Opportunities for Managing Community Relations Through the Supply Chain by Monica Ospina 5th Annual...

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Opportunities for Managing Community Relations

Through the Supply Chain

by Monica Ospina

5th Annual Risk Mitigation & Corporate Social Responsibility (CSR) in Africa and Emerging Markets

Vancouver, 2011

The Challenge for the Extractive Industry:Managing relationships & expectations with local communities

Global markets observe CSR practices and sustainable relations with local communities.

Local communities have high expectations around the entry of extractive companies. Expectations around education, sanitation and employability.

Strict environmental, socio-economic, and contractual regulations make it difficult for companies to welcome unqualified suppliers.

Little knowledge about local capabilities and competences.

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The Challenge for Locals:Gaining access to the supply chain

Locals often lack understanding or knowledge around: Capabilities; Ability to innovate; Paths to satisfying client needs; Accessing the supply chain; and/or Becoming a qualified supplier.

Modest local government support exists for private sector and capacity building programs.

Locals may not meet industry standards around safety and quality due to: “Informal” businesses practices; Little knowledge of quality certifications; Deficiency in technical regulations.

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Building TrustMining activities affect communities over the long term

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Why Market Access, the Supply Chain and CSR ?

MARKET ACCESSMARKET ACCESS

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Why Sustainable Supply Chains and Communities?

Principles to build sustainable supply chain practices:

•Transparency •Early Engagement •Knowledge Transfer

•Expectations management•Solid Anticorruption policies

Principles to build sustainable supply chain practices:

•Transparency •Early Engagement •Knowledge Transfer

•Expectations management•Solid Anticorruption policies

Because we need partners

committed to:

Because we need partners

committed to:

• Reduce risk• Secure quality & HSE• Build efficiencies• innovation

• Reduce risk• Secure quality & HSE• Build efficiencies• innovation

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Our Work: strengthen organizations by desinging CSR solutions around market access and efficiencies in the supply chain

Strengthen Centers for Excellence

Strengthen Centers for Excellence

CSR Management

CSR Management

Innovation & ProductivityInnovation & Productivity

Market AccessMarket Access Community Relations

Community Relations

Client Relations

Client Relations

Supplier RelationsSupplier Relations

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Our Programs:CSR and the supply chainLocal Community Procurement Program (LCPP)

The BuyerPrivate Sector

Local Organizations

(Municipalities, Church, Social Associations)

The SupplierLocal SMEs LCPPLCPP

Local Community Procurement Program

“SMEs learned how to self-identify core competences, how to access the oil and gas supply chain and understand the specific demands of Alberta’s Oil and Gas industry”

Lori Schmidt, Sr. Director, Productivity Alberta Industry Development Branch, Government of Alberta, Canada

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Thank you

Monica Ospina, DirectorEmail: monica@omarketaccess.com

Tel:  1 647 345 2535www.omarketaccess.com