@waynedunn.com
  76. 76. wayne@waynedunn.com
  77. 77. PNG AIDS mission to South Africa wayne@waynedunn.com
  78. 78. MDG Impacts of PNG HIV/AIDS work1. Poverty and hunger (nutritional supplements)2. Some impact on primary education (peripheral)3. Promote gender equality and empower women4. Reduce child mortality5. Improve maternal health6. Combat HIV/AIDS, malaria and other diseass7. Ensure environmental sustainability8. Develop a global partnership for development (Placer Dome, CIDA, Civil Society, NGOs) Slide 78 wayne@waynedunn.com
  79. 79. Eldorado Gold in Turkey Usak/Kislidag Minesite Eurogold site Major gold find in West/Central Turkey No successful mining project launched in decades Eurogold project built, launched and halted by community action in late 1990s – still mothballed wayne@waynedunn.com
  80. 80. Eldorado Gold in Turkey Isolated rural area Nearly half of nearby communities opposed to mine development Agriculture primary economic activity in rural communities – small/micro family farms wayne@waynedunn.com
  81. 81. Eldorado Gold in Turkey Engaged with community beginning in early exploration stages Ongoing discussion and consultation for years during exploration and development CIDA support to develop and strategic development plan Water supply for local villages Support to local health care Jobs and Procurement Agricultural Strategy (worked with farmers and provincial govt. to develop) Animal husbandry efficiencies (dairy, sheep genetics, etc.) Agriculture research capacity wayne@waynedunn.com
  82. 82. Eldorado Gold in Turkey Smooth permitting process Good local relationships (broad and deep) Over a decade of smooth operations Share price up over 15x (from $0.75 to $13.25 Opened second mine in Turkey • Able to deal with controversial watershed issues after relationship success in Usak wayne@waynedunn.com
  83. 83. MDG Impacts of Eldorado Gold1. Poverty and hunger (minimal)2. Some impact on primary education (peripheral)3. Promote gender equality and empower women4. Reduce child mortality5. Improve maternal health6. Combat HIV/AIDS, malaria and other diseass7. Ensure environmental sustainability8. Develop a global partnership for development (Placer Dome, CIDA, Civil Society, NGOs) Slide 83 wayne@waynedunn.com
  84. 84. Underwater Logging in Ghana wayne@waynedunn.com
  85. 85. Private Sector and International Development Private sector, especially resource extraction, has a very mixed record. • Some horrendous disasters (Nigeria, Warao Peoples in Venezuela, etc.) • Some great successes (Placer Dome Care project, mining and HIV/AIDS in South Africa [but mining also created conditions to facilitate the spread of AIDS], AIDS strategy in PNG, Cameco in Saskatchewan) Successes can have a direct impact on Millennium Develpoment Goals wayne@waynedunn.com
  86. 86. Group Exercise Using the CIDA and Mining Companies papers that were circulated on Tuesday discuss the questions below as a group Select a spokesperson to report the group consensus to the room (if no consensus then have spokesperson report differing positions) Should Official Development Assistance agencies like CIDA and multi-laterals like the United Nations Development Program work with private sector in developing economies; If yes, why? And how should they work with them If no, why? And what should they do when interests/objectives overlap wayne@waynedunn.com
  87. 87. SD/CSR Implementation Challenges more than a warm fuzzy issue Spending isn’t the answer ?Results? Framework Plan System Solving social problems Objectives wayne@waynedunn.com
  88. 88. Stuff on the USB DriveArticle What it is about AuthorBeyond Beads and A ‘how to’ article on Wayne DunnTrinkets – BC Mining mining and CSRReviewBP Venezuela Situational Wayne DunnIndigenous Relations assessment and– Meeting the strategic plan for BPChallenge Venezuela.Responsibly and Authorized for releaseSustainably by BPCameco Community Situational Wayne DunnRelations Report assessment and management strategy Authorized for release by Cameco wayne@waynedunn.com
  89. 89. Stuff on the USB DriveArticle What it is about AuthorBeyond Beads ‘n A conference paper describing a Wayne DunnTrinkets: A systematic approach to communitysystematic relations management, helpingapproach to companies to methodically developmanaging mutually beneficial relationships withcommunity relations local communities and interests. (this is one of the earliest papers on this subject – written in 1998)The costs of conflict Analysis of the cost of community Rachel Daviswith local conflicts in the Extractive Sector and Daniel M.communities in the Franksextractive industryCreating Shared Harvard Business Review interview VideoValue with Michael Porter wayne@waynedunn.com
  90. 90. Stuff on the USB DriveArticle What it is about AuthorSocial License: Its all Discussion on Social License Wayne Dunnabout value and shareholder ValueIts about Development Commentary on the Wayne Dunn CIDA/Mining Company issueIntegrating corporate Discussion and analysis on Witold J. Henisz,strategy and social market returns on stakeholder Sinzianaresponsibility—market engagement Dorobantu andreturns from Lite J. Nartystakeholderengagement wayne@waynedunn.com
  91. 91. Stuff on the USB DriveArticle What it is about AuthorMcGill Reporter – Discussion on CSR Wayne DunnFour BurningQuestions: WayneDunn on CSRMining’s contribution Discussion paperto sustainable prepared by thedevelopment –an International Counciloverview on Mining and MetalsMillennium United NationsDevelopment Goals wayne@waynedunn.com
  92. 92. Stuff on the USB DriveArticle What it is about AuthorMining and A short ‘how to’ guide Al HingstonAgriculture for mining projects toDevelopment engage with the local agriculture sectorPDSA Social Value Brochure on social Placer DomeBrochure value created by Placer Dome South AfricaThe Value of Social Opinion piece Wayne DunnLicense published in Northern Miner wayne@waynedunn.com
  93. 93. Stuff on the USB DriveArticle What it is about AuthorGolden Opportunity When a Stanford Business Wayne DunnCanadian multinational laid School Case Studyoff hundreds of gold miners on Placer Dome inin South Africa, it went many South Africaextra miles to help them getback on their feetThe Changing Resource Strategic thought Wayne DunnDevelopment Paradigm: piece prepared forMaximizing Sustainable the government ofLocal Benefits from British Columbia,Resource Development Canada wayne@waynedunn.com
  94. 94. Stuff on the USB DriveArticle What it is about AuthorThe Disappearing Discussion paper Katherine PikusBarriers BetweenBusiness And Non-profits Are DrivingInnovationWhen Condoms are World Bank staff Craig Andrewsnot enough magazine article on Placer Dome and South African mining industry’s work with HIV/AIDS wayne@waynedunn.com
  95. 95. Stuff on the USB DriveArticle What it is about AuthorMINING AND LOCAL Strategic research and Wayne DunnECONOMIC action plan on miningDEVELOPMENT IN and local economicPAPUA NEW GUINEA: development in PapuaPreliminary Research New Guinea preparedon a Potential Pilot for the World BankProject in Porgeraand Lihir wayne@waynedunn.com
  96. 96. What we coveredWe will explore: Why we even discuss private sector contributions? Why does the private sector engage in international development? MDGs as a unifying framework between public, private and civil society sectors in International Development Some case study examples (mostly in extractive sector) Public/private/civil society collaboration – case study and discussion (CIDA and Mining Companies) Open discussion on topics of interest (time permitting) wayne@waynedunn.com
  97. 97. Session Objectives Provide a general overview of the private sector objectives and issues in international development including why the concept of Corporate Social Responsibility has emerged to suddenly become an important development and strategic issue Provide a broad overview of recent trends in Corporate Social Responsibility (CSR) and Creating Shared Values (CSV) Provide a framework for thinking about and understanding private sector collaboration in international development Provide participants with an understanding of how/why CSR fits into international development projects and practices and provide examples of how the private sector contributes to international development and partners with International Funding Institutions. wayne@waynedunn.com
  98. 98. Session Objectives Provide a general overview of the private sector objectives and issues in international development including why the concept of Corporate Social Responsibility has emerged to suddenly become an important development and strategic issue Provide a broad overview of recent trends in Corporate Social Responsibility (CSR) and Creating Shared Values (CSV) Provide a framework for thinking about and understanding private sector collaboration in international development Provide participants with an understanding of how/why CSR fits into international development projects and practices and provide examples of how the private sector contributes to international development and partners with International Funding Institutions. wayne@waynedunn.com
  99. 99. Private Sector Contributions To International DevelopmentRemember Alignment around Shared Value For shareholders For Communities For People For Governments wayne@waynedunn.com

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