Developing a conflictsensitive business approach Audience A Awarenessraising
Developing a conflict-sensitive business approach Audience A: Awareness-raising session for senior staff
Aims and objectives of this session In this session we’ll explore: What is the issue and why is it relevant to our business? What are the risks? What do we need to do in practice? What is required of management? 2 www. icmm. com Follow us
Incidents of conflict over time – 2015 2002 2003 2004 2005 2006 2007 2008 Total all sources 2009 Total BHRRC 2010 2011 2012 2013 2014 2015 0 3 20 40 60 Number of incidents 80 www. icmm. com 100 Follow us 120
Causes of conflict - 2015 4 www. icmm. com Follow us
The direct costs of conflict to business Direct costs Example Security Higher payments to state/private security firms; staff time spent on security management. Risk management Insurance, loss of coverage, specialist training for staff, reduced mobility and higher transport costs. Material Destruction of property or infrastructure. Opportunity Disruption of production, delays on imports; aborted greenfield investments or expansions. Time Senior management involvement, additional staff time, legal advice. Capital Increased cost of raising capital. Personnel Kidnapping, killing and injury; stress; recruitment difficulties; higher wages to offset risk; cost of management time spent protecting staff. Reputation Consumer campaigns, risk-rating, share price, competitive loss. Litigation Expensive and damaging law suits. 5 www. icmm. com Follow us
The indirect costs of conflict to business Indirect costs Example Human Loss of life, health, intellectual and physical capacity. Social Weakening of social capital. Economic Damage to financial and physical infrastructure, loss of markets. Environment Pollution, degradation, resource depletion. Political Weakening of institutions, rule of law, governance. 6 www. icmm. com Follow us
The nature of conflict and the practical steps required • Conflict is a consequence of perceived or actual incompatibility • Conflict is inevitable, and can be a force for positive change • It should therefore not be avoided at all costs • However, conflict has negative consequences for both business and associated communities • A conflict-sensitive approach is thus essential • This understanding forms the basis of your interventions. 7 At the heart of this approach is meaningful stakeholder engagement, and developing an understanding of the conflict - the context, issues, stakeholders, and company’s role in the conflict. www. icmm. com Follow us
Reflection: Our operation and conflict Place-holder slide for you to put your operation’s own reflections on conflict. 8 www. icmm. com Follow us
Senior management’s role in contributing to a conflict-sensitive approach Keeping personnel safe, and creating a supportive environment Allocation of resources for conflict analysis Integration of “conflict lens” into due diligence processes Assessment of internal causes of conflict Prioritization of engagement and relationship building Upskilling of staff Tracking and quantification of conflict costs. 9 www. icmm. com Follow us
In conclusion: The benefits of this approach 10 • Improved companycommunity relations • More informed management responses and risk management • Tracking of risks across the project life cycle • Warning system for weaknesses in existing risk management • Improved security of personnel, facilities and communities. www. icmm. com Follow us
International Council on Mining and Metals (ICMM) 35/38 Portman Square London W 1 H 6 LR United Kingdom Switchboard: +44 (0) 20 7467 5070 Main Fax: +44 (0) 20 7467 5071 E-mail: info@icmm. com www. icmm. com
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