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

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[email protected] 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

description

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.

Transcript of Private Sector Contributions To International Development – McGill Executive Education Program...

Page 1: Private Sector Contributions To International Development – McGill Executive Education Program Lecture

waynewaynedunncom

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 21 900 ndash Noon Session

waynewaynedunncom

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 howwhy 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

waynewaynedunncom

Map of the morning How we will try to meet the objectives We 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) Publicprivatecivil society collaboration ndash case study

and discussion (CIDA and Mining Companies) Open discussion on topics of interest (time permitting)

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Alignment around Shared Value For shareholders For Communities For People For Governments

Private Sector Contributions To International Development

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What is ODA and FDI

Official Development Assistance (OECD DAC Definition) The DAC defines ODA as ldquothose flows to countries and

territories on the DAC List of ODA Recipients and to multilateral development institutions which are bull i provided by official agencies including state and local

governments or by their executive agencies and ii each transaction of which

bull a) is administered with the promotion of the economic development and welfare of developing countries as its main objective and

bull 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)rdquo

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What is ODA and FDI

Foreign Direct Investment (OECD Definition) Foreign direct investment (FDI) is the category of international investment that reflects the objective of a resident entity in one economy to obtain a lasting interest in an enterprise resident in another economy

Why discuss Private Sector Contribution anyway In a speech on Democratizing Development Economics delivered at Georgetown University last September World Bank President Robert Zoellick pointed out that ldquoIn the 2000s Foreign Direct Investment (FDI) inflows were the single biggest source of capital for developing countries and a critical input for technology transfer in developing country firmsrdquo

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

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FDIBusiness Outcomes

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Intention and Strategy Make a Difference In the 1960s Petroleum exploration upstream closed the Orinoco making the water stagnant and devastated the life of the Warao Peoples

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Why does the private sector care

Market is placing increasing value on intangibles Reputational

Capital is closely linked to shareholder value

17

32

68 80 80

83

68

32 20 20

1975 1985 1995 2005 2010

Components of SampP Market Value Intangible Assets Tangible Assets

Adapted from Milla Craigrsquos presentation to ISID ndash March 30 2012

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Community Consultation and Value Study of 26 Gold Mines

owned by 19 publicly traded companies

Period from 1993 to 2008

Examined and coded over 50000 stakeholder events to develop an index of cooperationconflict

Effective consultation and engagement reduced discount rate on gold in ground from 72 to between 12 ndash 32

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Itrsquos Real Money

$280000000

$670000000 $880000000

$720000000

$330000000

$120000000

$0

$100000000

$200000000

$300000000

$400000000

$500000000

$600000000

$700000000

$800000000

$900000000

$1000000000

72 33 12

Lost Value

Value in market

Market value of $1 billion of gold in the ground based on consultation and conflict

CSR is a Value Strategy

Share price of a CSR failure that rendered a multi-billion dollar reserve un-developable Good CSR creates value for company community and other stakeholders

~$1300 $029

Social License Failures cost

Bougaineville (PNG)- corporate practices were directly implicated in provoking civil war allegedly cost Rio Tinto $3 billion (Stanford Univ study) Tambo Grande (Peru) OvacikEurogold (Turkey)

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Globalized world is demanding more of businesshellip Global media ndash The CNNization of the world ndash remote local

issues direct to television screens Social Media ndash Youtube Facebook Twitter etc Everything is

Everywhere and Organizable Proliferation of NGOs and CBOs ndash direct well organized and

financed support to communities

Why is CSR happening

Internet and other communications innovations ndash direct communications from remote projects to worldwide audience

Global Democratization ndash increased attention to local issues

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bull ldquoWe are determined to provide multi-skilling to workers and assist them to cope with retrenchments This is a must and not a choice for industryrdquo

bull ldquoIt 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 pastrdquo Hon Phumizile Mlambo-Ngcuka

South Africa Minister of Minerals and Energy

The Mining World Has Changed

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CSR is a complicated space

135 Codes 929 Page Report And that was in Jan 2007

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CSR amp 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

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Role of business is changing (click image to play video)

Creating Shared Value - Harvard Business Review

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Case Studies (of successes)

Cameco in Northern Saskatchewan ndash indigenous employment and development (Industry Social License) Placer Dome South Africa ndash community development and

womenrsquos empowerment HIVAIDS programming leadership Placer Dome in Papua New Guinea ndash leading public private

partnerships in HIVAIDS programming (and southsouth cooperation) Eldorado Gold in Turkey ndash supporting community priorities CSR Developments in Ghana ndash underwater logging and

social license

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1 Eradicate extreme poverty and hunger 2 Achieve universal primary education 3 Promote gender equality and empower women 4 Reduce child mortality 5 Improve maternal health 6 Combat HIVAIDS malaria and other diseass 7 Ensure environmental sustainability 8 Develop a global partnership for development

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Uranium Industry in Northern Saskatchewan Huge remote area (larger than all but five US States (Alaska Texas California Montana and New Mexico)

Waynersquos World

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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

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Challenging Times

Strong opposition to industry developing bull From Europe bull From within governing party

Industry had difficulties from all sides bull Local stakeholders didnrsquot have the capacity to engage

productively in the industry bull Early days of CSR (1980s) and companies largely didnrsquot

realize the importance of local engagement and value creation

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Cameco in 1998

Camecorsquos approach has transformed the socio-economic well-being of Indigenous Peoples in Northern Saskatchewan

29 30

34

37 3739

42 42 43 44

20

25

30

35

40

45

50

1989 1990 1991 1992 1993 1994 1995 1996 1997 1998(Aug)

Perc

enta

ge o

f Tot

al W

orkf

orce

Cameco Aboriginal Employment(includes permanent contractor workforce)

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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 $25 million to northern and aboriginal

initiatives for youth health and wellness education and literacy and culture and recreation Provided $100000 in scholarships to post-secondary

students

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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 ndash NRT Trucking Skunk workssecret meetings Overcoming culture and practice barriers (drilling

underground mining etc) BHAGs Necessity

waynewaynedunncom Slide 28

Placer Dome South Africa

Case study of innovative developmental CSR Demonstrate application of key CSR principles

CSRSustainability Policy Strategic interventions vs shotgun approaches Impact metrics vs expense metrics Partnership strategies (financial operational technical) Leadership and leverage

Slide 29

Overview

bull Background ndash how did this get started

bull The Care Project ndashDeveloping and implementing the plan (challenges partners learnings) ndashBusiness value created

bull HIVAIDS ndash The Crisis and why does it matter ndash Programs and activities

Slide 30

Background 1990s saw massive changes in South

African mining industry ndash over 100000 jobs lost as the industry restructured 1999 ndash Placer Dome purchased a 50

interest in South Deep (WAL) a mine located just outside Johannesburg bull 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 31

Background (cont) In late 1999 after detailed study management

realized that economic reality dictated major restructuring at South Deep

13 of the South Deep workforce (over 2500) workers were retrenched bull 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 ndash that the commitment went

BEYOND THE PAYCHECK

waynewaynedunncom Slide 32

Families amp Communities must benefit from mining

Slide 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 HIVAIDS 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$36 million) budget was established

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

waynewaynedunncom Slide 35

The Mine

2560 Retrenchees bullMozambique bullLesotho bullSouth Africa bullSwaziland bullBotswana

How to successfully provide socio-economic support across remote rural regions of five countries

waynewaynedunncom Slide 36

The Initial 4-Step Plan 1 Consultations with retrenchees in their villages 2 Recruit (from amongst the retrenchees) a group

of 25-30 fieldworkers who would provide frontline support to the retrenchees and their families

3 Locate and register the retrenchees 4 Provide them with training and support to enable

them to become economically active

All of the above to be done in partnership with MDA TEBA and other partners

waynewaynedunncom Slide 37

Reality was different than we expected Retrenchees and their

Unions were still angry over the contested retrenchment Retrencheesrsquo homes were

difficult to locate and registration was often problematic

Consultations with retrenchees

Walking to a remote retrenchee homestead in Lesotho

Slide 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 HIVAIDS Fieldworker training programs Retrenchee education levels Centralized delivery didnrsquot work Project was under-financed We couldnrsquot do it in two years Etc

Slide 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

waynewaynedunncom Slide 40

The Process

Business Operation1 Ongoing availability of Technical Assistance and Business Counselling2 Ongoing faclitiation of skills training needs (ie business agriculture vocational etc)

Decision on Economic Option

Employment StreamEnterprise Stream

Evaluation of Micro Finance Application

Retrenchee is Re-Integrated and Economically Active

PersonalEconomic Plan

Prepared ampAssessed

PersonalEmployment Plan

Prepared

Business amp Financing Plan

Prepared

Employment Planning amp Preparation1 Identification of Employment Options2 Skills Training (VocationalAgricultural etc)3 Employment Counseling Placement (Job searchResume etc)

Business Planning amp Preparation1 Business Orientation a) Introduction to Business b) SkillsProduct Training2 Develop Draft Business Plan (to be reviewed with Counselor) (plan will contain market assessment financial operational and skills upgrading plan)3 Preparation of Micro-Finance Application

Orientation and Awareness Phase1 Registration amp Homestead Visits2 District Counselling Sessions3 Open DaysCareer Fairs4 Financial Lifes Skills Training5 Feedback and Choices Session

Ongoing Processes

Follow-up sessions activities to monitor effectiveness of interventions

Communication and consultation with stakeholders Continuous improvement process (review feedback enhance programs procedures processes)

13-step process Delivered 18 times Across Five countries

Slide 41

Some results 92 of the retrenchees were located

and registered 57 of those (1250) are economically

active 65 (1556) 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 42

Chicken raising business

Slide 43

Furniture making

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Unique training programs

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Rice farming in Mozambique

Slide 46

Spaza (convenience) shop

Slide 47

And the business value ishellip HIVAIDS 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 ndash 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

waynewaynedunncom Slide 48

ldquoThe project changed the social face of the South African Mining Industryrdquo

Kgosietsile Mogaki

South African Ministry of Minerals and Energy

waynewaynedunncom Slide 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 globally

Through 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 50

And then there is HIVAIDS

RSA ACCOUNTED FOR NEARLY 1 IN 8 OF THE NEW HIV INFECTIONS THAT OCCURRED WORLD WIDE IN 2000

HIV+ PREVALENCE RATE IN WOMEN ATTENDING ANTE-NATAL CLINICS INCREASED FROM 07 IN 1990 TO 248 IN 2001

AVERAGE OF 1700 NEW INFECTIONS PER DAY

LIFE EXPECTANCY WILL DECLINE FROM 65 TO 40 BY 2011

65

40

0

10

20

30

40

50

60

70

2001 2011

Life Expectancy

waynewaynedunncom Slide 51

HIVAIDS Facts (in 2000)

ESTIMATED THAT 12 OF TOTAL RSA POPULATION AND 25 OF MINEWORKERS ARE HIV+

ALREADY 400000 PEOPLE ARE AIDS SICK AND THIS WILL INCREASE TO 14 M BY 2010

YOUNG WOMEN PARTICULARLY VULNERABLE ndash 239 AGED BETWEEN 15 ndash 49 ALREADY INFECTED AND WILL RISE TO 297 BY 2007

AIDS ORPHANS AT PRESENT AMOUNT TO 660000+ AND WILL RISE TO 18M BY 2015

ACCUMULATIVE AIDS DEATHS WILL RISE TO 9M BY 2015

Slide 52

HIVAIDS Impact REDUCED ECONOMIC GROWTH RATE ndash 2010 GDP 20 below a non AIDS

scenario REDUCED POPULATION ndash RSA population 10M smaller than non AIDS scenario SKYROCKETING DEMANDS ON PUBLIC HEALTH SYSTEM - RADICALLY CHANGED PRIVATE SPENDING PATTERNS ndash to healthcare and

funeral costs IMPACT ON SOCIO-ECONOMIC STABILITY (orphans)

HIVAIDS 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 Africa today Nobody can afford to ignore it

Slide 53

HIVAIDS and Gold Mining

$10oz impact if nothing is done (5 of production costs) ~$3oz with maximum

intervention Impact on social and political

stability

Slide 54

HIVAIDS Programming Placer Dome program ndash

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 55

Minesite Program

TRAINING AND EDUCATION

STI amp TB TREATMENT

CONDOM DISTRIBUTION

PEER EDUCATION

VOLUNTARY COUNSELING AND TESTING (VCT)

WELLNESS PROGRAM

MEDICAL REPATRIATION

waynewaynedunncom Slide 56

Minesite Program

waynewaynedunncom Slide 57

Current Community Program

AWARENESS AND EDUCATION PROGRAMS

MOBILE CLINIC

CONDOM amp FEMIDOM DISTRIBUTION

PERIODIC PRESUMPTIVE TREATMENT (PPT)

TREATMENT FOR SEXUALLY TRANSMITTED INFECTIONS ( STI)

waynewaynedunncom Slide 58

COMMUNITY PROGRAM

Community Mobile Clinic

waynewaynedunncom Slide 59

And when HIV prevention doesnrsquot 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 60

Industry Home Based Care

TEBA INFRA-STRUCTURE

TRAINING OF CARE GIVERS

SUPPORT STRUCTURE ndash QUALIFIED STAFF

MONTHLY MEDICATION

WORK WITH OTHER STAKEHOLDERS (EG TRADITIONAL HEALERS)

WORLD BANK DEVELOPMENT INNOVATION AWARD

waynewaynedunncom Slide 61

Home Based Care

Slide 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

waynewaynedunncom Slide 63

Overview of Placer Dome AIDS Programming SOUTH DEEP Sustainable Development Department

bullVoluntary Counseling and testing HIV Negative bullContinue working

On Mine Program Community Program

Modified work program Farm bullAgricultural work Environmental

Medical repatriation

Home Based Care

Benefits Care Positive

HBC EC OPP

Back to work or Re skilled

Wellness Program

waynewaynedunncom Slide 64

But what happens to children and families when the breadwinner canrsquot

work

Slide 65

HIVAIDS and Rural Areas HIVAIDS 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

Slide 66

HIVAIDS 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

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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 CSREthical

Project Award (2004) Numerous other awards Stanford Case Study

waynewaynedunncom Slide 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 69

Planned Program

Care Positive Integrate the Home Based Care

project with the Care process and launch as a fee for service based program to address the social and 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

Care Process

+

Home Based Care

=

Care Positive

waynewaynedunncom Slide 70

Care Positive Summary

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Andhellip 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 $100000 and considerable reputational capital into them Industry went forward with modified HIVAIDS

programming but huge developmental impacts were lost

waynewaynedunncom Slide 72

MDG Impacts of Placer Dome in South Africa

1 Poverty and hunger 2 Some impact on primary education (School

feeding program) 3 Promote gender equality and empower women 4 Reduce child mortality 5 Improve maternal health 6 Combat HIVAIDS malaria and other diseass 7 Ensure environmental sustainability 8 Develop a global partnership for development

(Placer Dome CIDA Civil Society NGOs)

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One thing leads to another

World Bank observed how Placer Domersquos leadership on HIVAIDS 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

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PNG HIVAIDS Scoping mission to

determine what might be done and how Enthusiastic interest from

industry government multi-laterals (WHO UNAIDS World Banketc) ODA (AusAID) CIDA partnered with Place Dome to develop an

HIVAIDS strategy for PNG that integrated industry public sector civil society and international community

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PNG Outcomes (or outputs ndash Irsquom never sure) Partnership with Mining

Industry Civil Society WHO UNAIDS UNDP World Bank PNG AIDS AusAID Oil Palm Industry etc National workshop on

HIVAIDS and publicprivate partnerships SouthSouth Collaboration

Industry government civil society international community study trip to South Africa

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PNG AIDS mission to South Africa

waynewaynedunncom Slide 78

MDG Impacts of PNG HIVAIDS work

1 Poverty and hunger (nutritional supplements) 2 Some impact on primary education (peripheral) 3 Promote gender equality and empower women 4 Reduce child mortality 5 Improve maternal health 6 Combat HIVAIDS malaria and other diseass 7 Ensure environmental sustainability 8 Develop a global partnership for development

(Placer Dome CIDA Civil Society NGOs)

waynewaynedunncom

Eldorado Gold in Turkey

Major gold find in WestCentral Turkey No successful

mining project launched in decades Eurogold project

built launched and halted by community action in late 1990s ndash still mothballed

UsakKislidag Minesite

Eurogold site

waynewaynedunncom

Eldorado Gold in Turkey

Isolated rural area Nearly half of nearby

communities opposed to mine development Agriculture primary

economic activity in rural communities ndash smallmicro family farms

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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

waynewaynedunncom

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 $075 to $1325 Opened second mine in Turkey

bull Able to deal with controversial watershed issues after relationship success in Usak

waynewaynedunncom Slide 83

MDG Impacts of Eldorado Gold

1 Poverty and hunger (minimal) 2 Some impact on primary education (peripheral) 3 Promote gender equality and empower women 4 Reduce child mortality 5 Improve maternal health 6 Combat HIVAIDS malaria and other diseass 7 Ensure environmental sustainability 8 Develop a global partnership for development

(Placer Dome CIDA Civil Society NGOs)

waynewaynedunncom

Underwater Logging in Ghana

waynewaynedunncom

Private Sector and International Development

Private sector especially resource extraction has a very mixed record bull Some horrendous disasters (Nigeria Warao Peoples in

Venezuela etc) bull Some great successes (Placer Dome Care project

mining and HIVAIDS 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

waynewaynedunncom

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

interestsobjectives overlap

waynewaynedunncom

SDCSR Implementation Challenges

more than a warm fuzzy issue Spending isnrsquot the answer

Plan

Framework

System

Results

Solving social problems Objectives

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Beyond Beads and Trinkets ndash BC Mining Review

A lsquohow torsquo article on mining and CSR

Wayne Dunn

BP Venezuela Indigenous Relations ndash Meeting the Challenge Responsibly and Sustainably

Situational assessment and strategic plan for BP Venezuela Authorized for release by BP

Wayne Dunn

Cameco Community Relations Report

Situational assessment and management strategy Authorized for release by Cameco

Wayne Dunn

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author Beyond Beads lsquon Trinkets A systematic approach to managing community relations

A conference paper describing a systematic approach to community relations management helping companies to methodically develop mutually beneficial relationships with local communities and interests (this is one of the earliest papers on this subject ndash written in 1998)

Wayne Dunn

The costs of conflict with local communities in the extractive industry

Analysis of the cost of community conflicts in the Extractive Sector

Rachel Davis and Daniel M Franks

Creating Shared Value

Harvard Business Review interview with Michael Porter

Video

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Social License Its all about value

Discussion on Social License and shareholder Value

Wayne Dunn

Its about Development Commentary on the CIDAMining Company issue

Wayne Dunn

Integrating corporate strategy and social responsibilitymdashmarket returns from stakeholder engagement

Discussion and analysis on market returns on stakeholder engagement

Witold J Henisz Sinziana Dorobantu and Lite J Narty

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

McGill Reporter ndash Four Burning Questions Wayne Dunn on CSR

Discussion on CSR Wayne Dunn

Miningrsquos contribution to sustainable development ndashan overview

Discussion paper prepared by the International Council on Mining and Metals

Millennium Development Goals

United Nations

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Mining and Agriculture Development

A short lsquohow torsquo guide for mining projects to engage with the local agriculture sector

Al Hingston

PDSA Social Value Brochure

Brochure on social value created by Placer Dome South Africa

Placer Dome

The Value of Social License

Opinion piece published in Northern Miner

Wayne Dunn

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Golden Opportunity When a Canadian multinational laid off hundreds of gold miners in South Africa it went many extra miles to help them get back on their feet

Stanford Business School Case Study on Placer Dome in South Africa

Wayne Dunn

The Changing Resource Development Paradigm Maximizing Sustainable Local Benefits from Resource Development

Strategic thought piece prepared for the government of British Columbia Canada

Wayne Dunn

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

The Disappearing Barriers Between Business And Non-profits Are Driving Innovation

Discussion paper

Katherine Pikus

When Condoms are not enough

World Bank staff magazine article on Placer Dome and South African mining industryrsquos work with HIVAIDS

Craig Andrews

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

MINING AND LOCAL ECONOMIC DEVELOPMENT IN PAPUA NEW GUINEA Preliminary Research on a Potential Pilot Project in Porgera and Lihir

Strategic research and action plan on mining and local economic development in Papua New Guinea prepared for the World Bank

Wayne Dunn

waynewaynedunncom

What we covered

We 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) Publicprivatecivil society collaboration ndash case study

and discussion (CIDA and Mining Companies) Open discussion on topics of interest (time permitting)

waynewaynedunncom

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 howwhy 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

waynewaynedunncom

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 howwhy 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

waynewaynedunncom

Alignment around Shared Value For shareholders For Communities For People For Governments

Private Sector Contributions To International Development

Remember

  • Private Sector Contributions To International Development
  • Session Objectives
  • Map of the morning How we will try to meet the objectives
  • Slide Number 4
  • What is ODA and FDI
  • What is ODA and FDI
  • Why discuss Private Sector Contribution anyway
  • FDIBusiness Outcomes
  • Intention and Strategy Make a Difference
  • Why does the private sector care
  • Community Consultation and Value
  • Itrsquos Real Money
  • CSR is a Value Strategy
  • Social License Failures cost
  • Why is CSR happening
  • The Mining World Has Changed
  • CSR is a complicated space
  • CSR amp Social License
  • Role of business is changing (click image to play video)
  • Case Studies (of successes)
  • Slide Number 21
  • Uranium Industry in Northern Saskatchewan
  • Challenging area
  • Challenging Times
  • Cameco in 1998
  • Cameco in Northern Saskatchewan (2010)
  • So how did Cameco and the industry do it
  • Placer Dome South Africa
  • Slide Number 29
  • Background
  • Background (cont)
  • Families amp Communities must benefit from mining
  • The Care Project
  • Implications
  • Slide Number 35
  • The Initial 4-Step Plan
  • Reality was different than we expected
  • Reality was different than expected
  • Meeting the challenges
  • TheProcess
  • Some results
  • Chicken raising business
  • Furniture making
  • Unique training programs
  • Rice farming in Mozambique
  • Spaza (convenience) shop
  • And the business value ishellip
  • Slide Number 48
  • What was in it for Placer Dome
  • And then there is HIVAIDS
  • HIVAIDS Facts (in 2000)
  • HIVAIDS Impact
  • HIVAIDS and Gold Mining
  • HIVAIDS Programming
  • Minesite Program
  • Minesite Program
  • Current Community Program
  • Community Mobile Clinic
  • And when HIV prevention doesnrsquot work
  • Industry Home Based Care
  • Home Based Care
  • INDUSTRY HOME BASED CARE RESULTS(Year One)
  • Overview of Placer Dome AIDS Programming
  • Slide Number 64
  • HIVAIDS and Rural Areas
  • HIVAIDS and Rural Areas
  • Reputational Results for Placer Dome
  • Where to next
  • Planned Program
  • Care Positive Summary
  • Andhellip
  • MDG Impacts of Placer Dome in South Africa
  • One thing leads to another
  • PNG HIVAIDS
  • PNG Outcomes (or outputs ndash Irsquom never sure)
  • Slide Number 76
  • PNG AIDS mission to South Africa
  • MDG Impacts of PNG HIVAIDS work
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • MDG Impacts of Eldorado Gold
  • Underwater Logging in Ghana
  • Private Sector and International Development
  • Group Exercise
  • Slide Number 87
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • What we covered
  • Session Objectives
  • Session Objectives
  • Remember
Page 2: Private Sector Contributions To International Development – McGill Executive Education Program Lecture

waynewaynedunncom

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 howwhy 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

waynewaynedunncom

Map of the morning How we will try to meet the objectives We 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) Publicprivatecivil society collaboration ndash case study

and discussion (CIDA and Mining Companies) Open discussion on topics of interest (time permitting)

waynewaynedunncom

Alignment around Shared Value For shareholders For Communities For People For Governments

Private Sector Contributions To International Development

waynewaynedunncom

What is ODA and FDI

Official Development Assistance (OECD DAC Definition) The DAC defines ODA as ldquothose flows to countries and

territories on the DAC List of ODA Recipients and to multilateral development institutions which are bull i provided by official agencies including state and local

governments or by their executive agencies and ii each transaction of which

bull a) is administered with the promotion of the economic development and welfare of developing countries as its main objective and

bull 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)rdquo

waynewaynedunncom

What is ODA and FDI

Foreign Direct Investment (OECD Definition) Foreign direct investment (FDI) is the category of international investment that reflects the objective of a resident entity in one economy to obtain a lasting interest in an enterprise resident in another economy

Why discuss Private Sector Contribution anyway In a speech on Democratizing Development Economics delivered at Georgetown University last September World Bank President Robert Zoellick pointed out that ldquoIn the 2000s Foreign Direct Investment (FDI) inflows were the single biggest source of capital for developing countries and a critical input for technology transfer in developing country firmsrdquo

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

waynewaynedunncom

FDIBusiness Outcomes

waynewaynedunncom

Intention and Strategy Make a Difference In the 1960s Petroleum exploration upstream closed the Orinoco making the water stagnant and devastated the life of the Warao Peoples

waynewaynedunncom

Why does the private sector care

Market is placing increasing value on intangibles Reputational

Capital is closely linked to shareholder value

17

32

68 80 80

83

68

32 20 20

1975 1985 1995 2005 2010

Components of SampP Market Value Intangible Assets Tangible Assets

Adapted from Milla Craigrsquos presentation to ISID ndash March 30 2012

waynewaynedunncom

Community Consultation and Value Study of 26 Gold Mines

owned by 19 publicly traded companies

Period from 1993 to 2008

Examined and coded over 50000 stakeholder events to develop an index of cooperationconflict

Effective consultation and engagement reduced discount rate on gold in ground from 72 to between 12 ndash 32

waynewaynedunncom

Itrsquos Real Money

$280000000

$670000000 $880000000

$720000000

$330000000

$120000000

$0

$100000000

$200000000

$300000000

$400000000

$500000000

$600000000

$700000000

$800000000

$900000000

$1000000000

72 33 12

Lost Value

Value in market

Market value of $1 billion of gold in the ground based on consultation and conflict

CSR is a Value Strategy

Share price of a CSR failure that rendered a multi-billion dollar reserve un-developable Good CSR creates value for company community and other stakeholders

~$1300 $029

Social License Failures cost

Bougaineville (PNG)- corporate practices were directly implicated in provoking civil war allegedly cost Rio Tinto $3 billion (Stanford Univ study) Tambo Grande (Peru) OvacikEurogold (Turkey)

waynewaynedunncom

Globalized world is demanding more of businesshellip Global media ndash The CNNization of the world ndash remote local

issues direct to television screens Social Media ndash Youtube Facebook Twitter etc Everything is

Everywhere and Organizable Proliferation of NGOs and CBOs ndash direct well organized and

financed support to communities

Why is CSR happening

Internet and other communications innovations ndash direct communications from remote projects to worldwide audience

Global Democratization ndash increased attention to local issues

waynewaynedunncom

bull ldquoWe are determined to provide multi-skilling to workers and assist them to cope with retrenchments This is a must and not a choice for industryrdquo

bull ldquoIt 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 pastrdquo Hon Phumizile Mlambo-Ngcuka

South Africa Minister of Minerals and Energy

The Mining World Has Changed

waynewaynedunncom

CSR is a complicated space

135 Codes 929 Page Report And that was in Jan 2007

waynewaynedunncom

CSR amp 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

waynewaynedunncom

Role of business is changing (click image to play video)

Creating Shared Value - Harvard Business Review

waynewaynedunncom

Case Studies (of successes)

Cameco in Northern Saskatchewan ndash indigenous employment and development (Industry Social License) Placer Dome South Africa ndash community development and

womenrsquos empowerment HIVAIDS programming leadership Placer Dome in Papua New Guinea ndash leading public private

partnerships in HIVAIDS programming (and southsouth cooperation) Eldorado Gold in Turkey ndash supporting community priorities CSR Developments in Ghana ndash underwater logging and

social license

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1 Eradicate extreme poverty and hunger 2 Achieve universal primary education 3 Promote gender equality and empower women 4 Reduce child mortality 5 Improve maternal health 6 Combat HIVAIDS malaria and other diseass 7 Ensure environmental sustainability 8 Develop a global partnership for development

waynewaynedunncom

Uranium Industry in Northern Saskatchewan Huge remote area (larger than all but five US States (Alaska Texas California Montana and New Mexico)

Waynersquos World

waynewaynedunncom

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

waynewaynedunncom

Challenging Times

Strong opposition to industry developing bull From Europe bull From within governing party

Industry had difficulties from all sides bull Local stakeholders didnrsquot have the capacity to engage

productively in the industry bull Early days of CSR (1980s) and companies largely didnrsquot

realize the importance of local engagement and value creation

waynewaynedunncom

Cameco in 1998

Camecorsquos approach has transformed the socio-economic well-being of Indigenous Peoples in Northern Saskatchewan

29 30

34

37 3739

42 42 43 44

20

25

30

35

40

45

50

1989 1990 1991 1992 1993 1994 1995 1996 1997 1998(Aug)

Perc

enta

ge o

f Tot

al W

orkf

orce

Cameco Aboriginal Employment(includes permanent contractor workforce)

waynewaynedunncom

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 $25 million to northern and aboriginal

initiatives for youth health and wellness education and literacy and culture and recreation Provided $100000 in scholarships to post-secondary

students

waynewaynedunncom

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 ndash NRT Trucking Skunk workssecret meetings Overcoming culture and practice barriers (drilling

underground mining etc) BHAGs Necessity

waynewaynedunncom Slide 28

Placer Dome South Africa

Case study of innovative developmental CSR Demonstrate application of key CSR principles

CSRSustainability Policy Strategic interventions vs shotgun approaches Impact metrics vs expense metrics Partnership strategies (financial operational technical) Leadership and leverage

Slide 29

Overview

bull Background ndash how did this get started

bull The Care Project ndashDeveloping and implementing the plan (challenges partners learnings) ndashBusiness value created

bull HIVAIDS ndash The Crisis and why does it matter ndash Programs and activities

Slide 30

Background 1990s saw massive changes in South

African mining industry ndash over 100000 jobs lost as the industry restructured 1999 ndash Placer Dome purchased a 50

interest in South Deep (WAL) a mine located just outside Johannesburg bull 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 31

Background (cont) In late 1999 after detailed study management

realized that economic reality dictated major restructuring at South Deep

13 of the South Deep workforce (over 2500) workers were retrenched bull 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 ndash that the commitment went

BEYOND THE PAYCHECK

waynewaynedunncom Slide 32

Families amp Communities must benefit from mining

Slide 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 HIVAIDS 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$36 million) budget was established

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

waynewaynedunncom Slide 35

The Mine

2560 Retrenchees bullMozambique bullLesotho bullSouth Africa bullSwaziland bullBotswana

How to successfully provide socio-economic support across remote rural regions of five countries

waynewaynedunncom Slide 36

The Initial 4-Step Plan 1 Consultations with retrenchees in their villages 2 Recruit (from amongst the retrenchees) a group

of 25-30 fieldworkers who would provide frontline support to the retrenchees and their families

3 Locate and register the retrenchees 4 Provide them with training and support to enable

them to become economically active

All of the above to be done in partnership with MDA TEBA and other partners

waynewaynedunncom Slide 37

Reality was different than we expected Retrenchees and their

Unions were still angry over the contested retrenchment Retrencheesrsquo homes were

difficult to locate and registration was often problematic

Consultations with retrenchees

Walking to a remote retrenchee homestead in Lesotho

Slide 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 HIVAIDS Fieldworker training programs Retrenchee education levels Centralized delivery didnrsquot work Project was under-financed We couldnrsquot do it in two years Etc

Slide 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

waynewaynedunncom Slide 40

The Process

Business Operation1 Ongoing availability of Technical Assistance and Business Counselling2 Ongoing faclitiation of skills training needs (ie business agriculture vocational etc)

Decision on Economic Option

Employment StreamEnterprise Stream

Evaluation of Micro Finance Application

Retrenchee is Re-Integrated and Economically Active

PersonalEconomic Plan

Prepared ampAssessed

PersonalEmployment Plan

Prepared

Business amp Financing Plan

Prepared

Employment Planning amp Preparation1 Identification of Employment Options2 Skills Training (VocationalAgricultural etc)3 Employment Counseling Placement (Job searchResume etc)

Business Planning amp Preparation1 Business Orientation a) Introduction to Business b) SkillsProduct Training2 Develop Draft Business Plan (to be reviewed with Counselor) (plan will contain market assessment financial operational and skills upgrading plan)3 Preparation of Micro-Finance Application

Orientation and Awareness Phase1 Registration amp Homestead Visits2 District Counselling Sessions3 Open DaysCareer Fairs4 Financial Lifes Skills Training5 Feedback and Choices Session

Ongoing Processes

Follow-up sessions activities to monitor effectiveness of interventions

Communication and consultation with stakeholders Continuous improvement process (review feedback enhance programs procedures processes)

13-step process Delivered 18 times Across Five countries

Slide 41

Some results 92 of the retrenchees were located

and registered 57 of those (1250) are economically

active 65 (1556) 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 42

Chicken raising business

Slide 43

Furniture making

waynewaynedunncom Slide 44

Unique training programs

waynewaynedunncom Slide 45

Rice farming in Mozambique

Slide 46

Spaza (convenience) shop

Slide 47

And the business value ishellip HIVAIDS 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 ndash 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

waynewaynedunncom Slide 48

ldquoThe project changed the social face of the South African Mining Industryrdquo

Kgosietsile Mogaki

South African Ministry of Minerals and Energy

waynewaynedunncom Slide 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 globally

Through 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 50

And then there is HIVAIDS

RSA ACCOUNTED FOR NEARLY 1 IN 8 OF THE NEW HIV INFECTIONS THAT OCCURRED WORLD WIDE IN 2000

HIV+ PREVALENCE RATE IN WOMEN ATTENDING ANTE-NATAL CLINICS INCREASED FROM 07 IN 1990 TO 248 IN 2001

AVERAGE OF 1700 NEW INFECTIONS PER DAY

LIFE EXPECTANCY WILL DECLINE FROM 65 TO 40 BY 2011

65

40

0

10

20

30

40

50

60

70

2001 2011

Life Expectancy

waynewaynedunncom Slide 51

HIVAIDS Facts (in 2000)

ESTIMATED THAT 12 OF TOTAL RSA POPULATION AND 25 OF MINEWORKERS ARE HIV+

ALREADY 400000 PEOPLE ARE AIDS SICK AND THIS WILL INCREASE TO 14 M BY 2010

YOUNG WOMEN PARTICULARLY VULNERABLE ndash 239 AGED BETWEEN 15 ndash 49 ALREADY INFECTED AND WILL RISE TO 297 BY 2007

AIDS ORPHANS AT PRESENT AMOUNT TO 660000+ AND WILL RISE TO 18M BY 2015

ACCUMULATIVE AIDS DEATHS WILL RISE TO 9M BY 2015

Slide 52

HIVAIDS Impact REDUCED ECONOMIC GROWTH RATE ndash 2010 GDP 20 below a non AIDS

scenario REDUCED POPULATION ndash RSA population 10M smaller than non AIDS scenario SKYROCKETING DEMANDS ON PUBLIC HEALTH SYSTEM - RADICALLY CHANGED PRIVATE SPENDING PATTERNS ndash to healthcare and

funeral costs IMPACT ON SOCIO-ECONOMIC STABILITY (orphans)

HIVAIDS 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 Africa today Nobody can afford to ignore it

Slide 53

HIVAIDS and Gold Mining

$10oz impact if nothing is done (5 of production costs) ~$3oz with maximum

intervention Impact on social and political

stability

Slide 54

HIVAIDS Programming Placer Dome program ndash

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 55

Minesite Program

TRAINING AND EDUCATION

STI amp TB TREATMENT

CONDOM DISTRIBUTION

PEER EDUCATION

VOLUNTARY COUNSELING AND TESTING (VCT)

WELLNESS PROGRAM

MEDICAL REPATRIATION

waynewaynedunncom Slide 56

Minesite Program

waynewaynedunncom Slide 57

Current Community Program

AWARENESS AND EDUCATION PROGRAMS

MOBILE CLINIC

CONDOM amp FEMIDOM DISTRIBUTION

PERIODIC PRESUMPTIVE TREATMENT (PPT)

TREATMENT FOR SEXUALLY TRANSMITTED INFECTIONS ( STI)

waynewaynedunncom Slide 58

COMMUNITY PROGRAM

Community Mobile Clinic

waynewaynedunncom Slide 59

And when HIV prevention doesnrsquot 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 60

Industry Home Based Care

TEBA INFRA-STRUCTURE

TRAINING OF CARE GIVERS

SUPPORT STRUCTURE ndash QUALIFIED STAFF

MONTHLY MEDICATION

WORK WITH OTHER STAKEHOLDERS (EG TRADITIONAL HEALERS)

WORLD BANK DEVELOPMENT INNOVATION AWARD

waynewaynedunncom Slide 61

Home Based Care

Slide 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

waynewaynedunncom Slide 63

Overview of Placer Dome AIDS Programming SOUTH DEEP Sustainable Development Department

bullVoluntary Counseling and testing HIV Negative bullContinue working

On Mine Program Community Program

Modified work program Farm bullAgricultural work Environmental

Medical repatriation

Home Based Care

Benefits Care Positive

HBC EC OPP

Back to work or Re skilled

Wellness Program

waynewaynedunncom Slide 64

But what happens to children and families when the breadwinner canrsquot

work

Slide 65

HIVAIDS and Rural Areas HIVAIDS 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

Slide 66

HIVAIDS 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

waynewaynedunncom

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 CSREthical

Project Award (2004) Numerous other awards Stanford Case Study

waynewaynedunncom Slide 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 69

Planned Program

Care Positive Integrate the Home Based Care

project with the Care process and launch as a fee for service based program to address the social and 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

Care Process

+

Home Based Care

=

Care Positive

waynewaynedunncom Slide 70

Care Positive Summary

waynewaynedunncom

Andhellip 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 $100000 and considerable reputational capital into them Industry went forward with modified HIVAIDS

programming but huge developmental impacts were lost

waynewaynedunncom Slide 72

MDG Impacts of Placer Dome in South Africa

1 Poverty and hunger 2 Some impact on primary education (School

feeding program) 3 Promote gender equality and empower women 4 Reduce child mortality 5 Improve maternal health 6 Combat HIVAIDS malaria and other diseass 7 Ensure environmental sustainability 8 Develop a global partnership for development

(Placer Dome CIDA Civil Society NGOs)

waynewaynedunncom

One thing leads to another

World Bank observed how Placer Domersquos leadership on HIVAIDS 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

waynewaynedunncom

PNG HIVAIDS Scoping mission to

determine what might be done and how Enthusiastic interest from

industry government multi-laterals (WHO UNAIDS World Banketc) ODA (AusAID) CIDA partnered with Place Dome to develop an

HIVAIDS strategy for PNG that integrated industry public sector civil society and international community

waynewaynedunncom

PNG Outcomes (or outputs ndash Irsquom never sure) Partnership with Mining

Industry Civil Society WHO UNAIDS UNDP World Bank PNG AIDS AusAID Oil Palm Industry etc National workshop on

HIVAIDS and publicprivate partnerships SouthSouth Collaboration

Industry government civil society international community study trip to South Africa

waynewaynedunncom

waynewaynedunncom

PNG AIDS mission to South Africa

waynewaynedunncom Slide 78

MDG Impacts of PNG HIVAIDS work

1 Poverty and hunger (nutritional supplements) 2 Some impact on primary education (peripheral) 3 Promote gender equality and empower women 4 Reduce child mortality 5 Improve maternal health 6 Combat HIVAIDS malaria and other diseass 7 Ensure environmental sustainability 8 Develop a global partnership for development

(Placer Dome CIDA Civil Society NGOs)

waynewaynedunncom

Eldorado Gold in Turkey

Major gold find in WestCentral Turkey No successful

mining project launched in decades Eurogold project

built launched and halted by community action in late 1990s ndash still mothballed

UsakKislidag Minesite

Eurogold site

waynewaynedunncom

Eldorado Gold in Turkey

Isolated rural area Nearly half of nearby

communities opposed to mine development Agriculture primary

economic activity in rural communities ndash smallmicro family farms

waynewaynedunncom

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

waynewaynedunncom

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 $075 to $1325 Opened second mine in Turkey

bull Able to deal with controversial watershed issues after relationship success in Usak

waynewaynedunncom Slide 83

MDG Impacts of Eldorado Gold

1 Poverty and hunger (minimal) 2 Some impact on primary education (peripheral) 3 Promote gender equality and empower women 4 Reduce child mortality 5 Improve maternal health 6 Combat HIVAIDS malaria and other diseass 7 Ensure environmental sustainability 8 Develop a global partnership for development

(Placer Dome CIDA Civil Society NGOs)

waynewaynedunncom

Underwater Logging in Ghana

waynewaynedunncom

Private Sector and International Development

Private sector especially resource extraction has a very mixed record bull Some horrendous disasters (Nigeria Warao Peoples in

Venezuela etc) bull Some great successes (Placer Dome Care project

mining and HIVAIDS 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

waynewaynedunncom

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

interestsobjectives overlap

waynewaynedunncom

SDCSR Implementation Challenges

more than a warm fuzzy issue Spending isnrsquot the answer

Plan

Framework

System

Results

Solving social problems Objectives

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Beyond Beads and Trinkets ndash BC Mining Review

A lsquohow torsquo article on mining and CSR

Wayne Dunn

BP Venezuela Indigenous Relations ndash Meeting the Challenge Responsibly and Sustainably

Situational assessment and strategic plan for BP Venezuela Authorized for release by BP

Wayne Dunn

Cameco Community Relations Report

Situational assessment and management strategy Authorized for release by Cameco

Wayne Dunn

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author Beyond Beads lsquon Trinkets A systematic approach to managing community relations

A conference paper describing a systematic approach to community relations management helping companies to methodically develop mutually beneficial relationships with local communities and interests (this is one of the earliest papers on this subject ndash written in 1998)

Wayne Dunn

The costs of conflict with local communities in the extractive industry

Analysis of the cost of community conflicts in the Extractive Sector

Rachel Davis and Daniel M Franks

Creating Shared Value

Harvard Business Review interview with Michael Porter

Video

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Social License Its all about value

Discussion on Social License and shareholder Value

Wayne Dunn

Its about Development Commentary on the CIDAMining Company issue

Wayne Dunn

Integrating corporate strategy and social responsibilitymdashmarket returns from stakeholder engagement

Discussion and analysis on market returns on stakeholder engagement

Witold J Henisz Sinziana Dorobantu and Lite J Narty

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

McGill Reporter ndash Four Burning Questions Wayne Dunn on CSR

Discussion on CSR Wayne Dunn

Miningrsquos contribution to sustainable development ndashan overview

Discussion paper prepared by the International Council on Mining and Metals

Millennium Development Goals

United Nations

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Mining and Agriculture Development

A short lsquohow torsquo guide for mining projects to engage with the local agriculture sector

Al Hingston

PDSA Social Value Brochure

Brochure on social value created by Placer Dome South Africa

Placer Dome

The Value of Social License

Opinion piece published in Northern Miner

Wayne Dunn

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Golden Opportunity When a Canadian multinational laid off hundreds of gold miners in South Africa it went many extra miles to help them get back on their feet

Stanford Business School Case Study on Placer Dome in South Africa

Wayne Dunn

The Changing Resource Development Paradigm Maximizing Sustainable Local Benefits from Resource Development

Strategic thought piece prepared for the government of British Columbia Canada

Wayne Dunn

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

The Disappearing Barriers Between Business And Non-profits Are Driving Innovation

Discussion paper

Katherine Pikus

When Condoms are not enough

World Bank staff magazine article on Placer Dome and South African mining industryrsquos work with HIVAIDS

Craig Andrews

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

MINING AND LOCAL ECONOMIC DEVELOPMENT IN PAPUA NEW GUINEA Preliminary Research on a Potential Pilot Project in Porgera and Lihir

Strategic research and action plan on mining and local economic development in Papua New Guinea prepared for the World Bank

Wayne Dunn

waynewaynedunncom

What we covered

We 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) Publicprivatecivil society collaboration ndash case study

and discussion (CIDA and Mining Companies) Open discussion on topics of interest (time permitting)

waynewaynedunncom

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 howwhy 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

waynewaynedunncom

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 howwhy 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

waynewaynedunncom

Alignment around Shared Value For shareholders For Communities For People For Governments

Private Sector Contributions To International Development

Remember

  • Private Sector Contributions To International Development
  • Session Objectives
  • Map of the morning How we will try to meet the objectives
  • Slide Number 4
  • What is ODA and FDI
  • What is ODA and FDI
  • Why discuss Private Sector Contribution anyway
  • FDIBusiness Outcomes
  • Intention and Strategy Make a Difference
  • Why does the private sector care
  • Community Consultation and Value
  • Itrsquos Real Money
  • CSR is a Value Strategy
  • Social License Failures cost
  • Why is CSR happening
  • The Mining World Has Changed
  • CSR is a complicated space
  • CSR amp Social License
  • Role of business is changing (click image to play video)
  • Case Studies (of successes)
  • Slide Number 21
  • Uranium Industry in Northern Saskatchewan
  • Challenging area
  • Challenging Times
  • Cameco in 1998
  • Cameco in Northern Saskatchewan (2010)
  • So how did Cameco and the industry do it
  • Placer Dome South Africa
  • Slide Number 29
  • Background
  • Background (cont)
  • Families amp Communities must benefit from mining
  • The Care Project
  • Implications
  • Slide Number 35
  • The Initial 4-Step Plan
  • Reality was different than we expected
  • Reality was different than expected
  • Meeting the challenges
  • TheProcess
  • Some results
  • Chicken raising business
  • Furniture making
  • Unique training programs
  • Rice farming in Mozambique
  • Spaza (convenience) shop
  • And the business value ishellip
  • Slide Number 48
  • What was in it for Placer Dome
  • And then there is HIVAIDS
  • HIVAIDS Facts (in 2000)
  • HIVAIDS Impact
  • HIVAIDS and Gold Mining
  • HIVAIDS Programming
  • Minesite Program
  • Minesite Program
  • Current Community Program
  • Community Mobile Clinic
  • And when HIV prevention doesnrsquot work
  • Industry Home Based Care
  • Home Based Care
  • INDUSTRY HOME BASED CARE RESULTS(Year One)
  • Overview of Placer Dome AIDS Programming
  • Slide Number 64
  • HIVAIDS and Rural Areas
  • HIVAIDS and Rural Areas
  • Reputational Results for Placer Dome
  • Where to next
  • Planned Program
  • Care Positive Summary
  • Andhellip
  • MDG Impacts of Placer Dome in South Africa
  • One thing leads to another
  • PNG HIVAIDS
  • PNG Outcomes (or outputs ndash Irsquom never sure)
  • Slide Number 76
  • PNG AIDS mission to South Africa
  • MDG Impacts of PNG HIVAIDS work
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • MDG Impacts of Eldorado Gold
  • Underwater Logging in Ghana
  • Private Sector and International Development
  • Group Exercise
  • Slide Number 87
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • What we covered
  • Session Objectives
  • Session Objectives
  • Remember
Page 3: Private Sector Contributions To International Development – McGill Executive Education Program Lecture

waynewaynedunncom

Map of the morning How we will try to meet the objectives We 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) Publicprivatecivil society collaboration ndash case study

and discussion (CIDA and Mining Companies) Open discussion on topics of interest (time permitting)

waynewaynedunncom

Alignment around Shared Value For shareholders For Communities For People For Governments

Private Sector Contributions To International Development

waynewaynedunncom

What is ODA and FDI

Official Development Assistance (OECD DAC Definition) The DAC defines ODA as ldquothose flows to countries and

territories on the DAC List of ODA Recipients and to multilateral development institutions which are bull i provided by official agencies including state and local

governments or by their executive agencies and ii each transaction of which

bull a) is administered with the promotion of the economic development and welfare of developing countries as its main objective and

bull 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)rdquo

waynewaynedunncom

What is ODA and FDI

Foreign Direct Investment (OECD Definition) Foreign direct investment (FDI) is the category of international investment that reflects the objective of a resident entity in one economy to obtain a lasting interest in an enterprise resident in another economy

Why discuss Private Sector Contribution anyway In a speech on Democratizing Development Economics delivered at Georgetown University last September World Bank President Robert Zoellick pointed out that ldquoIn the 2000s Foreign Direct Investment (FDI) inflows were the single biggest source of capital for developing countries and a critical input for technology transfer in developing country firmsrdquo

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

waynewaynedunncom

FDIBusiness Outcomes

waynewaynedunncom

Intention and Strategy Make a Difference In the 1960s Petroleum exploration upstream closed the Orinoco making the water stagnant and devastated the life of the Warao Peoples

waynewaynedunncom

Why does the private sector care

Market is placing increasing value on intangibles Reputational

Capital is closely linked to shareholder value

17

32

68 80 80

83

68

32 20 20

1975 1985 1995 2005 2010

Components of SampP Market Value Intangible Assets Tangible Assets

Adapted from Milla Craigrsquos presentation to ISID ndash March 30 2012

waynewaynedunncom

Community Consultation and Value Study of 26 Gold Mines

owned by 19 publicly traded companies

Period from 1993 to 2008

Examined and coded over 50000 stakeholder events to develop an index of cooperationconflict

Effective consultation and engagement reduced discount rate on gold in ground from 72 to between 12 ndash 32

waynewaynedunncom

Itrsquos Real Money

$280000000

$670000000 $880000000

$720000000

$330000000

$120000000

$0

$100000000

$200000000

$300000000

$400000000

$500000000

$600000000

$700000000

$800000000

$900000000

$1000000000

72 33 12

Lost Value

Value in market

Market value of $1 billion of gold in the ground based on consultation and conflict

CSR is a Value Strategy

Share price of a CSR failure that rendered a multi-billion dollar reserve un-developable Good CSR creates value for company community and other stakeholders

~$1300 $029

Social License Failures cost

Bougaineville (PNG)- corporate practices were directly implicated in provoking civil war allegedly cost Rio Tinto $3 billion (Stanford Univ study) Tambo Grande (Peru) OvacikEurogold (Turkey)

waynewaynedunncom

Globalized world is demanding more of businesshellip Global media ndash The CNNization of the world ndash remote local

issues direct to television screens Social Media ndash Youtube Facebook Twitter etc Everything is

Everywhere and Organizable Proliferation of NGOs and CBOs ndash direct well organized and

financed support to communities

Why is CSR happening

Internet and other communications innovations ndash direct communications from remote projects to worldwide audience

Global Democratization ndash increased attention to local issues

waynewaynedunncom

bull ldquoWe are determined to provide multi-skilling to workers and assist them to cope with retrenchments This is a must and not a choice for industryrdquo

bull ldquoIt 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 pastrdquo Hon Phumizile Mlambo-Ngcuka

South Africa Minister of Minerals and Energy

The Mining World Has Changed

waynewaynedunncom

CSR is a complicated space

135 Codes 929 Page Report And that was in Jan 2007

waynewaynedunncom

CSR amp 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

waynewaynedunncom

Role of business is changing (click image to play video)

Creating Shared Value - Harvard Business Review

waynewaynedunncom

Case Studies (of successes)

Cameco in Northern Saskatchewan ndash indigenous employment and development (Industry Social License) Placer Dome South Africa ndash community development and

womenrsquos empowerment HIVAIDS programming leadership Placer Dome in Papua New Guinea ndash leading public private

partnerships in HIVAIDS programming (and southsouth cooperation) Eldorado Gold in Turkey ndash supporting community priorities CSR Developments in Ghana ndash underwater logging and

social license

waynewaynedunncom

1 Eradicate extreme poverty and hunger 2 Achieve universal primary education 3 Promote gender equality and empower women 4 Reduce child mortality 5 Improve maternal health 6 Combat HIVAIDS malaria and other diseass 7 Ensure environmental sustainability 8 Develop a global partnership for development

waynewaynedunncom

Uranium Industry in Northern Saskatchewan Huge remote area (larger than all but five US States (Alaska Texas California Montana and New Mexico)

Waynersquos World

waynewaynedunncom

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

waynewaynedunncom

Challenging Times

Strong opposition to industry developing bull From Europe bull From within governing party

Industry had difficulties from all sides bull Local stakeholders didnrsquot have the capacity to engage

productively in the industry bull Early days of CSR (1980s) and companies largely didnrsquot

realize the importance of local engagement and value creation

waynewaynedunncom

Cameco in 1998

Camecorsquos approach has transformed the socio-economic well-being of Indigenous Peoples in Northern Saskatchewan

29 30

34

37 3739

42 42 43 44

20

25

30

35

40

45

50

1989 1990 1991 1992 1993 1994 1995 1996 1997 1998(Aug)

Perc

enta

ge o

f Tot

al W

orkf

orce

Cameco Aboriginal Employment(includes permanent contractor workforce)

waynewaynedunncom

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 $25 million to northern and aboriginal

initiatives for youth health and wellness education and literacy and culture and recreation Provided $100000 in scholarships to post-secondary

students

waynewaynedunncom

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 ndash NRT Trucking Skunk workssecret meetings Overcoming culture and practice barriers (drilling

underground mining etc) BHAGs Necessity

waynewaynedunncom Slide 28

Placer Dome South Africa

Case study of innovative developmental CSR Demonstrate application of key CSR principles

CSRSustainability Policy Strategic interventions vs shotgun approaches Impact metrics vs expense metrics Partnership strategies (financial operational technical) Leadership and leverage

Slide 29

Overview

bull Background ndash how did this get started

bull The Care Project ndashDeveloping and implementing the plan (challenges partners learnings) ndashBusiness value created

bull HIVAIDS ndash The Crisis and why does it matter ndash Programs and activities

Slide 30

Background 1990s saw massive changes in South

African mining industry ndash over 100000 jobs lost as the industry restructured 1999 ndash Placer Dome purchased a 50

interest in South Deep (WAL) a mine located just outside Johannesburg bull 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 31

Background (cont) In late 1999 after detailed study management

realized that economic reality dictated major restructuring at South Deep

13 of the South Deep workforce (over 2500) workers were retrenched bull 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 ndash that the commitment went

BEYOND THE PAYCHECK

waynewaynedunncom Slide 32

Families amp Communities must benefit from mining

Slide 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 HIVAIDS 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$36 million) budget was established

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

waynewaynedunncom Slide 35

The Mine

2560 Retrenchees bullMozambique bullLesotho bullSouth Africa bullSwaziland bullBotswana

How to successfully provide socio-economic support across remote rural regions of five countries

waynewaynedunncom Slide 36

The Initial 4-Step Plan 1 Consultations with retrenchees in their villages 2 Recruit (from amongst the retrenchees) a group

of 25-30 fieldworkers who would provide frontline support to the retrenchees and their families

3 Locate and register the retrenchees 4 Provide them with training and support to enable

them to become economically active

All of the above to be done in partnership with MDA TEBA and other partners

waynewaynedunncom Slide 37

Reality was different than we expected Retrenchees and their

Unions were still angry over the contested retrenchment Retrencheesrsquo homes were

difficult to locate and registration was often problematic

Consultations with retrenchees

Walking to a remote retrenchee homestead in Lesotho

Slide 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 HIVAIDS Fieldworker training programs Retrenchee education levels Centralized delivery didnrsquot work Project was under-financed We couldnrsquot do it in two years Etc

Slide 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

waynewaynedunncom Slide 40

The Process

Business Operation1 Ongoing availability of Technical Assistance and Business Counselling2 Ongoing faclitiation of skills training needs (ie business agriculture vocational etc)

Decision on Economic Option

Employment StreamEnterprise Stream

Evaluation of Micro Finance Application

Retrenchee is Re-Integrated and Economically Active

PersonalEconomic Plan

Prepared ampAssessed

PersonalEmployment Plan

Prepared

Business amp Financing Plan

Prepared

Employment Planning amp Preparation1 Identification of Employment Options2 Skills Training (VocationalAgricultural etc)3 Employment Counseling Placement (Job searchResume etc)

Business Planning amp Preparation1 Business Orientation a) Introduction to Business b) SkillsProduct Training2 Develop Draft Business Plan (to be reviewed with Counselor) (plan will contain market assessment financial operational and skills upgrading plan)3 Preparation of Micro-Finance Application

Orientation and Awareness Phase1 Registration amp Homestead Visits2 District Counselling Sessions3 Open DaysCareer Fairs4 Financial Lifes Skills Training5 Feedback and Choices Session

Ongoing Processes

Follow-up sessions activities to monitor effectiveness of interventions

Communication and consultation with stakeholders Continuous improvement process (review feedback enhance programs procedures processes)

13-step process Delivered 18 times Across Five countries

Slide 41

Some results 92 of the retrenchees were located

and registered 57 of those (1250) are economically

active 65 (1556) 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 42

Chicken raising business

Slide 43

Furniture making

waynewaynedunncom Slide 44

Unique training programs

waynewaynedunncom Slide 45

Rice farming in Mozambique

Slide 46

Spaza (convenience) shop

Slide 47

And the business value ishellip HIVAIDS 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 ndash 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

waynewaynedunncom Slide 48

ldquoThe project changed the social face of the South African Mining Industryrdquo

Kgosietsile Mogaki

South African Ministry of Minerals and Energy

waynewaynedunncom Slide 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 globally

Through 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 50

And then there is HIVAIDS

RSA ACCOUNTED FOR NEARLY 1 IN 8 OF THE NEW HIV INFECTIONS THAT OCCURRED WORLD WIDE IN 2000

HIV+ PREVALENCE RATE IN WOMEN ATTENDING ANTE-NATAL CLINICS INCREASED FROM 07 IN 1990 TO 248 IN 2001

AVERAGE OF 1700 NEW INFECTIONS PER DAY

LIFE EXPECTANCY WILL DECLINE FROM 65 TO 40 BY 2011

65

40

0

10

20

30

40

50

60

70

2001 2011

Life Expectancy

waynewaynedunncom Slide 51

HIVAIDS Facts (in 2000)

ESTIMATED THAT 12 OF TOTAL RSA POPULATION AND 25 OF MINEWORKERS ARE HIV+

ALREADY 400000 PEOPLE ARE AIDS SICK AND THIS WILL INCREASE TO 14 M BY 2010

YOUNG WOMEN PARTICULARLY VULNERABLE ndash 239 AGED BETWEEN 15 ndash 49 ALREADY INFECTED AND WILL RISE TO 297 BY 2007

AIDS ORPHANS AT PRESENT AMOUNT TO 660000+ AND WILL RISE TO 18M BY 2015

ACCUMULATIVE AIDS DEATHS WILL RISE TO 9M BY 2015

Slide 52

HIVAIDS Impact REDUCED ECONOMIC GROWTH RATE ndash 2010 GDP 20 below a non AIDS

scenario REDUCED POPULATION ndash RSA population 10M smaller than non AIDS scenario SKYROCKETING DEMANDS ON PUBLIC HEALTH SYSTEM - RADICALLY CHANGED PRIVATE SPENDING PATTERNS ndash to healthcare and

funeral costs IMPACT ON SOCIO-ECONOMIC STABILITY (orphans)

HIVAIDS 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 Africa today Nobody can afford to ignore it

Slide 53

HIVAIDS and Gold Mining

$10oz impact if nothing is done (5 of production costs) ~$3oz with maximum

intervention Impact on social and political

stability

Slide 54

HIVAIDS Programming Placer Dome program ndash

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 55

Minesite Program

TRAINING AND EDUCATION

STI amp TB TREATMENT

CONDOM DISTRIBUTION

PEER EDUCATION

VOLUNTARY COUNSELING AND TESTING (VCT)

WELLNESS PROGRAM

MEDICAL REPATRIATION

waynewaynedunncom Slide 56

Minesite Program

waynewaynedunncom Slide 57

Current Community Program

AWARENESS AND EDUCATION PROGRAMS

MOBILE CLINIC

CONDOM amp FEMIDOM DISTRIBUTION

PERIODIC PRESUMPTIVE TREATMENT (PPT)

TREATMENT FOR SEXUALLY TRANSMITTED INFECTIONS ( STI)

waynewaynedunncom Slide 58

COMMUNITY PROGRAM

Community Mobile Clinic

waynewaynedunncom Slide 59

And when HIV prevention doesnrsquot 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 60

Industry Home Based Care

TEBA INFRA-STRUCTURE

TRAINING OF CARE GIVERS

SUPPORT STRUCTURE ndash QUALIFIED STAFF

MONTHLY MEDICATION

WORK WITH OTHER STAKEHOLDERS (EG TRADITIONAL HEALERS)

WORLD BANK DEVELOPMENT INNOVATION AWARD

waynewaynedunncom Slide 61

Home Based Care

Slide 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

waynewaynedunncom Slide 63

Overview of Placer Dome AIDS Programming SOUTH DEEP Sustainable Development Department

bullVoluntary Counseling and testing HIV Negative bullContinue working

On Mine Program Community Program

Modified work program Farm bullAgricultural work Environmental

Medical repatriation

Home Based Care

Benefits Care Positive

HBC EC OPP

Back to work or Re skilled

Wellness Program

waynewaynedunncom Slide 64

But what happens to children and families when the breadwinner canrsquot

work

Slide 65

HIVAIDS and Rural Areas HIVAIDS 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

Slide 66

HIVAIDS 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

waynewaynedunncom

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 CSREthical

Project Award (2004) Numerous other awards Stanford Case Study

waynewaynedunncom Slide 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 69

Planned Program

Care Positive Integrate the Home Based Care

project with the Care process and launch as a fee for service based program to address the social and 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

Care Process

+

Home Based Care

=

Care Positive

waynewaynedunncom Slide 70

Care Positive Summary

waynewaynedunncom

Andhellip 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 $100000 and considerable reputational capital into them Industry went forward with modified HIVAIDS

programming but huge developmental impacts were lost

waynewaynedunncom Slide 72

MDG Impacts of Placer Dome in South Africa

1 Poverty and hunger 2 Some impact on primary education (School

feeding program) 3 Promote gender equality and empower women 4 Reduce child mortality 5 Improve maternal health 6 Combat HIVAIDS malaria and other diseass 7 Ensure environmental sustainability 8 Develop a global partnership for development

(Placer Dome CIDA Civil Society NGOs)

waynewaynedunncom

One thing leads to another

World Bank observed how Placer Domersquos leadership on HIVAIDS 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

waynewaynedunncom

PNG HIVAIDS Scoping mission to

determine what might be done and how Enthusiastic interest from

industry government multi-laterals (WHO UNAIDS World Banketc) ODA (AusAID) CIDA partnered with Place Dome to develop an

HIVAIDS strategy for PNG that integrated industry public sector civil society and international community

waynewaynedunncom

PNG Outcomes (or outputs ndash Irsquom never sure) Partnership with Mining

Industry Civil Society WHO UNAIDS UNDP World Bank PNG AIDS AusAID Oil Palm Industry etc National workshop on

HIVAIDS and publicprivate partnerships SouthSouth Collaboration

Industry government civil society international community study trip to South Africa

waynewaynedunncom

waynewaynedunncom

PNG AIDS mission to South Africa

waynewaynedunncom Slide 78

MDG Impacts of PNG HIVAIDS work

1 Poverty and hunger (nutritional supplements) 2 Some impact on primary education (peripheral) 3 Promote gender equality and empower women 4 Reduce child mortality 5 Improve maternal health 6 Combat HIVAIDS malaria and other diseass 7 Ensure environmental sustainability 8 Develop a global partnership for development

(Placer Dome CIDA Civil Society NGOs)

waynewaynedunncom

Eldorado Gold in Turkey

Major gold find in WestCentral Turkey No successful

mining project launched in decades Eurogold project

built launched and halted by community action in late 1990s ndash still mothballed

UsakKislidag Minesite

Eurogold site

waynewaynedunncom

Eldorado Gold in Turkey

Isolated rural area Nearly half of nearby

communities opposed to mine development Agriculture primary

economic activity in rural communities ndash smallmicro family farms

waynewaynedunncom

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

waynewaynedunncom

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 $075 to $1325 Opened second mine in Turkey

bull Able to deal with controversial watershed issues after relationship success in Usak

waynewaynedunncom Slide 83

MDG Impacts of Eldorado Gold

1 Poverty and hunger (minimal) 2 Some impact on primary education (peripheral) 3 Promote gender equality and empower women 4 Reduce child mortality 5 Improve maternal health 6 Combat HIVAIDS malaria and other diseass 7 Ensure environmental sustainability 8 Develop a global partnership for development

(Placer Dome CIDA Civil Society NGOs)

waynewaynedunncom

Underwater Logging in Ghana

waynewaynedunncom

Private Sector and International Development

Private sector especially resource extraction has a very mixed record bull Some horrendous disasters (Nigeria Warao Peoples in

Venezuela etc) bull Some great successes (Placer Dome Care project

mining and HIVAIDS 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

waynewaynedunncom

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

interestsobjectives overlap

waynewaynedunncom

SDCSR Implementation Challenges

more than a warm fuzzy issue Spending isnrsquot the answer

Plan

Framework

System

Results

Solving social problems Objectives

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Beyond Beads and Trinkets ndash BC Mining Review

A lsquohow torsquo article on mining and CSR

Wayne Dunn

BP Venezuela Indigenous Relations ndash Meeting the Challenge Responsibly and Sustainably

Situational assessment and strategic plan for BP Venezuela Authorized for release by BP

Wayne Dunn

Cameco Community Relations Report

Situational assessment and management strategy Authorized for release by Cameco

Wayne Dunn

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author Beyond Beads lsquon Trinkets A systematic approach to managing community relations

A conference paper describing a systematic approach to community relations management helping companies to methodically develop mutually beneficial relationships with local communities and interests (this is one of the earliest papers on this subject ndash written in 1998)

Wayne Dunn

The costs of conflict with local communities in the extractive industry

Analysis of the cost of community conflicts in the Extractive Sector

Rachel Davis and Daniel M Franks

Creating Shared Value

Harvard Business Review interview with Michael Porter

Video

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Social License Its all about value

Discussion on Social License and shareholder Value

Wayne Dunn

Its about Development Commentary on the CIDAMining Company issue

Wayne Dunn

Integrating corporate strategy and social responsibilitymdashmarket returns from stakeholder engagement

Discussion and analysis on market returns on stakeholder engagement

Witold J Henisz Sinziana Dorobantu and Lite J Narty

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

McGill Reporter ndash Four Burning Questions Wayne Dunn on CSR

Discussion on CSR Wayne Dunn

Miningrsquos contribution to sustainable development ndashan overview

Discussion paper prepared by the International Council on Mining and Metals

Millennium Development Goals

United Nations

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Mining and Agriculture Development

A short lsquohow torsquo guide for mining projects to engage with the local agriculture sector

Al Hingston

PDSA Social Value Brochure

Brochure on social value created by Placer Dome South Africa

Placer Dome

The Value of Social License

Opinion piece published in Northern Miner

Wayne Dunn

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Golden Opportunity When a Canadian multinational laid off hundreds of gold miners in South Africa it went many extra miles to help them get back on their feet

Stanford Business School Case Study on Placer Dome in South Africa

Wayne Dunn

The Changing Resource Development Paradigm Maximizing Sustainable Local Benefits from Resource Development

Strategic thought piece prepared for the government of British Columbia Canada

Wayne Dunn

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

The Disappearing Barriers Between Business And Non-profits Are Driving Innovation

Discussion paper

Katherine Pikus

When Condoms are not enough

World Bank staff magazine article on Placer Dome and South African mining industryrsquos work with HIVAIDS

Craig Andrews

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

MINING AND LOCAL ECONOMIC DEVELOPMENT IN PAPUA NEW GUINEA Preliminary Research on a Potential Pilot Project in Porgera and Lihir

Strategic research and action plan on mining and local economic development in Papua New Guinea prepared for the World Bank

Wayne Dunn

waynewaynedunncom

What we covered

We 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) Publicprivatecivil society collaboration ndash case study

and discussion (CIDA and Mining Companies) Open discussion on topics of interest (time permitting)

waynewaynedunncom

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 howwhy 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

waynewaynedunncom

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 howwhy 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

waynewaynedunncom

Alignment around Shared Value For shareholders For Communities For People For Governments

Private Sector Contributions To International Development

Remember

  • Private Sector Contributions To International Development
  • Session Objectives
  • Map of the morning How we will try to meet the objectives
  • Slide Number 4
  • What is ODA and FDI
  • What is ODA and FDI
  • Why discuss Private Sector Contribution anyway
  • FDIBusiness Outcomes
  • Intention and Strategy Make a Difference
  • Why does the private sector care
  • Community Consultation and Value
  • Itrsquos Real Money
  • CSR is a Value Strategy
  • Social License Failures cost
  • Why is CSR happening
  • The Mining World Has Changed
  • CSR is a complicated space
  • CSR amp Social License
  • Role of business is changing (click image to play video)
  • Case Studies (of successes)
  • Slide Number 21
  • Uranium Industry in Northern Saskatchewan
  • Challenging area
  • Challenging Times
  • Cameco in 1998
  • Cameco in Northern Saskatchewan (2010)
  • So how did Cameco and the industry do it
  • Placer Dome South Africa
  • Slide Number 29
  • Background
  • Background (cont)
  • Families amp Communities must benefit from mining
  • The Care Project
  • Implications
  • Slide Number 35
  • The Initial 4-Step Plan
  • Reality was different than we expected
  • Reality was different than expected
  • Meeting the challenges
  • TheProcess
  • Some results
  • Chicken raising business
  • Furniture making
  • Unique training programs
  • Rice farming in Mozambique
  • Spaza (convenience) shop
  • And the business value ishellip
  • Slide Number 48
  • What was in it for Placer Dome
  • And then there is HIVAIDS
  • HIVAIDS Facts (in 2000)
  • HIVAIDS Impact
  • HIVAIDS and Gold Mining
  • HIVAIDS Programming
  • Minesite Program
  • Minesite Program
  • Current Community Program
  • Community Mobile Clinic
  • And when HIV prevention doesnrsquot work
  • Industry Home Based Care
  • Home Based Care
  • INDUSTRY HOME BASED CARE RESULTS(Year One)
  • Overview of Placer Dome AIDS Programming
  • Slide Number 64
  • HIVAIDS and Rural Areas
  • HIVAIDS and Rural Areas
  • Reputational Results for Placer Dome
  • Where to next
  • Planned Program
  • Care Positive Summary
  • Andhellip
  • MDG Impacts of Placer Dome in South Africa
  • One thing leads to another
  • PNG HIVAIDS
  • PNG Outcomes (or outputs ndash Irsquom never sure)
  • Slide Number 76
  • PNG AIDS mission to South Africa
  • MDG Impacts of PNG HIVAIDS work
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • MDG Impacts of Eldorado Gold
  • Underwater Logging in Ghana
  • Private Sector and International Development
  • Group Exercise
  • Slide Number 87
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • What we covered
  • Session Objectives
  • Session Objectives
  • Remember
Page 4: Private Sector Contributions To International Development – McGill Executive Education Program Lecture

waynewaynedunncom

Alignment around Shared Value For shareholders For Communities For People For Governments

Private Sector Contributions To International Development

waynewaynedunncom

What is ODA and FDI

Official Development Assistance (OECD DAC Definition) The DAC defines ODA as ldquothose flows to countries and

territories on the DAC List of ODA Recipients and to multilateral development institutions which are bull i provided by official agencies including state and local

governments or by their executive agencies and ii each transaction of which

bull a) is administered with the promotion of the economic development and welfare of developing countries as its main objective and

bull 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)rdquo

waynewaynedunncom

What is ODA and FDI

Foreign Direct Investment (OECD Definition) Foreign direct investment (FDI) is the category of international investment that reflects the objective of a resident entity in one economy to obtain a lasting interest in an enterprise resident in another economy

Why discuss Private Sector Contribution anyway In a speech on Democratizing Development Economics delivered at Georgetown University last September World Bank President Robert Zoellick pointed out that ldquoIn the 2000s Foreign Direct Investment (FDI) inflows were the single biggest source of capital for developing countries and a critical input for technology transfer in developing country firmsrdquo

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

waynewaynedunncom

FDIBusiness Outcomes

waynewaynedunncom

Intention and Strategy Make a Difference In the 1960s Petroleum exploration upstream closed the Orinoco making the water stagnant and devastated the life of the Warao Peoples

waynewaynedunncom

Why does the private sector care

Market is placing increasing value on intangibles Reputational

Capital is closely linked to shareholder value

17

32

68 80 80

83

68

32 20 20

1975 1985 1995 2005 2010

Components of SampP Market Value Intangible Assets Tangible Assets

Adapted from Milla Craigrsquos presentation to ISID ndash March 30 2012

waynewaynedunncom

Community Consultation and Value Study of 26 Gold Mines

owned by 19 publicly traded companies

Period from 1993 to 2008

Examined and coded over 50000 stakeholder events to develop an index of cooperationconflict

Effective consultation and engagement reduced discount rate on gold in ground from 72 to between 12 ndash 32

waynewaynedunncom

Itrsquos Real Money

$280000000

$670000000 $880000000

$720000000

$330000000

$120000000

$0

$100000000

$200000000

$300000000

$400000000

$500000000

$600000000

$700000000

$800000000

$900000000

$1000000000

72 33 12

Lost Value

Value in market

Market value of $1 billion of gold in the ground based on consultation and conflict

CSR is a Value Strategy

Share price of a CSR failure that rendered a multi-billion dollar reserve un-developable Good CSR creates value for company community and other stakeholders

~$1300 $029

Social License Failures cost

Bougaineville (PNG)- corporate practices were directly implicated in provoking civil war allegedly cost Rio Tinto $3 billion (Stanford Univ study) Tambo Grande (Peru) OvacikEurogold (Turkey)

waynewaynedunncom

Globalized world is demanding more of businesshellip Global media ndash The CNNization of the world ndash remote local

issues direct to television screens Social Media ndash Youtube Facebook Twitter etc Everything is

Everywhere and Organizable Proliferation of NGOs and CBOs ndash direct well organized and

financed support to communities

Why is CSR happening

Internet and other communications innovations ndash direct communications from remote projects to worldwide audience

Global Democratization ndash increased attention to local issues

waynewaynedunncom

bull ldquoWe are determined to provide multi-skilling to workers and assist them to cope with retrenchments This is a must and not a choice for industryrdquo

bull ldquoIt 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 pastrdquo Hon Phumizile Mlambo-Ngcuka

South Africa Minister of Minerals and Energy

The Mining World Has Changed

waynewaynedunncom

CSR is a complicated space

135 Codes 929 Page Report And that was in Jan 2007

waynewaynedunncom

CSR amp 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

waynewaynedunncom

Role of business is changing (click image to play video)

Creating Shared Value - Harvard Business Review

waynewaynedunncom

Case Studies (of successes)

Cameco in Northern Saskatchewan ndash indigenous employment and development (Industry Social License) Placer Dome South Africa ndash community development and

womenrsquos empowerment HIVAIDS programming leadership Placer Dome in Papua New Guinea ndash leading public private

partnerships in HIVAIDS programming (and southsouth cooperation) Eldorado Gold in Turkey ndash supporting community priorities CSR Developments in Ghana ndash underwater logging and

social license

waynewaynedunncom

1 Eradicate extreme poverty and hunger 2 Achieve universal primary education 3 Promote gender equality and empower women 4 Reduce child mortality 5 Improve maternal health 6 Combat HIVAIDS malaria and other diseass 7 Ensure environmental sustainability 8 Develop a global partnership for development

waynewaynedunncom

Uranium Industry in Northern Saskatchewan Huge remote area (larger than all but five US States (Alaska Texas California Montana and New Mexico)

Waynersquos World

waynewaynedunncom

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

waynewaynedunncom

Challenging Times

Strong opposition to industry developing bull From Europe bull From within governing party

Industry had difficulties from all sides bull Local stakeholders didnrsquot have the capacity to engage

productively in the industry bull Early days of CSR (1980s) and companies largely didnrsquot

realize the importance of local engagement and value creation

waynewaynedunncom

Cameco in 1998

Camecorsquos approach has transformed the socio-economic well-being of Indigenous Peoples in Northern Saskatchewan

29 30

34

37 3739

42 42 43 44

20

25

30

35

40

45

50

1989 1990 1991 1992 1993 1994 1995 1996 1997 1998(Aug)

Perc

enta

ge o

f Tot

al W

orkf

orce

Cameco Aboriginal Employment(includes permanent contractor workforce)

waynewaynedunncom

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 $25 million to northern and aboriginal

initiatives for youth health and wellness education and literacy and culture and recreation Provided $100000 in scholarships to post-secondary

students

waynewaynedunncom

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 ndash NRT Trucking Skunk workssecret meetings Overcoming culture and practice barriers (drilling

underground mining etc) BHAGs Necessity

waynewaynedunncom Slide 28

Placer Dome South Africa

Case study of innovative developmental CSR Demonstrate application of key CSR principles

CSRSustainability Policy Strategic interventions vs shotgun approaches Impact metrics vs expense metrics Partnership strategies (financial operational technical) Leadership and leverage

Slide 29

Overview

bull Background ndash how did this get started

bull The Care Project ndashDeveloping and implementing the plan (challenges partners learnings) ndashBusiness value created

bull HIVAIDS ndash The Crisis and why does it matter ndash Programs and activities

Slide 30

Background 1990s saw massive changes in South

African mining industry ndash over 100000 jobs lost as the industry restructured 1999 ndash Placer Dome purchased a 50

interest in South Deep (WAL) a mine located just outside Johannesburg bull 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 31

Background (cont) In late 1999 after detailed study management

realized that economic reality dictated major restructuring at South Deep

13 of the South Deep workforce (over 2500) workers were retrenched bull 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 ndash that the commitment went

BEYOND THE PAYCHECK

waynewaynedunncom Slide 32

Families amp Communities must benefit from mining

Slide 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 HIVAIDS 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$36 million) budget was established

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

waynewaynedunncom Slide 35

The Mine

2560 Retrenchees bullMozambique bullLesotho bullSouth Africa bullSwaziland bullBotswana

How to successfully provide socio-economic support across remote rural regions of five countries

waynewaynedunncom Slide 36

The Initial 4-Step Plan 1 Consultations with retrenchees in their villages 2 Recruit (from amongst the retrenchees) a group

of 25-30 fieldworkers who would provide frontline support to the retrenchees and their families

3 Locate and register the retrenchees 4 Provide them with training and support to enable

them to become economically active

All of the above to be done in partnership with MDA TEBA and other partners

waynewaynedunncom Slide 37

Reality was different than we expected Retrenchees and their

Unions were still angry over the contested retrenchment Retrencheesrsquo homes were

difficult to locate and registration was often problematic

Consultations with retrenchees

Walking to a remote retrenchee homestead in Lesotho

Slide 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 HIVAIDS Fieldworker training programs Retrenchee education levels Centralized delivery didnrsquot work Project was under-financed We couldnrsquot do it in two years Etc

Slide 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

waynewaynedunncom Slide 40

The Process

Business Operation1 Ongoing availability of Technical Assistance and Business Counselling2 Ongoing faclitiation of skills training needs (ie business agriculture vocational etc)

Decision on Economic Option

Employment StreamEnterprise Stream

Evaluation of Micro Finance Application

Retrenchee is Re-Integrated and Economically Active

PersonalEconomic Plan

Prepared ampAssessed

PersonalEmployment Plan

Prepared

Business amp Financing Plan

Prepared

Employment Planning amp Preparation1 Identification of Employment Options2 Skills Training (VocationalAgricultural etc)3 Employment Counseling Placement (Job searchResume etc)

Business Planning amp Preparation1 Business Orientation a) Introduction to Business b) SkillsProduct Training2 Develop Draft Business Plan (to be reviewed with Counselor) (plan will contain market assessment financial operational and skills upgrading plan)3 Preparation of Micro-Finance Application

Orientation and Awareness Phase1 Registration amp Homestead Visits2 District Counselling Sessions3 Open DaysCareer Fairs4 Financial Lifes Skills Training5 Feedback and Choices Session

Ongoing Processes

Follow-up sessions activities to monitor effectiveness of interventions

Communication and consultation with stakeholders Continuous improvement process (review feedback enhance programs procedures processes)

13-step process Delivered 18 times Across Five countries

Slide 41

Some results 92 of the retrenchees were located

and registered 57 of those (1250) are economically

active 65 (1556) 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 42

Chicken raising business

Slide 43

Furniture making

waynewaynedunncom Slide 44

Unique training programs

waynewaynedunncom Slide 45

Rice farming in Mozambique

Slide 46

Spaza (convenience) shop

Slide 47

And the business value ishellip HIVAIDS 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 ndash 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

waynewaynedunncom Slide 48

ldquoThe project changed the social face of the South African Mining Industryrdquo

Kgosietsile Mogaki

South African Ministry of Minerals and Energy

waynewaynedunncom Slide 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 globally

Through 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 50

And then there is HIVAIDS

RSA ACCOUNTED FOR NEARLY 1 IN 8 OF THE NEW HIV INFECTIONS THAT OCCURRED WORLD WIDE IN 2000

HIV+ PREVALENCE RATE IN WOMEN ATTENDING ANTE-NATAL CLINICS INCREASED FROM 07 IN 1990 TO 248 IN 2001

AVERAGE OF 1700 NEW INFECTIONS PER DAY

LIFE EXPECTANCY WILL DECLINE FROM 65 TO 40 BY 2011

65

40

0

10

20

30

40

50

60

70

2001 2011

Life Expectancy

waynewaynedunncom Slide 51

HIVAIDS Facts (in 2000)

ESTIMATED THAT 12 OF TOTAL RSA POPULATION AND 25 OF MINEWORKERS ARE HIV+

ALREADY 400000 PEOPLE ARE AIDS SICK AND THIS WILL INCREASE TO 14 M BY 2010

YOUNG WOMEN PARTICULARLY VULNERABLE ndash 239 AGED BETWEEN 15 ndash 49 ALREADY INFECTED AND WILL RISE TO 297 BY 2007

AIDS ORPHANS AT PRESENT AMOUNT TO 660000+ AND WILL RISE TO 18M BY 2015

ACCUMULATIVE AIDS DEATHS WILL RISE TO 9M BY 2015

Slide 52

HIVAIDS Impact REDUCED ECONOMIC GROWTH RATE ndash 2010 GDP 20 below a non AIDS

scenario REDUCED POPULATION ndash RSA population 10M smaller than non AIDS scenario SKYROCKETING DEMANDS ON PUBLIC HEALTH SYSTEM - RADICALLY CHANGED PRIVATE SPENDING PATTERNS ndash to healthcare and

funeral costs IMPACT ON SOCIO-ECONOMIC STABILITY (orphans)

HIVAIDS 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 Africa today Nobody can afford to ignore it

Slide 53

HIVAIDS and Gold Mining

$10oz impact if nothing is done (5 of production costs) ~$3oz with maximum

intervention Impact on social and political

stability

Slide 54

HIVAIDS Programming Placer Dome program ndash

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 55

Minesite Program

TRAINING AND EDUCATION

STI amp TB TREATMENT

CONDOM DISTRIBUTION

PEER EDUCATION

VOLUNTARY COUNSELING AND TESTING (VCT)

WELLNESS PROGRAM

MEDICAL REPATRIATION

waynewaynedunncom Slide 56

Minesite Program

waynewaynedunncom Slide 57

Current Community Program

AWARENESS AND EDUCATION PROGRAMS

MOBILE CLINIC

CONDOM amp FEMIDOM DISTRIBUTION

PERIODIC PRESUMPTIVE TREATMENT (PPT)

TREATMENT FOR SEXUALLY TRANSMITTED INFECTIONS ( STI)

waynewaynedunncom Slide 58

COMMUNITY PROGRAM

Community Mobile Clinic

waynewaynedunncom Slide 59

And when HIV prevention doesnrsquot 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 60

Industry Home Based Care

TEBA INFRA-STRUCTURE

TRAINING OF CARE GIVERS

SUPPORT STRUCTURE ndash QUALIFIED STAFF

MONTHLY MEDICATION

WORK WITH OTHER STAKEHOLDERS (EG TRADITIONAL HEALERS)

WORLD BANK DEVELOPMENT INNOVATION AWARD

waynewaynedunncom Slide 61

Home Based Care

Slide 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

waynewaynedunncom Slide 63

Overview of Placer Dome AIDS Programming SOUTH DEEP Sustainable Development Department

bullVoluntary Counseling and testing HIV Negative bullContinue working

On Mine Program Community Program

Modified work program Farm bullAgricultural work Environmental

Medical repatriation

Home Based Care

Benefits Care Positive

HBC EC OPP

Back to work or Re skilled

Wellness Program

waynewaynedunncom Slide 64

But what happens to children and families when the breadwinner canrsquot

work

Slide 65

HIVAIDS and Rural Areas HIVAIDS 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

Slide 66

HIVAIDS 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

waynewaynedunncom

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 CSREthical

Project Award (2004) Numerous other awards Stanford Case Study

waynewaynedunncom Slide 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 69

Planned Program

Care Positive Integrate the Home Based Care

project with the Care process and launch as a fee for service based program to address the social and 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

Care Process

+

Home Based Care

=

Care Positive

waynewaynedunncom Slide 70

Care Positive Summary

waynewaynedunncom

Andhellip 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 $100000 and considerable reputational capital into them Industry went forward with modified HIVAIDS

programming but huge developmental impacts were lost

waynewaynedunncom Slide 72

MDG Impacts of Placer Dome in South Africa

1 Poverty and hunger 2 Some impact on primary education (School

feeding program) 3 Promote gender equality and empower women 4 Reduce child mortality 5 Improve maternal health 6 Combat HIVAIDS malaria and other diseass 7 Ensure environmental sustainability 8 Develop a global partnership for development

(Placer Dome CIDA Civil Society NGOs)

waynewaynedunncom

One thing leads to another

World Bank observed how Placer Domersquos leadership on HIVAIDS 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

waynewaynedunncom

PNG HIVAIDS Scoping mission to

determine what might be done and how Enthusiastic interest from

industry government multi-laterals (WHO UNAIDS World Banketc) ODA (AusAID) CIDA partnered with Place Dome to develop an

HIVAIDS strategy for PNG that integrated industry public sector civil society and international community

waynewaynedunncom

PNG Outcomes (or outputs ndash Irsquom never sure) Partnership with Mining

Industry Civil Society WHO UNAIDS UNDP World Bank PNG AIDS AusAID Oil Palm Industry etc National workshop on

HIVAIDS and publicprivate partnerships SouthSouth Collaboration

Industry government civil society international community study trip to South Africa

waynewaynedunncom

waynewaynedunncom

PNG AIDS mission to South Africa

waynewaynedunncom Slide 78

MDG Impacts of PNG HIVAIDS work

1 Poverty and hunger (nutritional supplements) 2 Some impact on primary education (peripheral) 3 Promote gender equality and empower women 4 Reduce child mortality 5 Improve maternal health 6 Combat HIVAIDS malaria and other diseass 7 Ensure environmental sustainability 8 Develop a global partnership for development

(Placer Dome CIDA Civil Society NGOs)

waynewaynedunncom

Eldorado Gold in Turkey

Major gold find in WestCentral Turkey No successful

mining project launched in decades Eurogold project

built launched and halted by community action in late 1990s ndash still mothballed

UsakKislidag Minesite

Eurogold site

waynewaynedunncom

Eldorado Gold in Turkey

Isolated rural area Nearly half of nearby

communities opposed to mine development Agriculture primary

economic activity in rural communities ndash smallmicro family farms

waynewaynedunncom

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

waynewaynedunncom

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 $075 to $1325 Opened second mine in Turkey

bull Able to deal with controversial watershed issues after relationship success in Usak

waynewaynedunncom Slide 83

MDG Impacts of Eldorado Gold

1 Poverty and hunger (minimal) 2 Some impact on primary education (peripheral) 3 Promote gender equality and empower women 4 Reduce child mortality 5 Improve maternal health 6 Combat HIVAIDS malaria and other diseass 7 Ensure environmental sustainability 8 Develop a global partnership for development

(Placer Dome CIDA Civil Society NGOs)

waynewaynedunncom

Underwater Logging in Ghana

waynewaynedunncom

Private Sector and International Development

Private sector especially resource extraction has a very mixed record bull Some horrendous disasters (Nigeria Warao Peoples in

Venezuela etc) bull Some great successes (Placer Dome Care project

mining and HIVAIDS 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

waynewaynedunncom

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

interestsobjectives overlap

waynewaynedunncom

SDCSR Implementation Challenges

more than a warm fuzzy issue Spending isnrsquot the answer

Plan

Framework

System

Results

Solving social problems Objectives

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Beyond Beads and Trinkets ndash BC Mining Review

A lsquohow torsquo article on mining and CSR

Wayne Dunn

BP Venezuela Indigenous Relations ndash Meeting the Challenge Responsibly and Sustainably

Situational assessment and strategic plan for BP Venezuela Authorized for release by BP

Wayne Dunn

Cameco Community Relations Report

Situational assessment and management strategy Authorized for release by Cameco

Wayne Dunn

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author Beyond Beads lsquon Trinkets A systematic approach to managing community relations

A conference paper describing a systematic approach to community relations management helping companies to methodically develop mutually beneficial relationships with local communities and interests (this is one of the earliest papers on this subject ndash written in 1998)

Wayne Dunn

The costs of conflict with local communities in the extractive industry

Analysis of the cost of community conflicts in the Extractive Sector

Rachel Davis and Daniel M Franks

Creating Shared Value

Harvard Business Review interview with Michael Porter

Video

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Social License Its all about value

Discussion on Social License and shareholder Value

Wayne Dunn

Its about Development Commentary on the CIDAMining Company issue

Wayne Dunn

Integrating corporate strategy and social responsibilitymdashmarket returns from stakeholder engagement

Discussion and analysis on market returns on stakeholder engagement

Witold J Henisz Sinziana Dorobantu and Lite J Narty

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

McGill Reporter ndash Four Burning Questions Wayne Dunn on CSR

Discussion on CSR Wayne Dunn

Miningrsquos contribution to sustainable development ndashan overview

Discussion paper prepared by the International Council on Mining and Metals

Millennium Development Goals

United Nations

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Mining and Agriculture Development

A short lsquohow torsquo guide for mining projects to engage with the local agriculture sector

Al Hingston

PDSA Social Value Brochure

Brochure on social value created by Placer Dome South Africa

Placer Dome

The Value of Social License

Opinion piece published in Northern Miner

Wayne Dunn

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Golden Opportunity When a Canadian multinational laid off hundreds of gold miners in South Africa it went many extra miles to help them get back on their feet

Stanford Business School Case Study on Placer Dome in South Africa

Wayne Dunn

The Changing Resource Development Paradigm Maximizing Sustainable Local Benefits from Resource Development

Strategic thought piece prepared for the government of British Columbia Canada

Wayne Dunn

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

The Disappearing Barriers Between Business And Non-profits Are Driving Innovation

Discussion paper

Katherine Pikus

When Condoms are not enough

World Bank staff magazine article on Placer Dome and South African mining industryrsquos work with HIVAIDS

Craig Andrews

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

MINING AND LOCAL ECONOMIC DEVELOPMENT IN PAPUA NEW GUINEA Preliminary Research on a Potential Pilot Project in Porgera and Lihir

Strategic research and action plan on mining and local economic development in Papua New Guinea prepared for the World Bank

Wayne Dunn

waynewaynedunncom

What we covered

We 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) Publicprivatecivil society collaboration ndash case study

and discussion (CIDA and Mining Companies) Open discussion on topics of interest (time permitting)

waynewaynedunncom

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 howwhy 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

waynewaynedunncom

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 howwhy 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

waynewaynedunncom

Alignment around Shared Value For shareholders For Communities For People For Governments

Private Sector Contributions To International Development

Remember

  • Private Sector Contributions To International Development
  • Session Objectives
  • Map of the morning How we will try to meet the objectives
  • Slide Number 4
  • What is ODA and FDI
  • What is ODA and FDI
  • Why discuss Private Sector Contribution anyway
  • FDIBusiness Outcomes
  • Intention and Strategy Make a Difference
  • Why does the private sector care
  • Community Consultation and Value
  • Itrsquos Real Money
  • CSR is a Value Strategy
  • Social License Failures cost
  • Why is CSR happening
  • The Mining World Has Changed
  • CSR is a complicated space
  • CSR amp Social License
  • Role of business is changing (click image to play video)
  • Case Studies (of successes)
  • Slide Number 21
  • Uranium Industry in Northern Saskatchewan
  • Challenging area
  • Challenging Times
  • Cameco in 1998
  • Cameco in Northern Saskatchewan (2010)
  • So how did Cameco and the industry do it
  • Placer Dome South Africa
  • Slide Number 29
  • Background
  • Background (cont)
  • Families amp Communities must benefit from mining
  • The Care Project
  • Implications
  • Slide Number 35
  • The Initial 4-Step Plan
  • Reality was different than we expected
  • Reality was different than expected
  • Meeting the challenges
  • TheProcess
  • Some results
  • Chicken raising business
  • Furniture making
  • Unique training programs
  • Rice farming in Mozambique
  • Spaza (convenience) shop
  • And the business value ishellip
  • Slide Number 48
  • What was in it for Placer Dome
  • And then there is HIVAIDS
  • HIVAIDS Facts (in 2000)
  • HIVAIDS Impact
  • HIVAIDS and Gold Mining
  • HIVAIDS Programming
  • Minesite Program
  • Minesite Program
  • Current Community Program
  • Community Mobile Clinic
  • And when HIV prevention doesnrsquot work
  • Industry Home Based Care
  • Home Based Care
  • INDUSTRY HOME BASED CARE RESULTS(Year One)
  • Overview of Placer Dome AIDS Programming
  • Slide Number 64
  • HIVAIDS and Rural Areas
  • HIVAIDS and Rural Areas
  • Reputational Results for Placer Dome
  • Where to next
  • Planned Program
  • Care Positive Summary
  • Andhellip
  • MDG Impacts of Placer Dome in South Africa
  • One thing leads to another
  • PNG HIVAIDS
  • PNG Outcomes (or outputs ndash Irsquom never sure)
  • Slide Number 76
  • PNG AIDS mission to South Africa
  • MDG Impacts of PNG HIVAIDS work
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • MDG Impacts of Eldorado Gold
  • Underwater Logging in Ghana
  • Private Sector and International Development
  • Group Exercise
  • Slide Number 87
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • What we covered
  • Session Objectives
  • Session Objectives
  • Remember
Page 5: Private Sector Contributions To International Development – McGill Executive Education Program Lecture

waynewaynedunncom

What is ODA and FDI

Official Development Assistance (OECD DAC Definition) The DAC defines ODA as ldquothose flows to countries and

territories on the DAC List of ODA Recipients and to multilateral development institutions which are bull i provided by official agencies including state and local

governments or by their executive agencies and ii each transaction of which

bull a) is administered with the promotion of the economic development and welfare of developing countries as its main objective and

bull 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)rdquo

waynewaynedunncom

What is ODA and FDI

Foreign Direct Investment (OECD Definition) Foreign direct investment (FDI) is the category of international investment that reflects the objective of a resident entity in one economy to obtain a lasting interest in an enterprise resident in another economy

Why discuss Private Sector Contribution anyway In a speech on Democratizing Development Economics delivered at Georgetown University last September World Bank President Robert Zoellick pointed out that ldquoIn the 2000s Foreign Direct Investment (FDI) inflows were the single biggest source of capital for developing countries and a critical input for technology transfer in developing country firmsrdquo

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

waynewaynedunncom

FDIBusiness Outcomes

waynewaynedunncom

Intention and Strategy Make a Difference In the 1960s Petroleum exploration upstream closed the Orinoco making the water stagnant and devastated the life of the Warao Peoples

waynewaynedunncom

Why does the private sector care

Market is placing increasing value on intangibles Reputational

Capital is closely linked to shareholder value

17

32

68 80 80

83

68

32 20 20

1975 1985 1995 2005 2010

Components of SampP Market Value Intangible Assets Tangible Assets

Adapted from Milla Craigrsquos presentation to ISID ndash March 30 2012

waynewaynedunncom

Community Consultation and Value Study of 26 Gold Mines

owned by 19 publicly traded companies

Period from 1993 to 2008

Examined and coded over 50000 stakeholder events to develop an index of cooperationconflict

Effective consultation and engagement reduced discount rate on gold in ground from 72 to between 12 ndash 32

waynewaynedunncom

Itrsquos Real Money

$280000000

$670000000 $880000000

$720000000

$330000000

$120000000

$0

$100000000

$200000000

$300000000

$400000000

$500000000

$600000000

$700000000

$800000000

$900000000

$1000000000

72 33 12

Lost Value

Value in market

Market value of $1 billion of gold in the ground based on consultation and conflict

CSR is a Value Strategy

Share price of a CSR failure that rendered a multi-billion dollar reserve un-developable Good CSR creates value for company community and other stakeholders

~$1300 $029

Social License Failures cost

Bougaineville (PNG)- corporate practices were directly implicated in provoking civil war allegedly cost Rio Tinto $3 billion (Stanford Univ study) Tambo Grande (Peru) OvacikEurogold (Turkey)

waynewaynedunncom

Globalized world is demanding more of businesshellip Global media ndash The CNNization of the world ndash remote local

issues direct to television screens Social Media ndash Youtube Facebook Twitter etc Everything is

Everywhere and Organizable Proliferation of NGOs and CBOs ndash direct well organized and

financed support to communities

Why is CSR happening

Internet and other communications innovations ndash direct communications from remote projects to worldwide audience

Global Democratization ndash increased attention to local issues

waynewaynedunncom

bull ldquoWe are determined to provide multi-skilling to workers and assist them to cope with retrenchments This is a must and not a choice for industryrdquo

bull ldquoIt 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 pastrdquo Hon Phumizile Mlambo-Ngcuka

South Africa Minister of Minerals and Energy

The Mining World Has Changed

waynewaynedunncom

CSR is a complicated space

135 Codes 929 Page Report And that was in Jan 2007

waynewaynedunncom

CSR amp 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

waynewaynedunncom

Role of business is changing (click image to play video)

Creating Shared Value - Harvard Business Review

waynewaynedunncom

Case Studies (of successes)

Cameco in Northern Saskatchewan ndash indigenous employment and development (Industry Social License) Placer Dome South Africa ndash community development and

womenrsquos empowerment HIVAIDS programming leadership Placer Dome in Papua New Guinea ndash leading public private

partnerships in HIVAIDS programming (and southsouth cooperation) Eldorado Gold in Turkey ndash supporting community priorities CSR Developments in Ghana ndash underwater logging and

social license

waynewaynedunncom

1 Eradicate extreme poverty and hunger 2 Achieve universal primary education 3 Promote gender equality and empower women 4 Reduce child mortality 5 Improve maternal health 6 Combat HIVAIDS malaria and other diseass 7 Ensure environmental sustainability 8 Develop a global partnership for development

waynewaynedunncom

Uranium Industry in Northern Saskatchewan Huge remote area (larger than all but five US States (Alaska Texas California Montana and New Mexico)

Waynersquos World

waynewaynedunncom

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

waynewaynedunncom

Challenging Times

Strong opposition to industry developing bull From Europe bull From within governing party

Industry had difficulties from all sides bull Local stakeholders didnrsquot have the capacity to engage

productively in the industry bull Early days of CSR (1980s) and companies largely didnrsquot

realize the importance of local engagement and value creation

waynewaynedunncom

Cameco in 1998

Camecorsquos approach has transformed the socio-economic well-being of Indigenous Peoples in Northern Saskatchewan

29 30

34

37 3739

42 42 43 44

20

25

30

35

40

45

50

1989 1990 1991 1992 1993 1994 1995 1996 1997 1998(Aug)

Perc

enta

ge o

f Tot

al W

orkf

orce

Cameco Aboriginal Employment(includes permanent contractor workforce)

waynewaynedunncom

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 $25 million to northern and aboriginal

initiatives for youth health and wellness education and literacy and culture and recreation Provided $100000 in scholarships to post-secondary

students

waynewaynedunncom

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 ndash NRT Trucking Skunk workssecret meetings Overcoming culture and practice barriers (drilling

underground mining etc) BHAGs Necessity

waynewaynedunncom Slide 28

Placer Dome South Africa

Case study of innovative developmental CSR Demonstrate application of key CSR principles

CSRSustainability Policy Strategic interventions vs shotgun approaches Impact metrics vs expense metrics Partnership strategies (financial operational technical) Leadership and leverage

Slide 29

Overview

bull Background ndash how did this get started

bull The Care Project ndashDeveloping and implementing the plan (challenges partners learnings) ndashBusiness value created

bull HIVAIDS ndash The Crisis and why does it matter ndash Programs and activities

Slide 30

Background 1990s saw massive changes in South

African mining industry ndash over 100000 jobs lost as the industry restructured 1999 ndash Placer Dome purchased a 50

interest in South Deep (WAL) a mine located just outside Johannesburg bull 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 31

Background (cont) In late 1999 after detailed study management

realized that economic reality dictated major restructuring at South Deep

13 of the South Deep workforce (over 2500) workers were retrenched bull 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 ndash that the commitment went

BEYOND THE PAYCHECK

waynewaynedunncom Slide 32

Families amp Communities must benefit from mining

Slide 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 HIVAIDS 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$36 million) budget was established

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

waynewaynedunncom Slide 35

The Mine

2560 Retrenchees bullMozambique bullLesotho bullSouth Africa bullSwaziland bullBotswana

How to successfully provide socio-economic support across remote rural regions of five countries

waynewaynedunncom Slide 36

The Initial 4-Step Plan 1 Consultations with retrenchees in their villages 2 Recruit (from amongst the retrenchees) a group

of 25-30 fieldworkers who would provide frontline support to the retrenchees and their families

3 Locate and register the retrenchees 4 Provide them with training and support to enable

them to become economically active

All of the above to be done in partnership with MDA TEBA and other partners

waynewaynedunncom Slide 37

Reality was different than we expected Retrenchees and their

Unions were still angry over the contested retrenchment Retrencheesrsquo homes were

difficult to locate and registration was often problematic

Consultations with retrenchees

Walking to a remote retrenchee homestead in Lesotho

Slide 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 HIVAIDS Fieldworker training programs Retrenchee education levels Centralized delivery didnrsquot work Project was under-financed We couldnrsquot do it in two years Etc

Slide 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

waynewaynedunncom Slide 40

The Process

Business Operation1 Ongoing availability of Technical Assistance and Business Counselling2 Ongoing faclitiation of skills training needs (ie business agriculture vocational etc)

Decision on Economic Option

Employment StreamEnterprise Stream

Evaluation of Micro Finance Application

Retrenchee is Re-Integrated and Economically Active

PersonalEconomic Plan

Prepared ampAssessed

PersonalEmployment Plan

Prepared

Business amp Financing Plan

Prepared

Employment Planning amp Preparation1 Identification of Employment Options2 Skills Training (VocationalAgricultural etc)3 Employment Counseling Placement (Job searchResume etc)

Business Planning amp Preparation1 Business Orientation a) Introduction to Business b) SkillsProduct Training2 Develop Draft Business Plan (to be reviewed with Counselor) (plan will contain market assessment financial operational and skills upgrading plan)3 Preparation of Micro-Finance Application

Orientation and Awareness Phase1 Registration amp Homestead Visits2 District Counselling Sessions3 Open DaysCareer Fairs4 Financial Lifes Skills Training5 Feedback and Choices Session

Ongoing Processes

Follow-up sessions activities to monitor effectiveness of interventions

Communication and consultation with stakeholders Continuous improvement process (review feedback enhance programs procedures processes)

13-step process Delivered 18 times Across Five countries

Slide 41

Some results 92 of the retrenchees were located

and registered 57 of those (1250) are economically

active 65 (1556) 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 42

Chicken raising business

Slide 43

Furniture making

waynewaynedunncom Slide 44

Unique training programs

waynewaynedunncom Slide 45

Rice farming in Mozambique

Slide 46

Spaza (convenience) shop

Slide 47

And the business value ishellip HIVAIDS 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 ndash 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

waynewaynedunncom Slide 48

ldquoThe project changed the social face of the South African Mining Industryrdquo

Kgosietsile Mogaki

South African Ministry of Minerals and Energy

waynewaynedunncom Slide 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 globally

Through 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 50

And then there is HIVAIDS

RSA ACCOUNTED FOR NEARLY 1 IN 8 OF THE NEW HIV INFECTIONS THAT OCCURRED WORLD WIDE IN 2000

HIV+ PREVALENCE RATE IN WOMEN ATTENDING ANTE-NATAL CLINICS INCREASED FROM 07 IN 1990 TO 248 IN 2001

AVERAGE OF 1700 NEW INFECTIONS PER DAY

LIFE EXPECTANCY WILL DECLINE FROM 65 TO 40 BY 2011

65

40

0

10

20

30

40

50

60

70

2001 2011

Life Expectancy

waynewaynedunncom Slide 51

HIVAIDS Facts (in 2000)

ESTIMATED THAT 12 OF TOTAL RSA POPULATION AND 25 OF MINEWORKERS ARE HIV+

ALREADY 400000 PEOPLE ARE AIDS SICK AND THIS WILL INCREASE TO 14 M BY 2010

YOUNG WOMEN PARTICULARLY VULNERABLE ndash 239 AGED BETWEEN 15 ndash 49 ALREADY INFECTED AND WILL RISE TO 297 BY 2007

AIDS ORPHANS AT PRESENT AMOUNT TO 660000+ AND WILL RISE TO 18M BY 2015

ACCUMULATIVE AIDS DEATHS WILL RISE TO 9M BY 2015

Slide 52

HIVAIDS Impact REDUCED ECONOMIC GROWTH RATE ndash 2010 GDP 20 below a non AIDS

scenario REDUCED POPULATION ndash RSA population 10M smaller than non AIDS scenario SKYROCKETING DEMANDS ON PUBLIC HEALTH SYSTEM - RADICALLY CHANGED PRIVATE SPENDING PATTERNS ndash to healthcare and

funeral costs IMPACT ON SOCIO-ECONOMIC STABILITY (orphans)

HIVAIDS 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 Africa today Nobody can afford to ignore it

Slide 53

HIVAIDS and Gold Mining

$10oz impact if nothing is done (5 of production costs) ~$3oz with maximum

intervention Impact on social and political

stability

Slide 54

HIVAIDS Programming Placer Dome program ndash

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 55

Minesite Program

TRAINING AND EDUCATION

STI amp TB TREATMENT

CONDOM DISTRIBUTION

PEER EDUCATION

VOLUNTARY COUNSELING AND TESTING (VCT)

WELLNESS PROGRAM

MEDICAL REPATRIATION

waynewaynedunncom Slide 56

Minesite Program

waynewaynedunncom Slide 57

Current Community Program

AWARENESS AND EDUCATION PROGRAMS

MOBILE CLINIC

CONDOM amp FEMIDOM DISTRIBUTION

PERIODIC PRESUMPTIVE TREATMENT (PPT)

TREATMENT FOR SEXUALLY TRANSMITTED INFECTIONS ( STI)

waynewaynedunncom Slide 58

COMMUNITY PROGRAM

Community Mobile Clinic

waynewaynedunncom Slide 59

And when HIV prevention doesnrsquot 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 60

Industry Home Based Care

TEBA INFRA-STRUCTURE

TRAINING OF CARE GIVERS

SUPPORT STRUCTURE ndash QUALIFIED STAFF

MONTHLY MEDICATION

WORK WITH OTHER STAKEHOLDERS (EG TRADITIONAL HEALERS)

WORLD BANK DEVELOPMENT INNOVATION AWARD

waynewaynedunncom Slide 61

Home Based Care

Slide 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

waynewaynedunncom Slide 63

Overview of Placer Dome AIDS Programming SOUTH DEEP Sustainable Development Department

bullVoluntary Counseling and testing HIV Negative bullContinue working

On Mine Program Community Program

Modified work program Farm bullAgricultural work Environmental

Medical repatriation

Home Based Care

Benefits Care Positive

HBC EC OPP

Back to work or Re skilled

Wellness Program

waynewaynedunncom Slide 64

But what happens to children and families when the breadwinner canrsquot

work

Slide 65

HIVAIDS and Rural Areas HIVAIDS 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

Slide 66

HIVAIDS 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

waynewaynedunncom

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 CSREthical

Project Award (2004) Numerous other awards Stanford Case Study

waynewaynedunncom Slide 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 69

Planned Program

Care Positive Integrate the Home Based Care

project with the Care process and launch as a fee for service based program to address the social and 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

Care Process

+

Home Based Care

=

Care Positive

waynewaynedunncom Slide 70

Care Positive Summary

waynewaynedunncom

Andhellip 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 $100000 and considerable reputational capital into them Industry went forward with modified HIVAIDS

programming but huge developmental impacts were lost

waynewaynedunncom Slide 72

MDG Impacts of Placer Dome in South Africa

1 Poverty and hunger 2 Some impact on primary education (School

feeding program) 3 Promote gender equality and empower women 4 Reduce child mortality 5 Improve maternal health 6 Combat HIVAIDS malaria and other diseass 7 Ensure environmental sustainability 8 Develop a global partnership for development

(Placer Dome CIDA Civil Society NGOs)

waynewaynedunncom

One thing leads to another

World Bank observed how Placer Domersquos leadership on HIVAIDS 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

waynewaynedunncom

PNG HIVAIDS Scoping mission to

determine what might be done and how Enthusiastic interest from

industry government multi-laterals (WHO UNAIDS World Banketc) ODA (AusAID) CIDA partnered with Place Dome to develop an

HIVAIDS strategy for PNG that integrated industry public sector civil society and international community

waynewaynedunncom

PNG Outcomes (or outputs ndash Irsquom never sure) Partnership with Mining

Industry Civil Society WHO UNAIDS UNDP World Bank PNG AIDS AusAID Oil Palm Industry etc National workshop on

HIVAIDS and publicprivate partnerships SouthSouth Collaboration

Industry government civil society international community study trip to South Africa

waynewaynedunncom

waynewaynedunncom

PNG AIDS mission to South Africa

waynewaynedunncom Slide 78

MDG Impacts of PNG HIVAIDS work

1 Poverty and hunger (nutritional supplements) 2 Some impact on primary education (peripheral) 3 Promote gender equality and empower women 4 Reduce child mortality 5 Improve maternal health 6 Combat HIVAIDS malaria and other diseass 7 Ensure environmental sustainability 8 Develop a global partnership for development

(Placer Dome CIDA Civil Society NGOs)

waynewaynedunncom

Eldorado Gold in Turkey

Major gold find in WestCentral Turkey No successful

mining project launched in decades Eurogold project

built launched and halted by community action in late 1990s ndash still mothballed

UsakKislidag Minesite

Eurogold site

waynewaynedunncom

Eldorado Gold in Turkey

Isolated rural area Nearly half of nearby

communities opposed to mine development Agriculture primary

economic activity in rural communities ndash smallmicro family farms

waynewaynedunncom

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

waynewaynedunncom

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 $075 to $1325 Opened second mine in Turkey

bull Able to deal with controversial watershed issues after relationship success in Usak

waynewaynedunncom Slide 83

MDG Impacts of Eldorado Gold

1 Poverty and hunger (minimal) 2 Some impact on primary education (peripheral) 3 Promote gender equality and empower women 4 Reduce child mortality 5 Improve maternal health 6 Combat HIVAIDS malaria and other diseass 7 Ensure environmental sustainability 8 Develop a global partnership for development

(Placer Dome CIDA Civil Society NGOs)

waynewaynedunncom

Underwater Logging in Ghana

waynewaynedunncom

Private Sector and International Development

Private sector especially resource extraction has a very mixed record bull Some horrendous disasters (Nigeria Warao Peoples in

Venezuela etc) bull Some great successes (Placer Dome Care project

mining and HIVAIDS 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

waynewaynedunncom

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

interestsobjectives overlap

waynewaynedunncom

SDCSR Implementation Challenges

more than a warm fuzzy issue Spending isnrsquot the answer

Plan

Framework

System

Results

Solving social problems Objectives

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Beyond Beads and Trinkets ndash BC Mining Review

A lsquohow torsquo article on mining and CSR

Wayne Dunn

BP Venezuela Indigenous Relations ndash Meeting the Challenge Responsibly and Sustainably

Situational assessment and strategic plan for BP Venezuela Authorized for release by BP

Wayne Dunn

Cameco Community Relations Report

Situational assessment and management strategy Authorized for release by Cameco

Wayne Dunn

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author Beyond Beads lsquon Trinkets A systematic approach to managing community relations

A conference paper describing a systematic approach to community relations management helping companies to methodically develop mutually beneficial relationships with local communities and interests (this is one of the earliest papers on this subject ndash written in 1998)

Wayne Dunn

The costs of conflict with local communities in the extractive industry

Analysis of the cost of community conflicts in the Extractive Sector

Rachel Davis and Daniel M Franks

Creating Shared Value

Harvard Business Review interview with Michael Porter

Video

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Social License Its all about value

Discussion on Social License and shareholder Value

Wayne Dunn

Its about Development Commentary on the CIDAMining Company issue

Wayne Dunn

Integrating corporate strategy and social responsibilitymdashmarket returns from stakeholder engagement

Discussion and analysis on market returns on stakeholder engagement

Witold J Henisz Sinziana Dorobantu and Lite J Narty

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

McGill Reporter ndash Four Burning Questions Wayne Dunn on CSR

Discussion on CSR Wayne Dunn

Miningrsquos contribution to sustainable development ndashan overview

Discussion paper prepared by the International Council on Mining and Metals

Millennium Development Goals

United Nations

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Mining and Agriculture Development

A short lsquohow torsquo guide for mining projects to engage with the local agriculture sector

Al Hingston

PDSA Social Value Brochure

Brochure on social value created by Placer Dome South Africa

Placer Dome

The Value of Social License

Opinion piece published in Northern Miner

Wayne Dunn

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Golden Opportunity When a Canadian multinational laid off hundreds of gold miners in South Africa it went many extra miles to help them get back on their feet

Stanford Business School Case Study on Placer Dome in South Africa

Wayne Dunn

The Changing Resource Development Paradigm Maximizing Sustainable Local Benefits from Resource Development

Strategic thought piece prepared for the government of British Columbia Canada

Wayne Dunn

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

The Disappearing Barriers Between Business And Non-profits Are Driving Innovation

Discussion paper

Katherine Pikus

When Condoms are not enough

World Bank staff magazine article on Placer Dome and South African mining industryrsquos work with HIVAIDS

Craig Andrews

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

MINING AND LOCAL ECONOMIC DEVELOPMENT IN PAPUA NEW GUINEA Preliminary Research on a Potential Pilot Project in Porgera and Lihir

Strategic research and action plan on mining and local economic development in Papua New Guinea prepared for the World Bank

Wayne Dunn

waynewaynedunncom

What we covered

We 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) Publicprivatecivil society collaboration ndash case study

and discussion (CIDA and Mining Companies) Open discussion on topics of interest (time permitting)

waynewaynedunncom

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 howwhy 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

waynewaynedunncom

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 howwhy 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

waynewaynedunncom

Alignment around Shared Value For shareholders For Communities For People For Governments

Private Sector Contributions To International Development

Remember

  • Private Sector Contributions To International Development
  • Session Objectives
  • Map of the morning How we will try to meet the objectives
  • Slide Number 4
  • What is ODA and FDI
  • What is ODA and FDI
  • Why discuss Private Sector Contribution anyway
  • FDIBusiness Outcomes
  • Intention and Strategy Make a Difference
  • Why does the private sector care
  • Community Consultation and Value
  • Itrsquos Real Money
  • CSR is a Value Strategy
  • Social License Failures cost
  • Why is CSR happening
  • The Mining World Has Changed
  • CSR is a complicated space
  • CSR amp Social License
  • Role of business is changing (click image to play video)
  • Case Studies (of successes)
  • Slide Number 21
  • Uranium Industry in Northern Saskatchewan
  • Challenging area
  • Challenging Times
  • Cameco in 1998
  • Cameco in Northern Saskatchewan (2010)
  • So how did Cameco and the industry do it
  • Placer Dome South Africa
  • Slide Number 29
  • Background
  • Background (cont)
  • Families amp Communities must benefit from mining
  • The Care Project
  • Implications
  • Slide Number 35
  • The Initial 4-Step Plan
  • Reality was different than we expected
  • Reality was different than expected
  • Meeting the challenges
  • TheProcess
  • Some results
  • Chicken raising business
  • Furniture making
  • Unique training programs
  • Rice farming in Mozambique
  • Spaza (convenience) shop
  • And the business value ishellip
  • Slide Number 48
  • What was in it for Placer Dome
  • And then there is HIVAIDS
  • HIVAIDS Facts (in 2000)
  • HIVAIDS Impact
  • HIVAIDS and Gold Mining
  • HIVAIDS Programming
  • Minesite Program
  • Minesite Program
  • Current Community Program
  • Community Mobile Clinic
  • And when HIV prevention doesnrsquot work
  • Industry Home Based Care
  • Home Based Care
  • INDUSTRY HOME BASED CARE RESULTS(Year One)
  • Overview of Placer Dome AIDS Programming
  • Slide Number 64
  • HIVAIDS and Rural Areas
  • HIVAIDS and Rural Areas
  • Reputational Results for Placer Dome
  • Where to next
  • Planned Program
  • Care Positive Summary
  • Andhellip
  • MDG Impacts of Placer Dome in South Africa
  • One thing leads to another
  • PNG HIVAIDS
  • PNG Outcomes (or outputs ndash Irsquom never sure)
  • Slide Number 76
  • PNG AIDS mission to South Africa
  • MDG Impacts of PNG HIVAIDS work
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • MDG Impacts of Eldorado Gold
  • Underwater Logging in Ghana
  • Private Sector and International Development
  • Group Exercise
  • Slide Number 87
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • What we covered
  • Session Objectives
  • Session Objectives
  • Remember
Page 6: Private Sector Contributions To International Development – McGill Executive Education Program Lecture

waynewaynedunncom

What is ODA and FDI

Foreign Direct Investment (OECD Definition) Foreign direct investment (FDI) is the category of international investment that reflects the objective of a resident entity in one economy to obtain a lasting interest in an enterprise resident in another economy

Why discuss Private Sector Contribution anyway In a speech on Democratizing Development Economics delivered at Georgetown University last September World Bank President Robert Zoellick pointed out that ldquoIn the 2000s Foreign Direct Investment (FDI) inflows were the single biggest source of capital for developing countries and a critical input for technology transfer in developing country firmsrdquo

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

waynewaynedunncom

FDIBusiness Outcomes

waynewaynedunncom

Intention and Strategy Make a Difference In the 1960s Petroleum exploration upstream closed the Orinoco making the water stagnant and devastated the life of the Warao Peoples

waynewaynedunncom

Why does the private sector care

Market is placing increasing value on intangibles Reputational

Capital is closely linked to shareholder value

17

32

68 80 80

83

68

32 20 20

1975 1985 1995 2005 2010

Components of SampP Market Value Intangible Assets Tangible Assets

Adapted from Milla Craigrsquos presentation to ISID ndash March 30 2012

waynewaynedunncom

Community Consultation and Value Study of 26 Gold Mines

owned by 19 publicly traded companies

Period from 1993 to 2008

Examined and coded over 50000 stakeholder events to develop an index of cooperationconflict

Effective consultation and engagement reduced discount rate on gold in ground from 72 to between 12 ndash 32

waynewaynedunncom

Itrsquos Real Money

$280000000

$670000000 $880000000

$720000000

$330000000

$120000000

$0

$100000000

$200000000

$300000000

$400000000

$500000000

$600000000

$700000000

$800000000

$900000000

$1000000000

72 33 12

Lost Value

Value in market

Market value of $1 billion of gold in the ground based on consultation and conflict

CSR is a Value Strategy

Share price of a CSR failure that rendered a multi-billion dollar reserve un-developable Good CSR creates value for company community and other stakeholders

~$1300 $029

Social License Failures cost

Bougaineville (PNG)- corporate practices were directly implicated in provoking civil war allegedly cost Rio Tinto $3 billion (Stanford Univ study) Tambo Grande (Peru) OvacikEurogold (Turkey)

waynewaynedunncom

Globalized world is demanding more of businesshellip Global media ndash The CNNization of the world ndash remote local

issues direct to television screens Social Media ndash Youtube Facebook Twitter etc Everything is

Everywhere and Organizable Proliferation of NGOs and CBOs ndash direct well organized and

financed support to communities

Why is CSR happening

Internet and other communications innovations ndash direct communications from remote projects to worldwide audience

Global Democratization ndash increased attention to local issues

waynewaynedunncom

bull ldquoWe are determined to provide multi-skilling to workers and assist them to cope with retrenchments This is a must and not a choice for industryrdquo

bull ldquoIt 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 pastrdquo Hon Phumizile Mlambo-Ngcuka

South Africa Minister of Minerals and Energy

The Mining World Has Changed

waynewaynedunncom

CSR is a complicated space

135 Codes 929 Page Report And that was in Jan 2007

waynewaynedunncom

CSR amp 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

waynewaynedunncom

Role of business is changing (click image to play video)

Creating Shared Value - Harvard Business Review

waynewaynedunncom

Case Studies (of successes)

Cameco in Northern Saskatchewan ndash indigenous employment and development (Industry Social License) Placer Dome South Africa ndash community development and

womenrsquos empowerment HIVAIDS programming leadership Placer Dome in Papua New Guinea ndash leading public private

partnerships in HIVAIDS programming (and southsouth cooperation) Eldorado Gold in Turkey ndash supporting community priorities CSR Developments in Ghana ndash underwater logging and

social license

waynewaynedunncom

1 Eradicate extreme poverty and hunger 2 Achieve universal primary education 3 Promote gender equality and empower women 4 Reduce child mortality 5 Improve maternal health 6 Combat HIVAIDS malaria and other diseass 7 Ensure environmental sustainability 8 Develop a global partnership for development

waynewaynedunncom

Uranium Industry in Northern Saskatchewan Huge remote area (larger than all but five US States (Alaska Texas California Montana and New Mexico)

Waynersquos World

waynewaynedunncom

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

waynewaynedunncom

Challenging Times

Strong opposition to industry developing bull From Europe bull From within governing party

Industry had difficulties from all sides bull Local stakeholders didnrsquot have the capacity to engage

productively in the industry bull Early days of CSR (1980s) and companies largely didnrsquot

realize the importance of local engagement and value creation

waynewaynedunncom

Cameco in 1998

Camecorsquos approach has transformed the socio-economic well-being of Indigenous Peoples in Northern Saskatchewan

29 30

34

37 3739

42 42 43 44

20

25

30

35

40

45

50

1989 1990 1991 1992 1993 1994 1995 1996 1997 1998(Aug)

Perc

enta

ge o

f Tot

al W

orkf

orce

Cameco Aboriginal Employment(includes permanent contractor workforce)

waynewaynedunncom

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 $25 million to northern and aboriginal

initiatives for youth health and wellness education and literacy and culture and recreation Provided $100000 in scholarships to post-secondary

students

waynewaynedunncom

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 ndash NRT Trucking Skunk workssecret meetings Overcoming culture and practice barriers (drilling

underground mining etc) BHAGs Necessity

waynewaynedunncom Slide 28

Placer Dome South Africa

Case study of innovative developmental CSR Demonstrate application of key CSR principles

CSRSustainability Policy Strategic interventions vs shotgun approaches Impact metrics vs expense metrics Partnership strategies (financial operational technical) Leadership and leverage

Slide 29

Overview

bull Background ndash how did this get started

bull The Care Project ndashDeveloping and implementing the plan (challenges partners learnings) ndashBusiness value created

bull HIVAIDS ndash The Crisis and why does it matter ndash Programs and activities

Slide 30

Background 1990s saw massive changes in South

African mining industry ndash over 100000 jobs lost as the industry restructured 1999 ndash Placer Dome purchased a 50

interest in South Deep (WAL) a mine located just outside Johannesburg bull 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 31

Background (cont) In late 1999 after detailed study management

realized that economic reality dictated major restructuring at South Deep

13 of the South Deep workforce (over 2500) workers were retrenched bull 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 ndash that the commitment went

BEYOND THE PAYCHECK

waynewaynedunncom Slide 32

Families amp Communities must benefit from mining

Slide 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 HIVAIDS 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$36 million) budget was established

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

waynewaynedunncom Slide 35

The Mine

2560 Retrenchees bullMozambique bullLesotho bullSouth Africa bullSwaziland bullBotswana

How to successfully provide socio-economic support across remote rural regions of five countries

waynewaynedunncom Slide 36

The Initial 4-Step Plan 1 Consultations with retrenchees in their villages 2 Recruit (from amongst the retrenchees) a group

of 25-30 fieldworkers who would provide frontline support to the retrenchees and their families

3 Locate and register the retrenchees 4 Provide them with training and support to enable

them to become economically active

All of the above to be done in partnership with MDA TEBA and other partners

waynewaynedunncom Slide 37

Reality was different than we expected Retrenchees and their

Unions were still angry over the contested retrenchment Retrencheesrsquo homes were

difficult to locate and registration was often problematic

Consultations with retrenchees

Walking to a remote retrenchee homestead in Lesotho

Slide 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 HIVAIDS Fieldworker training programs Retrenchee education levels Centralized delivery didnrsquot work Project was under-financed We couldnrsquot do it in two years Etc

Slide 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

waynewaynedunncom Slide 40

The Process

Business Operation1 Ongoing availability of Technical Assistance and Business Counselling2 Ongoing faclitiation of skills training needs (ie business agriculture vocational etc)

Decision on Economic Option

Employment StreamEnterprise Stream

Evaluation of Micro Finance Application

Retrenchee is Re-Integrated and Economically Active

PersonalEconomic Plan

Prepared ampAssessed

PersonalEmployment Plan

Prepared

Business amp Financing Plan

Prepared

Employment Planning amp Preparation1 Identification of Employment Options2 Skills Training (VocationalAgricultural etc)3 Employment Counseling Placement (Job searchResume etc)

Business Planning amp Preparation1 Business Orientation a) Introduction to Business b) SkillsProduct Training2 Develop Draft Business Plan (to be reviewed with Counselor) (plan will contain market assessment financial operational and skills upgrading plan)3 Preparation of Micro-Finance Application

Orientation and Awareness Phase1 Registration amp Homestead Visits2 District Counselling Sessions3 Open DaysCareer Fairs4 Financial Lifes Skills Training5 Feedback and Choices Session

Ongoing Processes

Follow-up sessions activities to monitor effectiveness of interventions

Communication and consultation with stakeholders Continuous improvement process (review feedback enhance programs procedures processes)

13-step process Delivered 18 times Across Five countries

Slide 41

Some results 92 of the retrenchees were located

and registered 57 of those (1250) are economically

active 65 (1556) 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 42

Chicken raising business

Slide 43

Furniture making

waynewaynedunncom Slide 44

Unique training programs

waynewaynedunncom Slide 45

Rice farming in Mozambique

Slide 46

Spaza (convenience) shop

Slide 47

And the business value ishellip HIVAIDS 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 ndash 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

waynewaynedunncom Slide 48

ldquoThe project changed the social face of the South African Mining Industryrdquo

Kgosietsile Mogaki

South African Ministry of Minerals and Energy

waynewaynedunncom Slide 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 globally

Through 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 50

And then there is HIVAIDS

RSA ACCOUNTED FOR NEARLY 1 IN 8 OF THE NEW HIV INFECTIONS THAT OCCURRED WORLD WIDE IN 2000

HIV+ PREVALENCE RATE IN WOMEN ATTENDING ANTE-NATAL CLINICS INCREASED FROM 07 IN 1990 TO 248 IN 2001

AVERAGE OF 1700 NEW INFECTIONS PER DAY

LIFE EXPECTANCY WILL DECLINE FROM 65 TO 40 BY 2011

65

40

0

10

20

30

40

50

60

70

2001 2011

Life Expectancy

waynewaynedunncom Slide 51

HIVAIDS Facts (in 2000)

ESTIMATED THAT 12 OF TOTAL RSA POPULATION AND 25 OF MINEWORKERS ARE HIV+

ALREADY 400000 PEOPLE ARE AIDS SICK AND THIS WILL INCREASE TO 14 M BY 2010

YOUNG WOMEN PARTICULARLY VULNERABLE ndash 239 AGED BETWEEN 15 ndash 49 ALREADY INFECTED AND WILL RISE TO 297 BY 2007

AIDS ORPHANS AT PRESENT AMOUNT TO 660000+ AND WILL RISE TO 18M BY 2015

ACCUMULATIVE AIDS DEATHS WILL RISE TO 9M BY 2015

Slide 52

HIVAIDS Impact REDUCED ECONOMIC GROWTH RATE ndash 2010 GDP 20 below a non AIDS

scenario REDUCED POPULATION ndash RSA population 10M smaller than non AIDS scenario SKYROCKETING DEMANDS ON PUBLIC HEALTH SYSTEM - RADICALLY CHANGED PRIVATE SPENDING PATTERNS ndash to healthcare and

funeral costs IMPACT ON SOCIO-ECONOMIC STABILITY (orphans)

HIVAIDS 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 Africa today Nobody can afford to ignore it

Slide 53

HIVAIDS and Gold Mining

$10oz impact if nothing is done (5 of production costs) ~$3oz with maximum

intervention Impact on social and political

stability

Slide 54

HIVAIDS Programming Placer Dome program ndash

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 55

Minesite Program

TRAINING AND EDUCATION

STI amp TB TREATMENT

CONDOM DISTRIBUTION

PEER EDUCATION

VOLUNTARY COUNSELING AND TESTING (VCT)

WELLNESS PROGRAM

MEDICAL REPATRIATION

waynewaynedunncom Slide 56

Minesite Program

waynewaynedunncom Slide 57

Current Community Program

AWARENESS AND EDUCATION PROGRAMS

MOBILE CLINIC

CONDOM amp FEMIDOM DISTRIBUTION

PERIODIC PRESUMPTIVE TREATMENT (PPT)

TREATMENT FOR SEXUALLY TRANSMITTED INFECTIONS ( STI)

waynewaynedunncom Slide 58

COMMUNITY PROGRAM

Community Mobile Clinic

waynewaynedunncom Slide 59

And when HIV prevention doesnrsquot 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 60

Industry Home Based Care

TEBA INFRA-STRUCTURE

TRAINING OF CARE GIVERS

SUPPORT STRUCTURE ndash QUALIFIED STAFF

MONTHLY MEDICATION

WORK WITH OTHER STAKEHOLDERS (EG TRADITIONAL HEALERS)

WORLD BANK DEVELOPMENT INNOVATION AWARD

waynewaynedunncom Slide 61

Home Based Care

Slide 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

waynewaynedunncom Slide 63

Overview of Placer Dome AIDS Programming SOUTH DEEP Sustainable Development Department

bullVoluntary Counseling and testing HIV Negative bullContinue working

On Mine Program Community Program

Modified work program Farm bullAgricultural work Environmental

Medical repatriation

Home Based Care

Benefits Care Positive

HBC EC OPP

Back to work or Re skilled

Wellness Program

waynewaynedunncom Slide 64

But what happens to children and families when the breadwinner canrsquot

work

Slide 65

HIVAIDS and Rural Areas HIVAIDS 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

Slide 66

HIVAIDS 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

waynewaynedunncom

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 CSREthical

Project Award (2004) Numerous other awards Stanford Case Study

waynewaynedunncom Slide 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 69

Planned Program

Care Positive Integrate the Home Based Care

project with the Care process and launch as a fee for service based program to address the social and 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

Care Process

+

Home Based Care

=

Care Positive

waynewaynedunncom Slide 70

Care Positive Summary

waynewaynedunncom

Andhellip 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 $100000 and considerable reputational capital into them Industry went forward with modified HIVAIDS

programming but huge developmental impacts were lost

waynewaynedunncom Slide 72

MDG Impacts of Placer Dome in South Africa

1 Poverty and hunger 2 Some impact on primary education (School

feeding program) 3 Promote gender equality and empower women 4 Reduce child mortality 5 Improve maternal health 6 Combat HIVAIDS malaria and other diseass 7 Ensure environmental sustainability 8 Develop a global partnership for development

(Placer Dome CIDA Civil Society NGOs)

waynewaynedunncom

One thing leads to another

World Bank observed how Placer Domersquos leadership on HIVAIDS 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

waynewaynedunncom

PNG HIVAIDS Scoping mission to

determine what might be done and how Enthusiastic interest from

industry government multi-laterals (WHO UNAIDS World Banketc) ODA (AusAID) CIDA partnered with Place Dome to develop an

HIVAIDS strategy for PNG that integrated industry public sector civil society and international community

waynewaynedunncom

PNG Outcomes (or outputs ndash Irsquom never sure) Partnership with Mining

Industry Civil Society WHO UNAIDS UNDP World Bank PNG AIDS AusAID Oil Palm Industry etc National workshop on

HIVAIDS and publicprivate partnerships SouthSouth Collaboration

Industry government civil society international community study trip to South Africa

waynewaynedunncom

waynewaynedunncom

PNG AIDS mission to South Africa

waynewaynedunncom Slide 78

MDG Impacts of PNG HIVAIDS work

1 Poverty and hunger (nutritional supplements) 2 Some impact on primary education (peripheral) 3 Promote gender equality and empower women 4 Reduce child mortality 5 Improve maternal health 6 Combat HIVAIDS malaria and other diseass 7 Ensure environmental sustainability 8 Develop a global partnership for development

(Placer Dome CIDA Civil Society NGOs)

waynewaynedunncom

Eldorado Gold in Turkey

Major gold find in WestCentral Turkey No successful

mining project launched in decades Eurogold project

built launched and halted by community action in late 1990s ndash still mothballed

UsakKislidag Minesite

Eurogold site

waynewaynedunncom

Eldorado Gold in Turkey

Isolated rural area Nearly half of nearby

communities opposed to mine development Agriculture primary

economic activity in rural communities ndash smallmicro family farms

waynewaynedunncom

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

waynewaynedunncom

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 $075 to $1325 Opened second mine in Turkey

bull Able to deal with controversial watershed issues after relationship success in Usak

waynewaynedunncom Slide 83

MDG Impacts of Eldorado Gold

1 Poverty and hunger (minimal) 2 Some impact on primary education (peripheral) 3 Promote gender equality and empower women 4 Reduce child mortality 5 Improve maternal health 6 Combat HIVAIDS malaria and other diseass 7 Ensure environmental sustainability 8 Develop a global partnership for development

(Placer Dome CIDA Civil Society NGOs)

waynewaynedunncom

Underwater Logging in Ghana

waynewaynedunncom

Private Sector and International Development

Private sector especially resource extraction has a very mixed record bull Some horrendous disasters (Nigeria Warao Peoples in

Venezuela etc) bull Some great successes (Placer Dome Care project

mining and HIVAIDS 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

waynewaynedunncom

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

interestsobjectives overlap

waynewaynedunncom

SDCSR Implementation Challenges

more than a warm fuzzy issue Spending isnrsquot the answer

Plan

Framework

System

Results

Solving social problems Objectives

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Beyond Beads and Trinkets ndash BC Mining Review

A lsquohow torsquo article on mining and CSR

Wayne Dunn

BP Venezuela Indigenous Relations ndash Meeting the Challenge Responsibly and Sustainably

Situational assessment and strategic plan for BP Venezuela Authorized for release by BP

Wayne Dunn

Cameco Community Relations Report

Situational assessment and management strategy Authorized for release by Cameco

Wayne Dunn

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author Beyond Beads lsquon Trinkets A systematic approach to managing community relations

A conference paper describing a systematic approach to community relations management helping companies to methodically develop mutually beneficial relationships with local communities and interests (this is one of the earliest papers on this subject ndash written in 1998)

Wayne Dunn

The costs of conflict with local communities in the extractive industry

Analysis of the cost of community conflicts in the Extractive Sector

Rachel Davis and Daniel M Franks

Creating Shared Value

Harvard Business Review interview with Michael Porter

Video

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Social License Its all about value

Discussion on Social License and shareholder Value

Wayne Dunn

Its about Development Commentary on the CIDAMining Company issue

Wayne Dunn

Integrating corporate strategy and social responsibilitymdashmarket returns from stakeholder engagement

Discussion and analysis on market returns on stakeholder engagement

Witold J Henisz Sinziana Dorobantu and Lite J Narty

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

McGill Reporter ndash Four Burning Questions Wayne Dunn on CSR

Discussion on CSR Wayne Dunn

Miningrsquos contribution to sustainable development ndashan overview

Discussion paper prepared by the International Council on Mining and Metals

Millennium Development Goals

United Nations

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Mining and Agriculture Development

A short lsquohow torsquo guide for mining projects to engage with the local agriculture sector

Al Hingston

PDSA Social Value Brochure

Brochure on social value created by Placer Dome South Africa

Placer Dome

The Value of Social License

Opinion piece published in Northern Miner

Wayne Dunn

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Golden Opportunity When a Canadian multinational laid off hundreds of gold miners in South Africa it went many extra miles to help them get back on their feet

Stanford Business School Case Study on Placer Dome in South Africa

Wayne Dunn

The Changing Resource Development Paradigm Maximizing Sustainable Local Benefits from Resource Development

Strategic thought piece prepared for the government of British Columbia Canada

Wayne Dunn

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

The Disappearing Barriers Between Business And Non-profits Are Driving Innovation

Discussion paper

Katherine Pikus

When Condoms are not enough

World Bank staff magazine article on Placer Dome and South African mining industryrsquos work with HIVAIDS

Craig Andrews

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

MINING AND LOCAL ECONOMIC DEVELOPMENT IN PAPUA NEW GUINEA Preliminary Research on a Potential Pilot Project in Porgera and Lihir

Strategic research and action plan on mining and local economic development in Papua New Guinea prepared for the World Bank

Wayne Dunn

waynewaynedunncom

What we covered

We 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) Publicprivatecivil society collaboration ndash case study

and discussion (CIDA and Mining Companies) Open discussion on topics of interest (time permitting)

waynewaynedunncom

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 howwhy 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

waynewaynedunncom

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 howwhy 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

waynewaynedunncom

Alignment around Shared Value For shareholders For Communities For People For Governments

Private Sector Contributions To International Development

Remember

  • Private Sector Contributions To International Development
  • Session Objectives
  • Map of the morning How we will try to meet the objectives
  • Slide Number 4
  • What is ODA and FDI
  • What is ODA and FDI
  • Why discuss Private Sector Contribution anyway
  • FDIBusiness Outcomes
  • Intention and Strategy Make a Difference
  • Why does the private sector care
  • Community Consultation and Value
  • Itrsquos Real Money
  • CSR is a Value Strategy
  • Social License Failures cost
  • Why is CSR happening
  • The Mining World Has Changed
  • CSR is a complicated space
  • CSR amp Social License
  • Role of business is changing (click image to play video)
  • Case Studies (of successes)
  • Slide Number 21
  • Uranium Industry in Northern Saskatchewan
  • Challenging area
  • Challenging Times
  • Cameco in 1998
  • Cameco in Northern Saskatchewan (2010)
  • So how did Cameco and the industry do it
  • Placer Dome South Africa
  • Slide Number 29
  • Background
  • Background (cont)
  • Families amp Communities must benefit from mining
  • The Care Project
  • Implications
  • Slide Number 35
  • The Initial 4-Step Plan
  • Reality was different than we expected
  • Reality was different than expected
  • Meeting the challenges
  • TheProcess
  • Some results
  • Chicken raising business
  • Furniture making
  • Unique training programs
  • Rice farming in Mozambique
  • Spaza (convenience) shop
  • And the business value ishellip
  • Slide Number 48
  • What was in it for Placer Dome
  • And then there is HIVAIDS
  • HIVAIDS Facts (in 2000)
  • HIVAIDS Impact
  • HIVAIDS and Gold Mining
  • HIVAIDS Programming
  • Minesite Program
  • Minesite Program
  • Current Community Program
  • Community Mobile Clinic
  • And when HIV prevention doesnrsquot work
  • Industry Home Based Care
  • Home Based Care
  • INDUSTRY HOME BASED CARE RESULTS(Year One)
  • Overview of Placer Dome AIDS Programming
  • Slide Number 64
  • HIVAIDS and Rural Areas
  • HIVAIDS and Rural Areas
  • Reputational Results for Placer Dome
  • Where to next
  • Planned Program
  • Care Positive Summary
  • Andhellip
  • MDG Impacts of Placer Dome in South Africa
  • One thing leads to another
  • PNG HIVAIDS
  • PNG Outcomes (or outputs ndash Irsquom never sure)
  • Slide Number 76
  • PNG AIDS mission to South Africa
  • MDG Impacts of PNG HIVAIDS work
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • MDG Impacts of Eldorado Gold
  • Underwater Logging in Ghana
  • Private Sector and International Development
  • Group Exercise
  • Slide Number 87
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • What we covered
  • Session Objectives
  • Session Objectives
  • Remember
Page 7: Private Sector Contributions To International Development – McGill Executive Education Program Lecture

Why discuss Private Sector Contribution anyway In a speech on Democratizing Development Economics delivered at Georgetown University last September World Bank President Robert Zoellick pointed out that ldquoIn the 2000s Foreign Direct Investment (FDI) inflows were the single biggest source of capital for developing countries and a critical input for technology transfer in developing country firmsrdquo

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

waynewaynedunncom

FDIBusiness Outcomes

waynewaynedunncom

Intention and Strategy Make a Difference In the 1960s Petroleum exploration upstream closed the Orinoco making the water stagnant and devastated the life of the Warao Peoples

waynewaynedunncom

Why does the private sector care

Market is placing increasing value on intangibles Reputational

Capital is closely linked to shareholder value

17

32

68 80 80

83

68

32 20 20

1975 1985 1995 2005 2010

Components of SampP Market Value Intangible Assets Tangible Assets

Adapted from Milla Craigrsquos presentation to ISID ndash March 30 2012

waynewaynedunncom

Community Consultation and Value Study of 26 Gold Mines

owned by 19 publicly traded companies

Period from 1993 to 2008

Examined and coded over 50000 stakeholder events to develop an index of cooperationconflict

Effective consultation and engagement reduced discount rate on gold in ground from 72 to between 12 ndash 32

waynewaynedunncom

Itrsquos Real Money

$280000000

$670000000 $880000000

$720000000

$330000000

$120000000

$0

$100000000

$200000000

$300000000

$400000000

$500000000

$600000000

$700000000

$800000000

$900000000

$1000000000

72 33 12

Lost Value

Value in market

Market value of $1 billion of gold in the ground based on consultation and conflict

CSR is a Value Strategy

Share price of a CSR failure that rendered a multi-billion dollar reserve un-developable Good CSR creates value for company community and other stakeholders

~$1300 $029

Social License Failures cost

Bougaineville (PNG)- corporate practices were directly implicated in provoking civil war allegedly cost Rio Tinto $3 billion (Stanford Univ study) Tambo Grande (Peru) OvacikEurogold (Turkey)

waynewaynedunncom

Globalized world is demanding more of businesshellip Global media ndash The CNNization of the world ndash remote local

issues direct to television screens Social Media ndash Youtube Facebook Twitter etc Everything is

Everywhere and Organizable Proliferation of NGOs and CBOs ndash direct well organized and

financed support to communities

Why is CSR happening

Internet and other communications innovations ndash direct communications from remote projects to worldwide audience

Global Democratization ndash increased attention to local issues

waynewaynedunncom

bull ldquoWe are determined to provide multi-skilling to workers and assist them to cope with retrenchments This is a must and not a choice for industryrdquo

bull ldquoIt 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 pastrdquo Hon Phumizile Mlambo-Ngcuka

South Africa Minister of Minerals and Energy

The Mining World Has Changed

waynewaynedunncom

CSR is a complicated space

135 Codes 929 Page Report And that was in Jan 2007

waynewaynedunncom

CSR amp 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

waynewaynedunncom

Role of business is changing (click image to play video)

Creating Shared Value - Harvard Business Review

waynewaynedunncom

Case Studies (of successes)

Cameco in Northern Saskatchewan ndash indigenous employment and development (Industry Social License) Placer Dome South Africa ndash community development and

womenrsquos empowerment HIVAIDS programming leadership Placer Dome in Papua New Guinea ndash leading public private

partnerships in HIVAIDS programming (and southsouth cooperation) Eldorado Gold in Turkey ndash supporting community priorities CSR Developments in Ghana ndash underwater logging and

social license

waynewaynedunncom

1 Eradicate extreme poverty and hunger 2 Achieve universal primary education 3 Promote gender equality and empower women 4 Reduce child mortality 5 Improve maternal health 6 Combat HIVAIDS malaria and other diseass 7 Ensure environmental sustainability 8 Develop a global partnership for development

waynewaynedunncom

Uranium Industry in Northern Saskatchewan Huge remote area (larger than all but five US States (Alaska Texas California Montana and New Mexico)

Waynersquos World

waynewaynedunncom

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

waynewaynedunncom

Challenging Times

Strong opposition to industry developing bull From Europe bull From within governing party

Industry had difficulties from all sides bull Local stakeholders didnrsquot have the capacity to engage

productively in the industry bull Early days of CSR (1980s) and companies largely didnrsquot

realize the importance of local engagement and value creation

waynewaynedunncom

Cameco in 1998

Camecorsquos approach has transformed the socio-economic well-being of Indigenous Peoples in Northern Saskatchewan

29 30

34

37 3739

42 42 43 44

20

25

30

35

40

45

50

1989 1990 1991 1992 1993 1994 1995 1996 1997 1998(Aug)

Perc

enta

ge o

f Tot

al W

orkf

orce

Cameco Aboriginal Employment(includes permanent contractor workforce)

waynewaynedunncom

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 $25 million to northern and aboriginal

initiatives for youth health and wellness education and literacy and culture and recreation Provided $100000 in scholarships to post-secondary

students

waynewaynedunncom

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 ndash NRT Trucking Skunk workssecret meetings Overcoming culture and practice barriers (drilling

underground mining etc) BHAGs Necessity

waynewaynedunncom Slide 28

Placer Dome South Africa

Case study of innovative developmental CSR Demonstrate application of key CSR principles

CSRSustainability Policy Strategic interventions vs shotgun approaches Impact metrics vs expense metrics Partnership strategies (financial operational technical) Leadership and leverage

Slide 29

Overview

bull Background ndash how did this get started

bull The Care Project ndashDeveloping and implementing the plan (challenges partners learnings) ndashBusiness value created

bull HIVAIDS ndash The Crisis and why does it matter ndash Programs and activities

Slide 30

Background 1990s saw massive changes in South

African mining industry ndash over 100000 jobs lost as the industry restructured 1999 ndash Placer Dome purchased a 50

interest in South Deep (WAL) a mine located just outside Johannesburg bull 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 31

Background (cont) In late 1999 after detailed study management

realized that economic reality dictated major restructuring at South Deep

13 of the South Deep workforce (over 2500) workers were retrenched bull 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 ndash that the commitment went

BEYOND THE PAYCHECK

waynewaynedunncom Slide 32

Families amp Communities must benefit from mining

Slide 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 HIVAIDS 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$36 million) budget was established

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

waynewaynedunncom Slide 35

The Mine

2560 Retrenchees bullMozambique bullLesotho bullSouth Africa bullSwaziland bullBotswana

How to successfully provide socio-economic support across remote rural regions of five countries

waynewaynedunncom Slide 36

The Initial 4-Step Plan 1 Consultations with retrenchees in their villages 2 Recruit (from amongst the retrenchees) a group

of 25-30 fieldworkers who would provide frontline support to the retrenchees and their families

3 Locate and register the retrenchees 4 Provide them with training and support to enable

them to become economically active

All of the above to be done in partnership with MDA TEBA and other partners

waynewaynedunncom Slide 37

Reality was different than we expected Retrenchees and their

Unions were still angry over the contested retrenchment Retrencheesrsquo homes were

difficult to locate and registration was often problematic

Consultations with retrenchees

Walking to a remote retrenchee homestead in Lesotho

Slide 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 HIVAIDS Fieldworker training programs Retrenchee education levels Centralized delivery didnrsquot work Project was under-financed We couldnrsquot do it in two years Etc

Slide 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

waynewaynedunncom Slide 40

The Process

Business Operation1 Ongoing availability of Technical Assistance and Business Counselling2 Ongoing faclitiation of skills training needs (ie business agriculture vocational etc)

Decision on Economic Option

Employment StreamEnterprise Stream

Evaluation of Micro Finance Application

Retrenchee is Re-Integrated and Economically Active

PersonalEconomic Plan

Prepared ampAssessed

PersonalEmployment Plan

Prepared

Business amp Financing Plan

Prepared

Employment Planning amp Preparation1 Identification of Employment Options2 Skills Training (VocationalAgricultural etc)3 Employment Counseling Placement (Job searchResume etc)

Business Planning amp Preparation1 Business Orientation a) Introduction to Business b) SkillsProduct Training2 Develop Draft Business Plan (to be reviewed with Counselor) (plan will contain market assessment financial operational and skills upgrading plan)3 Preparation of Micro-Finance Application

Orientation and Awareness Phase1 Registration amp Homestead Visits2 District Counselling Sessions3 Open DaysCareer Fairs4 Financial Lifes Skills Training5 Feedback and Choices Session

Ongoing Processes

Follow-up sessions activities to monitor effectiveness of interventions

Communication and consultation with stakeholders Continuous improvement process (review feedback enhance programs procedures processes)

13-step process Delivered 18 times Across Five countries

Slide 41

Some results 92 of the retrenchees were located

and registered 57 of those (1250) are economically

active 65 (1556) 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 42

Chicken raising business

Slide 43

Furniture making

waynewaynedunncom Slide 44

Unique training programs

waynewaynedunncom Slide 45

Rice farming in Mozambique

Slide 46

Spaza (convenience) shop

Slide 47

And the business value ishellip HIVAIDS 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 ndash 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

waynewaynedunncom Slide 48

ldquoThe project changed the social face of the South African Mining Industryrdquo

Kgosietsile Mogaki

South African Ministry of Minerals and Energy

waynewaynedunncom Slide 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 globally

Through 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 50

And then there is HIVAIDS

RSA ACCOUNTED FOR NEARLY 1 IN 8 OF THE NEW HIV INFECTIONS THAT OCCURRED WORLD WIDE IN 2000

HIV+ PREVALENCE RATE IN WOMEN ATTENDING ANTE-NATAL CLINICS INCREASED FROM 07 IN 1990 TO 248 IN 2001

AVERAGE OF 1700 NEW INFECTIONS PER DAY

LIFE EXPECTANCY WILL DECLINE FROM 65 TO 40 BY 2011

65

40

0

10

20

30

40

50

60

70

2001 2011

Life Expectancy

waynewaynedunncom Slide 51

HIVAIDS Facts (in 2000)

ESTIMATED THAT 12 OF TOTAL RSA POPULATION AND 25 OF MINEWORKERS ARE HIV+

ALREADY 400000 PEOPLE ARE AIDS SICK AND THIS WILL INCREASE TO 14 M BY 2010

YOUNG WOMEN PARTICULARLY VULNERABLE ndash 239 AGED BETWEEN 15 ndash 49 ALREADY INFECTED AND WILL RISE TO 297 BY 2007

AIDS ORPHANS AT PRESENT AMOUNT TO 660000+ AND WILL RISE TO 18M BY 2015

ACCUMULATIVE AIDS DEATHS WILL RISE TO 9M BY 2015

Slide 52

HIVAIDS Impact REDUCED ECONOMIC GROWTH RATE ndash 2010 GDP 20 below a non AIDS

scenario REDUCED POPULATION ndash RSA population 10M smaller than non AIDS scenario SKYROCKETING DEMANDS ON PUBLIC HEALTH SYSTEM - RADICALLY CHANGED PRIVATE SPENDING PATTERNS ndash to healthcare and

funeral costs IMPACT ON SOCIO-ECONOMIC STABILITY (orphans)

HIVAIDS 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 Africa today Nobody can afford to ignore it

Slide 53

HIVAIDS and Gold Mining

$10oz impact if nothing is done (5 of production costs) ~$3oz with maximum

intervention Impact on social and political

stability

Slide 54

HIVAIDS Programming Placer Dome program ndash

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 55

Minesite Program

TRAINING AND EDUCATION

STI amp TB TREATMENT

CONDOM DISTRIBUTION

PEER EDUCATION

VOLUNTARY COUNSELING AND TESTING (VCT)

WELLNESS PROGRAM

MEDICAL REPATRIATION

waynewaynedunncom Slide 56

Minesite Program

waynewaynedunncom Slide 57

Current Community Program

AWARENESS AND EDUCATION PROGRAMS

MOBILE CLINIC

CONDOM amp FEMIDOM DISTRIBUTION

PERIODIC PRESUMPTIVE TREATMENT (PPT)

TREATMENT FOR SEXUALLY TRANSMITTED INFECTIONS ( STI)

waynewaynedunncom Slide 58

COMMUNITY PROGRAM

Community Mobile Clinic

waynewaynedunncom Slide 59

And when HIV prevention doesnrsquot 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 60

Industry Home Based Care

TEBA INFRA-STRUCTURE

TRAINING OF CARE GIVERS

SUPPORT STRUCTURE ndash QUALIFIED STAFF

MONTHLY MEDICATION

WORK WITH OTHER STAKEHOLDERS (EG TRADITIONAL HEALERS)

WORLD BANK DEVELOPMENT INNOVATION AWARD

waynewaynedunncom Slide 61

Home Based Care

Slide 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

waynewaynedunncom Slide 63

Overview of Placer Dome AIDS Programming SOUTH DEEP Sustainable Development Department

bullVoluntary Counseling and testing HIV Negative bullContinue working

On Mine Program Community Program

Modified work program Farm bullAgricultural work Environmental

Medical repatriation

Home Based Care

Benefits Care Positive

HBC EC OPP

Back to work or Re skilled

Wellness Program

waynewaynedunncom Slide 64

But what happens to children and families when the breadwinner canrsquot

work

Slide 65

HIVAIDS and Rural Areas HIVAIDS 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

Slide 66

HIVAIDS 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

waynewaynedunncom

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 CSREthical

Project Award (2004) Numerous other awards Stanford Case Study

waynewaynedunncom Slide 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 69

Planned Program

Care Positive Integrate the Home Based Care

project with the Care process and launch as a fee for service based program to address the social and 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

Care Process

+

Home Based Care

=

Care Positive

waynewaynedunncom Slide 70

Care Positive Summary

waynewaynedunncom

Andhellip 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 $100000 and considerable reputational capital into them Industry went forward with modified HIVAIDS

programming but huge developmental impacts were lost

waynewaynedunncom Slide 72

MDG Impacts of Placer Dome in South Africa

1 Poverty and hunger 2 Some impact on primary education (School

feeding program) 3 Promote gender equality and empower women 4 Reduce child mortality 5 Improve maternal health 6 Combat HIVAIDS malaria and other diseass 7 Ensure environmental sustainability 8 Develop a global partnership for development

(Placer Dome CIDA Civil Society NGOs)

waynewaynedunncom

One thing leads to another

World Bank observed how Placer Domersquos leadership on HIVAIDS 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

waynewaynedunncom

PNG HIVAIDS Scoping mission to

determine what might be done and how Enthusiastic interest from

industry government multi-laterals (WHO UNAIDS World Banketc) ODA (AusAID) CIDA partnered with Place Dome to develop an

HIVAIDS strategy for PNG that integrated industry public sector civil society and international community

waynewaynedunncom

PNG Outcomes (or outputs ndash Irsquom never sure) Partnership with Mining

Industry Civil Society WHO UNAIDS UNDP World Bank PNG AIDS AusAID Oil Palm Industry etc National workshop on

HIVAIDS and publicprivate partnerships SouthSouth Collaboration

Industry government civil society international community study trip to South Africa

waynewaynedunncom

waynewaynedunncom

PNG AIDS mission to South Africa

waynewaynedunncom Slide 78

MDG Impacts of PNG HIVAIDS work

1 Poverty and hunger (nutritional supplements) 2 Some impact on primary education (peripheral) 3 Promote gender equality and empower women 4 Reduce child mortality 5 Improve maternal health 6 Combat HIVAIDS malaria and other diseass 7 Ensure environmental sustainability 8 Develop a global partnership for development

(Placer Dome CIDA Civil Society NGOs)

waynewaynedunncom

Eldorado Gold in Turkey

Major gold find in WestCentral Turkey No successful

mining project launched in decades Eurogold project

built launched and halted by community action in late 1990s ndash still mothballed

UsakKislidag Minesite

Eurogold site

waynewaynedunncom

Eldorado Gold in Turkey

Isolated rural area Nearly half of nearby

communities opposed to mine development Agriculture primary

economic activity in rural communities ndash smallmicro family farms

waynewaynedunncom

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

waynewaynedunncom

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 $075 to $1325 Opened second mine in Turkey

bull Able to deal with controversial watershed issues after relationship success in Usak

waynewaynedunncom Slide 83

MDG Impacts of Eldorado Gold

1 Poverty and hunger (minimal) 2 Some impact on primary education (peripheral) 3 Promote gender equality and empower women 4 Reduce child mortality 5 Improve maternal health 6 Combat HIVAIDS malaria and other diseass 7 Ensure environmental sustainability 8 Develop a global partnership for development

(Placer Dome CIDA Civil Society NGOs)

waynewaynedunncom

Underwater Logging in Ghana

waynewaynedunncom

Private Sector and International Development

Private sector especially resource extraction has a very mixed record bull Some horrendous disasters (Nigeria Warao Peoples in

Venezuela etc) bull Some great successes (Placer Dome Care project

mining and HIVAIDS 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

waynewaynedunncom

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

interestsobjectives overlap

waynewaynedunncom

SDCSR Implementation Challenges

more than a warm fuzzy issue Spending isnrsquot the answer

Plan

Framework

System

Results

Solving social problems Objectives

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Beyond Beads and Trinkets ndash BC Mining Review

A lsquohow torsquo article on mining and CSR

Wayne Dunn

BP Venezuela Indigenous Relations ndash Meeting the Challenge Responsibly and Sustainably

Situational assessment and strategic plan for BP Venezuela Authorized for release by BP

Wayne Dunn

Cameco Community Relations Report

Situational assessment and management strategy Authorized for release by Cameco

Wayne Dunn

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author Beyond Beads lsquon Trinkets A systematic approach to managing community relations

A conference paper describing a systematic approach to community relations management helping companies to methodically develop mutually beneficial relationships with local communities and interests (this is one of the earliest papers on this subject ndash written in 1998)

Wayne Dunn

The costs of conflict with local communities in the extractive industry

Analysis of the cost of community conflicts in the Extractive Sector

Rachel Davis and Daniel M Franks

Creating Shared Value

Harvard Business Review interview with Michael Porter

Video

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Social License Its all about value

Discussion on Social License and shareholder Value

Wayne Dunn

Its about Development Commentary on the CIDAMining Company issue

Wayne Dunn

Integrating corporate strategy and social responsibilitymdashmarket returns from stakeholder engagement

Discussion and analysis on market returns on stakeholder engagement

Witold J Henisz Sinziana Dorobantu and Lite J Narty

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

McGill Reporter ndash Four Burning Questions Wayne Dunn on CSR

Discussion on CSR Wayne Dunn

Miningrsquos contribution to sustainable development ndashan overview

Discussion paper prepared by the International Council on Mining and Metals

Millennium Development Goals

United Nations

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Mining and Agriculture Development

A short lsquohow torsquo guide for mining projects to engage with the local agriculture sector

Al Hingston

PDSA Social Value Brochure

Brochure on social value created by Placer Dome South Africa

Placer Dome

The Value of Social License

Opinion piece published in Northern Miner

Wayne Dunn

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Golden Opportunity When a Canadian multinational laid off hundreds of gold miners in South Africa it went many extra miles to help them get back on their feet

Stanford Business School Case Study on Placer Dome in South Africa

Wayne Dunn

The Changing Resource Development Paradigm Maximizing Sustainable Local Benefits from Resource Development

Strategic thought piece prepared for the government of British Columbia Canada

Wayne Dunn

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

The Disappearing Barriers Between Business And Non-profits Are Driving Innovation

Discussion paper

Katherine Pikus

When Condoms are not enough

World Bank staff magazine article on Placer Dome and South African mining industryrsquos work with HIVAIDS

Craig Andrews

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

MINING AND LOCAL ECONOMIC DEVELOPMENT IN PAPUA NEW GUINEA Preliminary Research on a Potential Pilot Project in Porgera and Lihir

Strategic research and action plan on mining and local economic development in Papua New Guinea prepared for the World Bank

Wayne Dunn

waynewaynedunncom

What we covered

We 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) Publicprivatecivil society collaboration ndash case study

and discussion (CIDA and Mining Companies) Open discussion on topics of interest (time permitting)

waynewaynedunncom

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 howwhy 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

waynewaynedunncom

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 howwhy 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

waynewaynedunncom

Alignment around Shared Value For shareholders For Communities For People For Governments

Private Sector Contributions To International Development

Remember

  • Private Sector Contributions To International Development
  • Session Objectives
  • Map of the morning How we will try to meet the objectives
  • Slide Number 4
  • What is ODA and FDI
  • What is ODA and FDI
  • Why discuss Private Sector Contribution anyway
  • FDIBusiness Outcomes
  • Intention and Strategy Make a Difference
  • Why does the private sector care
  • Community Consultation and Value
  • Itrsquos Real Money
  • CSR is a Value Strategy
  • Social License Failures cost
  • Why is CSR happening
  • The Mining World Has Changed
  • CSR is a complicated space
  • CSR amp Social License
  • Role of business is changing (click image to play video)
  • Case Studies (of successes)
  • Slide Number 21
  • Uranium Industry in Northern Saskatchewan
  • Challenging area
  • Challenging Times
  • Cameco in 1998
  • Cameco in Northern Saskatchewan (2010)
  • So how did Cameco and the industry do it
  • Placer Dome South Africa
  • Slide Number 29
  • Background
  • Background (cont)
  • Families amp Communities must benefit from mining
  • The Care Project
  • Implications
  • Slide Number 35
  • The Initial 4-Step Plan
  • Reality was different than we expected
  • Reality was different than expected
  • Meeting the challenges
  • TheProcess
  • Some results
  • Chicken raising business
  • Furniture making
  • Unique training programs
  • Rice farming in Mozambique
  • Spaza (convenience) shop
  • And the business value ishellip
  • Slide Number 48
  • What was in it for Placer Dome
  • And then there is HIVAIDS
  • HIVAIDS Facts (in 2000)
  • HIVAIDS Impact
  • HIVAIDS and Gold Mining
  • HIVAIDS Programming
  • Minesite Program
  • Minesite Program
  • Current Community Program
  • Community Mobile Clinic
  • And when HIV prevention doesnrsquot work
  • Industry Home Based Care
  • Home Based Care
  • INDUSTRY HOME BASED CARE RESULTS(Year One)
  • Overview of Placer Dome AIDS Programming
  • Slide Number 64
  • HIVAIDS and Rural Areas
  • HIVAIDS and Rural Areas
  • Reputational Results for Placer Dome
  • Where to next
  • Planned Program
  • Care Positive Summary
  • Andhellip
  • MDG Impacts of Placer Dome in South Africa
  • One thing leads to another
  • PNG HIVAIDS
  • PNG Outcomes (or outputs ndash Irsquom never sure)
  • Slide Number 76
  • PNG AIDS mission to South Africa
  • MDG Impacts of PNG HIVAIDS work
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • MDG Impacts of Eldorado Gold
  • Underwater Logging in Ghana
  • Private Sector and International Development
  • Group Exercise
  • Slide Number 87
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • What we covered
  • Session Objectives
  • Session Objectives
  • Remember
Page 8: Private Sector Contributions To International Development – McGill Executive Education Program Lecture

waynewaynedunncom

FDIBusiness Outcomes

waynewaynedunncom

Intention and Strategy Make a Difference In the 1960s Petroleum exploration upstream closed the Orinoco making the water stagnant and devastated the life of the Warao Peoples

waynewaynedunncom

Why does the private sector care

Market is placing increasing value on intangibles Reputational

Capital is closely linked to shareholder value

17

32

68 80 80

83

68

32 20 20

1975 1985 1995 2005 2010

Components of SampP Market Value Intangible Assets Tangible Assets

Adapted from Milla Craigrsquos presentation to ISID ndash March 30 2012

waynewaynedunncom

Community Consultation and Value Study of 26 Gold Mines

owned by 19 publicly traded companies

Period from 1993 to 2008

Examined and coded over 50000 stakeholder events to develop an index of cooperationconflict

Effective consultation and engagement reduced discount rate on gold in ground from 72 to between 12 ndash 32

waynewaynedunncom

Itrsquos Real Money

$280000000

$670000000 $880000000

$720000000

$330000000

$120000000

$0

$100000000

$200000000

$300000000

$400000000

$500000000

$600000000

$700000000

$800000000

$900000000

$1000000000

72 33 12

Lost Value

Value in market

Market value of $1 billion of gold in the ground based on consultation and conflict

CSR is a Value Strategy

Share price of a CSR failure that rendered a multi-billion dollar reserve un-developable Good CSR creates value for company community and other stakeholders

~$1300 $029

Social License Failures cost

Bougaineville (PNG)- corporate practices were directly implicated in provoking civil war allegedly cost Rio Tinto $3 billion (Stanford Univ study) Tambo Grande (Peru) OvacikEurogold (Turkey)

waynewaynedunncom

Globalized world is demanding more of businesshellip Global media ndash The CNNization of the world ndash remote local

issues direct to television screens Social Media ndash Youtube Facebook Twitter etc Everything is

Everywhere and Organizable Proliferation of NGOs and CBOs ndash direct well organized and

financed support to communities

Why is CSR happening

Internet and other communications innovations ndash direct communications from remote projects to worldwide audience

Global Democratization ndash increased attention to local issues

waynewaynedunncom

bull ldquoWe are determined to provide multi-skilling to workers and assist them to cope with retrenchments This is a must and not a choice for industryrdquo

bull ldquoIt 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 pastrdquo Hon Phumizile Mlambo-Ngcuka

South Africa Minister of Minerals and Energy

The Mining World Has Changed

waynewaynedunncom

CSR is a complicated space

135 Codes 929 Page Report And that was in Jan 2007

waynewaynedunncom

CSR amp 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

waynewaynedunncom

Role of business is changing (click image to play video)

Creating Shared Value - Harvard Business Review

waynewaynedunncom

Case Studies (of successes)

Cameco in Northern Saskatchewan ndash indigenous employment and development (Industry Social License) Placer Dome South Africa ndash community development and

womenrsquos empowerment HIVAIDS programming leadership Placer Dome in Papua New Guinea ndash leading public private

partnerships in HIVAIDS programming (and southsouth cooperation) Eldorado Gold in Turkey ndash supporting community priorities CSR Developments in Ghana ndash underwater logging and

social license

waynewaynedunncom

1 Eradicate extreme poverty and hunger 2 Achieve universal primary education 3 Promote gender equality and empower women 4 Reduce child mortality 5 Improve maternal health 6 Combat HIVAIDS malaria and other diseass 7 Ensure environmental sustainability 8 Develop a global partnership for development

waynewaynedunncom

Uranium Industry in Northern Saskatchewan Huge remote area (larger than all but five US States (Alaska Texas California Montana and New Mexico)

Waynersquos World

waynewaynedunncom

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

waynewaynedunncom

Challenging Times

Strong opposition to industry developing bull From Europe bull From within governing party

Industry had difficulties from all sides bull Local stakeholders didnrsquot have the capacity to engage

productively in the industry bull Early days of CSR (1980s) and companies largely didnrsquot

realize the importance of local engagement and value creation

waynewaynedunncom

Cameco in 1998

Camecorsquos approach has transformed the socio-economic well-being of Indigenous Peoples in Northern Saskatchewan

29 30

34

37 3739

42 42 43 44

20

25

30

35

40

45

50

1989 1990 1991 1992 1993 1994 1995 1996 1997 1998(Aug)

Perc

enta

ge o

f Tot

al W

orkf

orce

Cameco Aboriginal Employment(includes permanent contractor workforce)

waynewaynedunncom

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 $25 million to northern and aboriginal

initiatives for youth health and wellness education and literacy and culture and recreation Provided $100000 in scholarships to post-secondary

students

waynewaynedunncom

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 ndash NRT Trucking Skunk workssecret meetings Overcoming culture and practice barriers (drilling

underground mining etc) BHAGs Necessity

waynewaynedunncom Slide 28

Placer Dome South Africa

Case study of innovative developmental CSR Demonstrate application of key CSR principles

CSRSustainability Policy Strategic interventions vs shotgun approaches Impact metrics vs expense metrics Partnership strategies (financial operational technical) Leadership and leverage

Slide 29

Overview

bull Background ndash how did this get started

bull The Care Project ndashDeveloping and implementing the plan (challenges partners learnings) ndashBusiness value created

bull HIVAIDS ndash The Crisis and why does it matter ndash Programs and activities

Slide 30

Background 1990s saw massive changes in South

African mining industry ndash over 100000 jobs lost as the industry restructured 1999 ndash Placer Dome purchased a 50

interest in South Deep (WAL) a mine located just outside Johannesburg bull 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 31

Background (cont) In late 1999 after detailed study management

realized that economic reality dictated major restructuring at South Deep

13 of the South Deep workforce (over 2500) workers were retrenched bull 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 ndash that the commitment went

BEYOND THE PAYCHECK

waynewaynedunncom Slide 32

Families amp Communities must benefit from mining

Slide 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 HIVAIDS 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$36 million) budget was established

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

waynewaynedunncom Slide 35

The Mine

2560 Retrenchees bullMozambique bullLesotho bullSouth Africa bullSwaziland bullBotswana

How to successfully provide socio-economic support across remote rural regions of five countries

waynewaynedunncom Slide 36

The Initial 4-Step Plan 1 Consultations with retrenchees in their villages 2 Recruit (from amongst the retrenchees) a group

of 25-30 fieldworkers who would provide frontline support to the retrenchees and their families

3 Locate and register the retrenchees 4 Provide them with training and support to enable

them to become economically active

All of the above to be done in partnership with MDA TEBA and other partners

waynewaynedunncom Slide 37

Reality was different than we expected Retrenchees and their

Unions were still angry over the contested retrenchment Retrencheesrsquo homes were

difficult to locate and registration was often problematic

Consultations with retrenchees

Walking to a remote retrenchee homestead in Lesotho

Slide 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 HIVAIDS Fieldworker training programs Retrenchee education levels Centralized delivery didnrsquot work Project was under-financed We couldnrsquot do it in two years Etc

Slide 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

waynewaynedunncom Slide 40

The Process

Business Operation1 Ongoing availability of Technical Assistance and Business Counselling2 Ongoing faclitiation of skills training needs (ie business agriculture vocational etc)

Decision on Economic Option

Employment StreamEnterprise Stream

Evaluation of Micro Finance Application

Retrenchee is Re-Integrated and Economically Active

PersonalEconomic Plan

Prepared ampAssessed

PersonalEmployment Plan

Prepared

Business amp Financing Plan

Prepared

Employment Planning amp Preparation1 Identification of Employment Options2 Skills Training (VocationalAgricultural etc)3 Employment Counseling Placement (Job searchResume etc)

Business Planning amp Preparation1 Business Orientation a) Introduction to Business b) SkillsProduct Training2 Develop Draft Business Plan (to be reviewed with Counselor) (plan will contain market assessment financial operational and skills upgrading plan)3 Preparation of Micro-Finance Application

Orientation and Awareness Phase1 Registration amp Homestead Visits2 District Counselling Sessions3 Open DaysCareer Fairs4 Financial Lifes Skills Training5 Feedback and Choices Session

Ongoing Processes

Follow-up sessions activities to monitor effectiveness of interventions

Communication and consultation with stakeholders Continuous improvement process (review feedback enhance programs procedures processes)

13-step process Delivered 18 times Across Five countries

Slide 41

Some results 92 of the retrenchees were located

and registered 57 of those (1250) are economically

active 65 (1556) 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 42

Chicken raising business

Slide 43

Furniture making

waynewaynedunncom Slide 44

Unique training programs

waynewaynedunncom Slide 45

Rice farming in Mozambique

Slide 46

Spaza (convenience) shop

Slide 47

And the business value ishellip HIVAIDS 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 ndash 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

waynewaynedunncom Slide 48

ldquoThe project changed the social face of the South African Mining Industryrdquo

Kgosietsile Mogaki

South African Ministry of Minerals and Energy

waynewaynedunncom Slide 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 globally

Through 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 50

And then there is HIVAIDS

RSA ACCOUNTED FOR NEARLY 1 IN 8 OF THE NEW HIV INFECTIONS THAT OCCURRED WORLD WIDE IN 2000

HIV+ PREVALENCE RATE IN WOMEN ATTENDING ANTE-NATAL CLINICS INCREASED FROM 07 IN 1990 TO 248 IN 2001

AVERAGE OF 1700 NEW INFECTIONS PER DAY

LIFE EXPECTANCY WILL DECLINE FROM 65 TO 40 BY 2011

65

40

0

10

20

30

40

50

60

70

2001 2011

Life Expectancy

waynewaynedunncom Slide 51

HIVAIDS Facts (in 2000)

ESTIMATED THAT 12 OF TOTAL RSA POPULATION AND 25 OF MINEWORKERS ARE HIV+

ALREADY 400000 PEOPLE ARE AIDS SICK AND THIS WILL INCREASE TO 14 M BY 2010

YOUNG WOMEN PARTICULARLY VULNERABLE ndash 239 AGED BETWEEN 15 ndash 49 ALREADY INFECTED AND WILL RISE TO 297 BY 2007

AIDS ORPHANS AT PRESENT AMOUNT TO 660000+ AND WILL RISE TO 18M BY 2015

ACCUMULATIVE AIDS DEATHS WILL RISE TO 9M BY 2015

Slide 52

HIVAIDS Impact REDUCED ECONOMIC GROWTH RATE ndash 2010 GDP 20 below a non AIDS

scenario REDUCED POPULATION ndash RSA population 10M smaller than non AIDS scenario SKYROCKETING DEMANDS ON PUBLIC HEALTH SYSTEM - RADICALLY CHANGED PRIVATE SPENDING PATTERNS ndash to healthcare and

funeral costs IMPACT ON SOCIO-ECONOMIC STABILITY (orphans)

HIVAIDS 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 Africa today Nobody can afford to ignore it

Slide 53

HIVAIDS and Gold Mining

$10oz impact if nothing is done (5 of production costs) ~$3oz with maximum

intervention Impact on social and political

stability

Slide 54

HIVAIDS Programming Placer Dome program ndash

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 55

Minesite Program

TRAINING AND EDUCATION

STI amp TB TREATMENT

CONDOM DISTRIBUTION

PEER EDUCATION

VOLUNTARY COUNSELING AND TESTING (VCT)

WELLNESS PROGRAM

MEDICAL REPATRIATION

waynewaynedunncom Slide 56

Minesite Program

waynewaynedunncom Slide 57

Current Community Program

AWARENESS AND EDUCATION PROGRAMS

MOBILE CLINIC

CONDOM amp FEMIDOM DISTRIBUTION

PERIODIC PRESUMPTIVE TREATMENT (PPT)

TREATMENT FOR SEXUALLY TRANSMITTED INFECTIONS ( STI)

waynewaynedunncom Slide 58

COMMUNITY PROGRAM

Community Mobile Clinic

waynewaynedunncom Slide 59

And when HIV prevention doesnrsquot 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 60

Industry Home Based Care

TEBA INFRA-STRUCTURE

TRAINING OF CARE GIVERS

SUPPORT STRUCTURE ndash QUALIFIED STAFF

MONTHLY MEDICATION

WORK WITH OTHER STAKEHOLDERS (EG TRADITIONAL HEALERS)

WORLD BANK DEVELOPMENT INNOVATION AWARD

waynewaynedunncom Slide 61

Home Based Care

Slide 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

waynewaynedunncom Slide 63

Overview of Placer Dome AIDS Programming SOUTH DEEP Sustainable Development Department

bullVoluntary Counseling and testing HIV Negative bullContinue working

On Mine Program Community Program

Modified work program Farm bullAgricultural work Environmental

Medical repatriation

Home Based Care

Benefits Care Positive

HBC EC OPP

Back to work or Re skilled

Wellness Program

waynewaynedunncom Slide 64

But what happens to children and families when the breadwinner canrsquot

work

Slide 65

HIVAIDS and Rural Areas HIVAIDS 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

Slide 66

HIVAIDS 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

waynewaynedunncom

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 CSREthical

Project Award (2004) Numerous other awards Stanford Case Study

waynewaynedunncom Slide 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 69

Planned Program

Care Positive Integrate the Home Based Care

project with the Care process and launch as a fee for service based program to address the social and 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

Care Process

+

Home Based Care

=

Care Positive

waynewaynedunncom Slide 70

Care Positive Summary

waynewaynedunncom

Andhellip 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 $100000 and considerable reputational capital into them Industry went forward with modified HIVAIDS

programming but huge developmental impacts were lost

waynewaynedunncom Slide 72

MDG Impacts of Placer Dome in South Africa

1 Poverty and hunger 2 Some impact on primary education (School

feeding program) 3 Promote gender equality and empower women 4 Reduce child mortality 5 Improve maternal health 6 Combat HIVAIDS malaria and other diseass 7 Ensure environmental sustainability 8 Develop a global partnership for development

(Placer Dome CIDA Civil Society NGOs)

waynewaynedunncom

One thing leads to another

World Bank observed how Placer Domersquos leadership on HIVAIDS 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

waynewaynedunncom

PNG HIVAIDS Scoping mission to

determine what might be done and how Enthusiastic interest from

industry government multi-laterals (WHO UNAIDS World Banketc) ODA (AusAID) CIDA partnered with Place Dome to develop an

HIVAIDS strategy for PNG that integrated industry public sector civil society and international community

waynewaynedunncom

PNG Outcomes (or outputs ndash Irsquom never sure) Partnership with Mining

Industry Civil Society WHO UNAIDS UNDP World Bank PNG AIDS AusAID Oil Palm Industry etc National workshop on

HIVAIDS and publicprivate partnerships SouthSouth Collaboration

Industry government civil society international community study trip to South Africa

waynewaynedunncom

waynewaynedunncom

PNG AIDS mission to South Africa

waynewaynedunncom Slide 78

MDG Impacts of PNG HIVAIDS work

1 Poverty and hunger (nutritional supplements) 2 Some impact on primary education (peripheral) 3 Promote gender equality and empower women 4 Reduce child mortality 5 Improve maternal health 6 Combat HIVAIDS malaria and other diseass 7 Ensure environmental sustainability 8 Develop a global partnership for development

(Placer Dome CIDA Civil Society NGOs)

waynewaynedunncom

Eldorado Gold in Turkey

Major gold find in WestCentral Turkey No successful

mining project launched in decades Eurogold project

built launched and halted by community action in late 1990s ndash still mothballed

UsakKislidag Minesite

Eurogold site

waynewaynedunncom

Eldorado Gold in Turkey

Isolated rural area Nearly half of nearby

communities opposed to mine development Agriculture primary

economic activity in rural communities ndash smallmicro family farms

waynewaynedunncom

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

waynewaynedunncom

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 $075 to $1325 Opened second mine in Turkey

bull Able to deal with controversial watershed issues after relationship success in Usak

waynewaynedunncom Slide 83

MDG Impacts of Eldorado Gold

1 Poverty and hunger (minimal) 2 Some impact on primary education (peripheral) 3 Promote gender equality and empower women 4 Reduce child mortality 5 Improve maternal health 6 Combat HIVAIDS malaria and other diseass 7 Ensure environmental sustainability 8 Develop a global partnership for development

(Placer Dome CIDA Civil Society NGOs)

waynewaynedunncom

Underwater Logging in Ghana

waynewaynedunncom

Private Sector and International Development

Private sector especially resource extraction has a very mixed record bull Some horrendous disasters (Nigeria Warao Peoples in

Venezuela etc) bull Some great successes (Placer Dome Care project

mining and HIVAIDS 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

waynewaynedunncom

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

interestsobjectives overlap

waynewaynedunncom

SDCSR Implementation Challenges

more than a warm fuzzy issue Spending isnrsquot the answer

Plan

Framework

System

Results

Solving social problems Objectives

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Beyond Beads and Trinkets ndash BC Mining Review

A lsquohow torsquo article on mining and CSR

Wayne Dunn

BP Venezuela Indigenous Relations ndash Meeting the Challenge Responsibly and Sustainably

Situational assessment and strategic plan for BP Venezuela Authorized for release by BP

Wayne Dunn

Cameco Community Relations Report

Situational assessment and management strategy Authorized for release by Cameco

Wayne Dunn

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author Beyond Beads lsquon Trinkets A systematic approach to managing community relations

A conference paper describing a systematic approach to community relations management helping companies to methodically develop mutually beneficial relationships with local communities and interests (this is one of the earliest papers on this subject ndash written in 1998)

Wayne Dunn

The costs of conflict with local communities in the extractive industry

Analysis of the cost of community conflicts in the Extractive Sector

Rachel Davis and Daniel M Franks

Creating Shared Value

Harvard Business Review interview with Michael Porter

Video

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Social License Its all about value

Discussion on Social License and shareholder Value

Wayne Dunn

Its about Development Commentary on the CIDAMining Company issue

Wayne Dunn

Integrating corporate strategy and social responsibilitymdashmarket returns from stakeholder engagement

Discussion and analysis on market returns on stakeholder engagement

Witold J Henisz Sinziana Dorobantu and Lite J Narty

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

McGill Reporter ndash Four Burning Questions Wayne Dunn on CSR

Discussion on CSR Wayne Dunn

Miningrsquos contribution to sustainable development ndashan overview

Discussion paper prepared by the International Council on Mining and Metals

Millennium Development Goals

United Nations

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Mining and Agriculture Development

A short lsquohow torsquo guide for mining projects to engage with the local agriculture sector

Al Hingston

PDSA Social Value Brochure

Brochure on social value created by Placer Dome South Africa

Placer Dome

The Value of Social License

Opinion piece published in Northern Miner

Wayne Dunn

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Golden Opportunity When a Canadian multinational laid off hundreds of gold miners in South Africa it went many extra miles to help them get back on their feet

Stanford Business School Case Study on Placer Dome in South Africa

Wayne Dunn

The Changing Resource Development Paradigm Maximizing Sustainable Local Benefits from Resource Development

Strategic thought piece prepared for the government of British Columbia Canada

Wayne Dunn

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

The Disappearing Barriers Between Business And Non-profits Are Driving Innovation

Discussion paper

Katherine Pikus

When Condoms are not enough

World Bank staff magazine article on Placer Dome and South African mining industryrsquos work with HIVAIDS

Craig Andrews

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

MINING AND LOCAL ECONOMIC DEVELOPMENT IN PAPUA NEW GUINEA Preliminary Research on a Potential Pilot Project in Porgera and Lihir

Strategic research and action plan on mining and local economic development in Papua New Guinea prepared for the World Bank

Wayne Dunn

waynewaynedunncom

What we covered

We 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) Publicprivatecivil society collaboration ndash case study

and discussion (CIDA and Mining Companies) Open discussion on topics of interest (time permitting)

waynewaynedunncom

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 howwhy 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

waynewaynedunncom

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 howwhy 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

waynewaynedunncom

Alignment around Shared Value For shareholders For Communities For People For Governments

Private Sector Contributions To International Development

Remember

  • Private Sector Contributions To International Development
  • Session Objectives
  • Map of the morning How we will try to meet the objectives
  • Slide Number 4
  • What is ODA and FDI
  • What is ODA and FDI
  • Why discuss Private Sector Contribution anyway
  • FDIBusiness Outcomes
  • Intention and Strategy Make a Difference
  • Why does the private sector care
  • Community Consultation and Value
  • Itrsquos Real Money
  • CSR is a Value Strategy
  • Social License Failures cost
  • Why is CSR happening
  • The Mining World Has Changed
  • CSR is a complicated space
  • CSR amp Social License
  • Role of business is changing (click image to play video)
  • Case Studies (of successes)
  • Slide Number 21
  • Uranium Industry in Northern Saskatchewan
  • Challenging area
  • Challenging Times
  • Cameco in 1998
  • Cameco in Northern Saskatchewan (2010)
  • So how did Cameco and the industry do it
  • Placer Dome South Africa
  • Slide Number 29
  • Background
  • Background (cont)
  • Families amp Communities must benefit from mining
  • The Care Project
  • Implications
  • Slide Number 35
  • The Initial 4-Step Plan
  • Reality was different than we expected
  • Reality was different than expected
  • Meeting the challenges
  • TheProcess
  • Some results
  • Chicken raising business
  • Furniture making
  • Unique training programs
  • Rice farming in Mozambique
  • Spaza (convenience) shop
  • And the business value ishellip
  • Slide Number 48
  • What was in it for Placer Dome
  • And then there is HIVAIDS
  • HIVAIDS Facts (in 2000)
  • HIVAIDS Impact
  • HIVAIDS and Gold Mining
  • HIVAIDS Programming
  • Minesite Program
  • Minesite Program
  • Current Community Program
  • Community Mobile Clinic
  • And when HIV prevention doesnrsquot work
  • Industry Home Based Care
  • Home Based Care
  • INDUSTRY HOME BASED CARE RESULTS(Year One)
  • Overview of Placer Dome AIDS Programming
  • Slide Number 64
  • HIVAIDS and Rural Areas
  • HIVAIDS and Rural Areas
  • Reputational Results for Placer Dome
  • Where to next
  • Planned Program
  • Care Positive Summary
  • Andhellip
  • MDG Impacts of Placer Dome in South Africa
  • One thing leads to another
  • PNG HIVAIDS
  • PNG Outcomes (or outputs ndash Irsquom never sure)
  • Slide Number 76
  • PNG AIDS mission to South Africa
  • MDG Impacts of PNG HIVAIDS work
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • MDG Impacts of Eldorado Gold
  • Underwater Logging in Ghana
  • Private Sector and International Development
  • Group Exercise
  • Slide Number 87
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • What we covered
  • Session Objectives
  • Session Objectives
  • Remember
Page 9: Private Sector Contributions To International Development – McGill Executive Education Program Lecture

waynewaynedunncom

Intention and Strategy Make a Difference In the 1960s Petroleum exploration upstream closed the Orinoco making the water stagnant and devastated the life of the Warao Peoples

waynewaynedunncom

Why does the private sector care

Market is placing increasing value on intangibles Reputational

Capital is closely linked to shareholder value

17

32

68 80 80

83

68

32 20 20

1975 1985 1995 2005 2010

Components of SampP Market Value Intangible Assets Tangible Assets

Adapted from Milla Craigrsquos presentation to ISID ndash March 30 2012

waynewaynedunncom

Community Consultation and Value Study of 26 Gold Mines

owned by 19 publicly traded companies

Period from 1993 to 2008

Examined and coded over 50000 stakeholder events to develop an index of cooperationconflict

Effective consultation and engagement reduced discount rate on gold in ground from 72 to between 12 ndash 32

waynewaynedunncom

Itrsquos Real Money

$280000000

$670000000 $880000000

$720000000

$330000000

$120000000

$0

$100000000

$200000000

$300000000

$400000000

$500000000

$600000000

$700000000

$800000000

$900000000

$1000000000

72 33 12

Lost Value

Value in market

Market value of $1 billion of gold in the ground based on consultation and conflict

CSR is a Value Strategy

Share price of a CSR failure that rendered a multi-billion dollar reserve un-developable Good CSR creates value for company community and other stakeholders

~$1300 $029

Social License Failures cost

Bougaineville (PNG)- corporate practices were directly implicated in provoking civil war allegedly cost Rio Tinto $3 billion (Stanford Univ study) Tambo Grande (Peru) OvacikEurogold (Turkey)

waynewaynedunncom

Globalized world is demanding more of businesshellip Global media ndash The CNNization of the world ndash remote local

issues direct to television screens Social Media ndash Youtube Facebook Twitter etc Everything is

Everywhere and Organizable Proliferation of NGOs and CBOs ndash direct well organized and

financed support to communities

Why is CSR happening

Internet and other communications innovations ndash direct communications from remote projects to worldwide audience

Global Democratization ndash increased attention to local issues

waynewaynedunncom

bull ldquoWe are determined to provide multi-skilling to workers and assist them to cope with retrenchments This is a must and not a choice for industryrdquo

bull ldquoIt 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 pastrdquo Hon Phumizile Mlambo-Ngcuka

South Africa Minister of Minerals and Energy

The Mining World Has Changed

waynewaynedunncom

CSR is a complicated space

135 Codes 929 Page Report And that was in Jan 2007

waynewaynedunncom

CSR amp 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

waynewaynedunncom

Role of business is changing (click image to play video)

Creating Shared Value - Harvard Business Review

waynewaynedunncom

Case Studies (of successes)

Cameco in Northern Saskatchewan ndash indigenous employment and development (Industry Social License) Placer Dome South Africa ndash community development and

womenrsquos empowerment HIVAIDS programming leadership Placer Dome in Papua New Guinea ndash leading public private

partnerships in HIVAIDS programming (and southsouth cooperation) Eldorado Gold in Turkey ndash supporting community priorities CSR Developments in Ghana ndash underwater logging and

social license

waynewaynedunncom

1 Eradicate extreme poverty and hunger 2 Achieve universal primary education 3 Promote gender equality and empower women 4 Reduce child mortality 5 Improve maternal health 6 Combat HIVAIDS malaria and other diseass 7 Ensure environmental sustainability 8 Develop a global partnership for development

waynewaynedunncom

Uranium Industry in Northern Saskatchewan Huge remote area (larger than all but five US States (Alaska Texas California Montana and New Mexico)

Waynersquos World

waynewaynedunncom

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

waynewaynedunncom

Challenging Times

Strong opposition to industry developing bull From Europe bull From within governing party

Industry had difficulties from all sides bull Local stakeholders didnrsquot have the capacity to engage

productively in the industry bull Early days of CSR (1980s) and companies largely didnrsquot

realize the importance of local engagement and value creation

waynewaynedunncom

Cameco in 1998

Camecorsquos approach has transformed the socio-economic well-being of Indigenous Peoples in Northern Saskatchewan

29 30

34

37 3739

42 42 43 44

20

25

30

35

40

45

50

1989 1990 1991 1992 1993 1994 1995 1996 1997 1998(Aug)

Perc

enta

ge o

f Tot

al W

orkf

orce

Cameco Aboriginal Employment(includes permanent contractor workforce)

waynewaynedunncom

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 $25 million to northern and aboriginal

initiatives for youth health and wellness education and literacy and culture and recreation Provided $100000 in scholarships to post-secondary

students

waynewaynedunncom

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 ndash NRT Trucking Skunk workssecret meetings Overcoming culture and practice barriers (drilling

underground mining etc) BHAGs Necessity

waynewaynedunncom Slide 28

Placer Dome South Africa

Case study of innovative developmental CSR Demonstrate application of key CSR principles

CSRSustainability Policy Strategic interventions vs shotgun approaches Impact metrics vs expense metrics Partnership strategies (financial operational technical) Leadership and leverage

Slide 29

Overview

bull Background ndash how did this get started

bull The Care Project ndashDeveloping and implementing the plan (challenges partners learnings) ndashBusiness value created

bull HIVAIDS ndash The Crisis and why does it matter ndash Programs and activities

Slide 30

Background 1990s saw massive changes in South

African mining industry ndash over 100000 jobs lost as the industry restructured 1999 ndash Placer Dome purchased a 50

interest in South Deep (WAL) a mine located just outside Johannesburg bull 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 31

Background (cont) In late 1999 after detailed study management

realized that economic reality dictated major restructuring at South Deep

13 of the South Deep workforce (over 2500) workers were retrenched bull 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 ndash that the commitment went

BEYOND THE PAYCHECK

waynewaynedunncom Slide 32

Families amp Communities must benefit from mining

Slide 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 HIVAIDS 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$36 million) budget was established

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

waynewaynedunncom Slide 35

The Mine

2560 Retrenchees bullMozambique bullLesotho bullSouth Africa bullSwaziland bullBotswana

How to successfully provide socio-economic support across remote rural regions of five countries

waynewaynedunncom Slide 36

The Initial 4-Step Plan 1 Consultations with retrenchees in their villages 2 Recruit (from amongst the retrenchees) a group

of 25-30 fieldworkers who would provide frontline support to the retrenchees and their families

3 Locate and register the retrenchees 4 Provide them with training and support to enable

them to become economically active

All of the above to be done in partnership with MDA TEBA and other partners

waynewaynedunncom Slide 37

Reality was different than we expected Retrenchees and their

Unions were still angry over the contested retrenchment Retrencheesrsquo homes were

difficult to locate and registration was often problematic

Consultations with retrenchees

Walking to a remote retrenchee homestead in Lesotho

Slide 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 HIVAIDS Fieldworker training programs Retrenchee education levels Centralized delivery didnrsquot work Project was under-financed We couldnrsquot do it in two years Etc

Slide 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

waynewaynedunncom Slide 40

The Process

Business Operation1 Ongoing availability of Technical Assistance and Business Counselling2 Ongoing faclitiation of skills training needs (ie business agriculture vocational etc)

Decision on Economic Option

Employment StreamEnterprise Stream

Evaluation of Micro Finance Application

Retrenchee is Re-Integrated and Economically Active

PersonalEconomic Plan

Prepared ampAssessed

PersonalEmployment Plan

Prepared

Business amp Financing Plan

Prepared

Employment Planning amp Preparation1 Identification of Employment Options2 Skills Training (VocationalAgricultural etc)3 Employment Counseling Placement (Job searchResume etc)

Business Planning amp Preparation1 Business Orientation a) Introduction to Business b) SkillsProduct Training2 Develop Draft Business Plan (to be reviewed with Counselor) (plan will contain market assessment financial operational and skills upgrading plan)3 Preparation of Micro-Finance Application

Orientation and Awareness Phase1 Registration amp Homestead Visits2 District Counselling Sessions3 Open DaysCareer Fairs4 Financial Lifes Skills Training5 Feedback and Choices Session

Ongoing Processes

Follow-up sessions activities to monitor effectiveness of interventions

Communication and consultation with stakeholders Continuous improvement process (review feedback enhance programs procedures processes)

13-step process Delivered 18 times Across Five countries

Slide 41

Some results 92 of the retrenchees were located

and registered 57 of those (1250) are economically

active 65 (1556) 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 42

Chicken raising business

Slide 43

Furniture making

waynewaynedunncom Slide 44

Unique training programs

waynewaynedunncom Slide 45

Rice farming in Mozambique

Slide 46

Spaza (convenience) shop

Slide 47

And the business value ishellip HIVAIDS 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 ndash 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

waynewaynedunncom Slide 48

ldquoThe project changed the social face of the South African Mining Industryrdquo

Kgosietsile Mogaki

South African Ministry of Minerals and Energy

waynewaynedunncom Slide 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 globally

Through 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 50

And then there is HIVAIDS

RSA ACCOUNTED FOR NEARLY 1 IN 8 OF THE NEW HIV INFECTIONS THAT OCCURRED WORLD WIDE IN 2000

HIV+ PREVALENCE RATE IN WOMEN ATTENDING ANTE-NATAL CLINICS INCREASED FROM 07 IN 1990 TO 248 IN 2001

AVERAGE OF 1700 NEW INFECTIONS PER DAY

LIFE EXPECTANCY WILL DECLINE FROM 65 TO 40 BY 2011

65

40

0

10

20

30

40

50

60

70

2001 2011

Life Expectancy

waynewaynedunncom Slide 51

HIVAIDS Facts (in 2000)

ESTIMATED THAT 12 OF TOTAL RSA POPULATION AND 25 OF MINEWORKERS ARE HIV+

ALREADY 400000 PEOPLE ARE AIDS SICK AND THIS WILL INCREASE TO 14 M BY 2010

YOUNG WOMEN PARTICULARLY VULNERABLE ndash 239 AGED BETWEEN 15 ndash 49 ALREADY INFECTED AND WILL RISE TO 297 BY 2007

AIDS ORPHANS AT PRESENT AMOUNT TO 660000+ AND WILL RISE TO 18M BY 2015

ACCUMULATIVE AIDS DEATHS WILL RISE TO 9M BY 2015

Slide 52

HIVAIDS Impact REDUCED ECONOMIC GROWTH RATE ndash 2010 GDP 20 below a non AIDS

scenario REDUCED POPULATION ndash RSA population 10M smaller than non AIDS scenario SKYROCKETING DEMANDS ON PUBLIC HEALTH SYSTEM - RADICALLY CHANGED PRIVATE SPENDING PATTERNS ndash to healthcare and

funeral costs IMPACT ON SOCIO-ECONOMIC STABILITY (orphans)

HIVAIDS 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 Africa today Nobody can afford to ignore it

Slide 53

HIVAIDS and Gold Mining

$10oz impact if nothing is done (5 of production costs) ~$3oz with maximum

intervention Impact on social and political

stability

Slide 54

HIVAIDS Programming Placer Dome program ndash

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 55

Minesite Program

TRAINING AND EDUCATION

STI amp TB TREATMENT

CONDOM DISTRIBUTION

PEER EDUCATION

VOLUNTARY COUNSELING AND TESTING (VCT)

WELLNESS PROGRAM

MEDICAL REPATRIATION

waynewaynedunncom Slide 56

Minesite Program

waynewaynedunncom Slide 57

Current Community Program

AWARENESS AND EDUCATION PROGRAMS

MOBILE CLINIC

CONDOM amp FEMIDOM DISTRIBUTION

PERIODIC PRESUMPTIVE TREATMENT (PPT)

TREATMENT FOR SEXUALLY TRANSMITTED INFECTIONS ( STI)

waynewaynedunncom Slide 58

COMMUNITY PROGRAM

Community Mobile Clinic

waynewaynedunncom Slide 59

And when HIV prevention doesnrsquot 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 60

Industry Home Based Care

TEBA INFRA-STRUCTURE

TRAINING OF CARE GIVERS

SUPPORT STRUCTURE ndash QUALIFIED STAFF

MONTHLY MEDICATION

WORK WITH OTHER STAKEHOLDERS (EG TRADITIONAL HEALERS)

WORLD BANK DEVELOPMENT INNOVATION AWARD

waynewaynedunncom Slide 61

Home Based Care

Slide 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

waynewaynedunncom Slide 63

Overview of Placer Dome AIDS Programming SOUTH DEEP Sustainable Development Department

bullVoluntary Counseling and testing HIV Negative bullContinue working

On Mine Program Community Program

Modified work program Farm bullAgricultural work Environmental

Medical repatriation

Home Based Care

Benefits Care Positive

HBC EC OPP

Back to work or Re skilled

Wellness Program

waynewaynedunncom Slide 64

But what happens to children and families when the breadwinner canrsquot

work

Slide 65

HIVAIDS and Rural Areas HIVAIDS 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

Slide 66

HIVAIDS 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

waynewaynedunncom

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 CSREthical

Project Award (2004) Numerous other awards Stanford Case Study

waynewaynedunncom Slide 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 69

Planned Program

Care Positive Integrate the Home Based Care

project with the Care process and launch as a fee for service based program to address the social and 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

Care Process

+

Home Based Care

=

Care Positive

waynewaynedunncom Slide 70

Care Positive Summary

waynewaynedunncom

Andhellip 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 $100000 and considerable reputational capital into them Industry went forward with modified HIVAIDS

programming but huge developmental impacts were lost

waynewaynedunncom Slide 72

MDG Impacts of Placer Dome in South Africa

1 Poverty and hunger 2 Some impact on primary education (School

feeding program) 3 Promote gender equality and empower women 4 Reduce child mortality 5 Improve maternal health 6 Combat HIVAIDS malaria and other diseass 7 Ensure environmental sustainability 8 Develop a global partnership for development

(Placer Dome CIDA Civil Society NGOs)

waynewaynedunncom

One thing leads to another

World Bank observed how Placer Domersquos leadership on HIVAIDS 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

waynewaynedunncom

PNG HIVAIDS Scoping mission to

determine what might be done and how Enthusiastic interest from

industry government multi-laterals (WHO UNAIDS World Banketc) ODA (AusAID) CIDA partnered with Place Dome to develop an

HIVAIDS strategy for PNG that integrated industry public sector civil society and international community

waynewaynedunncom

PNG Outcomes (or outputs ndash Irsquom never sure) Partnership with Mining

Industry Civil Society WHO UNAIDS UNDP World Bank PNG AIDS AusAID Oil Palm Industry etc National workshop on

HIVAIDS and publicprivate partnerships SouthSouth Collaboration

Industry government civil society international community study trip to South Africa

waynewaynedunncom

waynewaynedunncom

PNG AIDS mission to South Africa

waynewaynedunncom Slide 78

MDG Impacts of PNG HIVAIDS work

1 Poverty and hunger (nutritional supplements) 2 Some impact on primary education (peripheral) 3 Promote gender equality and empower women 4 Reduce child mortality 5 Improve maternal health 6 Combat HIVAIDS malaria and other diseass 7 Ensure environmental sustainability 8 Develop a global partnership for development

(Placer Dome CIDA Civil Society NGOs)

waynewaynedunncom

Eldorado Gold in Turkey

Major gold find in WestCentral Turkey No successful

mining project launched in decades Eurogold project

built launched and halted by community action in late 1990s ndash still mothballed

UsakKislidag Minesite

Eurogold site

waynewaynedunncom

Eldorado Gold in Turkey

Isolated rural area Nearly half of nearby

communities opposed to mine development Agriculture primary

economic activity in rural communities ndash smallmicro family farms

waynewaynedunncom

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

waynewaynedunncom

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 $075 to $1325 Opened second mine in Turkey

bull Able to deal with controversial watershed issues after relationship success in Usak

waynewaynedunncom Slide 83

MDG Impacts of Eldorado Gold

1 Poverty and hunger (minimal) 2 Some impact on primary education (peripheral) 3 Promote gender equality and empower women 4 Reduce child mortality 5 Improve maternal health 6 Combat HIVAIDS malaria and other diseass 7 Ensure environmental sustainability 8 Develop a global partnership for development

(Placer Dome CIDA Civil Society NGOs)

waynewaynedunncom

Underwater Logging in Ghana

waynewaynedunncom

Private Sector and International Development

Private sector especially resource extraction has a very mixed record bull Some horrendous disasters (Nigeria Warao Peoples in

Venezuela etc) bull Some great successes (Placer Dome Care project

mining and HIVAIDS 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

waynewaynedunncom

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

interestsobjectives overlap

waynewaynedunncom

SDCSR Implementation Challenges

more than a warm fuzzy issue Spending isnrsquot the answer

Plan

Framework

System

Results

Solving social problems Objectives

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Beyond Beads and Trinkets ndash BC Mining Review

A lsquohow torsquo article on mining and CSR

Wayne Dunn

BP Venezuela Indigenous Relations ndash Meeting the Challenge Responsibly and Sustainably

Situational assessment and strategic plan for BP Venezuela Authorized for release by BP

Wayne Dunn

Cameco Community Relations Report

Situational assessment and management strategy Authorized for release by Cameco

Wayne Dunn

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author Beyond Beads lsquon Trinkets A systematic approach to managing community relations

A conference paper describing a systematic approach to community relations management helping companies to methodically develop mutually beneficial relationships with local communities and interests (this is one of the earliest papers on this subject ndash written in 1998)

Wayne Dunn

The costs of conflict with local communities in the extractive industry

Analysis of the cost of community conflicts in the Extractive Sector

Rachel Davis and Daniel M Franks

Creating Shared Value

Harvard Business Review interview with Michael Porter

Video

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Social License Its all about value

Discussion on Social License and shareholder Value

Wayne Dunn

Its about Development Commentary on the CIDAMining Company issue

Wayne Dunn

Integrating corporate strategy and social responsibilitymdashmarket returns from stakeholder engagement

Discussion and analysis on market returns on stakeholder engagement

Witold J Henisz Sinziana Dorobantu and Lite J Narty

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

McGill Reporter ndash Four Burning Questions Wayne Dunn on CSR

Discussion on CSR Wayne Dunn

Miningrsquos contribution to sustainable development ndashan overview

Discussion paper prepared by the International Council on Mining and Metals

Millennium Development Goals

United Nations

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Mining and Agriculture Development

A short lsquohow torsquo guide for mining projects to engage with the local agriculture sector

Al Hingston

PDSA Social Value Brochure

Brochure on social value created by Placer Dome South Africa

Placer Dome

The Value of Social License

Opinion piece published in Northern Miner

Wayne Dunn

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Golden Opportunity When a Canadian multinational laid off hundreds of gold miners in South Africa it went many extra miles to help them get back on their feet

Stanford Business School Case Study on Placer Dome in South Africa

Wayne Dunn

The Changing Resource Development Paradigm Maximizing Sustainable Local Benefits from Resource Development

Strategic thought piece prepared for the government of British Columbia Canada

Wayne Dunn

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

The Disappearing Barriers Between Business And Non-profits Are Driving Innovation

Discussion paper

Katherine Pikus

When Condoms are not enough

World Bank staff magazine article on Placer Dome and South African mining industryrsquos work with HIVAIDS

Craig Andrews

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

MINING AND LOCAL ECONOMIC DEVELOPMENT IN PAPUA NEW GUINEA Preliminary Research on a Potential Pilot Project in Porgera and Lihir

Strategic research and action plan on mining and local economic development in Papua New Guinea prepared for the World Bank

Wayne Dunn

waynewaynedunncom

What we covered

We 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) Publicprivatecivil society collaboration ndash case study

and discussion (CIDA and Mining Companies) Open discussion on topics of interest (time permitting)

waynewaynedunncom

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 howwhy 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

waynewaynedunncom

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 howwhy 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

waynewaynedunncom

Alignment around Shared Value For shareholders For Communities For People For Governments

Private Sector Contributions To International Development

Remember

  • Private Sector Contributions To International Development
  • Session Objectives
  • Map of the morning How we will try to meet the objectives
  • Slide Number 4
  • What is ODA and FDI
  • What is ODA and FDI
  • Why discuss Private Sector Contribution anyway
  • FDIBusiness Outcomes
  • Intention and Strategy Make a Difference
  • Why does the private sector care
  • Community Consultation and Value
  • Itrsquos Real Money
  • CSR is a Value Strategy
  • Social License Failures cost
  • Why is CSR happening
  • The Mining World Has Changed
  • CSR is a complicated space
  • CSR amp Social License
  • Role of business is changing (click image to play video)
  • Case Studies (of successes)
  • Slide Number 21
  • Uranium Industry in Northern Saskatchewan
  • Challenging area
  • Challenging Times
  • Cameco in 1998
  • Cameco in Northern Saskatchewan (2010)
  • So how did Cameco and the industry do it
  • Placer Dome South Africa
  • Slide Number 29
  • Background
  • Background (cont)
  • Families amp Communities must benefit from mining
  • The Care Project
  • Implications
  • Slide Number 35
  • The Initial 4-Step Plan
  • Reality was different than we expected
  • Reality was different than expected
  • Meeting the challenges
  • TheProcess
  • Some results
  • Chicken raising business
  • Furniture making
  • Unique training programs
  • Rice farming in Mozambique
  • Spaza (convenience) shop
  • And the business value ishellip
  • Slide Number 48
  • What was in it for Placer Dome
  • And then there is HIVAIDS
  • HIVAIDS Facts (in 2000)
  • HIVAIDS Impact
  • HIVAIDS and Gold Mining
  • HIVAIDS Programming
  • Minesite Program
  • Minesite Program
  • Current Community Program
  • Community Mobile Clinic
  • And when HIV prevention doesnrsquot work
  • Industry Home Based Care
  • Home Based Care
  • INDUSTRY HOME BASED CARE RESULTS(Year One)
  • Overview of Placer Dome AIDS Programming
  • Slide Number 64
  • HIVAIDS and Rural Areas
  • HIVAIDS and Rural Areas
  • Reputational Results for Placer Dome
  • Where to next
  • Planned Program
  • Care Positive Summary
  • Andhellip
  • MDG Impacts of Placer Dome in South Africa
  • One thing leads to another
  • PNG HIVAIDS
  • PNG Outcomes (or outputs ndash Irsquom never sure)
  • Slide Number 76
  • PNG AIDS mission to South Africa
  • MDG Impacts of PNG HIVAIDS work
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • MDG Impacts of Eldorado Gold
  • Underwater Logging in Ghana
  • Private Sector and International Development
  • Group Exercise
  • Slide Number 87
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • What we covered
  • Session Objectives
  • Session Objectives
  • Remember
Page 10: Private Sector Contributions To International Development – McGill Executive Education Program Lecture

waynewaynedunncom

Why does the private sector care

Market is placing increasing value on intangibles Reputational

Capital is closely linked to shareholder value

17

32

68 80 80

83

68

32 20 20

1975 1985 1995 2005 2010

Components of SampP Market Value Intangible Assets Tangible Assets

Adapted from Milla Craigrsquos presentation to ISID ndash March 30 2012

waynewaynedunncom

Community Consultation and Value Study of 26 Gold Mines

owned by 19 publicly traded companies

Period from 1993 to 2008

Examined and coded over 50000 stakeholder events to develop an index of cooperationconflict

Effective consultation and engagement reduced discount rate on gold in ground from 72 to between 12 ndash 32

waynewaynedunncom

Itrsquos Real Money

$280000000

$670000000 $880000000

$720000000

$330000000

$120000000

$0

$100000000

$200000000

$300000000

$400000000

$500000000

$600000000

$700000000

$800000000

$900000000

$1000000000

72 33 12

Lost Value

Value in market

Market value of $1 billion of gold in the ground based on consultation and conflict

CSR is a Value Strategy

Share price of a CSR failure that rendered a multi-billion dollar reserve un-developable Good CSR creates value for company community and other stakeholders

~$1300 $029

Social License Failures cost

Bougaineville (PNG)- corporate practices were directly implicated in provoking civil war allegedly cost Rio Tinto $3 billion (Stanford Univ study) Tambo Grande (Peru) OvacikEurogold (Turkey)

waynewaynedunncom

Globalized world is demanding more of businesshellip Global media ndash The CNNization of the world ndash remote local

issues direct to television screens Social Media ndash Youtube Facebook Twitter etc Everything is

Everywhere and Organizable Proliferation of NGOs and CBOs ndash direct well organized and

financed support to communities

Why is CSR happening

Internet and other communications innovations ndash direct communications from remote projects to worldwide audience

Global Democratization ndash increased attention to local issues

waynewaynedunncom

bull ldquoWe are determined to provide multi-skilling to workers and assist them to cope with retrenchments This is a must and not a choice for industryrdquo

bull ldquoIt 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 pastrdquo Hon Phumizile Mlambo-Ngcuka

South Africa Minister of Minerals and Energy

The Mining World Has Changed

waynewaynedunncom

CSR is a complicated space

135 Codes 929 Page Report And that was in Jan 2007

waynewaynedunncom

CSR amp 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

waynewaynedunncom

Role of business is changing (click image to play video)

Creating Shared Value - Harvard Business Review

waynewaynedunncom

Case Studies (of successes)

Cameco in Northern Saskatchewan ndash indigenous employment and development (Industry Social License) Placer Dome South Africa ndash community development and

womenrsquos empowerment HIVAIDS programming leadership Placer Dome in Papua New Guinea ndash leading public private

partnerships in HIVAIDS programming (and southsouth cooperation) Eldorado Gold in Turkey ndash supporting community priorities CSR Developments in Ghana ndash underwater logging and

social license

waynewaynedunncom

1 Eradicate extreme poverty and hunger 2 Achieve universal primary education 3 Promote gender equality and empower women 4 Reduce child mortality 5 Improve maternal health 6 Combat HIVAIDS malaria and other diseass 7 Ensure environmental sustainability 8 Develop a global partnership for development

waynewaynedunncom

Uranium Industry in Northern Saskatchewan Huge remote area (larger than all but five US States (Alaska Texas California Montana and New Mexico)

Waynersquos World

waynewaynedunncom

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

waynewaynedunncom

Challenging Times

Strong opposition to industry developing bull From Europe bull From within governing party

Industry had difficulties from all sides bull Local stakeholders didnrsquot have the capacity to engage

productively in the industry bull Early days of CSR (1980s) and companies largely didnrsquot

realize the importance of local engagement and value creation

waynewaynedunncom

Cameco in 1998

Camecorsquos approach has transformed the socio-economic well-being of Indigenous Peoples in Northern Saskatchewan

29 30

34

37 3739

42 42 43 44

20

25

30

35

40

45

50

1989 1990 1991 1992 1993 1994 1995 1996 1997 1998(Aug)

Perc

enta

ge o

f Tot

al W

orkf

orce

Cameco Aboriginal Employment(includes permanent contractor workforce)

waynewaynedunncom

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 $25 million to northern and aboriginal

initiatives for youth health and wellness education and literacy and culture and recreation Provided $100000 in scholarships to post-secondary

students

waynewaynedunncom

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 ndash NRT Trucking Skunk workssecret meetings Overcoming culture and practice barriers (drilling

underground mining etc) BHAGs Necessity

waynewaynedunncom Slide 28

Placer Dome South Africa

Case study of innovative developmental CSR Demonstrate application of key CSR principles

CSRSustainability Policy Strategic interventions vs shotgun approaches Impact metrics vs expense metrics Partnership strategies (financial operational technical) Leadership and leverage

Slide 29

Overview

bull Background ndash how did this get started

bull The Care Project ndashDeveloping and implementing the plan (challenges partners learnings) ndashBusiness value created

bull HIVAIDS ndash The Crisis and why does it matter ndash Programs and activities

Slide 30

Background 1990s saw massive changes in South

African mining industry ndash over 100000 jobs lost as the industry restructured 1999 ndash Placer Dome purchased a 50

interest in South Deep (WAL) a mine located just outside Johannesburg bull 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 31

Background (cont) In late 1999 after detailed study management

realized that economic reality dictated major restructuring at South Deep

13 of the South Deep workforce (over 2500) workers were retrenched bull 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 ndash that the commitment went

BEYOND THE PAYCHECK

waynewaynedunncom Slide 32

Families amp Communities must benefit from mining

Slide 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 HIVAIDS 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$36 million) budget was established

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

waynewaynedunncom Slide 35

The Mine

2560 Retrenchees bullMozambique bullLesotho bullSouth Africa bullSwaziland bullBotswana

How to successfully provide socio-economic support across remote rural regions of five countries

waynewaynedunncom Slide 36

The Initial 4-Step Plan 1 Consultations with retrenchees in their villages 2 Recruit (from amongst the retrenchees) a group

of 25-30 fieldworkers who would provide frontline support to the retrenchees and their families

3 Locate and register the retrenchees 4 Provide them with training and support to enable

them to become economically active

All of the above to be done in partnership with MDA TEBA and other partners

waynewaynedunncom Slide 37

Reality was different than we expected Retrenchees and their

Unions were still angry over the contested retrenchment Retrencheesrsquo homes were

difficult to locate and registration was often problematic

Consultations with retrenchees

Walking to a remote retrenchee homestead in Lesotho

Slide 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 HIVAIDS Fieldworker training programs Retrenchee education levels Centralized delivery didnrsquot work Project was under-financed We couldnrsquot do it in two years Etc

Slide 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

waynewaynedunncom Slide 40

The Process

Business Operation1 Ongoing availability of Technical Assistance and Business Counselling2 Ongoing faclitiation of skills training needs (ie business agriculture vocational etc)

Decision on Economic Option

Employment StreamEnterprise Stream

Evaluation of Micro Finance Application

Retrenchee is Re-Integrated and Economically Active

PersonalEconomic Plan

Prepared ampAssessed

PersonalEmployment Plan

Prepared

Business amp Financing Plan

Prepared

Employment Planning amp Preparation1 Identification of Employment Options2 Skills Training (VocationalAgricultural etc)3 Employment Counseling Placement (Job searchResume etc)

Business Planning amp Preparation1 Business Orientation a) Introduction to Business b) SkillsProduct Training2 Develop Draft Business Plan (to be reviewed with Counselor) (plan will contain market assessment financial operational and skills upgrading plan)3 Preparation of Micro-Finance Application

Orientation and Awareness Phase1 Registration amp Homestead Visits2 District Counselling Sessions3 Open DaysCareer Fairs4 Financial Lifes Skills Training5 Feedback and Choices Session

Ongoing Processes

Follow-up sessions activities to monitor effectiveness of interventions

Communication and consultation with stakeholders Continuous improvement process (review feedback enhance programs procedures processes)

13-step process Delivered 18 times Across Five countries

Slide 41

Some results 92 of the retrenchees were located

and registered 57 of those (1250) are economically

active 65 (1556) 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 42

Chicken raising business

Slide 43

Furniture making

waynewaynedunncom Slide 44

Unique training programs

waynewaynedunncom Slide 45

Rice farming in Mozambique

Slide 46

Spaza (convenience) shop

Slide 47

And the business value ishellip HIVAIDS 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 ndash 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

waynewaynedunncom Slide 48

ldquoThe project changed the social face of the South African Mining Industryrdquo

Kgosietsile Mogaki

South African Ministry of Minerals and Energy

waynewaynedunncom Slide 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 globally

Through 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 50

And then there is HIVAIDS

RSA ACCOUNTED FOR NEARLY 1 IN 8 OF THE NEW HIV INFECTIONS THAT OCCURRED WORLD WIDE IN 2000

HIV+ PREVALENCE RATE IN WOMEN ATTENDING ANTE-NATAL CLINICS INCREASED FROM 07 IN 1990 TO 248 IN 2001

AVERAGE OF 1700 NEW INFECTIONS PER DAY

LIFE EXPECTANCY WILL DECLINE FROM 65 TO 40 BY 2011

65

40

0

10

20

30

40

50

60

70

2001 2011

Life Expectancy

waynewaynedunncom Slide 51

HIVAIDS Facts (in 2000)

ESTIMATED THAT 12 OF TOTAL RSA POPULATION AND 25 OF MINEWORKERS ARE HIV+

ALREADY 400000 PEOPLE ARE AIDS SICK AND THIS WILL INCREASE TO 14 M BY 2010

YOUNG WOMEN PARTICULARLY VULNERABLE ndash 239 AGED BETWEEN 15 ndash 49 ALREADY INFECTED AND WILL RISE TO 297 BY 2007

AIDS ORPHANS AT PRESENT AMOUNT TO 660000+ AND WILL RISE TO 18M BY 2015

ACCUMULATIVE AIDS DEATHS WILL RISE TO 9M BY 2015

Slide 52

HIVAIDS Impact REDUCED ECONOMIC GROWTH RATE ndash 2010 GDP 20 below a non AIDS

scenario REDUCED POPULATION ndash RSA population 10M smaller than non AIDS scenario SKYROCKETING DEMANDS ON PUBLIC HEALTH SYSTEM - RADICALLY CHANGED PRIVATE SPENDING PATTERNS ndash to healthcare and

funeral costs IMPACT ON SOCIO-ECONOMIC STABILITY (orphans)

HIVAIDS 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 Africa today Nobody can afford to ignore it

Slide 53

HIVAIDS and Gold Mining

$10oz impact if nothing is done (5 of production costs) ~$3oz with maximum

intervention Impact on social and political

stability

Slide 54

HIVAIDS Programming Placer Dome program ndash

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 55

Minesite Program

TRAINING AND EDUCATION

STI amp TB TREATMENT

CONDOM DISTRIBUTION

PEER EDUCATION

VOLUNTARY COUNSELING AND TESTING (VCT)

WELLNESS PROGRAM

MEDICAL REPATRIATION

waynewaynedunncom Slide 56

Minesite Program

waynewaynedunncom Slide 57

Current Community Program

AWARENESS AND EDUCATION PROGRAMS

MOBILE CLINIC

CONDOM amp FEMIDOM DISTRIBUTION

PERIODIC PRESUMPTIVE TREATMENT (PPT)

TREATMENT FOR SEXUALLY TRANSMITTED INFECTIONS ( STI)

waynewaynedunncom Slide 58

COMMUNITY PROGRAM

Community Mobile Clinic

waynewaynedunncom Slide 59

And when HIV prevention doesnrsquot 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 60

Industry Home Based Care

TEBA INFRA-STRUCTURE

TRAINING OF CARE GIVERS

SUPPORT STRUCTURE ndash QUALIFIED STAFF

MONTHLY MEDICATION

WORK WITH OTHER STAKEHOLDERS (EG TRADITIONAL HEALERS)

WORLD BANK DEVELOPMENT INNOVATION AWARD

waynewaynedunncom Slide 61

Home Based Care

Slide 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

waynewaynedunncom Slide 63

Overview of Placer Dome AIDS Programming SOUTH DEEP Sustainable Development Department

bullVoluntary Counseling and testing HIV Negative bullContinue working

On Mine Program Community Program

Modified work program Farm bullAgricultural work Environmental

Medical repatriation

Home Based Care

Benefits Care Positive

HBC EC OPP

Back to work or Re skilled

Wellness Program

waynewaynedunncom Slide 64

But what happens to children and families when the breadwinner canrsquot

work

Slide 65

HIVAIDS and Rural Areas HIVAIDS 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

Slide 66

HIVAIDS 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

waynewaynedunncom

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 CSREthical

Project Award (2004) Numerous other awards Stanford Case Study

waynewaynedunncom Slide 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 69

Planned Program

Care Positive Integrate the Home Based Care

project with the Care process and launch as a fee for service based program to address the social and 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

Care Process

+

Home Based Care

=

Care Positive

waynewaynedunncom Slide 70

Care Positive Summary

waynewaynedunncom

Andhellip 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 $100000 and considerable reputational capital into them Industry went forward with modified HIVAIDS

programming but huge developmental impacts were lost

waynewaynedunncom Slide 72

MDG Impacts of Placer Dome in South Africa

1 Poverty and hunger 2 Some impact on primary education (School

feeding program) 3 Promote gender equality and empower women 4 Reduce child mortality 5 Improve maternal health 6 Combat HIVAIDS malaria and other diseass 7 Ensure environmental sustainability 8 Develop a global partnership for development

(Placer Dome CIDA Civil Society NGOs)

waynewaynedunncom

One thing leads to another

World Bank observed how Placer Domersquos leadership on HIVAIDS 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

waynewaynedunncom

PNG HIVAIDS Scoping mission to

determine what might be done and how Enthusiastic interest from

industry government multi-laterals (WHO UNAIDS World Banketc) ODA (AusAID) CIDA partnered with Place Dome to develop an

HIVAIDS strategy for PNG that integrated industry public sector civil society and international community

waynewaynedunncom

PNG Outcomes (or outputs ndash Irsquom never sure) Partnership with Mining

Industry Civil Society WHO UNAIDS UNDP World Bank PNG AIDS AusAID Oil Palm Industry etc National workshop on

HIVAIDS and publicprivate partnerships SouthSouth Collaboration

Industry government civil society international community study trip to South Africa

waynewaynedunncom

waynewaynedunncom

PNG AIDS mission to South Africa

waynewaynedunncom Slide 78

MDG Impacts of PNG HIVAIDS work

1 Poverty and hunger (nutritional supplements) 2 Some impact on primary education (peripheral) 3 Promote gender equality and empower women 4 Reduce child mortality 5 Improve maternal health 6 Combat HIVAIDS malaria and other diseass 7 Ensure environmental sustainability 8 Develop a global partnership for development

(Placer Dome CIDA Civil Society NGOs)

waynewaynedunncom

Eldorado Gold in Turkey

Major gold find in WestCentral Turkey No successful

mining project launched in decades Eurogold project

built launched and halted by community action in late 1990s ndash still mothballed

UsakKislidag Minesite

Eurogold site

waynewaynedunncom

Eldorado Gold in Turkey

Isolated rural area Nearly half of nearby

communities opposed to mine development Agriculture primary

economic activity in rural communities ndash smallmicro family farms

waynewaynedunncom

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

waynewaynedunncom

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 $075 to $1325 Opened second mine in Turkey

bull Able to deal with controversial watershed issues after relationship success in Usak

waynewaynedunncom Slide 83

MDG Impacts of Eldorado Gold

1 Poverty and hunger (minimal) 2 Some impact on primary education (peripheral) 3 Promote gender equality and empower women 4 Reduce child mortality 5 Improve maternal health 6 Combat HIVAIDS malaria and other diseass 7 Ensure environmental sustainability 8 Develop a global partnership for development

(Placer Dome CIDA Civil Society NGOs)

waynewaynedunncom

Underwater Logging in Ghana

waynewaynedunncom

Private Sector and International Development

Private sector especially resource extraction has a very mixed record bull Some horrendous disasters (Nigeria Warao Peoples in

Venezuela etc) bull Some great successes (Placer Dome Care project

mining and HIVAIDS 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

waynewaynedunncom

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

interestsobjectives overlap

waynewaynedunncom

SDCSR Implementation Challenges

more than a warm fuzzy issue Spending isnrsquot the answer

Plan

Framework

System

Results

Solving social problems Objectives

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Beyond Beads and Trinkets ndash BC Mining Review

A lsquohow torsquo article on mining and CSR

Wayne Dunn

BP Venezuela Indigenous Relations ndash Meeting the Challenge Responsibly and Sustainably

Situational assessment and strategic plan for BP Venezuela Authorized for release by BP

Wayne Dunn

Cameco Community Relations Report

Situational assessment and management strategy Authorized for release by Cameco

Wayne Dunn

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author Beyond Beads lsquon Trinkets A systematic approach to managing community relations

A conference paper describing a systematic approach to community relations management helping companies to methodically develop mutually beneficial relationships with local communities and interests (this is one of the earliest papers on this subject ndash written in 1998)

Wayne Dunn

The costs of conflict with local communities in the extractive industry

Analysis of the cost of community conflicts in the Extractive Sector

Rachel Davis and Daniel M Franks

Creating Shared Value

Harvard Business Review interview with Michael Porter

Video

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Social License Its all about value

Discussion on Social License and shareholder Value

Wayne Dunn

Its about Development Commentary on the CIDAMining Company issue

Wayne Dunn

Integrating corporate strategy and social responsibilitymdashmarket returns from stakeholder engagement

Discussion and analysis on market returns on stakeholder engagement

Witold J Henisz Sinziana Dorobantu and Lite J Narty

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

McGill Reporter ndash Four Burning Questions Wayne Dunn on CSR

Discussion on CSR Wayne Dunn

Miningrsquos contribution to sustainable development ndashan overview

Discussion paper prepared by the International Council on Mining and Metals

Millennium Development Goals

United Nations

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Mining and Agriculture Development

A short lsquohow torsquo guide for mining projects to engage with the local agriculture sector

Al Hingston

PDSA Social Value Brochure

Brochure on social value created by Placer Dome South Africa

Placer Dome

The Value of Social License

Opinion piece published in Northern Miner

Wayne Dunn

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Golden Opportunity When a Canadian multinational laid off hundreds of gold miners in South Africa it went many extra miles to help them get back on their feet

Stanford Business School Case Study on Placer Dome in South Africa

Wayne Dunn

The Changing Resource Development Paradigm Maximizing Sustainable Local Benefits from Resource Development

Strategic thought piece prepared for the government of British Columbia Canada

Wayne Dunn

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

The Disappearing Barriers Between Business And Non-profits Are Driving Innovation

Discussion paper

Katherine Pikus

When Condoms are not enough

World Bank staff magazine article on Placer Dome and South African mining industryrsquos work with HIVAIDS

Craig Andrews

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

MINING AND LOCAL ECONOMIC DEVELOPMENT IN PAPUA NEW GUINEA Preliminary Research on a Potential Pilot Project in Porgera and Lihir

Strategic research and action plan on mining and local economic development in Papua New Guinea prepared for the World Bank

Wayne Dunn

waynewaynedunncom

What we covered

We 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) Publicprivatecivil society collaboration ndash case study

and discussion (CIDA and Mining Companies) Open discussion on topics of interest (time permitting)

waynewaynedunncom

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 howwhy 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

waynewaynedunncom

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 howwhy 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

waynewaynedunncom

Alignment around Shared Value For shareholders For Communities For People For Governments

Private Sector Contributions To International Development

Remember

  • Private Sector Contributions To International Development
  • Session Objectives
  • Map of the morning How we will try to meet the objectives
  • Slide Number 4
  • What is ODA and FDI
  • What is ODA and FDI
  • Why discuss Private Sector Contribution anyway
  • FDIBusiness Outcomes
  • Intention and Strategy Make a Difference
  • Why does the private sector care
  • Community Consultation and Value
  • Itrsquos Real Money
  • CSR is a Value Strategy
  • Social License Failures cost
  • Why is CSR happening
  • The Mining World Has Changed
  • CSR is a complicated space
  • CSR amp Social License
  • Role of business is changing (click image to play video)
  • Case Studies (of successes)
  • Slide Number 21
  • Uranium Industry in Northern Saskatchewan
  • Challenging area
  • Challenging Times
  • Cameco in 1998
  • Cameco in Northern Saskatchewan (2010)
  • So how did Cameco and the industry do it
  • Placer Dome South Africa
  • Slide Number 29
  • Background
  • Background (cont)
  • Families amp Communities must benefit from mining
  • The Care Project
  • Implications
  • Slide Number 35
  • The Initial 4-Step Plan
  • Reality was different than we expected
  • Reality was different than expected
  • Meeting the challenges
  • TheProcess
  • Some results
  • Chicken raising business
  • Furniture making
  • Unique training programs
  • Rice farming in Mozambique
  • Spaza (convenience) shop
  • And the business value ishellip
  • Slide Number 48
  • What was in it for Placer Dome
  • And then there is HIVAIDS
  • HIVAIDS Facts (in 2000)
  • HIVAIDS Impact
  • HIVAIDS and Gold Mining
  • HIVAIDS Programming
  • Minesite Program
  • Minesite Program
  • Current Community Program
  • Community Mobile Clinic
  • And when HIV prevention doesnrsquot work
  • Industry Home Based Care
  • Home Based Care
  • INDUSTRY HOME BASED CARE RESULTS(Year One)
  • Overview of Placer Dome AIDS Programming
  • Slide Number 64
  • HIVAIDS and Rural Areas
  • HIVAIDS and Rural Areas
  • Reputational Results for Placer Dome
  • Where to next
  • Planned Program
  • Care Positive Summary
  • Andhellip
  • MDG Impacts of Placer Dome in South Africa
  • One thing leads to another
  • PNG HIVAIDS
  • PNG Outcomes (or outputs ndash Irsquom never sure)
  • Slide Number 76
  • PNG AIDS mission to South Africa
  • MDG Impacts of PNG HIVAIDS work
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • MDG Impacts of Eldorado Gold
  • Underwater Logging in Ghana
  • Private Sector and International Development
  • Group Exercise
  • Slide Number 87
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • What we covered
  • Session Objectives
  • Session Objectives
  • Remember
Page 11: Private Sector Contributions To International Development – McGill Executive Education Program Lecture

waynewaynedunncom

Community Consultation and Value Study of 26 Gold Mines

owned by 19 publicly traded companies

Period from 1993 to 2008

Examined and coded over 50000 stakeholder events to develop an index of cooperationconflict

Effective consultation and engagement reduced discount rate on gold in ground from 72 to between 12 ndash 32

waynewaynedunncom

Itrsquos Real Money

$280000000

$670000000 $880000000

$720000000

$330000000

$120000000

$0

$100000000

$200000000

$300000000

$400000000

$500000000

$600000000

$700000000

$800000000

$900000000

$1000000000

72 33 12

Lost Value

Value in market

Market value of $1 billion of gold in the ground based on consultation and conflict

CSR is a Value Strategy

Share price of a CSR failure that rendered a multi-billion dollar reserve un-developable Good CSR creates value for company community and other stakeholders

~$1300 $029

Social License Failures cost

Bougaineville (PNG)- corporate practices were directly implicated in provoking civil war allegedly cost Rio Tinto $3 billion (Stanford Univ study) Tambo Grande (Peru) OvacikEurogold (Turkey)

waynewaynedunncom

Globalized world is demanding more of businesshellip Global media ndash The CNNization of the world ndash remote local

issues direct to television screens Social Media ndash Youtube Facebook Twitter etc Everything is

Everywhere and Organizable Proliferation of NGOs and CBOs ndash direct well organized and

financed support to communities

Why is CSR happening

Internet and other communications innovations ndash direct communications from remote projects to worldwide audience

Global Democratization ndash increased attention to local issues

waynewaynedunncom

bull ldquoWe are determined to provide multi-skilling to workers and assist them to cope with retrenchments This is a must and not a choice for industryrdquo

bull ldquoIt 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 pastrdquo Hon Phumizile Mlambo-Ngcuka

South Africa Minister of Minerals and Energy

The Mining World Has Changed

waynewaynedunncom

CSR is a complicated space

135 Codes 929 Page Report And that was in Jan 2007

waynewaynedunncom

CSR amp 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

waynewaynedunncom

Role of business is changing (click image to play video)

Creating Shared Value - Harvard Business Review

waynewaynedunncom

Case Studies (of successes)

Cameco in Northern Saskatchewan ndash indigenous employment and development (Industry Social License) Placer Dome South Africa ndash community development and

womenrsquos empowerment HIVAIDS programming leadership Placer Dome in Papua New Guinea ndash leading public private

partnerships in HIVAIDS programming (and southsouth cooperation) Eldorado Gold in Turkey ndash supporting community priorities CSR Developments in Ghana ndash underwater logging and

social license

waynewaynedunncom

1 Eradicate extreme poverty and hunger 2 Achieve universal primary education 3 Promote gender equality and empower women 4 Reduce child mortality 5 Improve maternal health 6 Combat HIVAIDS malaria and other diseass 7 Ensure environmental sustainability 8 Develop a global partnership for development

waynewaynedunncom

Uranium Industry in Northern Saskatchewan Huge remote area (larger than all but five US States (Alaska Texas California Montana and New Mexico)

Waynersquos World

waynewaynedunncom

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

waynewaynedunncom

Challenging Times

Strong opposition to industry developing bull From Europe bull From within governing party

Industry had difficulties from all sides bull Local stakeholders didnrsquot have the capacity to engage

productively in the industry bull Early days of CSR (1980s) and companies largely didnrsquot

realize the importance of local engagement and value creation

waynewaynedunncom

Cameco in 1998

Camecorsquos approach has transformed the socio-economic well-being of Indigenous Peoples in Northern Saskatchewan

29 30

34

37 3739

42 42 43 44

20

25

30

35

40

45

50

1989 1990 1991 1992 1993 1994 1995 1996 1997 1998(Aug)

Perc

enta

ge o

f Tot

al W

orkf

orce

Cameco Aboriginal Employment(includes permanent contractor workforce)

waynewaynedunncom

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 $25 million to northern and aboriginal

initiatives for youth health and wellness education and literacy and culture and recreation Provided $100000 in scholarships to post-secondary

students

waynewaynedunncom

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 ndash NRT Trucking Skunk workssecret meetings Overcoming culture and practice barriers (drilling

underground mining etc) BHAGs Necessity

waynewaynedunncom Slide 28

Placer Dome South Africa

Case study of innovative developmental CSR Demonstrate application of key CSR principles

CSRSustainability Policy Strategic interventions vs shotgun approaches Impact metrics vs expense metrics Partnership strategies (financial operational technical) Leadership and leverage

Slide 29

Overview

bull Background ndash how did this get started

bull The Care Project ndashDeveloping and implementing the plan (challenges partners learnings) ndashBusiness value created

bull HIVAIDS ndash The Crisis and why does it matter ndash Programs and activities

Slide 30

Background 1990s saw massive changes in South

African mining industry ndash over 100000 jobs lost as the industry restructured 1999 ndash Placer Dome purchased a 50

interest in South Deep (WAL) a mine located just outside Johannesburg bull 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 31

Background (cont) In late 1999 after detailed study management

realized that economic reality dictated major restructuring at South Deep

13 of the South Deep workforce (over 2500) workers were retrenched bull 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 ndash that the commitment went

BEYOND THE PAYCHECK

waynewaynedunncom Slide 32

Families amp Communities must benefit from mining

Slide 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 HIVAIDS 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$36 million) budget was established

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

waynewaynedunncom Slide 35

The Mine

2560 Retrenchees bullMozambique bullLesotho bullSouth Africa bullSwaziland bullBotswana

How to successfully provide socio-economic support across remote rural regions of five countries

waynewaynedunncom Slide 36

The Initial 4-Step Plan 1 Consultations with retrenchees in their villages 2 Recruit (from amongst the retrenchees) a group

of 25-30 fieldworkers who would provide frontline support to the retrenchees and their families

3 Locate and register the retrenchees 4 Provide them with training and support to enable

them to become economically active

All of the above to be done in partnership with MDA TEBA and other partners

waynewaynedunncom Slide 37

Reality was different than we expected Retrenchees and their

Unions were still angry over the contested retrenchment Retrencheesrsquo homes were

difficult to locate and registration was often problematic

Consultations with retrenchees

Walking to a remote retrenchee homestead in Lesotho

Slide 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 HIVAIDS Fieldworker training programs Retrenchee education levels Centralized delivery didnrsquot work Project was under-financed We couldnrsquot do it in two years Etc

Slide 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

waynewaynedunncom Slide 40

The Process

Business Operation1 Ongoing availability of Technical Assistance and Business Counselling2 Ongoing faclitiation of skills training needs (ie business agriculture vocational etc)

Decision on Economic Option

Employment StreamEnterprise Stream

Evaluation of Micro Finance Application

Retrenchee is Re-Integrated and Economically Active

PersonalEconomic Plan

Prepared ampAssessed

PersonalEmployment Plan

Prepared

Business amp Financing Plan

Prepared

Employment Planning amp Preparation1 Identification of Employment Options2 Skills Training (VocationalAgricultural etc)3 Employment Counseling Placement (Job searchResume etc)

Business Planning amp Preparation1 Business Orientation a) Introduction to Business b) SkillsProduct Training2 Develop Draft Business Plan (to be reviewed with Counselor) (plan will contain market assessment financial operational and skills upgrading plan)3 Preparation of Micro-Finance Application

Orientation and Awareness Phase1 Registration amp Homestead Visits2 District Counselling Sessions3 Open DaysCareer Fairs4 Financial Lifes Skills Training5 Feedback and Choices Session

Ongoing Processes

Follow-up sessions activities to monitor effectiveness of interventions

Communication and consultation with stakeholders Continuous improvement process (review feedback enhance programs procedures processes)

13-step process Delivered 18 times Across Five countries

Slide 41

Some results 92 of the retrenchees were located

and registered 57 of those (1250) are economically

active 65 (1556) 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 42

Chicken raising business

Slide 43

Furniture making

waynewaynedunncom Slide 44

Unique training programs

waynewaynedunncom Slide 45

Rice farming in Mozambique

Slide 46

Spaza (convenience) shop

Slide 47

And the business value ishellip HIVAIDS 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 ndash 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

waynewaynedunncom Slide 48

ldquoThe project changed the social face of the South African Mining Industryrdquo

Kgosietsile Mogaki

South African Ministry of Minerals and Energy

waynewaynedunncom Slide 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 globally

Through 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 50

And then there is HIVAIDS

RSA ACCOUNTED FOR NEARLY 1 IN 8 OF THE NEW HIV INFECTIONS THAT OCCURRED WORLD WIDE IN 2000

HIV+ PREVALENCE RATE IN WOMEN ATTENDING ANTE-NATAL CLINICS INCREASED FROM 07 IN 1990 TO 248 IN 2001

AVERAGE OF 1700 NEW INFECTIONS PER DAY

LIFE EXPECTANCY WILL DECLINE FROM 65 TO 40 BY 2011

65

40

0

10

20

30

40

50

60

70

2001 2011

Life Expectancy

waynewaynedunncom Slide 51

HIVAIDS Facts (in 2000)

ESTIMATED THAT 12 OF TOTAL RSA POPULATION AND 25 OF MINEWORKERS ARE HIV+

ALREADY 400000 PEOPLE ARE AIDS SICK AND THIS WILL INCREASE TO 14 M BY 2010

YOUNG WOMEN PARTICULARLY VULNERABLE ndash 239 AGED BETWEEN 15 ndash 49 ALREADY INFECTED AND WILL RISE TO 297 BY 2007

AIDS ORPHANS AT PRESENT AMOUNT TO 660000+ AND WILL RISE TO 18M BY 2015

ACCUMULATIVE AIDS DEATHS WILL RISE TO 9M BY 2015

Slide 52

HIVAIDS Impact REDUCED ECONOMIC GROWTH RATE ndash 2010 GDP 20 below a non AIDS

scenario REDUCED POPULATION ndash RSA population 10M smaller than non AIDS scenario SKYROCKETING DEMANDS ON PUBLIC HEALTH SYSTEM - RADICALLY CHANGED PRIVATE SPENDING PATTERNS ndash to healthcare and

funeral costs IMPACT ON SOCIO-ECONOMIC STABILITY (orphans)

HIVAIDS 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 Africa today Nobody can afford to ignore it

Slide 53

HIVAIDS and Gold Mining

$10oz impact if nothing is done (5 of production costs) ~$3oz with maximum

intervention Impact on social and political

stability

Slide 54

HIVAIDS Programming Placer Dome program ndash

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 55

Minesite Program

TRAINING AND EDUCATION

STI amp TB TREATMENT

CONDOM DISTRIBUTION

PEER EDUCATION

VOLUNTARY COUNSELING AND TESTING (VCT)

WELLNESS PROGRAM

MEDICAL REPATRIATION

waynewaynedunncom Slide 56

Minesite Program

waynewaynedunncom Slide 57

Current Community Program

AWARENESS AND EDUCATION PROGRAMS

MOBILE CLINIC

CONDOM amp FEMIDOM DISTRIBUTION

PERIODIC PRESUMPTIVE TREATMENT (PPT)

TREATMENT FOR SEXUALLY TRANSMITTED INFECTIONS ( STI)

waynewaynedunncom Slide 58

COMMUNITY PROGRAM

Community Mobile Clinic

waynewaynedunncom Slide 59

And when HIV prevention doesnrsquot 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 60

Industry Home Based Care

TEBA INFRA-STRUCTURE

TRAINING OF CARE GIVERS

SUPPORT STRUCTURE ndash QUALIFIED STAFF

MONTHLY MEDICATION

WORK WITH OTHER STAKEHOLDERS (EG TRADITIONAL HEALERS)

WORLD BANK DEVELOPMENT INNOVATION AWARD

waynewaynedunncom Slide 61

Home Based Care

Slide 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

waynewaynedunncom Slide 63

Overview of Placer Dome AIDS Programming SOUTH DEEP Sustainable Development Department

bullVoluntary Counseling and testing HIV Negative bullContinue working

On Mine Program Community Program

Modified work program Farm bullAgricultural work Environmental

Medical repatriation

Home Based Care

Benefits Care Positive

HBC EC OPP

Back to work or Re skilled

Wellness Program

waynewaynedunncom Slide 64

But what happens to children and families when the breadwinner canrsquot

work

Slide 65

HIVAIDS and Rural Areas HIVAIDS 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

Slide 66

HIVAIDS 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

waynewaynedunncom

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 CSREthical

Project Award (2004) Numerous other awards Stanford Case Study

waynewaynedunncom Slide 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 69

Planned Program

Care Positive Integrate the Home Based Care

project with the Care process and launch as a fee for service based program to address the social and 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

Care Process

+

Home Based Care

=

Care Positive

waynewaynedunncom Slide 70

Care Positive Summary

waynewaynedunncom

Andhellip 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 $100000 and considerable reputational capital into them Industry went forward with modified HIVAIDS

programming but huge developmental impacts were lost

waynewaynedunncom Slide 72

MDG Impacts of Placer Dome in South Africa

1 Poverty and hunger 2 Some impact on primary education (School

feeding program) 3 Promote gender equality and empower women 4 Reduce child mortality 5 Improve maternal health 6 Combat HIVAIDS malaria and other diseass 7 Ensure environmental sustainability 8 Develop a global partnership for development

(Placer Dome CIDA Civil Society NGOs)

waynewaynedunncom

One thing leads to another

World Bank observed how Placer Domersquos leadership on HIVAIDS 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

waynewaynedunncom

PNG HIVAIDS Scoping mission to

determine what might be done and how Enthusiastic interest from

industry government multi-laterals (WHO UNAIDS World Banketc) ODA (AusAID) CIDA partnered with Place Dome to develop an

HIVAIDS strategy for PNG that integrated industry public sector civil society and international community

waynewaynedunncom

PNG Outcomes (or outputs ndash Irsquom never sure) Partnership with Mining

Industry Civil Society WHO UNAIDS UNDP World Bank PNG AIDS AusAID Oil Palm Industry etc National workshop on

HIVAIDS and publicprivate partnerships SouthSouth Collaboration

Industry government civil society international community study trip to South Africa

waynewaynedunncom

waynewaynedunncom

PNG AIDS mission to South Africa

waynewaynedunncom Slide 78

MDG Impacts of PNG HIVAIDS work

1 Poverty and hunger (nutritional supplements) 2 Some impact on primary education (peripheral) 3 Promote gender equality and empower women 4 Reduce child mortality 5 Improve maternal health 6 Combat HIVAIDS malaria and other diseass 7 Ensure environmental sustainability 8 Develop a global partnership for development

(Placer Dome CIDA Civil Society NGOs)

waynewaynedunncom

Eldorado Gold in Turkey

Major gold find in WestCentral Turkey No successful

mining project launched in decades Eurogold project

built launched and halted by community action in late 1990s ndash still mothballed

UsakKislidag Minesite

Eurogold site

waynewaynedunncom

Eldorado Gold in Turkey

Isolated rural area Nearly half of nearby

communities opposed to mine development Agriculture primary

economic activity in rural communities ndash smallmicro family farms

waynewaynedunncom

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

waynewaynedunncom

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 $075 to $1325 Opened second mine in Turkey

bull Able to deal with controversial watershed issues after relationship success in Usak

waynewaynedunncom Slide 83

MDG Impacts of Eldorado Gold

1 Poverty and hunger (minimal) 2 Some impact on primary education (peripheral) 3 Promote gender equality and empower women 4 Reduce child mortality 5 Improve maternal health 6 Combat HIVAIDS malaria and other diseass 7 Ensure environmental sustainability 8 Develop a global partnership for development

(Placer Dome CIDA Civil Society NGOs)

waynewaynedunncom

Underwater Logging in Ghana

waynewaynedunncom

Private Sector and International Development

Private sector especially resource extraction has a very mixed record bull Some horrendous disasters (Nigeria Warao Peoples in

Venezuela etc) bull Some great successes (Placer Dome Care project

mining and HIVAIDS 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

waynewaynedunncom

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

interestsobjectives overlap

waynewaynedunncom

SDCSR Implementation Challenges

more than a warm fuzzy issue Spending isnrsquot the answer

Plan

Framework

System

Results

Solving social problems Objectives

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Beyond Beads and Trinkets ndash BC Mining Review

A lsquohow torsquo article on mining and CSR

Wayne Dunn

BP Venezuela Indigenous Relations ndash Meeting the Challenge Responsibly and Sustainably

Situational assessment and strategic plan for BP Venezuela Authorized for release by BP

Wayne Dunn

Cameco Community Relations Report

Situational assessment and management strategy Authorized for release by Cameco

Wayne Dunn

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author Beyond Beads lsquon Trinkets A systematic approach to managing community relations

A conference paper describing a systematic approach to community relations management helping companies to methodically develop mutually beneficial relationships with local communities and interests (this is one of the earliest papers on this subject ndash written in 1998)

Wayne Dunn

The costs of conflict with local communities in the extractive industry

Analysis of the cost of community conflicts in the Extractive Sector

Rachel Davis and Daniel M Franks

Creating Shared Value

Harvard Business Review interview with Michael Porter

Video

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Social License Its all about value

Discussion on Social License and shareholder Value

Wayne Dunn

Its about Development Commentary on the CIDAMining Company issue

Wayne Dunn

Integrating corporate strategy and social responsibilitymdashmarket returns from stakeholder engagement

Discussion and analysis on market returns on stakeholder engagement

Witold J Henisz Sinziana Dorobantu and Lite J Narty

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

McGill Reporter ndash Four Burning Questions Wayne Dunn on CSR

Discussion on CSR Wayne Dunn

Miningrsquos contribution to sustainable development ndashan overview

Discussion paper prepared by the International Council on Mining and Metals

Millennium Development Goals

United Nations

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Mining and Agriculture Development

A short lsquohow torsquo guide for mining projects to engage with the local agriculture sector

Al Hingston

PDSA Social Value Brochure

Brochure on social value created by Placer Dome South Africa

Placer Dome

The Value of Social License

Opinion piece published in Northern Miner

Wayne Dunn

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Golden Opportunity When a Canadian multinational laid off hundreds of gold miners in South Africa it went many extra miles to help them get back on their feet

Stanford Business School Case Study on Placer Dome in South Africa

Wayne Dunn

The Changing Resource Development Paradigm Maximizing Sustainable Local Benefits from Resource Development

Strategic thought piece prepared for the government of British Columbia Canada

Wayne Dunn

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

The Disappearing Barriers Between Business And Non-profits Are Driving Innovation

Discussion paper

Katherine Pikus

When Condoms are not enough

World Bank staff magazine article on Placer Dome and South African mining industryrsquos work with HIVAIDS

Craig Andrews

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

MINING AND LOCAL ECONOMIC DEVELOPMENT IN PAPUA NEW GUINEA Preliminary Research on a Potential Pilot Project in Porgera and Lihir

Strategic research and action plan on mining and local economic development in Papua New Guinea prepared for the World Bank

Wayne Dunn

waynewaynedunncom

What we covered

We 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) Publicprivatecivil society collaboration ndash case study

and discussion (CIDA and Mining Companies) Open discussion on topics of interest (time permitting)

waynewaynedunncom

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 howwhy 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

waynewaynedunncom

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 howwhy 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

waynewaynedunncom

Alignment around Shared Value For shareholders For Communities For People For Governments

Private Sector Contributions To International Development

Remember

  • Private Sector Contributions To International Development
  • Session Objectives
  • Map of the morning How we will try to meet the objectives
  • Slide Number 4
  • What is ODA and FDI
  • What is ODA and FDI
  • Why discuss Private Sector Contribution anyway
  • FDIBusiness Outcomes
  • Intention and Strategy Make a Difference
  • Why does the private sector care
  • Community Consultation and Value
  • Itrsquos Real Money
  • CSR is a Value Strategy
  • Social License Failures cost
  • Why is CSR happening
  • The Mining World Has Changed
  • CSR is a complicated space
  • CSR amp Social License
  • Role of business is changing (click image to play video)
  • Case Studies (of successes)
  • Slide Number 21
  • Uranium Industry in Northern Saskatchewan
  • Challenging area
  • Challenging Times
  • Cameco in 1998
  • Cameco in Northern Saskatchewan (2010)
  • So how did Cameco and the industry do it
  • Placer Dome South Africa
  • Slide Number 29
  • Background
  • Background (cont)
  • Families amp Communities must benefit from mining
  • The Care Project
  • Implications
  • Slide Number 35
  • The Initial 4-Step Plan
  • Reality was different than we expected
  • Reality was different than expected
  • Meeting the challenges
  • TheProcess
  • Some results
  • Chicken raising business
  • Furniture making
  • Unique training programs
  • Rice farming in Mozambique
  • Spaza (convenience) shop
  • And the business value ishellip
  • Slide Number 48
  • What was in it for Placer Dome
  • And then there is HIVAIDS
  • HIVAIDS Facts (in 2000)
  • HIVAIDS Impact
  • HIVAIDS and Gold Mining
  • HIVAIDS Programming
  • Minesite Program
  • Minesite Program
  • Current Community Program
  • Community Mobile Clinic
  • And when HIV prevention doesnrsquot work
  • Industry Home Based Care
  • Home Based Care
  • INDUSTRY HOME BASED CARE RESULTS(Year One)
  • Overview of Placer Dome AIDS Programming
  • Slide Number 64
  • HIVAIDS and Rural Areas
  • HIVAIDS and Rural Areas
  • Reputational Results for Placer Dome
  • Where to next
  • Planned Program
  • Care Positive Summary
  • Andhellip
  • MDG Impacts of Placer Dome in South Africa
  • One thing leads to another
  • PNG HIVAIDS
  • PNG Outcomes (or outputs ndash Irsquom never sure)
  • Slide Number 76
  • PNG AIDS mission to South Africa
  • MDG Impacts of PNG HIVAIDS work
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • MDG Impacts of Eldorado Gold
  • Underwater Logging in Ghana
  • Private Sector and International Development
  • Group Exercise
  • Slide Number 87
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • What we covered
  • Session Objectives
  • Session Objectives
  • Remember
Page 12: Private Sector Contributions To International Development – McGill Executive Education Program Lecture

waynewaynedunncom

Itrsquos Real Money

$280000000

$670000000 $880000000

$720000000

$330000000

$120000000

$0

$100000000

$200000000

$300000000

$400000000

$500000000

$600000000

$700000000

$800000000

$900000000

$1000000000

72 33 12

Lost Value

Value in market

Market value of $1 billion of gold in the ground based on consultation and conflict

CSR is a Value Strategy

Share price of a CSR failure that rendered a multi-billion dollar reserve un-developable Good CSR creates value for company community and other stakeholders

~$1300 $029

Social License Failures cost

Bougaineville (PNG)- corporate practices were directly implicated in provoking civil war allegedly cost Rio Tinto $3 billion (Stanford Univ study) Tambo Grande (Peru) OvacikEurogold (Turkey)

waynewaynedunncom

Globalized world is demanding more of businesshellip Global media ndash The CNNization of the world ndash remote local

issues direct to television screens Social Media ndash Youtube Facebook Twitter etc Everything is

Everywhere and Organizable Proliferation of NGOs and CBOs ndash direct well organized and

financed support to communities

Why is CSR happening

Internet and other communications innovations ndash direct communications from remote projects to worldwide audience

Global Democratization ndash increased attention to local issues

waynewaynedunncom

bull ldquoWe are determined to provide multi-skilling to workers and assist them to cope with retrenchments This is a must and not a choice for industryrdquo

bull ldquoIt 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 pastrdquo Hon Phumizile Mlambo-Ngcuka

South Africa Minister of Minerals and Energy

The Mining World Has Changed

waynewaynedunncom

CSR is a complicated space

135 Codes 929 Page Report And that was in Jan 2007

waynewaynedunncom

CSR amp 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

waynewaynedunncom

Role of business is changing (click image to play video)

Creating Shared Value - Harvard Business Review

waynewaynedunncom

Case Studies (of successes)

Cameco in Northern Saskatchewan ndash indigenous employment and development (Industry Social License) Placer Dome South Africa ndash community development and

womenrsquos empowerment HIVAIDS programming leadership Placer Dome in Papua New Guinea ndash leading public private

partnerships in HIVAIDS programming (and southsouth cooperation) Eldorado Gold in Turkey ndash supporting community priorities CSR Developments in Ghana ndash underwater logging and

social license

waynewaynedunncom

1 Eradicate extreme poverty and hunger 2 Achieve universal primary education 3 Promote gender equality and empower women 4 Reduce child mortality 5 Improve maternal health 6 Combat HIVAIDS malaria and other diseass 7 Ensure environmental sustainability 8 Develop a global partnership for development

waynewaynedunncom

Uranium Industry in Northern Saskatchewan Huge remote area (larger than all but five US States (Alaska Texas California Montana and New Mexico)

Waynersquos World

waynewaynedunncom

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

waynewaynedunncom

Challenging Times

Strong opposition to industry developing bull From Europe bull From within governing party

Industry had difficulties from all sides bull Local stakeholders didnrsquot have the capacity to engage

productively in the industry bull Early days of CSR (1980s) and companies largely didnrsquot

realize the importance of local engagement and value creation

waynewaynedunncom

Cameco in 1998

Camecorsquos approach has transformed the socio-economic well-being of Indigenous Peoples in Northern Saskatchewan

29 30

34

37 3739

42 42 43 44

20

25

30

35

40

45

50

1989 1990 1991 1992 1993 1994 1995 1996 1997 1998(Aug)

Perc

enta

ge o

f Tot

al W

orkf

orce

Cameco Aboriginal Employment(includes permanent contractor workforce)

waynewaynedunncom

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 $25 million to northern and aboriginal

initiatives for youth health and wellness education and literacy and culture and recreation Provided $100000 in scholarships to post-secondary

students

waynewaynedunncom

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 ndash NRT Trucking Skunk workssecret meetings Overcoming culture and practice barriers (drilling

underground mining etc) BHAGs Necessity

waynewaynedunncom Slide 28

Placer Dome South Africa

Case study of innovative developmental CSR Demonstrate application of key CSR principles

CSRSustainability Policy Strategic interventions vs shotgun approaches Impact metrics vs expense metrics Partnership strategies (financial operational technical) Leadership and leverage

Slide 29

Overview

bull Background ndash how did this get started

bull The Care Project ndashDeveloping and implementing the plan (challenges partners learnings) ndashBusiness value created

bull HIVAIDS ndash The Crisis and why does it matter ndash Programs and activities

Slide 30

Background 1990s saw massive changes in South

African mining industry ndash over 100000 jobs lost as the industry restructured 1999 ndash Placer Dome purchased a 50

interest in South Deep (WAL) a mine located just outside Johannesburg bull 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 31

Background (cont) In late 1999 after detailed study management

realized that economic reality dictated major restructuring at South Deep

13 of the South Deep workforce (over 2500) workers were retrenched bull 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 ndash that the commitment went

BEYOND THE PAYCHECK

waynewaynedunncom Slide 32

Families amp Communities must benefit from mining

Slide 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 HIVAIDS 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$36 million) budget was established

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

waynewaynedunncom Slide 35

The Mine

2560 Retrenchees bullMozambique bullLesotho bullSouth Africa bullSwaziland bullBotswana

How to successfully provide socio-economic support across remote rural regions of five countries

waynewaynedunncom Slide 36

The Initial 4-Step Plan 1 Consultations with retrenchees in their villages 2 Recruit (from amongst the retrenchees) a group

of 25-30 fieldworkers who would provide frontline support to the retrenchees and their families

3 Locate and register the retrenchees 4 Provide them with training and support to enable

them to become economically active

All of the above to be done in partnership with MDA TEBA and other partners

waynewaynedunncom Slide 37

Reality was different than we expected Retrenchees and their

Unions were still angry over the contested retrenchment Retrencheesrsquo homes were

difficult to locate and registration was often problematic

Consultations with retrenchees

Walking to a remote retrenchee homestead in Lesotho

Slide 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 HIVAIDS Fieldworker training programs Retrenchee education levels Centralized delivery didnrsquot work Project was under-financed We couldnrsquot do it in two years Etc

Slide 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

waynewaynedunncom Slide 40

The Process

Business Operation1 Ongoing availability of Technical Assistance and Business Counselling2 Ongoing faclitiation of skills training needs (ie business agriculture vocational etc)

Decision on Economic Option

Employment StreamEnterprise Stream

Evaluation of Micro Finance Application

Retrenchee is Re-Integrated and Economically Active

PersonalEconomic Plan

Prepared ampAssessed

PersonalEmployment Plan

Prepared

Business amp Financing Plan

Prepared

Employment Planning amp Preparation1 Identification of Employment Options2 Skills Training (VocationalAgricultural etc)3 Employment Counseling Placement (Job searchResume etc)

Business Planning amp Preparation1 Business Orientation a) Introduction to Business b) SkillsProduct Training2 Develop Draft Business Plan (to be reviewed with Counselor) (plan will contain market assessment financial operational and skills upgrading plan)3 Preparation of Micro-Finance Application

Orientation and Awareness Phase1 Registration amp Homestead Visits2 District Counselling Sessions3 Open DaysCareer Fairs4 Financial Lifes Skills Training5 Feedback and Choices Session

Ongoing Processes

Follow-up sessions activities to monitor effectiveness of interventions

Communication and consultation with stakeholders Continuous improvement process (review feedback enhance programs procedures processes)

13-step process Delivered 18 times Across Five countries

Slide 41

Some results 92 of the retrenchees were located

and registered 57 of those (1250) are economically

active 65 (1556) 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 42

Chicken raising business

Slide 43

Furniture making

waynewaynedunncom Slide 44

Unique training programs

waynewaynedunncom Slide 45

Rice farming in Mozambique

Slide 46

Spaza (convenience) shop

Slide 47

And the business value ishellip HIVAIDS 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 ndash 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

waynewaynedunncom Slide 48

ldquoThe project changed the social face of the South African Mining Industryrdquo

Kgosietsile Mogaki

South African Ministry of Minerals and Energy

waynewaynedunncom Slide 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 globally

Through 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 50

And then there is HIVAIDS

RSA ACCOUNTED FOR NEARLY 1 IN 8 OF THE NEW HIV INFECTIONS THAT OCCURRED WORLD WIDE IN 2000

HIV+ PREVALENCE RATE IN WOMEN ATTENDING ANTE-NATAL CLINICS INCREASED FROM 07 IN 1990 TO 248 IN 2001

AVERAGE OF 1700 NEW INFECTIONS PER DAY

LIFE EXPECTANCY WILL DECLINE FROM 65 TO 40 BY 2011

65

40

0

10

20

30

40

50

60

70

2001 2011

Life Expectancy

waynewaynedunncom Slide 51

HIVAIDS Facts (in 2000)

ESTIMATED THAT 12 OF TOTAL RSA POPULATION AND 25 OF MINEWORKERS ARE HIV+

ALREADY 400000 PEOPLE ARE AIDS SICK AND THIS WILL INCREASE TO 14 M BY 2010

YOUNG WOMEN PARTICULARLY VULNERABLE ndash 239 AGED BETWEEN 15 ndash 49 ALREADY INFECTED AND WILL RISE TO 297 BY 2007

AIDS ORPHANS AT PRESENT AMOUNT TO 660000+ AND WILL RISE TO 18M BY 2015

ACCUMULATIVE AIDS DEATHS WILL RISE TO 9M BY 2015

Slide 52

HIVAIDS Impact REDUCED ECONOMIC GROWTH RATE ndash 2010 GDP 20 below a non AIDS

scenario REDUCED POPULATION ndash RSA population 10M smaller than non AIDS scenario SKYROCKETING DEMANDS ON PUBLIC HEALTH SYSTEM - RADICALLY CHANGED PRIVATE SPENDING PATTERNS ndash to healthcare and

funeral costs IMPACT ON SOCIO-ECONOMIC STABILITY (orphans)

HIVAIDS 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 Africa today Nobody can afford to ignore it

Slide 53

HIVAIDS and Gold Mining

$10oz impact if nothing is done (5 of production costs) ~$3oz with maximum

intervention Impact on social and political

stability

Slide 54

HIVAIDS Programming Placer Dome program ndash

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 55

Minesite Program

TRAINING AND EDUCATION

STI amp TB TREATMENT

CONDOM DISTRIBUTION

PEER EDUCATION

VOLUNTARY COUNSELING AND TESTING (VCT)

WELLNESS PROGRAM

MEDICAL REPATRIATION

waynewaynedunncom Slide 56

Minesite Program

waynewaynedunncom Slide 57

Current Community Program

AWARENESS AND EDUCATION PROGRAMS

MOBILE CLINIC

CONDOM amp FEMIDOM DISTRIBUTION

PERIODIC PRESUMPTIVE TREATMENT (PPT)

TREATMENT FOR SEXUALLY TRANSMITTED INFECTIONS ( STI)

waynewaynedunncom Slide 58

COMMUNITY PROGRAM

Community Mobile Clinic

waynewaynedunncom Slide 59

And when HIV prevention doesnrsquot 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 60

Industry Home Based Care

TEBA INFRA-STRUCTURE

TRAINING OF CARE GIVERS

SUPPORT STRUCTURE ndash QUALIFIED STAFF

MONTHLY MEDICATION

WORK WITH OTHER STAKEHOLDERS (EG TRADITIONAL HEALERS)

WORLD BANK DEVELOPMENT INNOVATION AWARD

waynewaynedunncom Slide 61

Home Based Care

Slide 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

waynewaynedunncom Slide 63

Overview of Placer Dome AIDS Programming SOUTH DEEP Sustainable Development Department

bullVoluntary Counseling and testing HIV Negative bullContinue working

On Mine Program Community Program

Modified work program Farm bullAgricultural work Environmental

Medical repatriation

Home Based Care

Benefits Care Positive

HBC EC OPP

Back to work or Re skilled

Wellness Program

waynewaynedunncom Slide 64

But what happens to children and families when the breadwinner canrsquot

work

Slide 65

HIVAIDS and Rural Areas HIVAIDS 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

Slide 66

HIVAIDS 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

waynewaynedunncom

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 CSREthical

Project Award (2004) Numerous other awards Stanford Case Study

waynewaynedunncom Slide 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 69

Planned Program

Care Positive Integrate the Home Based Care

project with the Care process and launch as a fee for service based program to address the social and 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

Care Process

+

Home Based Care

=

Care Positive

waynewaynedunncom Slide 70

Care Positive Summary

waynewaynedunncom

Andhellip 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 $100000 and considerable reputational capital into them Industry went forward with modified HIVAIDS

programming but huge developmental impacts were lost

waynewaynedunncom Slide 72

MDG Impacts of Placer Dome in South Africa

1 Poverty and hunger 2 Some impact on primary education (School

feeding program) 3 Promote gender equality and empower women 4 Reduce child mortality 5 Improve maternal health 6 Combat HIVAIDS malaria and other diseass 7 Ensure environmental sustainability 8 Develop a global partnership for development

(Placer Dome CIDA Civil Society NGOs)

waynewaynedunncom

One thing leads to another

World Bank observed how Placer Domersquos leadership on HIVAIDS 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

waynewaynedunncom

PNG HIVAIDS Scoping mission to

determine what might be done and how Enthusiastic interest from

industry government multi-laterals (WHO UNAIDS World Banketc) ODA (AusAID) CIDA partnered with Place Dome to develop an

HIVAIDS strategy for PNG that integrated industry public sector civil society and international community

waynewaynedunncom

PNG Outcomes (or outputs ndash Irsquom never sure) Partnership with Mining

Industry Civil Society WHO UNAIDS UNDP World Bank PNG AIDS AusAID Oil Palm Industry etc National workshop on

HIVAIDS and publicprivate partnerships SouthSouth Collaboration

Industry government civil society international community study trip to South Africa

waynewaynedunncom

waynewaynedunncom

PNG AIDS mission to South Africa

waynewaynedunncom Slide 78

MDG Impacts of PNG HIVAIDS work

1 Poverty and hunger (nutritional supplements) 2 Some impact on primary education (peripheral) 3 Promote gender equality and empower women 4 Reduce child mortality 5 Improve maternal health 6 Combat HIVAIDS malaria and other diseass 7 Ensure environmental sustainability 8 Develop a global partnership for development

(Placer Dome CIDA Civil Society NGOs)

waynewaynedunncom

Eldorado Gold in Turkey

Major gold find in WestCentral Turkey No successful

mining project launched in decades Eurogold project

built launched and halted by community action in late 1990s ndash still mothballed

UsakKislidag Minesite

Eurogold site

waynewaynedunncom

Eldorado Gold in Turkey

Isolated rural area Nearly half of nearby

communities opposed to mine development Agriculture primary

economic activity in rural communities ndash smallmicro family farms

waynewaynedunncom

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

waynewaynedunncom

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 $075 to $1325 Opened second mine in Turkey

bull Able to deal with controversial watershed issues after relationship success in Usak

waynewaynedunncom Slide 83

MDG Impacts of Eldorado Gold

1 Poverty and hunger (minimal) 2 Some impact on primary education (peripheral) 3 Promote gender equality and empower women 4 Reduce child mortality 5 Improve maternal health 6 Combat HIVAIDS malaria and other diseass 7 Ensure environmental sustainability 8 Develop a global partnership for development

(Placer Dome CIDA Civil Society NGOs)

waynewaynedunncom

Underwater Logging in Ghana

waynewaynedunncom

Private Sector and International Development

Private sector especially resource extraction has a very mixed record bull Some horrendous disasters (Nigeria Warao Peoples in

Venezuela etc) bull Some great successes (Placer Dome Care project

mining and HIVAIDS 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

waynewaynedunncom

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

interestsobjectives overlap

waynewaynedunncom

SDCSR Implementation Challenges

more than a warm fuzzy issue Spending isnrsquot the answer

Plan

Framework

System

Results

Solving social problems Objectives

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Beyond Beads and Trinkets ndash BC Mining Review

A lsquohow torsquo article on mining and CSR

Wayne Dunn

BP Venezuela Indigenous Relations ndash Meeting the Challenge Responsibly and Sustainably

Situational assessment and strategic plan for BP Venezuela Authorized for release by BP

Wayne Dunn

Cameco Community Relations Report

Situational assessment and management strategy Authorized for release by Cameco

Wayne Dunn

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author Beyond Beads lsquon Trinkets A systematic approach to managing community relations

A conference paper describing a systematic approach to community relations management helping companies to methodically develop mutually beneficial relationships with local communities and interests (this is one of the earliest papers on this subject ndash written in 1998)

Wayne Dunn

The costs of conflict with local communities in the extractive industry

Analysis of the cost of community conflicts in the Extractive Sector

Rachel Davis and Daniel M Franks

Creating Shared Value

Harvard Business Review interview with Michael Porter

Video

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Social License Its all about value

Discussion on Social License and shareholder Value

Wayne Dunn

Its about Development Commentary on the CIDAMining Company issue

Wayne Dunn

Integrating corporate strategy and social responsibilitymdashmarket returns from stakeholder engagement

Discussion and analysis on market returns on stakeholder engagement

Witold J Henisz Sinziana Dorobantu and Lite J Narty

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

McGill Reporter ndash Four Burning Questions Wayne Dunn on CSR

Discussion on CSR Wayne Dunn

Miningrsquos contribution to sustainable development ndashan overview

Discussion paper prepared by the International Council on Mining and Metals

Millennium Development Goals

United Nations

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Mining and Agriculture Development

A short lsquohow torsquo guide for mining projects to engage with the local agriculture sector

Al Hingston

PDSA Social Value Brochure

Brochure on social value created by Placer Dome South Africa

Placer Dome

The Value of Social License

Opinion piece published in Northern Miner

Wayne Dunn

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Golden Opportunity When a Canadian multinational laid off hundreds of gold miners in South Africa it went many extra miles to help them get back on their feet

Stanford Business School Case Study on Placer Dome in South Africa

Wayne Dunn

The Changing Resource Development Paradigm Maximizing Sustainable Local Benefits from Resource Development

Strategic thought piece prepared for the government of British Columbia Canada

Wayne Dunn

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

The Disappearing Barriers Between Business And Non-profits Are Driving Innovation

Discussion paper

Katherine Pikus

When Condoms are not enough

World Bank staff magazine article on Placer Dome and South African mining industryrsquos work with HIVAIDS

Craig Andrews

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

MINING AND LOCAL ECONOMIC DEVELOPMENT IN PAPUA NEW GUINEA Preliminary Research on a Potential Pilot Project in Porgera and Lihir

Strategic research and action plan on mining and local economic development in Papua New Guinea prepared for the World Bank

Wayne Dunn

waynewaynedunncom

What we covered

We 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) Publicprivatecivil society collaboration ndash case study

and discussion (CIDA and Mining Companies) Open discussion on topics of interest (time permitting)

waynewaynedunncom

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 howwhy 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

waynewaynedunncom

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 howwhy 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

waynewaynedunncom

Alignment around Shared Value For shareholders For Communities For People For Governments

Private Sector Contributions To International Development

Remember

  • Private Sector Contributions To International Development
  • Session Objectives
  • Map of the morning How we will try to meet the objectives
  • Slide Number 4
  • What is ODA and FDI
  • What is ODA and FDI
  • Why discuss Private Sector Contribution anyway
  • FDIBusiness Outcomes
  • Intention and Strategy Make a Difference
  • Why does the private sector care
  • Community Consultation and Value
  • Itrsquos Real Money
  • CSR is a Value Strategy
  • Social License Failures cost
  • Why is CSR happening
  • The Mining World Has Changed
  • CSR is a complicated space
  • CSR amp Social License
  • Role of business is changing (click image to play video)
  • Case Studies (of successes)
  • Slide Number 21
  • Uranium Industry in Northern Saskatchewan
  • Challenging area
  • Challenging Times
  • Cameco in 1998
  • Cameco in Northern Saskatchewan (2010)
  • So how did Cameco and the industry do it
  • Placer Dome South Africa
  • Slide Number 29
  • Background
  • Background (cont)
  • Families amp Communities must benefit from mining
  • The Care Project
  • Implications
  • Slide Number 35
  • The Initial 4-Step Plan
  • Reality was different than we expected
  • Reality was different than expected
  • Meeting the challenges
  • TheProcess
  • Some results
  • Chicken raising business
  • Furniture making
  • Unique training programs
  • Rice farming in Mozambique
  • Spaza (convenience) shop
  • And the business value ishellip
  • Slide Number 48
  • What was in it for Placer Dome
  • And then there is HIVAIDS
  • HIVAIDS Facts (in 2000)
  • HIVAIDS Impact
  • HIVAIDS and Gold Mining
  • HIVAIDS Programming
  • Minesite Program
  • Minesite Program
  • Current Community Program
  • Community Mobile Clinic
  • And when HIV prevention doesnrsquot work
  • Industry Home Based Care
  • Home Based Care
  • INDUSTRY HOME BASED CARE RESULTS(Year One)
  • Overview of Placer Dome AIDS Programming
  • Slide Number 64
  • HIVAIDS and Rural Areas
  • HIVAIDS and Rural Areas
  • Reputational Results for Placer Dome
  • Where to next
  • Planned Program
  • Care Positive Summary
  • Andhellip
  • MDG Impacts of Placer Dome in South Africa
  • One thing leads to another
  • PNG HIVAIDS
  • PNG Outcomes (or outputs ndash Irsquom never sure)
  • Slide Number 76
  • PNG AIDS mission to South Africa
  • MDG Impacts of PNG HIVAIDS work
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • MDG Impacts of Eldorado Gold
  • Underwater Logging in Ghana
  • Private Sector and International Development
  • Group Exercise
  • Slide Number 87
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • What we covered
  • Session Objectives
  • Session Objectives
  • Remember
Page 13: Private Sector Contributions To International Development – McGill Executive Education Program Lecture

CSR is a Value Strategy

Share price of a CSR failure that rendered a multi-billion dollar reserve un-developable Good CSR creates value for company community and other stakeholders

~$1300 $029

Social License Failures cost

Bougaineville (PNG)- corporate practices were directly implicated in provoking civil war allegedly cost Rio Tinto $3 billion (Stanford Univ study) Tambo Grande (Peru) OvacikEurogold (Turkey)

waynewaynedunncom

Globalized world is demanding more of businesshellip Global media ndash The CNNization of the world ndash remote local

issues direct to television screens Social Media ndash Youtube Facebook Twitter etc Everything is

Everywhere and Organizable Proliferation of NGOs and CBOs ndash direct well organized and

financed support to communities

Why is CSR happening

Internet and other communications innovations ndash direct communications from remote projects to worldwide audience

Global Democratization ndash increased attention to local issues

waynewaynedunncom

bull ldquoWe are determined to provide multi-skilling to workers and assist them to cope with retrenchments This is a must and not a choice for industryrdquo

bull ldquoIt 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 pastrdquo Hon Phumizile Mlambo-Ngcuka

South Africa Minister of Minerals and Energy

The Mining World Has Changed

waynewaynedunncom

CSR is a complicated space

135 Codes 929 Page Report And that was in Jan 2007

waynewaynedunncom

CSR amp 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

waynewaynedunncom

Role of business is changing (click image to play video)

Creating Shared Value - Harvard Business Review

waynewaynedunncom

Case Studies (of successes)

Cameco in Northern Saskatchewan ndash indigenous employment and development (Industry Social License) Placer Dome South Africa ndash community development and

womenrsquos empowerment HIVAIDS programming leadership Placer Dome in Papua New Guinea ndash leading public private

partnerships in HIVAIDS programming (and southsouth cooperation) Eldorado Gold in Turkey ndash supporting community priorities CSR Developments in Ghana ndash underwater logging and

social license

waynewaynedunncom

1 Eradicate extreme poverty and hunger 2 Achieve universal primary education 3 Promote gender equality and empower women 4 Reduce child mortality 5 Improve maternal health 6 Combat HIVAIDS malaria and other diseass 7 Ensure environmental sustainability 8 Develop a global partnership for development

waynewaynedunncom

Uranium Industry in Northern Saskatchewan Huge remote area (larger than all but five US States (Alaska Texas California Montana and New Mexico)

Waynersquos World

waynewaynedunncom

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

waynewaynedunncom

Challenging Times

Strong opposition to industry developing bull From Europe bull From within governing party

Industry had difficulties from all sides bull Local stakeholders didnrsquot have the capacity to engage

productively in the industry bull Early days of CSR (1980s) and companies largely didnrsquot

realize the importance of local engagement and value creation

waynewaynedunncom

Cameco in 1998

Camecorsquos approach has transformed the socio-economic well-being of Indigenous Peoples in Northern Saskatchewan

29 30

34

37 3739

42 42 43 44

20

25

30

35

40

45

50

1989 1990 1991 1992 1993 1994 1995 1996 1997 1998(Aug)

Perc

enta

ge o

f Tot

al W

orkf

orce

Cameco Aboriginal Employment(includes permanent contractor workforce)

waynewaynedunncom

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 $25 million to northern and aboriginal

initiatives for youth health and wellness education and literacy and culture and recreation Provided $100000 in scholarships to post-secondary

students

waynewaynedunncom

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 ndash NRT Trucking Skunk workssecret meetings Overcoming culture and practice barriers (drilling

underground mining etc) BHAGs Necessity

waynewaynedunncom Slide 28

Placer Dome South Africa

Case study of innovative developmental CSR Demonstrate application of key CSR principles

CSRSustainability Policy Strategic interventions vs shotgun approaches Impact metrics vs expense metrics Partnership strategies (financial operational technical) Leadership and leverage

Slide 29

Overview

bull Background ndash how did this get started

bull The Care Project ndashDeveloping and implementing the plan (challenges partners learnings) ndashBusiness value created

bull HIVAIDS ndash The Crisis and why does it matter ndash Programs and activities

Slide 30

Background 1990s saw massive changes in South

African mining industry ndash over 100000 jobs lost as the industry restructured 1999 ndash Placer Dome purchased a 50

interest in South Deep (WAL) a mine located just outside Johannesburg bull 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 31

Background (cont) In late 1999 after detailed study management

realized that economic reality dictated major restructuring at South Deep

13 of the South Deep workforce (over 2500) workers were retrenched bull 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 ndash that the commitment went

BEYOND THE PAYCHECK

waynewaynedunncom Slide 32

Families amp Communities must benefit from mining

Slide 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 HIVAIDS 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$36 million) budget was established

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

waynewaynedunncom Slide 35

The Mine

2560 Retrenchees bullMozambique bullLesotho bullSouth Africa bullSwaziland bullBotswana

How to successfully provide socio-economic support across remote rural regions of five countries

waynewaynedunncom Slide 36

The Initial 4-Step Plan 1 Consultations with retrenchees in their villages 2 Recruit (from amongst the retrenchees) a group

of 25-30 fieldworkers who would provide frontline support to the retrenchees and their families

3 Locate and register the retrenchees 4 Provide them with training and support to enable

them to become economically active

All of the above to be done in partnership with MDA TEBA and other partners

waynewaynedunncom Slide 37

Reality was different than we expected Retrenchees and their

Unions were still angry over the contested retrenchment Retrencheesrsquo homes were

difficult to locate and registration was often problematic

Consultations with retrenchees

Walking to a remote retrenchee homestead in Lesotho

Slide 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 HIVAIDS Fieldworker training programs Retrenchee education levels Centralized delivery didnrsquot work Project was under-financed We couldnrsquot do it in two years Etc

Slide 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

waynewaynedunncom Slide 40

The Process

Business Operation1 Ongoing availability of Technical Assistance and Business Counselling2 Ongoing faclitiation of skills training needs (ie business agriculture vocational etc)

Decision on Economic Option

Employment StreamEnterprise Stream

Evaluation of Micro Finance Application

Retrenchee is Re-Integrated and Economically Active

PersonalEconomic Plan

Prepared ampAssessed

PersonalEmployment Plan

Prepared

Business amp Financing Plan

Prepared

Employment Planning amp Preparation1 Identification of Employment Options2 Skills Training (VocationalAgricultural etc)3 Employment Counseling Placement (Job searchResume etc)

Business Planning amp Preparation1 Business Orientation a) Introduction to Business b) SkillsProduct Training2 Develop Draft Business Plan (to be reviewed with Counselor) (plan will contain market assessment financial operational and skills upgrading plan)3 Preparation of Micro-Finance Application

Orientation and Awareness Phase1 Registration amp Homestead Visits2 District Counselling Sessions3 Open DaysCareer Fairs4 Financial Lifes Skills Training5 Feedback and Choices Session

Ongoing Processes

Follow-up sessions activities to monitor effectiveness of interventions

Communication and consultation with stakeholders Continuous improvement process (review feedback enhance programs procedures processes)

13-step process Delivered 18 times Across Five countries

Slide 41

Some results 92 of the retrenchees were located

and registered 57 of those (1250) are economically

active 65 (1556) 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 42

Chicken raising business

Slide 43

Furniture making

waynewaynedunncom Slide 44

Unique training programs

waynewaynedunncom Slide 45

Rice farming in Mozambique

Slide 46

Spaza (convenience) shop

Slide 47

And the business value ishellip HIVAIDS 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 ndash 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

waynewaynedunncom Slide 48

ldquoThe project changed the social face of the South African Mining Industryrdquo

Kgosietsile Mogaki

South African Ministry of Minerals and Energy

waynewaynedunncom Slide 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 globally

Through 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 50

And then there is HIVAIDS

RSA ACCOUNTED FOR NEARLY 1 IN 8 OF THE NEW HIV INFECTIONS THAT OCCURRED WORLD WIDE IN 2000

HIV+ PREVALENCE RATE IN WOMEN ATTENDING ANTE-NATAL CLINICS INCREASED FROM 07 IN 1990 TO 248 IN 2001

AVERAGE OF 1700 NEW INFECTIONS PER DAY

LIFE EXPECTANCY WILL DECLINE FROM 65 TO 40 BY 2011

65

40

0

10

20

30

40

50

60

70

2001 2011

Life Expectancy

waynewaynedunncom Slide 51

HIVAIDS Facts (in 2000)

ESTIMATED THAT 12 OF TOTAL RSA POPULATION AND 25 OF MINEWORKERS ARE HIV+

ALREADY 400000 PEOPLE ARE AIDS SICK AND THIS WILL INCREASE TO 14 M BY 2010

YOUNG WOMEN PARTICULARLY VULNERABLE ndash 239 AGED BETWEEN 15 ndash 49 ALREADY INFECTED AND WILL RISE TO 297 BY 2007

AIDS ORPHANS AT PRESENT AMOUNT TO 660000+ AND WILL RISE TO 18M BY 2015

ACCUMULATIVE AIDS DEATHS WILL RISE TO 9M BY 2015

Slide 52

HIVAIDS Impact REDUCED ECONOMIC GROWTH RATE ndash 2010 GDP 20 below a non AIDS

scenario REDUCED POPULATION ndash RSA population 10M smaller than non AIDS scenario SKYROCKETING DEMANDS ON PUBLIC HEALTH SYSTEM - RADICALLY CHANGED PRIVATE SPENDING PATTERNS ndash to healthcare and

funeral costs IMPACT ON SOCIO-ECONOMIC STABILITY (orphans)

HIVAIDS 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 Africa today Nobody can afford to ignore it

Slide 53

HIVAIDS and Gold Mining

$10oz impact if nothing is done (5 of production costs) ~$3oz with maximum

intervention Impact on social and political

stability

Slide 54

HIVAIDS Programming Placer Dome program ndash

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 55

Minesite Program

TRAINING AND EDUCATION

STI amp TB TREATMENT

CONDOM DISTRIBUTION

PEER EDUCATION

VOLUNTARY COUNSELING AND TESTING (VCT)

WELLNESS PROGRAM

MEDICAL REPATRIATION

waynewaynedunncom Slide 56

Minesite Program

waynewaynedunncom Slide 57

Current Community Program

AWARENESS AND EDUCATION PROGRAMS

MOBILE CLINIC

CONDOM amp FEMIDOM DISTRIBUTION

PERIODIC PRESUMPTIVE TREATMENT (PPT)

TREATMENT FOR SEXUALLY TRANSMITTED INFECTIONS ( STI)

waynewaynedunncom Slide 58

COMMUNITY PROGRAM

Community Mobile Clinic

waynewaynedunncom Slide 59

And when HIV prevention doesnrsquot 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 60

Industry Home Based Care

TEBA INFRA-STRUCTURE

TRAINING OF CARE GIVERS

SUPPORT STRUCTURE ndash QUALIFIED STAFF

MONTHLY MEDICATION

WORK WITH OTHER STAKEHOLDERS (EG TRADITIONAL HEALERS)

WORLD BANK DEVELOPMENT INNOVATION AWARD

waynewaynedunncom Slide 61

Home Based Care

Slide 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

waynewaynedunncom Slide 63

Overview of Placer Dome AIDS Programming SOUTH DEEP Sustainable Development Department

bullVoluntary Counseling and testing HIV Negative bullContinue working

On Mine Program Community Program

Modified work program Farm bullAgricultural work Environmental

Medical repatriation

Home Based Care

Benefits Care Positive

HBC EC OPP

Back to work or Re skilled

Wellness Program

waynewaynedunncom Slide 64

But what happens to children and families when the breadwinner canrsquot

work

Slide 65

HIVAIDS and Rural Areas HIVAIDS 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

Slide 66

HIVAIDS 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

waynewaynedunncom

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 CSREthical

Project Award (2004) Numerous other awards Stanford Case Study

waynewaynedunncom Slide 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 69

Planned Program

Care Positive Integrate the Home Based Care

project with the Care process and launch as a fee for service based program to address the social and 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

Care Process

+

Home Based Care

=

Care Positive

waynewaynedunncom Slide 70

Care Positive Summary

waynewaynedunncom

Andhellip 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 $100000 and considerable reputational capital into them Industry went forward with modified HIVAIDS

programming but huge developmental impacts were lost

waynewaynedunncom Slide 72

MDG Impacts of Placer Dome in South Africa

1 Poverty and hunger 2 Some impact on primary education (School

feeding program) 3 Promote gender equality and empower women 4 Reduce child mortality 5 Improve maternal health 6 Combat HIVAIDS malaria and other diseass 7 Ensure environmental sustainability 8 Develop a global partnership for development

(Placer Dome CIDA Civil Society NGOs)

waynewaynedunncom

One thing leads to another

World Bank observed how Placer Domersquos leadership on HIVAIDS 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

waynewaynedunncom

PNG HIVAIDS Scoping mission to

determine what might be done and how Enthusiastic interest from

industry government multi-laterals (WHO UNAIDS World Banketc) ODA (AusAID) CIDA partnered with Place Dome to develop an

HIVAIDS strategy for PNG that integrated industry public sector civil society and international community

waynewaynedunncom

PNG Outcomes (or outputs ndash Irsquom never sure) Partnership with Mining

Industry Civil Society WHO UNAIDS UNDP World Bank PNG AIDS AusAID Oil Palm Industry etc National workshop on

HIVAIDS and publicprivate partnerships SouthSouth Collaboration

Industry government civil society international community study trip to South Africa

waynewaynedunncom

waynewaynedunncom

PNG AIDS mission to South Africa

waynewaynedunncom Slide 78

MDG Impacts of PNG HIVAIDS work

1 Poverty and hunger (nutritional supplements) 2 Some impact on primary education (peripheral) 3 Promote gender equality and empower women 4 Reduce child mortality 5 Improve maternal health 6 Combat HIVAIDS malaria and other diseass 7 Ensure environmental sustainability 8 Develop a global partnership for development

(Placer Dome CIDA Civil Society NGOs)

waynewaynedunncom

Eldorado Gold in Turkey

Major gold find in WestCentral Turkey No successful

mining project launched in decades Eurogold project

built launched and halted by community action in late 1990s ndash still mothballed

UsakKislidag Minesite

Eurogold site

waynewaynedunncom

Eldorado Gold in Turkey

Isolated rural area Nearly half of nearby

communities opposed to mine development Agriculture primary

economic activity in rural communities ndash smallmicro family farms

waynewaynedunncom

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

waynewaynedunncom

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 $075 to $1325 Opened second mine in Turkey

bull Able to deal with controversial watershed issues after relationship success in Usak

waynewaynedunncom Slide 83

MDG Impacts of Eldorado Gold

1 Poverty and hunger (minimal) 2 Some impact on primary education (peripheral) 3 Promote gender equality and empower women 4 Reduce child mortality 5 Improve maternal health 6 Combat HIVAIDS malaria and other diseass 7 Ensure environmental sustainability 8 Develop a global partnership for development

(Placer Dome CIDA Civil Society NGOs)

waynewaynedunncom

Underwater Logging in Ghana

waynewaynedunncom

Private Sector and International Development

Private sector especially resource extraction has a very mixed record bull Some horrendous disasters (Nigeria Warao Peoples in

Venezuela etc) bull Some great successes (Placer Dome Care project

mining and HIVAIDS 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

waynewaynedunncom

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

interestsobjectives overlap

waynewaynedunncom

SDCSR Implementation Challenges

more than a warm fuzzy issue Spending isnrsquot the answer

Plan

Framework

System

Results

Solving social problems Objectives

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Beyond Beads and Trinkets ndash BC Mining Review

A lsquohow torsquo article on mining and CSR

Wayne Dunn

BP Venezuela Indigenous Relations ndash Meeting the Challenge Responsibly and Sustainably

Situational assessment and strategic plan for BP Venezuela Authorized for release by BP

Wayne Dunn

Cameco Community Relations Report

Situational assessment and management strategy Authorized for release by Cameco

Wayne Dunn

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author Beyond Beads lsquon Trinkets A systematic approach to managing community relations

A conference paper describing a systematic approach to community relations management helping companies to methodically develop mutually beneficial relationships with local communities and interests (this is one of the earliest papers on this subject ndash written in 1998)

Wayne Dunn

The costs of conflict with local communities in the extractive industry

Analysis of the cost of community conflicts in the Extractive Sector

Rachel Davis and Daniel M Franks

Creating Shared Value

Harvard Business Review interview with Michael Porter

Video

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Social License Its all about value

Discussion on Social License and shareholder Value

Wayne Dunn

Its about Development Commentary on the CIDAMining Company issue

Wayne Dunn

Integrating corporate strategy and social responsibilitymdashmarket returns from stakeholder engagement

Discussion and analysis on market returns on stakeholder engagement

Witold J Henisz Sinziana Dorobantu and Lite J Narty

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

McGill Reporter ndash Four Burning Questions Wayne Dunn on CSR

Discussion on CSR Wayne Dunn

Miningrsquos contribution to sustainable development ndashan overview

Discussion paper prepared by the International Council on Mining and Metals

Millennium Development Goals

United Nations

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Mining and Agriculture Development

A short lsquohow torsquo guide for mining projects to engage with the local agriculture sector

Al Hingston

PDSA Social Value Brochure

Brochure on social value created by Placer Dome South Africa

Placer Dome

The Value of Social License

Opinion piece published in Northern Miner

Wayne Dunn

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Golden Opportunity When a Canadian multinational laid off hundreds of gold miners in South Africa it went many extra miles to help them get back on their feet

Stanford Business School Case Study on Placer Dome in South Africa

Wayne Dunn

The Changing Resource Development Paradigm Maximizing Sustainable Local Benefits from Resource Development

Strategic thought piece prepared for the government of British Columbia Canada

Wayne Dunn

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

The Disappearing Barriers Between Business And Non-profits Are Driving Innovation

Discussion paper

Katherine Pikus

When Condoms are not enough

World Bank staff magazine article on Placer Dome and South African mining industryrsquos work with HIVAIDS

Craig Andrews

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

MINING AND LOCAL ECONOMIC DEVELOPMENT IN PAPUA NEW GUINEA Preliminary Research on a Potential Pilot Project in Porgera and Lihir

Strategic research and action plan on mining and local economic development in Papua New Guinea prepared for the World Bank

Wayne Dunn

waynewaynedunncom

What we covered

We 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) Publicprivatecivil society collaboration ndash case study

and discussion (CIDA and Mining Companies) Open discussion on topics of interest (time permitting)

waynewaynedunncom

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 howwhy 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

waynewaynedunncom

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 howwhy 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

waynewaynedunncom

Alignment around Shared Value For shareholders For Communities For People For Governments

Private Sector Contributions To International Development

Remember

  • Private Sector Contributions To International Development
  • Session Objectives
  • Map of the morning How we will try to meet the objectives
  • Slide Number 4
  • What is ODA and FDI
  • What is ODA and FDI
  • Why discuss Private Sector Contribution anyway
  • FDIBusiness Outcomes
  • Intention and Strategy Make a Difference
  • Why does the private sector care
  • Community Consultation and Value
  • Itrsquos Real Money
  • CSR is a Value Strategy
  • Social License Failures cost
  • Why is CSR happening
  • The Mining World Has Changed
  • CSR is a complicated space
  • CSR amp Social License
  • Role of business is changing (click image to play video)
  • Case Studies (of successes)
  • Slide Number 21
  • Uranium Industry in Northern Saskatchewan
  • Challenging area
  • Challenging Times
  • Cameco in 1998
  • Cameco in Northern Saskatchewan (2010)
  • So how did Cameco and the industry do it
  • Placer Dome South Africa
  • Slide Number 29
  • Background
  • Background (cont)
  • Families amp Communities must benefit from mining
  • The Care Project
  • Implications
  • Slide Number 35
  • The Initial 4-Step Plan
  • Reality was different than we expected
  • Reality was different than expected
  • Meeting the challenges
  • TheProcess
  • Some results
  • Chicken raising business
  • Furniture making
  • Unique training programs
  • Rice farming in Mozambique
  • Spaza (convenience) shop
  • And the business value ishellip
  • Slide Number 48
  • What was in it for Placer Dome
  • And then there is HIVAIDS
  • HIVAIDS Facts (in 2000)
  • HIVAIDS Impact
  • HIVAIDS and Gold Mining
  • HIVAIDS Programming
  • Minesite Program
  • Minesite Program
  • Current Community Program
  • Community Mobile Clinic
  • And when HIV prevention doesnrsquot work
  • Industry Home Based Care
  • Home Based Care
  • INDUSTRY HOME BASED CARE RESULTS(Year One)
  • Overview of Placer Dome AIDS Programming
  • Slide Number 64
  • HIVAIDS and Rural Areas
  • HIVAIDS and Rural Areas
  • Reputational Results for Placer Dome
  • Where to next
  • Planned Program
  • Care Positive Summary
  • Andhellip
  • MDG Impacts of Placer Dome in South Africa
  • One thing leads to another
  • PNG HIVAIDS
  • PNG Outcomes (or outputs ndash Irsquom never sure)
  • Slide Number 76
  • PNG AIDS mission to South Africa
  • MDG Impacts of PNG HIVAIDS work
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • MDG Impacts of Eldorado Gold
  • Underwater Logging in Ghana
  • Private Sector and International Development
  • Group Exercise
  • Slide Number 87
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • What we covered
  • Session Objectives
  • Session Objectives
  • Remember
Page 14: Private Sector Contributions To International Development – McGill Executive Education Program Lecture

Social License Failures cost

Bougaineville (PNG)- corporate practices were directly implicated in provoking civil war allegedly cost Rio Tinto $3 billion (Stanford Univ study) Tambo Grande (Peru) OvacikEurogold (Turkey)

waynewaynedunncom

Globalized world is demanding more of businesshellip Global media ndash The CNNization of the world ndash remote local

issues direct to television screens Social Media ndash Youtube Facebook Twitter etc Everything is

Everywhere and Organizable Proliferation of NGOs and CBOs ndash direct well organized and

financed support to communities

Why is CSR happening

Internet and other communications innovations ndash direct communications from remote projects to worldwide audience

Global Democratization ndash increased attention to local issues

waynewaynedunncom

bull ldquoWe are determined to provide multi-skilling to workers and assist them to cope with retrenchments This is a must and not a choice for industryrdquo

bull ldquoIt 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 pastrdquo Hon Phumizile Mlambo-Ngcuka

South Africa Minister of Minerals and Energy

The Mining World Has Changed

waynewaynedunncom

CSR is a complicated space

135 Codes 929 Page Report And that was in Jan 2007

waynewaynedunncom

CSR amp 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

waynewaynedunncom

Role of business is changing (click image to play video)

Creating Shared Value - Harvard Business Review

waynewaynedunncom

Case Studies (of successes)

Cameco in Northern Saskatchewan ndash indigenous employment and development (Industry Social License) Placer Dome South Africa ndash community development and

womenrsquos empowerment HIVAIDS programming leadership Placer Dome in Papua New Guinea ndash leading public private

partnerships in HIVAIDS programming (and southsouth cooperation) Eldorado Gold in Turkey ndash supporting community priorities CSR Developments in Ghana ndash underwater logging and

social license

waynewaynedunncom

1 Eradicate extreme poverty and hunger 2 Achieve universal primary education 3 Promote gender equality and empower women 4 Reduce child mortality 5 Improve maternal health 6 Combat HIVAIDS malaria and other diseass 7 Ensure environmental sustainability 8 Develop a global partnership for development

waynewaynedunncom

Uranium Industry in Northern Saskatchewan Huge remote area (larger than all but five US States (Alaska Texas California Montana and New Mexico)

Waynersquos World

waynewaynedunncom

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

waynewaynedunncom

Challenging Times

Strong opposition to industry developing bull From Europe bull From within governing party

Industry had difficulties from all sides bull Local stakeholders didnrsquot have the capacity to engage

productively in the industry bull Early days of CSR (1980s) and companies largely didnrsquot

realize the importance of local engagement and value creation

waynewaynedunncom

Cameco in 1998

Camecorsquos approach has transformed the socio-economic well-being of Indigenous Peoples in Northern Saskatchewan

29 30

34

37 3739

42 42 43 44

20

25

30

35

40

45

50

1989 1990 1991 1992 1993 1994 1995 1996 1997 1998(Aug)

Perc

enta

ge o

f Tot

al W

orkf

orce

Cameco Aboriginal Employment(includes permanent contractor workforce)

waynewaynedunncom

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 $25 million to northern and aboriginal

initiatives for youth health and wellness education and literacy and culture and recreation Provided $100000 in scholarships to post-secondary

students

waynewaynedunncom

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 ndash NRT Trucking Skunk workssecret meetings Overcoming culture and practice barriers (drilling

underground mining etc) BHAGs Necessity

waynewaynedunncom Slide 28

Placer Dome South Africa

Case study of innovative developmental CSR Demonstrate application of key CSR principles

CSRSustainability Policy Strategic interventions vs shotgun approaches Impact metrics vs expense metrics Partnership strategies (financial operational technical) Leadership and leverage

Slide 29

Overview

bull Background ndash how did this get started

bull The Care Project ndashDeveloping and implementing the plan (challenges partners learnings) ndashBusiness value created

bull HIVAIDS ndash The Crisis and why does it matter ndash Programs and activities

Slide 30

Background 1990s saw massive changes in South

African mining industry ndash over 100000 jobs lost as the industry restructured 1999 ndash Placer Dome purchased a 50

interest in South Deep (WAL) a mine located just outside Johannesburg bull 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 31

Background (cont) In late 1999 after detailed study management

realized that economic reality dictated major restructuring at South Deep

13 of the South Deep workforce (over 2500) workers were retrenched bull 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 ndash that the commitment went

BEYOND THE PAYCHECK

waynewaynedunncom Slide 32

Families amp Communities must benefit from mining

Slide 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 HIVAIDS 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$36 million) budget was established

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

waynewaynedunncom Slide 35

The Mine

2560 Retrenchees bullMozambique bullLesotho bullSouth Africa bullSwaziland bullBotswana

How to successfully provide socio-economic support across remote rural regions of five countries

waynewaynedunncom Slide 36

The Initial 4-Step Plan 1 Consultations with retrenchees in their villages 2 Recruit (from amongst the retrenchees) a group

of 25-30 fieldworkers who would provide frontline support to the retrenchees and their families

3 Locate and register the retrenchees 4 Provide them with training and support to enable

them to become economically active

All of the above to be done in partnership with MDA TEBA and other partners

waynewaynedunncom Slide 37

Reality was different than we expected Retrenchees and their

Unions were still angry over the contested retrenchment Retrencheesrsquo homes were

difficult to locate and registration was often problematic

Consultations with retrenchees

Walking to a remote retrenchee homestead in Lesotho

Slide 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 HIVAIDS Fieldworker training programs Retrenchee education levels Centralized delivery didnrsquot work Project was under-financed We couldnrsquot do it in two years Etc

Slide 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

waynewaynedunncom Slide 40

The Process

Business Operation1 Ongoing availability of Technical Assistance and Business Counselling2 Ongoing faclitiation of skills training needs (ie business agriculture vocational etc)

Decision on Economic Option

Employment StreamEnterprise Stream

Evaluation of Micro Finance Application

Retrenchee is Re-Integrated and Economically Active

PersonalEconomic Plan

Prepared ampAssessed

PersonalEmployment Plan

Prepared

Business amp Financing Plan

Prepared

Employment Planning amp Preparation1 Identification of Employment Options2 Skills Training (VocationalAgricultural etc)3 Employment Counseling Placement (Job searchResume etc)

Business Planning amp Preparation1 Business Orientation a) Introduction to Business b) SkillsProduct Training2 Develop Draft Business Plan (to be reviewed with Counselor) (plan will contain market assessment financial operational and skills upgrading plan)3 Preparation of Micro-Finance Application

Orientation and Awareness Phase1 Registration amp Homestead Visits2 District Counselling Sessions3 Open DaysCareer Fairs4 Financial Lifes Skills Training5 Feedback and Choices Session

Ongoing Processes

Follow-up sessions activities to monitor effectiveness of interventions

Communication and consultation with stakeholders Continuous improvement process (review feedback enhance programs procedures processes)

13-step process Delivered 18 times Across Five countries

Slide 41

Some results 92 of the retrenchees were located

and registered 57 of those (1250) are economically

active 65 (1556) 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 42

Chicken raising business

Slide 43

Furniture making

waynewaynedunncom Slide 44

Unique training programs

waynewaynedunncom Slide 45

Rice farming in Mozambique

Slide 46

Spaza (convenience) shop

Slide 47

And the business value ishellip HIVAIDS 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 ndash 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

waynewaynedunncom Slide 48

ldquoThe project changed the social face of the South African Mining Industryrdquo

Kgosietsile Mogaki

South African Ministry of Minerals and Energy

waynewaynedunncom Slide 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 globally

Through 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 50

And then there is HIVAIDS

RSA ACCOUNTED FOR NEARLY 1 IN 8 OF THE NEW HIV INFECTIONS THAT OCCURRED WORLD WIDE IN 2000

HIV+ PREVALENCE RATE IN WOMEN ATTENDING ANTE-NATAL CLINICS INCREASED FROM 07 IN 1990 TO 248 IN 2001

AVERAGE OF 1700 NEW INFECTIONS PER DAY

LIFE EXPECTANCY WILL DECLINE FROM 65 TO 40 BY 2011

65

40

0

10

20

30

40

50

60

70

2001 2011

Life Expectancy

waynewaynedunncom Slide 51

HIVAIDS Facts (in 2000)

ESTIMATED THAT 12 OF TOTAL RSA POPULATION AND 25 OF MINEWORKERS ARE HIV+

ALREADY 400000 PEOPLE ARE AIDS SICK AND THIS WILL INCREASE TO 14 M BY 2010

YOUNG WOMEN PARTICULARLY VULNERABLE ndash 239 AGED BETWEEN 15 ndash 49 ALREADY INFECTED AND WILL RISE TO 297 BY 2007

AIDS ORPHANS AT PRESENT AMOUNT TO 660000+ AND WILL RISE TO 18M BY 2015

ACCUMULATIVE AIDS DEATHS WILL RISE TO 9M BY 2015

Slide 52

HIVAIDS Impact REDUCED ECONOMIC GROWTH RATE ndash 2010 GDP 20 below a non AIDS

scenario REDUCED POPULATION ndash RSA population 10M smaller than non AIDS scenario SKYROCKETING DEMANDS ON PUBLIC HEALTH SYSTEM - RADICALLY CHANGED PRIVATE SPENDING PATTERNS ndash to healthcare and

funeral costs IMPACT ON SOCIO-ECONOMIC STABILITY (orphans)

HIVAIDS 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 Africa today Nobody can afford to ignore it

Slide 53

HIVAIDS and Gold Mining

$10oz impact if nothing is done (5 of production costs) ~$3oz with maximum

intervention Impact on social and political

stability

Slide 54

HIVAIDS Programming Placer Dome program ndash

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 55

Minesite Program

TRAINING AND EDUCATION

STI amp TB TREATMENT

CONDOM DISTRIBUTION

PEER EDUCATION

VOLUNTARY COUNSELING AND TESTING (VCT)

WELLNESS PROGRAM

MEDICAL REPATRIATION

waynewaynedunncom Slide 56

Minesite Program

waynewaynedunncom Slide 57

Current Community Program

AWARENESS AND EDUCATION PROGRAMS

MOBILE CLINIC

CONDOM amp FEMIDOM DISTRIBUTION

PERIODIC PRESUMPTIVE TREATMENT (PPT)

TREATMENT FOR SEXUALLY TRANSMITTED INFECTIONS ( STI)

waynewaynedunncom Slide 58

COMMUNITY PROGRAM

Community Mobile Clinic

waynewaynedunncom Slide 59

And when HIV prevention doesnrsquot 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 60

Industry Home Based Care

TEBA INFRA-STRUCTURE

TRAINING OF CARE GIVERS

SUPPORT STRUCTURE ndash QUALIFIED STAFF

MONTHLY MEDICATION

WORK WITH OTHER STAKEHOLDERS (EG TRADITIONAL HEALERS)

WORLD BANK DEVELOPMENT INNOVATION AWARD

waynewaynedunncom Slide 61

Home Based Care

Slide 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

waynewaynedunncom Slide 63

Overview of Placer Dome AIDS Programming SOUTH DEEP Sustainable Development Department

bullVoluntary Counseling and testing HIV Negative bullContinue working

On Mine Program Community Program

Modified work program Farm bullAgricultural work Environmental

Medical repatriation

Home Based Care

Benefits Care Positive

HBC EC OPP

Back to work or Re skilled

Wellness Program

waynewaynedunncom Slide 64

But what happens to children and families when the breadwinner canrsquot

work

Slide 65

HIVAIDS and Rural Areas HIVAIDS 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

Slide 66

HIVAIDS 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

waynewaynedunncom

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 CSREthical

Project Award (2004) Numerous other awards Stanford Case Study

waynewaynedunncom Slide 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 69

Planned Program

Care Positive Integrate the Home Based Care

project with the Care process and launch as a fee for service based program to address the social and 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

Care Process

+

Home Based Care

=

Care Positive

waynewaynedunncom Slide 70

Care Positive Summary

waynewaynedunncom

Andhellip 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 $100000 and considerable reputational capital into them Industry went forward with modified HIVAIDS

programming but huge developmental impacts were lost

waynewaynedunncom Slide 72

MDG Impacts of Placer Dome in South Africa

1 Poverty and hunger 2 Some impact on primary education (School

feeding program) 3 Promote gender equality and empower women 4 Reduce child mortality 5 Improve maternal health 6 Combat HIVAIDS malaria and other diseass 7 Ensure environmental sustainability 8 Develop a global partnership for development

(Placer Dome CIDA Civil Society NGOs)

waynewaynedunncom

One thing leads to another

World Bank observed how Placer Domersquos leadership on HIVAIDS 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

waynewaynedunncom

PNG HIVAIDS Scoping mission to

determine what might be done and how Enthusiastic interest from

industry government multi-laterals (WHO UNAIDS World Banketc) ODA (AusAID) CIDA partnered with Place Dome to develop an

HIVAIDS strategy for PNG that integrated industry public sector civil society and international community

waynewaynedunncom

PNG Outcomes (or outputs ndash Irsquom never sure) Partnership with Mining

Industry Civil Society WHO UNAIDS UNDP World Bank PNG AIDS AusAID Oil Palm Industry etc National workshop on

HIVAIDS and publicprivate partnerships SouthSouth Collaboration

Industry government civil society international community study trip to South Africa

waynewaynedunncom

waynewaynedunncom

PNG AIDS mission to South Africa

waynewaynedunncom Slide 78

MDG Impacts of PNG HIVAIDS work

1 Poverty and hunger (nutritional supplements) 2 Some impact on primary education (peripheral) 3 Promote gender equality and empower women 4 Reduce child mortality 5 Improve maternal health 6 Combat HIVAIDS malaria and other diseass 7 Ensure environmental sustainability 8 Develop a global partnership for development

(Placer Dome CIDA Civil Society NGOs)

waynewaynedunncom

Eldorado Gold in Turkey

Major gold find in WestCentral Turkey No successful

mining project launched in decades Eurogold project

built launched and halted by community action in late 1990s ndash still mothballed

UsakKislidag Minesite

Eurogold site

waynewaynedunncom

Eldorado Gold in Turkey

Isolated rural area Nearly half of nearby

communities opposed to mine development Agriculture primary

economic activity in rural communities ndash smallmicro family farms

waynewaynedunncom

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

waynewaynedunncom

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 $075 to $1325 Opened second mine in Turkey

bull Able to deal with controversial watershed issues after relationship success in Usak

waynewaynedunncom Slide 83

MDG Impacts of Eldorado Gold

1 Poverty and hunger (minimal) 2 Some impact on primary education (peripheral) 3 Promote gender equality and empower women 4 Reduce child mortality 5 Improve maternal health 6 Combat HIVAIDS malaria and other diseass 7 Ensure environmental sustainability 8 Develop a global partnership for development

(Placer Dome CIDA Civil Society NGOs)

waynewaynedunncom

Underwater Logging in Ghana

waynewaynedunncom

Private Sector and International Development

Private sector especially resource extraction has a very mixed record bull Some horrendous disasters (Nigeria Warao Peoples in

Venezuela etc) bull Some great successes (Placer Dome Care project

mining and HIVAIDS 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

waynewaynedunncom

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

interestsobjectives overlap

waynewaynedunncom

SDCSR Implementation Challenges

more than a warm fuzzy issue Spending isnrsquot the answer

Plan

Framework

System

Results

Solving social problems Objectives

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Beyond Beads and Trinkets ndash BC Mining Review

A lsquohow torsquo article on mining and CSR

Wayne Dunn

BP Venezuela Indigenous Relations ndash Meeting the Challenge Responsibly and Sustainably

Situational assessment and strategic plan for BP Venezuela Authorized for release by BP

Wayne Dunn

Cameco Community Relations Report

Situational assessment and management strategy Authorized for release by Cameco

Wayne Dunn

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author Beyond Beads lsquon Trinkets A systematic approach to managing community relations

A conference paper describing a systematic approach to community relations management helping companies to methodically develop mutually beneficial relationships with local communities and interests (this is one of the earliest papers on this subject ndash written in 1998)

Wayne Dunn

The costs of conflict with local communities in the extractive industry

Analysis of the cost of community conflicts in the Extractive Sector

Rachel Davis and Daniel M Franks

Creating Shared Value

Harvard Business Review interview with Michael Porter

Video

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Social License Its all about value

Discussion on Social License and shareholder Value

Wayne Dunn

Its about Development Commentary on the CIDAMining Company issue

Wayne Dunn

Integrating corporate strategy and social responsibilitymdashmarket returns from stakeholder engagement

Discussion and analysis on market returns on stakeholder engagement

Witold J Henisz Sinziana Dorobantu and Lite J Narty

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

McGill Reporter ndash Four Burning Questions Wayne Dunn on CSR

Discussion on CSR Wayne Dunn

Miningrsquos contribution to sustainable development ndashan overview

Discussion paper prepared by the International Council on Mining and Metals

Millennium Development Goals

United Nations

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Mining and Agriculture Development

A short lsquohow torsquo guide for mining projects to engage with the local agriculture sector

Al Hingston

PDSA Social Value Brochure

Brochure on social value created by Placer Dome South Africa

Placer Dome

The Value of Social License

Opinion piece published in Northern Miner

Wayne Dunn

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Golden Opportunity When a Canadian multinational laid off hundreds of gold miners in South Africa it went many extra miles to help them get back on their feet

Stanford Business School Case Study on Placer Dome in South Africa

Wayne Dunn

The Changing Resource Development Paradigm Maximizing Sustainable Local Benefits from Resource Development

Strategic thought piece prepared for the government of British Columbia Canada

Wayne Dunn

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

The Disappearing Barriers Between Business And Non-profits Are Driving Innovation

Discussion paper

Katherine Pikus

When Condoms are not enough

World Bank staff magazine article on Placer Dome and South African mining industryrsquos work with HIVAIDS

Craig Andrews

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

MINING AND LOCAL ECONOMIC DEVELOPMENT IN PAPUA NEW GUINEA Preliminary Research on a Potential Pilot Project in Porgera and Lihir

Strategic research and action plan on mining and local economic development in Papua New Guinea prepared for the World Bank

Wayne Dunn

waynewaynedunncom

What we covered

We 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) Publicprivatecivil society collaboration ndash case study

and discussion (CIDA and Mining Companies) Open discussion on topics of interest (time permitting)

waynewaynedunncom

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 howwhy 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

waynewaynedunncom

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 howwhy 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

waynewaynedunncom

Alignment around Shared Value For shareholders For Communities For People For Governments

Private Sector Contributions To International Development

Remember

  • Private Sector Contributions To International Development
  • Session Objectives
  • Map of the morning How we will try to meet the objectives
  • Slide Number 4
  • What is ODA and FDI
  • What is ODA and FDI
  • Why discuss Private Sector Contribution anyway
  • FDIBusiness Outcomes
  • Intention and Strategy Make a Difference
  • Why does the private sector care
  • Community Consultation and Value
  • Itrsquos Real Money
  • CSR is a Value Strategy
  • Social License Failures cost
  • Why is CSR happening
  • The Mining World Has Changed
  • CSR is a complicated space
  • CSR amp Social License
  • Role of business is changing (click image to play video)
  • Case Studies (of successes)
  • Slide Number 21
  • Uranium Industry in Northern Saskatchewan
  • Challenging area
  • Challenging Times
  • Cameco in 1998
  • Cameco in Northern Saskatchewan (2010)
  • So how did Cameco and the industry do it
  • Placer Dome South Africa
  • Slide Number 29
  • Background
  • Background (cont)
  • Families amp Communities must benefit from mining
  • The Care Project
  • Implications
  • Slide Number 35
  • The Initial 4-Step Plan
  • Reality was different than we expected
  • Reality was different than expected
  • Meeting the challenges
  • TheProcess
  • Some results
  • Chicken raising business
  • Furniture making
  • Unique training programs
  • Rice farming in Mozambique
  • Spaza (convenience) shop
  • And the business value ishellip
  • Slide Number 48
  • What was in it for Placer Dome
  • And then there is HIVAIDS
  • HIVAIDS Facts (in 2000)
  • HIVAIDS Impact
  • HIVAIDS and Gold Mining
  • HIVAIDS Programming
  • Minesite Program
  • Minesite Program
  • Current Community Program
  • Community Mobile Clinic
  • And when HIV prevention doesnrsquot work
  • Industry Home Based Care
  • Home Based Care
  • INDUSTRY HOME BASED CARE RESULTS(Year One)
  • Overview of Placer Dome AIDS Programming
  • Slide Number 64
  • HIVAIDS and Rural Areas
  • HIVAIDS and Rural Areas
  • Reputational Results for Placer Dome
  • Where to next
  • Planned Program
  • Care Positive Summary
  • Andhellip
  • MDG Impacts of Placer Dome in South Africa
  • One thing leads to another
  • PNG HIVAIDS
  • PNG Outcomes (or outputs ndash Irsquom never sure)
  • Slide Number 76
  • PNG AIDS mission to South Africa
  • MDG Impacts of PNG HIVAIDS work
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • MDG Impacts of Eldorado Gold
  • Underwater Logging in Ghana
  • Private Sector and International Development
  • Group Exercise
  • Slide Number 87
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • What we covered
  • Session Objectives
  • Session Objectives
  • Remember
Page 15: Private Sector Contributions To International Development – McGill Executive Education Program Lecture

waynewaynedunncom

Globalized world is demanding more of businesshellip Global media ndash The CNNization of the world ndash remote local

issues direct to television screens Social Media ndash Youtube Facebook Twitter etc Everything is

Everywhere and Organizable Proliferation of NGOs and CBOs ndash direct well organized and

financed support to communities

Why is CSR happening

Internet and other communications innovations ndash direct communications from remote projects to worldwide audience

Global Democratization ndash increased attention to local issues

waynewaynedunncom

bull ldquoWe are determined to provide multi-skilling to workers and assist them to cope with retrenchments This is a must and not a choice for industryrdquo

bull ldquoIt 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 pastrdquo Hon Phumizile Mlambo-Ngcuka

South Africa Minister of Minerals and Energy

The Mining World Has Changed

waynewaynedunncom

CSR is a complicated space

135 Codes 929 Page Report And that was in Jan 2007

waynewaynedunncom

CSR amp 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

waynewaynedunncom

Role of business is changing (click image to play video)

Creating Shared Value - Harvard Business Review

waynewaynedunncom

Case Studies (of successes)

Cameco in Northern Saskatchewan ndash indigenous employment and development (Industry Social License) Placer Dome South Africa ndash community development and

womenrsquos empowerment HIVAIDS programming leadership Placer Dome in Papua New Guinea ndash leading public private

partnerships in HIVAIDS programming (and southsouth cooperation) Eldorado Gold in Turkey ndash supporting community priorities CSR Developments in Ghana ndash underwater logging and

social license

waynewaynedunncom

1 Eradicate extreme poverty and hunger 2 Achieve universal primary education 3 Promote gender equality and empower women 4 Reduce child mortality 5 Improve maternal health 6 Combat HIVAIDS malaria and other diseass 7 Ensure environmental sustainability 8 Develop a global partnership for development

waynewaynedunncom

Uranium Industry in Northern Saskatchewan Huge remote area (larger than all but five US States (Alaska Texas California Montana and New Mexico)

Waynersquos World

waynewaynedunncom

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

waynewaynedunncom

Challenging Times

Strong opposition to industry developing bull From Europe bull From within governing party

Industry had difficulties from all sides bull Local stakeholders didnrsquot have the capacity to engage

productively in the industry bull Early days of CSR (1980s) and companies largely didnrsquot

realize the importance of local engagement and value creation

waynewaynedunncom

Cameco in 1998

Camecorsquos approach has transformed the socio-economic well-being of Indigenous Peoples in Northern Saskatchewan

29 30

34

37 3739

42 42 43 44

20

25

30

35

40

45

50

1989 1990 1991 1992 1993 1994 1995 1996 1997 1998(Aug)

Perc

enta

ge o

f Tot

al W

orkf

orce

Cameco Aboriginal Employment(includes permanent contractor workforce)

waynewaynedunncom

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 $25 million to northern and aboriginal

initiatives for youth health and wellness education and literacy and culture and recreation Provided $100000 in scholarships to post-secondary

students

waynewaynedunncom

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 ndash NRT Trucking Skunk workssecret meetings Overcoming culture and practice barriers (drilling

underground mining etc) BHAGs Necessity

waynewaynedunncom Slide 28

Placer Dome South Africa

Case study of innovative developmental CSR Demonstrate application of key CSR principles

CSRSustainability Policy Strategic interventions vs shotgun approaches Impact metrics vs expense metrics Partnership strategies (financial operational technical) Leadership and leverage

Slide 29

Overview

bull Background ndash how did this get started

bull The Care Project ndashDeveloping and implementing the plan (challenges partners learnings) ndashBusiness value created

bull HIVAIDS ndash The Crisis and why does it matter ndash Programs and activities

Slide 30

Background 1990s saw massive changes in South

African mining industry ndash over 100000 jobs lost as the industry restructured 1999 ndash Placer Dome purchased a 50

interest in South Deep (WAL) a mine located just outside Johannesburg bull 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 31

Background (cont) In late 1999 after detailed study management

realized that economic reality dictated major restructuring at South Deep

13 of the South Deep workforce (over 2500) workers were retrenched bull 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 ndash that the commitment went

BEYOND THE PAYCHECK

waynewaynedunncom Slide 32

Families amp Communities must benefit from mining

Slide 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 HIVAIDS 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$36 million) budget was established

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

waynewaynedunncom Slide 35

The Mine

2560 Retrenchees bullMozambique bullLesotho bullSouth Africa bullSwaziland bullBotswana

How to successfully provide socio-economic support across remote rural regions of five countries

waynewaynedunncom Slide 36

The Initial 4-Step Plan 1 Consultations with retrenchees in their villages 2 Recruit (from amongst the retrenchees) a group

of 25-30 fieldworkers who would provide frontline support to the retrenchees and their families

3 Locate and register the retrenchees 4 Provide them with training and support to enable

them to become economically active

All of the above to be done in partnership with MDA TEBA and other partners

waynewaynedunncom Slide 37

Reality was different than we expected Retrenchees and their

Unions were still angry over the contested retrenchment Retrencheesrsquo homes were

difficult to locate and registration was often problematic

Consultations with retrenchees

Walking to a remote retrenchee homestead in Lesotho

Slide 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 HIVAIDS Fieldworker training programs Retrenchee education levels Centralized delivery didnrsquot work Project was under-financed We couldnrsquot do it in two years Etc

Slide 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

waynewaynedunncom Slide 40

The Process

Business Operation1 Ongoing availability of Technical Assistance and Business Counselling2 Ongoing faclitiation of skills training needs (ie business agriculture vocational etc)

Decision on Economic Option

Employment StreamEnterprise Stream

Evaluation of Micro Finance Application

Retrenchee is Re-Integrated and Economically Active

PersonalEconomic Plan

Prepared ampAssessed

PersonalEmployment Plan

Prepared

Business amp Financing Plan

Prepared

Employment Planning amp Preparation1 Identification of Employment Options2 Skills Training (VocationalAgricultural etc)3 Employment Counseling Placement (Job searchResume etc)

Business Planning amp Preparation1 Business Orientation a) Introduction to Business b) SkillsProduct Training2 Develop Draft Business Plan (to be reviewed with Counselor) (plan will contain market assessment financial operational and skills upgrading plan)3 Preparation of Micro-Finance Application

Orientation and Awareness Phase1 Registration amp Homestead Visits2 District Counselling Sessions3 Open DaysCareer Fairs4 Financial Lifes Skills Training5 Feedback and Choices Session

Ongoing Processes

Follow-up sessions activities to monitor effectiveness of interventions

Communication and consultation with stakeholders Continuous improvement process (review feedback enhance programs procedures processes)

13-step process Delivered 18 times Across Five countries

Slide 41

Some results 92 of the retrenchees were located

and registered 57 of those (1250) are economically

active 65 (1556) 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 42

Chicken raising business

Slide 43

Furniture making

waynewaynedunncom Slide 44

Unique training programs

waynewaynedunncom Slide 45

Rice farming in Mozambique

Slide 46

Spaza (convenience) shop

Slide 47

And the business value ishellip HIVAIDS 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 ndash 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

waynewaynedunncom Slide 48

ldquoThe project changed the social face of the South African Mining Industryrdquo

Kgosietsile Mogaki

South African Ministry of Minerals and Energy

waynewaynedunncom Slide 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 globally

Through 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 50

And then there is HIVAIDS

RSA ACCOUNTED FOR NEARLY 1 IN 8 OF THE NEW HIV INFECTIONS THAT OCCURRED WORLD WIDE IN 2000

HIV+ PREVALENCE RATE IN WOMEN ATTENDING ANTE-NATAL CLINICS INCREASED FROM 07 IN 1990 TO 248 IN 2001

AVERAGE OF 1700 NEW INFECTIONS PER DAY

LIFE EXPECTANCY WILL DECLINE FROM 65 TO 40 BY 2011

65

40

0

10

20

30

40

50

60

70

2001 2011

Life Expectancy

waynewaynedunncom Slide 51

HIVAIDS Facts (in 2000)

ESTIMATED THAT 12 OF TOTAL RSA POPULATION AND 25 OF MINEWORKERS ARE HIV+

ALREADY 400000 PEOPLE ARE AIDS SICK AND THIS WILL INCREASE TO 14 M BY 2010

YOUNG WOMEN PARTICULARLY VULNERABLE ndash 239 AGED BETWEEN 15 ndash 49 ALREADY INFECTED AND WILL RISE TO 297 BY 2007

AIDS ORPHANS AT PRESENT AMOUNT TO 660000+ AND WILL RISE TO 18M BY 2015

ACCUMULATIVE AIDS DEATHS WILL RISE TO 9M BY 2015

Slide 52

HIVAIDS Impact REDUCED ECONOMIC GROWTH RATE ndash 2010 GDP 20 below a non AIDS

scenario REDUCED POPULATION ndash RSA population 10M smaller than non AIDS scenario SKYROCKETING DEMANDS ON PUBLIC HEALTH SYSTEM - RADICALLY CHANGED PRIVATE SPENDING PATTERNS ndash to healthcare and

funeral costs IMPACT ON SOCIO-ECONOMIC STABILITY (orphans)

HIVAIDS 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 Africa today Nobody can afford to ignore it

Slide 53

HIVAIDS and Gold Mining

$10oz impact if nothing is done (5 of production costs) ~$3oz with maximum

intervention Impact on social and political

stability

Slide 54

HIVAIDS Programming Placer Dome program ndash

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 55

Minesite Program

TRAINING AND EDUCATION

STI amp TB TREATMENT

CONDOM DISTRIBUTION

PEER EDUCATION

VOLUNTARY COUNSELING AND TESTING (VCT)

WELLNESS PROGRAM

MEDICAL REPATRIATION

waynewaynedunncom Slide 56

Minesite Program

waynewaynedunncom Slide 57

Current Community Program

AWARENESS AND EDUCATION PROGRAMS

MOBILE CLINIC

CONDOM amp FEMIDOM DISTRIBUTION

PERIODIC PRESUMPTIVE TREATMENT (PPT)

TREATMENT FOR SEXUALLY TRANSMITTED INFECTIONS ( STI)

waynewaynedunncom Slide 58

COMMUNITY PROGRAM

Community Mobile Clinic

waynewaynedunncom Slide 59

And when HIV prevention doesnrsquot 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 60

Industry Home Based Care

TEBA INFRA-STRUCTURE

TRAINING OF CARE GIVERS

SUPPORT STRUCTURE ndash QUALIFIED STAFF

MONTHLY MEDICATION

WORK WITH OTHER STAKEHOLDERS (EG TRADITIONAL HEALERS)

WORLD BANK DEVELOPMENT INNOVATION AWARD

waynewaynedunncom Slide 61

Home Based Care

Slide 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

waynewaynedunncom Slide 63

Overview of Placer Dome AIDS Programming SOUTH DEEP Sustainable Development Department

bullVoluntary Counseling and testing HIV Negative bullContinue working

On Mine Program Community Program

Modified work program Farm bullAgricultural work Environmental

Medical repatriation

Home Based Care

Benefits Care Positive

HBC EC OPP

Back to work or Re skilled

Wellness Program

waynewaynedunncom Slide 64

But what happens to children and families when the breadwinner canrsquot

work

Slide 65

HIVAIDS and Rural Areas HIVAIDS 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

Slide 66

HIVAIDS 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

waynewaynedunncom

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 CSREthical

Project Award (2004) Numerous other awards Stanford Case Study

waynewaynedunncom Slide 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 69

Planned Program

Care Positive Integrate the Home Based Care

project with the Care process and launch as a fee for service based program to address the social and 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

Care Process

+

Home Based Care

=

Care Positive

waynewaynedunncom Slide 70

Care Positive Summary

waynewaynedunncom

Andhellip 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 $100000 and considerable reputational capital into them Industry went forward with modified HIVAIDS

programming but huge developmental impacts were lost

waynewaynedunncom Slide 72

MDG Impacts of Placer Dome in South Africa

1 Poverty and hunger 2 Some impact on primary education (School

feeding program) 3 Promote gender equality and empower women 4 Reduce child mortality 5 Improve maternal health 6 Combat HIVAIDS malaria and other diseass 7 Ensure environmental sustainability 8 Develop a global partnership for development

(Placer Dome CIDA Civil Society NGOs)

waynewaynedunncom

One thing leads to another

World Bank observed how Placer Domersquos leadership on HIVAIDS 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

waynewaynedunncom

PNG HIVAIDS Scoping mission to

determine what might be done and how Enthusiastic interest from

industry government multi-laterals (WHO UNAIDS World Banketc) ODA (AusAID) CIDA partnered with Place Dome to develop an

HIVAIDS strategy for PNG that integrated industry public sector civil society and international community

waynewaynedunncom

PNG Outcomes (or outputs ndash Irsquom never sure) Partnership with Mining

Industry Civil Society WHO UNAIDS UNDP World Bank PNG AIDS AusAID Oil Palm Industry etc National workshop on

HIVAIDS and publicprivate partnerships SouthSouth Collaboration

Industry government civil society international community study trip to South Africa

waynewaynedunncom

waynewaynedunncom

PNG AIDS mission to South Africa

waynewaynedunncom Slide 78

MDG Impacts of PNG HIVAIDS work

1 Poverty and hunger (nutritional supplements) 2 Some impact on primary education (peripheral) 3 Promote gender equality and empower women 4 Reduce child mortality 5 Improve maternal health 6 Combat HIVAIDS malaria and other diseass 7 Ensure environmental sustainability 8 Develop a global partnership for development

(Placer Dome CIDA Civil Society NGOs)

waynewaynedunncom

Eldorado Gold in Turkey

Major gold find in WestCentral Turkey No successful

mining project launched in decades Eurogold project

built launched and halted by community action in late 1990s ndash still mothballed

UsakKislidag Minesite

Eurogold site

waynewaynedunncom

Eldorado Gold in Turkey

Isolated rural area Nearly half of nearby

communities opposed to mine development Agriculture primary

economic activity in rural communities ndash smallmicro family farms

waynewaynedunncom

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

waynewaynedunncom

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 $075 to $1325 Opened second mine in Turkey

bull Able to deal with controversial watershed issues after relationship success in Usak

waynewaynedunncom Slide 83

MDG Impacts of Eldorado Gold

1 Poverty and hunger (minimal) 2 Some impact on primary education (peripheral) 3 Promote gender equality and empower women 4 Reduce child mortality 5 Improve maternal health 6 Combat HIVAIDS malaria and other diseass 7 Ensure environmental sustainability 8 Develop a global partnership for development

(Placer Dome CIDA Civil Society NGOs)

waynewaynedunncom

Underwater Logging in Ghana

waynewaynedunncom

Private Sector and International Development

Private sector especially resource extraction has a very mixed record bull Some horrendous disasters (Nigeria Warao Peoples in

Venezuela etc) bull Some great successes (Placer Dome Care project

mining and HIVAIDS 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

waynewaynedunncom

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

interestsobjectives overlap

waynewaynedunncom

SDCSR Implementation Challenges

more than a warm fuzzy issue Spending isnrsquot the answer

Plan

Framework

System

Results

Solving social problems Objectives

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Beyond Beads and Trinkets ndash BC Mining Review

A lsquohow torsquo article on mining and CSR

Wayne Dunn

BP Venezuela Indigenous Relations ndash Meeting the Challenge Responsibly and Sustainably

Situational assessment and strategic plan for BP Venezuela Authorized for release by BP

Wayne Dunn

Cameco Community Relations Report

Situational assessment and management strategy Authorized for release by Cameco

Wayne Dunn

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author Beyond Beads lsquon Trinkets A systematic approach to managing community relations

A conference paper describing a systematic approach to community relations management helping companies to methodically develop mutually beneficial relationships with local communities and interests (this is one of the earliest papers on this subject ndash written in 1998)

Wayne Dunn

The costs of conflict with local communities in the extractive industry

Analysis of the cost of community conflicts in the Extractive Sector

Rachel Davis and Daniel M Franks

Creating Shared Value

Harvard Business Review interview with Michael Porter

Video

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Social License Its all about value

Discussion on Social License and shareholder Value

Wayne Dunn

Its about Development Commentary on the CIDAMining Company issue

Wayne Dunn

Integrating corporate strategy and social responsibilitymdashmarket returns from stakeholder engagement

Discussion and analysis on market returns on stakeholder engagement

Witold J Henisz Sinziana Dorobantu and Lite J Narty

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

McGill Reporter ndash Four Burning Questions Wayne Dunn on CSR

Discussion on CSR Wayne Dunn

Miningrsquos contribution to sustainable development ndashan overview

Discussion paper prepared by the International Council on Mining and Metals

Millennium Development Goals

United Nations

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Mining and Agriculture Development

A short lsquohow torsquo guide for mining projects to engage with the local agriculture sector

Al Hingston

PDSA Social Value Brochure

Brochure on social value created by Placer Dome South Africa

Placer Dome

The Value of Social License

Opinion piece published in Northern Miner

Wayne Dunn

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Golden Opportunity When a Canadian multinational laid off hundreds of gold miners in South Africa it went many extra miles to help them get back on their feet

Stanford Business School Case Study on Placer Dome in South Africa

Wayne Dunn

The Changing Resource Development Paradigm Maximizing Sustainable Local Benefits from Resource Development

Strategic thought piece prepared for the government of British Columbia Canada

Wayne Dunn

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

The Disappearing Barriers Between Business And Non-profits Are Driving Innovation

Discussion paper

Katherine Pikus

When Condoms are not enough

World Bank staff magazine article on Placer Dome and South African mining industryrsquos work with HIVAIDS

Craig Andrews

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

MINING AND LOCAL ECONOMIC DEVELOPMENT IN PAPUA NEW GUINEA Preliminary Research on a Potential Pilot Project in Porgera and Lihir

Strategic research and action plan on mining and local economic development in Papua New Guinea prepared for the World Bank

Wayne Dunn

waynewaynedunncom

What we covered

We 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) Publicprivatecivil society collaboration ndash case study

and discussion (CIDA and Mining Companies) Open discussion on topics of interest (time permitting)

waynewaynedunncom

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 howwhy 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

waynewaynedunncom

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 howwhy 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

waynewaynedunncom

Alignment around Shared Value For shareholders For Communities For People For Governments

Private Sector Contributions To International Development

Remember

  • Private Sector Contributions To International Development
  • Session Objectives
  • Map of the morning How we will try to meet the objectives
  • Slide Number 4
  • What is ODA and FDI
  • What is ODA and FDI
  • Why discuss Private Sector Contribution anyway
  • FDIBusiness Outcomes
  • Intention and Strategy Make a Difference
  • Why does the private sector care
  • Community Consultation and Value
  • Itrsquos Real Money
  • CSR is a Value Strategy
  • Social License Failures cost
  • Why is CSR happening
  • The Mining World Has Changed
  • CSR is a complicated space
  • CSR amp Social License
  • Role of business is changing (click image to play video)
  • Case Studies (of successes)
  • Slide Number 21
  • Uranium Industry in Northern Saskatchewan
  • Challenging area
  • Challenging Times
  • Cameco in 1998
  • Cameco in Northern Saskatchewan (2010)
  • So how did Cameco and the industry do it
  • Placer Dome South Africa
  • Slide Number 29
  • Background
  • Background (cont)
  • Families amp Communities must benefit from mining
  • The Care Project
  • Implications
  • Slide Number 35
  • The Initial 4-Step Plan
  • Reality was different than we expected
  • Reality was different than expected
  • Meeting the challenges
  • TheProcess
  • Some results
  • Chicken raising business
  • Furniture making
  • Unique training programs
  • Rice farming in Mozambique
  • Spaza (convenience) shop
  • And the business value ishellip
  • Slide Number 48
  • What was in it for Placer Dome
  • And then there is HIVAIDS
  • HIVAIDS Facts (in 2000)
  • HIVAIDS Impact
  • HIVAIDS and Gold Mining
  • HIVAIDS Programming
  • Minesite Program
  • Minesite Program
  • Current Community Program
  • Community Mobile Clinic
  • And when HIV prevention doesnrsquot work
  • Industry Home Based Care
  • Home Based Care
  • INDUSTRY HOME BASED CARE RESULTS(Year One)
  • Overview of Placer Dome AIDS Programming
  • Slide Number 64
  • HIVAIDS and Rural Areas
  • HIVAIDS and Rural Areas
  • Reputational Results for Placer Dome
  • Where to next
  • Planned Program
  • Care Positive Summary
  • Andhellip
  • MDG Impacts of Placer Dome in South Africa
  • One thing leads to another
  • PNG HIVAIDS
  • PNG Outcomes (or outputs ndash Irsquom never sure)
  • Slide Number 76
  • PNG AIDS mission to South Africa
  • MDG Impacts of PNG HIVAIDS work
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • MDG Impacts of Eldorado Gold
  • Underwater Logging in Ghana
  • Private Sector and International Development
  • Group Exercise
  • Slide Number 87
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • What we covered
  • Session Objectives
  • Session Objectives
  • Remember
Page 16: Private Sector Contributions To International Development – McGill Executive Education Program Lecture

waynewaynedunncom

bull ldquoWe are determined to provide multi-skilling to workers and assist them to cope with retrenchments This is a must and not a choice for industryrdquo

bull ldquoIt 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 pastrdquo Hon Phumizile Mlambo-Ngcuka

South Africa Minister of Minerals and Energy

The Mining World Has Changed

waynewaynedunncom

CSR is a complicated space

135 Codes 929 Page Report And that was in Jan 2007

waynewaynedunncom

CSR amp 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

waynewaynedunncom

Role of business is changing (click image to play video)

Creating Shared Value - Harvard Business Review

waynewaynedunncom

Case Studies (of successes)

Cameco in Northern Saskatchewan ndash indigenous employment and development (Industry Social License) Placer Dome South Africa ndash community development and

womenrsquos empowerment HIVAIDS programming leadership Placer Dome in Papua New Guinea ndash leading public private

partnerships in HIVAIDS programming (and southsouth cooperation) Eldorado Gold in Turkey ndash supporting community priorities CSR Developments in Ghana ndash underwater logging and

social license

waynewaynedunncom

1 Eradicate extreme poverty and hunger 2 Achieve universal primary education 3 Promote gender equality and empower women 4 Reduce child mortality 5 Improve maternal health 6 Combat HIVAIDS malaria and other diseass 7 Ensure environmental sustainability 8 Develop a global partnership for development

waynewaynedunncom

Uranium Industry in Northern Saskatchewan Huge remote area (larger than all but five US States (Alaska Texas California Montana and New Mexico)

Waynersquos World

waynewaynedunncom

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

waynewaynedunncom

Challenging Times

Strong opposition to industry developing bull From Europe bull From within governing party

Industry had difficulties from all sides bull Local stakeholders didnrsquot have the capacity to engage

productively in the industry bull Early days of CSR (1980s) and companies largely didnrsquot

realize the importance of local engagement and value creation

waynewaynedunncom

Cameco in 1998

Camecorsquos approach has transformed the socio-economic well-being of Indigenous Peoples in Northern Saskatchewan

29 30

34

37 3739

42 42 43 44

20

25

30

35

40

45

50

1989 1990 1991 1992 1993 1994 1995 1996 1997 1998(Aug)

Perc

enta

ge o

f Tot

al W

orkf

orce

Cameco Aboriginal Employment(includes permanent contractor workforce)

waynewaynedunncom

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 $25 million to northern and aboriginal

initiatives for youth health and wellness education and literacy and culture and recreation Provided $100000 in scholarships to post-secondary

students

waynewaynedunncom

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 ndash NRT Trucking Skunk workssecret meetings Overcoming culture and practice barriers (drilling

underground mining etc) BHAGs Necessity

waynewaynedunncom Slide 28

Placer Dome South Africa

Case study of innovative developmental CSR Demonstrate application of key CSR principles

CSRSustainability Policy Strategic interventions vs shotgun approaches Impact metrics vs expense metrics Partnership strategies (financial operational technical) Leadership and leverage

Slide 29

Overview

bull Background ndash how did this get started

bull The Care Project ndashDeveloping and implementing the plan (challenges partners learnings) ndashBusiness value created

bull HIVAIDS ndash The Crisis and why does it matter ndash Programs and activities

Slide 30

Background 1990s saw massive changes in South

African mining industry ndash over 100000 jobs lost as the industry restructured 1999 ndash Placer Dome purchased a 50

interest in South Deep (WAL) a mine located just outside Johannesburg bull 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 31

Background (cont) In late 1999 after detailed study management

realized that economic reality dictated major restructuring at South Deep

13 of the South Deep workforce (over 2500) workers were retrenched bull 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 ndash that the commitment went

BEYOND THE PAYCHECK

waynewaynedunncom Slide 32

Families amp Communities must benefit from mining

Slide 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 HIVAIDS 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$36 million) budget was established

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

waynewaynedunncom Slide 35

The Mine

2560 Retrenchees bullMozambique bullLesotho bullSouth Africa bullSwaziland bullBotswana

How to successfully provide socio-economic support across remote rural regions of five countries

waynewaynedunncom Slide 36

The Initial 4-Step Plan 1 Consultations with retrenchees in their villages 2 Recruit (from amongst the retrenchees) a group

of 25-30 fieldworkers who would provide frontline support to the retrenchees and their families

3 Locate and register the retrenchees 4 Provide them with training and support to enable

them to become economically active

All of the above to be done in partnership with MDA TEBA and other partners

waynewaynedunncom Slide 37

Reality was different than we expected Retrenchees and their

Unions were still angry over the contested retrenchment Retrencheesrsquo homes were

difficult to locate and registration was often problematic

Consultations with retrenchees

Walking to a remote retrenchee homestead in Lesotho

Slide 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 HIVAIDS Fieldworker training programs Retrenchee education levels Centralized delivery didnrsquot work Project was under-financed We couldnrsquot do it in two years Etc

Slide 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

waynewaynedunncom Slide 40

The Process

Business Operation1 Ongoing availability of Technical Assistance and Business Counselling2 Ongoing faclitiation of skills training needs (ie business agriculture vocational etc)

Decision on Economic Option

Employment StreamEnterprise Stream

Evaluation of Micro Finance Application

Retrenchee is Re-Integrated and Economically Active

PersonalEconomic Plan

Prepared ampAssessed

PersonalEmployment Plan

Prepared

Business amp Financing Plan

Prepared

Employment Planning amp Preparation1 Identification of Employment Options2 Skills Training (VocationalAgricultural etc)3 Employment Counseling Placement (Job searchResume etc)

Business Planning amp Preparation1 Business Orientation a) Introduction to Business b) SkillsProduct Training2 Develop Draft Business Plan (to be reviewed with Counselor) (plan will contain market assessment financial operational and skills upgrading plan)3 Preparation of Micro-Finance Application

Orientation and Awareness Phase1 Registration amp Homestead Visits2 District Counselling Sessions3 Open DaysCareer Fairs4 Financial Lifes Skills Training5 Feedback and Choices Session

Ongoing Processes

Follow-up sessions activities to monitor effectiveness of interventions

Communication and consultation with stakeholders Continuous improvement process (review feedback enhance programs procedures processes)

13-step process Delivered 18 times Across Five countries

Slide 41

Some results 92 of the retrenchees were located

and registered 57 of those (1250) are economically

active 65 (1556) 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 42

Chicken raising business

Slide 43

Furniture making

waynewaynedunncom Slide 44

Unique training programs

waynewaynedunncom Slide 45

Rice farming in Mozambique

Slide 46

Spaza (convenience) shop

Slide 47

And the business value ishellip HIVAIDS 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 ndash 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

waynewaynedunncom Slide 48

ldquoThe project changed the social face of the South African Mining Industryrdquo

Kgosietsile Mogaki

South African Ministry of Minerals and Energy

waynewaynedunncom Slide 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 globally

Through 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 50

And then there is HIVAIDS

RSA ACCOUNTED FOR NEARLY 1 IN 8 OF THE NEW HIV INFECTIONS THAT OCCURRED WORLD WIDE IN 2000

HIV+ PREVALENCE RATE IN WOMEN ATTENDING ANTE-NATAL CLINICS INCREASED FROM 07 IN 1990 TO 248 IN 2001

AVERAGE OF 1700 NEW INFECTIONS PER DAY

LIFE EXPECTANCY WILL DECLINE FROM 65 TO 40 BY 2011

65

40

0

10

20

30

40

50

60

70

2001 2011

Life Expectancy

waynewaynedunncom Slide 51

HIVAIDS Facts (in 2000)

ESTIMATED THAT 12 OF TOTAL RSA POPULATION AND 25 OF MINEWORKERS ARE HIV+

ALREADY 400000 PEOPLE ARE AIDS SICK AND THIS WILL INCREASE TO 14 M BY 2010

YOUNG WOMEN PARTICULARLY VULNERABLE ndash 239 AGED BETWEEN 15 ndash 49 ALREADY INFECTED AND WILL RISE TO 297 BY 2007

AIDS ORPHANS AT PRESENT AMOUNT TO 660000+ AND WILL RISE TO 18M BY 2015

ACCUMULATIVE AIDS DEATHS WILL RISE TO 9M BY 2015

Slide 52

HIVAIDS Impact REDUCED ECONOMIC GROWTH RATE ndash 2010 GDP 20 below a non AIDS

scenario REDUCED POPULATION ndash RSA population 10M smaller than non AIDS scenario SKYROCKETING DEMANDS ON PUBLIC HEALTH SYSTEM - RADICALLY CHANGED PRIVATE SPENDING PATTERNS ndash to healthcare and

funeral costs IMPACT ON SOCIO-ECONOMIC STABILITY (orphans)

HIVAIDS 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 Africa today Nobody can afford to ignore it

Slide 53

HIVAIDS and Gold Mining

$10oz impact if nothing is done (5 of production costs) ~$3oz with maximum

intervention Impact on social and political

stability

Slide 54

HIVAIDS Programming Placer Dome program ndash

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 55

Minesite Program

TRAINING AND EDUCATION

STI amp TB TREATMENT

CONDOM DISTRIBUTION

PEER EDUCATION

VOLUNTARY COUNSELING AND TESTING (VCT)

WELLNESS PROGRAM

MEDICAL REPATRIATION

waynewaynedunncom Slide 56

Minesite Program

waynewaynedunncom Slide 57

Current Community Program

AWARENESS AND EDUCATION PROGRAMS

MOBILE CLINIC

CONDOM amp FEMIDOM DISTRIBUTION

PERIODIC PRESUMPTIVE TREATMENT (PPT)

TREATMENT FOR SEXUALLY TRANSMITTED INFECTIONS ( STI)

waynewaynedunncom Slide 58

COMMUNITY PROGRAM

Community Mobile Clinic

waynewaynedunncom Slide 59

And when HIV prevention doesnrsquot 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 60

Industry Home Based Care

TEBA INFRA-STRUCTURE

TRAINING OF CARE GIVERS

SUPPORT STRUCTURE ndash QUALIFIED STAFF

MONTHLY MEDICATION

WORK WITH OTHER STAKEHOLDERS (EG TRADITIONAL HEALERS)

WORLD BANK DEVELOPMENT INNOVATION AWARD

waynewaynedunncom Slide 61

Home Based Care

Slide 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

waynewaynedunncom Slide 63

Overview of Placer Dome AIDS Programming SOUTH DEEP Sustainable Development Department

bullVoluntary Counseling and testing HIV Negative bullContinue working

On Mine Program Community Program

Modified work program Farm bullAgricultural work Environmental

Medical repatriation

Home Based Care

Benefits Care Positive

HBC EC OPP

Back to work or Re skilled

Wellness Program

waynewaynedunncom Slide 64

But what happens to children and families when the breadwinner canrsquot

work

Slide 65

HIVAIDS and Rural Areas HIVAIDS 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

Slide 66

HIVAIDS 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

waynewaynedunncom

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 CSREthical

Project Award (2004) Numerous other awards Stanford Case Study

waynewaynedunncom Slide 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 69

Planned Program

Care Positive Integrate the Home Based Care

project with the Care process and launch as a fee for service based program to address the social and 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

Care Process

+

Home Based Care

=

Care Positive

waynewaynedunncom Slide 70

Care Positive Summary

waynewaynedunncom

Andhellip 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 $100000 and considerable reputational capital into them Industry went forward with modified HIVAIDS

programming but huge developmental impacts were lost

waynewaynedunncom Slide 72

MDG Impacts of Placer Dome in South Africa

1 Poverty and hunger 2 Some impact on primary education (School

feeding program) 3 Promote gender equality and empower women 4 Reduce child mortality 5 Improve maternal health 6 Combat HIVAIDS malaria and other diseass 7 Ensure environmental sustainability 8 Develop a global partnership for development

(Placer Dome CIDA Civil Society NGOs)

waynewaynedunncom

One thing leads to another

World Bank observed how Placer Domersquos leadership on HIVAIDS 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

waynewaynedunncom

PNG HIVAIDS Scoping mission to

determine what might be done and how Enthusiastic interest from

industry government multi-laterals (WHO UNAIDS World Banketc) ODA (AusAID) CIDA partnered with Place Dome to develop an

HIVAIDS strategy for PNG that integrated industry public sector civil society and international community

waynewaynedunncom

PNG Outcomes (or outputs ndash Irsquom never sure) Partnership with Mining

Industry Civil Society WHO UNAIDS UNDP World Bank PNG AIDS AusAID Oil Palm Industry etc National workshop on

HIVAIDS and publicprivate partnerships SouthSouth Collaboration

Industry government civil society international community study trip to South Africa

waynewaynedunncom

waynewaynedunncom

PNG AIDS mission to South Africa

waynewaynedunncom Slide 78

MDG Impacts of PNG HIVAIDS work

1 Poverty and hunger (nutritional supplements) 2 Some impact on primary education (peripheral) 3 Promote gender equality and empower women 4 Reduce child mortality 5 Improve maternal health 6 Combat HIVAIDS malaria and other diseass 7 Ensure environmental sustainability 8 Develop a global partnership for development

(Placer Dome CIDA Civil Society NGOs)

waynewaynedunncom

Eldorado Gold in Turkey

Major gold find in WestCentral Turkey No successful

mining project launched in decades Eurogold project

built launched and halted by community action in late 1990s ndash still mothballed

UsakKislidag Minesite

Eurogold site

waynewaynedunncom

Eldorado Gold in Turkey

Isolated rural area Nearly half of nearby

communities opposed to mine development Agriculture primary

economic activity in rural communities ndash smallmicro family farms

waynewaynedunncom

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

waynewaynedunncom

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 $075 to $1325 Opened second mine in Turkey

bull Able to deal with controversial watershed issues after relationship success in Usak

waynewaynedunncom Slide 83

MDG Impacts of Eldorado Gold

1 Poverty and hunger (minimal) 2 Some impact on primary education (peripheral) 3 Promote gender equality and empower women 4 Reduce child mortality 5 Improve maternal health 6 Combat HIVAIDS malaria and other diseass 7 Ensure environmental sustainability 8 Develop a global partnership for development

(Placer Dome CIDA Civil Society NGOs)

waynewaynedunncom

Underwater Logging in Ghana

waynewaynedunncom

Private Sector and International Development

Private sector especially resource extraction has a very mixed record bull Some horrendous disasters (Nigeria Warao Peoples in

Venezuela etc) bull Some great successes (Placer Dome Care project

mining and HIVAIDS 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

waynewaynedunncom

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

interestsobjectives overlap

waynewaynedunncom

SDCSR Implementation Challenges

more than a warm fuzzy issue Spending isnrsquot the answer

Plan

Framework

System

Results

Solving social problems Objectives

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Beyond Beads and Trinkets ndash BC Mining Review

A lsquohow torsquo article on mining and CSR

Wayne Dunn

BP Venezuela Indigenous Relations ndash Meeting the Challenge Responsibly and Sustainably

Situational assessment and strategic plan for BP Venezuela Authorized for release by BP

Wayne Dunn

Cameco Community Relations Report

Situational assessment and management strategy Authorized for release by Cameco

Wayne Dunn

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author Beyond Beads lsquon Trinkets A systematic approach to managing community relations

A conference paper describing a systematic approach to community relations management helping companies to methodically develop mutually beneficial relationships with local communities and interests (this is one of the earliest papers on this subject ndash written in 1998)

Wayne Dunn

The costs of conflict with local communities in the extractive industry

Analysis of the cost of community conflicts in the Extractive Sector

Rachel Davis and Daniel M Franks

Creating Shared Value

Harvard Business Review interview with Michael Porter

Video

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Social License Its all about value

Discussion on Social License and shareholder Value

Wayne Dunn

Its about Development Commentary on the CIDAMining Company issue

Wayne Dunn

Integrating corporate strategy and social responsibilitymdashmarket returns from stakeholder engagement

Discussion and analysis on market returns on stakeholder engagement

Witold J Henisz Sinziana Dorobantu and Lite J Narty

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

McGill Reporter ndash Four Burning Questions Wayne Dunn on CSR

Discussion on CSR Wayne Dunn

Miningrsquos contribution to sustainable development ndashan overview

Discussion paper prepared by the International Council on Mining and Metals

Millennium Development Goals

United Nations

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Mining and Agriculture Development

A short lsquohow torsquo guide for mining projects to engage with the local agriculture sector

Al Hingston

PDSA Social Value Brochure

Brochure on social value created by Placer Dome South Africa

Placer Dome

The Value of Social License

Opinion piece published in Northern Miner

Wayne Dunn

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Golden Opportunity When a Canadian multinational laid off hundreds of gold miners in South Africa it went many extra miles to help them get back on their feet

Stanford Business School Case Study on Placer Dome in South Africa

Wayne Dunn

The Changing Resource Development Paradigm Maximizing Sustainable Local Benefits from Resource Development

Strategic thought piece prepared for the government of British Columbia Canada

Wayne Dunn

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

The Disappearing Barriers Between Business And Non-profits Are Driving Innovation

Discussion paper

Katherine Pikus

When Condoms are not enough

World Bank staff magazine article on Placer Dome and South African mining industryrsquos work with HIVAIDS

Craig Andrews

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

MINING AND LOCAL ECONOMIC DEVELOPMENT IN PAPUA NEW GUINEA Preliminary Research on a Potential Pilot Project in Porgera and Lihir

Strategic research and action plan on mining and local economic development in Papua New Guinea prepared for the World Bank

Wayne Dunn

waynewaynedunncom

What we covered

We 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) Publicprivatecivil society collaboration ndash case study

and discussion (CIDA and Mining Companies) Open discussion on topics of interest (time permitting)

waynewaynedunncom

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 howwhy 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

waynewaynedunncom

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 howwhy 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

waynewaynedunncom

Alignment around Shared Value For shareholders For Communities For People For Governments

Private Sector Contributions To International Development

Remember

  • Private Sector Contributions To International Development
  • Session Objectives
  • Map of the morning How we will try to meet the objectives
  • Slide Number 4
  • What is ODA and FDI
  • What is ODA and FDI
  • Why discuss Private Sector Contribution anyway
  • FDIBusiness Outcomes
  • Intention and Strategy Make a Difference
  • Why does the private sector care
  • Community Consultation and Value
  • Itrsquos Real Money
  • CSR is a Value Strategy
  • Social License Failures cost
  • Why is CSR happening
  • The Mining World Has Changed
  • CSR is a complicated space
  • CSR amp Social License
  • Role of business is changing (click image to play video)
  • Case Studies (of successes)
  • Slide Number 21
  • Uranium Industry in Northern Saskatchewan
  • Challenging area
  • Challenging Times
  • Cameco in 1998
  • Cameco in Northern Saskatchewan (2010)
  • So how did Cameco and the industry do it
  • Placer Dome South Africa
  • Slide Number 29
  • Background
  • Background (cont)
  • Families amp Communities must benefit from mining
  • The Care Project
  • Implications
  • Slide Number 35
  • The Initial 4-Step Plan
  • Reality was different than we expected
  • Reality was different than expected
  • Meeting the challenges
  • TheProcess
  • Some results
  • Chicken raising business
  • Furniture making
  • Unique training programs
  • Rice farming in Mozambique
  • Spaza (convenience) shop
  • And the business value ishellip
  • Slide Number 48
  • What was in it for Placer Dome
  • And then there is HIVAIDS
  • HIVAIDS Facts (in 2000)
  • HIVAIDS Impact
  • HIVAIDS and Gold Mining
  • HIVAIDS Programming
  • Minesite Program
  • Minesite Program
  • Current Community Program
  • Community Mobile Clinic
  • And when HIV prevention doesnrsquot work
  • Industry Home Based Care
  • Home Based Care
  • INDUSTRY HOME BASED CARE RESULTS(Year One)
  • Overview of Placer Dome AIDS Programming
  • Slide Number 64
  • HIVAIDS and Rural Areas
  • HIVAIDS and Rural Areas
  • Reputational Results for Placer Dome
  • Where to next
  • Planned Program
  • Care Positive Summary
  • Andhellip
  • MDG Impacts of Placer Dome in South Africa
  • One thing leads to another
  • PNG HIVAIDS
  • PNG Outcomes (or outputs ndash Irsquom never sure)
  • Slide Number 76
  • PNG AIDS mission to South Africa
  • MDG Impacts of PNG HIVAIDS work
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • MDG Impacts of Eldorado Gold
  • Underwater Logging in Ghana
  • Private Sector and International Development
  • Group Exercise
  • Slide Number 87
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • What we covered
  • Session Objectives
  • Session Objectives
  • Remember
Page 17: Private Sector Contributions To International Development – McGill Executive Education Program Lecture

waynewaynedunncom

CSR is a complicated space

135 Codes 929 Page Report And that was in Jan 2007

waynewaynedunncom

CSR amp 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

waynewaynedunncom

Role of business is changing (click image to play video)

Creating Shared Value - Harvard Business Review

waynewaynedunncom

Case Studies (of successes)

Cameco in Northern Saskatchewan ndash indigenous employment and development (Industry Social License) Placer Dome South Africa ndash community development and

womenrsquos empowerment HIVAIDS programming leadership Placer Dome in Papua New Guinea ndash leading public private

partnerships in HIVAIDS programming (and southsouth cooperation) Eldorado Gold in Turkey ndash supporting community priorities CSR Developments in Ghana ndash underwater logging and

social license

waynewaynedunncom

1 Eradicate extreme poverty and hunger 2 Achieve universal primary education 3 Promote gender equality and empower women 4 Reduce child mortality 5 Improve maternal health 6 Combat HIVAIDS malaria and other diseass 7 Ensure environmental sustainability 8 Develop a global partnership for development

waynewaynedunncom

Uranium Industry in Northern Saskatchewan Huge remote area (larger than all but five US States (Alaska Texas California Montana and New Mexico)

Waynersquos World

waynewaynedunncom

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

waynewaynedunncom

Challenging Times

Strong opposition to industry developing bull From Europe bull From within governing party

Industry had difficulties from all sides bull Local stakeholders didnrsquot have the capacity to engage

productively in the industry bull Early days of CSR (1980s) and companies largely didnrsquot

realize the importance of local engagement and value creation

waynewaynedunncom

Cameco in 1998

Camecorsquos approach has transformed the socio-economic well-being of Indigenous Peoples in Northern Saskatchewan

29 30

34

37 3739

42 42 43 44

20

25

30

35

40

45

50

1989 1990 1991 1992 1993 1994 1995 1996 1997 1998(Aug)

Perc

enta

ge o

f Tot

al W

orkf

orce

Cameco Aboriginal Employment(includes permanent contractor workforce)

waynewaynedunncom

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 $25 million to northern and aboriginal

initiatives for youth health and wellness education and literacy and culture and recreation Provided $100000 in scholarships to post-secondary

students

waynewaynedunncom

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 ndash NRT Trucking Skunk workssecret meetings Overcoming culture and practice barriers (drilling

underground mining etc) BHAGs Necessity

waynewaynedunncom Slide 28

Placer Dome South Africa

Case study of innovative developmental CSR Demonstrate application of key CSR principles

CSRSustainability Policy Strategic interventions vs shotgun approaches Impact metrics vs expense metrics Partnership strategies (financial operational technical) Leadership and leverage

Slide 29

Overview

bull Background ndash how did this get started

bull The Care Project ndashDeveloping and implementing the plan (challenges partners learnings) ndashBusiness value created

bull HIVAIDS ndash The Crisis and why does it matter ndash Programs and activities

Slide 30

Background 1990s saw massive changes in South

African mining industry ndash over 100000 jobs lost as the industry restructured 1999 ndash Placer Dome purchased a 50

interest in South Deep (WAL) a mine located just outside Johannesburg bull 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 31

Background (cont) In late 1999 after detailed study management

realized that economic reality dictated major restructuring at South Deep

13 of the South Deep workforce (over 2500) workers were retrenched bull 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 ndash that the commitment went

BEYOND THE PAYCHECK

waynewaynedunncom Slide 32

Families amp Communities must benefit from mining

Slide 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 HIVAIDS 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$36 million) budget was established

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

waynewaynedunncom Slide 35

The Mine

2560 Retrenchees bullMozambique bullLesotho bullSouth Africa bullSwaziland bullBotswana

How to successfully provide socio-economic support across remote rural regions of five countries

waynewaynedunncom Slide 36

The Initial 4-Step Plan 1 Consultations with retrenchees in their villages 2 Recruit (from amongst the retrenchees) a group

of 25-30 fieldworkers who would provide frontline support to the retrenchees and their families

3 Locate and register the retrenchees 4 Provide them with training and support to enable

them to become economically active

All of the above to be done in partnership with MDA TEBA and other partners

waynewaynedunncom Slide 37

Reality was different than we expected Retrenchees and their

Unions were still angry over the contested retrenchment Retrencheesrsquo homes were

difficult to locate and registration was often problematic

Consultations with retrenchees

Walking to a remote retrenchee homestead in Lesotho

Slide 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 HIVAIDS Fieldworker training programs Retrenchee education levels Centralized delivery didnrsquot work Project was under-financed We couldnrsquot do it in two years Etc

Slide 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

waynewaynedunncom Slide 40

The Process

Business Operation1 Ongoing availability of Technical Assistance and Business Counselling2 Ongoing faclitiation of skills training needs (ie business agriculture vocational etc)

Decision on Economic Option

Employment StreamEnterprise Stream

Evaluation of Micro Finance Application

Retrenchee is Re-Integrated and Economically Active

PersonalEconomic Plan

Prepared ampAssessed

PersonalEmployment Plan

Prepared

Business amp Financing Plan

Prepared

Employment Planning amp Preparation1 Identification of Employment Options2 Skills Training (VocationalAgricultural etc)3 Employment Counseling Placement (Job searchResume etc)

Business Planning amp Preparation1 Business Orientation a) Introduction to Business b) SkillsProduct Training2 Develop Draft Business Plan (to be reviewed with Counselor) (plan will contain market assessment financial operational and skills upgrading plan)3 Preparation of Micro-Finance Application

Orientation and Awareness Phase1 Registration amp Homestead Visits2 District Counselling Sessions3 Open DaysCareer Fairs4 Financial Lifes Skills Training5 Feedback and Choices Session

Ongoing Processes

Follow-up sessions activities to monitor effectiveness of interventions

Communication and consultation with stakeholders Continuous improvement process (review feedback enhance programs procedures processes)

13-step process Delivered 18 times Across Five countries

Slide 41

Some results 92 of the retrenchees were located

and registered 57 of those (1250) are economically

active 65 (1556) 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 42

Chicken raising business

Slide 43

Furniture making

waynewaynedunncom Slide 44

Unique training programs

waynewaynedunncom Slide 45

Rice farming in Mozambique

Slide 46

Spaza (convenience) shop

Slide 47

And the business value ishellip HIVAIDS 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 ndash 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

waynewaynedunncom Slide 48

ldquoThe project changed the social face of the South African Mining Industryrdquo

Kgosietsile Mogaki

South African Ministry of Minerals and Energy

waynewaynedunncom Slide 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 globally

Through 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 50

And then there is HIVAIDS

RSA ACCOUNTED FOR NEARLY 1 IN 8 OF THE NEW HIV INFECTIONS THAT OCCURRED WORLD WIDE IN 2000

HIV+ PREVALENCE RATE IN WOMEN ATTENDING ANTE-NATAL CLINICS INCREASED FROM 07 IN 1990 TO 248 IN 2001

AVERAGE OF 1700 NEW INFECTIONS PER DAY

LIFE EXPECTANCY WILL DECLINE FROM 65 TO 40 BY 2011

65

40

0

10

20

30

40

50

60

70

2001 2011

Life Expectancy

waynewaynedunncom Slide 51

HIVAIDS Facts (in 2000)

ESTIMATED THAT 12 OF TOTAL RSA POPULATION AND 25 OF MINEWORKERS ARE HIV+

ALREADY 400000 PEOPLE ARE AIDS SICK AND THIS WILL INCREASE TO 14 M BY 2010

YOUNG WOMEN PARTICULARLY VULNERABLE ndash 239 AGED BETWEEN 15 ndash 49 ALREADY INFECTED AND WILL RISE TO 297 BY 2007

AIDS ORPHANS AT PRESENT AMOUNT TO 660000+ AND WILL RISE TO 18M BY 2015

ACCUMULATIVE AIDS DEATHS WILL RISE TO 9M BY 2015

Slide 52

HIVAIDS Impact REDUCED ECONOMIC GROWTH RATE ndash 2010 GDP 20 below a non AIDS

scenario REDUCED POPULATION ndash RSA population 10M smaller than non AIDS scenario SKYROCKETING DEMANDS ON PUBLIC HEALTH SYSTEM - RADICALLY CHANGED PRIVATE SPENDING PATTERNS ndash to healthcare and

funeral costs IMPACT ON SOCIO-ECONOMIC STABILITY (orphans)

HIVAIDS 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 Africa today Nobody can afford to ignore it

Slide 53

HIVAIDS and Gold Mining

$10oz impact if nothing is done (5 of production costs) ~$3oz with maximum

intervention Impact on social and political

stability

Slide 54

HIVAIDS Programming Placer Dome program ndash

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 55

Minesite Program

TRAINING AND EDUCATION

STI amp TB TREATMENT

CONDOM DISTRIBUTION

PEER EDUCATION

VOLUNTARY COUNSELING AND TESTING (VCT)

WELLNESS PROGRAM

MEDICAL REPATRIATION

waynewaynedunncom Slide 56

Minesite Program

waynewaynedunncom Slide 57

Current Community Program

AWARENESS AND EDUCATION PROGRAMS

MOBILE CLINIC

CONDOM amp FEMIDOM DISTRIBUTION

PERIODIC PRESUMPTIVE TREATMENT (PPT)

TREATMENT FOR SEXUALLY TRANSMITTED INFECTIONS ( STI)

waynewaynedunncom Slide 58

COMMUNITY PROGRAM

Community Mobile Clinic

waynewaynedunncom Slide 59

And when HIV prevention doesnrsquot 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 60

Industry Home Based Care

TEBA INFRA-STRUCTURE

TRAINING OF CARE GIVERS

SUPPORT STRUCTURE ndash QUALIFIED STAFF

MONTHLY MEDICATION

WORK WITH OTHER STAKEHOLDERS (EG TRADITIONAL HEALERS)

WORLD BANK DEVELOPMENT INNOVATION AWARD

waynewaynedunncom Slide 61

Home Based Care

Slide 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

waynewaynedunncom Slide 63

Overview of Placer Dome AIDS Programming SOUTH DEEP Sustainable Development Department

bullVoluntary Counseling and testing HIV Negative bullContinue working

On Mine Program Community Program

Modified work program Farm bullAgricultural work Environmental

Medical repatriation

Home Based Care

Benefits Care Positive

HBC EC OPP

Back to work or Re skilled

Wellness Program

waynewaynedunncom Slide 64

But what happens to children and families when the breadwinner canrsquot

work

Slide 65

HIVAIDS and Rural Areas HIVAIDS 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

Slide 66

HIVAIDS 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

waynewaynedunncom

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 CSREthical

Project Award (2004) Numerous other awards Stanford Case Study

waynewaynedunncom Slide 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 69

Planned Program

Care Positive Integrate the Home Based Care

project with the Care process and launch as a fee for service based program to address the social and 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

Care Process

+

Home Based Care

=

Care Positive

waynewaynedunncom Slide 70

Care Positive Summary

waynewaynedunncom

Andhellip 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 $100000 and considerable reputational capital into them Industry went forward with modified HIVAIDS

programming but huge developmental impacts were lost

waynewaynedunncom Slide 72

MDG Impacts of Placer Dome in South Africa

1 Poverty and hunger 2 Some impact on primary education (School

feeding program) 3 Promote gender equality and empower women 4 Reduce child mortality 5 Improve maternal health 6 Combat HIVAIDS malaria and other diseass 7 Ensure environmental sustainability 8 Develop a global partnership for development

(Placer Dome CIDA Civil Society NGOs)

waynewaynedunncom

One thing leads to another

World Bank observed how Placer Domersquos leadership on HIVAIDS 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

waynewaynedunncom

PNG HIVAIDS Scoping mission to

determine what might be done and how Enthusiastic interest from

industry government multi-laterals (WHO UNAIDS World Banketc) ODA (AusAID) CIDA partnered with Place Dome to develop an

HIVAIDS strategy for PNG that integrated industry public sector civil society and international community

waynewaynedunncom

PNG Outcomes (or outputs ndash Irsquom never sure) Partnership with Mining

Industry Civil Society WHO UNAIDS UNDP World Bank PNG AIDS AusAID Oil Palm Industry etc National workshop on

HIVAIDS and publicprivate partnerships SouthSouth Collaboration

Industry government civil society international community study trip to South Africa

waynewaynedunncom

waynewaynedunncom

PNG AIDS mission to South Africa

waynewaynedunncom Slide 78

MDG Impacts of PNG HIVAIDS work

1 Poverty and hunger (nutritional supplements) 2 Some impact on primary education (peripheral) 3 Promote gender equality and empower women 4 Reduce child mortality 5 Improve maternal health 6 Combat HIVAIDS malaria and other diseass 7 Ensure environmental sustainability 8 Develop a global partnership for development

(Placer Dome CIDA Civil Society NGOs)

waynewaynedunncom

Eldorado Gold in Turkey

Major gold find in WestCentral Turkey No successful

mining project launched in decades Eurogold project

built launched and halted by community action in late 1990s ndash still mothballed

UsakKislidag Minesite

Eurogold site

waynewaynedunncom

Eldorado Gold in Turkey

Isolated rural area Nearly half of nearby

communities opposed to mine development Agriculture primary

economic activity in rural communities ndash smallmicro family farms

waynewaynedunncom

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

waynewaynedunncom

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 $075 to $1325 Opened second mine in Turkey

bull Able to deal with controversial watershed issues after relationship success in Usak

waynewaynedunncom Slide 83

MDG Impacts of Eldorado Gold

1 Poverty and hunger (minimal) 2 Some impact on primary education (peripheral) 3 Promote gender equality and empower women 4 Reduce child mortality 5 Improve maternal health 6 Combat HIVAIDS malaria and other diseass 7 Ensure environmental sustainability 8 Develop a global partnership for development

(Placer Dome CIDA Civil Society NGOs)

waynewaynedunncom

Underwater Logging in Ghana

waynewaynedunncom

Private Sector and International Development

Private sector especially resource extraction has a very mixed record bull Some horrendous disasters (Nigeria Warao Peoples in

Venezuela etc) bull Some great successes (Placer Dome Care project

mining and HIVAIDS 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

waynewaynedunncom

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

interestsobjectives overlap

waynewaynedunncom

SDCSR Implementation Challenges

more than a warm fuzzy issue Spending isnrsquot the answer

Plan

Framework

System

Results

Solving social problems Objectives

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Beyond Beads and Trinkets ndash BC Mining Review

A lsquohow torsquo article on mining and CSR

Wayne Dunn

BP Venezuela Indigenous Relations ndash Meeting the Challenge Responsibly and Sustainably

Situational assessment and strategic plan for BP Venezuela Authorized for release by BP

Wayne Dunn

Cameco Community Relations Report

Situational assessment and management strategy Authorized for release by Cameco

Wayne Dunn

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author Beyond Beads lsquon Trinkets A systematic approach to managing community relations

A conference paper describing a systematic approach to community relations management helping companies to methodically develop mutually beneficial relationships with local communities and interests (this is one of the earliest papers on this subject ndash written in 1998)

Wayne Dunn

The costs of conflict with local communities in the extractive industry

Analysis of the cost of community conflicts in the Extractive Sector

Rachel Davis and Daniel M Franks

Creating Shared Value

Harvard Business Review interview with Michael Porter

Video

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Social License Its all about value

Discussion on Social License and shareholder Value

Wayne Dunn

Its about Development Commentary on the CIDAMining Company issue

Wayne Dunn

Integrating corporate strategy and social responsibilitymdashmarket returns from stakeholder engagement

Discussion and analysis on market returns on stakeholder engagement

Witold J Henisz Sinziana Dorobantu and Lite J Narty

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

McGill Reporter ndash Four Burning Questions Wayne Dunn on CSR

Discussion on CSR Wayne Dunn

Miningrsquos contribution to sustainable development ndashan overview

Discussion paper prepared by the International Council on Mining and Metals

Millennium Development Goals

United Nations

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Mining and Agriculture Development

A short lsquohow torsquo guide for mining projects to engage with the local agriculture sector

Al Hingston

PDSA Social Value Brochure

Brochure on social value created by Placer Dome South Africa

Placer Dome

The Value of Social License

Opinion piece published in Northern Miner

Wayne Dunn

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Golden Opportunity When a Canadian multinational laid off hundreds of gold miners in South Africa it went many extra miles to help them get back on their feet

Stanford Business School Case Study on Placer Dome in South Africa

Wayne Dunn

The Changing Resource Development Paradigm Maximizing Sustainable Local Benefits from Resource Development

Strategic thought piece prepared for the government of British Columbia Canada

Wayne Dunn

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

The Disappearing Barriers Between Business And Non-profits Are Driving Innovation

Discussion paper

Katherine Pikus

When Condoms are not enough

World Bank staff magazine article on Placer Dome and South African mining industryrsquos work with HIVAIDS

Craig Andrews

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

MINING AND LOCAL ECONOMIC DEVELOPMENT IN PAPUA NEW GUINEA Preliminary Research on a Potential Pilot Project in Porgera and Lihir

Strategic research and action plan on mining and local economic development in Papua New Guinea prepared for the World Bank

Wayne Dunn

waynewaynedunncom

What we covered

We 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) Publicprivatecivil society collaboration ndash case study

and discussion (CIDA and Mining Companies) Open discussion on topics of interest (time permitting)

waynewaynedunncom

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 howwhy 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

waynewaynedunncom

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 howwhy 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

waynewaynedunncom

Alignment around Shared Value For shareholders For Communities For People For Governments

Private Sector Contributions To International Development

Remember

  • Private Sector Contributions To International Development
  • Session Objectives
  • Map of the morning How we will try to meet the objectives
  • Slide Number 4
  • What is ODA and FDI
  • What is ODA and FDI
  • Why discuss Private Sector Contribution anyway
  • FDIBusiness Outcomes
  • Intention and Strategy Make a Difference
  • Why does the private sector care
  • Community Consultation and Value
  • Itrsquos Real Money
  • CSR is a Value Strategy
  • Social License Failures cost
  • Why is CSR happening
  • The Mining World Has Changed
  • CSR is a complicated space
  • CSR amp Social License
  • Role of business is changing (click image to play video)
  • Case Studies (of successes)
  • Slide Number 21
  • Uranium Industry in Northern Saskatchewan
  • Challenging area
  • Challenging Times
  • Cameco in 1998
  • Cameco in Northern Saskatchewan (2010)
  • So how did Cameco and the industry do it
  • Placer Dome South Africa
  • Slide Number 29
  • Background
  • Background (cont)
  • Families amp Communities must benefit from mining
  • The Care Project
  • Implications
  • Slide Number 35
  • The Initial 4-Step Plan
  • Reality was different than we expected
  • Reality was different than expected
  • Meeting the challenges
  • TheProcess
  • Some results
  • Chicken raising business
  • Furniture making
  • Unique training programs
  • Rice farming in Mozambique
  • Spaza (convenience) shop
  • And the business value ishellip
  • Slide Number 48
  • What was in it for Placer Dome
  • And then there is HIVAIDS
  • HIVAIDS Facts (in 2000)
  • HIVAIDS Impact
  • HIVAIDS and Gold Mining
  • HIVAIDS Programming
  • Minesite Program
  • Minesite Program
  • Current Community Program
  • Community Mobile Clinic
  • And when HIV prevention doesnrsquot work
  • Industry Home Based Care
  • Home Based Care
  • INDUSTRY HOME BASED CARE RESULTS(Year One)
  • Overview of Placer Dome AIDS Programming
  • Slide Number 64
  • HIVAIDS and Rural Areas
  • HIVAIDS and Rural Areas
  • Reputational Results for Placer Dome
  • Where to next
  • Planned Program
  • Care Positive Summary
  • Andhellip
  • MDG Impacts of Placer Dome in South Africa
  • One thing leads to another
  • PNG HIVAIDS
  • PNG Outcomes (or outputs ndash Irsquom never sure)
  • Slide Number 76
  • PNG AIDS mission to South Africa
  • MDG Impacts of PNG HIVAIDS work
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • MDG Impacts of Eldorado Gold
  • Underwater Logging in Ghana
  • Private Sector and International Development
  • Group Exercise
  • Slide Number 87
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • What we covered
  • Session Objectives
  • Session Objectives
  • Remember
Page 18: Private Sector Contributions To International Development – McGill Executive Education Program Lecture

waynewaynedunncom

CSR amp 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

waynewaynedunncom

Role of business is changing (click image to play video)

Creating Shared Value - Harvard Business Review

waynewaynedunncom

Case Studies (of successes)

Cameco in Northern Saskatchewan ndash indigenous employment and development (Industry Social License) Placer Dome South Africa ndash community development and

womenrsquos empowerment HIVAIDS programming leadership Placer Dome in Papua New Guinea ndash leading public private

partnerships in HIVAIDS programming (and southsouth cooperation) Eldorado Gold in Turkey ndash supporting community priorities CSR Developments in Ghana ndash underwater logging and

social license

waynewaynedunncom

1 Eradicate extreme poverty and hunger 2 Achieve universal primary education 3 Promote gender equality and empower women 4 Reduce child mortality 5 Improve maternal health 6 Combat HIVAIDS malaria and other diseass 7 Ensure environmental sustainability 8 Develop a global partnership for development

waynewaynedunncom

Uranium Industry in Northern Saskatchewan Huge remote area (larger than all but five US States (Alaska Texas California Montana and New Mexico)

Waynersquos World

waynewaynedunncom

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

waynewaynedunncom

Challenging Times

Strong opposition to industry developing bull From Europe bull From within governing party

Industry had difficulties from all sides bull Local stakeholders didnrsquot have the capacity to engage

productively in the industry bull Early days of CSR (1980s) and companies largely didnrsquot

realize the importance of local engagement and value creation

waynewaynedunncom

Cameco in 1998

Camecorsquos approach has transformed the socio-economic well-being of Indigenous Peoples in Northern Saskatchewan

29 30

34

37 3739

42 42 43 44

20

25

30

35

40

45

50

1989 1990 1991 1992 1993 1994 1995 1996 1997 1998(Aug)

Perc

enta

ge o

f Tot

al W

orkf

orce

Cameco Aboriginal Employment(includes permanent contractor workforce)

waynewaynedunncom

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 $25 million to northern and aboriginal

initiatives for youth health and wellness education and literacy and culture and recreation Provided $100000 in scholarships to post-secondary

students

waynewaynedunncom

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 ndash NRT Trucking Skunk workssecret meetings Overcoming culture and practice barriers (drilling

underground mining etc) BHAGs Necessity

waynewaynedunncom Slide 28

Placer Dome South Africa

Case study of innovative developmental CSR Demonstrate application of key CSR principles

CSRSustainability Policy Strategic interventions vs shotgun approaches Impact metrics vs expense metrics Partnership strategies (financial operational technical) Leadership and leverage

Slide 29

Overview

bull Background ndash how did this get started

bull The Care Project ndashDeveloping and implementing the plan (challenges partners learnings) ndashBusiness value created

bull HIVAIDS ndash The Crisis and why does it matter ndash Programs and activities

Slide 30

Background 1990s saw massive changes in South

African mining industry ndash over 100000 jobs lost as the industry restructured 1999 ndash Placer Dome purchased a 50

interest in South Deep (WAL) a mine located just outside Johannesburg bull 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 31

Background (cont) In late 1999 after detailed study management

realized that economic reality dictated major restructuring at South Deep

13 of the South Deep workforce (over 2500) workers were retrenched bull 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 ndash that the commitment went

BEYOND THE PAYCHECK

waynewaynedunncom Slide 32

Families amp Communities must benefit from mining

Slide 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 HIVAIDS 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$36 million) budget was established

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

waynewaynedunncom Slide 35

The Mine

2560 Retrenchees bullMozambique bullLesotho bullSouth Africa bullSwaziland bullBotswana

How to successfully provide socio-economic support across remote rural regions of five countries

waynewaynedunncom Slide 36

The Initial 4-Step Plan 1 Consultations with retrenchees in their villages 2 Recruit (from amongst the retrenchees) a group

of 25-30 fieldworkers who would provide frontline support to the retrenchees and their families

3 Locate and register the retrenchees 4 Provide them with training and support to enable

them to become economically active

All of the above to be done in partnership with MDA TEBA and other partners

waynewaynedunncom Slide 37

Reality was different than we expected Retrenchees and their

Unions were still angry over the contested retrenchment Retrencheesrsquo homes were

difficult to locate and registration was often problematic

Consultations with retrenchees

Walking to a remote retrenchee homestead in Lesotho

Slide 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 HIVAIDS Fieldworker training programs Retrenchee education levels Centralized delivery didnrsquot work Project was under-financed We couldnrsquot do it in two years Etc

Slide 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

waynewaynedunncom Slide 40

The Process

Business Operation1 Ongoing availability of Technical Assistance and Business Counselling2 Ongoing faclitiation of skills training needs (ie business agriculture vocational etc)

Decision on Economic Option

Employment StreamEnterprise Stream

Evaluation of Micro Finance Application

Retrenchee is Re-Integrated and Economically Active

PersonalEconomic Plan

Prepared ampAssessed

PersonalEmployment Plan

Prepared

Business amp Financing Plan

Prepared

Employment Planning amp Preparation1 Identification of Employment Options2 Skills Training (VocationalAgricultural etc)3 Employment Counseling Placement (Job searchResume etc)

Business Planning amp Preparation1 Business Orientation a) Introduction to Business b) SkillsProduct Training2 Develop Draft Business Plan (to be reviewed with Counselor) (plan will contain market assessment financial operational and skills upgrading plan)3 Preparation of Micro-Finance Application

Orientation and Awareness Phase1 Registration amp Homestead Visits2 District Counselling Sessions3 Open DaysCareer Fairs4 Financial Lifes Skills Training5 Feedback and Choices Session

Ongoing Processes

Follow-up sessions activities to monitor effectiveness of interventions

Communication and consultation with stakeholders Continuous improvement process (review feedback enhance programs procedures processes)

13-step process Delivered 18 times Across Five countries

Slide 41

Some results 92 of the retrenchees were located

and registered 57 of those (1250) are economically

active 65 (1556) 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 42

Chicken raising business

Slide 43

Furniture making

waynewaynedunncom Slide 44

Unique training programs

waynewaynedunncom Slide 45

Rice farming in Mozambique

Slide 46

Spaza (convenience) shop

Slide 47

And the business value ishellip HIVAIDS 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 ndash 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

waynewaynedunncom Slide 48

ldquoThe project changed the social face of the South African Mining Industryrdquo

Kgosietsile Mogaki

South African Ministry of Minerals and Energy

waynewaynedunncom Slide 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 globally

Through 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 50

And then there is HIVAIDS

RSA ACCOUNTED FOR NEARLY 1 IN 8 OF THE NEW HIV INFECTIONS THAT OCCURRED WORLD WIDE IN 2000

HIV+ PREVALENCE RATE IN WOMEN ATTENDING ANTE-NATAL CLINICS INCREASED FROM 07 IN 1990 TO 248 IN 2001

AVERAGE OF 1700 NEW INFECTIONS PER DAY

LIFE EXPECTANCY WILL DECLINE FROM 65 TO 40 BY 2011

65

40

0

10

20

30

40

50

60

70

2001 2011

Life Expectancy

waynewaynedunncom Slide 51

HIVAIDS Facts (in 2000)

ESTIMATED THAT 12 OF TOTAL RSA POPULATION AND 25 OF MINEWORKERS ARE HIV+

ALREADY 400000 PEOPLE ARE AIDS SICK AND THIS WILL INCREASE TO 14 M BY 2010

YOUNG WOMEN PARTICULARLY VULNERABLE ndash 239 AGED BETWEEN 15 ndash 49 ALREADY INFECTED AND WILL RISE TO 297 BY 2007

AIDS ORPHANS AT PRESENT AMOUNT TO 660000+ AND WILL RISE TO 18M BY 2015

ACCUMULATIVE AIDS DEATHS WILL RISE TO 9M BY 2015

Slide 52

HIVAIDS Impact REDUCED ECONOMIC GROWTH RATE ndash 2010 GDP 20 below a non AIDS

scenario REDUCED POPULATION ndash RSA population 10M smaller than non AIDS scenario SKYROCKETING DEMANDS ON PUBLIC HEALTH SYSTEM - RADICALLY CHANGED PRIVATE SPENDING PATTERNS ndash to healthcare and

funeral costs IMPACT ON SOCIO-ECONOMIC STABILITY (orphans)

HIVAIDS 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 Africa today Nobody can afford to ignore it

Slide 53

HIVAIDS and Gold Mining

$10oz impact if nothing is done (5 of production costs) ~$3oz with maximum

intervention Impact on social and political

stability

Slide 54

HIVAIDS Programming Placer Dome program ndash

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 55

Minesite Program

TRAINING AND EDUCATION

STI amp TB TREATMENT

CONDOM DISTRIBUTION

PEER EDUCATION

VOLUNTARY COUNSELING AND TESTING (VCT)

WELLNESS PROGRAM

MEDICAL REPATRIATION

waynewaynedunncom Slide 56

Minesite Program

waynewaynedunncom Slide 57

Current Community Program

AWARENESS AND EDUCATION PROGRAMS

MOBILE CLINIC

CONDOM amp FEMIDOM DISTRIBUTION

PERIODIC PRESUMPTIVE TREATMENT (PPT)

TREATMENT FOR SEXUALLY TRANSMITTED INFECTIONS ( STI)

waynewaynedunncom Slide 58

COMMUNITY PROGRAM

Community Mobile Clinic

waynewaynedunncom Slide 59

And when HIV prevention doesnrsquot 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 60

Industry Home Based Care

TEBA INFRA-STRUCTURE

TRAINING OF CARE GIVERS

SUPPORT STRUCTURE ndash QUALIFIED STAFF

MONTHLY MEDICATION

WORK WITH OTHER STAKEHOLDERS (EG TRADITIONAL HEALERS)

WORLD BANK DEVELOPMENT INNOVATION AWARD

waynewaynedunncom Slide 61

Home Based Care

Slide 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

waynewaynedunncom Slide 63

Overview of Placer Dome AIDS Programming SOUTH DEEP Sustainable Development Department

bullVoluntary Counseling and testing HIV Negative bullContinue working

On Mine Program Community Program

Modified work program Farm bullAgricultural work Environmental

Medical repatriation

Home Based Care

Benefits Care Positive

HBC EC OPP

Back to work or Re skilled

Wellness Program

waynewaynedunncom Slide 64

But what happens to children and families when the breadwinner canrsquot

work

Slide 65

HIVAIDS and Rural Areas HIVAIDS 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

Slide 66

HIVAIDS 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

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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 CSREthical

Project Award (2004) Numerous other awards Stanford Case Study

waynewaynedunncom Slide 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 69

Planned Program

Care Positive Integrate the Home Based Care

project with the Care process and launch as a fee for service based program to address the social and 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

Care Process

+

Home Based Care

=

Care Positive

waynewaynedunncom Slide 70

Care Positive Summary

waynewaynedunncom

Andhellip 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 $100000 and considerable reputational capital into them Industry went forward with modified HIVAIDS

programming but huge developmental impacts were lost

waynewaynedunncom Slide 72

MDG Impacts of Placer Dome in South Africa

1 Poverty and hunger 2 Some impact on primary education (School

feeding program) 3 Promote gender equality and empower women 4 Reduce child mortality 5 Improve maternal health 6 Combat HIVAIDS malaria and other diseass 7 Ensure environmental sustainability 8 Develop a global partnership for development

(Placer Dome CIDA Civil Society NGOs)

waynewaynedunncom

One thing leads to another

World Bank observed how Placer Domersquos leadership on HIVAIDS 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

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PNG HIVAIDS Scoping mission to

determine what might be done and how Enthusiastic interest from

industry government multi-laterals (WHO UNAIDS World Banketc) ODA (AusAID) CIDA partnered with Place Dome to develop an

HIVAIDS strategy for PNG that integrated industry public sector civil society and international community

waynewaynedunncom

PNG Outcomes (or outputs ndash Irsquom never sure) Partnership with Mining

Industry Civil Society WHO UNAIDS UNDP World Bank PNG AIDS AusAID Oil Palm Industry etc National workshop on

HIVAIDS and publicprivate partnerships SouthSouth Collaboration

Industry government civil society international community study trip to South Africa

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waynewaynedunncom

PNG AIDS mission to South Africa

waynewaynedunncom Slide 78

MDG Impacts of PNG HIVAIDS work

1 Poverty and hunger (nutritional supplements) 2 Some impact on primary education (peripheral) 3 Promote gender equality and empower women 4 Reduce child mortality 5 Improve maternal health 6 Combat HIVAIDS malaria and other diseass 7 Ensure environmental sustainability 8 Develop a global partnership for development

(Placer Dome CIDA Civil Society NGOs)

waynewaynedunncom

Eldorado Gold in Turkey

Major gold find in WestCentral Turkey No successful

mining project launched in decades Eurogold project

built launched and halted by community action in late 1990s ndash still mothballed

UsakKislidag Minesite

Eurogold site

waynewaynedunncom

Eldorado Gold in Turkey

Isolated rural area Nearly half of nearby

communities opposed to mine development Agriculture primary

economic activity in rural communities ndash smallmicro family farms

waynewaynedunncom

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

waynewaynedunncom

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 $075 to $1325 Opened second mine in Turkey

bull Able to deal with controversial watershed issues after relationship success in Usak

waynewaynedunncom Slide 83

MDG Impacts of Eldorado Gold

1 Poverty and hunger (minimal) 2 Some impact on primary education (peripheral) 3 Promote gender equality and empower women 4 Reduce child mortality 5 Improve maternal health 6 Combat HIVAIDS malaria and other diseass 7 Ensure environmental sustainability 8 Develop a global partnership for development

(Placer Dome CIDA Civil Society NGOs)

waynewaynedunncom

Underwater Logging in Ghana

waynewaynedunncom

Private Sector and International Development

Private sector especially resource extraction has a very mixed record bull Some horrendous disasters (Nigeria Warao Peoples in

Venezuela etc) bull Some great successes (Placer Dome Care project

mining and HIVAIDS 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

waynewaynedunncom

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

interestsobjectives overlap

waynewaynedunncom

SDCSR Implementation Challenges

more than a warm fuzzy issue Spending isnrsquot the answer

Plan

Framework

System

Results

Solving social problems Objectives

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Beyond Beads and Trinkets ndash BC Mining Review

A lsquohow torsquo article on mining and CSR

Wayne Dunn

BP Venezuela Indigenous Relations ndash Meeting the Challenge Responsibly and Sustainably

Situational assessment and strategic plan for BP Venezuela Authorized for release by BP

Wayne Dunn

Cameco Community Relations Report

Situational assessment and management strategy Authorized for release by Cameco

Wayne Dunn

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author Beyond Beads lsquon Trinkets A systematic approach to managing community relations

A conference paper describing a systematic approach to community relations management helping companies to methodically develop mutually beneficial relationships with local communities and interests (this is one of the earliest papers on this subject ndash written in 1998)

Wayne Dunn

The costs of conflict with local communities in the extractive industry

Analysis of the cost of community conflicts in the Extractive Sector

Rachel Davis and Daniel M Franks

Creating Shared Value

Harvard Business Review interview with Michael Porter

Video

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Social License Its all about value

Discussion on Social License and shareholder Value

Wayne Dunn

Its about Development Commentary on the CIDAMining Company issue

Wayne Dunn

Integrating corporate strategy and social responsibilitymdashmarket returns from stakeholder engagement

Discussion and analysis on market returns on stakeholder engagement

Witold J Henisz Sinziana Dorobantu and Lite J Narty

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

McGill Reporter ndash Four Burning Questions Wayne Dunn on CSR

Discussion on CSR Wayne Dunn

Miningrsquos contribution to sustainable development ndashan overview

Discussion paper prepared by the International Council on Mining and Metals

Millennium Development Goals

United Nations

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Mining and Agriculture Development

A short lsquohow torsquo guide for mining projects to engage with the local agriculture sector

Al Hingston

PDSA Social Value Brochure

Brochure on social value created by Placer Dome South Africa

Placer Dome

The Value of Social License

Opinion piece published in Northern Miner

Wayne Dunn

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Golden Opportunity When a Canadian multinational laid off hundreds of gold miners in South Africa it went many extra miles to help them get back on their feet

Stanford Business School Case Study on Placer Dome in South Africa

Wayne Dunn

The Changing Resource Development Paradigm Maximizing Sustainable Local Benefits from Resource Development

Strategic thought piece prepared for the government of British Columbia Canada

Wayne Dunn

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

The Disappearing Barriers Between Business And Non-profits Are Driving Innovation

Discussion paper

Katherine Pikus

When Condoms are not enough

World Bank staff magazine article on Placer Dome and South African mining industryrsquos work with HIVAIDS

Craig Andrews

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

MINING AND LOCAL ECONOMIC DEVELOPMENT IN PAPUA NEW GUINEA Preliminary Research on a Potential Pilot Project in Porgera and Lihir

Strategic research and action plan on mining and local economic development in Papua New Guinea prepared for the World Bank

Wayne Dunn

waynewaynedunncom

What we covered

We 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) Publicprivatecivil society collaboration ndash case study

and discussion (CIDA and Mining Companies) Open discussion on topics of interest (time permitting)

waynewaynedunncom

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 howwhy 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

waynewaynedunncom

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 howwhy 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

waynewaynedunncom

Alignment around Shared Value For shareholders For Communities For People For Governments

Private Sector Contributions To International Development

Remember

  • Private Sector Contributions To International Development
  • Session Objectives
  • Map of the morning How we will try to meet the objectives
  • Slide Number 4
  • What is ODA and FDI
  • What is ODA and FDI
  • Why discuss Private Sector Contribution anyway
  • FDIBusiness Outcomes
  • Intention and Strategy Make a Difference
  • Why does the private sector care
  • Community Consultation and Value
  • Itrsquos Real Money
  • CSR is a Value Strategy
  • Social License Failures cost
  • Why is CSR happening
  • The Mining World Has Changed
  • CSR is a complicated space
  • CSR amp Social License
  • Role of business is changing (click image to play video)
  • Case Studies (of successes)
  • Slide Number 21
  • Uranium Industry in Northern Saskatchewan
  • Challenging area
  • Challenging Times
  • Cameco in 1998
  • Cameco in Northern Saskatchewan (2010)
  • So how did Cameco and the industry do it
  • Placer Dome South Africa
  • Slide Number 29
  • Background
  • Background (cont)
  • Families amp Communities must benefit from mining
  • The Care Project
  • Implications
  • Slide Number 35
  • The Initial 4-Step Plan
  • Reality was different than we expected
  • Reality was different than expected
  • Meeting the challenges
  • TheProcess
  • Some results
  • Chicken raising business
  • Furniture making
  • Unique training programs
  • Rice farming in Mozambique
  • Spaza (convenience) shop
  • And the business value ishellip
  • Slide Number 48
  • What was in it for Placer Dome
  • And then there is HIVAIDS
  • HIVAIDS Facts (in 2000)
  • HIVAIDS Impact
  • HIVAIDS and Gold Mining
  • HIVAIDS Programming
  • Minesite Program
  • Minesite Program
  • Current Community Program
  • Community Mobile Clinic
  • And when HIV prevention doesnrsquot work
  • Industry Home Based Care
  • Home Based Care
  • INDUSTRY HOME BASED CARE RESULTS(Year One)
  • Overview of Placer Dome AIDS Programming
  • Slide Number 64
  • HIVAIDS and Rural Areas
  • HIVAIDS and Rural Areas
  • Reputational Results for Placer Dome
  • Where to next
  • Planned Program
  • Care Positive Summary
  • Andhellip
  • MDG Impacts of Placer Dome in South Africa
  • One thing leads to another
  • PNG HIVAIDS
  • PNG Outcomes (or outputs ndash Irsquom never sure)
  • Slide Number 76
  • PNG AIDS mission to South Africa
  • MDG Impacts of PNG HIVAIDS work
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • MDG Impacts of Eldorado Gold
  • Underwater Logging in Ghana
  • Private Sector and International Development
  • Group Exercise
  • Slide Number 87
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • What we covered
  • Session Objectives
  • Session Objectives
  • Remember
Page 19: Private Sector Contributions To International Development – McGill Executive Education Program Lecture

waynewaynedunncom

Role of business is changing (click image to play video)

Creating Shared Value - Harvard Business Review

waynewaynedunncom

Case Studies (of successes)

Cameco in Northern Saskatchewan ndash indigenous employment and development (Industry Social License) Placer Dome South Africa ndash community development and

womenrsquos empowerment HIVAIDS programming leadership Placer Dome in Papua New Guinea ndash leading public private

partnerships in HIVAIDS programming (and southsouth cooperation) Eldorado Gold in Turkey ndash supporting community priorities CSR Developments in Ghana ndash underwater logging and

social license

waynewaynedunncom

1 Eradicate extreme poverty and hunger 2 Achieve universal primary education 3 Promote gender equality and empower women 4 Reduce child mortality 5 Improve maternal health 6 Combat HIVAIDS malaria and other diseass 7 Ensure environmental sustainability 8 Develop a global partnership for development

waynewaynedunncom

Uranium Industry in Northern Saskatchewan Huge remote area (larger than all but five US States (Alaska Texas California Montana and New Mexico)

Waynersquos World

waynewaynedunncom

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

waynewaynedunncom

Challenging Times

Strong opposition to industry developing bull From Europe bull From within governing party

Industry had difficulties from all sides bull Local stakeholders didnrsquot have the capacity to engage

productively in the industry bull Early days of CSR (1980s) and companies largely didnrsquot

realize the importance of local engagement and value creation

waynewaynedunncom

Cameco in 1998

Camecorsquos approach has transformed the socio-economic well-being of Indigenous Peoples in Northern Saskatchewan

29 30

34

37 3739

42 42 43 44

20

25

30

35

40

45

50

1989 1990 1991 1992 1993 1994 1995 1996 1997 1998(Aug)

Perc

enta

ge o

f Tot

al W

orkf

orce

Cameco Aboriginal Employment(includes permanent contractor workforce)

waynewaynedunncom

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 $25 million to northern and aboriginal

initiatives for youth health and wellness education and literacy and culture and recreation Provided $100000 in scholarships to post-secondary

students

waynewaynedunncom

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 ndash NRT Trucking Skunk workssecret meetings Overcoming culture and practice barriers (drilling

underground mining etc) BHAGs Necessity

waynewaynedunncom Slide 28

Placer Dome South Africa

Case study of innovative developmental CSR Demonstrate application of key CSR principles

CSRSustainability Policy Strategic interventions vs shotgun approaches Impact metrics vs expense metrics Partnership strategies (financial operational technical) Leadership and leverage

Slide 29

Overview

bull Background ndash how did this get started

bull The Care Project ndashDeveloping and implementing the plan (challenges partners learnings) ndashBusiness value created

bull HIVAIDS ndash The Crisis and why does it matter ndash Programs and activities

Slide 30

Background 1990s saw massive changes in South

African mining industry ndash over 100000 jobs lost as the industry restructured 1999 ndash Placer Dome purchased a 50

interest in South Deep (WAL) a mine located just outside Johannesburg bull 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 31

Background (cont) In late 1999 after detailed study management

realized that economic reality dictated major restructuring at South Deep

13 of the South Deep workforce (over 2500) workers were retrenched bull 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 ndash that the commitment went

BEYOND THE PAYCHECK

waynewaynedunncom Slide 32

Families amp Communities must benefit from mining

Slide 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 HIVAIDS 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$36 million) budget was established

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

waynewaynedunncom Slide 35

The Mine

2560 Retrenchees bullMozambique bullLesotho bullSouth Africa bullSwaziland bullBotswana

How to successfully provide socio-economic support across remote rural regions of five countries

waynewaynedunncom Slide 36

The Initial 4-Step Plan 1 Consultations with retrenchees in their villages 2 Recruit (from amongst the retrenchees) a group

of 25-30 fieldworkers who would provide frontline support to the retrenchees and their families

3 Locate and register the retrenchees 4 Provide them with training and support to enable

them to become economically active

All of the above to be done in partnership with MDA TEBA and other partners

waynewaynedunncom Slide 37

Reality was different than we expected Retrenchees and their

Unions were still angry over the contested retrenchment Retrencheesrsquo homes were

difficult to locate and registration was often problematic

Consultations with retrenchees

Walking to a remote retrenchee homestead in Lesotho

Slide 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 HIVAIDS Fieldworker training programs Retrenchee education levels Centralized delivery didnrsquot work Project was under-financed We couldnrsquot do it in two years Etc

Slide 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

waynewaynedunncom Slide 40

The Process

Business Operation1 Ongoing availability of Technical Assistance and Business Counselling2 Ongoing faclitiation of skills training needs (ie business agriculture vocational etc)

Decision on Economic Option

Employment StreamEnterprise Stream

Evaluation of Micro Finance Application

Retrenchee is Re-Integrated and Economically Active

PersonalEconomic Plan

Prepared ampAssessed

PersonalEmployment Plan

Prepared

Business amp Financing Plan

Prepared

Employment Planning amp Preparation1 Identification of Employment Options2 Skills Training (VocationalAgricultural etc)3 Employment Counseling Placement (Job searchResume etc)

Business Planning amp Preparation1 Business Orientation a) Introduction to Business b) SkillsProduct Training2 Develop Draft Business Plan (to be reviewed with Counselor) (plan will contain market assessment financial operational and skills upgrading plan)3 Preparation of Micro-Finance Application

Orientation and Awareness Phase1 Registration amp Homestead Visits2 District Counselling Sessions3 Open DaysCareer Fairs4 Financial Lifes Skills Training5 Feedback and Choices Session

Ongoing Processes

Follow-up sessions activities to monitor effectiveness of interventions

Communication and consultation with stakeholders Continuous improvement process (review feedback enhance programs procedures processes)

13-step process Delivered 18 times Across Five countries

Slide 41

Some results 92 of the retrenchees were located

and registered 57 of those (1250) are economically

active 65 (1556) 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 42

Chicken raising business

Slide 43

Furniture making

waynewaynedunncom Slide 44

Unique training programs

waynewaynedunncom Slide 45

Rice farming in Mozambique

Slide 46

Spaza (convenience) shop

Slide 47

And the business value ishellip HIVAIDS 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 ndash 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

waynewaynedunncom Slide 48

ldquoThe project changed the social face of the South African Mining Industryrdquo

Kgosietsile Mogaki

South African Ministry of Minerals and Energy

waynewaynedunncom Slide 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 globally

Through 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 50

And then there is HIVAIDS

RSA ACCOUNTED FOR NEARLY 1 IN 8 OF THE NEW HIV INFECTIONS THAT OCCURRED WORLD WIDE IN 2000

HIV+ PREVALENCE RATE IN WOMEN ATTENDING ANTE-NATAL CLINICS INCREASED FROM 07 IN 1990 TO 248 IN 2001

AVERAGE OF 1700 NEW INFECTIONS PER DAY

LIFE EXPECTANCY WILL DECLINE FROM 65 TO 40 BY 2011

65

40

0

10

20

30

40

50

60

70

2001 2011

Life Expectancy

waynewaynedunncom Slide 51

HIVAIDS Facts (in 2000)

ESTIMATED THAT 12 OF TOTAL RSA POPULATION AND 25 OF MINEWORKERS ARE HIV+

ALREADY 400000 PEOPLE ARE AIDS SICK AND THIS WILL INCREASE TO 14 M BY 2010

YOUNG WOMEN PARTICULARLY VULNERABLE ndash 239 AGED BETWEEN 15 ndash 49 ALREADY INFECTED AND WILL RISE TO 297 BY 2007

AIDS ORPHANS AT PRESENT AMOUNT TO 660000+ AND WILL RISE TO 18M BY 2015

ACCUMULATIVE AIDS DEATHS WILL RISE TO 9M BY 2015

Slide 52

HIVAIDS Impact REDUCED ECONOMIC GROWTH RATE ndash 2010 GDP 20 below a non AIDS

scenario REDUCED POPULATION ndash RSA population 10M smaller than non AIDS scenario SKYROCKETING DEMANDS ON PUBLIC HEALTH SYSTEM - RADICALLY CHANGED PRIVATE SPENDING PATTERNS ndash to healthcare and

funeral costs IMPACT ON SOCIO-ECONOMIC STABILITY (orphans)

HIVAIDS 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 Africa today Nobody can afford to ignore it

Slide 53

HIVAIDS and Gold Mining

$10oz impact if nothing is done (5 of production costs) ~$3oz with maximum

intervention Impact on social and political

stability

Slide 54

HIVAIDS Programming Placer Dome program ndash

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 55

Minesite Program

TRAINING AND EDUCATION

STI amp TB TREATMENT

CONDOM DISTRIBUTION

PEER EDUCATION

VOLUNTARY COUNSELING AND TESTING (VCT)

WELLNESS PROGRAM

MEDICAL REPATRIATION

waynewaynedunncom Slide 56

Minesite Program

waynewaynedunncom Slide 57

Current Community Program

AWARENESS AND EDUCATION PROGRAMS

MOBILE CLINIC

CONDOM amp FEMIDOM DISTRIBUTION

PERIODIC PRESUMPTIVE TREATMENT (PPT)

TREATMENT FOR SEXUALLY TRANSMITTED INFECTIONS ( STI)

waynewaynedunncom Slide 58

COMMUNITY PROGRAM

Community Mobile Clinic

waynewaynedunncom Slide 59

And when HIV prevention doesnrsquot 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 60

Industry Home Based Care

TEBA INFRA-STRUCTURE

TRAINING OF CARE GIVERS

SUPPORT STRUCTURE ndash QUALIFIED STAFF

MONTHLY MEDICATION

WORK WITH OTHER STAKEHOLDERS (EG TRADITIONAL HEALERS)

WORLD BANK DEVELOPMENT INNOVATION AWARD

waynewaynedunncom Slide 61

Home Based Care

Slide 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

waynewaynedunncom Slide 63

Overview of Placer Dome AIDS Programming SOUTH DEEP Sustainable Development Department

bullVoluntary Counseling and testing HIV Negative bullContinue working

On Mine Program Community Program

Modified work program Farm bullAgricultural work Environmental

Medical repatriation

Home Based Care

Benefits Care Positive

HBC EC OPP

Back to work or Re skilled

Wellness Program

waynewaynedunncom Slide 64

But what happens to children and families when the breadwinner canrsquot

work

Slide 65

HIVAIDS and Rural Areas HIVAIDS 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

Slide 66

HIVAIDS 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

waynewaynedunncom

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 CSREthical

Project Award (2004) Numerous other awards Stanford Case Study

waynewaynedunncom Slide 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 69

Planned Program

Care Positive Integrate the Home Based Care

project with the Care process and launch as a fee for service based program to address the social and 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

Care Process

+

Home Based Care

=

Care Positive

waynewaynedunncom Slide 70

Care Positive Summary

waynewaynedunncom

Andhellip 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 $100000 and considerable reputational capital into them Industry went forward with modified HIVAIDS

programming but huge developmental impacts were lost

waynewaynedunncom Slide 72

MDG Impacts of Placer Dome in South Africa

1 Poverty and hunger 2 Some impact on primary education (School

feeding program) 3 Promote gender equality and empower women 4 Reduce child mortality 5 Improve maternal health 6 Combat HIVAIDS malaria and other diseass 7 Ensure environmental sustainability 8 Develop a global partnership for development

(Placer Dome CIDA Civil Society NGOs)

waynewaynedunncom

One thing leads to another

World Bank observed how Placer Domersquos leadership on HIVAIDS 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

waynewaynedunncom

PNG HIVAIDS Scoping mission to

determine what might be done and how Enthusiastic interest from

industry government multi-laterals (WHO UNAIDS World Banketc) ODA (AusAID) CIDA partnered with Place Dome to develop an

HIVAIDS strategy for PNG that integrated industry public sector civil society and international community

waynewaynedunncom

PNG Outcomes (or outputs ndash Irsquom never sure) Partnership with Mining

Industry Civil Society WHO UNAIDS UNDP World Bank PNG AIDS AusAID Oil Palm Industry etc National workshop on

HIVAIDS and publicprivate partnerships SouthSouth Collaboration

Industry government civil society international community study trip to South Africa

waynewaynedunncom

waynewaynedunncom

PNG AIDS mission to South Africa

waynewaynedunncom Slide 78

MDG Impacts of PNG HIVAIDS work

1 Poverty and hunger (nutritional supplements) 2 Some impact on primary education (peripheral) 3 Promote gender equality and empower women 4 Reduce child mortality 5 Improve maternal health 6 Combat HIVAIDS malaria and other diseass 7 Ensure environmental sustainability 8 Develop a global partnership for development

(Placer Dome CIDA Civil Society NGOs)

waynewaynedunncom

Eldorado Gold in Turkey

Major gold find in WestCentral Turkey No successful

mining project launched in decades Eurogold project

built launched and halted by community action in late 1990s ndash still mothballed

UsakKislidag Minesite

Eurogold site

waynewaynedunncom

Eldorado Gold in Turkey

Isolated rural area Nearly half of nearby

communities opposed to mine development Agriculture primary

economic activity in rural communities ndash smallmicro family farms

waynewaynedunncom

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

waynewaynedunncom

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 $075 to $1325 Opened second mine in Turkey

bull Able to deal with controversial watershed issues after relationship success in Usak

waynewaynedunncom Slide 83

MDG Impacts of Eldorado Gold

1 Poverty and hunger (minimal) 2 Some impact on primary education (peripheral) 3 Promote gender equality and empower women 4 Reduce child mortality 5 Improve maternal health 6 Combat HIVAIDS malaria and other diseass 7 Ensure environmental sustainability 8 Develop a global partnership for development

(Placer Dome CIDA Civil Society NGOs)

waynewaynedunncom

Underwater Logging in Ghana

waynewaynedunncom

Private Sector and International Development

Private sector especially resource extraction has a very mixed record bull Some horrendous disasters (Nigeria Warao Peoples in

Venezuela etc) bull Some great successes (Placer Dome Care project

mining and HIVAIDS 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

waynewaynedunncom

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

interestsobjectives overlap

waynewaynedunncom

SDCSR Implementation Challenges

more than a warm fuzzy issue Spending isnrsquot the answer

Plan

Framework

System

Results

Solving social problems Objectives

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Beyond Beads and Trinkets ndash BC Mining Review

A lsquohow torsquo article on mining and CSR

Wayne Dunn

BP Venezuela Indigenous Relations ndash Meeting the Challenge Responsibly and Sustainably

Situational assessment and strategic plan for BP Venezuela Authorized for release by BP

Wayne Dunn

Cameco Community Relations Report

Situational assessment and management strategy Authorized for release by Cameco

Wayne Dunn

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author Beyond Beads lsquon Trinkets A systematic approach to managing community relations

A conference paper describing a systematic approach to community relations management helping companies to methodically develop mutually beneficial relationships with local communities and interests (this is one of the earliest papers on this subject ndash written in 1998)

Wayne Dunn

The costs of conflict with local communities in the extractive industry

Analysis of the cost of community conflicts in the Extractive Sector

Rachel Davis and Daniel M Franks

Creating Shared Value

Harvard Business Review interview with Michael Porter

Video

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Social License Its all about value

Discussion on Social License and shareholder Value

Wayne Dunn

Its about Development Commentary on the CIDAMining Company issue

Wayne Dunn

Integrating corporate strategy and social responsibilitymdashmarket returns from stakeholder engagement

Discussion and analysis on market returns on stakeholder engagement

Witold J Henisz Sinziana Dorobantu and Lite J Narty

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

McGill Reporter ndash Four Burning Questions Wayne Dunn on CSR

Discussion on CSR Wayne Dunn

Miningrsquos contribution to sustainable development ndashan overview

Discussion paper prepared by the International Council on Mining and Metals

Millennium Development Goals

United Nations

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Mining and Agriculture Development

A short lsquohow torsquo guide for mining projects to engage with the local agriculture sector

Al Hingston

PDSA Social Value Brochure

Brochure on social value created by Placer Dome South Africa

Placer Dome

The Value of Social License

Opinion piece published in Northern Miner

Wayne Dunn

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Golden Opportunity When a Canadian multinational laid off hundreds of gold miners in South Africa it went many extra miles to help them get back on their feet

Stanford Business School Case Study on Placer Dome in South Africa

Wayne Dunn

The Changing Resource Development Paradigm Maximizing Sustainable Local Benefits from Resource Development

Strategic thought piece prepared for the government of British Columbia Canada

Wayne Dunn

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

The Disappearing Barriers Between Business And Non-profits Are Driving Innovation

Discussion paper

Katherine Pikus

When Condoms are not enough

World Bank staff magazine article on Placer Dome and South African mining industryrsquos work with HIVAIDS

Craig Andrews

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

MINING AND LOCAL ECONOMIC DEVELOPMENT IN PAPUA NEW GUINEA Preliminary Research on a Potential Pilot Project in Porgera and Lihir

Strategic research and action plan on mining and local economic development in Papua New Guinea prepared for the World Bank

Wayne Dunn

waynewaynedunncom

What we covered

We 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) Publicprivatecivil society collaboration ndash case study

and discussion (CIDA and Mining Companies) Open discussion on topics of interest (time permitting)

waynewaynedunncom

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 howwhy 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

waynewaynedunncom

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 howwhy 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

waynewaynedunncom

Alignment around Shared Value For shareholders For Communities For People For Governments

Private Sector Contributions To International Development

Remember

  • Private Sector Contributions To International Development
  • Session Objectives
  • Map of the morning How we will try to meet the objectives
  • Slide Number 4
  • What is ODA and FDI
  • What is ODA and FDI
  • Why discuss Private Sector Contribution anyway
  • FDIBusiness Outcomes
  • Intention and Strategy Make a Difference
  • Why does the private sector care
  • Community Consultation and Value
  • Itrsquos Real Money
  • CSR is a Value Strategy
  • Social License Failures cost
  • Why is CSR happening
  • The Mining World Has Changed
  • CSR is a complicated space
  • CSR amp Social License
  • Role of business is changing (click image to play video)
  • Case Studies (of successes)
  • Slide Number 21
  • Uranium Industry in Northern Saskatchewan
  • Challenging area
  • Challenging Times
  • Cameco in 1998
  • Cameco in Northern Saskatchewan (2010)
  • So how did Cameco and the industry do it
  • Placer Dome South Africa
  • Slide Number 29
  • Background
  • Background (cont)
  • Families amp Communities must benefit from mining
  • The Care Project
  • Implications
  • Slide Number 35
  • The Initial 4-Step Plan
  • Reality was different than we expected
  • Reality was different than expected
  • Meeting the challenges
  • TheProcess
  • Some results
  • Chicken raising business
  • Furniture making
  • Unique training programs
  • Rice farming in Mozambique
  • Spaza (convenience) shop
  • And the business value ishellip
  • Slide Number 48
  • What was in it for Placer Dome
  • And then there is HIVAIDS
  • HIVAIDS Facts (in 2000)
  • HIVAIDS Impact
  • HIVAIDS and Gold Mining
  • HIVAIDS Programming
  • Minesite Program
  • Minesite Program
  • Current Community Program
  • Community Mobile Clinic
  • And when HIV prevention doesnrsquot work
  • Industry Home Based Care
  • Home Based Care
  • INDUSTRY HOME BASED CARE RESULTS(Year One)
  • Overview of Placer Dome AIDS Programming
  • Slide Number 64
  • HIVAIDS and Rural Areas
  • HIVAIDS and Rural Areas
  • Reputational Results for Placer Dome
  • Where to next
  • Planned Program
  • Care Positive Summary
  • Andhellip
  • MDG Impacts of Placer Dome in South Africa
  • One thing leads to another
  • PNG HIVAIDS
  • PNG Outcomes (or outputs ndash Irsquom never sure)
  • Slide Number 76
  • PNG AIDS mission to South Africa
  • MDG Impacts of PNG HIVAIDS work
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • MDG Impacts of Eldorado Gold
  • Underwater Logging in Ghana
  • Private Sector and International Development
  • Group Exercise
  • Slide Number 87
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • What we covered
  • Session Objectives
  • Session Objectives
  • Remember
Page 20: Private Sector Contributions To International Development – McGill Executive Education Program Lecture

waynewaynedunncom

Case Studies (of successes)

Cameco in Northern Saskatchewan ndash indigenous employment and development (Industry Social License) Placer Dome South Africa ndash community development and

womenrsquos empowerment HIVAIDS programming leadership Placer Dome in Papua New Guinea ndash leading public private

partnerships in HIVAIDS programming (and southsouth cooperation) Eldorado Gold in Turkey ndash supporting community priorities CSR Developments in Ghana ndash underwater logging and

social license

waynewaynedunncom

1 Eradicate extreme poverty and hunger 2 Achieve universal primary education 3 Promote gender equality and empower women 4 Reduce child mortality 5 Improve maternal health 6 Combat HIVAIDS malaria and other diseass 7 Ensure environmental sustainability 8 Develop a global partnership for development

waynewaynedunncom

Uranium Industry in Northern Saskatchewan Huge remote area (larger than all but five US States (Alaska Texas California Montana and New Mexico)

Waynersquos World

waynewaynedunncom

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

waynewaynedunncom

Challenging Times

Strong opposition to industry developing bull From Europe bull From within governing party

Industry had difficulties from all sides bull Local stakeholders didnrsquot have the capacity to engage

productively in the industry bull Early days of CSR (1980s) and companies largely didnrsquot

realize the importance of local engagement and value creation

waynewaynedunncom

Cameco in 1998

Camecorsquos approach has transformed the socio-economic well-being of Indigenous Peoples in Northern Saskatchewan

29 30

34

37 3739

42 42 43 44

20

25

30

35

40

45

50

1989 1990 1991 1992 1993 1994 1995 1996 1997 1998(Aug)

Perc

enta

ge o

f Tot

al W

orkf

orce

Cameco Aboriginal Employment(includes permanent contractor workforce)

waynewaynedunncom

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 $25 million to northern and aboriginal

initiatives for youth health and wellness education and literacy and culture and recreation Provided $100000 in scholarships to post-secondary

students

waynewaynedunncom

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 ndash NRT Trucking Skunk workssecret meetings Overcoming culture and practice barriers (drilling

underground mining etc) BHAGs Necessity

waynewaynedunncom Slide 28

Placer Dome South Africa

Case study of innovative developmental CSR Demonstrate application of key CSR principles

CSRSustainability Policy Strategic interventions vs shotgun approaches Impact metrics vs expense metrics Partnership strategies (financial operational technical) Leadership and leverage

Slide 29

Overview

bull Background ndash how did this get started

bull The Care Project ndashDeveloping and implementing the plan (challenges partners learnings) ndashBusiness value created

bull HIVAIDS ndash The Crisis and why does it matter ndash Programs and activities

Slide 30

Background 1990s saw massive changes in South

African mining industry ndash over 100000 jobs lost as the industry restructured 1999 ndash Placer Dome purchased a 50

interest in South Deep (WAL) a mine located just outside Johannesburg bull 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 31

Background (cont) In late 1999 after detailed study management

realized that economic reality dictated major restructuring at South Deep

13 of the South Deep workforce (over 2500) workers were retrenched bull 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 ndash that the commitment went

BEYOND THE PAYCHECK

waynewaynedunncom Slide 32

Families amp Communities must benefit from mining

Slide 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 HIVAIDS 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$36 million) budget was established

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

waynewaynedunncom Slide 35

The Mine

2560 Retrenchees bullMozambique bullLesotho bullSouth Africa bullSwaziland bullBotswana

How to successfully provide socio-economic support across remote rural regions of five countries

waynewaynedunncom Slide 36

The Initial 4-Step Plan 1 Consultations with retrenchees in their villages 2 Recruit (from amongst the retrenchees) a group

of 25-30 fieldworkers who would provide frontline support to the retrenchees and their families

3 Locate and register the retrenchees 4 Provide them with training and support to enable

them to become economically active

All of the above to be done in partnership with MDA TEBA and other partners

waynewaynedunncom Slide 37

Reality was different than we expected Retrenchees and their

Unions were still angry over the contested retrenchment Retrencheesrsquo homes were

difficult to locate and registration was often problematic

Consultations with retrenchees

Walking to a remote retrenchee homestead in Lesotho

Slide 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 HIVAIDS Fieldworker training programs Retrenchee education levels Centralized delivery didnrsquot work Project was under-financed We couldnrsquot do it in two years Etc

Slide 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

waynewaynedunncom Slide 40

The Process

Business Operation1 Ongoing availability of Technical Assistance and Business Counselling2 Ongoing faclitiation of skills training needs (ie business agriculture vocational etc)

Decision on Economic Option

Employment StreamEnterprise Stream

Evaluation of Micro Finance Application

Retrenchee is Re-Integrated and Economically Active

PersonalEconomic Plan

Prepared ampAssessed

PersonalEmployment Plan

Prepared

Business amp Financing Plan

Prepared

Employment Planning amp Preparation1 Identification of Employment Options2 Skills Training (VocationalAgricultural etc)3 Employment Counseling Placement (Job searchResume etc)

Business Planning amp Preparation1 Business Orientation a) Introduction to Business b) SkillsProduct Training2 Develop Draft Business Plan (to be reviewed with Counselor) (plan will contain market assessment financial operational and skills upgrading plan)3 Preparation of Micro-Finance Application

Orientation and Awareness Phase1 Registration amp Homestead Visits2 District Counselling Sessions3 Open DaysCareer Fairs4 Financial Lifes Skills Training5 Feedback and Choices Session

Ongoing Processes

Follow-up sessions activities to monitor effectiveness of interventions

Communication and consultation with stakeholders Continuous improvement process (review feedback enhance programs procedures processes)

13-step process Delivered 18 times Across Five countries

Slide 41

Some results 92 of the retrenchees were located

and registered 57 of those (1250) are economically

active 65 (1556) 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 42

Chicken raising business

Slide 43

Furniture making

waynewaynedunncom Slide 44

Unique training programs

waynewaynedunncom Slide 45

Rice farming in Mozambique

Slide 46

Spaza (convenience) shop

Slide 47

And the business value ishellip HIVAIDS 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 ndash 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

waynewaynedunncom Slide 48

ldquoThe project changed the social face of the South African Mining Industryrdquo

Kgosietsile Mogaki

South African Ministry of Minerals and Energy

waynewaynedunncom Slide 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 globally

Through 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 50

And then there is HIVAIDS

RSA ACCOUNTED FOR NEARLY 1 IN 8 OF THE NEW HIV INFECTIONS THAT OCCURRED WORLD WIDE IN 2000

HIV+ PREVALENCE RATE IN WOMEN ATTENDING ANTE-NATAL CLINICS INCREASED FROM 07 IN 1990 TO 248 IN 2001

AVERAGE OF 1700 NEW INFECTIONS PER DAY

LIFE EXPECTANCY WILL DECLINE FROM 65 TO 40 BY 2011

65

40

0

10

20

30

40

50

60

70

2001 2011

Life Expectancy

waynewaynedunncom Slide 51

HIVAIDS Facts (in 2000)

ESTIMATED THAT 12 OF TOTAL RSA POPULATION AND 25 OF MINEWORKERS ARE HIV+

ALREADY 400000 PEOPLE ARE AIDS SICK AND THIS WILL INCREASE TO 14 M BY 2010

YOUNG WOMEN PARTICULARLY VULNERABLE ndash 239 AGED BETWEEN 15 ndash 49 ALREADY INFECTED AND WILL RISE TO 297 BY 2007

AIDS ORPHANS AT PRESENT AMOUNT TO 660000+ AND WILL RISE TO 18M BY 2015

ACCUMULATIVE AIDS DEATHS WILL RISE TO 9M BY 2015

Slide 52

HIVAIDS Impact REDUCED ECONOMIC GROWTH RATE ndash 2010 GDP 20 below a non AIDS

scenario REDUCED POPULATION ndash RSA population 10M smaller than non AIDS scenario SKYROCKETING DEMANDS ON PUBLIC HEALTH SYSTEM - RADICALLY CHANGED PRIVATE SPENDING PATTERNS ndash to healthcare and

funeral costs IMPACT ON SOCIO-ECONOMIC STABILITY (orphans)

HIVAIDS 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 Africa today Nobody can afford to ignore it

Slide 53

HIVAIDS and Gold Mining

$10oz impact if nothing is done (5 of production costs) ~$3oz with maximum

intervention Impact on social and political

stability

Slide 54

HIVAIDS Programming Placer Dome program ndash

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 55

Minesite Program

TRAINING AND EDUCATION

STI amp TB TREATMENT

CONDOM DISTRIBUTION

PEER EDUCATION

VOLUNTARY COUNSELING AND TESTING (VCT)

WELLNESS PROGRAM

MEDICAL REPATRIATION

waynewaynedunncom Slide 56

Minesite Program

waynewaynedunncom Slide 57

Current Community Program

AWARENESS AND EDUCATION PROGRAMS

MOBILE CLINIC

CONDOM amp FEMIDOM DISTRIBUTION

PERIODIC PRESUMPTIVE TREATMENT (PPT)

TREATMENT FOR SEXUALLY TRANSMITTED INFECTIONS ( STI)

waynewaynedunncom Slide 58

COMMUNITY PROGRAM

Community Mobile Clinic

waynewaynedunncom Slide 59

And when HIV prevention doesnrsquot 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 60

Industry Home Based Care

TEBA INFRA-STRUCTURE

TRAINING OF CARE GIVERS

SUPPORT STRUCTURE ndash QUALIFIED STAFF

MONTHLY MEDICATION

WORK WITH OTHER STAKEHOLDERS (EG TRADITIONAL HEALERS)

WORLD BANK DEVELOPMENT INNOVATION AWARD

waynewaynedunncom Slide 61

Home Based Care

Slide 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

waynewaynedunncom Slide 63

Overview of Placer Dome AIDS Programming SOUTH DEEP Sustainable Development Department

bullVoluntary Counseling and testing HIV Negative bullContinue working

On Mine Program Community Program

Modified work program Farm bullAgricultural work Environmental

Medical repatriation

Home Based Care

Benefits Care Positive

HBC EC OPP

Back to work or Re skilled

Wellness Program

waynewaynedunncom Slide 64

But what happens to children and families when the breadwinner canrsquot

work

Slide 65

HIVAIDS and Rural Areas HIVAIDS 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

Slide 66

HIVAIDS 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

waynewaynedunncom

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 CSREthical

Project Award (2004) Numerous other awards Stanford Case Study

waynewaynedunncom Slide 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 69

Planned Program

Care Positive Integrate the Home Based Care

project with the Care process and launch as a fee for service based program to address the social and 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

Care Process

+

Home Based Care

=

Care Positive

waynewaynedunncom Slide 70

Care Positive Summary

waynewaynedunncom

Andhellip 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 $100000 and considerable reputational capital into them Industry went forward with modified HIVAIDS

programming but huge developmental impacts were lost

waynewaynedunncom Slide 72

MDG Impacts of Placer Dome in South Africa

1 Poverty and hunger 2 Some impact on primary education (School

feeding program) 3 Promote gender equality and empower women 4 Reduce child mortality 5 Improve maternal health 6 Combat HIVAIDS malaria and other diseass 7 Ensure environmental sustainability 8 Develop a global partnership for development

(Placer Dome CIDA Civil Society NGOs)

waynewaynedunncom

One thing leads to another

World Bank observed how Placer Domersquos leadership on HIVAIDS 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

waynewaynedunncom

PNG HIVAIDS Scoping mission to

determine what might be done and how Enthusiastic interest from

industry government multi-laterals (WHO UNAIDS World Banketc) ODA (AusAID) CIDA partnered with Place Dome to develop an

HIVAIDS strategy for PNG that integrated industry public sector civil society and international community

waynewaynedunncom

PNG Outcomes (or outputs ndash Irsquom never sure) Partnership with Mining

Industry Civil Society WHO UNAIDS UNDP World Bank PNG AIDS AusAID Oil Palm Industry etc National workshop on

HIVAIDS and publicprivate partnerships SouthSouth Collaboration

Industry government civil society international community study trip to South Africa

waynewaynedunncom

waynewaynedunncom

PNG AIDS mission to South Africa

waynewaynedunncom Slide 78

MDG Impacts of PNG HIVAIDS work

1 Poverty and hunger (nutritional supplements) 2 Some impact on primary education (peripheral) 3 Promote gender equality and empower women 4 Reduce child mortality 5 Improve maternal health 6 Combat HIVAIDS malaria and other diseass 7 Ensure environmental sustainability 8 Develop a global partnership for development

(Placer Dome CIDA Civil Society NGOs)

waynewaynedunncom

Eldorado Gold in Turkey

Major gold find in WestCentral Turkey No successful

mining project launched in decades Eurogold project

built launched and halted by community action in late 1990s ndash still mothballed

UsakKislidag Minesite

Eurogold site

waynewaynedunncom

Eldorado Gold in Turkey

Isolated rural area Nearly half of nearby

communities opposed to mine development Agriculture primary

economic activity in rural communities ndash smallmicro family farms

waynewaynedunncom

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

waynewaynedunncom

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 $075 to $1325 Opened second mine in Turkey

bull Able to deal with controversial watershed issues after relationship success in Usak

waynewaynedunncom Slide 83

MDG Impacts of Eldorado Gold

1 Poverty and hunger (minimal) 2 Some impact on primary education (peripheral) 3 Promote gender equality and empower women 4 Reduce child mortality 5 Improve maternal health 6 Combat HIVAIDS malaria and other diseass 7 Ensure environmental sustainability 8 Develop a global partnership for development

(Placer Dome CIDA Civil Society NGOs)

waynewaynedunncom

Underwater Logging in Ghana

waynewaynedunncom

Private Sector and International Development

Private sector especially resource extraction has a very mixed record bull Some horrendous disasters (Nigeria Warao Peoples in

Venezuela etc) bull Some great successes (Placer Dome Care project

mining and HIVAIDS 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

waynewaynedunncom

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

interestsobjectives overlap

waynewaynedunncom

SDCSR Implementation Challenges

more than a warm fuzzy issue Spending isnrsquot the answer

Plan

Framework

System

Results

Solving social problems Objectives

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Beyond Beads and Trinkets ndash BC Mining Review

A lsquohow torsquo article on mining and CSR

Wayne Dunn

BP Venezuela Indigenous Relations ndash Meeting the Challenge Responsibly and Sustainably

Situational assessment and strategic plan for BP Venezuela Authorized for release by BP

Wayne Dunn

Cameco Community Relations Report

Situational assessment and management strategy Authorized for release by Cameco

Wayne Dunn

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author Beyond Beads lsquon Trinkets A systematic approach to managing community relations

A conference paper describing a systematic approach to community relations management helping companies to methodically develop mutually beneficial relationships with local communities and interests (this is one of the earliest papers on this subject ndash written in 1998)

Wayne Dunn

The costs of conflict with local communities in the extractive industry

Analysis of the cost of community conflicts in the Extractive Sector

Rachel Davis and Daniel M Franks

Creating Shared Value

Harvard Business Review interview with Michael Porter

Video

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Social License Its all about value

Discussion on Social License and shareholder Value

Wayne Dunn

Its about Development Commentary on the CIDAMining Company issue

Wayne Dunn

Integrating corporate strategy and social responsibilitymdashmarket returns from stakeholder engagement

Discussion and analysis on market returns on stakeholder engagement

Witold J Henisz Sinziana Dorobantu and Lite J Narty

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

McGill Reporter ndash Four Burning Questions Wayne Dunn on CSR

Discussion on CSR Wayne Dunn

Miningrsquos contribution to sustainable development ndashan overview

Discussion paper prepared by the International Council on Mining and Metals

Millennium Development Goals

United Nations

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Mining and Agriculture Development

A short lsquohow torsquo guide for mining projects to engage with the local agriculture sector

Al Hingston

PDSA Social Value Brochure

Brochure on social value created by Placer Dome South Africa

Placer Dome

The Value of Social License

Opinion piece published in Northern Miner

Wayne Dunn

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Golden Opportunity When a Canadian multinational laid off hundreds of gold miners in South Africa it went many extra miles to help them get back on their feet

Stanford Business School Case Study on Placer Dome in South Africa

Wayne Dunn

The Changing Resource Development Paradigm Maximizing Sustainable Local Benefits from Resource Development

Strategic thought piece prepared for the government of British Columbia Canada

Wayne Dunn

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

The Disappearing Barriers Between Business And Non-profits Are Driving Innovation

Discussion paper

Katherine Pikus

When Condoms are not enough

World Bank staff magazine article on Placer Dome and South African mining industryrsquos work with HIVAIDS

Craig Andrews

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

MINING AND LOCAL ECONOMIC DEVELOPMENT IN PAPUA NEW GUINEA Preliminary Research on a Potential Pilot Project in Porgera and Lihir

Strategic research and action plan on mining and local economic development in Papua New Guinea prepared for the World Bank

Wayne Dunn

waynewaynedunncom

What we covered

We 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) Publicprivatecivil society collaboration ndash case study

and discussion (CIDA and Mining Companies) Open discussion on topics of interest (time permitting)

waynewaynedunncom

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 howwhy 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

waynewaynedunncom

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 howwhy 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

waynewaynedunncom

Alignment around Shared Value For shareholders For Communities For People For Governments

Private Sector Contributions To International Development

Remember

  • Private Sector Contributions To International Development
  • Session Objectives
  • Map of the morning How we will try to meet the objectives
  • Slide Number 4
  • What is ODA and FDI
  • What is ODA and FDI
  • Why discuss Private Sector Contribution anyway
  • FDIBusiness Outcomes
  • Intention and Strategy Make a Difference
  • Why does the private sector care
  • Community Consultation and Value
  • Itrsquos Real Money
  • CSR is a Value Strategy
  • Social License Failures cost
  • Why is CSR happening
  • The Mining World Has Changed
  • CSR is a complicated space
  • CSR amp Social License
  • Role of business is changing (click image to play video)
  • Case Studies (of successes)
  • Slide Number 21
  • Uranium Industry in Northern Saskatchewan
  • Challenging area
  • Challenging Times
  • Cameco in 1998
  • Cameco in Northern Saskatchewan (2010)
  • So how did Cameco and the industry do it
  • Placer Dome South Africa
  • Slide Number 29
  • Background
  • Background (cont)
  • Families amp Communities must benefit from mining
  • The Care Project
  • Implications
  • Slide Number 35
  • The Initial 4-Step Plan
  • Reality was different than we expected
  • Reality was different than expected
  • Meeting the challenges
  • TheProcess
  • Some results
  • Chicken raising business
  • Furniture making
  • Unique training programs
  • Rice farming in Mozambique
  • Spaza (convenience) shop
  • And the business value ishellip
  • Slide Number 48
  • What was in it for Placer Dome
  • And then there is HIVAIDS
  • HIVAIDS Facts (in 2000)
  • HIVAIDS Impact
  • HIVAIDS and Gold Mining
  • HIVAIDS Programming
  • Minesite Program
  • Minesite Program
  • Current Community Program
  • Community Mobile Clinic
  • And when HIV prevention doesnrsquot work
  • Industry Home Based Care
  • Home Based Care
  • INDUSTRY HOME BASED CARE RESULTS(Year One)
  • Overview of Placer Dome AIDS Programming
  • Slide Number 64
  • HIVAIDS and Rural Areas
  • HIVAIDS and Rural Areas
  • Reputational Results for Placer Dome
  • Where to next
  • Planned Program
  • Care Positive Summary
  • Andhellip
  • MDG Impacts of Placer Dome in South Africa
  • One thing leads to another
  • PNG HIVAIDS
  • PNG Outcomes (or outputs ndash Irsquom never sure)
  • Slide Number 76
  • PNG AIDS mission to South Africa
  • MDG Impacts of PNG HIVAIDS work
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • MDG Impacts of Eldorado Gold
  • Underwater Logging in Ghana
  • Private Sector and International Development
  • Group Exercise
  • Slide Number 87
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • What we covered
  • Session Objectives
  • Session Objectives
  • Remember
Page 21: Private Sector Contributions To International Development – McGill Executive Education Program Lecture

waynewaynedunncom

1 Eradicate extreme poverty and hunger 2 Achieve universal primary education 3 Promote gender equality and empower women 4 Reduce child mortality 5 Improve maternal health 6 Combat HIVAIDS malaria and other diseass 7 Ensure environmental sustainability 8 Develop a global partnership for development

waynewaynedunncom

Uranium Industry in Northern Saskatchewan Huge remote area (larger than all but five US States (Alaska Texas California Montana and New Mexico)

Waynersquos World

waynewaynedunncom

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

waynewaynedunncom

Challenging Times

Strong opposition to industry developing bull From Europe bull From within governing party

Industry had difficulties from all sides bull Local stakeholders didnrsquot have the capacity to engage

productively in the industry bull Early days of CSR (1980s) and companies largely didnrsquot

realize the importance of local engagement and value creation

waynewaynedunncom

Cameco in 1998

Camecorsquos approach has transformed the socio-economic well-being of Indigenous Peoples in Northern Saskatchewan

29 30

34

37 3739

42 42 43 44

20

25

30

35

40

45

50

1989 1990 1991 1992 1993 1994 1995 1996 1997 1998(Aug)

Perc

enta

ge o

f Tot

al W

orkf

orce

Cameco Aboriginal Employment(includes permanent contractor workforce)

waynewaynedunncom

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 $25 million to northern and aboriginal

initiatives for youth health and wellness education and literacy and culture and recreation Provided $100000 in scholarships to post-secondary

students

waynewaynedunncom

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 ndash NRT Trucking Skunk workssecret meetings Overcoming culture and practice barriers (drilling

underground mining etc) BHAGs Necessity

waynewaynedunncom Slide 28

Placer Dome South Africa

Case study of innovative developmental CSR Demonstrate application of key CSR principles

CSRSustainability Policy Strategic interventions vs shotgun approaches Impact metrics vs expense metrics Partnership strategies (financial operational technical) Leadership and leverage

Slide 29

Overview

bull Background ndash how did this get started

bull The Care Project ndashDeveloping and implementing the plan (challenges partners learnings) ndashBusiness value created

bull HIVAIDS ndash The Crisis and why does it matter ndash Programs and activities

Slide 30

Background 1990s saw massive changes in South

African mining industry ndash over 100000 jobs lost as the industry restructured 1999 ndash Placer Dome purchased a 50

interest in South Deep (WAL) a mine located just outside Johannesburg bull 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 31

Background (cont) In late 1999 after detailed study management

realized that economic reality dictated major restructuring at South Deep

13 of the South Deep workforce (over 2500) workers were retrenched bull 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 ndash that the commitment went

BEYOND THE PAYCHECK

waynewaynedunncom Slide 32

Families amp Communities must benefit from mining

Slide 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 HIVAIDS 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$36 million) budget was established

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

waynewaynedunncom Slide 35

The Mine

2560 Retrenchees bullMozambique bullLesotho bullSouth Africa bullSwaziland bullBotswana

How to successfully provide socio-economic support across remote rural regions of five countries

waynewaynedunncom Slide 36

The Initial 4-Step Plan 1 Consultations with retrenchees in their villages 2 Recruit (from amongst the retrenchees) a group

of 25-30 fieldworkers who would provide frontline support to the retrenchees and their families

3 Locate and register the retrenchees 4 Provide them with training and support to enable

them to become economically active

All of the above to be done in partnership with MDA TEBA and other partners

waynewaynedunncom Slide 37

Reality was different than we expected Retrenchees and their

Unions were still angry over the contested retrenchment Retrencheesrsquo homes were

difficult to locate and registration was often problematic

Consultations with retrenchees

Walking to a remote retrenchee homestead in Lesotho

Slide 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 HIVAIDS Fieldworker training programs Retrenchee education levels Centralized delivery didnrsquot work Project was under-financed We couldnrsquot do it in two years Etc

Slide 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

waynewaynedunncom Slide 40

The Process

Business Operation1 Ongoing availability of Technical Assistance and Business Counselling2 Ongoing faclitiation of skills training needs (ie business agriculture vocational etc)

Decision on Economic Option

Employment StreamEnterprise Stream

Evaluation of Micro Finance Application

Retrenchee is Re-Integrated and Economically Active

PersonalEconomic Plan

Prepared ampAssessed

PersonalEmployment Plan

Prepared

Business amp Financing Plan

Prepared

Employment Planning amp Preparation1 Identification of Employment Options2 Skills Training (VocationalAgricultural etc)3 Employment Counseling Placement (Job searchResume etc)

Business Planning amp Preparation1 Business Orientation a) Introduction to Business b) SkillsProduct Training2 Develop Draft Business Plan (to be reviewed with Counselor) (plan will contain market assessment financial operational and skills upgrading plan)3 Preparation of Micro-Finance Application

Orientation and Awareness Phase1 Registration amp Homestead Visits2 District Counselling Sessions3 Open DaysCareer Fairs4 Financial Lifes Skills Training5 Feedback and Choices Session

Ongoing Processes

Follow-up sessions activities to monitor effectiveness of interventions

Communication and consultation with stakeholders Continuous improvement process (review feedback enhance programs procedures processes)

13-step process Delivered 18 times Across Five countries

Slide 41

Some results 92 of the retrenchees were located

and registered 57 of those (1250) are economically

active 65 (1556) 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 42

Chicken raising business

Slide 43

Furniture making

waynewaynedunncom Slide 44

Unique training programs

waynewaynedunncom Slide 45

Rice farming in Mozambique

Slide 46

Spaza (convenience) shop

Slide 47

And the business value ishellip HIVAIDS 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 ndash 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

waynewaynedunncom Slide 48

ldquoThe project changed the social face of the South African Mining Industryrdquo

Kgosietsile Mogaki

South African Ministry of Minerals and Energy

waynewaynedunncom Slide 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 globally

Through 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 50

And then there is HIVAIDS

RSA ACCOUNTED FOR NEARLY 1 IN 8 OF THE NEW HIV INFECTIONS THAT OCCURRED WORLD WIDE IN 2000

HIV+ PREVALENCE RATE IN WOMEN ATTENDING ANTE-NATAL CLINICS INCREASED FROM 07 IN 1990 TO 248 IN 2001

AVERAGE OF 1700 NEW INFECTIONS PER DAY

LIFE EXPECTANCY WILL DECLINE FROM 65 TO 40 BY 2011

65

40

0

10

20

30

40

50

60

70

2001 2011

Life Expectancy

waynewaynedunncom Slide 51

HIVAIDS Facts (in 2000)

ESTIMATED THAT 12 OF TOTAL RSA POPULATION AND 25 OF MINEWORKERS ARE HIV+

ALREADY 400000 PEOPLE ARE AIDS SICK AND THIS WILL INCREASE TO 14 M BY 2010

YOUNG WOMEN PARTICULARLY VULNERABLE ndash 239 AGED BETWEEN 15 ndash 49 ALREADY INFECTED AND WILL RISE TO 297 BY 2007

AIDS ORPHANS AT PRESENT AMOUNT TO 660000+ AND WILL RISE TO 18M BY 2015

ACCUMULATIVE AIDS DEATHS WILL RISE TO 9M BY 2015

Slide 52

HIVAIDS Impact REDUCED ECONOMIC GROWTH RATE ndash 2010 GDP 20 below a non AIDS

scenario REDUCED POPULATION ndash RSA population 10M smaller than non AIDS scenario SKYROCKETING DEMANDS ON PUBLIC HEALTH SYSTEM - RADICALLY CHANGED PRIVATE SPENDING PATTERNS ndash to healthcare and

funeral costs IMPACT ON SOCIO-ECONOMIC STABILITY (orphans)

HIVAIDS 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 Africa today Nobody can afford to ignore it

Slide 53

HIVAIDS and Gold Mining

$10oz impact if nothing is done (5 of production costs) ~$3oz with maximum

intervention Impact on social and political

stability

Slide 54

HIVAIDS Programming Placer Dome program ndash

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 55

Minesite Program

TRAINING AND EDUCATION

STI amp TB TREATMENT

CONDOM DISTRIBUTION

PEER EDUCATION

VOLUNTARY COUNSELING AND TESTING (VCT)

WELLNESS PROGRAM

MEDICAL REPATRIATION

waynewaynedunncom Slide 56

Minesite Program

waynewaynedunncom Slide 57

Current Community Program

AWARENESS AND EDUCATION PROGRAMS

MOBILE CLINIC

CONDOM amp FEMIDOM DISTRIBUTION

PERIODIC PRESUMPTIVE TREATMENT (PPT)

TREATMENT FOR SEXUALLY TRANSMITTED INFECTIONS ( STI)

waynewaynedunncom Slide 58

COMMUNITY PROGRAM

Community Mobile Clinic

waynewaynedunncom Slide 59

And when HIV prevention doesnrsquot 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 60

Industry Home Based Care

TEBA INFRA-STRUCTURE

TRAINING OF CARE GIVERS

SUPPORT STRUCTURE ndash QUALIFIED STAFF

MONTHLY MEDICATION

WORK WITH OTHER STAKEHOLDERS (EG TRADITIONAL HEALERS)

WORLD BANK DEVELOPMENT INNOVATION AWARD

waynewaynedunncom Slide 61

Home Based Care

Slide 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

waynewaynedunncom Slide 63

Overview of Placer Dome AIDS Programming SOUTH DEEP Sustainable Development Department

bullVoluntary Counseling and testing HIV Negative bullContinue working

On Mine Program Community Program

Modified work program Farm bullAgricultural work Environmental

Medical repatriation

Home Based Care

Benefits Care Positive

HBC EC OPP

Back to work or Re skilled

Wellness Program

waynewaynedunncom Slide 64

But what happens to children and families when the breadwinner canrsquot

work

Slide 65

HIVAIDS and Rural Areas HIVAIDS 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

Slide 66

HIVAIDS 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

waynewaynedunncom

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 CSREthical

Project Award (2004) Numerous other awards Stanford Case Study

waynewaynedunncom Slide 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 69

Planned Program

Care Positive Integrate the Home Based Care

project with the Care process and launch as a fee for service based program to address the social and 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

Care Process

+

Home Based Care

=

Care Positive

waynewaynedunncom Slide 70

Care Positive Summary

waynewaynedunncom

Andhellip 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 $100000 and considerable reputational capital into them Industry went forward with modified HIVAIDS

programming but huge developmental impacts were lost

waynewaynedunncom Slide 72

MDG Impacts of Placer Dome in South Africa

1 Poverty and hunger 2 Some impact on primary education (School

feeding program) 3 Promote gender equality and empower women 4 Reduce child mortality 5 Improve maternal health 6 Combat HIVAIDS malaria and other diseass 7 Ensure environmental sustainability 8 Develop a global partnership for development

(Placer Dome CIDA Civil Society NGOs)

waynewaynedunncom

One thing leads to another

World Bank observed how Placer Domersquos leadership on HIVAIDS 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

waynewaynedunncom

PNG HIVAIDS Scoping mission to

determine what might be done and how Enthusiastic interest from

industry government multi-laterals (WHO UNAIDS World Banketc) ODA (AusAID) CIDA partnered with Place Dome to develop an

HIVAIDS strategy for PNG that integrated industry public sector civil society and international community

waynewaynedunncom

PNG Outcomes (or outputs ndash Irsquom never sure) Partnership with Mining

Industry Civil Society WHO UNAIDS UNDP World Bank PNG AIDS AusAID Oil Palm Industry etc National workshop on

HIVAIDS and publicprivate partnerships SouthSouth Collaboration

Industry government civil society international community study trip to South Africa

waynewaynedunncom

waynewaynedunncom

PNG AIDS mission to South Africa

waynewaynedunncom Slide 78

MDG Impacts of PNG HIVAIDS work

1 Poverty and hunger (nutritional supplements) 2 Some impact on primary education (peripheral) 3 Promote gender equality and empower women 4 Reduce child mortality 5 Improve maternal health 6 Combat HIVAIDS malaria and other diseass 7 Ensure environmental sustainability 8 Develop a global partnership for development

(Placer Dome CIDA Civil Society NGOs)

waynewaynedunncom

Eldorado Gold in Turkey

Major gold find in WestCentral Turkey No successful

mining project launched in decades Eurogold project

built launched and halted by community action in late 1990s ndash still mothballed

UsakKislidag Minesite

Eurogold site

waynewaynedunncom

Eldorado Gold in Turkey

Isolated rural area Nearly half of nearby

communities opposed to mine development Agriculture primary

economic activity in rural communities ndash smallmicro family farms

waynewaynedunncom

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

waynewaynedunncom

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 $075 to $1325 Opened second mine in Turkey

bull Able to deal with controversial watershed issues after relationship success in Usak

waynewaynedunncom Slide 83

MDG Impacts of Eldorado Gold

1 Poverty and hunger (minimal) 2 Some impact on primary education (peripheral) 3 Promote gender equality and empower women 4 Reduce child mortality 5 Improve maternal health 6 Combat HIVAIDS malaria and other diseass 7 Ensure environmental sustainability 8 Develop a global partnership for development

(Placer Dome CIDA Civil Society NGOs)

waynewaynedunncom

Underwater Logging in Ghana

waynewaynedunncom

Private Sector and International Development

Private sector especially resource extraction has a very mixed record bull Some horrendous disasters (Nigeria Warao Peoples in

Venezuela etc) bull Some great successes (Placer Dome Care project

mining and HIVAIDS 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

waynewaynedunncom

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

interestsobjectives overlap

waynewaynedunncom

SDCSR Implementation Challenges

more than a warm fuzzy issue Spending isnrsquot the answer

Plan

Framework

System

Results

Solving social problems Objectives

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Beyond Beads and Trinkets ndash BC Mining Review

A lsquohow torsquo article on mining and CSR

Wayne Dunn

BP Venezuela Indigenous Relations ndash Meeting the Challenge Responsibly and Sustainably

Situational assessment and strategic plan for BP Venezuela Authorized for release by BP

Wayne Dunn

Cameco Community Relations Report

Situational assessment and management strategy Authorized for release by Cameco

Wayne Dunn

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author Beyond Beads lsquon Trinkets A systematic approach to managing community relations

A conference paper describing a systematic approach to community relations management helping companies to methodically develop mutually beneficial relationships with local communities and interests (this is one of the earliest papers on this subject ndash written in 1998)

Wayne Dunn

The costs of conflict with local communities in the extractive industry

Analysis of the cost of community conflicts in the Extractive Sector

Rachel Davis and Daniel M Franks

Creating Shared Value

Harvard Business Review interview with Michael Porter

Video

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Social License Its all about value

Discussion on Social License and shareholder Value

Wayne Dunn

Its about Development Commentary on the CIDAMining Company issue

Wayne Dunn

Integrating corporate strategy and social responsibilitymdashmarket returns from stakeholder engagement

Discussion and analysis on market returns on stakeholder engagement

Witold J Henisz Sinziana Dorobantu and Lite J Narty

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

McGill Reporter ndash Four Burning Questions Wayne Dunn on CSR

Discussion on CSR Wayne Dunn

Miningrsquos contribution to sustainable development ndashan overview

Discussion paper prepared by the International Council on Mining and Metals

Millennium Development Goals

United Nations

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Mining and Agriculture Development

A short lsquohow torsquo guide for mining projects to engage with the local agriculture sector

Al Hingston

PDSA Social Value Brochure

Brochure on social value created by Placer Dome South Africa

Placer Dome

The Value of Social License

Opinion piece published in Northern Miner

Wayne Dunn

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Golden Opportunity When a Canadian multinational laid off hundreds of gold miners in South Africa it went many extra miles to help them get back on their feet

Stanford Business School Case Study on Placer Dome in South Africa

Wayne Dunn

The Changing Resource Development Paradigm Maximizing Sustainable Local Benefits from Resource Development

Strategic thought piece prepared for the government of British Columbia Canada

Wayne Dunn

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

The Disappearing Barriers Between Business And Non-profits Are Driving Innovation

Discussion paper

Katherine Pikus

When Condoms are not enough

World Bank staff magazine article on Placer Dome and South African mining industryrsquos work with HIVAIDS

Craig Andrews

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

MINING AND LOCAL ECONOMIC DEVELOPMENT IN PAPUA NEW GUINEA Preliminary Research on a Potential Pilot Project in Porgera and Lihir

Strategic research and action plan on mining and local economic development in Papua New Guinea prepared for the World Bank

Wayne Dunn

waynewaynedunncom

What we covered

We 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) Publicprivatecivil society collaboration ndash case study

and discussion (CIDA and Mining Companies) Open discussion on topics of interest (time permitting)

waynewaynedunncom

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 howwhy 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

waynewaynedunncom

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 howwhy 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

waynewaynedunncom

Alignment around Shared Value For shareholders For Communities For People For Governments

Private Sector Contributions To International Development

Remember

  • Private Sector Contributions To International Development
  • Session Objectives
  • Map of the morning How we will try to meet the objectives
  • Slide Number 4
  • What is ODA and FDI
  • What is ODA and FDI
  • Why discuss Private Sector Contribution anyway
  • FDIBusiness Outcomes
  • Intention and Strategy Make a Difference
  • Why does the private sector care
  • Community Consultation and Value
  • Itrsquos Real Money
  • CSR is a Value Strategy
  • Social License Failures cost
  • Why is CSR happening
  • The Mining World Has Changed
  • CSR is a complicated space
  • CSR amp Social License
  • Role of business is changing (click image to play video)
  • Case Studies (of successes)
  • Slide Number 21
  • Uranium Industry in Northern Saskatchewan
  • Challenging area
  • Challenging Times
  • Cameco in 1998
  • Cameco in Northern Saskatchewan (2010)
  • So how did Cameco and the industry do it
  • Placer Dome South Africa
  • Slide Number 29
  • Background
  • Background (cont)
  • Families amp Communities must benefit from mining
  • The Care Project
  • Implications
  • Slide Number 35
  • The Initial 4-Step Plan
  • Reality was different than we expected
  • Reality was different than expected
  • Meeting the challenges
  • TheProcess
  • Some results
  • Chicken raising business
  • Furniture making
  • Unique training programs
  • Rice farming in Mozambique
  • Spaza (convenience) shop
  • And the business value ishellip
  • Slide Number 48
  • What was in it for Placer Dome
  • And then there is HIVAIDS
  • HIVAIDS Facts (in 2000)
  • HIVAIDS Impact
  • HIVAIDS and Gold Mining
  • HIVAIDS Programming
  • Minesite Program
  • Minesite Program
  • Current Community Program
  • Community Mobile Clinic
  • And when HIV prevention doesnrsquot work
  • Industry Home Based Care
  • Home Based Care
  • INDUSTRY HOME BASED CARE RESULTS(Year One)
  • Overview of Placer Dome AIDS Programming
  • Slide Number 64
  • HIVAIDS and Rural Areas
  • HIVAIDS and Rural Areas
  • Reputational Results for Placer Dome
  • Where to next
  • Planned Program
  • Care Positive Summary
  • Andhellip
  • MDG Impacts of Placer Dome in South Africa
  • One thing leads to another
  • PNG HIVAIDS
  • PNG Outcomes (or outputs ndash Irsquom never sure)
  • Slide Number 76
  • PNG AIDS mission to South Africa
  • MDG Impacts of PNG HIVAIDS work
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • MDG Impacts of Eldorado Gold
  • Underwater Logging in Ghana
  • Private Sector and International Development
  • Group Exercise
  • Slide Number 87
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • What we covered
  • Session Objectives
  • Session Objectives
  • Remember
Page 22: Private Sector Contributions To International Development – McGill Executive Education Program Lecture

waynewaynedunncom

Uranium Industry in Northern Saskatchewan Huge remote area (larger than all but five US States (Alaska Texas California Montana and New Mexico)

Waynersquos World

waynewaynedunncom

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

waynewaynedunncom

Challenging Times

Strong opposition to industry developing bull From Europe bull From within governing party

Industry had difficulties from all sides bull Local stakeholders didnrsquot have the capacity to engage

productively in the industry bull Early days of CSR (1980s) and companies largely didnrsquot

realize the importance of local engagement and value creation

waynewaynedunncom

Cameco in 1998

Camecorsquos approach has transformed the socio-economic well-being of Indigenous Peoples in Northern Saskatchewan

29 30

34

37 3739

42 42 43 44

20

25

30

35

40

45

50

1989 1990 1991 1992 1993 1994 1995 1996 1997 1998(Aug)

Perc

enta

ge o

f Tot

al W

orkf

orce

Cameco Aboriginal Employment(includes permanent contractor workforce)

waynewaynedunncom

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 $25 million to northern and aboriginal

initiatives for youth health and wellness education and literacy and culture and recreation Provided $100000 in scholarships to post-secondary

students

waynewaynedunncom

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 ndash NRT Trucking Skunk workssecret meetings Overcoming culture and practice barriers (drilling

underground mining etc) BHAGs Necessity

waynewaynedunncom Slide 28

Placer Dome South Africa

Case study of innovative developmental CSR Demonstrate application of key CSR principles

CSRSustainability Policy Strategic interventions vs shotgun approaches Impact metrics vs expense metrics Partnership strategies (financial operational technical) Leadership and leverage

Slide 29

Overview

bull Background ndash how did this get started

bull The Care Project ndashDeveloping and implementing the plan (challenges partners learnings) ndashBusiness value created

bull HIVAIDS ndash The Crisis and why does it matter ndash Programs and activities

Slide 30

Background 1990s saw massive changes in South

African mining industry ndash over 100000 jobs lost as the industry restructured 1999 ndash Placer Dome purchased a 50

interest in South Deep (WAL) a mine located just outside Johannesburg bull 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 31

Background (cont) In late 1999 after detailed study management

realized that economic reality dictated major restructuring at South Deep

13 of the South Deep workforce (over 2500) workers were retrenched bull 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 ndash that the commitment went

BEYOND THE PAYCHECK

waynewaynedunncom Slide 32

Families amp Communities must benefit from mining

Slide 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 HIVAIDS 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$36 million) budget was established

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

waynewaynedunncom Slide 35

The Mine

2560 Retrenchees bullMozambique bullLesotho bullSouth Africa bullSwaziland bullBotswana

How to successfully provide socio-economic support across remote rural regions of five countries

waynewaynedunncom Slide 36

The Initial 4-Step Plan 1 Consultations with retrenchees in their villages 2 Recruit (from amongst the retrenchees) a group

of 25-30 fieldworkers who would provide frontline support to the retrenchees and their families

3 Locate and register the retrenchees 4 Provide them with training and support to enable

them to become economically active

All of the above to be done in partnership with MDA TEBA and other partners

waynewaynedunncom Slide 37

Reality was different than we expected Retrenchees and their

Unions were still angry over the contested retrenchment Retrencheesrsquo homes were

difficult to locate and registration was often problematic

Consultations with retrenchees

Walking to a remote retrenchee homestead in Lesotho

Slide 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 HIVAIDS Fieldworker training programs Retrenchee education levels Centralized delivery didnrsquot work Project was under-financed We couldnrsquot do it in two years Etc

Slide 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

waynewaynedunncom Slide 40

The Process

Business Operation1 Ongoing availability of Technical Assistance and Business Counselling2 Ongoing faclitiation of skills training needs (ie business agriculture vocational etc)

Decision on Economic Option

Employment StreamEnterprise Stream

Evaluation of Micro Finance Application

Retrenchee is Re-Integrated and Economically Active

PersonalEconomic Plan

Prepared ampAssessed

PersonalEmployment Plan

Prepared

Business amp Financing Plan

Prepared

Employment Planning amp Preparation1 Identification of Employment Options2 Skills Training (VocationalAgricultural etc)3 Employment Counseling Placement (Job searchResume etc)

Business Planning amp Preparation1 Business Orientation a) Introduction to Business b) SkillsProduct Training2 Develop Draft Business Plan (to be reviewed with Counselor) (plan will contain market assessment financial operational and skills upgrading plan)3 Preparation of Micro-Finance Application

Orientation and Awareness Phase1 Registration amp Homestead Visits2 District Counselling Sessions3 Open DaysCareer Fairs4 Financial Lifes Skills Training5 Feedback and Choices Session

Ongoing Processes

Follow-up sessions activities to monitor effectiveness of interventions

Communication and consultation with stakeholders Continuous improvement process (review feedback enhance programs procedures processes)

13-step process Delivered 18 times Across Five countries

Slide 41

Some results 92 of the retrenchees were located

and registered 57 of those (1250) are economically

active 65 (1556) 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 42

Chicken raising business

Slide 43

Furniture making

waynewaynedunncom Slide 44

Unique training programs

waynewaynedunncom Slide 45

Rice farming in Mozambique

Slide 46

Spaza (convenience) shop

Slide 47

And the business value ishellip HIVAIDS 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 ndash 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

waynewaynedunncom Slide 48

ldquoThe project changed the social face of the South African Mining Industryrdquo

Kgosietsile Mogaki

South African Ministry of Minerals and Energy

waynewaynedunncom Slide 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 globally

Through 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 50

And then there is HIVAIDS

RSA ACCOUNTED FOR NEARLY 1 IN 8 OF THE NEW HIV INFECTIONS THAT OCCURRED WORLD WIDE IN 2000

HIV+ PREVALENCE RATE IN WOMEN ATTENDING ANTE-NATAL CLINICS INCREASED FROM 07 IN 1990 TO 248 IN 2001

AVERAGE OF 1700 NEW INFECTIONS PER DAY

LIFE EXPECTANCY WILL DECLINE FROM 65 TO 40 BY 2011

65

40

0

10

20

30

40

50

60

70

2001 2011

Life Expectancy

waynewaynedunncom Slide 51

HIVAIDS Facts (in 2000)

ESTIMATED THAT 12 OF TOTAL RSA POPULATION AND 25 OF MINEWORKERS ARE HIV+

ALREADY 400000 PEOPLE ARE AIDS SICK AND THIS WILL INCREASE TO 14 M BY 2010

YOUNG WOMEN PARTICULARLY VULNERABLE ndash 239 AGED BETWEEN 15 ndash 49 ALREADY INFECTED AND WILL RISE TO 297 BY 2007

AIDS ORPHANS AT PRESENT AMOUNT TO 660000+ AND WILL RISE TO 18M BY 2015

ACCUMULATIVE AIDS DEATHS WILL RISE TO 9M BY 2015

Slide 52

HIVAIDS Impact REDUCED ECONOMIC GROWTH RATE ndash 2010 GDP 20 below a non AIDS

scenario REDUCED POPULATION ndash RSA population 10M smaller than non AIDS scenario SKYROCKETING DEMANDS ON PUBLIC HEALTH SYSTEM - RADICALLY CHANGED PRIVATE SPENDING PATTERNS ndash to healthcare and

funeral costs IMPACT ON SOCIO-ECONOMIC STABILITY (orphans)

HIVAIDS 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 Africa today Nobody can afford to ignore it

Slide 53

HIVAIDS and Gold Mining

$10oz impact if nothing is done (5 of production costs) ~$3oz with maximum

intervention Impact on social and political

stability

Slide 54

HIVAIDS Programming Placer Dome program ndash

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 55

Minesite Program

TRAINING AND EDUCATION

STI amp TB TREATMENT

CONDOM DISTRIBUTION

PEER EDUCATION

VOLUNTARY COUNSELING AND TESTING (VCT)

WELLNESS PROGRAM

MEDICAL REPATRIATION

waynewaynedunncom Slide 56

Minesite Program

waynewaynedunncom Slide 57

Current Community Program

AWARENESS AND EDUCATION PROGRAMS

MOBILE CLINIC

CONDOM amp FEMIDOM DISTRIBUTION

PERIODIC PRESUMPTIVE TREATMENT (PPT)

TREATMENT FOR SEXUALLY TRANSMITTED INFECTIONS ( STI)

waynewaynedunncom Slide 58

COMMUNITY PROGRAM

Community Mobile Clinic

waynewaynedunncom Slide 59

And when HIV prevention doesnrsquot 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 60

Industry Home Based Care

TEBA INFRA-STRUCTURE

TRAINING OF CARE GIVERS

SUPPORT STRUCTURE ndash QUALIFIED STAFF

MONTHLY MEDICATION

WORK WITH OTHER STAKEHOLDERS (EG TRADITIONAL HEALERS)

WORLD BANK DEVELOPMENT INNOVATION AWARD

waynewaynedunncom Slide 61

Home Based Care

Slide 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

waynewaynedunncom Slide 63

Overview of Placer Dome AIDS Programming SOUTH DEEP Sustainable Development Department

bullVoluntary Counseling and testing HIV Negative bullContinue working

On Mine Program Community Program

Modified work program Farm bullAgricultural work Environmental

Medical repatriation

Home Based Care

Benefits Care Positive

HBC EC OPP

Back to work or Re skilled

Wellness Program

waynewaynedunncom Slide 64

But what happens to children and families when the breadwinner canrsquot

work

Slide 65

HIVAIDS and Rural Areas HIVAIDS 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

Slide 66

HIVAIDS 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

waynewaynedunncom

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 CSREthical

Project Award (2004) Numerous other awards Stanford Case Study

waynewaynedunncom Slide 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 69

Planned Program

Care Positive Integrate the Home Based Care

project with the Care process and launch as a fee for service based program to address the social and 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

Care Process

+

Home Based Care

=

Care Positive

waynewaynedunncom Slide 70

Care Positive Summary

waynewaynedunncom

Andhellip 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 $100000 and considerable reputational capital into them Industry went forward with modified HIVAIDS

programming but huge developmental impacts were lost

waynewaynedunncom Slide 72

MDG Impacts of Placer Dome in South Africa

1 Poverty and hunger 2 Some impact on primary education (School

feeding program) 3 Promote gender equality and empower women 4 Reduce child mortality 5 Improve maternal health 6 Combat HIVAIDS malaria and other diseass 7 Ensure environmental sustainability 8 Develop a global partnership for development

(Placer Dome CIDA Civil Society NGOs)

waynewaynedunncom

One thing leads to another

World Bank observed how Placer Domersquos leadership on HIVAIDS 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

waynewaynedunncom

PNG HIVAIDS Scoping mission to

determine what might be done and how Enthusiastic interest from

industry government multi-laterals (WHO UNAIDS World Banketc) ODA (AusAID) CIDA partnered with Place Dome to develop an

HIVAIDS strategy for PNG that integrated industry public sector civil society and international community

waynewaynedunncom

PNG Outcomes (or outputs ndash Irsquom never sure) Partnership with Mining

Industry Civil Society WHO UNAIDS UNDP World Bank PNG AIDS AusAID Oil Palm Industry etc National workshop on

HIVAIDS and publicprivate partnerships SouthSouth Collaboration

Industry government civil society international community study trip to South Africa

waynewaynedunncom

waynewaynedunncom

PNG AIDS mission to South Africa

waynewaynedunncom Slide 78

MDG Impacts of PNG HIVAIDS work

1 Poverty and hunger (nutritional supplements) 2 Some impact on primary education (peripheral) 3 Promote gender equality and empower women 4 Reduce child mortality 5 Improve maternal health 6 Combat HIVAIDS malaria and other diseass 7 Ensure environmental sustainability 8 Develop a global partnership for development

(Placer Dome CIDA Civil Society NGOs)

waynewaynedunncom

Eldorado Gold in Turkey

Major gold find in WestCentral Turkey No successful

mining project launched in decades Eurogold project

built launched and halted by community action in late 1990s ndash still mothballed

UsakKislidag Minesite

Eurogold site

waynewaynedunncom

Eldorado Gold in Turkey

Isolated rural area Nearly half of nearby

communities opposed to mine development Agriculture primary

economic activity in rural communities ndash smallmicro family farms

waynewaynedunncom

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

waynewaynedunncom

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 $075 to $1325 Opened second mine in Turkey

bull Able to deal with controversial watershed issues after relationship success in Usak

waynewaynedunncom Slide 83

MDG Impacts of Eldorado Gold

1 Poverty and hunger (minimal) 2 Some impact on primary education (peripheral) 3 Promote gender equality and empower women 4 Reduce child mortality 5 Improve maternal health 6 Combat HIVAIDS malaria and other diseass 7 Ensure environmental sustainability 8 Develop a global partnership for development

(Placer Dome CIDA Civil Society NGOs)

waynewaynedunncom

Underwater Logging in Ghana

waynewaynedunncom

Private Sector and International Development

Private sector especially resource extraction has a very mixed record bull Some horrendous disasters (Nigeria Warao Peoples in

Venezuela etc) bull Some great successes (Placer Dome Care project

mining and HIVAIDS 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

waynewaynedunncom

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

interestsobjectives overlap

waynewaynedunncom

SDCSR Implementation Challenges

more than a warm fuzzy issue Spending isnrsquot the answer

Plan

Framework

System

Results

Solving social problems Objectives

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Beyond Beads and Trinkets ndash BC Mining Review

A lsquohow torsquo article on mining and CSR

Wayne Dunn

BP Venezuela Indigenous Relations ndash Meeting the Challenge Responsibly and Sustainably

Situational assessment and strategic plan for BP Venezuela Authorized for release by BP

Wayne Dunn

Cameco Community Relations Report

Situational assessment and management strategy Authorized for release by Cameco

Wayne Dunn

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author Beyond Beads lsquon Trinkets A systematic approach to managing community relations

A conference paper describing a systematic approach to community relations management helping companies to methodically develop mutually beneficial relationships with local communities and interests (this is one of the earliest papers on this subject ndash written in 1998)

Wayne Dunn

The costs of conflict with local communities in the extractive industry

Analysis of the cost of community conflicts in the Extractive Sector

Rachel Davis and Daniel M Franks

Creating Shared Value

Harvard Business Review interview with Michael Porter

Video

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Social License Its all about value

Discussion on Social License and shareholder Value

Wayne Dunn

Its about Development Commentary on the CIDAMining Company issue

Wayne Dunn

Integrating corporate strategy and social responsibilitymdashmarket returns from stakeholder engagement

Discussion and analysis on market returns on stakeholder engagement

Witold J Henisz Sinziana Dorobantu and Lite J Narty

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

McGill Reporter ndash Four Burning Questions Wayne Dunn on CSR

Discussion on CSR Wayne Dunn

Miningrsquos contribution to sustainable development ndashan overview

Discussion paper prepared by the International Council on Mining and Metals

Millennium Development Goals

United Nations

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Mining and Agriculture Development

A short lsquohow torsquo guide for mining projects to engage with the local agriculture sector

Al Hingston

PDSA Social Value Brochure

Brochure on social value created by Placer Dome South Africa

Placer Dome

The Value of Social License

Opinion piece published in Northern Miner

Wayne Dunn

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Golden Opportunity When a Canadian multinational laid off hundreds of gold miners in South Africa it went many extra miles to help them get back on their feet

Stanford Business School Case Study on Placer Dome in South Africa

Wayne Dunn

The Changing Resource Development Paradigm Maximizing Sustainable Local Benefits from Resource Development

Strategic thought piece prepared for the government of British Columbia Canada

Wayne Dunn

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

The Disappearing Barriers Between Business And Non-profits Are Driving Innovation

Discussion paper

Katherine Pikus

When Condoms are not enough

World Bank staff magazine article on Placer Dome and South African mining industryrsquos work with HIVAIDS

Craig Andrews

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

MINING AND LOCAL ECONOMIC DEVELOPMENT IN PAPUA NEW GUINEA Preliminary Research on a Potential Pilot Project in Porgera and Lihir

Strategic research and action plan on mining and local economic development in Papua New Guinea prepared for the World Bank

Wayne Dunn

waynewaynedunncom

What we covered

We 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) Publicprivatecivil society collaboration ndash case study

and discussion (CIDA and Mining Companies) Open discussion on topics of interest (time permitting)

waynewaynedunncom

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 howwhy 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

waynewaynedunncom

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 howwhy 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

waynewaynedunncom

Alignment around Shared Value For shareholders For Communities For People For Governments

Private Sector Contributions To International Development

Remember

  • Private Sector Contributions To International Development
  • Session Objectives
  • Map of the morning How we will try to meet the objectives
  • Slide Number 4
  • What is ODA and FDI
  • What is ODA and FDI
  • Why discuss Private Sector Contribution anyway
  • FDIBusiness Outcomes
  • Intention and Strategy Make a Difference
  • Why does the private sector care
  • Community Consultation and Value
  • Itrsquos Real Money
  • CSR is a Value Strategy
  • Social License Failures cost
  • Why is CSR happening
  • The Mining World Has Changed
  • CSR is a complicated space
  • CSR amp Social License
  • Role of business is changing (click image to play video)
  • Case Studies (of successes)
  • Slide Number 21
  • Uranium Industry in Northern Saskatchewan
  • Challenging area
  • Challenging Times
  • Cameco in 1998
  • Cameco in Northern Saskatchewan (2010)
  • So how did Cameco and the industry do it
  • Placer Dome South Africa
  • Slide Number 29
  • Background
  • Background (cont)
  • Families amp Communities must benefit from mining
  • The Care Project
  • Implications
  • Slide Number 35
  • The Initial 4-Step Plan
  • Reality was different than we expected
  • Reality was different than expected
  • Meeting the challenges
  • TheProcess
  • Some results
  • Chicken raising business
  • Furniture making
  • Unique training programs
  • Rice farming in Mozambique
  • Spaza (convenience) shop
  • And the business value ishellip
  • Slide Number 48
  • What was in it for Placer Dome
  • And then there is HIVAIDS
  • HIVAIDS Facts (in 2000)
  • HIVAIDS Impact
  • HIVAIDS and Gold Mining
  • HIVAIDS Programming
  • Minesite Program
  • Minesite Program
  • Current Community Program
  • Community Mobile Clinic
  • And when HIV prevention doesnrsquot work
  • Industry Home Based Care
  • Home Based Care
  • INDUSTRY HOME BASED CARE RESULTS(Year One)
  • Overview of Placer Dome AIDS Programming
  • Slide Number 64
  • HIVAIDS and Rural Areas
  • HIVAIDS and Rural Areas
  • Reputational Results for Placer Dome
  • Where to next
  • Planned Program
  • Care Positive Summary
  • Andhellip
  • MDG Impacts of Placer Dome in South Africa
  • One thing leads to another
  • PNG HIVAIDS
  • PNG Outcomes (or outputs ndash Irsquom never sure)
  • Slide Number 76
  • PNG AIDS mission to South Africa
  • MDG Impacts of PNG HIVAIDS work
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • MDG Impacts of Eldorado Gold
  • Underwater Logging in Ghana
  • Private Sector and International Development
  • Group Exercise
  • Slide Number 87
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • What we covered
  • Session Objectives
  • Session Objectives
  • Remember
Page 23: Private Sector Contributions To International Development – McGill Executive Education Program Lecture

waynewaynedunncom

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

waynewaynedunncom

Challenging Times

Strong opposition to industry developing bull From Europe bull From within governing party

Industry had difficulties from all sides bull Local stakeholders didnrsquot have the capacity to engage

productively in the industry bull Early days of CSR (1980s) and companies largely didnrsquot

realize the importance of local engagement and value creation

waynewaynedunncom

Cameco in 1998

Camecorsquos approach has transformed the socio-economic well-being of Indigenous Peoples in Northern Saskatchewan

29 30

34

37 3739

42 42 43 44

20

25

30

35

40

45

50

1989 1990 1991 1992 1993 1994 1995 1996 1997 1998(Aug)

Perc

enta

ge o

f Tot

al W

orkf

orce

Cameco Aboriginal Employment(includes permanent contractor workforce)

waynewaynedunncom

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 $25 million to northern and aboriginal

initiatives for youth health and wellness education and literacy and culture and recreation Provided $100000 in scholarships to post-secondary

students

waynewaynedunncom

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 ndash NRT Trucking Skunk workssecret meetings Overcoming culture and practice barriers (drilling

underground mining etc) BHAGs Necessity

waynewaynedunncom Slide 28

Placer Dome South Africa

Case study of innovative developmental CSR Demonstrate application of key CSR principles

CSRSustainability Policy Strategic interventions vs shotgun approaches Impact metrics vs expense metrics Partnership strategies (financial operational technical) Leadership and leverage

Slide 29

Overview

bull Background ndash how did this get started

bull The Care Project ndashDeveloping and implementing the plan (challenges partners learnings) ndashBusiness value created

bull HIVAIDS ndash The Crisis and why does it matter ndash Programs and activities

Slide 30

Background 1990s saw massive changes in South

African mining industry ndash over 100000 jobs lost as the industry restructured 1999 ndash Placer Dome purchased a 50

interest in South Deep (WAL) a mine located just outside Johannesburg bull 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 31

Background (cont) In late 1999 after detailed study management

realized that economic reality dictated major restructuring at South Deep

13 of the South Deep workforce (over 2500) workers were retrenched bull 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 ndash that the commitment went

BEYOND THE PAYCHECK

waynewaynedunncom Slide 32

Families amp Communities must benefit from mining

Slide 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 HIVAIDS 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$36 million) budget was established

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

waynewaynedunncom Slide 35

The Mine

2560 Retrenchees bullMozambique bullLesotho bullSouth Africa bullSwaziland bullBotswana

How to successfully provide socio-economic support across remote rural regions of five countries

waynewaynedunncom Slide 36

The Initial 4-Step Plan 1 Consultations with retrenchees in their villages 2 Recruit (from amongst the retrenchees) a group

of 25-30 fieldworkers who would provide frontline support to the retrenchees and their families

3 Locate and register the retrenchees 4 Provide them with training and support to enable

them to become economically active

All of the above to be done in partnership with MDA TEBA and other partners

waynewaynedunncom Slide 37

Reality was different than we expected Retrenchees and their

Unions were still angry over the contested retrenchment Retrencheesrsquo homes were

difficult to locate and registration was often problematic

Consultations with retrenchees

Walking to a remote retrenchee homestead in Lesotho

Slide 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 HIVAIDS Fieldworker training programs Retrenchee education levels Centralized delivery didnrsquot work Project was under-financed We couldnrsquot do it in two years Etc

Slide 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

waynewaynedunncom Slide 40

The Process

Business Operation1 Ongoing availability of Technical Assistance and Business Counselling2 Ongoing faclitiation of skills training needs (ie business agriculture vocational etc)

Decision on Economic Option

Employment StreamEnterprise Stream

Evaluation of Micro Finance Application

Retrenchee is Re-Integrated and Economically Active

PersonalEconomic Plan

Prepared ampAssessed

PersonalEmployment Plan

Prepared

Business amp Financing Plan

Prepared

Employment Planning amp Preparation1 Identification of Employment Options2 Skills Training (VocationalAgricultural etc)3 Employment Counseling Placement (Job searchResume etc)

Business Planning amp Preparation1 Business Orientation a) Introduction to Business b) SkillsProduct Training2 Develop Draft Business Plan (to be reviewed with Counselor) (plan will contain market assessment financial operational and skills upgrading plan)3 Preparation of Micro-Finance Application

Orientation and Awareness Phase1 Registration amp Homestead Visits2 District Counselling Sessions3 Open DaysCareer Fairs4 Financial Lifes Skills Training5 Feedback and Choices Session

Ongoing Processes

Follow-up sessions activities to monitor effectiveness of interventions

Communication and consultation with stakeholders Continuous improvement process (review feedback enhance programs procedures processes)

13-step process Delivered 18 times Across Five countries

Slide 41

Some results 92 of the retrenchees were located

and registered 57 of those (1250) are economically

active 65 (1556) 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 42

Chicken raising business

Slide 43

Furniture making

waynewaynedunncom Slide 44

Unique training programs

waynewaynedunncom Slide 45

Rice farming in Mozambique

Slide 46

Spaza (convenience) shop

Slide 47

And the business value ishellip HIVAIDS 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 ndash 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

waynewaynedunncom Slide 48

ldquoThe project changed the social face of the South African Mining Industryrdquo

Kgosietsile Mogaki

South African Ministry of Minerals and Energy

waynewaynedunncom Slide 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 globally

Through 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 50

And then there is HIVAIDS

RSA ACCOUNTED FOR NEARLY 1 IN 8 OF THE NEW HIV INFECTIONS THAT OCCURRED WORLD WIDE IN 2000

HIV+ PREVALENCE RATE IN WOMEN ATTENDING ANTE-NATAL CLINICS INCREASED FROM 07 IN 1990 TO 248 IN 2001

AVERAGE OF 1700 NEW INFECTIONS PER DAY

LIFE EXPECTANCY WILL DECLINE FROM 65 TO 40 BY 2011

65

40

0

10

20

30

40

50

60

70

2001 2011

Life Expectancy

waynewaynedunncom Slide 51

HIVAIDS Facts (in 2000)

ESTIMATED THAT 12 OF TOTAL RSA POPULATION AND 25 OF MINEWORKERS ARE HIV+

ALREADY 400000 PEOPLE ARE AIDS SICK AND THIS WILL INCREASE TO 14 M BY 2010

YOUNG WOMEN PARTICULARLY VULNERABLE ndash 239 AGED BETWEEN 15 ndash 49 ALREADY INFECTED AND WILL RISE TO 297 BY 2007

AIDS ORPHANS AT PRESENT AMOUNT TO 660000+ AND WILL RISE TO 18M BY 2015

ACCUMULATIVE AIDS DEATHS WILL RISE TO 9M BY 2015

Slide 52

HIVAIDS Impact REDUCED ECONOMIC GROWTH RATE ndash 2010 GDP 20 below a non AIDS

scenario REDUCED POPULATION ndash RSA population 10M smaller than non AIDS scenario SKYROCKETING DEMANDS ON PUBLIC HEALTH SYSTEM - RADICALLY CHANGED PRIVATE SPENDING PATTERNS ndash to healthcare and

funeral costs IMPACT ON SOCIO-ECONOMIC STABILITY (orphans)

HIVAIDS 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 Africa today Nobody can afford to ignore it

Slide 53

HIVAIDS and Gold Mining

$10oz impact if nothing is done (5 of production costs) ~$3oz with maximum

intervention Impact on social and political

stability

Slide 54

HIVAIDS Programming Placer Dome program ndash

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 55

Minesite Program

TRAINING AND EDUCATION

STI amp TB TREATMENT

CONDOM DISTRIBUTION

PEER EDUCATION

VOLUNTARY COUNSELING AND TESTING (VCT)

WELLNESS PROGRAM

MEDICAL REPATRIATION

waynewaynedunncom Slide 56

Minesite Program

waynewaynedunncom Slide 57

Current Community Program

AWARENESS AND EDUCATION PROGRAMS

MOBILE CLINIC

CONDOM amp FEMIDOM DISTRIBUTION

PERIODIC PRESUMPTIVE TREATMENT (PPT)

TREATMENT FOR SEXUALLY TRANSMITTED INFECTIONS ( STI)

waynewaynedunncom Slide 58

COMMUNITY PROGRAM

Community Mobile Clinic

waynewaynedunncom Slide 59

And when HIV prevention doesnrsquot 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 60

Industry Home Based Care

TEBA INFRA-STRUCTURE

TRAINING OF CARE GIVERS

SUPPORT STRUCTURE ndash QUALIFIED STAFF

MONTHLY MEDICATION

WORK WITH OTHER STAKEHOLDERS (EG TRADITIONAL HEALERS)

WORLD BANK DEVELOPMENT INNOVATION AWARD

waynewaynedunncom Slide 61

Home Based Care

Slide 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

waynewaynedunncom Slide 63

Overview of Placer Dome AIDS Programming SOUTH DEEP Sustainable Development Department

bullVoluntary Counseling and testing HIV Negative bullContinue working

On Mine Program Community Program

Modified work program Farm bullAgricultural work Environmental

Medical repatriation

Home Based Care

Benefits Care Positive

HBC EC OPP

Back to work or Re skilled

Wellness Program

waynewaynedunncom Slide 64

But what happens to children and families when the breadwinner canrsquot

work

Slide 65

HIVAIDS and Rural Areas HIVAIDS 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

Slide 66

HIVAIDS 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

waynewaynedunncom

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 CSREthical

Project Award (2004) Numerous other awards Stanford Case Study

waynewaynedunncom Slide 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 69

Planned Program

Care Positive Integrate the Home Based Care

project with the Care process and launch as a fee for service based program to address the social and 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

Care Process

+

Home Based Care

=

Care Positive

waynewaynedunncom Slide 70

Care Positive Summary

waynewaynedunncom

Andhellip 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 $100000 and considerable reputational capital into them Industry went forward with modified HIVAIDS

programming but huge developmental impacts were lost

waynewaynedunncom Slide 72

MDG Impacts of Placer Dome in South Africa

1 Poverty and hunger 2 Some impact on primary education (School

feeding program) 3 Promote gender equality and empower women 4 Reduce child mortality 5 Improve maternal health 6 Combat HIVAIDS malaria and other diseass 7 Ensure environmental sustainability 8 Develop a global partnership for development

(Placer Dome CIDA Civil Society NGOs)

waynewaynedunncom

One thing leads to another

World Bank observed how Placer Domersquos leadership on HIVAIDS 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

waynewaynedunncom

PNG HIVAIDS Scoping mission to

determine what might be done and how Enthusiastic interest from

industry government multi-laterals (WHO UNAIDS World Banketc) ODA (AusAID) CIDA partnered with Place Dome to develop an

HIVAIDS strategy for PNG that integrated industry public sector civil society and international community

waynewaynedunncom

PNG Outcomes (or outputs ndash Irsquom never sure) Partnership with Mining

Industry Civil Society WHO UNAIDS UNDP World Bank PNG AIDS AusAID Oil Palm Industry etc National workshop on

HIVAIDS and publicprivate partnerships SouthSouth Collaboration

Industry government civil society international community study trip to South Africa

waynewaynedunncom

waynewaynedunncom

PNG AIDS mission to South Africa

waynewaynedunncom Slide 78

MDG Impacts of PNG HIVAIDS work

1 Poverty and hunger (nutritional supplements) 2 Some impact on primary education (peripheral) 3 Promote gender equality and empower women 4 Reduce child mortality 5 Improve maternal health 6 Combat HIVAIDS malaria and other diseass 7 Ensure environmental sustainability 8 Develop a global partnership for development

(Placer Dome CIDA Civil Society NGOs)

waynewaynedunncom

Eldorado Gold in Turkey

Major gold find in WestCentral Turkey No successful

mining project launched in decades Eurogold project

built launched and halted by community action in late 1990s ndash still mothballed

UsakKislidag Minesite

Eurogold site

waynewaynedunncom

Eldorado Gold in Turkey

Isolated rural area Nearly half of nearby

communities opposed to mine development Agriculture primary

economic activity in rural communities ndash smallmicro family farms

waynewaynedunncom

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

waynewaynedunncom

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 $075 to $1325 Opened second mine in Turkey

bull Able to deal with controversial watershed issues after relationship success in Usak

waynewaynedunncom Slide 83

MDG Impacts of Eldorado Gold

1 Poverty and hunger (minimal) 2 Some impact on primary education (peripheral) 3 Promote gender equality and empower women 4 Reduce child mortality 5 Improve maternal health 6 Combat HIVAIDS malaria and other diseass 7 Ensure environmental sustainability 8 Develop a global partnership for development

(Placer Dome CIDA Civil Society NGOs)

waynewaynedunncom

Underwater Logging in Ghana

waynewaynedunncom

Private Sector and International Development

Private sector especially resource extraction has a very mixed record bull Some horrendous disasters (Nigeria Warao Peoples in

Venezuela etc) bull Some great successes (Placer Dome Care project

mining and HIVAIDS 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

waynewaynedunncom

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

interestsobjectives overlap

waynewaynedunncom

SDCSR Implementation Challenges

more than a warm fuzzy issue Spending isnrsquot the answer

Plan

Framework

System

Results

Solving social problems Objectives

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Beyond Beads and Trinkets ndash BC Mining Review

A lsquohow torsquo article on mining and CSR

Wayne Dunn

BP Venezuela Indigenous Relations ndash Meeting the Challenge Responsibly and Sustainably

Situational assessment and strategic plan for BP Venezuela Authorized for release by BP

Wayne Dunn

Cameco Community Relations Report

Situational assessment and management strategy Authorized for release by Cameco

Wayne Dunn

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author Beyond Beads lsquon Trinkets A systematic approach to managing community relations

A conference paper describing a systematic approach to community relations management helping companies to methodically develop mutually beneficial relationships with local communities and interests (this is one of the earliest papers on this subject ndash written in 1998)

Wayne Dunn

The costs of conflict with local communities in the extractive industry

Analysis of the cost of community conflicts in the Extractive Sector

Rachel Davis and Daniel M Franks

Creating Shared Value

Harvard Business Review interview with Michael Porter

Video

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Social License Its all about value

Discussion on Social License and shareholder Value

Wayne Dunn

Its about Development Commentary on the CIDAMining Company issue

Wayne Dunn

Integrating corporate strategy and social responsibilitymdashmarket returns from stakeholder engagement

Discussion and analysis on market returns on stakeholder engagement

Witold J Henisz Sinziana Dorobantu and Lite J Narty

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

McGill Reporter ndash Four Burning Questions Wayne Dunn on CSR

Discussion on CSR Wayne Dunn

Miningrsquos contribution to sustainable development ndashan overview

Discussion paper prepared by the International Council on Mining and Metals

Millennium Development Goals

United Nations

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Mining and Agriculture Development

A short lsquohow torsquo guide for mining projects to engage with the local agriculture sector

Al Hingston

PDSA Social Value Brochure

Brochure on social value created by Placer Dome South Africa

Placer Dome

The Value of Social License

Opinion piece published in Northern Miner

Wayne Dunn

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Golden Opportunity When a Canadian multinational laid off hundreds of gold miners in South Africa it went many extra miles to help them get back on their feet

Stanford Business School Case Study on Placer Dome in South Africa

Wayne Dunn

The Changing Resource Development Paradigm Maximizing Sustainable Local Benefits from Resource Development

Strategic thought piece prepared for the government of British Columbia Canada

Wayne Dunn

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

The Disappearing Barriers Between Business And Non-profits Are Driving Innovation

Discussion paper

Katherine Pikus

When Condoms are not enough

World Bank staff magazine article on Placer Dome and South African mining industryrsquos work with HIVAIDS

Craig Andrews

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

MINING AND LOCAL ECONOMIC DEVELOPMENT IN PAPUA NEW GUINEA Preliminary Research on a Potential Pilot Project in Porgera and Lihir

Strategic research and action plan on mining and local economic development in Papua New Guinea prepared for the World Bank

Wayne Dunn

waynewaynedunncom

What we covered

We 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) Publicprivatecivil society collaboration ndash case study

and discussion (CIDA and Mining Companies) Open discussion on topics of interest (time permitting)

waynewaynedunncom

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 howwhy 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

waynewaynedunncom

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 howwhy 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

waynewaynedunncom

Alignment around Shared Value For shareholders For Communities For People For Governments

Private Sector Contributions To International Development

Remember

  • Private Sector Contributions To International Development
  • Session Objectives
  • Map of the morning How we will try to meet the objectives
  • Slide Number 4
  • What is ODA and FDI
  • What is ODA and FDI
  • Why discuss Private Sector Contribution anyway
  • FDIBusiness Outcomes
  • Intention and Strategy Make a Difference
  • Why does the private sector care
  • Community Consultation and Value
  • Itrsquos Real Money
  • CSR is a Value Strategy
  • Social License Failures cost
  • Why is CSR happening
  • The Mining World Has Changed
  • CSR is a complicated space
  • CSR amp Social License
  • Role of business is changing (click image to play video)
  • Case Studies (of successes)
  • Slide Number 21
  • Uranium Industry in Northern Saskatchewan
  • Challenging area
  • Challenging Times
  • Cameco in 1998
  • Cameco in Northern Saskatchewan (2010)
  • So how did Cameco and the industry do it
  • Placer Dome South Africa
  • Slide Number 29
  • Background
  • Background (cont)
  • Families amp Communities must benefit from mining
  • The Care Project
  • Implications
  • Slide Number 35
  • The Initial 4-Step Plan
  • Reality was different than we expected
  • Reality was different than expected
  • Meeting the challenges
  • TheProcess
  • Some results
  • Chicken raising business
  • Furniture making
  • Unique training programs
  • Rice farming in Mozambique
  • Spaza (convenience) shop
  • And the business value ishellip
  • Slide Number 48
  • What was in it for Placer Dome
  • And then there is HIVAIDS
  • HIVAIDS Facts (in 2000)
  • HIVAIDS Impact
  • HIVAIDS and Gold Mining
  • HIVAIDS Programming
  • Minesite Program
  • Minesite Program
  • Current Community Program
  • Community Mobile Clinic
  • And when HIV prevention doesnrsquot work
  • Industry Home Based Care
  • Home Based Care
  • INDUSTRY HOME BASED CARE RESULTS(Year One)
  • Overview of Placer Dome AIDS Programming
  • Slide Number 64
  • HIVAIDS and Rural Areas
  • HIVAIDS and Rural Areas
  • Reputational Results for Placer Dome
  • Where to next
  • Planned Program
  • Care Positive Summary
  • Andhellip
  • MDG Impacts of Placer Dome in South Africa
  • One thing leads to another
  • PNG HIVAIDS
  • PNG Outcomes (or outputs ndash Irsquom never sure)
  • Slide Number 76
  • PNG AIDS mission to South Africa
  • MDG Impacts of PNG HIVAIDS work
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • MDG Impacts of Eldorado Gold
  • Underwater Logging in Ghana
  • Private Sector and International Development
  • Group Exercise
  • Slide Number 87
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • What we covered
  • Session Objectives
  • Session Objectives
  • Remember
Page 24: Private Sector Contributions To International Development – McGill Executive Education Program Lecture

waynewaynedunncom

Challenging Times

Strong opposition to industry developing bull From Europe bull From within governing party

Industry had difficulties from all sides bull Local stakeholders didnrsquot have the capacity to engage

productively in the industry bull Early days of CSR (1980s) and companies largely didnrsquot

realize the importance of local engagement and value creation

waynewaynedunncom

Cameco in 1998

Camecorsquos approach has transformed the socio-economic well-being of Indigenous Peoples in Northern Saskatchewan

29 30

34

37 3739

42 42 43 44

20

25

30

35

40

45

50

1989 1990 1991 1992 1993 1994 1995 1996 1997 1998(Aug)

Perc

enta

ge o

f Tot

al W

orkf

orce

Cameco Aboriginal Employment(includes permanent contractor workforce)

waynewaynedunncom

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 $25 million to northern and aboriginal

initiatives for youth health and wellness education and literacy and culture and recreation Provided $100000 in scholarships to post-secondary

students

waynewaynedunncom

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 ndash NRT Trucking Skunk workssecret meetings Overcoming culture and practice barriers (drilling

underground mining etc) BHAGs Necessity

waynewaynedunncom Slide 28

Placer Dome South Africa

Case study of innovative developmental CSR Demonstrate application of key CSR principles

CSRSustainability Policy Strategic interventions vs shotgun approaches Impact metrics vs expense metrics Partnership strategies (financial operational technical) Leadership and leverage

Slide 29

Overview

bull Background ndash how did this get started

bull The Care Project ndashDeveloping and implementing the plan (challenges partners learnings) ndashBusiness value created

bull HIVAIDS ndash The Crisis and why does it matter ndash Programs and activities

Slide 30

Background 1990s saw massive changes in South

African mining industry ndash over 100000 jobs lost as the industry restructured 1999 ndash Placer Dome purchased a 50

interest in South Deep (WAL) a mine located just outside Johannesburg bull 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 31

Background (cont) In late 1999 after detailed study management

realized that economic reality dictated major restructuring at South Deep

13 of the South Deep workforce (over 2500) workers were retrenched bull 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 ndash that the commitment went

BEYOND THE PAYCHECK

waynewaynedunncom Slide 32

Families amp Communities must benefit from mining

Slide 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 HIVAIDS 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$36 million) budget was established

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

waynewaynedunncom Slide 35

The Mine

2560 Retrenchees bullMozambique bullLesotho bullSouth Africa bullSwaziland bullBotswana

How to successfully provide socio-economic support across remote rural regions of five countries

waynewaynedunncom Slide 36

The Initial 4-Step Plan 1 Consultations with retrenchees in their villages 2 Recruit (from amongst the retrenchees) a group

of 25-30 fieldworkers who would provide frontline support to the retrenchees and their families

3 Locate and register the retrenchees 4 Provide them with training and support to enable

them to become economically active

All of the above to be done in partnership with MDA TEBA and other partners

waynewaynedunncom Slide 37

Reality was different than we expected Retrenchees and their

Unions were still angry over the contested retrenchment Retrencheesrsquo homes were

difficult to locate and registration was often problematic

Consultations with retrenchees

Walking to a remote retrenchee homestead in Lesotho

Slide 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 HIVAIDS Fieldworker training programs Retrenchee education levels Centralized delivery didnrsquot work Project was under-financed We couldnrsquot do it in two years Etc

Slide 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

waynewaynedunncom Slide 40

The Process

Business Operation1 Ongoing availability of Technical Assistance and Business Counselling2 Ongoing faclitiation of skills training needs (ie business agriculture vocational etc)

Decision on Economic Option

Employment StreamEnterprise Stream

Evaluation of Micro Finance Application

Retrenchee is Re-Integrated and Economically Active

PersonalEconomic Plan

Prepared ampAssessed

PersonalEmployment Plan

Prepared

Business amp Financing Plan

Prepared

Employment Planning amp Preparation1 Identification of Employment Options2 Skills Training (VocationalAgricultural etc)3 Employment Counseling Placement (Job searchResume etc)

Business Planning amp Preparation1 Business Orientation a) Introduction to Business b) SkillsProduct Training2 Develop Draft Business Plan (to be reviewed with Counselor) (plan will contain market assessment financial operational and skills upgrading plan)3 Preparation of Micro-Finance Application

Orientation and Awareness Phase1 Registration amp Homestead Visits2 District Counselling Sessions3 Open DaysCareer Fairs4 Financial Lifes Skills Training5 Feedback and Choices Session

Ongoing Processes

Follow-up sessions activities to monitor effectiveness of interventions

Communication and consultation with stakeholders Continuous improvement process (review feedback enhance programs procedures processes)

13-step process Delivered 18 times Across Five countries

Slide 41

Some results 92 of the retrenchees were located

and registered 57 of those (1250) are economically

active 65 (1556) 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 42

Chicken raising business

Slide 43

Furniture making

waynewaynedunncom Slide 44

Unique training programs

waynewaynedunncom Slide 45

Rice farming in Mozambique

Slide 46

Spaza (convenience) shop

Slide 47

And the business value ishellip HIVAIDS 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 ndash 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

waynewaynedunncom Slide 48

ldquoThe project changed the social face of the South African Mining Industryrdquo

Kgosietsile Mogaki

South African Ministry of Minerals and Energy

waynewaynedunncom Slide 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 globally

Through 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 50

And then there is HIVAIDS

RSA ACCOUNTED FOR NEARLY 1 IN 8 OF THE NEW HIV INFECTIONS THAT OCCURRED WORLD WIDE IN 2000

HIV+ PREVALENCE RATE IN WOMEN ATTENDING ANTE-NATAL CLINICS INCREASED FROM 07 IN 1990 TO 248 IN 2001

AVERAGE OF 1700 NEW INFECTIONS PER DAY

LIFE EXPECTANCY WILL DECLINE FROM 65 TO 40 BY 2011

65

40

0

10

20

30

40

50

60

70

2001 2011

Life Expectancy

waynewaynedunncom Slide 51

HIVAIDS Facts (in 2000)

ESTIMATED THAT 12 OF TOTAL RSA POPULATION AND 25 OF MINEWORKERS ARE HIV+

ALREADY 400000 PEOPLE ARE AIDS SICK AND THIS WILL INCREASE TO 14 M BY 2010

YOUNG WOMEN PARTICULARLY VULNERABLE ndash 239 AGED BETWEEN 15 ndash 49 ALREADY INFECTED AND WILL RISE TO 297 BY 2007

AIDS ORPHANS AT PRESENT AMOUNT TO 660000+ AND WILL RISE TO 18M BY 2015

ACCUMULATIVE AIDS DEATHS WILL RISE TO 9M BY 2015

Slide 52

HIVAIDS Impact REDUCED ECONOMIC GROWTH RATE ndash 2010 GDP 20 below a non AIDS

scenario REDUCED POPULATION ndash RSA population 10M smaller than non AIDS scenario SKYROCKETING DEMANDS ON PUBLIC HEALTH SYSTEM - RADICALLY CHANGED PRIVATE SPENDING PATTERNS ndash to healthcare and

funeral costs IMPACT ON SOCIO-ECONOMIC STABILITY (orphans)

HIVAIDS 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 Africa today Nobody can afford to ignore it

Slide 53

HIVAIDS and Gold Mining

$10oz impact if nothing is done (5 of production costs) ~$3oz with maximum

intervention Impact on social and political

stability

Slide 54

HIVAIDS Programming Placer Dome program ndash

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 55

Minesite Program

TRAINING AND EDUCATION

STI amp TB TREATMENT

CONDOM DISTRIBUTION

PEER EDUCATION

VOLUNTARY COUNSELING AND TESTING (VCT)

WELLNESS PROGRAM

MEDICAL REPATRIATION

waynewaynedunncom Slide 56

Minesite Program

waynewaynedunncom Slide 57

Current Community Program

AWARENESS AND EDUCATION PROGRAMS

MOBILE CLINIC

CONDOM amp FEMIDOM DISTRIBUTION

PERIODIC PRESUMPTIVE TREATMENT (PPT)

TREATMENT FOR SEXUALLY TRANSMITTED INFECTIONS ( STI)

waynewaynedunncom Slide 58

COMMUNITY PROGRAM

Community Mobile Clinic

waynewaynedunncom Slide 59

And when HIV prevention doesnrsquot 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 60

Industry Home Based Care

TEBA INFRA-STRUCTURE

TRAINING OF CARE GIVERS

SUPPORT STRUCTURE ndash QUALIFIED STAFF

MONTHLY MEDICATION

WORK WITH OTHER STAKEHOLDERS (EG TRADITIONAL HEALERS)

WORLD BANK DEVELOPMENT INNOVATION AWARD

waynewaynedunncom Slide 61

Home Based Care

Slide 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

waynewaynedunncom Slide 63

Overview of Placer Dome AIDS Programming SOUTH DEEP Sustainable Development Department

bullVoluntary Counseling and testing HIV Negative bullContinue working

On Mine Program Community Program

Modified work program Farm bullAgricultural work Environmental

Medical repatriation

Home Based Care

Benefits Care Positive

HBC EC OPP

Back to work or Re skilled

Wellness Program

waynewaynedunncom Slide 64

But what happens to children and families when the breadwinner canrsquot

work

Slide 65

HIVAIDS and Rural Areas HIVAIDS 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

Slide 66

HIVAIDS 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

waynewaynedunncom

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 CSREthical

Project Award (2004) Numerous other awards Stanford Case Study

waynewaynedunncom Slide 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 69

Planned Program

Care Positive Integrate the Home Based Care

project with the Care process and launch as a fee for service based program to address the social and 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

Care Process

+

Home Based Care

=

Care Positive

waynewaynedunncom Slide 70

Care Positive Summary

waynewaynedunncom

Andhellip 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 $100000 and considerable reputational capital into them Industry went forward with modified HIVAIDS

programming but huge developmental impacts were lost

waynewaynedunncom Slide 72

MDG Impacts of Placer Dome in South Africa

1 Poverty and hunger 2 Some impact on primary education (School

feeding program) 3 Promote gender equality and empower women 4 Reduce child mortality 5 Improve maternal health 6 Combat HIVAIDS malaria and other diseass 7 Ensure environmental sustainability 8 Develop a global partnership for development

(Placer Dome CIDA Civil Society NGOs)

waynewaynedunncom

One thing leads to another

World Bank observed how Placer Domersquos leadership on HIVAIDS 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

waynewaynedunncom

PNG HIVAIDS Scoping mission to

determine what might be done and how Enthusiastic interest from

industry government multi-laterals (WHO UNAIDS World Banketc) ODA (AusAID) CIDA partnered with Place Dome to develop an

HIVAIDS strategy for PNG that integrated industry public sector civil society and international community

waynewaynedunncom

PNG Outcomes (or outputs ndash Irsquom never sure) Partnership with Mining

Industry Civil Society WHO UNAIDS UNDP World Bank PNG AIDS AusAID Oil Palm Industry etc National workshop on

HIVAIDS and publicprivate partnerships SouthSouth Collaboration

Industry government civil society international community study trip to South Africa

waynewaynedunncom

waynewaynedunncom

PNG AIDS mission to South Africa

waynewaynedunncom Slide 78

MDG Impacts of PNG HIVAIDS work

1 Poverty and hunger (nutritional supplements) 2 Some impact on primary education (peripheral) 3 Promote gender equality and empower women 4 Reduce child mortality 5 Improve maternal health 6 Combat HIVAIDS malaria and other diseass 7 Ensure environmental sustainability 8 Develop a global partnership for development

(Placer Dome CIDA Civil Society NGOs)

waynewaynedunncom

Eldorado Gold in Turkey

Major gold find in WestCentral Turkey No successful

mining project launched in decades Eurogold project

built launched and halted by community action in late 1990s ndash still mothballed

UsakKislidag Minesite

Eurogold site

waynewaynedunncom

Eldorado Gold in Turkey

Isolated rural area Nearly half of nearby

communities opposed to mine development Agriculture primary

economic activity in rural communities ndash smallmicro family farms

waynewaynedunncom

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

waynewaynedunncom

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 $075 to $1325 Opened second mine in Turkey

bull Able to deal with controversial watershed issues after relationship success in Usak

waynewaynedunncom Slide 83

MDG Impacts of Eldorado Gold

1 Poverty and hunger (minimal) 2 Some impact on primary education (peripheral) 3 Promote gender equality and empower women 4 Reduce child mortality 5 Improve maternal health 6 Combat HIVAIDS malaria and other diseass 7 Ensure environmental sustainability 8 Develop a global partnership for development

(Placer Dome CIDA Civil Society NGOs)

waynewaynedunncom

Underwater Logging in Ghana

waynewaynedunncom

Private Sector and International Development

Private sector especially resource extraction has a very mixed record bull Some horrendous disasters (Nigeria Warao Peoples in

Venezuela etc) bull Some great successes (Placer Dome Care project

mining and HIVAIDS 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

waynewaynedunncom

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

interestsobjectives overlap

waynewaynedunncom

SDCSR Implementation Challenges

more than a warm fuzzy issue Spending isnrsquot the answer

Plan

Framework

System

Results

Solving social problems Objectives

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Beyond Beads and Trinkets ndash BC Mining Review

A lsquohow torsquo article on mining and CSR

Wayne Dunn

BP Venezuela Indigenous Relations ndash Meeting the Challenge Responsibly and Sustainably

Situational assessment and strategic plan for BP Venezuela Authorized for release by BP

Wayne Dunn

Cameco Community Relations Report

Situational assessment and management strategy Authorized for release by Cameco

Wayne Dunn

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author Beyond Beads lsquon Trinkets A systematic approach to managing community relations

A conference paper describing a systematic approach to community relations management helping companies to methodically develop mutually beneficial relationships with local communities and interests (this is one of the earliest papers on this subject ndash written in 1998)

Wayne Dunn

The costs of conflict with local communities in the extractive industry

Analysis of the cost of community conflicts in the Extractive Sector

Rachel Davis and Daniel M Franks

Creating Shared Value

Harvard Business Review interview with Michael Porter

Video

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Social License Its all about value

Discussion on Social License and shareholder Value

Wayne Dunn

Its about Development Commentary on the CIDAMining Company issue

Wayne Dunn

Integrating corporate strategy and social responsibilitymdashmarket returns from stakeholder engagement

Discussion and analysis on market returns on stakeholder engagement

Witold J Henisz Sinziana Dorobantu and Lite J Narty

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

McGill Reporter ndash Four Burning Questions Wayne Dunn on CSR

Discussion on CSR Wayne Dunn

Miningrsquos contribution to sustainable development ndashan overview

Discussion paper prepared by the International Council on Mining and Metals

Millennium Development Goals

United Nations

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Mining and Agriculture Development

A short lsquohow torsquo guide for mining projects to engage with the local agriculture sector

Al Hingston

PDSA Social Value Brochure

Brochure on social value created by Placer Dome South Africa

Placer Dome

The Value of Social License

Opinion piece published in Northern Miner

Wayne Dunn

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Golden Opportunity When a Canadian multinational laid off hundreds of gold miners in South Africa it went many extra miles to help them get back on their feet

Stanford Business School Case Study on Placer Dome in South Africa

Wayne Dunn

The Changing Resource Development Paradigm Maximizing Sustainable Local Benefits from Resource Development

Strategic thought piece prepared for the government of British Columbia Canada

Wayne Dunn

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

The Disappearing Barriers Between Business And Non-profits Are Driving Innovation

Discussion paper

Katherine Pikus

When Condoms are not enough

World Bank staff magazine article on Placer Dome and South African mining industryrsquos work with HIVAIDS

Craig Andrews

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

MINING AND LOCAL ECONOMIC DEVELOPMENT IN PAPUA NEW GUINEA Preliminary Research on a Potential Pilot Project in Porgera and Lihir

Strategic research and action plan on mining and local economic development in Papua New Guinea prepared for the World Bank

Wayne Dunn

waynewaynedunncom

What we covered

We 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) Publicprivatecivil society collaboration ndash case study

and discussion (CIDA and Mining Companies) Open discussion on topics of interest (time permitting)

waynewaynedunncom

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 howwhy 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

waynewaynedunncom

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 howwhy 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

waynewaynedunncom

Alignment around Shared Value For shareholders For Communities For People For Governments

Private Sector Contributions To International Development

Remember

  • Private Sector Contributions To International Development
  • Session Objectives
  • Map of the morning How we will try to meet the objectives
  • Slide Number 4
  • What is ODA and FDI
  • What is ODA and FDI
  • Why discuss Private Sector Contribution anyway
  • FDIBusiness Outcomes
  • Intention and Strategy Make a Difference
  • Why does the private sector care
  • Community Consultation and Value
  • Itrsquos Real Money
  • CSR is a Value Strategy
  • Social License Failures cost
  • Why is CSR happening
  • The Mining World Has Changed
  • CSR is a complicated space
  • CSR amp Social License
  • Role of business is changing (click image to play video)
  • Case Studies (of successes)
  • Slide Number 21
  • Uranium Industry in Northern Saskatchewan
  • Challenging area
  • Challenging Times
  • Cameco in 1998
  • Cameco in Northern Saskatchewan (2010)
  • So how did Cameco and the industry do it
  • Placer Dome South Africa
  • Slide Number 29
  • Background
  • Background (cont)
  • Families amp Communities must benefit from mining
  • The Care Project
  • Implications
  • Slide Number 35
  • The Initial 4-Step Plan
  • Reality was different than we expected
  • Reality was different than expected
  • Meeting the challenges
  • TheProcess
  • Some results
  • Chicken raising business
  • Furniture making
  • Unique training programs
  • Rice farming in Mozambique
  • Spaza (convenience) shop
  • And the business value ishellip
  • Slide Number 48
  • What was in it for Placer Dome
  • And then there is HIVAIDS
  • HIVAIDS Facts (in 2000)
  • HIVAIDS Impact
  • HIVAIDS and Gold Mining
  • HIVAIDS Programming
  • Minesite Program
  • Minesite Program
  • Current Community Program
  • Community Mobile Clinic
  • And when HIV prevention doesnrsquot work
  • Industry Home Based Care
  • Home Based Care
  • INDUSTRY HOME BASED CARE RESULTS(Year One)
  • Overview of Placer Dome AIDS Programming
  • Slide Number 64
  • HIVAIDS and Rural Areas
  • HIVAIDS and Rural Areas
  • Reputational Results for Placer Dome
  • Where to next
  • Planned Program
  • Care Positive Summary
  • Andhellip
  • MDG Impacts of Placer Dome in South Africa
  • One thing leads to another
  • PNG HIVAIDS
  • PNG Outcomes (or outputs ndash Irsquom never sure)
  • Slide Number 76
  • PNG AIDS mission to South Africa
  • MDG Impacts of PNG HIVAIDS work
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • MDG Impacts of Eldorado Gold
  • Underwater Logging in Ghana
  • Private Sector and International Development
  • Group Exercise
  • Slide Number 87
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • What we covered
  • Session Objectives
  • Session Objectives
  • Remember
Page 25: Private Sector Contributions To International Development – McGill Executive Education Program Lecture

waynewaynedunncom

Cameco in 1998

Camecorsquos approach has transformed the socio-economic well-being of Indigenous Peoples in Northern Saskatchewan

29 30

34

37 3739

42 42 43 44

20

25

30

35

40

45

50

1989 1990 1991 1992 1993 1994 1995 1996 1997 1998(Aug)

Perc

enta

ge o

f Tot

al W

orkf

orce

Cameco Aboriginal Employment(includes permanent contractor workforce)

waynewaynedunncom

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 $25 million to northern and aboriginal

initiatives for youth health and wellness education and literacy and culture and recreation Provided $100000 in scholarships to post-secondary

students

waynewaynedunncom

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 ndash NRT Trucking Skunk workssecret meetings Overcoming culture and practice barriers (drilling

underground mining etc) BHAGs Necessity

waynewaynedunncom Slide 28

Placer Dome South Africa

Case study of innovative developmental CSR Demonstrate application of key CSR principles

CSRSustainability Policy Strategic interventions vs shotgun approaches Impact metrics vs expense metrics Partnership strategies (financial operational technical) Leadership and leverage

Slide 29

Overview

bull Background ndash how did this get started

bull The Care Project ndashDeveloping and implementing the plan (challenges partners learnings) ndashBusiness value created

bull HIVAIDS ndash The Crisis and why does it matter ndash Programs and activities

Slide 30

Background 1990s saw massive changes in South

African mining industry ndash over 100000 jobs lost as the industry restructured 1999 ndash Placer Dome purchased a 50

interest in South Deep (WAL) a mine located just outside Johannesburg bull 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 31

Background (cont) In late 1999 after detailed study management

realized that economic reality dictated major restructuring at South Deep

13 of the South Deep workforce (over 2500) workers were retrenched bull 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 ndash that the commitment went

BEYOND THE PAYCHECK

waynewaynedunncom Slide 32

Families amp Communities must benefit from mining

Slide 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 HIVAIDS 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$36 million) budget was established

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

waynewaynedunncom Slide 35

The Mine

2560 Retrenchees bullMozambique bullLesotho bullSouth Africa bullSwaziland bullBotswana

How to successfully provide socio-economic support across remote rural regions of five countries

waynewaynedunncom Slide 36

The Initial 4-Step Plan 1 Consultations with retrenchees in their villages 2 Recruit (from amongst the retrenchees) a group

of 25-30 fieldworkers who would provide frontline support to the retrenchees and their families

3 Locate and register the retrenchees 4 Provide them with training and support to enable

them to become economically active

All of the above to be done in partnership with MDA TEBA and other partners

waynewaynedunncom Slide 37

Reality was different than we expected Retrenchees and their

Unions were still angry over the contested retrenchment Retrencheesrsquo homes were

difficult to locate and registration was often problematic

Consultations with retrenchees

Walking to a remote retrenchee homestead in Lesotho

Slide 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 HIVAIDS Fieldworker training programs Retrenchee education levels Centralized delivery didnrsquot work Project was under-financed We couldnrsquot do it in two years Etc

Slide 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

waynewaynedunncom Slide 40

The Process

Business Operation1 Ongoing availability of Technical Assistance and Business Counselling2 Ongoing faclitiation of skills training needs (ie business agriculture vocational etc)

Decision on Economic Option

Employment StreamEnterprise Stream

Evaluation of Micro Finance Application

Retrenchee is Re-Integrated and Economically Active

PersonalEconomic Plan

Prepared ampAssessed

PersonalEmployment Plan

Prepared

Business amp Financing Plan

Prepared

Employment Planning amp Preparation1 Identification of Employment Options2 Skills Training (VocationalAgricultural etc)3 Employment Counseling Placement (Job searchResume etc)

Business Planning amp Preparation1 Business Orientation a) Introduction to Business b) SkillsProduct Training2 Develop Draft Business Plan (to be reviewed with Counselor) (plan will contain market assessment financial operational and skills upgrading plan)3 Preparation of Micro-Finance Application

Orientation and Awareness Phase1 Registration amp Homestead Visits2 District Counselling Sessions3 Open DaysCareer Fairs4 Financial Lifes Skills Training5 Feedback and Choices Session

Ongoing Processes

Follow-up sessions activities to monitor effectiveness of interventions

Communication and consultation with stakeholders Continuous improvement process (review feedback enhance programs procedures processes)

13-step process Delivered 18 times Across Five countries

Slide 41

Some results 92 of the retrenchees were located

and registered 57 of those (1250) are economically

active 65 (1556) 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 42

Chicken raising business

Slide 43

Furniture making

waynewaynedunncom Slide 44

Unique training programs

waynewaynedunncom Slide 45

Rice farming in Mozambique

Slide 46

Spaza (convenience) shop

Slide 47

And the business value ishellip HIVAIDS 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 ndash 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

waynewaynedunncom Slide 48

ldquoThe project changed the social face of the South African Mining Industryrdquo

Kgosietsile Mogaki

South African Ministry of Minerals and Energy

waynewaynedunncom Slide 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 globally

Through 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 50

And then there is HIVAIDS

RSA ACCOUNTED FOR NEARLY 1 IN 8 OF THE NEW HIV INFECTIONS THAT OCCURRED WORLD WIDE IN 2000

HIV+ PREVALENCE RATE IN WOMEN ATTENDING ANTE-NATAL CLINICS INCREASED FROM 07 IN 1990 TO 248 IN 2001

AVERAGE OF 1700 NEW INFECTIONS PER DAY

LIFE EXPECTANCY WILL DECLINE FROM 65 TO 40 BY 2011

65

40

0

10

20

30

40

50

60

70

2001 2011

Life Expectancy

waynewaynedunncom Slide 51

HIVAIDS Facts (in 2000)

ESTIMATED THAT 12 OF TOTAL RSA POPULATION AND 25 OF MINEWORKERS ARE HIV+

ALREADY 400000 PEOPLE ARE AIDS SICK AND THIS WILL INCREASE TO 14 M BY 2010

YOUNG WOMEN PARTICULARLY VULNERABLE ndash 239 AGED BETWEEN 15 ndash 49 ALREADY INFECTED AND WILL RISE TO 297 BY 2007

AIDS ORPHANS AT PRESENT AMOUNT TO 660000+ AND WILL RISE TO 18M BY 2015

ACCUMULATIVE AIDS DEATHS WILL RISE TO 9M BY 2015

Slide 52

HIVAIDS Impact REDUCED ECONOMIC GROWTH RATE ndash 2010 GDP 20 below a non AIDS

scenario REDUCED POPULATION ndash RSA population 10M smaller than non AIDS scenario SKYROCKETING DEMANDS ON PUBLIC HEALTH SYSTEM - RADICALLY CHANGED PRIVATE SPENDING PATTERNS ndash to healthcare and

funeral costs IMPACT ON SOCIO-ECONOMIC STABILITY (orphans)

HIVAIDS 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 Africa today Nobody can afford to ignore it

Slide 53

HIVAIDS and Gold Mining

$10oz impact if nothing is done (5 of production costs) ~$3oz with maximum

intervention Impact on social and political

stability

Slide 54

HIVAIDS Programming Placer Dome program ndash

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 55

Minesite Program

TRAINING AND EDUCATION

STI amp TB TREATMENT

CONDOM DISTRIBUTION

PEER EDUCATION

VOLUNTARY COUNSELING AND TESTING (VCT)

WELLNESS PROGRAM

MEDICAL REPATRIATION

waynewaynedunncom Slide 56

Minesite Program

waynewaynedunncom Slide 57

Current Community Program

AWARENESS AND EDUCATION PROGRAMS

MOBILE CLINIC

CONDOM amp FEMIDOM DISTRIBUTION

PERIODIC PRESUMPTIVE TREATMENT (PPT)

TREATMENT FOR SEXUALLY TRANSMITTED INFECTIONS ( STI)

waynewaynedunncom Slide 58

COMMUNITY PROGRAM

Community Mobile Clinic

waynewaynedunncom Slide 59

And when HIV prevention doesnrsquot 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 60

Industry Home Based Care

TEBA INFRA-STRUCTURE

TRAINING OF CARE GIVERS

SUPPORT STRUCTURE ndash QUALIFIED STAFF

MONTHLY MEDICATION

WORK WITH OTHER STAKEHOLDERS (EG TRADITIONAL HEALERS)

WORLD BANK DEVELOPMENT INNOVATION AWARD

waynewaynedunncom Slide 61

Home Based Care

Slide 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

waynewaynedunncom Slide 63

Overview of Placer Dome AIDS Programming SOUTH DEEP Sustainable Development Department

bullVoluntary Counseling and testing HIV Negative bullContinue working

On Mine Program Community Program

Modified work program Farm bullAgricultural work Environmental

Medical repatriation

Home Based Care

Benefits Care Positive

HBC EC OPP

Back to work or Re skilled

Wellness Program

waynewaynedunncom Slide 64

But what happens to children and families when the breadwinner canrsquot

work

Slide 65

HIVAIDS and Rural Areas HIVAIDS 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

Slide 66

HIVAIDS 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

waynewaynedunncom

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 CSREthical

Project Award (2004) Numerous other awards Stanford Case Study

waynewaynedunncom Slide 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 69

Planned Program

Care Positive Integrate the Home Based Care

project with the Care process and launch as a fee for service based program to address the social and 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

Care Process

+

Home Based Care

=

Care Positive

waynewaynedunncom Slide 70

Care Positive Summary

waynewaynedunncom

Andhellip 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 $100000 and considerable reputational capital into them Industry went forward with modified HIVAIDS

programming but huge developmental impacts were lost

waynewaynedunncom Slide 72

MDG Impacts of Placer Dome in South Africa

1 Poverty and hunger 2 Some impact on primary education (School

feeding program) 3 Promote gender equality and empower women 4 Reduce child mortality 5 Improve maternal health 6 Combat HIVAIDS malaria and other diseass 7 Ensure environmental sustainability 8 Develop a global partnership for development

(Placer Dome CIDA Civil Society NGOs)

waynewaynedunncom

One thing leads to another

World Bank observed how Placer Domersquos leadership on HIVAIDS 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

waynewaynedunncom

PNG HIVAIDS Scoping mission to

determine what might be done and how Enthusiastic interest from

industry government multi-laterals (WHO UNAIDS World Banketc) ODA (AusAID) CIDA partnered with Place Dome to develop an

HIVAIDS strategy for PNG that integrated industry public sector civil society and international community

waynewaynedunncom

PNG Outcomes (or outputs ndash Irsquom never sure) Partnership with Mining

Industry Civil Society WHO UNAIDS UNDP World Bank PNG AIDS AusAID Oil Palm Industry etc National workshop on

HIVAIDS and publicprivate partnerships SouthSouth Collaboration

Industry government civil society international community study trip to South Africa

waynewaynedunncom

waynewaynedunncom

PNG AIDS mission to South Africa

waynewaynedunncom Slide 78

MDG Impacts of PNG HIVAIDS work

1 Poverty and hunger (nutritional supplements) 2 Some impact on primary education (peripheral) 3 Promote gender equality and empower women 4 Reduce child mortality 5 Improve maternal health 6 Combat HIVAIDS malaria and other diseass 7 Ensure environmental sustainability 8 Develop a global partnership for development

(Placer Dome CIDA Civil Society NGOs)

waynewaynedunncom

Eldorado Gold in Turkey

Major gold find in WestCentral Turkey No successful

mining project launched in decades Eurogold project

built launched and halted by community action in late 1990s ndash still mothballed

UsakKislidag Minesite

Eurogold site

waynewaynedunncom

Eldorado Gold in Turkey

Isolated rural area Nearly half of nearby

communities opposed to mine development Agriculture primary

economic activity in rural communities ndash smallmicro family farms

waynewaynedunncom

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

waynewaynedunncom

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 $075 to $1325 Opened second mine in Turkey

bull Able to deal with controversial watershed issues after relationship success in Usak

waynewaynedunncom Slide 83

MDG Impacts of Eldorado Gold

1 Poverty and hunger (minimal) 2 Some impact on primary education (peripheral) 3 Promote gender equality and empower women 4 Reduce child mortality 5 Improve maternal health 6 Combat HIVAIDS malaria and other diseass 7 Ensure environmental sustainability 8 Develop a global partnership for development

(Placer Dome CIDA Civil Society NGOs)

waynewaynedunncom

Underwater Logging in Ghana

waynewaynedunncom

Private Sector and International Development

Private sector especially resource extraction has a very mixed record bull Some horrendous disasters (Nigeria Warao Peoples in

Venezuela etc) bull Some great successes (Placer Dome Care project

mining and HIVAIDS 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

waynewaynedunncom

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

interestsobjectives overlap

waynewaynedunncom

SDCSR Implementation Challenges

more than a warm fuzzy issue Spending isnrsquot the answer

Plan

Framework

System

Results

Solving social problems Objectives

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Beyond Beads and Trinkets ndash BC Mining Review

A lsquohow torsquo article on mining and CSR

Wayne Dunn

BP Venezuela Indigenous Relations ndash Meeting the Challenge Responsibly and Sustainably

Situational assessment and strategic plan for BP Venezuela Authorized for release by BP

Wayne Dunn

Cameco Community Relations Report

Situational assessment and management strategy Authorized for release by Cameco

Wayne Dunn

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author Beyond Beads lsquon Trinkets A systematic approach to managing community relations

A conference paper describing a systematic approach to community relations management helping companies to methodically develop mutually beneficial relationships with local communities and interests (this is one of the earliest papers on this subject ndash written in 1998)

Wayne Dunn

The costs of conflict with local communities in the extractive industry

Analysis of the cost of community conflicts in the Extractive Sector

Rachel Davis and Daniel M Franks

Creating Shared Value

Harvard Business Review interview with Michael Porter

Video

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Social License Its all about value

Discussion on Social License and shareholder Value

Wayne Dunn

Its about Development Commentary on the CIDAMining Company issue

Wayne Dunn

Integrating corporate strategy and social responsibilitymdashmarket returns from stakeholder engagement

Discussion and analysis on market returns on stakeholder engagement

Witold J Henisz Sinziana Dorobantu and Lite J Narty

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

McGill Reporter ndash Four Burning Questions Wayne Dunn on CSR

Discussion on CSR Wayne Dunn

Miningrsquos contribution to sustainable development ndashan overview

Discussion paper prepared by the International Council on Mining and Metals

Millennium Development Goals

United Nations

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Mining and Agriculture Development

A short lsquohow torsquo guide for mining projects to engage with the local agriculture sector

Al Hingston

PDSA Social Value Brochure

Brochure on social value created by Placer Dome South Africa

Placer Dome

The Value of Social License

Opinion piece published in Northern Miner

Wayne Dunn

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Golden Opportunity When a Canadian multinational laid off hundreds of gold miners in South Africa it went many extra miles to help them get back on their feet

Stanford Business School Case Study on Placer Dome in South Africa

Wayne Dunn

The Changing Resource Development Paradigm Maximizing Sustainable Local Benefits from Resource Development

Strategic thought piece prepared for the government of British Columbia Canada

Wayne Dunn

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

The Disappearing Barriers Between Business And Non-profits Are Driving Innovation

Discussion paper

Katherine Pikus

When Condoms are not enough

World Bank staff magazine article on Placer Dome and South African mining industryrsquos work with HIVAIDS

Craig Andrews

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

MINING AND LOCAL ECONOMIC DEVELOPMENT IN PAPUA NEW GUINEA Preliminary Research on a Potential Pilot Project in Porgera and Lihir

Strategic research and action plan on mining and local economic development in Papua New Guinea prepared for the World Bank

Wayne Dunn

waynewaynedunncom

What we covered

We 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) Publicprivatecivil society collaboration ndash case study

and discussion (CIDA and Mining Companies) Open discussion on topics of interest (time permitting)

waynewaynedunncom

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 howwhy 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

waynewaynedunncom

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 howwhy 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

waynewaynedunncom

Alignment around Shared Value For shareholders For Communities For People For Governments

Private Sector Contributions To International Development

Remember

  • Private Sector Contributions To International Development
  • Session Objectives
  • Map of the morning How we will try to meet the objectives
  • Slide Number 4
  • What is ODA and FDI
  • What is ODA and FDI
  • Why discuss Private Sector Contribution anyway
  • FDIBusiness Outcomes
  • Intention and Strategy Make a Difference
  • Why does the private sector care
  • Community Consultation and Value
  • Itrsquos Real Money
  • CSR is a Value Strategy
  • Social License Failures cost
  • Why is CSR happening
  • The Mining World Has Changed
  • CSR is a complicated space
  • CSR amp Social License
  • Role of business is changing (click image to play video)
  • Case Studies (of successes)
  • Slide Number 21
  • Uranium Industry in Northern Saskatchewan
  • Challenging area
  • Challenging Times
  • Cameco in 1998
  • Cameco in Northern Saskatchewan (2010)
  • So how did Cameco and the industry do it
  • Placer Dome South Africa
  • Slide Number 29
  • Background
  • Background (cont)
  • Families amp Communities must benefit from mining
  • The Care Project
  • Implications
  • Slide Number 35
  • The Initial 4-Step Plan
  • Reality was different than we expected
  • Reality was different than expected
  • Meeting the challenges
  • TheProcess
  • Some results
  • Chicken raising business
  • Furniture making
  • Unique training programs
  • Rice farming in Mozambique
  • Spaza (convenience) shop
  • And the business value ishellip
  • Slide Number 48
  • What was in it for Placer Dome
  • And then there is HIVAIDS
  • HIVAIDS Facts (in 2000)
  • HIVAIDS Impact
  • HIVAIDS and Gold Mining
  • HIVAIDS Programming
  • Minesite Program
  • Minesite Program
  • Current Community Program
  • Community Mobile Clinic
  • And when HIV prevention doesnrsquot work
  • Industry Home Based Care
  • Home Based Care
  • INDUSTRY HOME BASED CARE RESULTS(Year One)
  • Overview of Placer Dome AIDS Programming
  • Slide Number 64
  • HIVAIDS and Rural Areas
  • HIVAIDS and Rural Areas
  • Reputational Results for Placer Dome
  • Where to next
  • Planned Program
  • Care Positive Summary
  • Andhellip
  • MDG Impacts of Placer Dome in South Africa
  • One thing leads to another
  • PNG HIVAIDS
  • PNG Outcomes (or outputs ndash Irsquom never sure)
  • Slide Number 76
  • PNG AIDS mission to South Africa
  • MDG Impacts of PNG HIVAIDS work
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • MDG Impacts of Eldorado Gold
  • Underwater Logging in Ghana
  • Private Sector and International Development
  • Group Exercise
  • Slide Number 87
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • What we covered
  • Session Objectives
  • Session Objectives
  • Remember
Page 26: Private Sector Contributions To International Development – McGill Executive Education Program Lecture

waynewaynedunncom

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 $25 million to northern and aboriginal

initiatives for youth health and wellness education and literacy and culture and recreation Provided $100000 in scholarships to post-secondary

students

waynewaynedunncom

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 ndash NRT Trucking Skunk workssecret meetings Overcoming culture and practice barriers (drilling

underground mining etc) BHAGs Necessity

waynewaynedunncom Slide 28

Placer Dome South Africa

Case study of innovative developmental CSR Demonstrate application of key CSR principles

CSRSustainability Policy Strategic interventions vs shotgun approaches Impact metrics vs expense metrics Partnership strategies (financial operational technical) Leadership and leverage

Slide 29

Overview

bull Background ndash how did this get started

bull The Care Project ndashDeveloping and implementing the plan (challenges partners learnings) ndashBusiness value created

bull HIVAIDS ndash The Crisis and why does it matter ndash Programs and activities

Slide 30

Background 1990s saw massive changes in South

African mining industry ndash over 100000 jobs lost as the industry restructured 1999 ndash Placer Dome purchased a 50

interest in South Deep (WAL) a mine located just outside Johannesburg bull 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 31

Background (cont) In late 1999 after detailed study management

realized that economic reality dictated major restructuring at South Deep

13 of the South Deep workforce (over 2500) workers were retrenched bull 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 ndash that the commitment went

BEYOND THE PAYCHECK

waynewaynedunncom Slide 32

Families amp Communities must benefit from mining

Slide 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 HIVAIDS 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$36 million) budget was established

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

waynewaynedunncom Slide 35

The Mine

2560 Retrenchees bullMozambique bullLesotho bullSouth Africa bullSwaziland bullBotswana

How to successfully provide socio-economic support across remote rural regions of five countries

waynewaynedunncom Slide 36

The Initial 4-Step Plan 1 Consultations with retrenchees in their villages 2 Recruit (from amongst the retrenchees) a group

of 25-30 fieldworkers who would provide frontline support to the retrenchees and their families

3 Locate and register the retrenchees 4 Provide them with training and support to enable

them to become economically active

All of the above to be done in partnership with MDA TEBA and other partners

waynewaynedunncom Slide 37

Reality was different than we expected Retrenchees and their

Unions were still angry over the contested retrenchment Retrencheesrsquo homes were

difficult to locate and registration was often problematic

Consultations with retrenchees

Walking to a remote retrenchee homestead in Lesotho

Slide 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 HIVAIDS Fieldworker training programs Retrenchee education levels Centralized delivery didnrsquot work Project was under-financed We couldnrsquot do it in two years Etc

Slide 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

waynewaynedunncom Slide 40

The Process

Business Operation1 Ongoing availability of Technical Assistance and Business Counselling2 Ongoing faclitiation of skills training needs (ie business agriculture vocational etc)

Decision on Economic Option

Employment StreamEnterprise Stream

Evaluation of Micro Finance Application

Retrenchee is Re-Integrated and Economically Active

PersonalEconomic Plan

Prepared ampAssessed

PersonalEmployment Plan

Prepared

Business amp Financing Plan

Prepared

Employment Planning amp Preparation1 Identification of Employment Options2 Skills Training (VocationalAgricultural etc)3 Employment Counseling Placement (Job searchResume etc)

Business Planning amp Preparation1 Business Orientation a) Introduction to Business b) SkillsProduct Training2 Develop Draft Business Plan (to be reviewed with Counselor) (plan will contain market assessment financial operational and skills upgrading plan)3 Preparation of Micro-Finance Application

Orientation and Awareness Phase1 Registration amp Homestead Visits2 District Counselling Sessions3 Open DaysCareer Fairs4 Financial Lifes Skills Training5 Feedback and Choices Session

Ongoing Processes

Follow-up sessions activities to monitor effectiveness of interventions

Communication and consultation with stakeholders Continuous improvement process (review feedback enhance programs procedures processes)

13-step process Delivered 18 times Across Five countries

Slide 41

Some results 92 of the retrenchees were located

and registered 57 of those (1250) are economically

active 65 (1556) 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 42

Chicken raising business

Slide 43

Furniture making

waynewaynedunncom Slide 44

Unique training programs

waynewaynedunncom Slide 45

Rice farming in Mozambique

Slide 46

Spaza (convenience) shop

Slide 47

And the business value ishellip HIVAIDS 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 ndash 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

waynewaynedunncom Slide 48

ldquoThe project changed the social face of the South African Mining Industryrdquo

Kgosietsile Mogaki

South African Ministry of Minerals and Energy

waynewaynedunncom Slide 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 globally

Through 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 50

And then there is HIVAIDS

RSA ACCOUNTED FOR NEARLY 1 IN 8 OF THE NEW HIV INFECTIONS THAT OCCURRED WORLD WIDE IN 2000

HIV+ PREVALENCE RATE IN WOMEN ATTENDING ANTE-NATAL CLINICS INCREASED FROM 07 IN 1990 TO 248 IN 2001

AVERAGE OF 1700 NEW INFECTIONS PER DAY

LIFE EXPECTANCY WILL DECLINE FROM 65 TO 40 BY 2011

65

40

0

10

20

30

40

50

60

70

2001 2011

Life Expectancy

waynewaynedunncom Slide 51

HIVAIDS Facts (in 2000)

ESTIMATED THAT 12 OF TOTAL RSA POPULATION AND 25 OF MINEWORKERS ARE HIV+

ALREADY 400000 PEOPLE ARE AIDS SICK AND THIS WILL INCREASE TO 14 M BY 2010

YOUNG WOMEN PARTICULARLY VULNERABLE ndash 239 AGED BETWEEN 15 ndash 49 ALREADY INFECTED AND WILL RISE TO 297 BY 2007

AIDS ORPHANS AT PRESENT AMOUNT TO 660000+ AND WILL RISE TO 18M BY 2015

ACCUMULATIVE AIDS DEATHS WILL RISE TO 9M BY 2015

Slide 52

HIVAIDS Impact REDUCED ECONOMIC GROWTH RATE ndash 2010 GDP 20 below a non AIDS

scenario REDUCED POPULATION ndash RSA population 10M smaller than non AIDS scenario SKYROCKETING DEMANDS ON PUBLIC HEALTH SYSTEM - RADICALLY CHANGED PRIVATE SPENDING PATTERNS ndash to healthcare and

funeral costs IMPACT ON SOCIO-ECONOMIC STABILITY (orphans)

HIVAIDS 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 Africa today Nobody can afford to ignore it

Slide 53

HIVAIDS and Gold Mining

$10oz impact if nothing is done (5 of production costs) ~$3oz with maximum

intervention Impact on social and political

stability

Slide 54

HIVAIDS Programming Placer Dome program ndash

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 55

Minesite Program

TRAINING AND EDUCATION

STI amp TB TREATMENT

CONDOM DISTRIBUTION

PEER EDUCATION

VOLUNTARY COUNSELING AND TESTING (VCT)

WELLNESS PROGRAM

MEDICAL REPATRIATION

waynewaynedunncom Slide 56

Minesite Program

waynewaynedunncom Slide 57

Current Community Program

AWARENESS AND EDUCATION PROGRAMS

MOBILE CLINIC

CONDOM amp FEMIDOM DISTRIBUTION

PERIODIC PRESUMPTIVE TREATMENT (PPT)

TREATMENT FOR SEXUALLY TRANSMITTED INFECTIONS ( STI)

waynewaynedunncom Slide 58

COMMUNITY PROGRAM

Community Mobile Clinic

waynewaynedunncom Slide 59

And when HIV prevention doesnrsquot 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 60

Industry Home Based Care

TEBA INFRA-STRUCTURE

TRAINING OF CARE GIVERS

SUPPORT STRUCTURE ndash QUALIFIED STAFF

MONTHLY MEDICATION

WORK WITH OTHER STAKEHOLDERS (EG TRADITIONAL HEALERS)

WORLD BANK DEVELOPMENT INNOVATION AWARD

waynewaynedunncom Slide 61

Home Based Care

Slide 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

waynewaynedunncom Slide 63

Overview of Placer Dome AIDS Programming SOUTH DEEP Sustainable Development Department

bullVoluntary Counseling and testing HIV Negative bullContinue working

On Mine Program Community Program

Modified work program Farm bullAgricultural work Environmental

Medical repatriation

Home Based Care

Benefits Care Positive

HBC EC OPP

Back to work or Re skilled

Wellness Program

waynewaynedunncom Slide 64

But what happens to children and families when the breadwinner canrsquot

work

Slide 65

HIVAIDS and Rural Areas HIVAIDS 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

Slide 66

HIVAIDS 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

waynewaynedunncom

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 CSREthical

Project Award (2004) Numerous other awards Stanford Case Study

waynewaynedunncom Slide 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 69

Planned Program

Care Positive Integrate the Home Based Care

project with the Care process and launch as a fee for service based program to address the social and 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

Care Process

+

Home Based Care

=

Care Positive

waynewaynedunncom Slide 70

Care Positive Summary

waynewaynedunncom

Andhellip 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 $100000 and considerable reputational capital into them Industry went forward with modified HIVAIDS

programming but huge developmental impacts were lost

waynewaynedunncom Slide 72

MDG Impacts of Placer Dome in South Africa

1 Poverty and hunger 2 Some impact on primary education (School

feeding program) 3 Promote gender equality and empower women 4 Reduce child mortality 5 Improve maternal health 6 Combat HIVAIDS malaria and other diseass 7 Ensure environmental sustainability 8 Develop a global partnership for development

(Placer Dome CIDA Civil Society NGOs)

waynewaynedunncom

One thing leads to another

World Bank observed how Placer Domersquos leadership on HIVAIDS 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

waynewaynedunncom

PNG HIVAIDS Scoping mission to

determine what might be done and how Enthusiastic interest from

industry government multi-laterals (WHO UNAIDS World Banketc) ODA (AusAID) CIDA partnered with Place Dome to develop an

HIVAIDS strategy for PNG that integrated industry public sector civil society and international community

waynewaynedunncom

PNG Outcomes (or outputs ndash Irsquom never sure) Partnership with Mining

Industry Civil Society WHO UNAIDS UNDP World Bank PNG AIDS AusAID Oil Palm Industry etc National workshop on

HIVAIDS and publicprivate partnerships SouthSouth Collaboration

Industry government civil society international community study trip to South Africa

waynewaynedunncom

waynewaynedunncom

PNG AIDS mission to South Africa

waynewaynedunncom Slide 78

MDG Impacts of PNG HIVAIDS work

1 Poverty and hunger (nutritional supplements) 2 Some impact on primary education (peripheral) 3 Promote gender equality and empower women 4 Reduce child mortality 5 Improve maternal health 6 Combat HIVAIDS malaria and other diseass 7 Ensure environmental sustainability 8 Develop a global partnership for development

(Placer Dome CIDA Civil Society NGOs)

waynewaynedunncom

Eldorado Gold in Turkey

Major gold find in WestCentral Turkey No successful

mining project launched in decades Eurogold project

built launched and halted by community action in late 1990s ndash still mothballed

UsakKislidag Minesite

Eurogold site

waynewaynedunncom

Eldorado Gold in Turkey

Isolated rural area Nearly half of nearby

communities opposed to mine development Agriculture primary

economic activity in rural communities ndash smallmicro family farms

waynewaynedunncom

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

waynewaynedunncom

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 $075 to $1325 Opened second mine in Turkey

bull Able to deal with controversial watershed issues after relationship success in Usak

waynewaynedunncom Slide 83

MDG Impacts of Eldorado Gold

1 Poverty and hunger (minimal) 2 Some impact on primary education (peripheral) 3 Promote gender equality and empower women 4 Reduce child mortality 5 Improve maternal health 6 Combat HIVAIDS malaria and other diseass 7 Ensure environmental sustainability 8 Develop a global partnership for development

(Placer Dome CIDA Civil Society NGOs)

waynewaynedunncom

Underwater Logging in Ghana

waynewaynedunncom

Private Sector and International Development

Private sector especially resource extraction has a very mixed record bull Some horrendous disasters (Nigeria Warao Peoples in

Venezuela etc) bull Some great successes (Placer Dome Care project

mining and HIVAIDS 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

waynewaynedunncom

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

interestsobjectives overlap

waynewaynedunncom

SDCSR Implementation Challenges

more than a warm fuzzy issue Spending isnrsquot the answer

Plan

Framework

System

Results

Solving social problems Objectives

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Beyond Beads and Trinkets ndash BC Mining Review

A lsquohow torsquo article on mining and CSR

Wayne Dunn

BP Venezuela Indigenous Relations ndash Meeting the Challenge Responsibly and Sustainably

Situational assessment and strategic plan for BP Venezuela Authorized for release by BP

Wayne Dunn

Cameco Community Relations Report

Situational assessment and management strategy Authorized for release by Cameco

Wayne Dunn

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author Beyond Beads lsquon Trinkets A systematic approach to managing community relations

A conference paper describing a systematic approach to community relations management helping companies to methodically develop mutually beneficial relationships with local communities and interests (this is one of the earliest papers on this subject ndash written in 1998)

Wayne Dunn

The costs of conflict with local communities in the extractive industry

Analysis of the cost of community conflicts in the Extractive Sector

Rachel Davis and Daniel M Franks

Creating Shared Value

Harvard Business Review interview with Michael Porter

Video

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Social License Its all about value

Discussion on Social License and shareholder Value

Wayne Dunn

Its about Development Commentary on the CIDAMining Company issue

Wayne Dunn

Integrating corporate strategy and social responsibilitymdashmarket returns from stakeholder engagement

Discussion and analysis on market returns on stakeholder engagement

Witold J Henisz Sinziana Dorobantu and Lite J Narty

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

McGill Reporter ndash Four Burning Questions Wayne Dunn on CSR

Discussion on CSR Wayne Dunn

Miningrsquos contribution to sustainable development ndashan overview

Discussion paper prepared by the International Council on Mining and Metals

Millennium Development Goals

United Nations

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Mining and Agriculture Development

A short lsquohow torsquo guide for mining projects to engage with the local agriculture sector

Al Hingston

PDSA Social Value Brochure

Brochure on social value created by Placer Dome South Africa

Placer Dome

The Value of Social License

Opinion piece published in Northern Miner

Wayne Dunn

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Golden Opportunity When a Canadian multinational laid off hundreds of gold miners in South Africa it went many extra miles to help them get back on their feet

Stanford Business School Case Study on Placer Dome in South Africa

Wayne Dunn

The Changing Resource Development Paradigm Maximizing Sustainable Local Benefits from Resource Development

Strategic thought piece prepared for the government of British Columbia Canada

Wayne Dunn

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

The Disappearing Barriers Between Business And Non-profits Are Driving Innovation

Discussion paper

Katherine Pikus

When Condoms are not enough

World Bank staff magazine article on Placer Dome and South African mining industryrsquos work with HIVAIDS

Craig Andrews

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

MINING AND LOCAL ECONOMIC DEVELOPMENT IN PAPUA NEW GUINEA Preliminary Research on a Potential Pilot Project in Porgera and Lihir

Strategic research and action plan on mining and local economic development in Papua New Guinea prepared for the World Bank

Wayne Dunn

waynewaynedunncom

What we covered

We 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) Publicprivatecivil society collaboration ndash case study

and discussion (CIDA and Mining Companies) Open discussion on topics of interest (time permitting)

waynewaynedunncom

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 howwhy 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

waynewaynedunncom

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 howwhy 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

waynewaynedunncom

Alignment around Shared Value For shareholders For Communities For People For Governments

Private Sector Contributions To International Development

Remember

  • Private Sector Contributions To International Development
  • Session Objectives
  • Map of the morning How we will try to meet the objectives
  • Slide Number 4
  • What is ODA and FDI
  • What is ODA and FDI
  • Why discuss Private Sector Contribution anyway
  • FDIBusiness Outcomes
  • Intention and Strategy Make a Difference
  • Why does the private sector care
  • Community Consultation and Value
  • Itrsquos Real Money
  • CSR is a Value Strategy
  • Social License Failures cost
  • Why is CSR happening
  • The Mining World Has Changed
  • CSR is a complicated space
  • CSR amp Social License
  • Role of business is changing (click image to play video)
  • Case Studies (of successes)
  • Slide Number 21
  • Uranium Industry in Northern Saskatchewan
  • Challenging area
  • Challenging Times
  • Cameco in 1998
  • Cameco in Northern Saskatchewan (2010)
  • So how did Cameco and the industry do it
  • Placer Dome South Africa
  • Slide Number 29
  • Background
  • Background (cont)
  • Families amp Communities must benefit from mining
  • The Care Project
  • Implications
  • Slide Number 35
  • The Initial 4-Step Plan
  • Reality was different than we expected
  • Reality was different than expected
  • Meeting the challenges
  • TheProcess
  • Some results
  • Chicken raising business
  • Furniture making
  • Unique training programs
  • Rice farming in Mozambique
  • Spaza (convenience) shop
  • And the business value ishellip
  • Slide Number 48
  • What was in it for Placer Dome
  • And then there is HIVAIDS
  • HIVAIDS Facts (in 2000)
  • HIVAIDS Impact
  • HIVAIDS and Gold Mining
  • HIVAIDS Programming
  • Minesite Program
  • Minesite Program
  • Current Community Program
  • Community Mobile Clinic
  • And when HIV prevention doesnrsquot work
  • Industry Home Based Care
  • Home Based Care
  • INDUSTRY HOME BASED CARE RESULTS(Year One)
  • Overview of Placer Dome AIDS Programming
  • Slide Number 64
  • HIVAIDS and Rural Areas
  • HIVAIDS and Rural Areas
  • Reputational Results for Placer Dome
  • Where to next
  • Planned Program
  • Care Positive Summary
  • Andhellip
  • MDG Impacts of Placer Dome in South Africa
  • One thing leads to another
  • PNG HIVAIDS
  • PNG Outcomes (or outputs ndash Irsquom never sure)
  • Slide Number 76
  • PNG AIDS mission to South Africa
  • MDG Impacts of PNG HIVAIDS work
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • MDG Impacts of Eldorado Gold
  • Underwater Logging in Ghana
  • Private Sector and International Development
  • Group Exercise
  • Slide Number 87
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • What we covered
  • Session Objectives
  • Session Objectives
  • Remember
Page 27: Private Sector Contributions To International Development – McGill Executive Education Program Lecture

waynewaynedunncom

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 ndash NRT Trucking Skunk workssecret meetings Overcoming culture and practice barriers (drilling

underground mining etc) BHAGs Necessity

waynewaynedunncom Slide 28

Placer Dome South Africa

Case study of innovative developmental CSR Demonstrate application of key CSR principles

CSRSustainability Policy Strategic interventions vs shotgun approaches Impact metrics vs expense metrics Partnership strategies (financial operational technical) Leadership and leverage

Slide 29

Overview

bull Background ndash how did this get started

bull The Care Project ndashDeveloping and implementing the plan (challenges partners learnings) ndashBusiness value created

bull HIVAIDS ndash The Crisis and why does it matter ndash Programs and activities

Slide 30

Background 1990s saw massive changes in South

African mining industry ndash over 100000 jobs lost as the industry restructured 1999 ndash Placer Dome purchased a 50

interest in South Deep (WAL) a mine located just outside Johannesburg bull 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 31

Background (cont) In late 1999 after detailed study management

realized that economic reality dictated major restructuring at South Deep

13 of the South Deep workforce (over 2500) workers were retrenched bull 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 ndash that the commitment went

BEYOND THE PAYCHECK

waynewaynedunncom Slide 32

Families amp Communities must benefit from mining

Slide 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 HIVAIDS 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$36 million) budget was established

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

waynewaynedunncom Slide 35

The Mine

2560 Retrenchees bullMozambique bullLesotho bullSouth Africa bullSwaziland bullBotswana

How to successfully provide socio-economic support across remote rural regions of five countries

waynewaynedunncom Slide 36

The Initial 4-Step Plan 1 Consultations with retrenchees in their villages 2 Recruit (from amongst the retrenchees) a group

of 25-30 fieldworkers who would provide frontline support to the retrenchees and their families

3 Locate and register the retrenchees 4 Provide them with training and support to enable

them to become economically active

All of the above to be done in partnership with MDA TEBA and other partners

waynewaynedunncom Slide 37

Reality was different than we expected Retrenchees and their

Unions were still angry over the contested retrenchment Retrencheesrsquo homes were

difficult to locate and registration was often problematic

Consultations with retrenchees

Walking to a remote retrenchee homestead in Lesotho

Slide 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 HIVAIDS Fieldworker training programs Retrenchee education levels Centralized delivery didnrsquot work Project was under-financed We couldnrsquot do it in two years Etc

Slide 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

waynewaynedunncom Slide 40

The Process

Business Operation1 Ongoing availability of Technical Assistance and Business Counselling2 Ongoing faclitiation of skills training needs (ie business agriculture vocational etc)

Decision on Economic Option

Employment StreamEnterprise Stream

Evaluation of Micro Finance Application

Retrenchee is Re-Integrated and Economically Active

PersonalEconomic Plan

Prepared ampAssessed

PersonalEmployment Plan

Prepared

Business amp Financing Plan

Prepared

Employment Planning amp Preparation1 Identification of Employment Options2 Skills Training (VocationalAgricultural etc)3 Employment Counseling Placement (Job searchResume etc)

Business Planning amp Preparation1 Business Orientation a) Introduction to Business b) SkillsProduct Training2 Develop Draft Business Plan (to be reviewed with Counselor) (plan will contain market assessment financial operational and skills upgrading plan)3 Preparation of Micro-Finance Application

Orientation and Awareness Phase1 Registration amp Homestead Visits2 District Counselling Sessions3 Open DaysCareer Fairs4 Financial Lifes Skills Training5 Feedback and Choices Session

Ongoing Processes

Follow-up sessions activities to monitor effectiveness of interventions

Communication and consultation with stakeholders Continuous improvement process (review feedback enhance programs procedures processes)

13-step process Delivered 18 times Across Five countries

Slide 41

Some results 92 of the retrenchees were located

and registered 57 of those (1250) are economically

active 65 (1556) 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 42

Chicken raising business

Slide 43

Furniture making

waynewaynedunncom Slide 44

Unique training programs

waynewaynedunncom Slide 45

Rice farming in Mozambique

Slide 46

Spaza (convenience) shop

Slide 47

And the business value ishellip HIVAIDS 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 ndash 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

waynewaynedunncom Slide 48

ldquoThe project changed the social face of the South African Mining Industryrdquo

Kgosietsile Mogaki

South African Ministry of Minerals and Energy

waynewaynedunncom Slide 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 globally

Through 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 50

And then there is HIVAIDS

RSA ACCOUNTED FOR NEARLY 1 IN 8 OF THE NEW HIV INFECTIONS THAT OCCURRED WORLD WIDE IN 2000

HIV+ PREVALENCE RATE IN WOMEN ATTENDING ANTE-NATAL CLINICS INCREASED FROM 07 IN 1990 TO 248 IN 2001

AVERAGE OF 1700 NEW INFECTIONS PER DAY

LIFE EXPECTANCY WILL DECLINE FROM 65 TO 40 BY 2011

65

40

0

10

20

30

40

50

60

70

2001 2011

Life Expectancy

waynewaynedunncom Slide 51

HIVAIDS Facts (in 2000)

ESTIMATED THAT 12 OF TOTAL RSA POPULATION AND 25 OF MINEWORKERS ARE HIV+

ALREADY 400000 PEOPLE ARE AIDS SICK AND THIS WILL INCREASE TO 14 M BY 2010

YOUNG WOMEN PARTICULARLY VULNERABLE ndash 239 AGED BETWEEN 15 ndash 49 ALREADY INFECTED AND WILL RISE TO 297 BY 2007

AIDS ORPHANS AT PRESENT AMOUNT TO 660000+ AND WILL RISE TO 18M BY 2015

ACCUMULATIVE AIDS DEATHS WILL RISE TO 9M BY 2015

Slide 52

HIVAIDS Impact REDUCED ECONOMIC GROWTH RATE ndash 2010 GDP 20 below a non AIDS

scenario REDUCED POPULATION ndash RSA population 10M smaller than non AIDS scenario SKYROCKETING DEMANDS ON PUBLIC HEALTH SYSTEM - RADICALLY CHANGED PRIVATE SPENDING PATTERNS ndash to healthcare and

funeral costs IMPACT ON SOCIO-ECONOMIC STABILITY (orphans)

HIVAIDS 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 Africa today Nobody can afford to ignore it

Slide 53

HIVAIDS and Gold Mining

$10oz impact if nothing is done (5 of production costs) ~$3oz with maximum

intervention Impact on social and political

stability

Slide 54

HIVAIDS Programming Placer Dome program ndash

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 55

Minesite Program

TRAINING AND EDUCATION

STI amp TB TREATMENT

CONDOM DISTRIBUTION

PEER EDUCATION

VOLUNTARY COUNSELING AND TESTING (VCT)

WELLNESS PROGRAM

MEDICAL REPATRIATION

waynewaynedunncom Slide 56

Minesite Program

waynewaynedunncom Slide 57

Current Community Program

AWARENESS AND EDUCATION PROGRAMS

MOBILE CLINIC

CONDOM amp FEMIDOM DISTRIBUTION

PERIODIC PRESUMPTIVE TREATMENT (PPT)

TREATMENT FOR SEXUALLY TRANSMITTED INFECTIONS ( STI)

waynewaynedunncom Slide 58

COMMUNITY PROGRAM

Community Mobile Clinic

waynewaynedunncom Slide 59

And when HIV prevention doesnrsquot 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 60

Industry Home Based Care

TEBA INFRA-STRUCTURE

TRAINING OF CARE GIVERS

SUPPORT STRUCTURE ndash QUALIFIED STAFF

MONTHLY MEDICATION

WORK WITH OTHER STAKEHOLDERS (EG TRADITIONAL HEALERS)

WORLD BANK DEVELOPMENT INNOVATION AWARD

waynewaynedunncom Slide 61

Home Based Care

Slide 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

waynewaynedunncom Slide 63

Overview of Placer Dome AIDS Programming SOUTH DEEP Sustainable Development Department

bullVoluntary Counseling and testing HIV Negative bullContinue working

On Mine Program Community Program

Modified work program Farm bullAgricultural work Environmental

Medical repatriation

Home Based Care

Benefits Care Positive

HBC EC OPP

Back to work or Re skilled

Wellness Program

waynewaynedunncom Slide 64

But what happens to children and families when the breadwinner canrsquot

work

Slide 65

HIVAIDS and Rural Areas HIVAIDS 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

Slide 66

HIVAIDS 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

waynewaynedunncom

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 CSREthical

Project Award (2004) Numerous other awards Stanford Case Study

waynewaynedunncom Slide 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 69

Planned Program

Care Positive Integrate the Home Based Care

project with the Care process and launch as a fee for service based program to address the social and 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

Care Process

+

Home Based Care

=

Care Positive

waynewaynedunncom Slide 70

Care Positive Summary

waynewaynedunncom

Andhellip 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 $100000 and considerable reputational capital into them Industry went forward with modified HIVAIDS

programming but huge developmental impacts were lost

waynewaynedunncom Slide 72

MDG Impacts of Placer Dome in South Africa

1 Poverty and hunger 2 Some impact on primary education (School

feeding program) 3 Promote gender equality and empower women 4 Reduce child mortality 5 Improve maternal health 6 Combat HIVAIDS malaria and other diseass 7 Ensure environmental sustainability 8 Develop a global partnership for development

(Placer Dome CIDA Civil Society NGOs)

waynewaynedunncom

One thing leads to another

World Bank observed how Placer Domersquos leadership on HIVAIDS 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

waynewaynedunncom

PNG HIVAIDS Scoping mission to

determine what might be done and how Enthusiastic interest from

industry government multi-laterals (WHO UNAIDS World Banketc) ODA (AusAID) CIDA partnered with Place Dome to develop an

HIVAIDS strategy for PNG that integrated industry public sector civil society and international community

waynewaynedunncom

PNG Outcomes (or outputs ndash Irsquom never sure) Partnership with Mining

Industry Civil Society WHO UNAIDS UNDP World Bank PNG AIDS AusAID Oil Palm Industry etc National workshop on

HIVAIDS and publicprivate partnerships SouthSouth Collaboration

Industry government civil society international community study trip to South Africa

waynewaynedunncom

waynewaynedunncom

PNG AIDS mission to South Africa

waynewaynedunncom Slide 78

MDG Impacts of PNG HIVAIDS work

1 Poverty and hunger (nutritional supplements) 2 Some impact on primary education (peripheral) 3 Promote gender equality and empower women 4 Reduce child mortality 5 Improve maternal health 6 Combat HIVAIDS malaria and other diseass 7 Ensure environmental sustainability 8 Develop a global partnership for development

(Placer Dome CIDA Civil Society NGOs)

waynewaynedunncom

Eldorado Gold in Turkey

Major gold find in WestCentral Turkey No successful

mining project launched in decades Eurogold project

built launched and halted by community action in late 1990s ndash still mothballed

UsakKislidag Minesite

Eurogold site

waynewaynedunncom

Eldorado Gold in Turkey

Isolated rural area Nearly half of nearby

communities opposed to mine development Agriculture primary

economic activity in rural communities ndash smallmicro family farms

waynewaynedunncom

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

waynewaynedunncom

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 $075 to $1325 Opened second mine in Turkey

bull Able to deal with controversial watershed issues after relationship success in Usak

waynewaynedunncom Slide 83

MDG Impacts of Eldorado Gold

1 Poverty and hunger (minimal) 2 Some impact on primary education (peripheral) 3 Promote gender equality and empower women 4 Reduce child mortality 5 Improve maternal health 6 Combat HIVAIDS malaria and other diseass 7 Ensure environmental sustainability 8 Develop a global partnership for development

(Placer Dome CIDA Civil Society NGOs)

waynewaynedunncom

Underwater Logging in Ghana

waynewaynedunncom

Private Sector and International Development

Private sector especially resource extraction has a very mixed record bull Some horrendous disasters (Nigeria Warao Peoples in

Venezuela etc) bull Some great successes (Placer Dome Care project

mining and HIVAIDS 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

waynewaynedunncom

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

interestsobjectives overlap

waynewaynedunncom

SDCSR Implementation Challenges

more than a warm fuzzy issue Spending isnrsquot the answer

Plan

Framework

System

Results

Solving social problems Objectives

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Beyond Beads and Trinkets ndash BC Mining Review

A lsquohow torsquo article on mining and CSR

Wayne Dunn

BP Venezuela Indigenous Relations ndash Meeting the Challenge Responsibly and Sustainably

Situational assessment and strategic plan for BP Venezuela Authorized for release by BP

Wayne Dunn

Cameco Community Relations Report

Situational assessment and management strategy Authorized for release by Cameco

Wayne Dunn

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author Beyond Beads lsquon Trinkets A systematic approach to managing community relations

A conference paper describing a systematic approach to community relations management helping companies to methodically develop mutually beneficial relationships with local communities and interests (this is one of the earliest papers on this subject ndash written in 1998)

Wayne Dunn

The costs of conflict with local communities in the extractive industry

Analysis of the cost of community conflicts in the Extractive Sector

Rachel Davis and Daniel M Franks

Creating Shared Value

Harvard Business Review interview with Michael Porter

Video

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Social License Its all about value

Discussion on Social License and shareholder Value

Wayne Dunn

Its about Development Commentary on the CIDAMining Company issue

Wayne Dunn

Integrating corporate strategy and social responsibilitymdashmarket returns from stakeholder engagement

Discussion and analysis on market returns on stakeholder engagement

Witold J Henisz Sinziana Dorobantu and Lite J Narty

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

McGill Reporter ndash Four Burning Questions Wayne Dunn on CSR

Discussion on CSR Wayne Dunn

Miningrsquos contribution to sustainable development ndashan overview

Discussion paper prepared by the International Council on Mining and Metals

Millennium Development Goals

United Nations

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Mining and Agriculture Development

A short lsquohow torsquo guide for mining projects to engage with the local agriculture sector

Al Hingston

PDSA Social Value Brochure

Brochure on social value created by Placer Dome South Africa

Placer Dome

The Value of Social License

Opinion piece published in Northern Miner

Wayne Dunn

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Golden Opportunity When a Canadian multinational laid off hundreds of gold miners in South Africa it went many extra miles to help them get back on their feet

Stanford Business School Case Study on Placer Dome in South Africa

Wayne Dunn

The Changing Resource Development Paradigm Maximizing Sustainable Local Benefits from Resource Development

Strategic thought piece prepared for the government of British Columbia Canada

Wayne Dunn

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

The Disappearing Barriers Between Business And Non-profits Are Driving Innovation

Discussion paper

Katherine Pikus

When Condoms are not enough

World Bank staff magazine article on Placer Dome and South African mining industryrsquos work with HIVAIDS

Craig Andrews

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

MINING AND LOCAL ECONOMIC DEVELOPMENT IN PAPUA NEW GUINEA Preliminary Research on a Potential Pilot Project in Porgera and Lihir

Strategic research and action plan on mining and local economic development in Papua New Guinea prepared for the World Bank

Wayne Dunn

waynewaynedunncom

What we covered

We 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) Publicprivatecivil society collaboration ndash case study

and discussion (CIDA and Mining Companies) Open discussion on topics of interest (time permitting)

waynewaynedunncom

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 howwhy 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

waynewaynedunncom

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 howwhy 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

waynewaynedunncom

Alignment around Shared Value For shareholders For Communities For People For Governments

Private Sector Contributions To International Development

Remember

  • Private Sector Contributions To International Development
  • Session Objectives
  • Map of the morning How we will try to meet the objectives
  • Slide Number 4
  • What is ODA and FDI
  • What is ODA and FDI
  • Why discuss Private Sector Contribution anyway
  • FDIBusiness Outcomes
  • Intention and Strategy Make a Difference
  • Why does the private sector care
  • Community Consultation and Value
  • Itrsquos Real Money
  • CSR is a Value Strategy
  • Social License Failures cost
  • Why is CSR happening
  • The Mining World Has Changed
  • CSR is a complicated space
  • CSR amp Social License
  • Role of business is changing (click image to play video)
  • Case Studies (of successes)
  • Slide Number 21
  • Uranium Industry in Northern Saskatchewan
  • Challenging area
  • Challenging Times
  • Cameco in 1998
  • Cameco in Northern Saskatchewan (2010)
  • So how did Cameco and the industry do it
  • Placer Dome South Africa
  • Slide Number 29
  • Background
  • Background (cont)
  • Families amp Communities must benefit from mining
  • The Care Project
  • Implications
  • Slide Number 35
  • The Initial 4-Step Plan
  • Reality was different than we expected
  • Reality was different than expected
  • Meeting the challenges
  • TheProcess
  • Some results
  • Chicken raising business
  • Furniture making
  • Unique training programs
  • Rice farming in Mozambique
  • Spaza (convenience) shop
  • And the business value ishellip
  • Slide Number 48
  • What was in it for Placer Dome
  • And then there is HIVAIDS
  • HIVAIDS Facts (in 2000)
  • HIVAIDS Impact
  • HIVAIDS and Gold Mining
  • HIVAIDS Programming
  • Minesite Program
  • Minesite Program
  • Current Community Program
  • Community Mobile Clinic
  • And when HIV prevention doesnrsquot work
  • Industry Home Based Care
  • Home Based Care
  • INDUSTRY HOME BASED CARE RESULTS(Year One)
  • Overview of Placer Dome AIDS Programming
  • Slide Number 64
  • HIVAIDS and Rural Areas
  • HIVAIDS and Rural Areas
  • Reputational Results for Placer Dome
  • Where to next
  • Planned Program
  • Care Positive Summary
  • Andhellip
  • MDG Impacts of Placer Dome in South Africa
  • One thing leads to another
  • PNG HIVAIDS
  • PNG Outcomes (or outputs ndash Irsquom never sure)
  • Slide Number 76
  • PNG AIDS mission to South Africa
  • MDG Impacts of PNG HIVAIDS work
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • MDG Impacts of Eldorado Gold
  • Underwater Logging in Ghana
  • Private Sector and International Development
  • Group Exercise
  • Slide Number 87
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • What we covered
  • Session Objectives
  • Session Objectives
  • Remember
Page 28: Private Sector Contributions To International Development – McGill Executive Education Program Lecture

waynewaynedunncom Slide 28

Placer Dome South Africa

Case study of innovative developmental CSR Demonstrate application of key CSR principles

CSRSustainability Policy Strategic interventions vs shotgun approaches Impact metrics vs expense metrics Partnership strategies (financial operational technical) Leadership and leverage

Slide 29

Overview

bull Background ndash how did this get started

bull The Care Project ndashDeveloping and implementing the plan (challenges partners learnings) ndashBusiness value created

bull HIVAIDS ndash The Crisis and why does it matter ndash Programs and activities

Slide 30

Background 1990s saw massive changes in South

African mining industry ndash over 100000 jobs lost as the industry restructured 1999 ndash Placer Dome purchased a 50

interest in South Deep (WAL) a mine located just outside Johannesburg bull 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 31

Background (cont) In late 1999 after detailed study management

realized that economic reality dictated major restructuring at South Deep

13 of the South Deep workforce (over 2500) workers were retrenched bull 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 ndash that the commitment went

BEYOND THE PAYCHECK

waynewaynedunncom Slide 32

Families amp Communities must benefit from mining

Slide 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 HIVAIDS 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$36 million) budget was established

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

waynewaynedunncom Slide 35

The Mine

2560 Retrenchees bullMozambique bullLesotho bullSouth Africa bullSwaziland bullBotswana

How to successfully provide socio-economic support across remote rural regions of five countries

waynewaynedunncom Slide 36

The Initial 4-Step Plan 1 Consultations with retrenchees in their villages 2 Recruit (from amongst the retrenchees) a group

of 25-30 fieldworkers who would provide frontline support to the retrenchees and their families

3 Locate and register the retrenchees 4 Provide them with training and support to enable

them to become economically active

All of the above to be done in partnership with MDA TEBA and other partners

waynewaynedunncom Slide 37

Reality was different than we expected Retrenchees and their

Unions were still angry over the contested retrenchment Retrencheesrsquo homes were

difficult to locate and registration was often problematic

Consultations with retrenchees

Walking to a remote retrenchee homestead in Lesotho

Slide 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 HIVAIDS Fieldworker training programs Retrenchee education levels Centralized delivery didnrsquot work Project was under-financed We couldnrsquot do it in two years Etc

Slide 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

waynewaynedunncom Slide 40

The Process

Business Operation1 Ongoing availability of Technical Assistance and Business Counselling2 Ongoing faclitiation of skills training needs (ie business agriculture vocational etc)

Decision on Economic Option

Employment StreamEnterprise Stream

Evaluation of Micro Finance Application

Retrenchee is Re-Integrated and Economically Active

PersonalEconomic Plan

Prepared ampAssessed

PersonalEmployment Plan

Prepared

Business amp Financing Plan

Prepared

Employment Planning amp Preparation1 Identification of Employment Options2 Skills Training (VocationalAgricultural etc)3 Employment Counseling Placement (Job searchResume etc)

Business Planning amp Preparation1 Business Orientation a) Introduction to Business b) SkillsProduct Training2 Develop Draft Business Plan (to be reviewed with Counselor) (plan will contain market assessment financial operational and skills upgrading plan)3 Preparation of Micro-Finance Application

Orientation and Awareness Phase1 Registration amp Homestead Visits2 District Counselling Sessions3 Open DaysCareer Fairs4 Financial Lifes Skills Training5 Feedback and Choices Session

Ongoing Processes

Follow-up sessions activities to monitor effectiveness of interventions

Communication and consultation with stakeholders Continuous improvement process (review feedback enhance programs procedures processes)

13-step process Delivered 18 times Across Five countries

Slide 41

Some results 92 of the retrenchees were located

and registered 57 of those (1250) are economically

active 65 (1556) 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 42

Chicken raising business

Slide 43

Furniture making

waynewaynedunncom Slide 44

Unique training programs

waynewaynedunncom Slide 45

Rice farming in Mozambique

Slide 46

Spaza (convenience) shop

Slide 47

And the business value ishellip HIVAIDS 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 ndash 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

waynewaynedunncom Slide 48

ldquoThe project changed the social face of the South African Mining Industryrdquo

Kgosietsile Mogaki

South African Ministry of Minerals and Energy

waynewaynedunncom Slide 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 globally

Through 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 50

And then there is HIVAIDS

RSA ACCOUNTED FOR NEARLY 1 IN 8 OF THE NEW HIV INFECTIONS THAT OCCURRED WORLD WIDE IN 2000

HIV+ PREVALENCE RATE IN WOMEN ATTENDING ANTE-NATAL CLINICS INCREASED FROM 07 IN 1990 TO 248 IN 2001

AVERAGE OF 1700 NEW INFECTIONS PER DAY

LIFE EXPECTANCY WILL DECLINE FROM 65 TO 40 BY 2011

65

40

0

10

20

30

40

50

60

70

2001 2011

Life Expectancy

waynewaynedunncom Slide 51

HIVAIDS Facts (in 2000)

ESTIMATED THAT 12 OF TOTAL RSA POPULATION AND 25 OF MINEWORKERS ARE HIV+

ALREADY 400000 PEOPLE ARE AIDS SICK AND THIS WILL INCREASE TO 14 M BY 2010

YOUNG WOMEN PARTICULARLY VULNERABLE ndash 239 AGED BETWEEN 15 ndash 49 ALREADY INFECTED AND WILL RISE TO 297 BY 2007

AIDS ORPHANS AT PRESENT AMOUNT TO 660000+ AND WILL RISE TO 18M BY 2015

ACCUMULATIVE AIDS DEATHS WILL RISE TO 9M BY 2015

Slide 52

HIVAIDS Impact REDUCED ECONOMIC GROWTH RATE ndash 2010 GDP 20 below a non AIDS

scenario REDUCED POPULATION ndash RSA population 10M smaller than non AIDS scenario SKYROCKETING DEMANDS ON PUBLIC HEALTH SYSTEM - RADICALLY CHANGED PRIVATE SPENDING PATTERNS ndash to healthcare and

funeral costs IMPACT ON SOCIO-ECONOMIC STABILITY (orphans)

HIVAIDS 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 Africa today Nobody can afford to ignore it

Slide 53

HIVAIDS and Gold Mining

$10oz impact if nothing is done (5 of production costs) ~$3oz with maximum

intervention Impact on social and political

stability

Slide 54

HIVAIDS Programming Placer Dome program ndash

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 55

Minesite Program

TRAINING AND EDUCATION

STI amp TB TREATMENT

CONDOM DISTRIBUTION

PEER EDUCATION

VOLUNTARY COUNSELING AND TESTING (VCT)

WELLNESS PROGRAM

MEDICAL REPATRIATION

waynewaynedunncom Slide 56

Minesite Program

waynewaynedunncom Slide 57

Current Community Program

AWARENESS AND EDUCATION PROGRAMS

MOBILE CLINIC

CONDOM amp FEMIDOM DISTRIBUTION

PERIODIC PRESUMPTIVE TREATMENT (PPT)

TREATMENT FOR SEXUALLY TRANSMITTED INFECTIONS ( STI)

waynewaynedunncom Slide 58

COMMUNITY PROGRAM

Community Mobile Clinic

waynewaynedunncom Slide 59

And when HIV prevention doesnrsquot 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 60

Industry Home Based Care

TEBA INFRA-STRUCTURE

TRAINING OF CARE GIVERS

SUPPORT STRUCTURE ndash QUALIFIED STAFF

MONTHLY MEDICATION

WORK WITH OTHER STAKEHOLDERS (EG TRADITIONAL HEALERS)

WORLD BANK DEVELOPMENT INNOVATION AWARD

waynewaynedunncom Slide 61

Home Based Care

Slide 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

waynewaynedunncom Slide 63

Overview of Placer Dome AIDS Programming SOUTH DEEP Sustainable Development Department

bullVoluntary Counseling and testing HIV Negative bullContinue working

On Mine Program Community Program

Modified work program Farm bullAgricultural work Environmental

Medical repatriation

Home Based Care

Benefits Care Positive

HBC EC OPP

Back to work or Re skilled

Wellness Program

waynewaynedunncom Slide 64

But what happens to children and families when the breadwinner canrsquot

work

Slide 65

HIVAIDS and Rural Areas HIVAIDS 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

Slide 66

HIVAIDS 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

waynewaynedunncom

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 CSREthical

Project Award (2004) Numerous other awards Stanford Case Study

waynewaynedunncom Slide 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 69

Planned Program

Care Positive Integrate the Home Based Care

project with the Care process and launch as a fee for service based program to address the social and 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

Care Process

+

Home Based Care

=

Care Positive

waynewaynedunncom Slide 70

Care Positive Summary

waynewaynedunncom

Andhellip 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 $100000 and considerable reputational capital into them Industry went forward with modified HIVAIDS

programming but huge developmental impacts were lost

waynewaynedunncom Slide 72

MDG Impacts of Placer Dome in South Africa

1 Poverty and hunger 2 Some impact on primary education (School

feeding program) 3 Promote gender equality and empower women 4 Reduce child mortality 5 Improve maternal health 6 Combat HIVAIDS malaria and other diseass 7 Ensure environmental sustainability 8 Develop a global partnership for development

(Placer Dome CIDA Civil Society NGOs)

waynewaynedunncom

One thing leads to another

World Bank observed how Placer Domersquos leadership on HIVAIDS 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

waynewaynedunncom

PNG HIVAIDS Scoping mission to

determine what might be done and how Enthusiastic interest from

industry government multi-laterals (WHO UNAIDS World Banketc) ODA (AusAID) CIDA partnered with Place Dome to develop an

HIVAIDS strategy for PNG that integrated industry public sector civil society and international community

waynewaynedunncom

PNG Outcomes (or outputs ndash Irsquom never sure) Partnership with Mining

Industry Civil Society WHO UNAIDS UNDP World Bank PNG AIDS AusAID Oil Palm Industry etc National workshop on

HIVAIDS and publicprivate partnerships SouthSouth Collaboration

Industry government civil society international community study trip to South Africa

waynewaynedunncom

waynewaynedunncom

PNG AIDS mission to South Africa

waynewaynedunncom Slide 78

MDG Impacts of PNG HIVAIDS work

1 Poverty and hunger (nutritional supplements) 2 Some impact on primary education (peripheral) 3 Promote gender equality and empower women 4 Reduce child mortality 5 Improve maternal health 6 Combat HIVAIDS malaria and other diseass 7 Ensure environmental sustainability 8 Develop a global partnership for development

(Placer Dome CIDA Civil Society NGOs)

waynewaynedunncom

Eldorado Gold in Turkey

Major gold find in WestCentral Turkey No successful

mining project launched in decades Eurogold project

built launched and halted by community action in late 1990s ndash still mothballed

UsakKislidag Minesite

Eurogold site

waynewaynedunncom

Eldorado Gold in Turkey

Isolated rural area Nearly half of nearby

communities opposed to mine development Agriculture primary

economic activity in rural communities ndash smallmicro family farms

waynewaynedunncom

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

waynewaynedunncom

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 $075 to $1325 Opened second mine in Turkey

bull Able to deal with controversial watershed issues after relationship success in Usak

waynewaynedunncom Slide 83

MDG Impacts of Eldorado Gold

1 Poverty and hunger (minimal) 2 Some impact on primary education (peripheral) 3 Promote gender equality and empower women 4 Reduce child mortality 5 Improve maternal health 6 Combat HIVAIDS malaria and other diseass 7 Ensure environmental sustainability 8 Develop a global partnership for development

(Placer Dome CIDA Civil Society NGOs)

waynewaynedunncom

Underwater Logging in Ghana

waynewaynedunncom

Private Sector and International Development

Private sector especially resource extraction has a very mixed record bull Some horrendous disasters (Nigeria Warao Peoples in

Venezuela etc) bull Some great successes (Placer Dome Care project

mining and HIVAIDS 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

waynewaynedunncom

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

interestsobjectives overlap

waynewaynedunncom

SDCSR Implementation Challenges

more than a warm fuzzy issue Spending isnrsquot the answer

Plan

Framework

System

Results

Solving social problems Objectives

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Beyond Beads and Trinkets ndash BC Mining Review

A lsquohow torsquo article on mining and CSR

Wayne Dunn

BP Venezuela Indigenous Relations ndash Meeting the Challenge Responsibly and Sustainably

Situational assessment and strategic plan for BP Venezuela Authorized for release by BP

Wayne Dunn

Cameco Community Relations Report

Situational assessment and management strategy Authorized for release by Cameco

Wayne Dunn

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author Beyond Beads lsquon Trinkets A systematic approach to managing community relations

A conference paper describing a systematic approach to community relations management helping companies to methodically develop mutually beneficial relationships with local communities and interests (this is one of the earliest papers on this subject ndash written in 1998)

Wayne Dunn

The costs of conflict with local communities in the extractive industry

Analysis of the cost of community conflicts in the Extractive Sector

Rachel Davis and Daniel M Franks

Creating Shared Value

Harvard Business Review interview with Michael Porter

Video

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Social License Its all about value

Discussion on Social License and shareholder Value

Wayne Dunn

Its about Development Commentary on the CIDAMining Company issue

Wayne Dunn

Integrating corporate strategy and social responsibilitymdashmarket returns from stakeholder engagement

Discussion and analysis on market returns on stakeholder engagement

Witold J Henisz Sinziana Dorobantu and Lite J Narty

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

McGill Reporter ndash Four Burning Questions Wayne Dunn on CSR

Discussion on CSR Wayne Dunn

Miningrsquos contribution to sustainable development ndashan overview

Discussion paper prepared by the International Council on Mining and Metals

Millennium Development Goals

United Nations

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Mining and Agriculture Development

A short lsquohow torsquo guide for mining projects to engage with the local agriculture sector

Al Hingston

PDSA Social Value Brochure

Brochure on social value created by Placer Dome South Africa

Placer Dome

The Value of Social License

Opinion piece published in Northern Miner

Wayne Dunn

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Golden Opportunity When a Canadian multinational laid off hundreds of gold miners in South Africa it went many extra miles to help them get back on their feet

Stanford Business School Case Study on Placer Dome in South Africa

Wayne Dunn

The Changing Resource Development Paradigm Maximizing Sustainable Local Benefits from Resource Development

Strategic thought piece prepared for the government of British Columbia Canada

Wayne Dunn

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

The Disappearing Barriers Between Business And Non-profits Are Driving Innovation

Discussion paper

Katherine Pikus

When Condoms are not enough

World Bank staff magazine article on Placer Dome and South African mining industryrsquos work with HIVAIDS

Craig Andrews

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

MINING AND LOCAL ECONOMIC DEVELOPMENT IN PAPUA NEW GUINEA Preliminary Research on a Potential Pilot Project in Porgera and Lihir

Strategic research and action plan on mining and local economic development in Papua New Guinea prepared for the World Bank

Wayne Dunn

waynewaynedunncom

What we covered

We 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) Publicprivatecivil society collaboration ndash case study

and discussion (CIDA and Mining Companies) Open discussion on topics of interest (time permitting)

waynewaynedunncom

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 howwhy 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

waynewaynedunncom

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 howwhy 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

waynewaynedunncom

Alignment around Shared Value For shareholders For Communities For People For Governments

Private Sector Contributions To International Development

Remember

  • Private Sector Contributions To International Development
  • Session Objectives
  • Map of the morning How we will try to meet the objectives
  • Slide Number 4
  • What is ODA and FDI
  • What is ODA and FDI
  • Why discuss Private Sector Contribution anyway
  • FDIBusiness Outcomes
  • Intention and Strategy Make a Difference
  • Why does the private sector care
  • Community Consultation and Value
  • Itrsquos Real Money
  • CSR is a Value Strategy
  • Social License Failures cost
  • Why is CSR happening
  • The Mining World Has Changed
  • CSR is a complicated space
  • CSR amp Social License
  • Role of business is changing (click image to play video)
  • Case Studies (of successes)
  • Slide Number 21
  • Uranium Industry in Northern Saskatchewan
  • Challenging area
  • Challenging Times
  • Cameco in 1998
  • Cameco in Northern Saskatchewan (2010)
  • So how did Cameco and the industry do it
  • Placer Dome South Africa
  • Slide Number 29
  • Background
  • Background (cont)
  • Families amp Communities must benefit from mining
  • The Care Project
  • Implications
  • Slide Number 35
  • The Initial 4-Step Plan
  • Reality was different than we expected
  • Reality was different than expected
  • Meeting the challenges
  • TheProcess
  • Some results
  • Chicken raising business
  • Furniture making
  • Unique training programs
  • Rice farming in Mozambique
  • Spaza (convenience) shop
  • And the business value ishellip
  • Slide Number 48
  • What was in it for Placer Dome
  • And then there is HIVAIDS
  • HIVAIDS Facts (in 2000)
  • HIVAIDS Impact
  • HIVAIDS and Gold Mining
  • HIVAIDS Programming
  • Minesite Program
  • Minesite Program
  • Current Community Program
  • Community Mobile Clinic
  • And when HIV prevention doesnrsquot work
  • Industry Home Based Care
  • Home Based Care
  • INDUSTRY HOME BASED CARE RESULTS(Year One)
  • Overview of Placer Dome AIDS Programming
  • Slide Number 64
  • HIVAIDS and Rural Areas
  • HIVAIDS and Rural Areas
  • Reputational Results for Placer Dome
  • Where to next
  • Planned Program
  • Care Positive Summary
  • Andhellip
  • MDG Impacts of Placer Dome in South Africa
  • One thing leads to another
  • PNG HIVAIDS
  • PNG Outcomes (or outputs ndash Irsquom never sure)
  • Slide Number 76
  • PNG AIDS mission to South Africa
  • MDG Impacts of PNG HIVAIDS work
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • MDG Impacts of Eldorado Gold
  • Underwater Logging in Ghana
  • Private Sector and International Development
  • Group Exercise
  • Slide Number 87
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • What we covered
  • Session Objectives
  • Session Objectives
  • Remember
Page 29: Private Sector Contributions To International Development – McGill Executive Education Program Lecture

Slide 29

Overview

bull Background ndash how did this get started

bull The Care Project ndashDeveloping and implementing the plan (challenges partners learnings) ndashBusiness value created

bull HIVAIDS ndash The Crisis and why does it matter ndash Programs and activities

Slide 30

Background 1990s saw massive changes in South

African mining industry ndash over 100000 jobs lost as the industry restructured 1999 ndash Placer Dome purchased a 50

interest in South Deep (WAL) a mine located just outside Johannesburg bull 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 31

Background (cont) In late 1999 after detailed study management

realized that economic reality dictated major restructuring at South Deep

13 of the South Deep workforce (over 2500) workers were retrenched bull 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 ndash that the commitment went

BEYOND THE PAYCHECK

waynewaynedunncom Slide 32

Families amp Communities must benefit from mining

Slide 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 HIVAIDS 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$36 million) budget was established

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

waynewaynedunncom Slide 35

The Mine

2560 Retrenchees bullMozambique bullLesotho bullSouth Africa bullSwaziland bullBotswana

How to successfully provide socio-economic support across remote rural regions of five countries

waynewaynedunncom Slide 36

The Initial 4-Step Plan 1 Consultations with retrenchees in their villages 2 Recruit (from amongst the retrenchees) a group

of 25-30 fieldworkers who would provide frontline support to the retrenchees and their families

3 Locate and register the retrenchees 4 Provide them with training and support to enable

them to become economically active

All of the above to be done in partnership with MDA TEBA and other partners

waynewaynedunncom Slide 37

Reality was different than we expected Retrenchees and their

Unions were still angry over the contested retrenchment Retrencheesrsquo homes were

difficult to locate and registration was often problematic

Consultations with retrenchees

Walking to a remote retrenchee homestead in Lesotho

Slide 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 HIVAIDS Fieldworker training programs Retrenchee education levels Centralized delivery didnrsquot work Project was under-financed We couldnrsquot do it in two years Etc

Slide 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

waynewaynedunncom Slide 40

The Process

Business Operation1 Ongoing availability of Technical Assistance and Business Counselling2 Ongoing faclitiation of skills training needs (ie business agriculture vocational etc)

Decision on Economic Option

Employment StreamEnterprise Stream

Evaluation of Micro Finance Application

Retrenchee is Re-Integrated and Economically Active

PersonalEconomic Plan

Prepared ampAssessed

PersonalEmployment Plan

Prepared

Business amp Financing Plan

Prepared

Employment Planning amp Preparation1 Identification of Employment Options2 Skills Training (VocationalAgricultural etc)3 Employment Counseling Placement (Job searchResume etc)

Business Planning amp Preparation1 Business Orientation a) Introduction to Business b) SkillsProduct Training2 Develop Draft Business Plan (to be reviewed with Counselor) (plan will contain market assessment financial operational and skills upgrading plan)3 Preparation of Micro-Finance Application

Orientation and Awareness Phase1 Registration amp Homestead Visits2 District Counselling Sessions3 Open DaysCareer Fairs4 Financial Lifes Skills Training5 Feedback and Choices Session

Ongoing Processes

Follow-up sessions activities to monitor effectiveness of interventions

Communication and consultation with stakeholders Continuous improvement process (review feedback enhance programs procedures processes)

13-step process Delivered 18 times Across Five countries

Slide 41

Some results 92 of the retrenchees were located

and registered 57 of those (1250) are economically

active 65 (1556) 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 42

Chicken raising business

Slide 43

Furniture making

waynewaynedunncom Slide 44

Unique training programs

waynewaynedunncom Slide 45

Rice farming in Mozambique

Slide 46

Spaza (convenience) shop

Slide 47

And the business value ishellip HIVAIDS 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 ndash 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

waynewaynedunncom Slide 48

ldquoThe project changed the social face of the South African Mining Industryrdquo

Kgosietsile Mogaki

South African Ministry of Minerals and Energy

waynewaynedunncom Slide 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 globally

Through 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 50

And then there is HIVAIDS

RSA ACCOUNTED FOR NEARLY 1 IN 8 OF THE NEW HIV INFECTIONS THAT OCCURRED WORLD WIDE IN 2000

HIV+ PREVALENCE RATE IN WOMEN ATTENDING ANTE-NATAL CLINICS INCREASED FROM 07 IN 1990 TO 248 IN 2001

AVERAGE OF 1700 NEW INFECTIONS PER DAY

LIFE EXPECTANCY WILL DECLINE FROM 65 TO 40 BY 2011

65

40

0

10

20

30

40

50

60

70

2001 2011

Life Expectancy

waynewaynedunncom Slide 51

HIVAIDS Facts (in 2000)

ESTIMATED THAT 12 OF TOTAL RSA POPULATION AND 25 OF MINEWORKERS ARE HIV+

ALREADY 400000 PEOPLE ARE AIDS SICK AND THIS WILL INCREASE TO 14 M BY 2010

YOUNG WOMEN PARTICULARLY VULNERABLE ndash 239 AGED BETWEEN 15 ndash 49 ALREADY INFECTED AND WILL RISE TO 297 BY 2007

AIDS ORPHANS AT PRESENT AMOUNT TO 660000+ AND WILL RISE TO 18M BY 2015

ACCUMULATIVE AIDS DEATHS WILL RISE TO 9M BY 2015

Slide 52

HIVAIDS Impact REDUCED ECONOMIC GROWTH RATE ndash 2010 GDP 20 below a non AIDS

scenario REDUCED POPULATION ndash RSA population 10M smaller than non AIDS scenario SKYROCKETING DEMANDS ON PUBLIC HEALTH SYSTEM - RADICALLY CHANGED PRIVATE SPENDING PATTERNS ndash to healthcare and

funeral costs IMPACT ON SOCIO-ECONOMIC STABILITY (orphans)

HIVAIDS 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 Africa today Nobody can afford to ignore it

Slide 53

HIVAIDS and Gold Mining

$10oz impact if nothing is done (5 of production costs) ~$3oz with maximum

intervention Impact on social and political

stability

Slide 54

HIVAIDS Programming Placer Dome program ndash

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 55

Minesite Program

TRAINING AND EDUCATION

STI amp TB TREATMENT

CONDOM DISTRIBUTION

PEER EDUCATION

VOLUNTARY COUNSELING AND TESTING (VCT)

WELLNESS PROGRAM

MEDICAL REPATRIATION

waynewaynedunncom Slide 56

Minesite Program

waynewaynedunncom Slide 57

Current Community Program

AWARENESS AND EDUCATION PROGRAMS

MOBILE CLINIC

CONDOM amp FEMIDOM DISTRIBUTION

PERIODIC PRESUMPTIVE TREATMENT (PPT)

TREATMENT FOR SEXUALLY TRANSMITTED INFECTIONS ( STI)

waynewaynedunncom Slide 58

COMMUNITY PROGRAM

Community Mobile Clinic

waynewaynedunncom Slide 59

And when HIV prevention doesnrsquot 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 60

Industry Home Based Care

TEBA INFRA-STRUCTURE

TRAINING OF CARE GIVERS

SUPPORT STRUCTURE ndash QUALIFIED STAFF

MONTHLY MEDICATION

WORK WITH OTHER STAKEHOLDERS (EG TRADITIONAL HEALERS)

WORLD BANK DEVELOPMENT INNOVATION AWARD

waynewaynedunncom Slide 61

Home Based Care

Slide 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

waynewaynedunncom Slide 63

Overview of Placer Dome AIDS Programming SOUTH DEEP Sustainable Development Department

bullVoluntary Counseling and testing HIV Negative bullContinue working

On Mine Program Community Program

Modified work program Farm bullAgricultural work Environmental

Medical repatriation

Home Based Care

Benefits Care Positive

HBC EC OPP

Back to work or Re skilled

Wellness Program

waynewaynedunncom Slide 64

But what happens to children and families when the breadwinner canrsquot

work

Slide 65

HIVAIDS and Rural Areas HIVAIDS 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

Slide 66

HIVAIDS 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

waynewaynedunncom

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 CSREthical

Project Award (2004) Numerous other awards Stanford Case Study

waynewaynedunncom Slide 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 69

Planned Program

Care Positive Integrate the Home Based Care

project with the Care process and launch as a fee for service based program to address the social and 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

Care Process

+

Home Based Care

=

Care Positive

waynewaynedunncom Slide 70

Care Positive Summary

waynewaynedunncom

Andhellip 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 $100000 and considerable reputational capital into them Industry went forward with modified HIVAIDS

programming but huge developmental impacts were lost

waynewaynedunncom Slide 72

MDG Impacts of Placer Dome in South Africa

1 Poverty and hunger 2 Some impact on primary education (School

feeding program) 3 Promote gender equality and empower women 4 Reduce child mortality 5 Improve maternal health 6 Combat HIVAIDS malaria and other diseass 7 Ensure environmental sustainability 8 Develop a global partnership for development

(Placer Dome CIDA Civil Society NGOs)

waynewaynedunncom

One thing leads to another

World Bank observed how Placer Domersquos leadership on HIVAIDS 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

waynewaynedunncom

PNG HIVAIDS Scoping mission to

determine what might be done and how Enthusiastic interest from

industry government multi-laterals (WHO UNAIDS World Banketc) ODA (AusAID) CIDA partnered with Place Dome to develop an

HIVAIDS strategy for PNG that integrated industry public sector civil society and international community

waynewaynedunncom

PNG Outcomes (or outputs ndash Irsquom never sure) Partnership with Mining

Industry Civil Society WHO UNAIDS UNDP World Bank PNG AIDS AusAID Oil Palm Industry etc National workshop on

HIVAIDS and publicprivate partnerships SouthSouth Collaboration

Industry government civil society international community study trip to South Africa

waynewaynedunncom

waynewaynedunncom

PNG AIDS mission to South Africa

waynewaynedunncom Slide 78

MDG Impacts of PNG HIVAIDS work

1 Poverty and hunger (nutritional supplements) 2 Some impact on primary education (peripheral) 3 Promote gender equality and empower women 4 Reduce child mortality 5 Improve maternal health 6 Combat HIVAIDS malaria and other diseass 7 Ensure environmental sustainability 8 Develop a global partnership for development

(Placer Dome CIDA Civil Society NGOs)

waynewaynedunncom

Eldorado Gold in Turkey

Major gold find in WestCentral Turkey No successful

mining project launched in decades Eurogold project

built launched and halted by community action in late 1990s ndash still mothballed

UsakKislidag Minesite

Eurogold site

waynewaynedunncom

Eldorado Gold in Turkey

Isolated rural area Nearly half of nearby

communities opposed to mine development Agriculture primary

economic activity in rural communities ndash smallmicro family farms

waynewaynedunncom

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

waynewaynedunncom

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 $075 to $1325 Opened second mine in Turkey

bull Able to deal with controversial watershed issues after relationship success in Usak

waynewaynedunncom Slide 83

MDG Impacts of Eldorado Gold

1 Poverty and hunger (minimal) 2 Some impact on primary education (peripheral) 3 Promote gender equality and empower women 4 Reduce child mortality 5 Improve maternal health 6 Combat HIVAIDS malaria and other diseass 7 Ensure environmental sustainability 8 Develop a global partnership for development

(Placer Dome CIDA Civil Society NGOs)

waynewaynedunncom

Underwater Logging in Ghana

waynewaynedunncom

Private Sector and International Development

Private sector especially resource extraction has a very mixed record bull Some horrendous disasters (Nigeria Warao Peoples in

Venezuela etc) bull Some great successes (Placer Dome Care project

mining and HIVAIDS 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

waynewaynedunncom

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

interestsobjectives overlap

waynewaynedunncom

SDCSR Implementation Challenges

more than a warm fuzzy issue Spending isnrsquot the answer

Plan

Framework

System

Results

Solving social problems Objectives

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Beyond Beads and Trinkets ndash BC Mining Review

A lsquohow torsquo article on mining and CSR

Wayne Dunn

BP Venezuela Indigenous Relations ndash Meeting the Challenge Responsibly and Sustainably

Situational assessment and strategic plan for BP Venezuela Authorized for release by BP

Wayne Dunn

Cameco Community Relations Report

Situational assessment and management strategy Authorized for release by Cameco

Wayne Dunn

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author Beyond Beads lsquon Trinkets A systematic approach to managing community relations

A conference paper describing a systematic approach to community relations management helping companies to methodically develop mutually beneficial relationships with local communities and interests (this is one of the earliest papers on this subject ndash written in 1998)

Wayne Dunn

The costs of conflict with local communities in the extractive industry

Analysis of the cost of community conflicts in the Extractive Sector

Rachel Davis and Daniel M Franks

Creating Shared Value

Harvard Business Review interview with Michael Porter

Video

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Social License Its all about value

Discussion on Social License and shareholder Value

Wayne Dunn

Its about Development Commentary on the CIDAMining Company issue

Wayne Dunn

Integrating corporate strategy and social responsibilitymdashmarket returns from stakeholder engagement

Discussion and analysis on market returns on stakeholder engagement

Witold J Henisz Sinziana Dorobantu and Lite J Narty

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

McGill Reporter ndash Four Burning Questions Wayne Dunn on CSR

Discussion on CSR Wayne Dunn

Miningrsquos contribution to sustainable development ndashan overview

Discussion paper prepared by the International Council on Mining and Metals

Millennium Development Goals

United Nations

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Mining and Agriculture Development

A short lsquohow torsquo guide for mining projects to engage with the local agriculture sector

Al Hingston

PDSA Social Value Brochure

Brochure on social value created by Placer Dome South Africa

Placer Dome

The Value of Social License

Opinion piece published in Northern Miner

Wayne Dunn

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Golden Opportunity When a Canadian multinational laid off hundreds of gold miners in South Africa it went many extra miles to help them get back on their feet

Stanford Business School Case Study on Placer Dome in South Africa

Wayne Dunn

The Changing Resource Development Paradigm Maximizing Sustainable Local Benefits from Resource Development

Strategic thought piece prepared for the government of British Columbia Canada

Wayne Dunn

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

The Disappearing Barriers Between Business And Non-profits Are Driving Innovation

Discussion paper

Katherine Pikus

When Condoms are not enough

World Bank staff magazine article on Placer Dome and South African mining industryrsquos work with HIVAIDS

Craig Andrews

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

MINING AND LOCAL ECONOMIC DEVELOPMENT IN PAPUA NEW GUINEA Preliminary Research on a Potential Pilot Project in Porgera and Lihir

Strategic research and action plan on mining and local economic development in Papua New Guinea prepared for the World Bank

Wayne Dunn

waynewaynedunncom

What we covered

We 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) Publicprivatecivil society collaboration ndash case study

and discussion (CIDA and Mining Companies) Open discussion on topics of interest (time permitting)

waynewaynedunncom

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 howwhy 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

waynewaynedunncom

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 howwhy 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

waynewaynedunncom

Alignment around Shared Value For shareholders For Communities For People For Governments

Private Sector Contributions To International Development

Remember

  • Private Sector Contributions To International Development
  • Session Objectives
  • Map of the morning How we will try to meet the objectives
  • Slide Number 4
  • What is ODA and FDI
  • What is ODA and FDI
  • Why discuss Private Sector Contribution anyway
  • FDIBusiness Outcomes
  • Intention and Strategy Make a Difference
  • Why does the private sector care
  • Community Consultation and Value
  • Itrsquos Real Money
  • CSR is a Value Strategy
  • Social License Failures cost
  • Why is CSR happening
  • The Mining World Has Changed
  • CSR is a complicated space
  • CSR amp Social License
  • Role of business is changing (click image to play video)
  • Case Studies (of successes)
  • Slide Number 21
  • Uranium Industry in Northern Saskatchewan
  • Challenging area
  • Challenging Times
  • Cameco in 1998
  • Cameco in Northern Saskatchewan (2010)
  • So how did Cameco and the industry do it
  • Placer Dome South Africa
  • Slide Number 29
  • Background
  • Background (cont)
  • Families amp Communities must benefit from mining
  • The Care Project
  • Implications
  • Slide Number 35
  • The Initial 4-Step Plan
  • Reality was different than we expected
  • Reality was different than expected
  • Meeting the challenges
  • TheProcess
  • Some results
  • Chicken raising business
  • Furniture making
  • Unique training programs
  • Rice farming in Mozambique
  • Spaza (convenience) shop
  • And the business value ishellip
  • Slide Number 48
  • What was in it for Placer Dome
  • And then there is HIVAIDS
  • HIVAIDS Facts (in 2000)
  • HIVAIDS Impact
  • HIVAIDS and Gold Mining
  • HIVAIDS Programming
  • Minesite Program
  • Minesite Program
  • Current Community Program
  • Community Mobile Clinic
  • And when HIV prevention doesnrsquot work
  • Industry Home Based Care
  • Home Based Care
  • INDUSTRY HOME BASED CARE RESULTS(Year One)
  • Overview of Placer Dome AIDS Programming
  • Slide Number 64
  • HIVAIDS and Rural Areas
  • HIVAIDS and Rural Areas
  • Reputational Results for Placer Dome
  • Where to next
  • Planned Program
  • Care Positive Summary
  • Andhellip
  • MDG Impacts of Placer Dome in South Africa
  • One thing leads to another
  • PNG HIVAIDS
  • PNG Outcomes (or outputs ndash Irsquom never sure)
  • Slide Number 76
  • PNG AIDS mission to South Africa
  • MDG Impacts of PNG HIVAIDS work
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • MDG Impacts of Eldorado Gold
  • Underwater Logging in Ghana
  • Private Sector and International Development
  • Group Exercise
  • Slide Number 87
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • What we covered
  • Session Objectives
  • Session Objectives
  • Remember
Page 30: Private Sector Contributions To International Development – McGill Executive Education Program Lecture

Slide 30

Background 1990s saw massive changes in South

African mining industry ndash over 100000 jobs lost as the industry restructured 1999 ndash Placer Dome purchased a 50

interest in South Deep (WAL) a mine located just outside Johannesburg bull 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 31

Background (cont) In late 1999 after detailed study management

realized that economic reality dictated major restructuring at South Deep

13 of the South Deep workforce (over 2500) workers were retrenched bull 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 ndash that the commitment went

BEYOND THE PAYCHECK

waynewaynedunncom Slide 32

Families amp Communities must benefit from mining

Slide 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 HIVAIDS 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$36 million) budget was established

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

waynewaynedunncom Slide 35

The Mine

2560 Retrenchees bullMozambique bullLesotho bullSouth Africa bullSwaziland bullBotswana

How to successfully provide socio-economic support across remote rural regions of five countries

waynewaynedunncom Slide 36

The Initial 4-Step Plan 1 Consultations with retrenchees in their villages 2 Recruit (from amongst the retrenchees) a group

of 25-30 fieldworkers who would provide frontline support to the retrenchees and their families

3 Locate and register the retrenchees 4 Provide them with training and support to enable

them to become economically active

All of the above to be done in partnership with MDA TEBA and other partners

waynewaynedunncom Slide 37

Reality was different than we expected Retrenchees and their

Unions were still angry over the contested retrenchment Retrencheesrsquo homes were

difficult to locate and registration was often problematic

Consultations with retrenchees

Walking to a remote retrenchee homestead in Lesotho

Slide 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 HIVAIDS Fieldworker training programs Retrenchee education levels Centralized delivery didnrsquot work Project was under-financed We couldnrsquot do it in two years Etc

Slide 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

waynewaynedunncom Slide 40

The Process

Business Operation1 Ongoing availability of Technical Assistance and Business Counselling2 Ongoing faclitiation of skills training needs (ie business agriculture vocational etc)

Decision on Economic Option

Employment StreamEnterprise Stream

Evaluation of Micro Finance Application

Retrenchee is Re-Integrated and Economically Active

PersonalEconomic Plan

Prepared ampAssessed

PersonalEmployment Plan

Prepared

Business amp Financing Plan

Prepared

Employment Planning amp Preparation1 Identification of Employment Options2 Skills Training (VocationalAgricultural etc)3 Employment Counseling Placement (Job searchResume etc)

Business Planning amp Preparation1 Business Orientation a) Introduction to Business b) SkillsProduct Training2 Develop Draft Business Plan (to be reviewed with Counselor) (plan will contain market assessment financial operational and skills upgrading plan)3 Preparation of Micro-Finance Application

Orientation and Awareness Phase1 Registration amp Homestead Visits2 District Counselling Sessions3 Open DaysCareer Fairs4 Financial Lifes Skills Training5 Feedback and Choices Session

Ongoing Processes

Follow-up sessions activities to monitor effectiveness of interventions

Communication and consultation with stakeholders Continuous improvement process (review feedback enhance programs procedures processes)

13-step process Delivered 18 times Across Five countries

Slide 41

Some results 92 of the retrenchees were located

and registered 57 of those (1250) are economically

active 65 (1556) 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 42

Chicken raising business

Slide 43

Furniture making

waynewaynedunncom Slide 44

Unique training programs

waynewaynedunncom Slide 45

Rice farming in Mozambique

Slide 46

Spaza (convenience) shop

Slide 47

And the business value ishellip HIVAIDS 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 ndash 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

waynewaynedunncom Slide 48

ldquoThe project changed the social face of the South African Mining Industryrdquo

Kgosietsile Mogaki

South African Ministry of Minerals and Energy

waynewaynedunncom Slide 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 globally

Through 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 50

And then there is HIVAIDS

RSA ACCOUNTED FOR NEARLY 1 IN 8 OF THE NEW HIV INFECTIONS THAT OCCURRED WORLD WIDE IN 2000

HIV+ PREVALENCE RATE IN WOMEN ATTENDING ANTE-NATAL CLINICS INCREASED FROM 07 IN 1990 TO 248 IN 2001

AVERAGE OF 1700 NEW INFECTIONS PER DAY

LIFE EXPECTANCY WILL DECLINE FROM 65 TO 40 BY 2011

65

40

0

10

20

30

40

50

60

70

2001 2011

Life Expectancy

waynewaynedunncom Slide 51

HIVAIDS Facts (in 2000)

ESTIMATED THAT 12 OF TOTAL RSA POPULATION AND 25 OF MINEWORKERS ARE HIV+

ALREADY 400000 PEOPLE ARE AIDS SICK AND THIS WILL INCREASE TO 14 M BY 2010

YOUNG WOMEN PARTICULARLY VULNERABLE ndash 239 AGED BETWEEN 15 ndash 49 ALREADY INFECTED AND WILL RISE TO 297 BY 2007

AIDS ORPHANS AT PRESENT AMOUNT TO 660000+ AND WILL RISE TO 18M BY 2015

ACCUMULATIVE AIDS DEATHS WILL RISE TO 9M BY 2015

Slide 52

HIVAIDS Impact REDUCED ECONOMIC GROWTH RATE ndash 2010 GDP 20 below a non AIDS

scenario REDUCED POPULATION ndash RSA population 10M smaller than non AIDS scenario SKYROCKETING DEMANDS ON PUBLIC HEALTH SYSTEM - RADICALLY CHANGED PRIVATE SPENDING PATTERNS ndash to healthcare and

funeral costs IMPACT ON SOCIO-ECONOMIC STABILITY (orphans)

HIVAIDS 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 Africa today Nobody can afford to ignore it

Slide 53

HIVAIDS and Gold Mining

$10oz impact if nothing is done (5 of production costs) ~$3oz with maximum

intervention Impact on social and political

stability

Slide 54

HIVAIDS Programming Placer Dome program ndash

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 55

Minesite Program

TRAINING AND EDUCATION

STI amp TB TREATMENT

CONDOM DISTRIBUTION

PEER EDUCATION

VOLUNTARY COUNSELING AND TESTING (VCT)

WELLNESS PROGRAM

MEDICAL REPATRIATION

waynewaynedunncom Slide 56

Minesite Program

waynewaynedunncom Slide 57

Current Community Program

AWARENESS AND EDUCATION PROGRAMS

MOBILE CLINIC

CONDOM amp FEMIDOM DISTRIBUTION

PERIODIC PRESUMPTIVE TREATMENT (PPT)

TREATMENT FOR SEXUALLY TRANSMITTED INFECTIONS ( STI)

waynewaynedunncom Slide 58

COMMUNITY PROGRAM

Community Mobile Clinic

waynewaynedunncom Slide 59

And when HIV prevention doesnrsquot 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 60

Industry Home Based Care

TEBA INFRA-STRUCTURE

TRAINING OF CARE GIVERS

SUPPORT STRUCTURE ndash QUALIFIED STAFF

MONTHLY MEDICATION

WORK WITH OTHER STAKEHOLDERS (EG TRADITIONAL HEALERS)

WORLD BANK DEVELOPMENT INNOVATION AWARD

waynewaynedunncom Slide 61

Home Based Care

Slide 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

waynewaynedunncom Slide 63

Overview of Placer Dome AIDS Programming SOUTH DEEP Sustainable Development Department

bullVoluntary Counseling and testing HIV Negative bullContinue working

On Mine Program Community Program

Modified work program Farm bullAgricultural work Environmental

Medical repatriation

Home Based Care

Benefits Care Positive

HBC EC OPP

Back to work or Re skilled

Wellness Program

waynewaynedunncom Slide 64

But what happens to children and families when the breadwinner canrsquot

work

Slide 65

HIVAIDS and Rural Areas HIVAIDS 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

Slide 66

HIVAIDS 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

waynewaynedunncom

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 CSREthical

Project Award (2004) Numerous other awards Stanford Case Study

waynewaynedunncom Slide 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 69

Planned Program

Care Positive Integrate the Home Based Care

project with the Care process and launch as a fee for service based program to address the social and 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

Care Process

+

Home Based Care

=

Care Positive

waynewaynedunncom Slide 70

Care Positive Summary

waynewaynedunncom

Andhellip 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 $100000 and considerable reputational capital into them Industry went forward with modified HIVAIDS

programming but huge developmental impacts were lost

waynewaynedunncom Slide 72

MDG Impacts of Placer Dome in South Africa

1 Poverty and hunger 2 Some impact on primary education (School

feeding program) 3 Promote gender equality and empower women 4 Reduce child mortality 5 Improve maternal health 6 Combat HIVAIDS malaria and other diseass 7 Ensure environmental sustainability 8 Develop a global partnership for development

(Placer Dome CIDA Civil Society NGOs)

waynewaynedunncom

One thing leads to another

World Bank observed how Placer Domersquos leadership on HIVAIDS 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

waynewaynedunncom

PNG HIVAIDS Scoping mission to

determine what might be done and how Enthusiastic interest from

industry government multi-laterals (WHO UNAIDS World Banketc) ODA (AusAID) CIDA partnered with Place Dome to develop an

HIVAIDS strategy for PNG that integrated industry public sector civil society and international community

waynewaynedunncom

PNG Outcomes (or outputs ndash Irsquom never sure) Partnership with Mining

Industry Civil Society WHO UNAIDS UNDP World Bank PNG AIDS AusAID Oil Palm Industry etc National workshop on

HIVAIDS and publicprivate partnerships SouthSouth Collaboration

Industry government civil society international community study trip to South Africa

waynewaynedunncom

waynewaynedunncom

PNG AIDS mission to South Africa

waynewaynedunncom Slide 78

MDG Impacts of PNG HIVAIDS work

1 Poverty and hunger (nutritional supplements) 2 Some impact on primary education (peripheral) 3 Promote gender equality and empower women 4 Reduce child mortality 5 Improve maternal health 6 Combat HIVAIDS malaria and other diseass 7 Ensure environmental sustainability 8 Develop a global partnership for development

(Placer Dome CIDA Civil Society NGOs)

waynewaynedunncom

Eldorado Gold in Turkey

Major gold find in WestCentral Turkey No successful

mining project launched in decades Eurogold project

built launched and halted by community action in late 1990s ndash still mothballed

UsakKislidag Minesite

Eurogold site

waynewaynedunncom

Eldorado Gold in Turkey

Isolated rural area Nearly half of nearby

communities opposed to mine development Agriculture primary

economic activity in rural communities ndash smallmicro family farms

waynewaynedunncom

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

waynewaynedunncom

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 $075 to $1325 Opened second mine in Turkey

bull Able to deal with controversial watershed issues after relationship success in Usak

waynewaynedunncom Slide 83

MDG Impacts of Eldorado Gold

1 Poverty and hunger (minimal) 2 Some impact on primary education (peripheral) 3 Promote gender equality and empower women 4 Reduce child mortality 5 Improve maternal health 6 Combat HIVAIDS malaria and other diseass 7 Ensure environmental sustainability 8 Develop a global partnership for development

(Placer Dome CIDA Civil Society NGOs)

waynewaynedunncom

Underwater Logging in Ghana

waynewaynedunncom

Private Sector and International Development

Private sector especially resource extraction has a very mixed record bull Some horrendous disasters (Nigeria Warao Peoples in

Venezuela etc) bull Some great successes (Placer Dome Care project

mining and HIVAIDS 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

waynewaynedunncom

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

interestsobjectives overlap

waynewaynedunncom

SDCSR Implementation Challenges

more than a warm fuzzy issue Spending isnrsquot the answer

Plan

Framework

System

Results

Solving social problems Objectives

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Beyond Beads and Trinkets ndash BC Mining Review

A lsquohow torsquo article on mining and CSR

Wayne Dunn

BP Venezuela Indigenous Relations ndash Meeting the Challenge Responsibly and Sustainably

Situational assessment and strategic plan for BP Venezuela Authorized for release by BP

Wayne Dunn

Cameco Community Relations Report

Situational assessment and management strategy Authorized for release by Cameco

Wayne Dunn

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author Beyond Beads lsquon Trinkets A systematic approach to managing community relations

A conference paper describing a systematic approach to community relations management helping companies to methodically develop mutually beneficial relationships with local communities and interests (this is one of the earliest papers on this subject ndash written in 1998)

Wayne Dunn

The costs of conflict with local communities in the extractive industry

Analysis of the cost of community conflicts in the Extractive Sector

Rachel Davis and Daniel M Franks

Creating Shared Value

Harvard Business Review interview with Michael Porter

Video

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Social License Its all about value

Discussion on Social License and shareholder Value

Wayne Dunn

Its about Development Commentary on the CIDAMining Company issue

Wayne Dunn

Integrating corporate strategy and social responsibilitymdashmarket returns from stakeholder engagement

Discussion and analysis on market returns on stakeholder engagement

Witold J Henisz Sinziana Dorobantu and Lite J Narty

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

McGill Reporter ndash Four Burning Questions Wayne Dunn on CSR

Discussion on CSR Wayne Dunn

Miningrsquos contribution to sustainable development ndashan overview

Discussion paper prepared by the International Council on Mining and Metals

Millennium Development Goals

United Nations

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Mining and Agriculture Development

A short lsquohow torsquo guide for mining projects to engage with the local agriculture sector

Al Hingston

PDSA Social Value Brochure

Brochure on social value created by Placer Dome South Africa

Placer Dome

The Value of Social License

Opinion piece published in Northern Miner

Wayne Dunn

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Golden Opportunity When a Canadian multinational laid off hundreds of gold miners in South Africa it went many extra miles to help them get back on their feet

Stanford Business School Case Study on Placer Dome in South Africa

Wayne Dunn

The Changing Resource Development Paradigm Maximizing Sustainable Local Benefits from Resource Development

Strategic thought piece prepared for the government of British Columbia Canada

Wayne Dunn

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

The Disappearing Barriers Between Business And Non-profits Are Driving Innovation

Discussion paper

Katherine Pikus

When Condoms are not enough

World Bank staff magazine article on Placer Dome and South African mining industryrsquos work with HIVAIDS

Craig Andrews

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

MINING AND LOCAL ECONOMIC DEVELOPMENT IN PAPUA NEW GUINEA Preliminary Research on a Potential Pilot Project in Porgera and Lihir

Strategic research and action plan on mining and local economic development in Papua New Guinea prepared for the World Bank

Wayne Dunn

waynewaynedunncom

What we covered

We 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) Publicprivatecivil society collaboration ndash case study

and discussion (CIDA and Mining Companies) Open discussion on topics of interest (time permitting)

waynewaynedunncom

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 howwhy 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

waynewaynedunncom

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 howwhy 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

waynewaynedunncom

Alignment around Shared Value For shareholders For Communities For People For Governments

Private Sector Contributions To International Development

Remember

  • Private Sector Contributions To International Development
  • Session Objectives
  • Map of the morning How we will try to meet the objectives
  • Slide Number 4
  • What is ODA and FDI
  • What is ODA and FDI
  • Why discuss Private Sector Contribution anyway
  • FDIBusiness Outcomes
  • Intention and Strategy Make a Difference
  • Why does the private sector care
  • Community Consultation and Value
  • Itrsquos Real Money
  • CSR is a Value Strategy
  • Social License Failures cost
  • Why is CSR happening
  • The Mining World Has Changed
  • CSR is a complicated space
  • CSR amp Social License
  • Role of business is changing (click image to play video)
  • Case Studies (of successes)
  • Slide Number 21
  • Uranium Industry in Northern Saskatchewan
  • Challenging area
  • Challenging Times
  • Cameco in 1998
  • Cameco in Northern Saskatchewan (2010)
  • So how did Cameco and the industry do it
  • Placer Dome South Africa
  • Slide Number 29
  • Background
  • Background (cont)
  • Families amp Communities must benefit from mining
  • The Care Project
  • Implications
  • Slide Number 35
  • The Initial 4-Step Plan
  • Reality was different than we expected
  • Reality was different than expected
  • Meeting the challenges
  • TheProcess
  • Some results
  • Chicken raising business
  • Furniture making
  • Unique training programs
  • Rice farming in Mozambique
  • Spaza (convenience) shop
  • And the business value ishellip
  • Slide Number 48
  • What was in it for Placer Dome
  • And then there is HIVAIDS
  • HIVAIDS Facts (in 2000)
  • HIVAIDS Impact
  • HIVAIDS and Gold Mining
  • HIVAIDS Programming
  • Minesite Program
  • Minesite Program
  • Current Community Program
  • Community Mobile Clinic
  • And when HIV prevention doesnrsquot work
  • Industry Home Based Care
  • Home Based Care
  • INDUSTRY HOME BASED CARE RESULTS(Year One)
  • Overview of Placer Dome AIDS Programming
  • Slide Number 64
  • HIVAIDS and Rural Areas
  • HIVAIDS and Rural Areas
  • Reputational Results for Placer Dome
  • Where to next
  • Planned Program
  • Care Positive Summary
  • Andhellip
  • MDG Impacts of Placer Dome in South Africa
  • One thing leads to another
  • PNG HIVAIDS
  • PNG Outcomes (or outputs ndash Irsquom never sure)
  • Slide Number 76
  • PNG AIDS mission to South Africa
  • MDG Impacts of PNG HIVAIDS work
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • MDG Impacts of Eldorado Gold
  • Underwater Logging in Ghana
  • Private Sector and International Development
  • Group Exercise
  • Slide Number 87
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • What we covered
  • Session Objectives
  • Session Objectives
  • Remember
Page 31: Private Sector Contributions To International Development – McGill Executive Education Program Lecture

Slide 31

Background (cont) In late 1999 after detailed study management

realized that economic reality dictated major restructuring at South Deep

13 of the South Deep workforce (over 2500) workers were retrenched bull 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 ndash that the commitment went

BEYOND THE PAYCHECK

waynewaynedunncom Slide 32

Families amp Communities must benefit from mining

Slide 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 HIVAIDS 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$36 million) budget was established

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

waynewaynedunncom Slide 35

The Mine

2560 Retrenchees bullMozambique bullLesotho bullSouth Africa bullSwaziland bullBotswana

How to successfully provide socio-economic support across remote rural regions of five countries

waynewaynedunncom Slide 36

The Initial 4-Step Plan 1 Consultations with retrenchees in their villages 2 Recruit (from amongst the retrenchees) a group

of 25-30 fieldworkers who would provide frontline support to the retrenchees and their families

3 Locate and register the retrenchees 4 Provide them with training and support to enable

them to become economically active

All of the above to be done in partnership with MDA TEBA and other partners

waynewaynedunncom Slide 37

Reality was different than we expected Retrenchees and their

Unions were still angry over the contested retrenchment Retrencheesrsquo homes were

difficult to locate and registration was often problematic

Consultations with retrenchees

Walking to a remote retrenchee homestead in Lesotho

Slide 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 HIVAIDS Fieldworker training programs Retrenchee education levels Centralized delivery didnrsquot work Project was under-financed We couldnrsquot do it in two years Etc

Slide 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

waynewaynedunncom Slide 40

The Process

Business Operation1 Ongoing availability of Technical Assistance and Business Counselling2 Ongoing faclitiation of skills training needs (ie business agriculture vocational etc)

Decision on Economic Option

Employment StreamEnterprise Stream

Evaluation of Micro Finance Application

Retrenchee is Re-Integrated and Economically Active

PersonalEconomic Plan

Prepared ampAssessed

PersonalEmployment Plan

Prepared

Business amp Financing Plan

Prepared

Employment Planning amp Preparation1 Identification of Employment Options2 Skills Training (VocationalAgricultural etc)3 Employment Counseling Placement (Job searchResume etc)

Business Planning amp Preparation1 Business Orientation a) Introduction to Business b) SkillsProduct Training2 Develop Draft Business Plan (to be reviewed with Counselor) (plan will contain market assessment financial operational and skills upgrading plan)3 Preparation of Micro-Finance Application

Orientation and Awareness Phase1 Registration amp Homestead Visits2 District Counselling Sessions3 Open DaysCareer Fairs4 Financial Lifes Skills Training5 Feedback and Choices Session

Ongoing Processes

Follow-up sessions activities to monitor effectiveness of interventions

Communication and consultation with stakeholders Continuous improvement process (review feedback enhance programs procedures processes)

13-step process Delivered 18 times Across Five countries

Slide 41

Some results 92 of the retrenchees were located

and registered 57 of those (1250) are economically

active 65 (1556) 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 42

Chicken raising business

Slide 43

Furniture making

waynewaynedunncom Slide 44

Unique training programs

waynewaynedunncom Slide 45

Rice farming in Mozambique

Slide 46

Spaza (convenience) shop

Slide 47

And the business value ishellip HIVAIDS 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 ndash 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

waynewaynedunncom Slide 48

ldquoThe project changed the social face of the South African Mining Industryrdquo

Kgosietsile Mogaki

South African Ministry of Minerals and Energy

waynewaynedunncom Slide 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 globally

Through 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 50

And then there is HIVAIDS

RSA ACCOUNTED FOR NEARLY 1 IN 8 OF THE NEW HIV INFECTIONS THAT OCCURRED WORLD WIDE IN 2000

HIV+ PREVALENCE RATE IN WOMEN ATTENDING ANTE-NATAL CLINICS INCREASED FROM 07 IN 1990 TO 248 IN 2001

AVERAGE OF 1700 NEW INFECTIONS PER DAY

LIFE EXPECTANCY WILL DECLINE FROM 65 TO 40 BY 2011

65

40

0

10

20

30

40

50

60

70

2001 2011

Life Expectancy

waynewaynedunncom Slide 51

HIVAIDS Facts (in 2000)

ESTIMATED THAT 12 OF TOTAL RSA POPULATION AND 25 OF MINEWORKERS ARE HIV+

ALREADY 400000 PEOPLE ARE AIDS SICK AND THIS WILL INCREASE TO 14 M BY 2010

YOUNG WOMEN PARTICULARLY VULNERABLE ndash 239 AGED BETWEEN 15 ndash 49 ALREADY INFECTED AND WILL RISE TO 297 BY 2007

AIDS ORPHANS AT PRESENT AMOUNT TO 660000+ AND WILL RISE TO 18M BY 2015

ACCUMULATIVE AIDS DEATHS WILL RISE TO 9M BY 2015

Slide 52

HIVAIDS Impact REDUCED ECONOMIC GROWTH RATE ndash 2010 GDP 20 below a non AIDS

scenario REDUCED POPULATION ndash RSA population 10M smaller than non AIDS scenario SKYROCKETING DEMANDS ON PUBLIC HEALTH SYSTEM - RADICALLY CHANGED PRIVATE SPENDING PATTERNS ndash to healthcare and

funeral costs IMPACT ON SOCIO-ECONOMIC STABILITY (orphans)

HIVAIDS 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 Africa today Nobody can afford to ignore it

Slide 53

HIVAIDS and Gold Mining

$10oz impact if nothing is done (5 of production costs) ~$3oz with maximum

intervention Impact on social and political

stability

Slide 54

HIVAIDS Programming Placer Dome program ndash

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 55

Minesite Program

TRAINING AND EDUCATION

STI amp TB TREATMENT

CONDOM DISTRIBUTION

PEER EDUCATION

VOLUNTARY COUNSELING AND TESTING (VCT)

WELLNESS PROGRAM

MEDICAL REPATRIATION

waynewaynedunncom Slide 56

Minesite Program

waynewaynedunncom Slide 57

Current Community Program

AWARENESS AND EDUCATION PROGRAMS

MOBILE CLINIC

CONDOM amp FEMIDOM DISTRIBUTION

PERIODIC PRESUMPTIVE TREATMENT (PPT)

TREATMENT FOR SEXUALLY TRANSMITTED INFECTIONS ( STI)

waynewaynedunncom Slide 58

COMMUNITY PROGRAM

Community Mobile Clinic

waynewaynedunncom Slide 59

And when HIV prevention doesnrsquot 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 60

Industry Home Based Care

TEBA INFRA-STRUCTURE

TRAINING OF CARE GIVERS

SUPPORT STRUCTURE ndash QUALIFIED STAFF

MONTHLY MEDICATION

WORK WITH OTHER STAKEHOLDERS (EG TRADITIONAL HEALERS)

WORLD BANK DEVELOPMENT INNOVATION AWARD

waynewaynedunncom Slide 61

Home Based Care

Slide 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

waynewaynedunncom Slide 63

Overview of Placer Dome AIDS Programming SOUTH DEEP Sustainable Development Department

bullVoluntary Counseling and testing HIV Negative bullContinue working

On Mine Program Community Program

Modified work program Farm bullAgricultural work Environmental

Medical repatriation

Home Based Care

Benefits Care Positive

HBC EC OPP

Back to work or Re skilled

Wellness Program

waynewaynedunncom Slide 64

But what happens to children and families when the breadwinner canrsquot

work

Slide 65

HIVAIDS and Rural Areas HIVAIDS 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

Slide 66

HIVAIDS 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

waynewaynedunncom

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 CSREthical

Project Award (2004) Numerous other awards Stanford Case Study

waynewaynedunncom Slide 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 69

Planned Program

Care Positive Integrate the Home Based Care

project with the Care process and launch as a fee for service based program to address the social and 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

Care Process

+

Home Based Care

=

Care Positive

waynewaynedunncom Slide 70

Care Positive Summary

waynewaynedunncom

Andhellip 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 $100000 and considerable reputational capital into them Industry went forward with modified HIVAIDS

programming but huge developmental impacts were lost

waynewaynedunncom Slide 72

MDG Impacts of Placer Dome in South Africa

1 Poverty and hunger 2 Some impact on primary education (School

feeding program) 3 Promote gender equality and empower women 4 Reduce child mortality 5 Improve maternal health 6 Combat HIVAIDS malaria and other diseass 7 Ensure environmental sustainability 8 Develop a global partnership for development

(Placer Dome CIDA Civil Society NGOs)

waynewaynedunncom

One thing leads to another

World Bank observed how Placer Domersquos leadership on HIVAIDS 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

waynewaynedunncom

PNG HIVAIDS Scoping mission to

determine what might be done and how Enthusiastic interest from

industry government multi-laterals (WHO UNAIDS World Banketc) ODA (AusAID) CIDA partnered with Place Dome to develop an

HIVAIDS strategy for PNG that integrated industry public sector civil society and international community

waynewaynedunncom

PNG Outcomes (or outputs ndash Irsquom never sure) Partnership with Mining

Industry Civil Society WHO UNAIDS UNDP World Bank PNG AIDS AusAID Oil Palm Industry etc National workshop on

HIVAIDS and publicprivate partnerships SouthSouth Collaboration

Industry government civil society international community study trip to South Africa

waynewaynedunncom

waynewaynedunncom

PNG AIDS mission to South Africa

waynewaynedunncom Slide 78

MDG Impacts of PNG HIVAIDS work

1 Poverty and hunger (nutritional supplements) 2 Some impact on primary education (peripheral) 3 Promote gender equality and empower women 4 Reduce child mortality 5 Improve maternal health 6 Combat HIVAIDS malaria and other diseass 7 Ensure environmental sustainability 8 Develop a global partnership for development

(Placer Dome CIDA Civil Society NGOs)

waynewaynedunncom

Eldorado Gold in Turkey

Major gold find in WestCentral Turkey No successful

mining project launched in decades Eurogold project

built launched and halted by community action in late 1990s ndash still mothballed

UsakKislidag Minesite

Eurogold site

waynewaynedunncom

Eldorado Gold in Turkey

Isolated rural area Nearly half of nearby

communities opposed to mine development Agriculture primary

economic activity in rural communities ndash smallmicro family farms

waynewaynedunncom

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

waynewaynedunncom

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 $075 to $1325 Opened second mine in Turkey

bull Able to deal with controversial watershed issues after relationship success in Usak

waynewaynedunncom Slide 83

MDG Impacts of Eldorado Gold

1 Poverty and hunger (minimal) 2 Some impact on primary education (peripheral) 3 Promote gender equality and empower women 4 Reduce child mortality 5 Improve maternal health 6 Combat HIVAIDS malaria and other diseass 7 Ensure environmental sustainability 8 Develop a global partnership for development

(Placer Dome CIDA Civil Society NGOs)

waynewaynedunncom

Underwater Logging in Ghana

waynewaynedunncom

Private Sector and International Development

Private sector especially resource extraction has a very mixed record bull Some horrendous disasters (Nigeria Warao Peoples in

Venezuela etc) bull Some great successes (Placer Dome Care project

mining and HIVAIDS 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

waynewaynedunncom

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

interestsobjectives overlap

waynewaynedunncom

SDCSR Implementation Challenges

more than a warm fuzzy issue Spending isnrsquot the answer

Plan

Framework

System

Results

Solving social problems Objectives

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Beyond Beads and Trinkets ndash BC Mining Review

A lsquohow torsquo article on mining and CSR

Wayne Dunn

BP Venezuela Indigenous Relations ndash Meeting the Challenge Responsibly and Sustainably

Situational assessment and strategic plan for BP Venezuela Authorized for release by BP

Wayne Dunn

Cameco Community Relations Report

Situational assessment and management strategy Authorized for release by Cameco

Wayne Dunn

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author Beyond Beads lsquon Trinkets A systematic approach to managing community relations

A conference paper describing a systematic approach to community relations management helping companies to methodically develop mutually beneficial relationships with local communities and interests (this is one of the earliest papers on this subject ndash written in 1998)

Wayne Dunn

The costs of conflict with local communities in the extractive industry

Analysis of the cost of community conflicts in the Extractive Sector

Rachel Davis and Daniel M Franks

Creating Shared Value

Harvard Business Review interview with Michael Porter

Video

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Social License Its all about value

Discussion on Social License and shareholder Value

Wayne Dunn

Its about Development Commentary on the CIDAMining Company issue

Wayne Dunn

Integrating corporate strategy and social responsibilitymdashmarket returns from stakeholder engagement

Discussion and analysis on market returns on stakeholder engagement

Witold J Henisz Sinziana Dorobantu and Lite J Narty

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

McGill Reporter ndash Four Burning Questions Wayne Dunn on CSR

Discussion on CSR Wayne Dunn

Miningrsquos contribution to sustainable development ndashan overview

Discussion paper prepared by the International Council on Mining and Metals

Millennium Development Goals

United Nations

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Mining and Agriculture Development

A short lsquohow torsquo guide for mining projects to engage with the local agriculture sector

Al Hingston

PDSA Social Value Brochure

Brochure on social value created by Placer Dome South Africa

Placer Dome

The Value of Social License

Opinion piece published in Northern Miner

Wayne Dunn

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Golden Opportunity When a Canadian multinational laid off hundreds of gold miners in South Africa it went many extra miles to help them get back on their feet

Stanford Business School Case Study on Placer Dome in South Africa

Wayne Dunn

The Changing Resource Development Paradigm Maximizing Sustainable Local Benefits from Resource Development

Strategic thought piece prepared for the government of British Columbia Canada

Wayne Dunn

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

The Disappearing Barriers Between Business And Non-profits Are Driving Innovation

Discussion paper

Katherine Pikus

When Condoms are not enough

World Bank staff magazine article on Placer Dome and South African mining industryrsquos work with HIVAIDS

Craig Andrews

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

MINING AND LOCAL ECONOMIC DEVELOPMENT IN PAPUA NEW GUINEA Preliminary Research on a Potential Pilot Project in Porgera and Lihir

Strategic research and action plan on mining and local economic development in Papua New Guinea prepared for the World Bank

Wayne Dunn

waynewaynedunncom

What we covered

We 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) Publicprivatecivil society collaboration ndash case study

and discussion (CIDA and Mining Companies) Open discussion on topics of interest (time permitting)

waynewaynedunncom

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 howwhy 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

waynewaynedunncom

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 howwhy 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

waynewaynedunncom

Alignment around Shared Value For shareholders For Communities For People For Governments

Private Sector Contributions To International Development

Remember

  • Private Sector Contributions To International Development
  • Session Objectives
  • Map of the morning How we will try to meet the objectives
  • Slide Number 4
  • What is ODA and FDI
  • What is ODA and FDI
  • Why discuss Private Sector Contribution anyway
  • FDIBusiness Outcomes
  • Intention and Strategy Make a Difference
  • Why does the private sector care
  • Community Consultation and Value
  • Itrsquos Real Money
  • CSR is a Value Strategy
  • Social License Failures cost
  • Why is CSR happening
  • The Mining World Has Changed
  • CSR is a complicated space
  • CSR amp Social License
  • Role of business is changing (click image to play video)
  • Case Studies (of successes)
  • Slide Number 21
  • Uranium Industry in Northern Saskatchewan
  • Challenging area
  • Challenging Times
  • Cameco in 1998
  • Cameco in Northern Saskatchewan (2010)
  • So how did Cameco and the industry do it
  • Placer Dome South Africa
  • Slide Number 29
  • Background
  • Background (cont)
  • Families amp Communities must benefit from mining
  • The Care Project
  • Implications
  • Slide Number 35
  • The Initial 4-Step Plan
  • Reality was different than we expected
  • Reality was different than expected
  • Meeting the challenges
  • TheProcess
  • Some results
  • Chicken raising business
  • Furniture making
  • Unique training programs
  • Rice farming in Mozambique
  • Spaza (convenience) shop
  • And the business value ishellip
  • Slide Number 48
  • What was in it for Placer Dome
  • And then there is HIVAIDS
  • HIVAIDS Facts (in 2000)
  • HIVAIDS Impact
  • HIVAIDS and Gold Mining
  • HIVAIDS Programming
  • Minesite Program
  • Minesite Program
  • Current Community Program
  • Community Mobile Clinic
  • And when HIV prevention doesnrsquot work
  • Industry Home Based Care
  • Home Based Care
  • INDUSTRY HOME BASED CARE RESULTS(Year One)
  • Overview of Placer Dome AIDS Programming
  • Slide Number 64
  • HIVAIDS and Rural Areas
  • HIVAIDS and Rural Areas
  • Reputational Results for Placer Dome
  • Where to next
  • Planned Program
  • Care Positive Summary
  • Andhellip
  • MDG Impacts of Placer Dome in South Africa
  • One thing leads to another
  • PNG HIVAIDS
  • PNG Outcomes (or outputs ndash Irsquom never sure)
  • Slide Number 76
  • PNG AIDS mission to South Africa
  • MDG Impacts of PNG HIVAIDS work
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • MDG Impacts of Eldorado Gold
  • Underwater Logging in Ghana
  • Private Sector and International Development
  • Group Exercise
  • Slide Number 87
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • What we covered
  • Session Objectives
  • Session Objectives
  • Remember
Page 32: Private Sector Contributions To International Development – McGill Executive Education Program Lecture

waynewaynedunncom Slide 32

Families amp Communities must benefit from mining

Slide 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 HIVAIDS 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$36 million) budget was established

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

waynewaynedunncom Slide 35

The Mine

2560 Retrenchees bullMozambique bullLesotho bullSouth Africa bullSwaziland bullBotswana

How to successfully provide socio-economic support across remote rural regions of five countries

waynewaynedunncom Slide 36

The Initial 4-Step Plan 1 Consultations with retrenchees in their villages 2 Recruit (from amongst the retrenchees) a group

of 25-30 fieldworkers who would provide frontline support to the retrenchees and their families

3 Locate and register the retrenchees 4 Provide them with training and support to enable

them to become economically active

All of the above to be done in partnership with MDA TEBA and other partners

waynewaynedunncom Slide 37

Reality was different than we expected Retrenchees and their

Unions were still angry over the contested retrenchment Retrencheesrsquo homes were

difficult to locate and registration was often problematic

Consultations with retrenchees

Walking to a remote retrenchee homestead in Lesotho

Slide 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 HIVAIDS Fieldworker training programs Retrenchee education levels Centralized delivery didnrsquot work Project was under-financed We couldnrsquot do it in two years Etc

Slide 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

waynewaynedunncom Slide 40

The Process

Business Operation1 Ongoing availability of Technical Assistance and Business Counselling2 Ongoing faclitiation of skills training needs (ie business agriculture vocational etc)

Decision on Economic Option

Employment StreamEnterprise Stream

Evaluation of Micro Finance Application

Retrenchee is Re-Integrated and Economically Active

PersonalEconomic Plan

Prepared ampAssessed

PersonalEmployment Plan

Prepared

Business amp Financing Plan

Prepared

Employment Planning amp Preparation1 Identification of Employment Options2 Skills Training (VocationalAgricultural etc)3 Employment Counseling Placement (Job searchResume etc)

Business Planning amp Preparation1 Business Orientation a) Introduction to Business b) SkillsProduct Training2 Develop Draft Business Plan (to be reviewed with Counselor) (plan will contain market assessment financial operational and skills upgrading plan)3 Preparation of Micro-Finance Application

Orientation and Awareness Phase1 Registration amp Homestead Visits2 District Counselling Sessions3 Open DaysCareer Fairs4 Financial Lifes Skills Training5 Feedback and Choices Session

Ongoing Processes

Follow-up sessions activities to monitor effectiveness of interventions

Communication and consultation with stakeholders Continuous improvement process (review feedback enhance programs procedures processes)

13-step process Delivered 18 times Across Five countries

Slide 41

Some results 92 of the retrenchees were located

and registered 57 of those (1250) are economically

active 65 (1556) 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 42

Chicken raising business

Slide 43

Furniture making

waynewaynedunncom Slide 44

Unique training programs

waynewaynedunncom Slide 45

Rice farming in Mozambique

Slide 46

Spaza (convenience) shop

Slide 47

And the business value ishellip HIVAIDS 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 ndash 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

waynewaynedunncom Slide 48

ldquoThe project changed the social face of the South African Mining Industryrdquo

Kgosietsile Mogaki

South African Ministry of Minerals and Energy

waynewaynedunncom Slide 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 globally

Through 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 50

And then there is HIVAIDS

RSA ACCOUNTED FOR NEARLY 1 IN 8 OF THE NEW HIV INFECTIONS THAT OCCURRED WORLD WIDE IN 2000

HIV+ PREVALENCE RATE IN WOMEN ATTENDING ANTE-NATAL CLINICS INCREASED FROM 07 IN 1990 TO 248 IN 2001

AVERAGE OF 1700 NEW INFECTIONS PER DAY

LIFE EXPECTANCY WILL DECLINE FROM 65 TO 40 BY 2011

65

40

0

10

20

30

40

50

60

70

2001 2011

Life Expectancy

waynewaynedunncom Slide 51

HIVAIDS Facts (in 2000)

ESTIMATED THAT 12 OF TOTAL RSA POPULATION AND 25 OF MINEWORKERS ARE HIV+

ALREADY 400000 PEOPLE ARE AIDS SICK AND THIS WILL INCREASE TO 14 M BY 2010

YOUNG WOMEN PARTICULARLY VULNERABLE ndash 239 AGED BETWEEN 15 ndash 49 ALREADY INFECTED AND WILL RISE TO 297 BY 2007

AIDS ORPHANS AT PRESENT AMOUNT TO 660000+ AND WILL RISE TO 18M BY 2015

ACCUMULATIVE AIDS DEATHS WILL RISE TO 9M BY 2015

Slide 52

HIVAIDS Impact REDUCED ECONOMIC GROWTH RATE ndash 2010 GDP 20 below a non AIDS

scenario REDUCED POPULATION ndash RSA population 10M smaller than non AIDS scenario SKYROCKETING DEMANDS ON PUBLIC HEALTH SYSTEM - RADICALLY CHANGED PRIVATE SPENDING PATTERNS ndash to healthcare and

funeral costs IMPACT ON SOCIO-ECONOMIC STABILITY (orphans)

HIVAIDS 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 Africa today Nobody can afford to ignore it

Slide 53

HIVAIDS and Gold Mining

$10oz impact if nothing is done (5 of production costs) ~$3oz with maximum

intervention Impact on social and political

stability

Slide 54

HIVAIDS Programming Placer Dome program ndash

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 55

Minesite Program

TRAINING AND EDUCATION

STI amp TB TREATMENT

CONDOM DISTRIBUTION

PEER EDUCATION

VOLUNTARY COUNSELING AND TESTING (VCT)

WELLNESS PROGRAM

MEDICAL REPATRIATION

waynewaynedunncom Slide 56

Minesite Program

waynewaynedunncom Slide 57

Current Community Program

AWARENESS AND EDUCATION PROGRAMS

MOBILE CLINIC

CONDOM amp FEMIDOM DISTRIBUTION

PERIODIC PRESUMPTIVE TREATMENT (PPT)

TREATMENT FOR SEXUALLY TRANSMITTED INFECTIONS ( STI)

waynewaynedunncom Slide 58

COMMUNITY PROGRAM

Community Mobile Clinic

waynewaynedunncom Slide 59

And when HIV prevention doesnrsquot 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 60

Industry Home Based Care

TEBA INFRA-STRUCTURE

TRAINING OF CARE GIVERS

SUPPORT STRUCTURE ndash QUALIFIED STAFF

MONTHLY MEDICATION

WORK WITH OTHER STAKEHOLDERS (EG TRADITIONAL HEALERS)

WORLD BANK DEVELOPMENT INNOVATION AWARD

waynewaynedunncom Slide 61

Home Based Care

Slide 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

waynewaynedunncom Slide 63

Overview of Placer Dome AIDS Programming SOUTH DEEP Sustainable Development Department

bullVoluntary Counseling and testing HIV Negative bullContinue working

On Mine Program Community Program

Modified work program Farm bullAgricultural work Environmental

Medical repatriation

Home Based Care

Benefits Care Positive

HBC EC OPP

Back to work or Re skilled

Wellness Program

waynewaynedunncom Slide 64

But what happens to children and families when the breadwinner canrsquot

work

Slide 65

HIVAIDS and Rural Areas HIVAIDS 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

Slide 66

HIVAIDS 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

waynewaynedunncom

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 CSREthical

Project Award (2004) Numerous other awards Stanford Case Study

waynewaynedunncom Slide 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 69

Planned Program

Care Positive Integrate the Home Based Care

project with the Care process and launch as a fee for service based program to address the social and 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

Care Process

+

Home Based Care

=

Care Positive

waynewaynedunncom Slide 70

Care Positive Summary

waynewaynedunncom

Andhellip 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 $100000 and considerable reputational capital into them Industry went forward with modified HIVAIDS

programming but huge developmental impacts were lost

waynewaynedunncom Slide 72

MDG Impacts of Placer Dome in South Africa

1 Poverty and hunger 2 Some impact on primary education (School

feeding program) 3 Promote gender equality and empower women 4 Reduce child mortality 5 Improve maternal health 6 Combat HIVAIDS malaria and other diseass 7 Ensure environmental sustainability 8 Develop a global partnership for development

(Placer Dome CIDA Civil Society NGOs)

waynewaynedunncom

One thing leads to another

World Bank observed how Placer Domersquos leadership on HIVAIDS 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

waynewaynedunncom

PNG HIVAIDS Scoping mission to

determine what might be done and how Enthusiastic interest from

industry government multi-laterals (WHO UNAIDS World Banketc) ODA (AusAID) CIDA partnered with Place Dome to develop an

HIVAIDS strategy for PNG that integrated industry public sector civil society and international community

waynewaynedunncom

PNG Outcomes (or outputs ndash Irsquom never sure) Partnership with Mining

Industry Civil Society WHO UNAIDS UNDP World Bank PNG AIDS AusAID Oil Palm Industry etc National workshop on

HIVAIDS and publicprivate partnerships SouthSouth Collaboration

Industry government civil society international community study trip to South Africa

waynewaynedunncom

waynewaynedunncom

PNG AIDS mission to South Africa

waynewaynedunncom Slide 78

MDG Impacts of PNG HIVAIDS work

1 Poverty and hunger (nutritional supplements) 2 Some impact on primary education (peripheral) 3 Promote gender equality and empower women 4 Reduce child mortality 5 Improve maternal health 6 Combat HIVAIDS malaria and other diseass 7 Ensure environmental sustainability 8 Develop a global partnership for development

(Placer Dome CIDA Civil Society NGOs)

waynewaynedunncom

Eldorado Gold in Turkey

Major gold find in WestCentral Turkey No successful

mining project launched in decades Eurogold project

built launched and halted by community action in late 1990s ndash still mothballed

UsakKislidag Minesite

Eurogold site

waynewaynedunncom

Eldorado Gold in Turkey

Isolated rural area Nearly half of nearby

communities opposed to mine development Agriculture primary

economic activity in rural communities ndash smallmicro family farms

waynewaynedunncom

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

waynewaynedunncom

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 $075 to $1325 Opened second mine in Turkey

bull Able to deal with controversial watershed issues after relationship success in Usak

waynewaynedunncom Slide 83

MDG Impacts of Eldorado Gold

1 Poverty and hunger (minimal) 2 Some impact on primary education (peripheral) 3 Promote gender equality and empower women 4 Reduce child mortality 5 Improve maternal health 6 Combat HIVAIDS malaria and other diseass 7 Ensure environmental sustainability 8 Develop a global partnership for development

(Placer Dome CIDA Civil Society NGOs)

waynewaynedunncom

Underwater Logging in Ghana

waynewaynedunncom

Private Sector and International Development

Private sector especially resource extraction has a very mixed record bull Some horrendous disasters (Nigeria Warao Peoples in

Venezuela etc) bull Some great successes (Placer Dome Care project

mining and HIVAIDS 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

waynewaynedunncom

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

interestsobjectives overlap

waynewaynedunncom

SDCSR Implementation Challenges

more than a warm fuzzy issue Spending isnrsquot the answer

Plan

Framework

System

Results

Solving social problems Objectives

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Beyond Beads and Trinkets ndash BC Mining Review

A lsquohow torsquo article on mining and CSR

Wayne Dunn

BP Venezuela Indigenous Relations ndash Meeting the Challenge Responsibly and Sustainably

Situational assessment and strategic plan for BP Venezuela Authorized for release by BP

Wayne Dunn

Cameco Community Relations Report

Situational assessment and management strategy Authorized for release by Cameco

Wayne Dunn

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author Beyond Beads lsquon Trinkets A systematic approach to managing community relations

A conference paper describing a systematic approach to community relations management helping companies to methodically develop mutually beneficial relationships with local communities and interests (this is one of the earliest papers on this subject ndash written in 1998)

Wayne Dunn

The costs of conflict with local communities in the extractive industry

Analysis of the cost of community conflicts in the Extractive Sector

Rachel Davis and Daniel M Franks

Creating Shared Value

Harvard Business Review interview with Michael Porter

Video

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Social License Its all about value

Discussion on Social License and shareholder Value

Wayne Dunn

Its about Development Commentary on the CIDAMining Company issue

Wayne Dunn

Integrating corporate strategy and social responsibilitymdashmarket returns from stakeholder engagement

Discussion and analysis on market returns on stakeholder engagement

Witold J Henisz Sinziana Dorobantu and Lite J Narty

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

McGill Reporter ndash Four Burning Questions Wayne Dunn on CSR

Discussion on CSR Wayne Dunn

Miningrsquos contribution to sustainable development ndashan overview

Discussion paper prepared by the International Council on Mining and Metals

Millennium Development Goals

United Nations

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Mining and Agriculture Development

A short lsquohow torsquo guide for mining projects to engage with the local agriculture sector

Al Hingston

PDSA Social Value Brochure

Brochure on social value created by Placer Dome South Africa

Placer Dome

The Value of Social License

Opinion piece published in Northern Miner

Wayne Dunn

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Golden Opportunity When a Canadian multinational laid off hundreds of gold miners in South Africa it went many extra miles to help them get back on their feet

Stanford Business School Case Study on Placer Dome in South Africa

Wayne Dunn

The Changing Resource Development Paradigm Maximizing Sustainable Local Benefits from Resource Development

Strategic thought piece prepared for the government of British Columbia Canada

Wayne Dunn

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

The Disappearing Barriers Between Business And Non-profits Are Driving Innovation

Discussion paper

Katherine Pikus

When Condoms are not enough

World Bank staff magazine article on Placer Dome and South African mining industryrsquos work with HIVAIDS

Craig Andrews

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

MINING AND LOCAL ECONOMIC DEVELOPMENT IN PAPUA NEW GUINEA Preliminary Research on a Potential Pilot Project in Porgera and Lihir

Strategic research and action plan on mining and local economic development in Papua New Guinea prepared for the World Bank

Wayne Dunn

waynewaynedunncom

What we covered

We 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) Publicprivatecivil society collaboration ndash case study

and discussion (CIDA and Mining Companies) Open discussion on topics of interest (time permitting)

waynewaynedunncom

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 howwhy 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

waynewaynedunncom

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 howwhy 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

waynewaynedunncom

Alignment around Shared Value For shareholders For Communities For People For Governments

Private Sector Contributions To International Development

Remember

  • Private Sector Contributions To International Development
  • Session Objectives
  • Map of the morning How we will try to meet the objectives
  • Slide Number 4
  • What is ODA and FDI
  • What is ODA and FDI
  • Why discuss Private Sector Contribution anyway
  • FDIBusiness Outcomes
  • Intention and Strategy Make a Difference
  • Why does the private sector care
  • Community Consultation and Value
  • Itrsquos Real Money
  • CSR is a Value Strategy
  • Social License Failures cost
  • Why is CSR happening
  • The Mining World Has Changed
  • CSR is a complicated space
  • CSR amp Social License
  • Role of business is changing (click image to play video)
  • Case Studies (of successes)
  • Slide Number 21
  • Uranium Industry in Northern Saskatchewan
  • Challenging area
  • Challenging Times
  • Cameco in 1998
  • Cameco in Northern Saskatchewan (2010)
  • So how did Cameco and the industry do it
  • Placer Dome South Africa
  • Slide Number 29
  • Background
  • Background (cont)
  • Families amp Communities must benefit from mining
  • The Care Project
  • Implications
  • Slide Number 35
  • The Initial 4-Step Plan
  • Reality was different than we expected
  • Reality was different than expected
  • Meeting the challenges
  • TheProcess
  • Some results
  • Chicken raising business
  • Furniture making
  • Unique training programs
  • Rice farming in Mozambique
  • Spaza (convenience) shop
  • And the business value ishellip
  • Slide Number 48
  • What was in it for Placer Dome
  • And then there is HIVAIDS
  • HIVAIDS Facts (in 2000)
  • HIVAIDS Impact
  • HIVAIDS and Gold Mining
  • HIVAIDS Programming
  • Minesite Program
  • Minesite Program
  • Current Community Program
  • Community Mobile Clinic
  • And when HIV prevention doesnrsquot work
  • Industry Home Based Care
  • Home Based Care
  • INDUSTRY HOME BASED CARE RESULTS(Year One)
  • Overview of Placer Dome AIDS Programming
  • Slide Number 64
  • HIVAIDS and Rural Areas
  • HIVAIDS and Rural Areas
  • Reputational Results for Placer Dome
  • Where to next
  • Planned Program
  • Care Positive Summary
  • Andhellip
  • MDG Impacts of Placer Dome in South Africa
  • One thing leads to another
  • PNG HIVAIDS
  • PNG Outcomes (or outputs ndash Irsquom never sure)
  • Slide Number 76
  • PNG AIDS mission to South Africa
  • MDG Impacts of PNG HIVAIDS work
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • MDG Impacts of Eldorado Gold
  • Underwater Logging in Ghana
  • Private Sector and International Development
  • Group Exercise
  • Slide Number 87
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • What we covered
  • Session Objectives
  • Session Objectives
  • Remember
Page 33: Private Sector Contributions To International Development – McGill Executive Education Program Lecture

Slide 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 HIVAIDS 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$36 million) budget was established

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

waynewaynedunncom Slide 35

The Mine

2560 Retrenchees bullMozambique bullLesotho bullSouth Africa bullSwaziland bullBotswana

How to successfully provide socio-economic support across remote rural regions of five countries

waynewaynedunncom Slide 36

The Initial 4-Step Plan 1 Consultations with retrenchees in their villages 2 Recruit (from amongst the retrenchees) a group

of 25-30 fieldworkers who would provide frontline support to the retrenchees and their families

3 Locate and register the retrenchees 4 Provide them with training and support to enable

them to become economically active

All of the above to be done in partnership with MDA TEBA and other partners

waynewaynedunncom Slide 37

Reality was different than we expected Retrenchees and their

Unions were still angry over the contested retrenchment Retrencheesrsquo homes were

difficult to locate and registration was often problematic

Consultations with retrenchees

Walking to a remote retrenchee homestead in Lesotho

Slide 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 HIVAIDS Fieldworker training programs Retrenchee education levels Centralized delivery didnrsquot work Project was under-financed We couldnrsquot do it in two years Etc

Slide 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

waynewaynedunncom Slide 40

The Process

Business Operation1 Ongoing availability of Technical Assistance and Business Counselling2 Ongoing faclitiation of skills training needs (ie business agriculture vocational etc)

Decision on Economic Option

Employment StreamEnterprise Stream

Evaluation of Micro Finance Application

Retrenchee is Re-Integrated and Economically Active

PersonalEconomic Plan

Prepared ampAssessed

PersonalEmployment Plan

Prepared

Business amp Financing Plan

Prepared

Employment Planning amp Preparation1 Identification of Employment Options2 Skills Training (VocationalAgricultural etc)3 Employment Counseling Placement (Job searchResume etc)

Business Planning amp Preparation1 Business Orientation a) Introduction to Business b) SkillsProduct Training2 Develop Draft Business Plan (to be reviewed with Counselor) (plan will contain market assessment financial operational and skills upgrading plan)3 Preparation of Micro-Finance Application

Orientation and Awareness Phase1 Registration amp Homestead Visits2 District Counselling Sessions3 Open DaysCareer Fairs4 Financial Lifes Skills Training5 Feedback and Choices Session

Ongoing Processes

Follow-up sessions activities to monitor effectiveness of interventions

Communication and consultation with stakeholders Continuous improvement process (review feedback enhance programs procedures processes)

13-step process Delivered 18 times Across Five countries

Slide 41

Some results 92 of the retrenchees were located

and registered 57 of those (1250) are economically

active 65 (1556) 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 42

Chicken raising business

Slide 43

Furniture making

waynewaynedunncom Slide 44

Unique training programs

waynewaynedunncom Slide 45

Rice farming in Mozambique

Slide 46

Spaza (convenience) shop

Slide 47

And the business value ishellip HIVAIDS 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 ndash 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

waynewaynedunncom Slide 48

ldquoThe project changed the social face of the South African Mining Industryrdquo

Kgosietsile Mogaki

South African Ministry of Minerals and Energy

waynewaynedunncom Slide 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 globally

Through 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 50

And then there is HIVAIDS

RSA ACCOUNTED FOR NEARLY 1 IN 8 OF THE NEW HIV INFECTIONS THAT OCCURRED WORLD WIDE IN 2000

HIV+ PREVALENCE RATE IN WOMEN ATTENDING ANTE-NATAL CLINICS INCREASED FROM 07 IN 1990 TO 248 IN 2001

AVERAGE OF 1700 NEW INFECTIONS PER DAY

LIFE EXPECTANCY WILL DECLINE FROM 65 TO 40 BY 2011

65

40

0

10

20

30

40

50

60

70

2001 2011

Life Expectancy

waynewaynedunncom Slide 51

HIVAIDS Facts (in 2000)

ESTIMATED THAT 12 OF TOTAL RSA POPULATION AND 25 OF MINEWORKERS ARE HIV+

ALREADY 400000 PEOPLE ARE AIDS SICK AND THIS WILL INCREASE TO 14 M BY 2010

YOUNG WOMEN PARTICULARLY VULNERABLE ndash 239 AGED BETWEEN 15 ndash 49 ALREADY INFECTED AND WILL RISE TO 297 BY 2007

AIDS ORPHANS AT PRESENT AMOUNT TO 660000+ AND WILL RISE TO 18M BY 2015

ACCUMULATIVE AIDS DEATHS WILL RISE TO 9M BY 2015

Slide 52

HIVAIDS Impact REDUCED ECONOMIC GROWTH RATE ndash 2010 GDP 20 below a non AIDS

scenario REDUCED POPULATION ndash RSA population 10M smaller than non AIDS scenario SKYROCKETING DEMANDS ON PUBLIC HEALTH SYSTEM - RADICALLY CHANGED PRIVATE SPENDING PATTERNS ndash to healthcare and

funeral costs IMPACT ON SOCIO-ECONOMIC STABILITY (orphans)

HIVAIDS 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 Africa today Nobody can afford to ignore it

Slide 53

HIVAIDS and Gold Mining

$10oz impact if nothing is done (5 of production costs) ~$3oz with maximum

intervention Impact on social and political

stability

Slide 54

HIVAIDS Programming Placer Dome program ndash

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 55

Minesite Program

TRAINING AND EDUCATION

STI amp TB TREATMENT

CONDOM DISTRIBUTION

PEER EDUCATION

VOLUNTARY COUNSELING AND TESTING (VCT)

WELLNESS PROGRAM

MEDICAL REPATRIATION

waynewaynedunncom Slide 56

Minesite Program

waynewaynedunncom Slide 57

Current Community Program

AWARENESS AND EDUCATION PROGRAMS

MOBILE CLINIC

CONDOM amp FEMIDOM DISTRIBUTION

PERIODIC PRESUMPTIVE TREATMENT (PPT)

TREATMENT FOR SEXUALLY TRANSMITTED INFECTIONS ( STI)

waynewaynedunncom Slide 58

COMMUNITY PROGRAM

Community Mobile Clinic

waynewaynedunncom Slide 59

And when HIV prevention doesnrsquot 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 60

Industry Home Based Care

TEBA INFRA-STRUCTURE

TRAINING OF CARE GIVERS

SUPPORT STRUCTURE ndash QUALIFIED STAFF

MONTHLY MEDICATION

WORK WITH OTHER STAKEHOLDERS (EG TRADITIONAL HEALERS)

WORLD BANK DEVELOPMENT INNOVATION AWARD

waynewaynedunncom Slide 61

Home Based Care

Slide 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

waynewaynedunncom Slide 63

Overview of Placer Dome AIDS Programming SOUTH DEEP Sustainable Development Department

bullVoluntary Counseling and testing HIV Negative bullContinue working

On Mine Program Community Program

Modified work program Farm bullAgricultural work Environmental

Medical repatriation

Home Based Care

Benefits Care Positive

HBC EC OPP

Back to work or Re skilled

Wellness Program

waynewaynedunncom Slide 64

But what happens to children and families when the breadwinner canrsquot

work

Slide 65

HIVAIDS and Rural Areas HIVAIDS 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

Slide 66

HIVAIDS 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

waynewaynedunncom

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 CSREthical

Project Award (2004) Numerous other awards Stanford Case Study

waynewaynedunncom Slide 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 69

Planned Program

Care Positive Integrate the Home Based Care

project with the Care process and launch as a fee for service based program to address the social and 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

Care Process

+

Home Based Care

=

Care Positive

waynewaynedunncom Slide 70

Care Positive Summary

waynewaynedunncom

Andhellip 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 $100000 and considerable reputational capital into them Industry went forward with modified HIVAIDS

programming but huge developmental impacts were lost

waynewaynedunncom Slide 72

MDG Impacts of Placer Dome in South Africa

1 Poverty and hunger 2 Some impact on primary education (School

feeding program) 3 Promote gender equality and empower women 4 Reduce child mortality 5 Improve maternal health 6 Combat HIVAIDS malaria and other diseass 7 Ensure environmental sustainability 8 Develop a global partnership for development

(Placer Dome CIDA Civil Society NGOs)

waynewaynedunncom

One thing leads to another

World Bank observed how Placer Domersquos leadership on HIVAIDS 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

waynewaynedunncom

PNG HIVAIDS Scoping mission to

determine what might be done and how Enthusiastic interest from

industry government multi-laterals (WHO UNAIDS World Banketc) ODA (AusAID) CIDA partnered with Place Dome to develop an

HIVAIDS strategy for PNG that integrated industry public sector civil society and international community

waynewaynedunncom

PNG Outcomes (or outputs ndash Irsquom never sure) Partnership with Mining

Industry Civil Society WHO UNAIDS UNDP World Bank PNG AIDS AusAID Oil Palm Industry etc National workshop on

HIVAIDS and publicprivate partnerships SouthSouth Collaboration

Industry government civil society international community study trip to South Africa

waynewaynedunncom

waynewaynedunncom

PNG AIDS mission to South Africa

waynewaynedunncom Slide 78

MDG Impacts of PNG HIVAIDS work

1 Poverty and hunger (nutritional supplements) 2 Some impact on primary education (peripheral) 3 Promote gender equality and empower women 4 Reduce child mortality 5 Improve maternal health 6 Combat HIVAIDS malaria and other diseass 7 Ensure environmental sustainability 8 Develop a global partnership for development

(Placer Dome CIDA Civil Society NGOs)

waynewaynedunncom

Eldorado Gold in Turkey

Major gold find in WestCentral Turkey No successful

mining project launched in decades Eurogold project

built launched and halted by community action in late 1990s ndash still mothballed

UsakKislidag Minesite

Eurogold site

waynewaynedunncom

Eldorado Gold in Turkey

Isolated rural area Nearly half of nearby

communities opposed to mine development Agriculture primary

economic activity in rural communities ndash smallmicro family farms

waynewaynedunncom

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

waynewaynedunncom

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 $075 to $1325 Opened second mine in Turkey

bull Able to deal with controversial watershed issues after relationship success in Usak

waynewaynedunncom Slide 83

MDG Impacts of Eldorado Gold

1 Poverty and hunger (minimal) 2 Some impact on primary education (peripheral) 3 Promote gender equality and empower women 4 Reduce child mortality 5 Improve maternal health 6 Combat HIVAIDS malaria and other diseass 7 Ensure environmental sustainability 8 Develop a global partnership for development

(Placer Dome CIDA Civil Society NGOs)

waynewaynedunncom

Underwater Logging in Ghana

waynewaynedunncom

Private Sector and International Development

Private sector especially resource extraction has a very mixed record bull Some horrendous disasters (Nigeria Warao Peoples in

Venezuela etc) bull Some great successes (Placer Dome Care project

mining and HIVAIDS 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

waynewaynedunncom

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

interestsobjectives overlap

waynewaynedunncom

SDCSR Implementation Challenges

more than a warm fuzzy issue Spending isnrsquot the answer

Plan

Framework

System

Results

Solving social problems Objectives

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Beyond Beads and Trinkets ndash BC Mining Review

A lsquohow torsquo article on mining and CSR

Wayne Dunn

BP Venezuela Indigenous Relations ndash Meeting the Challenge Responsibly and Sustainably

Situational assessment and strategic plan for BP Venezuela Authorized for release by BP

Wayne Dunn

Cameco Community Relations Report

Situational assessment and management strategy Authorized for release by Cameco

Wayne Dunn

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author Beyond Beads lsquon Trinkets A systematic approach to managing community relations

A conference paper describing a systematic approach to community relations management helping companies to methodically develop mutually beneficial relationships with local communities and interests (this is one of the earliest papers on this subject ndash written in 1998)

Wayne Dunn

The costs of conflict with local communities in the extractive industry

Analysis of the cost of community conflicts in the Extractive Sector

Rachel Davis and Daniel M Franks

Creating Shared Value

Harvard Business Review interview with Michael Porter

Video

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Social License Its all about value

Discussion on Social License and shareholder Value

Wayne Dunn

Its about Development Commentary on the CIDAMining Company issue

Wayne Dunn

Integrating corporate strategy and social responsibilitymdashmarket returns from stakeholder engagement

Discussion and analysis on market returns on stakeholder engagement

Witold J Henisz Sinziana Dorobantu and Lite J Narty

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

McGill Reporter ndash Four Burning Questions Wayne Dunn on CSR

Discussion on CSR Wayne Dunn

Miningrsquos contribution to sustainable development ndashan overview

Discussion paper prepared by the International Council on Mining and Metals

Millennium Development Goals

United Nations

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Mining and Agriculture Development

A short lsquohow torsquo guide for mining projects to engage with the local agriculture sector

Al Hingston

PDSA Social Value Brochure

Brochure on social value created by Placer Dome South Africa

Placer Dome

The Value of Social License

Opinion piece published in Northern Miner

Wayne Dunn

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Golden Opportunity When a Canadian multinational laid off hundreds of gold miners in South Africa it went many extra miles to help them get back on their feet

Stanford Business School Case Study on Placer Dome in South Africa

Wayne Dunn

The Changing Resource Development Paradigm Maximizing Sustainable Local Benefits from Resource Development

Strategic thought piece prepared for the government of British Columbia Canada

Wayne Dunn

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

The Disappearing Barriers Between Business And Non-profits Are Driving Innovation

Discussion paper

Katherine Pikus

When Condoms are not enough

World Bank staff magazine article on Placer Dome and South African mining industryrsquos work with HIVAIDS

Craig Andrews

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

MINING AND LOCAL ECONOMIC DEVELOPMENT IN PAPUA NEW GUINEA Preliminary Research on a Potential Pilot Project in Porgera and Lihir

Strategic research and action plan on mining and local economic development in Papua New Guinea prepared for the World Bank

Wayne Dunn

waynewaynedunncom

What we covered

We 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) Publicprivatecivil society collaboration ndash case study

and discussion (CIDA and Mining Companies) Open discussion on topics of interest (time permitting)

waynewaynedunncom

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 howwhy 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

waynewaynedunncom

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 howwhy 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

waynewaynedunncom

Alignment around Shared Value For shareholders For Communities For People For Governments

Private Sector Contributions To International Development

Remember

  • Private Sector Contributions To International Development
  • Session Objectives
  • Map of the morning How we will try to meet the objectives
  • Slide Number 4
  • What is ODA and FDI
  • What is ODA and FDI
  • Why discuss Private Sector Contribution anyway
  • FDIBusiness Outcomes
  • Intention and Strategy Make a Difference
  • Why does the private sector care
  • Community Consultation and Value
  • Itrsquos Real Money
  • CSR is a Value Strategy
  • Social License Failures cost
  • Why is CSR happening
  • The Mining World Has Changed
  • CSR is a complicated space
  • CSR amp Social License
  • Role of business is changing (click image to play video)
  • Case Studies (of successes)
  • Slide Number 21
  • Uranium Industry in Northern Saskatchewan
  • Challenging area
  • Challenging Times
  • Cameco in 1998
  • Cameco in Northern Saskatchewan (2010)
  • So how did Cameco and the industry do it
  • Placer Dome South Africa
  • Slide Number 29
  • Background
  • Background (cont)
  • Families amp Communities must benefit from mining
  • The Care Project
  • Implications
  • Slide Number 35
  • The Initial 4-Step Plan
  • Reality was different than we expected
  • Reality was different than expected
  • Meeting the challenges
  • TheProcess
  • Some results
  • Chicken raising business
  • Furniture making
  • Unique training programs
  • Rice farming in Mozambique
  • Spaza (convenience) shop
  • And the business value ishellip
  • Slide Number 48
  • What was in it for Placer Dome
  • And then there is HIVAIDS
  • HIVAIDS Facts (in 2000)
  • HIVAIDS Impact
  • HIVAIDS and Gold Mining
  • HIVAIDS Programming
  • Minesite Program
  • Minesite Program
  • Current Community Program
  • Community Mobile Clinic
  • And when HIV prevention doesnrsquot work
  • Industry Home Based Care
  • Home Based Care
  • INDUSTRY HOME BASED CARE RESULTS(Year One)
  • Overview of Placer Dome AIDS Programming
  • Slide Number 64
  • HIVAIDS and Rural Areas
  • HIVAIDS and Rural Areas
  • Reputational Results for Placer Dome
  • Where to next
  • Planned Program
  • Care Positive Summary
  • Andhellip
  • MDG Impacts of Placer Dome in South Africa
  • One thing leads to another
  • PNG HIVAIDS
  • PNG Outcomes (or outputs ndash Irsquom never sure)
  • Slide Number 76
  • PNG AIDS mission to South Africa
  • MDG Impacts of PNG HIVAIDS work
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • MDG Impacts of Eldorado Gold
  • Underwater Logging in Ghana
  • Private Sector and International Development
  • Group Exercise
  • Slide Number 87
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • What we covered
  • Session Objectives
  • Session Objectives
  • Remember
Page 34: Private Sector Contributions To International Development – McGill Executive Education Program Lecture

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

waynewaynedunncom Slide 35

The Mine

2560 Retrenchees bullMozambique bullLesotho bullSouth Africa bullSwaziland bullBotswana

How to successfully provide socio-economic support across remote rural regions of five countries

waynewaynedunncom Slide 36

The Initial 4-Step Plan 1 Consultations with retrenchees in their villages 2 Recruit (from amongst the retrenchees) a group

of 25-30 fieldworkers who would provide frontline support to the retrenchees and their families

3 Locate and register the retrenchees 4 Provide them with training and support to enable

them to become economically active

All of the above to be done in partnership with MDA TEBA and other partners

waynewaynedunncom Slide 37

Reality was different than we expected Retrenchees and their

Unions were still angry over the contested retrenchment Retrencheesrsquo homes were

difficult to locate and registration was often problematic

Consultations with retrenchees

Walking to a remote retrenchee homestead in Lesotho

Slide 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 HIVAIDS Fieldworker training programs Retrenchee education levels Centralized delivery didnrsquot work Project was under-financed We couldnrsquot do it in two years Etc

Slide 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

waynewaynedunncom Slide 40

The Process

Business Operation1 Ongoing availability of Technical Assistance and Business Counselling2 Ongoing faclitiation of skills training needs (ie business agriculture vocational etc)

Decision on Economic Option

Employment StreamEnterprise Stream

Evaluation of Micro Finance Application

Retrenchee is Re-Integrated and Economically Active

PersonalEconomic Plan

Prepared ampAssessed

PersonalEmployment Plan

Prepared

Business amp Financing Plan

Prepared

Employment Planning amp Preparation1 Identification of Employment Options2 Skills Training (VocationalAgricultural etc)3 Employment Counseling Placement (Job searchResume etc)

Business Planning amp Preparation1 Business Orientation a) Introduction to Business b) SkillsProduct Training2 Develop Draft Business Plan (to be reviewed with Counselor) (plan will contain market assessment financial operational and skills upgrading plan)3 Preparation of Micro-Finance Application

Orientation and Awareness Phase1 Registration amp Homestead Visits2 District Counselling Sessions3 Open DaysCareer Fairs4 Financial Lifes Skills Training5 Feedback and Choices Session

Ongoing Processes

Follow-up sessions activities to monitor effectiveness of interventions

Communication and consultation with stakeholders Continuous improvement process (review feedback enhance programs procedures processes)

13-step process Delivered 18 times Across Five countries

Slide 41

Some results 92 of the retrenchees were located

and registered 57 of those (1250) are economically

active 65 (1556) 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 42

Chicken raising business

Slide 43

Furniture making

waynewaynedunncom Slide 44

Unique training programs

waynewaynedunncom Slide 45

Rice farming in Mozambique

Slide 46

Spaza (convenience) shop

Slide 47

And the business value ishellip HIVAIDS 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 ndash 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

waynewaynedunncom Slide 48

ldquoThe project changed the social face of the South African Mining Industryrdquo

Kgosietsile Mogaki

South African Ministry of Minerals and Energy

waynewaynedunncom Slide 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 globally

Through 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 50

And then there is HIVAIDS

RSA ACCOUNTED FOR NEARLY 1 IN 8 OF THE NEW HIV INFECTIONS THAT OCCURRED WORLD WIDE IN 2000

HIV+ PREVALENCE RATE IN WOMEN ATTENDING ANTE-NATAL CLINICS INCREASED FROM 07 IN 1990 TO 248 IN 2001

AVERAGE OF 1700 NEW INFECTIONS PER DAY

LIFE EXPECTANCY WILL DECLINE FROM 65 TO 40 BY 2011

65

40

0

10

20

30

40

50

60

70

2001 2011

Life Expectancy

waynewaynedunncom Slide 51

HIVAIDS Facts (in 2000)

ESTIMATED THAT 12 OF TOTAL RSA POPULATION AND 25 OF MINEWORKERS ARE HIV+

ALREADY 400000 PEOPLE ARE AIDS SICK AND THIS WILL INCREASE TO 14 M BY 2010

YOUNG WOMEN PARTICULARLY VULNERABLE ndash 239 AGED BETWEEN 15 ndash 49 ALREADY INFECTED AND WILL RISE TO 297 BY 2007

AIDS ORPHANS AT PRESENT AMOUNT TO 660000+ AND WILL RISE TO 18M BY 2015

ACCUMULATIVE AIDS DEATHS WILL RISE TO 9M BY 2015

Slide 52

HIVAIDS Impact REDUCED ECONOMIC GROWTH RATE ndash 2010 GDP 20 below a non AIDS

scenario REDUCED POPULATION ndash RSA population 10M smaller than non AIDS scenario SKYROCKETING DEMANDS ON PUBLIC HEALTH SYSTEM - RADICALLY CHANGED PRIVATE SPENDING PATTERNS ndash to healthcare and

funeral costs IMPACT ON SOCIO-ECONOMIC STABILITY (orphans)

HIVAIDS 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 Africa today Nobody can afford to ignore it

Slide 53

HIVAIDS and Gold Mining

$10oz impact if nothing is done (5 of production costs) ~$3oz with maximum

intervention Impact on social and political

stability

Slide 54

HIVAIDS Programming Placer Dome program ndash

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 55

Minesite Program

TRAINING AND EDUCATION

STI amp TB TREATMENT

CONDOM DISTRIBUTION

PEER EDUCATION

VOLUNTARY COUNSELING AND TESTING (VCT)

WELLNESS PROGRAM

MEDICAL REPATRIATION

waynewaynedunncom Slide 56

Minesite Program

waynewaynedunncom Slide 57

Current Community Program

AWARENESS AND EDUCATION PROGRAMS

MOBILE CLINIC

CONDOM amp FEMIDOM DISTRIBUTION

PERIODIC PRESUMPTIVE TREATMENT (PPT)

TREATMENT FOR SEXUALLY TRANSMITTED INFECTIONS ( STI)

waynewaynedunncom Slide 58

COMMUNITY PROGRAM

Community Mobile Clinic

waynewaynedunncom Slide 59

And when HIV prevention doesnrsquot 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 60

Industry Home Based Care

TEBA INFRA-STRUCTURE

TRAINING OF CARE GIVERS

SUPPORT STRUCTURE ndash QUALIFIED STAFF

MONTHLY MEDICATION

WORK WITH OTHER STAKEHOLDERS (EG TRADITIONAL HEALERS)

WORLD BANK DEVELOPMENT INNOVATION AWARD

waynewaynedunncom Slide 61

Home Based Care

Slide 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

waynewaynedunncom Slide 63

Overview of Placer Dome AIDS Programming SOUTH DEEP Sustainable Development Department

bullVoluntary Counseling and testing HIV Negative bullContinue working

On Mine Program Community Program

Modified work program Farm bullAgricultural work Environmental

Medical repatriation

Home Based Care

Benefits Care Positive

HBC EC OPP

Back to work or Re skilled

Wellness Program

waynewaynedunncom Slide 64

But what happens to children and families when the breadwinner canrsquot

work

Slide 65

HIVAIDS and Rural Areas HIVAIDS 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

Slide 66

HIVAIDS 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

waynewaynedunncom

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 CSREthical

Project Award (2004) Numerous other awards Stanford Case Study

waynewaynedunncom Slide 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 69

Planned Program

Care Positive Integrate the Home Based Care

project with the Care process and launch as a fee for service based program to address the social and 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

Care Process

+

Home Based Care

=

Care Positive

waynewaynedunncom Slide 70

Care Positive Summary

waynewaynedunncom

Andhellip 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 $100000 and considerable reputational capital into them Industry went forward with modified HIVAIDS

programming but huge developmental impacts were lost

waynewaynedunncom Slide 72

MDG Impacts of Placer Dome in South Africa

1 Poverty and hunger 2 Some impact on primary education (School

feeding program) 3 Promote gender equality and empower women 4 Reduce child mortality 5 Improve maternal health 6 Combat HIVAIDS malaria and other diseass 7 Ensure environmental sustainability 8 Develop a global partnership for development

(Placer Dome CIDA Civil Society NGOs)

waynewaynedunncom

One thing leads to another

World Bank observed how Placer Domersquos leadership on HIVAIDS 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

waynewaynedunncom

PNG HIVAIDS Scoping mission to

determine what might be done and how Enthusiastic interest from

industry government multi-laterals (WHO UNAIDS World Banketc) ODA (AusAID) CIDA partnered with Place Dome to develop an

HIVAIDS strategy for PNG that integrated industry public sector civil society and international community

waynewaynedunncom

PNG Outcomes (or outputs ndash Irsquom never sure) Partnership with Mining

Industry Civil Society WHO UNAIDS UNDP World Bank PNG AIDS AusAID Oil Palm Industry etc National workshop on

HIVAIDS and publicprivate partnerships SouthSouth Collaboration

Industry government civil society international community study trip to South Africa

waynewaynedunncom

waynewaynedunncom

PNG AIDS mission to South Africa

waynewaynedunncom Slide 78

MDG Impacts of PNG HIVAIDS work

1 Poverty and hunger (nutritional supplements) 2 Some impact on primary education (peripheral) 3 Promote gender equality and empower women 4 Reduce child mortality 5 Improve maternal health 6 Combat HIVAIDS malaria and other diseass 7 Ensure environmental sustainability 8 Develop a global partnership for development

(Placer Dome CIDA Civil Society NGOs)

waynewaynedunncom

Eldorado Gold in Turkey

Major gold find in WestCentral Turkey No successful

mining project launched in decades Eurogold project

built launched and halted by community action in late 1990s ndash still mothballed

UsakKislidag Minesite

Eurogold site

waynewaynedunncom

Eldorado Gold in Turkey

Isolated rural area Nearly half of nearby

communities opposed to mine development Agriculture primary

economic activity in rural communities ndash smallmicro family farms

waynewaynedunncom

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

waynewaynedunncom

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 $075 to $1325 Opened second mine in Turkey

bull Able to deal with controversial watershed issues after relationship success in Usak

waynewaynedunncom Slide 83

MDG Impacts of Eldorado Gold

1 Poverty and hunger (minimal) 2 Some impact on primary education (peripheral) 3 Promote gender equality and empower women 4 Reduce child mortality 5 Improve maternal health 6 Combat HIVAIDS malaria and other diseass 7 Ensure environmental sustainability 8 Develop a global partnership for development

(Placer Dome CIDA Civil Society NGOs)

waynewaynedunncom

Underwater Logging in Ghana

waynewaynedunncom

Private Sector and International Development

Private sector especially resource extraction has a very mixed record bull Some horrendous disasters (Nigeria Warao Peoples in

Venezuela etc) bull Some great successes (Placer Dome Care project

mining and HIVAIDS 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

waynewaynedunncom

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

interestsobjectives overlap

waynewaynedunncom

SDCSR Implementation Challenges

more than a warm fuzzy issue Spending isnrsquot the answer

Plan

Framework

System

Results

Solving social problems Objectives

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Beyond Beads and Trinkets ndash BC Mining Review

A lsquohow torsquo article on mining and CSR

Wayne Dunn

BP Venezuela Indigenous Relations ndash Meeting the Challenge Responsibly and Sustainably

Situational assessment and strategic plan for BP Venezuela Authorized for release by BP

Wayne Dunn

Cameco Community Relations Report

Situational assessment and management strategy Authorized for release by Cameco

Wayne Dunn

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author Beyond Beads lsquon Trinkets A systematic approach to managing community relations

A conference paper describing a systematic approach to community relations management helping companies to methodically develop mutually beneficial relationships with local communities and interests (this is one of the earliest papers on this subject ndash written in 1998)

Wayne Dunn

The costs of conflict with local communities in the extractive industry

Analysis of the cost of community conflicts in the Extractive Sector

Rachel Davis and Daniel M Franks

Creating Shared Value

Harvard Business Review interview with Michael Porter

Video

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Social License Its all about value

Discussion on Social License and shareholder Value

Wayne Dunn

Its about Development Commentary on the CIDAMining Company issue

Wayne Dunn

Integrating corporate strategy and social responsibilitymdashmarket returns from stakeholder engagement

Discussion and analysis on market returns on stakeholder engagement

Witold J Henisz Sinziana Dorobantu and Lite J Narty

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

McGill Reporter ndash Four Burning Questions Wayne Dunn on CSR

Discussion on CSR Wayne Dunn

Miningrsquos contribution to sustainable development ndashan overview

Discussion paper prepared by the International Council on Mining and Metals

Millennium Development Goals

United Nations

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Mining and Agriculture Development

A short lsquohow torsquo guide for mining projects to engage with the local agriculture sector

Al Hingston

PDSA Social Value Brochure

Brochure on social value created by Placer Dome South Africa

Placer Dome

The Value of Social License

Opinion piece published in Northern Miner

Wayne Dunn

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Golden Opportunity When a Canadian multinational laid off hundreds of gold miners in South Africa it went many extra miles to help them get back on their feet

Stanford Business School Case Study on Placer Dome in South Africa

Wayne Dunn

The Changing Resource Development Paradigm Maximizing Sustainable Local Benefits from Resource Development

Strategic thought piece prepared for the government of British Columbia Canada

Wayne Dunn

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

The Disappearing Barriers Between Business And Non-profits Are Driving Innovation

Discussion paper

Katherine Pikus

When Condoms are not enough

World Bank staff magazine article on Placer Dome and South African mining industryrsquos work with HIVAIDS

Craig Andrews

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

MINING AND LOCAL ECONOMIC DEVELOPMENT IN PAPUA NEW GUINEA Preliminary Research on a Potential Pilot Project in Porgera and Lihir

Strategic research and action plan on mining and local economic development in Papua New Guinea prepared for the World Bank

Wayne Dunn

waynewaynedunncom

What we covered

We 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) Publicprivatecivil society collaboration ndash case study

and discussion (CIDA and Mining Companies) Open discussion on topics of interest (time permitting)

waynewaynedunncom

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 howwhy 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

waynewaynedunncom

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 howwhy 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

waynewaynedunncom

Alignment around Shared Value For shareholders For Communities For People For Governments

Private Sector Contributions To International Development

Remember

  • Private Sector Contributions To International Development
  • Session Objectives
  • Map of the morning How we will try to meet the objectives
  • Slide Number 4
  • What is ODA and FDI
  • What is ODA and FDI
  • Why discuss Private Sector Contribution anyway
  • FDIBusiness Outcomes
  • Intention and Strategy Make a Difference
  • Why does the private sector care
  • Community Consultation and Value
  • Itrsquos Real Money
  • CSR is a Value Strategy
  • Social License Failures cost
  • Why is CSR happening
  • The Mining World Has Changed
  • CSR is a complicated space
  • CSR amp Social License
  • Role of business is changing (click image to play video)
  • Case Studies (of successes)
  • Slide Number 21
  • Uranium Industry in Northern Saskatchewan
  • Challenging area
  • Challenging Times
  • Cameco in 1998
  • Cameco in Northern Saskatchewan (2010)
  • So how did Cameco and the industry do it
  • Placer Dome South Africa
  • Slide Number 29
  • Background
  • Background (cont)
  • Families amp Communities must benefit from mining
  • The Care Project
  • Implications
  • Slide Number 35
  • The Initial 4-Step Plan
  • Reality was different than we expected
  • Reality was different than expected
  • Meeting the challenges
  • TheProcess
  • Some results
  • Chicken raising business
  • Furniture making
  • Unique training programs
  • Rice farming in Mozambique
  • Spaza (convenience) shop
  • And the business value ishellip
  • Slide Number 48
  • What was in it for Placer Dome
  • And then there is HIVAIDS
  • HIVAIDS Facts (in 2000)
  • HIVAIDS Impact
  • HIVAIDS and Gold Mining
  • HIVAIDS Programming
  • Minesite Program
  • Minesite Program
  • Current Community Program
  • Community Mobile Clinic
  • And when HIV prevention doesnrsquot work
  • Industry Home Based Care
  • Home Based Care
  • INDUSTRY HOME BASED CARE RESULTS(Year One)
  • Overview of Placer Dome AIDS Programming
  • Slide Number 64
  • HIVAIDS and Rural Areas
  • HIVAIDS and Rural Areas
  • Reputational Results for Placer Dome
  • Where to next
  • Planned Program
  • Care Positive Summary
  • Andhellip
  • MDG Impacts of Placer Dome in South Africa
  • One thing leads to another
  • PNG HIVAIDS
  • PNG Outcomes (or outputs ndash Irsquom never sure)
  • Slide Number 76
  • PNG AIDS mission to South Africa
  • MDG Impacts of PNG HIVAIDS work
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • MDG Impacts of Eldorado Gold
  • Underwater Logging in Ghana
  • Private Sector and International Development
  • Group Exercise
  • Slide Number 87
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • What we covered
  • Session Objectives
  • Session Objectives
  • Remember
Page 35: Private Sector Contributions To International Development – McGill Executive Education Program Lecture

waynewaynedunncom Slide 35

The Mine

2560 Retrenchees bullMozambique bullLesotho bullSouth Africa bullSwaziland bullBotswana

How to successfully provide socio-economic support across remote rural regions of five countries

waynewaynedunncom Slide 36

The Initial 4-Step Plan 1 Consultations with retrenchees in their villages 2 Recruit (from amongst the retrenchees) a group

of 25-30 fieldworkers who would provide frontline support to the retrenchees and their families

3 Locate and register the retrenchees 4 Provide them with training and support to enable

them to become economically active

All of the above to be done in partnership with MDA TEBA and other partners

waynewaynedunncom Slide 37

Reality was different than we expected Retrenchees and their

Unions were still angry over the contested retrenchment Retrencheesrsquo homes were

difficult to locate and registration was often problematic

Consultations with retrenchees

Walking to a remote retrenchee homestead in Lesotho

Slide 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 HIVAIDS Fieldworker training programs Retrenchee education levels Centralized delivery didnrsquot work Project was under-financed We couldnrsquot do it in two years Etc

Slide 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

waynewaynedunncom Slide 40

The Process

Business Operation1 Ongoing availability of Technical Assistance and Business Counselling2 Ongoing faclitiation of skills training needs (ie business agriculture vocational etc)

Decision on Economic Option

Employment StreamEnterprise Stream

Evaluation of Micro Finance Application

Retrenchee is Re-Integrated and Economically Active

PersonalEconomic Plan

Prepared ampAssessed

PersonalEmployment Plan

Prepared

Business amp Financing Plan

Prepared

Employment Planning amp Preparation1 Identification of Employment Options2 Skills Training (VocationalAgricultural etc)3 Employment Counseling Placement (Job searchResume etc)

Business Planning amp Preparation1 Business Orientation a) Introduction to Business b) SkillsProduct Training2 Develop Draft Business Plan (to be reviewed with Counselor) (plan will contain market assessment financial operational and skills upgrading plan)3 Preparation of Micro-Finance Application

Orientation and Awareness Phase1 Registration amp Homestead Visits2 District Counselling Sessions3 Open DaysCareer Fairs4 Financial Lifes Skills Training5 Feedback and Choices Session

Ongoing Processes

Follow-up sessions activities to monitor effectiveness of interventions

Communication and consultation with stakeholders Continuous improvement process (review feedback enhance programs procedures processes)

13-step process Delivered 18 times Across Five countries

Slide 41

Some results 92 of the retrenchees were located

and registered 57 of those (1250) are economically

active 65 (1556) 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 42

Chicken raising business

Slide 43

Furniture making

waynewaynedunncom Slide 44

Unique training programs

waynewaynedunncom Slide 45

Rice farming in Mozambique

Slide 46

Spaza (convenience) shop

Slide 47

And the business value ishellip HIVAIDS 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 ndash 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

waynewaynedunncom Slide 48

ldquoThe project changed the social face of the South African Mining Industryrdquo

Kgosietsile Mogaki

South African Ministry of Minerals and Energy

waynewaynedunncom Slide 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 globally

Through 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 50

And then there is HIVAIDS

RSA ACCOUNTED FOR NEARLY 1 IN 8 OF THE NEW HIV INFECTIONS THAT OCCURRED WORLD WIDE IN 2000

HIV+ PREVALENCE RATE IN WOMEN ATTENDING ANTE-NATAL CLINICS INCREASED FROM 07 IN 1990 TO 248 IN 2001

AVERAGE OF 1700 NEW INFECTIONS PER DAY

LIFE EXPECTANCY WILL DECLINE FROM 65 TO 40 BY 2011

65

40

0

10

20

30

40

50

60

70

2001 2011

Life Expectancy

waynewaynedunncom Slide 51

HIVAIDS Facts (in 2000)

ESTIMATED THAT 12 OF TOTAL RSA POPULATION AND 25 OF MINEWORKERS ARE HIV+

ALREADY 400000 PEOPLE ARE AIDS SICK AND THIS WILL INCREASE TO 14 M BY 2010

YOUNG WOMEN PARTICULARLY VULNERABLE ndash 239 AGED BETWEEN 15 ndash 49 ALREADY INFECTED AND WILL RISE TO 297 BY 2007

AIDS ORPHANS AT PRESENT AMOUNT TO 660000+ AND WILL RISE TO 18M BY 2015

ACCUMULATIVE AIDS DEATHS WILL RISE TO 9M BY 2015

Slide 52

HIVAIDS Impact REDUCED ECONOMIC GROWTH RATE ndash 2010 GDP 20 below a non AIDS

scenario REDUCED POPULATION ndash RSA population 10M smaller than non AIDS scenario SKYROCKETING DEMANDS ON PUBLIC HEALTH SYSTEM - RADICALLY CHANGED PRIVATE SPENDING PATTERNS ndash to healthcare and

funeral costs IMPACT ON SOCIO-ECONOMIC STABILITY (orphans)

HIVAIDS 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 Africa today Nobody can afford to ignore it

Slide 53

HIVAIDS and Gold Mining

$10oz impact if nothing is done (5 of production costs) ~$3oz with maximum

intervention Impact on social and political

stability

Slide 54

HIVAIDS Programming Placer Dome program ndash

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 55

Minesite Program

TRAINING AND EDUCATION

STI amp TB TREATMENT

CONDOM DISTRIBUTION

PEER EDUCATION

VOLUNTARY COUNSELING AND TESTING (VCT)

WELLNESS PROGRAM

MEDICAL REPATRIATION

waynewaynedunncom Slide 56

Minesite Program

waynewaynedunncom Slide 57

Current Community Program

AWARENESS AND EDUCATION PROGRAMS

MOBILE CLINIC

CONDOM amp FEMIDOM DISTRIBUTION

PERIODIC PRESUMPTIVE TREATMENT (PPT)

TREATMENT FOR SEXUALLY TRANSMITTED INFECTIONS ( STI)

waynewaynedunncom Slide 58

COMMUNITY PROGRAM

Community Mobile Clinic

waynewaynedunncom Slide 59

And when HIV prevention doesnrsquot 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 60

Industry Home Based Care

TEBA INFRA-STRUCTURE

TRAINING OF CARE GIVERS

SUPPORT STRUCTURE ndash QUALIFIED STAFF

MONTHLY MEDICATION

WORK WITH OTHER STAKEHOLDERS (EG TRADITIONAL HEALERS)

WORLD BANK DEVELOPMENT INNOVATION AWARD

waynewaynedunncom Slide 61

Home Based Care

Slide 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

waynewaynedunncom Slide 63

Overview of Placer Dome AIDS Programming SOUTH DEEP Sustainable Development Department

bullVoluntary Counseling and testing HIV Negative bullContinue working

On Mine Program Community Program

Modified work program Farm bullAgricultural work Environmental

Medical repatriation

Home Based Care

Benefits Care Positive

HBC EC OPP

Back to work or Re skilled

Wellness Program

waynewaynedunncom Slide 64

But what happens to children and families when the breadwinner canrsquot

work

Slide 65

HIVAIDS and Rural Areas HIVAIDS 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

Slide 66

HIVAIDS 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

waynewaynedunncom

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 CSREthical

Project Award (2004) Numerous other awards Stanford Case Study

waynewaynedunncom Slide 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 69

Planned Program

Care Positive Integrate the Home Based Care

project with the Care process and launch as a fee for service based program to address the social and 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

Care Process

+

Home Based Care

=

Care Positive

waynewaynedunncom Slide 70

Care Positive Summary

waynewaynedunncom

Andhellip 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 $100000 and considerable reputational capital into them Industry went forward with modified HIVAIDS

programming but huge developmental impacts were lost

waynewaynedunncom Slide 72

MDG Impacts of Placer Dome in South Africa

1 Poverty and hunger 2 Some impact on primary education (School

feeding program) 3 Promote gender equality and empower women 4 Reduce child mortality 5 Improve maternal health 6 Combat HIVAIDS malaria and other diseass 7 Ensure environmental sustainability 8 Develop a global partnership for development

(Placer Dome CIDA Civil Society NGOs)

waynewaynedunncom

One thing leads to another

World Bank observed how Placer Domersquos leadership on HIVAIDS 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

waynewaynedunncom

PNG HIVAIDS Scoping mission to

determine what might be done and how Enthusiastic interest from

industry government multi-laterals (WHO UNAIDS World Banketc) ODA (AusAID) CIDA partnered with Place Dome to develop an

HIVAIDS strategy for PNG that integrated industry public sector civil society and international community

waynewaynedunncom

PNG Outcomes (or outputs ndash Irsquom never sure) Partnership with Mining

Industry Civil Society WHO UNAIDS UNDP World Bank PNG AIDS AusAID Oil Palm Industry etc National workshop on

HIVAIDS and publicprivate partnerships SouthSouth Collaboration

Industry government civil society international community study trip to South Africa

waynewaynedunncom

waynewaynedunncom

PNG AIDS mission to South Africa

waynewaynedunncom Slide 78

MDG Impacts of PNG HIVAIDS work

1 Poverty and hunger (nutritional supplements) 2 Some impact on primary education (peripheral) 3 Promote gender equality and empower women 4 Reduce child mortality 5 Improve maternal health 6 Combat HIVAIDS malaria and other diseass 7 Ensure environmental sustainability 8 Develop a global partnership for development

(Placer Dome CIDA Civil Society NGOs)

waynewaynedunncom

Eldorado Gold in Turkey

Major gold find in WestCentral Turkey No successful

mining project launched in decades Eurogold project

built launched and halted by community action in late 1990s ndash still mothballed

UsakKislidag Minesite

Eurogold site

waynewaynedunncom

Eldorado Gold in Turkey

Isolated rural area Nearly half of nearby

communities opposed to mine development Agriculture primary

economic activity in rural communities ndash smallmicro family farms

waynewaynedunncom

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

waynewaynedunncom

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 $075 to $1325 Opened second mine in Turkey

bull Able to deal with controversial watershed issues after relationship success in Usak

waynewaynedunncom Slide 83

MDG Impacts of Eldorado Gold

1 Poverty and hunger (minimal) 2 Some impact on primary education (peripheral) 3 Promote gender equality and empower women 4 Reduce child mortality 5 Improve maternal health 6 Combat HIVAIDS malaria and other diseass 7 Ensure environmental sustainability 8 Develop a global partnership for development

(Placer Dome CIDA Civil Society NGOs)

waynewaynedunncom

Underwater Logging in Ghana

waynewaynedunncom

Private Sector and International Development

Private sector especially resource extraction has a very mixed record bull Some horrendous disasters (Nigeria Warao Peoples in

Venezuela etc) bull Some great successes (Placer Dome Care project

mining and HIVAIDS 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

waynewaynedunncom

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

interestsobjectives overlap

waynewaynedunncom

SDCSR Implementation Challenges

more than a warm fuzzy issue Spending isnrsquot the answer

Plan

Framework

System

Results

Solving social problems Objectives

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Beyond Beads and Trinkets ndash BC Mining Review

A lsquohow torsquo article on mining and CSR

Wayne Dunn

BP Venezuela Indigenous Relations ndash Meeting the Challenge Responsibly and Sustainably

Situational assessment and strategic plan for BP Venezuela Authorized for release by BP

Wayne Dunn

Cameco Community Relations Report

Situational assessment and management strategy Authorized for release by Cameco

Wayne Dunn

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author Beyond Beads lsquon Trinkets A systematic approach to managing community relations

A conference paper describing a systematic approach to community relations management helping companies to methodically develop mutually beneficial relationships with local communities and interests (this is one of the earliest papers on this subject ndash written in 1998)

Wayne Dunn

The costs of conflict with local communities in the extractive industry

Analysis of the cost of community conflicts in the Extractive Sector

Rachel Davis and Daniel M Franks

Creating Shared Value

Harvard Business Review interview with Michael Porter

Video

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Social License Its all about value

Discussion on Social License and shareholder Value

Wayne Dunn

Its about Development Commentary on the CIDAMining Company issue

Wayne Dunn

Integrating corporate strategy and social responsibilitymdashmarket returns from stakeholder engagement

Discussion and analysis on market returns on stakeholder engagement

Witold J Henisz Sinziana Dorobantu and Lite J Narty

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

McGill Reporter ndash Four Burning Questions Wayne Dunn on CSR

Discussion on CSR Wayne Dunn

Miningrsquos contribution to sustainable development ndashan overview

Discussion paper prepared by the International Council on Mining and Metals

Millennium Development Goals

United Nations

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Mining and Agriculture Development

A short lsquohow torsquo guide for mining projects to engage with the local agriculture sector

Al Hingston

PDSA Social Value Brochure

Brochure on social value created by Placer Dome South Africa

Placer Dome

The Value of Social License

Opinion piece published in Northern Miner

Wayne Dunn

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Golden Opportunity When a Canadian multinational laid off hundreds of gold miners in South Africa it went many extra miles to help them get back on their feet

Stanford Business School Case Study on Placer Dome in South Africa

Wayne Dunn

The Changing Resource Development Paradigm Maximizing Sustainable Local Benefits from Resource Development

Strategic thought piece prepared for the government of British Columbia Canada

Wayne Dunn

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

The Disappearing Barriers Between Business And Non-profits Are Driving Innovation

Discussion paper

Katherine Pikus

When Condoms are not enough

World Bank staff magazine article on Placer Dome and South African mining industryrsquos work with HIVAIDS

Craig Andrews

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

MINING AND LOCAL ECONOMIC DEVELOPMENT IN PAPUA NEW GUINEA Preliminary Research on a Potential Pilot Project in Porgera and Lihir

Strategic research and action plan on mining and local economic development in Papua New Guinea prepared for the World Bank

Wayne Dunn

waynewaynedunncom

What we covered

We 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) Publicprivatecivil society collaboration ndash case study

and discussion (CIDA and Mining Companies) Open discussion on topics of interest (time permitting)

waynewaynedunncom

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 howwhy 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

waynewaynedunncom

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 howwhy 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

waynewaynedunncom

Alignment around Shared Value For shareholders For Communities For People For Governments

Private Sector Contributions To International Development

Remember

  • Private Sector Contributions To International Development
  • Session Objectives
  • Map of the morning How we will try to meet the objectives
  • Slide Number 4
  • What is ODA and FDI
  • What is ODA and FDI
  • Why discuss Private Sector Contribution anyway
  • FDIBusiness Outcomes
  • Intention and Strategy Make a Difference
  • Why does the private sector care
  • Community Consultation and Value
  • Itrsquos Real Money
  • CSR is a Value Strategy
  • Social License Failures cost
  • Why is CSR happening
  • The Mining World Has Changed
  • CSR is a complicated space
  • CSR amp Social License
  • Role of business is changing (click image to play video)
  • Case Studies (of successes)
  • Slide Number 21
  • Uranium Industry in Northern Saskatchewan
  • Challenging area
  • Challenging Times
  • Cameco in 1998
  • Cameco in Northern Saskatchewan (2010)
  • So how did Cameco and the industry do it
  • Placer Dome South Africa
  • Slide Number 29
  • Background
  • Background (cont)
  • Families amp Communities must benefit from mining
  • The Care Project
  • Implications
  • Slide Number 35
  • The Initial 4-Step Plan
  • Reality was different than we expected
  • Reality was different than expected
  • Meeting the challenges
  • TheProcess
  • Some results
  • Chicken raising business
  • Furniture making
  • Unique training programs
  • Rice farming in Mozambique
  • Spaza (convenience) shop
  • And the business value ishellip
  • Slide Number 48
  • What was in it for Placer Dome
  • And then there is HIVAIDS
  • HIVAIDS Facts (in 2000)
  • HIVAIDS Impact
  • HIVAIDS and Gold Mining
  • HIVAIDS Programming
  • Minesite Program
  • Minesite Program
  • Current Community Program
  • Community Mobile Clinic
  • And when HIV prevention doesnrsquot work
  • Industry Home Based Care
  • Home Based Care
  • INDUSTRY HOME BASED CARE RESULTS(Year One)
  • Overview of Placer Dome AIDS Programming
  • Slide Number 64
  • HIVAIDS and Rural Areas
  • HIVAIDS and Rural Areas
  • Reputational Results for Placer Dome
  • Where to next
  • Planned Program
  • Care Positive Summary
  • Andhellip
  • MDG Impacts of Placer Dome in South Africa
  • One thing leads to another
  • PNG HIVAIDS
  • PNG Outcomes (or outputs ndash Irsquom never sure)
  • Slide Number 76
  • PNG AIDS mission to South Africa
  • MDG Impacts of PNG HIVAIDS work
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • MDG Impacts of Eldorado Gold
  • Underwater Logging in Ghana
  • Private Sector and International Development
  • Group Exercise
  • Slide Number 87
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • What we covered
  • Session Objectives
  • Session Objectives
  • Remember
Page 36: Private Sector Contributions To International Development – McGill Executive Education Program Lecture

waynewaynedunncom Slide 36

The Initial 4-Step Plan 1 Consultations with retrenchees in their villages 2 Recruit (from amongst the retrenchees) a group

of 25-30 fieldworkers who would provide frontline support to the retrenchees and their families

3 Locate and register the retrenchees 4 Provide them with training and support to enable

them to become economically active

All of the above to be done in partnership with MDA TEBA and other partners

waynewaynedunncom Slide 37

Reality was different than we expected Retrenchees and their

Unions were still angry over the contested retrenchment Retrencheesrsquo homes were

difficult to locate and registration was often problematic

Consultations with retrenchees

Walking to a remote retrenchee homestead in Lesotho

Slide 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 HIVAIDS Fieldworker training programs Retrenchee education levels Centralized delivery didnrsquot work Project was under-financed We couldnrsquot do it in two years Etc

Slide 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

waynewaynedunncom Slide 40

The Process

Business Operation1 Ongoing availability of Technical Assistance and Business Counselling2 Ongoing faclitiation of skills training needs (ie business agriculture vocational etc)

Decision on Economic Option

Employment StreamEnterprise Stream

Evaluation of Micro Finance Application

Retrenchee is Re-Integrated and Economically Active

PersonalEconomic Plan

Prepared ampAssessed

PersonalEmployment Plan

Prepared

Business amp Financing Plan

Prepared

Employment Planning amp Preparation1 Identification of Employment Options2 Skills Training (VocationalAgricultural etc)3 Employment Counseling Placement (Job searchResume etc)

Business Planning amp Preparation1 Business Orientation a) Introduction to Business b) SkillsProduct Training2 Develop Draft Business Plan (to be reviewed with Counselor) (plan will contain market assessment financial operational and skills upgrading plan)3 Preparation of Micro-Finance Application

Orientation and Awareness Phase1 Registration amp Homestead Visits2 District Counselling Sessions3 Open DaysCareer Fairs4 Financial Lifes Skills Training5 Feedback and Choices Session

Ongoing Processes

Follow-up sessions activities to monitor effectiveness of interventions

Communication and consultation with stakeholders Continuous improvement process (review feedback enhance programs procedures processes)

13-step process Delivered 18 times Across Five countries

Slide 41

Some results 92 of the retrenchees were located

and registered 57 of those (1250) are economically

active 65 (1556) 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 42

Chicken raising business

Slide 43

Furniture making

waynewaynedunncom Slide 44

Unique training programs

waynewaynedunncom Slide 45

Rice farming in Mozambique

Slide 46

Spaza (convenience) shop

Slide 47

And the business value ishellip HIVAIDS 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 ndash 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

waynewaynedunncom Slide 48

ldquoThe project changed the social face of the South African Mining Industryrdquo

Kgosietsile Mogaki

South African Ministry of Minerals and Energy

waynewaynedunncom Slide 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 globally

Through 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 50

And then there is HIVAIDS

RSA ACCOUNTED FOR NEARLY 1 IN 8 OF THE NEW HIV INFECTIONS THAT OCCURRED WORLD WIDE IN 2000

HIV+ PREVALENCE RATE IN WOMEN ATTENDING ANTE-NATAL CLINICS INCREASED FROM 07 IN 1990 TO 248 IN 2001

AVERAGE OF 1700 NEW INFECTIONS PER DAY

LIFE EXPECTANCY WILL DECLINE FROM 65 TO 40 BY 2011

65

40

0

10

20

30

40

50

60

70

2001 2011

Life Expectancy

waynewaynedunncom Slide 51

HIVAIDS Facts (in 2000)

ESTIMATED THAT 12 OF TOTAL RSA POPULATION AND 25 OF MINEWORKERS ARE HIV+

ALREADY 400000 PEOPLE ARE AIDS SICK AND THIS WILL INCREASE TO 14 M BY 2010

YOUNG WOMEN PARTICULARLY VULNERABLE ndash 239 AGED BETWEEN 15 ndash 49 ALREADY INFECTED AND WILL RISE TO 297 BY 2007

AIDS ORPHANS AT PRESENT AMOUNT TO 660000+ AND WILL RISE TO 18M BY 2015

ACCUMULATIVE AIDS DEATHS WILL RISE TO 9M BY 2015

Slide 52

HIVAIDS Impact REDUCED ECONOMIC GROWTH RATE ndash 2010 GDP 20 below a non AIDS

scenario REDUCED POPULATION ndash RSA population 10M smaller than non AIDS scenario SKYROCKETING DEMANDS ON PUBLIC HEALTH SYSTEM - RADICALLY CHANGED PRIVATE SPENDING PATTERNS ndash to healthcare and

funeral costs IMPACT ON SOCIO-ECONOMIC STABILITY (orphans)

HIVAIDS 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 Africa today Nobody can afford to ignore it

Slide 53

HIVAIDS and Gold Mining

$10oz impact if nothing is done (5 of production costs) ~$3oz with maximum

intervention Impact on social and political

stability

Slide 54

HIVAIDS Programming Placer Dome program ndash

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 55

Minesite Program

TRAINING AND EDUCATION

STI amp TB TREATMENT

CONDOM DISTRIBUTION

PEER EDUCATION

VOLUNTARY COUNSELING AND TESTING (VCT)

WELLNESS PROGRAM

MEDICAL REPATRIATION

waynewaynedunncom Slide 56

Minesite Program

waynewaynedunncom Slide 57

Current Community Program

AWARENESS AND EDUCATION PROGRAMS

MOBILE CLINIC

CONDOM amp FEMIDOM DISTRIBUTION

PERIODIC PRESUMPTIVE TREATMENT (PPT)

TREATMENT FOR SEXUALLY TRANSMITTED INFECTIONS ( STI)

waynewaynedunncom Slide 58

COMMUNITY PROGRAM

Community Mobile Clinic

waynewaynedunncom Slide 59

And when HIV prevention doesnrsquot 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 60

Industry Home Based Care

TEBA INFRA-STRUCTURE

TRAINING OF CARE GIVERS

SUPPORT STRUCTURE ndash QUALIFIED STAFF

MONTHLY MEDICATION

WORK WITH OTHER STAKEHOLDERS (EG TRADITIONAL HEALERS)

WORLD BANK DEVELOPMENT INNOVATION AWARD

waynewaynedunncom Slide 61

Home Based Care

Slide 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

waynewaynedunncom Slide 63

Overview of Placer Dome AIDS Programming SOUTH DEEP Sustainable Development Department

bullVoluntary Counseling and testing HIV Negative bullContinue working

On Mine Program Community Program

Modified work program Farm bullAgricultural work Environmental

Medical repatriation

Home Based Care

Benefits Care Positive

HBC EC OPP

Back to work or Re skilled

Wellness Program

waynewaynedunncom Slide 64

But what happens to children and families when the breadwinner canrsquot

work

Slide 65

HIVAIDS and Rural Areas HIVAIDS 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

Slide 66

HIVAIDS 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

waynewaynedunncom

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 CSREthical

Project Award (2004) Numerous other awards Stanford Case Study

waynewaynedunncom Slide 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 69

Planned Program

Care Positive Integrate the Home Based Care

project with the Care process and launch as a fee for service based program to address the social and 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

Care Process

+

Home Based Care

=

Care Positive

waynewaynedunncom Slide 70

Care Positive Summary

waynewaynedunncom

Andhellip 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 $100000 and considerable reputational capital into them Industry went forward with modified HIVAIDS

programming but huge developmental impacts were lost

waynewaynedunncom Slide 72

MDG Impacts of Placer Dome in South Africa

1 Poverty and hunger 2 Some impact on primary education (School

feeding program) 3 Promote gender equality and empower women 4 Reduce child mortality 5 Improve maternal health 6 Combat HIVAIDS malaria and other diseass 7 Ensure environmental sustainability 8 Develop a global partnership for development

(Placer Dome CIDA Civil Society NGOs)

waynewaynedunncom

One thing leads to another

World Bank observed how Placer Domersquos leadership on HIVAIDS 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

waynewaynedunncom

PNG HIVAIDS Scoping mission to

determine what might be done and how Enthusiastic interest from

industry government multi-laterals (WHO UNAIDS World Banketc) ODA (AusAID) CIDA partnered with Place Dome to develop an

HIVAIDS strategy for PNG that integrated industry public sector civil society and international community

waynewaynedunncom

PNG Outcomes (or outputs ndash Irsquom never sure) Partnership with Mining

Industry Civil Society WHO UNAIDS UNDP World Bank PNG AIDS AusAID Oil Palm Industry etc National workshop on

HIVAIDS and publicprivate partnerships SouthSouth Collaboration

Industry government civil society international community study trip to South Africa

waynewaynedunncom

waynewaynedunncom

PNG AIDS mission to South Africa

waynewaynedunncom Slide 78

MDG Impacts of PNG HIVAIDS work

1 Poverty and hunger (nutritional supplements) 2 Some impact on primary education (peripheral) 3 Promote gender equality and empower women 4 Reduce child mortality 5 Improve maternal health 6 Combat HIVAIDS malaria and other diseass 7 Ensure environmental sustainability 8 Develop a global partnership for development

(Placer Dome CIDA Civil Society NGOs)

waynewaynedunncom

Eldorado Gold in Turkey

Major gold find in WestCentral Turkey No successful

mining project launched in decades Eurogold project

built launched and halted by community action in late 1990s ndash still mothballed

UsakKislidag Minesite

Eurogold site

waynewaynedunncom

Eldorado Gold in Turkey

Isolated rural area Nearly half of nearby

communities opposed to mine development Agriculture primary

economic activity in rural communities ndash smallmicro family farms

waynewaynedunncom

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

waynewaynedunncom

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 $075 to $1325 Opened second mine in Turkey

bull Able to deal with controversial watershed issues after relationship success in Usak

waynewaynedunncom Slide 83

MDG Impacts of Eldorado Gold

1 Poverty and hunger (minimal) 2 Some impact on primary education (peripheral) 3 Promote gender equality and empower women 4 Reduce child mortality 5 Improve maternal health 6 Combat HIVAIDS malaria and other diseass 7 Ensure environmental sustainability 8 Develop a global partnership for development

(Placer Dome CIDA Civil Society NGOs)

waynewaynedunncom

Underwater Logging in Ghana

waynewaynedunncom

Private Sector and International Development

Private sector especially resource extraction has a very mixed record bull Some horrendous disasters (Nigeria Warao Peoples in

Venezuela etc) bull Some great successes (Placer Dome Care project

mining and HIVAIDS 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

waynewaynedunncom

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

interestsobjectives overlap

waynewaynedunncom

SDCSR Implementation Challenges

more than a warm fuzzy issue Spending isnrsquot the answer

Plan

Framework

System

Results

Solving social problems Objectives

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Beyond Beads and Trinkets ndash BC Mining Review

A lsquohow torsquo article on mining and CSR

Wayne Dunn

BP Venezuela Indigenous Relations ndash Meeting the Challenge Responsibly and Sustainably

Situational assessment and strategic plan for BP Venezuela Authorized for release by BP

Wayne Dunn

Cameco Community Relations Report

Situational assessment and management strategy Authorized for release by Cameco

Wayne Dunn

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author Beyond Beads lsquon Trinkets A systematic approach to managing community relations

A conference paper describing a systematic approach to community relations management helping companies to methodically develop mutually beneficial relationships with local communities and interests (this is one of the earliest papers on this subject ndash written in 1998)

Wayne Dunn

The costs of conflict with local communities in the extractive industry

Analysis of the cost of community conflicts in the Extractive Sector

Rachel Davis and Daniel M Franks

Creating Shared Value

Harvard Business Review interview with Michael Porter

Video

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Social License Its all about value

Discussion on Social License and shareholder Value

Wayne Dunn

Its about Development Commentary on the CIDAMining Company issue

Wayne Dunn

Integrating corporate strategy and social responsibilitymdashmarket returns from stakeholder engagement

Discussion and analysis on market returns on stakeholder engagement

Witold J Henisz Sinziana Dorobantu and Lite J Narty

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

McGill Reporter ndash Four Burning Questions Wayne Dunn on CSR

Discussion on CSR Wayne Dunn

Miningrsquos contribution to sustainable development ndashan overview

Discussion paper prepared by the International Council on Mining and Metals

Millennium Development Goals

United Nations

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Mining and Agriculture Development

A short lsquohow torsquo guide for mining projects to engage with the local agriculture sector

Al Hingston

PDSA Social Value Brochure

Brochure on social value created by Placer Dome South Africa

Placer Dome

The Value of Social License

Opinion piece published in Northern Miner

Wayne Dunn

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Golden Opportunity When a Canadian multinational laid off hundreds of gold miners in South Africa it went many extra miles to help them get back on their feet

Stanford Business School Case Study on Placer Dome in South Africa

Wayne Dunn

The Changing Resource Development Paradigm Maximizing Sustainable Local Benefits from Resource Development

Strategic thought piece prepared for the government of British Columbia Canada

Wayne Dunn

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

The Disappearing Barriers Between Business And Non-profits Are Driving Innovation

Discussion paper

Katherine Pikus

When Condoms are not enough

World Bank staff magazine article on Placer Dome and South African mining industryrsquos work with HIVAIDS

Craig Andrews

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

MINING AND LOCAL ECONOMIC DEVELOPMENT IN PAPUA NEW GUINEA Preliminary Research on a Potential Pilot Project in Porgera and Lihir

Strategic research and action plan on mining and local economic development in Papua New Guinea prepared for the World Bank

Wayne Dunn

waynewaynedunncom

What we covered

We 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) Publicprivatecivil society collaboration ndash case study

and discussion (CIDA and Mining Companies) Open discussion on topics of interest (time permitting)

waynewaynedunncom

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 howwhy 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

waynewaynedunncom

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 howwhy 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

waynewaynedunncom

Alignment around Shared Value For shareholders For Communities For People For Governments

Private Sector Contributions To International Development

Remember

  • Private Sector Contributions To International Development
  • Session Objectives
  • Map of the morning How we will try to meet the objectives
  • Slide Number 4
  • What is ODA and FDI
  • What is ODA and FDI
  • Why discuss Private Sector Contribution anyway
  • FDIBusiness Outcomes
  • Intention and Strategy Make a Difference
  • Why does the private sector care
  • Community Consultation and Value
  • Itrsquos Real Money
  • CSR is a Value Strategy
  • Social License Failures cost
  • Why is CSR happening
  • The Mining World Has Changed
  • CSR is a complicated space
  • CSR amp Social License
  • Role of business is changing (click image to play video)
  • Case Studies (of successes)
  • Slide Number 21
  • Uranium Industry in Northern Saskatchewan
  • Challenging area
  • Challenging Times
  • Cameco in 1998
  • Cameco in Northern Saskatchewan (2010)
  • So how did Cameco and the industry do it
  • Placer Dome South Africa
  • Slide Number 29
  • Background
  • Background (cont)
  • Families amp Communities must benefit from mining
  • The Care Project
  • Implications
  • Slide Number 35
  • The Initial 4-Step Plan
  • Reality was different than we expected
  • Reality was different than expected
  • Meeting the challenges
  • TheProcess
  • Some results
  • Chicken raising business
  • Furniture making
  • Unique training programs
  • Rice farming in Mozambique
  • Spaza (convenience) shop
  • And the business value ishellip
  • Slide Number 48
  • What was in it for Placer Dome
  • And then there is HIVAIDS
  • HIVAIDS Facts (in 2000)
  • HIVAIDS Impact
  • HIVAIDS and Gold Mining
  • HIVAIDS Programming
  • Minesite Program
  • Minesite Program
  • Current Community Program
  • Community Mobile Clinic
  • And when HIV prevention doesnrsquot work
  • Industry Home Based Care
  • Home Based Care
  • INDUSTRY HOME BASED CARE RESULTS(Year One)
  • Overview of Placer Dome AIDS Programming
  • Slide Number 64
  • HIVAIDS and Rural Areas
  • HIVAIDS and Rural Areas
  • Reputational Results for Placer Dome
  • Where to next
  • Planned Program
  • Care Positive Summary
  • Andhellip
  • MDG Impacts of Placer Dome in South Africa
  • One thing leads to another
  • PNG HIVAIDS
  • PNG Outcomes (or outputs ndash Irsquom never sure)
  • Slide Number 76
  • PNG AIDS mission to South Africa
  • MDG Impacts of PNG HIVAIDS work
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • MDG Impacts of Eldorado Gold
  • Underwater Logging in Ghana
  • Private Sector and International Development
  • Group Exercise
  • Slide Number 87
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • What we covered
  • Session Objectives
  • Session Objectives
  • Remember
Page 37: Private Sector Contributions To International Development – McGill Executive Education Program Lecture

waynewaynedunncom Slide 37

Reality was different than we expected Retrenchees and their

Unions were still angry over the contested retrenchment Retrencheesrsquo homes were

difficult to locate and registration was often problematic

Consultations with retrenchees

Walking to a remote retrenchee homestead in Lesotho

Slide 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 HIVAIDS Fieldworker training programs Retrenchee education levels Centralized delivery didnrsquot work Project was under-financed We couldnrsquot do it in two years Etc

Slide 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

waynewaynedunncom Slide 40

The Process

Business Operation1 Ongoing availability of Technical Assistance and Business Counselling2 Ongoing faclitiation of skills training needs (ie business agriculture vocational etc)

Decision on Economic Option

Employment StreamEnterprise Stream

Evaluation of Micro Finance Application

Retrenchee is Re-Integrated and Economically Active

PersonalEconomic Plan

Prepared ampAssessed

PersonalEmployment Plan

Prepared

Business amp Financing Plan

Prepared

Employment Planning amp Preparation1 Identification of Employment Options2 Skills Training (VocationalAgricultural etc)3 Employment Counseling Placement (Job searchResume etc)

Business Planning amp Preparation1 Business Orientation a) Introduction to Business b) SkillsProduct Training2 Develop Draft Business Plan (to be reviewed with Counselor) (plan will contain market assessment financial operational and skills upgrading plan)3 Preparation of Micro-Finance Application

Orientation and Awareness Phase1 Registration amp Homestead Visits2 District Counselling Sessions3 Open DaysCareer Fairs4 Financial Lifes Skills Training5 Feedback and Choices Session

Ongoing Processes

Follow-up sessions activities to monitor effectiveness of interventions

Communication and consultation with stakeholders Continuous improvement process (review feedback enhance programs procedures processes)

13-step process Delivered 18 times Across Five countries

Slide 41

Some results 92 of the retrenchees were located

and registered 57 of those (1250) are economically

active 65 (1556) 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 42

Chicken raising business

Slide 43

Furniture making

waynewaynedunncom Slide 44

Unique training programs

waynewaynedunncom Slide 45

Rice farming in Mozambique

Slide 46

Spaza (convenience) shop

Slide 47

And the business value ishellip HIVAIDS 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 ndash 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

waynewaynedunncom Slide 48

ldquoThe project changed the social face of the South African Mining Industryrdquo

Kgosietsile Mogaki

South African Ministry of Minerals and Energy

waynewaynedunncom Slide 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 globally

Through 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 50

And then there is HIVAIDS

RSA ACCOUNTED FOR NEARLY 1 IN 8 OF THE NEW HIV INFECTIONS THAT OCCURRED WORLD WIDE IN 2000

HIV+ PREVALENCE RATE IN WOMEN ATTENDING ANTE-NATAL CLINICS INCREASED FROM 07 IN 1990 TO 248 IN 2001

AVERAGE OF 1700 NEW INFECTIONS PER DAY

LIFE EXPECTANCY WILL DECLINE FROM 65 TO 40 BY 2011

65

40

0

10

20

30

40

50

60

70

2001 2011

Life Expectancy

waynewaynedunncom Slide 51

HIVAIDS Facts (in 2000)

ESTIMATED THAT 12 OF TOTAL RSA POPULATION AND 25 OF MINEWORKERS ARE HIV+

ALREADY 400000 PEOPLE ARE AIDS SICK AND THIS WILL INCREASE TO 14 M BY 2010

YOUNG WOMEN PARTICULARLY VULNERABLE ndash 239 AGED BETWEEN 15 ndash 49 ALREADY INFECTED AND WILL RISE TO 297 BY 2007

AIDS ORPHANS AT PRESENT AMOUNT TO 660000+ AND WILL RISE TO 18M BY 2015

ACCUMULATIVE AIDS DEATHS WILL RISE TO 9M BY 2015

Slide 52

HIVAIDS Impact REDUCED ECONOMIC GROWTH RATE ndash 2010 GDP 20 below a non AIDS

scenario REDUCED POPULATION ndash RSA population 10M smaller than non AIDS scenario SKYROCKETING DEMANDS ON PUBLIC HEALTH SYSTEM - RADICALLY CHANGED PRIVATE SPENDING PATTERNS ndash to healthcare and

funeral costs IMPACT ON SOCIO-ECONOMIC STABILITY (orphans)

HIVAIDS 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 Africa today Nobody can afford to ignore it

Slide 53

HIVAIDS and Gold Mining

$10oz impact if nothing is done (5 of production costs) ~$3oz with maximum

intervention Impact on social and political

stability

Slide 54

HIVAIDS Programming Placer Dome program ndash

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 55

Minesite Program

TRAINING AND EDUCATION

STI amp TB TREATMENT

CONDOM DISTRIBUTION

PEER EDUCATION

VOLUNTARY COUNSELING AND TESTING (VCT)

WELLNESS PROGRAM

MEDICAL REPATRIATION

waynewaynedunncom Slide 56

Minesite Program

waynewaynedunncom Slide 57

Current Community Program

AWARENESS AND EDUCATION PROGRAMS

MOBILE CLINIC

CONDOM amp FEMIDOM DISTRIBUTION

PERIODIC PRESUMPTIVE TREATMENT (PPT)

TREATMENT FOR SEXUALLY TRANSMITTED INFECTIONS ( STI)

waynewaynedunncom Slide 58

COMMUNITY PROGRAM

Community Mobile Clinic

waynewaynedunncom Slide 59

And when HIV prevention doesnrsquot 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 60

Industry Home Based Care

TEBA INFRA-STRUCTURE

TRAINING OF CARE GIVERS

SUPPORT STRUCTURE ndash QUALIFIED STAFF

MONTHLY MEDICATION

WORK WITH OTHER STAKEHOLDERS (EG TRADITIONAL HEALERS)

WORLD BANK DEVELOPMENT INNOVATION AWARD

waynewaynedunncom Slide 61

Home Based Care

Slide 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

waynewaynedunncom Slide 63

Overview of Placer Dome AIDS Programming SOUTH DEEP Sustainable Development Department

bullVoluntary Counseling and testing HIV Negative bullContinue working

On Mine Program Community Program

Modified work program Farm bullAgricultural work Environmental

Medical repatriation

Home Based Care

Benefits Care Positive

HBC EC OPP

Back to work or Re skilled

Wellness Program

waynewaynedunncom Slide 64

But what happens to children and families when the breadwinner canrsquot

work

Slide 65

HIVAIDS and Rural Areas HIVAIDS 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

Slide 66

HIVAIDS 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

waynewaynedunncom

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 CSREthical

Project Award (2004) Numerous other awards Stanford Case Study

waynewaynedunncom Slide 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 69

Planned Program

Care Positive Integrate the Home Based Care

project with the Care process and launch as a fee for service based program to address the social and 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

Care Process

+

Home Based Care

=

Care Positive

waynewaynedunncom Slide 70

Care Positive Summary

waynewaynedunncom

Andhellip 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 $100000 and considerable reputational capital into them Industry went forward with modified HIVAIDS

programming but huge developmental impacts were lost

waynewaynedunncom Slide 72

MDG Impacts of Placer Dome in South Africa

1 Poverty and hunger 2 Some impact on primary education (School

feeding program) 3 Promote gender equality and empower women 4 Reduce child mortality 5 Improve maternal health 6 Combat HIVAIDS malaria and other diseass 7 Ensure environmental sustainability 8 Develop a global partnership for development

(Placer Dome CIDA Civil Society NGOs)

waynewaynedunncom

One thing leads to another

World Bank observed how Placer Domersquos leadership on HIVAIDS 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

waynewaynedunncom

PNG HIVAIDS Scoping mission to

determine what might be done and how Enthusiastic interest from

industry government multi-laterals (WHO UNAIDS World Banketc) ODA (AusAID) CIDA partnered with Place Dome to develop an

HIVAIDS strategy for PNG that integrated industry public sector civil society and international community

waynewaynedunncom

PNG Outcomes (or outputs ndash Irsquom never sure) Partnership with Mining

Industry Civil Society WHO UNAIDS UNDP World Bank PNG AIDS AusAID Oil Palm Industry etc National workshop on

HIVAIDS and publicprivate partnerships SouthSouth Collaboration

Industry government civil society international community study trip to South Africa

waynewaynedunncom

waynewaynedunncom

PNG AIDS mission to South Africa

waynewaynedunncom Slide 78

MDG Impacts of PNG HIVAIDS work

1 Poverty and hunger (nutritional supplements) 2 Some impact on primary education (peripheral) 3 Promote gender equality and empower women 4 Reduce child mortality 5 Improve maternal health 6 Combat HIVAIDS malaria and other diseass 7 Ensure environmental sustainability 8 Develop a global partnership for development

(Placer Dome CIDA Civil Society NGOs)

waynewaynedunncom

Eldorado Gold in Turkey

Major gold find in WestCentral Turkey No successful

mining project launched in decades Eurogold project

built launched and halted by community action in late 1990s ndash still mothballed

UsakKislidag Minesite

Eurogold site

waynewaynedunncom

Eldorado Gold in Turkey

Isolated rural area Nearly half of nearby

communities opposed to mine development Agriculture primary

economic activity in rural communities ndash smallmicro family farms

waynewaynedunncom

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

waynewaynedunncom

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 $075 to $1325 Opened second mine in Turkey

bull Able to deal with controversial watershed issues after relationship success in Usak

waynewaynedunncom Slide 83

MDG Impacts of Eldorado Gold

1 Poverty and hunger (minimal) 2 Some impact on primary education (peripheral) 3 Promote gender equality and empower women 4 Reduce child mortality 5 Improve maternal health 6 Combat HIVAIDS malaria and other diseass 7 Ensure environmental sustainability 8 Develop a global partnership for development

(Placer Dome CIDA Civil Society NGOs)

waynewaynedunncom

Underwater Logging in Ghana

waynewaynedunncom

Private Sector and International Development

Private sector especially resource extraction has a very mixed record bull Some horrendous disasters (Nigeria Warao Peoples in

Venezuela etc) bull Some great successes (Placer Dome Care project

mining and HIVAIDS 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

waynewaynedunncom

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

interestsobjectives overlap

waynewaynedunncom

SDCSR Implementation Challenges

more than a warm fuzzy issue Spending isnrsquot the answer

Plan

Framework

System

Results

Solving social problems Objectives

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Beyond Beads and Trinkets ndash BC Mining Review

A lsquohow torsquo article on mining and CSR

Wayne Dunn

BP Venezuela Indigenous Relations ndash Meeting the Challenge Responsibly and Sustainably

Situational assessment and strategic plan for BP Venezuela Authorized for release by BP

Wayne Dunn

Cameco Community Relations Report

Situational assessment and management strategy Authorized for release by Cameco

Wayne Dunn

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author Beyond Beads lsquon Trinkets A systematic approach to managing community relations

A conference paper describing a systematic approach to community relations management helping companies to methodically develop mutually beneficial relationships with local communities and interests (this is one of the earliest papers on this subject ndash written in 1998)

Wayne Dunn

The costs of conflict with local communities in the extractive industry

Analysis of the cost of community conflicts in the Extractive Sector

Rachel Davis and Daniel M Franks

Creating Shared Value

Harvard Business Review interview with Michael Porter

Video

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Social License Its all about value

Discussion on Social License and shareholder Value

Wayne Dunn

Its about Development Commentary on the CIDAMining Company issue

Wayne Dunn

Integrating corporate strategy and social responsibilitymdashmarket returns from stakeholder engagement

Discussion and analysis on market returns on stakeholder engagement

Witold J Henisz Sinziana Dorobantu and Lite J Narty

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

McGill Reporter ndash Four Burning Questions Wayne Dunn on CSR

Discussion on CSR Wayne Dunn

Miningrsquos contribution to sustainable development ndashan overview

Discussion paper prepared by the International Council on Mining and Metals

Millennium Development Goals

United Nations

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Mining and Agriculture Development

A short lsquohow torsquo guide for mining projects to engage with the local agriculture sector

Al Hingston

PDSA Social Value Brochure

Brochure on social value created by Placer Dome South Africa

Placer Dome

The Value of Social License

Opinion piece published in Northern Miner

Wayne Dunn

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Golden Opportunity When a Canadian multinational laid off hundreds of gold miners in South Africa it went many extra miles to help them get back on their feet

Stanford Business School Case Study on Placer Dome in South Africa

Wayne Dunn

The Changing Resource Development Paradigm Maximizing Sustainable Local Benefits from Resource Development

Strategic thought piece prepared for the government of British Columbia Canada

Wayne Dunn

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

The Disappearing Barriers Between Business And Non-profits Are Driving Innovation

Discussion paper

Katherine Pikus

When Condoms are not enough

World Bank staff magazine article on Placer Dome and South African mining industryrsquos work with HIVAIDS

Craig Andrews

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

MINING AND LOCAL ECONOMIC DEVELOPMENT IN PAPUA NEW GUINEA Preliminary Research on a Potential Pilot Project in Porgera and Lihir

Strategic research and action plan on mining and local economic development in Papua New Guinea prepared for the World Bank

Wayne Dunn

waynewaynedunncom

What we covered

We 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) Publicprivatecivil society collaboration ndash case study

and discussion (CIDA and Mining Companies) Open discussion on topics of interest (time permitting)

waynewaynedunncom

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 howwhy 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

waynewaynedunncom

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 howwhy 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

waynewaynedunncom

Alignment around Shared Value For shareholders For Communities For People For Governments

Private Sector Contributions To International Development

Remember

  • Private Sector Contributions To International Development
  • Session Objectives
  • Map of the morning How we will try to meet the objectives
  • Slide Number 4
  • What is ODA and FDI
  • What is ODA and FDI
  • Why discuss Private Sector Contribution anyway
  • FDIBusiness Outcomes
  • Intention and Strategy Make a Difference
  • Why does the private sector care
  • Community Consultation and Value
  • Itrsquos Real Money
  • CSR is a Value Strategy
  • Social License Failures cost
  • Why is CSR happening
  • The Mining World Has Changed
  • CSR is a complicated space
  • CSR amp Social License
  • Role of business is changing (click image to play video)
  • Case Studies (of successes)
  • Slide Number 21
  • Uranium Industry in Northern Saskatchewan
  • Challenging area
  • Challenging Times
  • Cameco in 1998
  • Cameco in Northern Saskatchewan (2010)
  • So how did Cameco and the industry do it
  • Placer Dome South Africa
  • Slide Number 29
  • Background
  • Background (cont)
  • Families amp Communities must benefit from mining
  • The Care Project
  • Implications
  • Slide Number 35
  • The Initial 4-Step Plan
  • Reality was different than we expected
  • Reality was different than expected
  • Meeting the challenges
  • TheProcess
  • Some results
  • Chicken raising business
  • Furniture making
  • Unique training programs
  • Rice farming in Mozambique
  • Spaza (convenience) shop
  • And the business value ishellip
  • Slide Number 48
  • What was in it for Placer Dome
  • And then there is HIVAIDS
  • HIVAIDS Facts (in 2000)
  • HIVAIDS Impact
  • HIVAIDS and Gold Mining
  • HIVAIDS Programming
  • Minesite Program
  • Minesite Program
  • Current Community Program
  • Community Mobile Clinic
  • And when HIV prevention doesnrsquot work
  • Industry Home Based Care
  • Home Based Care
  • INDUSTRY HOME BASED CARE RESULTS(Year One)
  • Overview of Placer Dome AIDS Programming
  • Slide Number 64
  • HIVAIDS and Rural Areas
  • HIVAIDS and Rural Areas
  • Reputational Results for Placer Dome
  • Where to next
  • Planned Program
  • Care Positive Summary
  • Andhellip
  • MDG Impacts of Placer Dome in South Africa
  • One thing leads to another
  • PNG HIVAIDS
  • PNG Outcomes (or outputs ndash Irsquom never sure)
  • Slide Number 76
  • PNG AIDS mission to South Africa
  • MDG Impacts of PNG HIVAIDS work
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • MDG Impacts of Eldorado Gold
  • Underwater Logging in Ghana
  • Private Sector and International Development
  • Group Exercise
  • Slide Number 87
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • What we covered
  • Session Objectives
  • Session Objectives
  • Remember
Page 38: Private Sector Contributions To International Development – McGill Executive Education Program Lecture

Slide 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 HIVAIDS Fieldworker training programs Retrenchee education levels Centralized delivery didnrsquot work Project was under-financed We couldnrsquot do it in two years Etc

Slide 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

waynewaynedunncom Slide 40

The Process

Business Operation1 Ongoing availability of Technical Assistance and Business Counselling2 Ongoing faclitiation of skills training needs (ie business agriculture vocational etc)

Decision on Economic Option

Employment StreamEnterprise Stream

Evaluation of Micro Finance Application

Retrenchee is Re-Integrated and Economically Active

PersonalEconomic Plan

Prepared ampAssessed

PersonalEmployment Plan

Prepared

Business amp Financing Plan

Prepared

Employment Planning amp Preparation1 Identification of Employment Options2 Skills Training (VocationalAgricultural etc)3 Employment Counseling Placement (Job searchResume etc)

Business Planning amp Preparation1 Business Orientation a) Introduction to Business b) SkillsProduct Training2 Develop Draft Business Plan (to be reviewed with Counselor) (plan will contain market assessment financial operational and skills upgrading plan)3 Preparation of Micro-Finance Application

Orientation and Awareness Phase1 Registration amp Homestead Visits2 District Counselling Sessions3 Open DaysCareer Fairs4 Financial Lifes Skills Training5 Feedback and Choices Session

Ongoing Processes

Follow-up sessions activities to monitor effectiveness of interventions

Communication and consultation with stakeholders Continuous improvement process (review feedback enhance programs procedures processes)

13-step process Delivered 18 times Across Five countries

Slide 41

Some results 92 of the retrenchees were located

and registered 57 of those (1250) are economically

active 65 (1556) 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 42

Chicken raising business

Slide 43

Furniture making

waynewaynedunncom Slide 44

Unique training programs

waynewaynedunncom Slide 45

Rice farming in Mozambique

Slide 46

Spaza (convenience) shop

Slide 47

And the business value ishellip HIVAIDS 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 ndash 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

waynewaynedunncom Slide 48

ldquoThe project changed the social face of the South African Mining Industryrdquo

Kgosietsile Mogaki

South African Ministry of Minerals and Energy

waynewaynedunncom Slide 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 globally

Through 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 50

And then there is HIVAIDS

RSA ACCOUNTED FOR NEARLY 1 IN 8 OF THE NEW HIV INFECTIONS THAT OCCURRED WORLD WIDE IN 2000

HIV+ PREVALENCE RATE IN WOMEN ATTENDING ANTE-NATAL CLINICS INCREASED FROM 07 IN 1990 TO 248 IN 2001

AVERAGE OF 1700 NEW INFECTIONS PER DAY

LIFE EXPECTANCY WILL DECLINE FROM 65 TO 40 BY 2011

65

40

0

10

20

30

40

50

60

70

2001 2011

Life Expectancy

waynewaynedunncom Slide 51

HIVAIDS Facts (in 2000)

ESTIMATED THAT 12 OF TOTAL RSA POPULATION AND 25 OF MINEWORKERS ARE HIV+

ALREADY 400000 PEOPLE ARE AIDS SICK AND THIS WILL INCREASE TO 14 M BY 2010

YOUNG WOMEN PARTICULARLY VULNERABLE ndash 239 AGED BETWEEN 15 ndash 49 ALREADY INFECTED AND WILL RISE TO 297 BY 2007

AIDS ORPHANS AT PRESENT AMOUNT TO 660000+ AND WILL RISE TO 18M BY 2015

ACCUMULATIVE AIDS DEATHS WILL RISE TO 9M BY 2015

Slide 52

HIVAIDS Impact REDUCED ECONOMIC GROWTH RATE ndash 2010 GDP 20 below a non AIDS

scenario REDUCED POPULATION ndash RSA population 10M smaller than non AIDS scenario SKYROCKETING DEMANDS ON PUBLIC HEALTH SYSTEM - RADICALLY CHANGED PRIVATE SPENDING PATTERNS ndash to healthcare and

funeral costs IMPACT ON SOCIO-ECONOMIC STABILITY (orphans)

HIVAIDS 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 Africa today Nobody can afford to ignore it

Slide 53

HIVAIDS and Gold Mining

$10oz impact if nothing is done (5 of production costs) ~$3oz with maximum

intervention Impact on social and political

stability

Slide 54

HIVAIDS Programming Placer Dome program ndash

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 55

Minesite Program

TRAINING AND EDUCATION

STI amp TB TREATMENT

CONDOM DISTRIBUTION

PEER EDUCATION

VOLUNTARY COUNSELING AND TESTING (VCT)

WELLNESS PROGRAM

MEDICAL REPATRIATION

waynewaynedunncom Slide 56

Minesite Program

waynewaynedunncom Slide 57

Current Community Program

AWARENESS AND EDUCATION PROGRAMS

MOBILE CLINIC

CONDOM amp FEMIDOM DISTRIBUTION

PERIODIC PRESUMPTIVE TREATMENT (PPT)

TREATMENT FOR SEXUALLY TRANSMITTED INFECTIONS ( STI)

waynewaynedunncom Slide 58

COMMUNITY PROGRAM

Community Mobile Clinic

waynewaynedunncom Slide 59

And when HIV prevention doesnrsquot 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 60

Industry Home Based Care

TEBA INFRA-STRUCTURE

TRAINING OF CARE GIVERS

SUPPORT STRUCTURE ndash QUALIFIED STAFF

MONTHLY MEDICATION

WORK WITH OTHER STAKEHOLDERS (EG TRADITIONAL HEALERS)

WORLD BANK DEVELOPMENT INNOVATION AWARD

waynewaynedunncom Slide 61

Home Based Care

Slide 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

waynewaynedunncom Slide 63

Overview of Placer Dome AIDS Programming SOUTH DEEP Sustainable Development Department

bullVoluntary Counseling and testing HIV Negative bullContinue working

On Mine Program Community Program

Modified work program Farm bullAgricultural work Environmental

Medical repatriation

Home Based Care

Benefits Care Positive

HBC EC OPP

Back to work or Re skilled

Wellness Program

waynewaynedunncom Slide 64

But what happens to children and families when the breadwinner canrsquot

work

Slide 65

HIVAIDS and Rural Areas HIVAIDS 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

Slide 66

HIVAIDS 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

waynewaynedunncom

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 CSREthical

Project Award (2004) Numerous other awards Stanford Case Study

waynewaynedunncom Slide 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 69

Planned Program

Care Positive Integrate the Home Based Care

project with the Care process and launch as a fee for service based program to address the social and 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

Care Process

+

Home Based Care

=

Care Positive

waynewaynedunncom Slide 70

Care Positive Summary

waynewaynedunncom

Andhellip 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 $100000 and considerable reputational capital into them Industry went forward with modified HIVAIDS

programming but huge developmental impacts were lost

waynewaynedunncom Slide 72

MDG Impacts of Placer Dome in South Africa

1 Poverty and hunger 2 Some impact on primary education (School

feeding program) 3 Promote gender equality and empower women 4 Reduce child mortality 5 Improve maternal health 6 Combat HIVAIDS malaria and other diseass 7 Ensure environmental sustainability 8 Develop a global partnership for development

(Placer Dome CIDA Civil Society NGOs)

waynewaynedunncom

One thing leads to another

World Bank observed how Placer Domersquos leadership on HIVAIDS 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

waynewaynedunncom

PNG HIVAIDS Scoping mission to

determine what might be done and how Enthusiastic interest from

industry government multi-laterals (WHO UNAIDS World Banketc) ODA (AusAID) CIDA partnered with Place Dome to develop an

HIVAIDS strategy for PNG that integrated industry public sector civil society and international community

waynewaynedunncom

PNG Outcomes (or outputs ndash Irsquom never sure) Partnership with Mining

Industry Civil Society WHO UNAIDS UNDP World Bank PNG AIDS AusAID Oil Palm Industry etc National workshop on

HIVAIDS and publicprivate partnerships SouthSouth Collaboration

Industry government civil society international community study trip to South Africa

waynewaynedunncom

waynewaynedunncom

PNG AIDS mission to South Africa

waynewaynedunncom Slide 78

MDG Impacts of PNG HIVAIDS work

1 Poverty and hunger (nutritional supplements) 2 Some impact on primary education (peripheral) 3 Promote gender equality and empower women 4 Reduce child mortality 5 Improve maternal health 6 Combat HIVAIDS malaria and other diseass 7 Ensure environmental sustainability 8 Develop a global partnership for development

(Placer Dome CIDA Civil Society NGOs)

waynewaynedunncom

Eldorado Gold in Turkey

Major gold find in WestCentral Turkey No successful

mining project launched in decades Eurogold project

built launched and halted by community action in late 1990s ndash still mothballed

UsakKislidag Minesite

Eurogold site

waynewaynedunncom

Eldorado Gold in Turkey

Isolated rural area Nearly half of nearby

communities opposed to mine development Agriculture primary

economic activity in rural communities ndash smallmicro family farms

waynewaynedunncom

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

waynewaynedunncom

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 $075 to $1325 Opened second mine in Turkey

bull Able to deal with controversial watershed issues after relationship success in Usak

waynewaynedunncom Slide 83

MDG Impacts of Eldorado Gold

1 Poverty and hunger (minimal) 2 Some impact on primary education (peripheral) 3 Promote gender equality and empower women 4 Reduce child mortality 5 Improve maternal health 6 Combat HIVAIDS malaria and other diseass 7 Ensure environmental sustainability 8 Develop a global partnership for development

(Placer Dome CIDA Civil Society NGOs)

waynewaynedunncom

Underwater Logging in Ghana

waynewaynedunncom

Private Sector and International Development

Private sector especially resource extraction has a very mixed record bull Some horrendous disasters (Nigeria Warao Peoples in

Venezuela etc) bull Some great successes (Placer Dome Care project

mining and HIVAIDS 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

waynewaynedunncom

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

interestsobjectives overlap

waynewaynedunncom

SDCSR Implementation Challenges

more than a warm fuzzy issue Spending isnrsquot the answer

Plan

Framework

System

Results

Solving social problems Objectives

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Beyond Beads and Trinkets ndash BC Mining Review

A lsquohow torsquo article on mining and CSR

Wayne Dunn

BP Venezuela Indigenous Relations ndash Meeting the Challenge Responsibly and Sustainably

Situational assessment and strategic plan for BP Venezuela Authorized for release by BP

Wayne Dunn

Cameco Community Relations Report

Situational assessment and management strategy Authorized for release by Cameco

Wayne Dunn

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author Beyond Beads lsquon Trinkets A systematic approach to managing community relations

A conference paper describing a systematic approach to community relations management helping companies to methodically develop mutually beneficial relationships with local communities and interests (this is one of the earliest papers on this subject ndash written in 1998)

Wayne Dunn

The costs of conflict with local communities in the extractive industry

Analysis of the cost of community conflicts in the Extractive Sector

Rachel Davis and Daniel M Franks

Creating Shared Value

Harvard Business Review interview with Michael Porter

Video

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Social License Its all about value

Discussion on Social License and shareholder Value

Wayne Dunn

Its about Development Commentary on the CIDAMining Company issue

Wayne Dunn

Integrating corporate strategy and social responsibilitymdashmarket returns from stakeholder engagement

Discussion and analysis on market returns on stakeholder engagement

Witold J Henisz Sinziana Dorobantu and Lite J Narty

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

McGill Reporter ndash Four Burning Questions Wayne Dunn on CSR

Discussion on CSR Wayne Dunn

Miningrsquos contribution to sustainable development ndashan overview

Discussion paper prepared by the International Council on Mining and Metals

Millennium Development Goals

United Nations

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Mining and Agriculture Development

A short lsquohow torsquo guide for mining projects to engage with the local agriculture sector

Al Hingston

PDSA Social Value Brochure

Brochure on social value created by Placer Dome South Africa

Placer Dome

The Value of Social License

Opinion piece published in Northern Miner

Wayne Dunn

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Golden Opportunity When a Canadian multinational laid off hundreds of gold miners in South Africa it went many extra miles to help them get back on their feet

Stanford Business School Case Study on Placer Dome in South Africa

Wayne Dunn

The Changing Resource Development Paradigm Maximizing Sustainable Local Benefits from Resource Development

Strategic thought piece prepared for the government of British Columbia Canada

Wayne Dunn

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

The Disappearing Barriers Between Business And Non-profits Are Driving Innovation

Discussion paper

Katherine Pikus

When Condoms are not enough

World Bank staff magazine article on Placer Dome and South African mining industryrsquos work with HIVAIDS

Craig Andrews

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

MINING AND LOCAL ECONOMIC DEVELOPMENT IN PAPUA NEW GUINEA Preliminary Research on a Potential Pilot Project in Porgera and Lihir

Strategic research and action plan on mining and local economic development in Papua New Guinea prepared for the World Bank

Wayne Dunn

waynewaynedunncom

What we covered

We 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) Publicprivatecivil society collaboration ndash case study

and discussion (CIDA and Mining Companies) Open discussion on topics of interest (time permitting)

waynewaynedunncom

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 howwhy 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

waynewaynedunncom

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 howwhy 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

waynewaynedunncom

Alignment around Shared Value For shareholders For Communities For People For Governments

Private Sector Contributions To International Development

Remember

  • Private Sector Contributions To International Development
  • Session Objectives
  • Map of the morning How we will try to meet the objectives
  • Slide Number 4
  • What is ODA and FDI
  • What is ODA and FDI
  • Why discuss Private Sector Contribution anyway
  • FDIBusiness Outcomes
  • Intention and Strategy Make a Difference
  • Why does the private sector care
  • Community Consultation and Value
  • Itrsquos Real Money
  • CSR is a Value Strategy
  • Social License Failures cost
  • Why is CSR happening
  • The Mining World Has Changed
  • CSR is a complicated space
  • CSR amp Social License
  • Role of business is changing (click image to play video)
  • Case Studies (of successes)
  • Slide Number 21
  • Uranium Industry in Northern Saskatchewan
  • Challenging area
  • Challenging Times
  • Cameco in 1998
  • Cameco in Northern Saskatchewan (2010)
  • So how did Cameco and the industry do it
  • Placer Dome South Africa
  • Slide Number 29
  • Background
  • Background (cont)
  • Families amp Communities must benefit from mining
  • The Care Project
  • Implications
  • Slide Number 35
  • The Initial 4-Step Plan
  • Reality was different than we expected
  • Reality was different than expected
  • Meeting the challenges
  • TheProcess
  • Some results
  • Chicken raising business
  • Furniture making
  • Unique training programs
  • Rice farming in Mozambique
  • Spaza (convenience) shop
  • And the business value ishellip
  • Slide Number 48
  • What was in it for Placer Dome
  • And then there is HIVAIDS
  • HIVAIDS Facts (in 2000)
  • HIVAIDS Impact
  • HIVAIDS and Gold Mining
  • HIVAIDS Programming
  • Minesite Program
  • Minesite Program
  • Current Community Program
  • Community Mobile Clinic
  • And when HIV prevention doesnrsquot work
  • Industry Home Based Care
  • Home Based Care
  • INDUSTRY HOME BASED CARE RESULTS(Year One)
  • Overview of Placer Dome AIDS Programming
  • Slide Number 64
  • HIVAIDS and Rural Areas
  • HIVAIDS and Rural Areas
  • Reputational Results for Placer Dome
  • Where to next
  • Planned Program
  • Care Positive Summary
  • Andhellip
  • MDG Impacts of Placer Dome in South Africa
  • One thing leads to another
  • PNG HIVAIDS
  • PNG Outcomes (or outputs ndash Irsquom never sure)
  • Slide Number 76
  • PNG AIDS mission to South Africa
  • MDG Impacts of PNG HIVAIDS work
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • MDG Impacts of Eldorado Gold
  • Underwater Logging in Ghana
  • Private Sector and International Development
  • Group Exercise
  • Slide Number 87
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • What we covered
  • Session Objectives
  • Session Objectives
  • Remember
Page 39: Private Sector Contributions To International Development – McGill Executive Education Program Lecture

Slide 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

waynewaynedunncom Slide 40

The Process

Business Operation1 Ongoing availability of Technical Assistance and Business Counselling2 Ongoing faclitiation of skills training needs (ie business agriculture vocational etc)

Decision on Economic Option

Employment StreamEnterprise Stream

Evaluation of Micro Finance Application

Retrenchee is Re-Integrated and Economically Active

PersonalEconomic Plan

Prepared ampAssessed

PersonalEmployment Plan

Prepared

Business amp Financing Plan

Prepared

Employment Planning amp Preparation1 Identification of Employment Options2 Skills Training (VocationalAgricultural etc)3 Employment Counseling Placement (Job searchResume etc)

Business Planning amp Preparation1 Business Orientation a) Introduction to Business b) SkillsProduct Training2 Develop Draft Business Plan (to be reviewed with Counselor) (plan will contain market assessment financial operational and skills upgrading plan)3 Preparation of Micro-Finance Application

Orientation and Awareness Phase1 Registration amp Homestead Visits2 District Counselling Sessions3 Open DaysCareer Fairs4 Financial Lifes Skills Training5 Feedback and Choices Session

Ongoing Processes

Follow-up sessions activities to monitor effectiveness of interventions

Communication and consultation with stakeholders Continuous improvement process (review feedback enhance programs procedures processes)

13-step process Delivered 18 times Across Five countries

Slide 41

Some results 92 of the retrenchees were located

and registered 57 of those (1250) are economically

active 65 (1556) 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 42

Chicken raising business

Slide 43

Furniture making

waynewaynedunncom Slide 44

Unique training programs

waynewaynedunncom Slide 45

Rice farming in Mozambique

Slide 46

Spaza (convenience) shop

Slide 47

And the business value ishellip HIVAIDS 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 ndash 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

waynewaynedunncom Slide 48

ldquoThe project changed the social face of the South African Mining Industryrdquo

Kgosietsile Mogaki

South African Ministry of Minerals and Energy

waynewaynedunncom Slide 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 globally

Through 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 50

And then there is HIVAIDS

RSA ACCOUNTED FOR NEARLY 1 IN 8 OF THE NEW HIV INFECTIONS THAT OCCURRED WORLD WIDE IN 2000

HIV+ PREVALENCE RATE IN WOMEN ATTENDING ANTE-NATAL CLINICS INCREASED FROM 07 IN 1990 TO 248 IN 2001

AVERAGE OF 1700 NEW INFECTIONS PER DAY

LIFE EXPECTANCY WILL DECLINE FROM 65 TO 40 BY 2011

65

40

0

10

20

30

40

50

60

70

2001 2011

Life Expectancy

waynewaynedunncom Slide 51

HIVAIDS Facts (in 2000)

ESTIMATED THAT 12 OF TOTAL RSA POPULATION AND 25 OF MINEWORKERS ARE HIV+

ALREADY 400000 PEOPLE ARE AIDS SICK AND THIS WILL INCREASE TO 14 M BY 2010

YOUNG WOMEN PARTICULARLY VULNERABLE ndash 239 AGED BETWEEN 15 ndash 49 ALREADY INFECTED AND WILL RISE TO 297 BY 2007

AIDS ORPHANS AT PRESENT AMOUNT TO 660000+ AND WILL RISE TO 18M BY 2015

ACCUMULATIVE AIDS DEATHS WILL RISE TO 9M BY 2015

Slide 52

HIVAIDS Impact REDUCED ECONOMIC GROWTH RATE ndash 2010 GDP 20 below a non AIDS

scenario REDUCED POPULATION ndash RSA population 10M smaller than non AIDS scenario SKYROCKETING DEMANDS ON PUBLIC HEALTH SYSTEM - RADICALLY CHANGED PRIVATE SPENDING PATTERNS ndash to healthcare and

funeral costs IMPACT ON SOCIO-ECONOMIC STABILITY (orphans)

HIVAIDS 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 Africa today Nobody can afford to ignore it

Slide 53

HIVAIDS and Gold Mining

$10oz impact if nothing is done (5 of production costs) ~$3oz with maximum

intervention Impact on social and political

stability

Slide 54

HIVAIDS Programming Placer Dome program ndash

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 55

Minesite Program

TRAINING AND EDUCATION

STI amp TB TREATMENT

CONDOM DISTRIBUTION

PEER EDUCATION

VOLUNTARY COUNSELING AND TESTING (VCT)

WELLNESS PROGRAM

MEDICAL REPATRIATION

waynewaynedunncom Slide 56

Minesite Program

waynewaynedunncom Slide 57

Current Community Program

AWARENESS AND EDUCATION PROGRAMS

MOBILE CLINIC

CONDOM amp FEMIDOM DISTRIBUTION

PERIODIC PRESUMPTIVE TREATMENT (PPT)

TREATMENT FOR SEXUALLY TRANSMITTED INFECTIONS ( STI)

waynewaynedunncom Slide 58

COMMUNITY PROGRAM

Community Mobile Clinic

waynewaynedunncom Slide 59

And when HIV prevention doesnrsquot 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 60

Industry Home Based Care

TEBA INFRA-STRUCTURE

TRAINING OF CARE GIVERS

SUPPORT STRUCTURE ndash QUALIFIED STAFF

MONTHLY MEDICATION

WORK WITH OTHER STAKEHOLDERS (EG TRADITIONAL HEALERS)

WORLD BANK DEVELOPMENT INNOVATION AWARD

waynewaynedunncom Slide 61

Home Based Care

Slide 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

waynewaynedunncom Slide 63

Overview of Placer Dome AIDS Programming SOUTH DEEP Sustainable Development Department

bullVoluntary Counseling and testing HIV Negative bullContinue working

On Mine Program Community Program

Modified work program Farm bullAgricultural work Environmental

Medical repatriation

Home Based Care

Benefits Care Positive

HBC EC OPP

Back to work or Re skilled

Wellness Program

waynewaynedunncom Slide 64

But what happens to children and families when the breadwinner canrsquot

work

Slide 65

HIVAIDS and Rural Areas HIVAIDS 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

Slide 66

HIVAIDS 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

waynewaynedunncom

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 CSREthical

Project Award (2004) Numerous other awards Stanford Case Study

waynewaynedunncom Slide 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 69

Planned Program

Care Positive Integrate the Home Based Care

project with the Care process and launch as a fee for service based program to address the social and 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

Care Process

+

Home Based Care

=

Care Positive

waynewaynedunncom Slide 70

Care Positive Summary

waynewaynedunncom

Andhellip 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 $100000 and considerable reputational capital into them Industry went forward with modified HIVAIDS

programming but huge developmental impacts were lost

waynewaynedunncom Slide 72

MDG Impacts of Placer Dome in South Africa

1 Poverty and hunger 2 Some impact on primary education (School

feeding program) 3 Promote gender equality and empower women 4 Reduce child mortality 5 Improve maternal health 6 Combat HIVAIDS malaria and other diseass 7 Ensure environmental sustainability 8 Develop a global partnership for development

(Placer Dome CIDA Civil Society NGOs)

waynewaynedunncom

One thing leads to another

World Bank observed how Placer Domersquos leadership on HIVAIDS 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

waynewaynedunncom

PNG HIVAIDS Scoping mission to

determine what might be done and how Enthusiastic interest from

industry government multi-laterals (WHO UNAIDS World Banketc) ODA (AusAID) CIDA partnered with Place Dome to develop an

HIVAIDS strategy for PNG that integrated industry public sector civil society and international community

waynewaynedunncom

PNG Outcomes (or outputs ndash Irsquom never sure) Partnership with Mining

Industry Civil Society WHO UNAIDS UNDP World Bank PNG AIDS AusAID Oil Palm Industry etc National workshop on

HIVAIDS and publicprivate partnerships SouthSouth Collaboration

Industry government civil society international community study trip to South Africa

waynewaynedunncom

waynewaynedunncom

PNG AIDS mission to South Africa

waynewaynedunncom Slide 78

MDG Impacts of PNG HIVAIDS work

1 Poverty and hunger (nutritional supplements) 2 Some impact on primary education (peripheral) 3 Promote gender equality and empower women 4 Reduce child mortality 5 Improve maternal health 6 Combat HIVAIDS malaria and other diseass 7 Ensure environmental sustainability 8 Develop a global partnership for development

(Placer Dome CIDA Civil Society NGOs)

waynewaynedunncom

Eldorado Gold in Turkey

Major gold find in WestCentral Turkey No successful

mining project launched in decades Eurogold project

built launched and halted by community action in late 1990s ndash still mothballed

UsakKislidag Minesite

Eurogold site

waynewaynedunncom

Eldorado Gold in Turkey

Isolated rural area Nearly half of nearby

communities opposed to mine development Agriculture primary

economic activity in rural communities ndash smallmicro family farms

waynewaynedunncom

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

waynewaynedunncom

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 $075 to $1325 Opened second mine in Turkey

bull Able to deal with controversial watershed issues after relationship success in Usak

waynewaynedunncom Slide 83

MDG Impacts of Eldorado Gold

1 Poverty and hunger (minimal) 2 Some impact on primary education (peripheral) 3 Promote gender equality and empower women 4 Reduce child mortality 5 Improve maternal health 6 Combat HIVAIDS malaria and other diseass 7 Ensure environmental sustainability 8 Develop a global partnership for development

(Placer Dome CIDA Civil Society NGOs)

waynewaynedunncom

Underwater Logging in Ghana

waynewaynedunncom

Private Sector and International Development

Private sector especially resource extraction has a very mixed record bull Some horrendous disasters (Nigeria Warao Peoples in

Venezuela etc) bull Some great successes (Placer Dome Care project

mining and HIVAIDS 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

waynewaynedunncom

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

interestsobjectives overlap

waynewaynedunncom

SDCSR Implementation Challenges

more than a warm fuzzy issue Spending isnrsquot the answer

Plan

Framework

System

Results

Solving social problems Objectives

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Beyond Beads and Trinkets ndash BC Mining Review

A lsquohow torsquo article on mining and CSR

Wayne Dunn

BP Venezuela Indigenous Relations ndash Meeting the Challenge Responsibly and Sustainably

Situational assessment and strategic plan for BP Venezuela Authorized for release by BP

Wayne Dunn

Cameco Community Relations Report

Situational assessment and management strategy Authorized for release by Cameco

Wayne Dunn

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author Beyond Beads lsquon Trinkets A systematic approach to managing community relations

A conference paper describing a systematic approach to community relations management helping companies to methodically develop mutually beneficial relationships with local communities and interests (this is one of the earliest papers on this subject ndash written in 1998)

Wayne Dunn

The costs of conflict with local communities in the extractive industry

Analysis of the cost of community conflicts in the Extractive Sector

Rachel Davis and Daniel M Franks

Creating Shared Value

Harvard Business Review interview with Michael Porter

Video

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Social License Its all about value

Discussion on Social License and shareholder Value

Wayne Dunn

Its about Development Commentary on the CIDAMining Company issue

Wayne Dunn

Integrating corporate strategy and social responsibilitymdashmarket returns from stakeholder engagement

Discussion and analysis on market returns on stakeholder engagement

Witold J Henisz Sinziana Dorobantu and Lite J Narty

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

McGill Reporter ndash Four Burning Questions Wayne Dunn on CSR

Discussion on CSR Wayne Dunn

Miningrsquos contribution to sustainable development ndashan overview

Discussion paper prepared by the International Council on Mining and Metals

Millennium Development Goals

United Nations

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Mining and Agriculture Development

A short lsquohow torsquo guide for mining projects to engage with the local agriculture sector

Al Hingston

PDSA Social Value Brochure

Brochure on social value created by Placer Dome South Africa

Placer Dome

The Value of Social License

Opinion piece published in Northern Miner

Wayne Dunn

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Golden Opportunity When a Canadian multinational laid off hundreds of gold miners in South Africa it went many extra miles to help them get back on their feet

Stanford Business School Case Study on Placer Dome in South Africa

Wayne Dunn

The Changing Resource Development Paradigm Maximizing Sustainable Local Benefits from Resource Development

Strategic thought piece prepared for the government of British Columbia Canada

Wayne Dunn

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

The Disappearing Barriers Between Business And Non-profits Are Driving Innovation

Discussion paper

Katherine Pikus

When Condoms are not enough

World Bank staff magazine article on Placer Dome and South African mining industryrsquos work with HIVAIDS

Craig Andrews

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

MINING AND LOCAL ECONOMIC DEVELOPMENT IN PAPUA NEW GUINEA Preliminary Research on a Potential Pilot Project in Porgera and Lihir

Strategic research and action plan on mining and local economic development in Papua New Guinea prepared for the World Bank

Wayne Dunn

waynewaynedunncom

What we covered

We 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) Publicprivatecivil society collaboration ndash case study

and discussion (CIDA and Mining Companies) Open discussion on topics of interest (time permitting)

waynewaynedunncom

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 howwhy 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

waynewaynedunncom

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 howwhy 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

waynewaynedunncom

Alignment around Shared Value For shareholders For Communities For People For Governments

Private Sector Contributions To International Development

Remember

  • Private Sector Contributions To International Development
  • Session Objectives
  • Map of the morning How we will try to meet the objectives
  • Slide Number 4
  • What is ODA and FDI
  • What is ODA and FDI
  • Why discuss Private Sector Contribution anyway
  • FDIBusiness Outcomes
  • Intention and Strategy Make a Difference
  • Why does the private sector care
  • Community Consultation and Value
  • Itrsquos Real Money
  • CSR is a Value Strategy
  • Social License Failures cost
  • Why is CSR happening
  • The Mining World Has Changed
  • CSR is a complicated space
  • CSR amp Social License
  • Role of business is changing (click image to play video)
  • Case Studies (of successes)
  • Slide Number 21
  • Uranium Industry in Northern Saskatchewan
  • Challenging area
  • Challenging Times
  • Cameco in 1998
  • Cameco in Northern Saskatchewan (2010)
  • So how did Cameco and the industry do it
  • Placer Dome South Africa
  • Slide Number 29
  • Background
  • Background (cont)
  • Families amp Communities must benefit from mining
  • The Care Project
  • Implications
  • Slide Number 35
  • The Initial 4-Step Plan
  • Reality was different than we expected
  • Reality was different than expected
  • Meeting the challenges
  • TheProcess
  • Some results
  • Chicken raising business
  • Furniture making
  • Unique training programs
  • Rice farming in Mozambique
  • Spaza (convenience) shop
  • And the business value ishellip
  • Slide Number 48
  • What was in it for Placer Dome
  • And then there is HIVAIDS
  • HIVAIDS Facts (in 2000)
  • HIVAIDS Impact
  • HIVAIDS and Gold Mining
  • HIVAIDS Programming
  • Minesite Program
  • Minesite Program
  • Current Community Program
  • Community Mobile Clinic
  • And when HIV prevention doesnrsquot work
  • Industry Home Based Care
  • Home Based Care
  • INDUSTRY HOME BASED CARE RESULTS(Year One)
  • Overview of Placer Dome AIDS Programming
  • Slide Number 64
  • HIVAIDS and Rural Areas
  • HIVAIDS and Rural Areas
  • Reputational Results for Placer Dome
  • Where to next
  • Planned Program
  • Care Positive Summary
  • Andhellip
  • MDG Impacts of Placer Dome in South Africa
  • One thing leads to another
  • PNG HIVAIDS
  • PNG Outcomes (or outputs ndash Irsquom never sure)
  • Slide Number 76
  • PNG AIDS mission to South Africa
  • MDG Impacts of PNG HIVAIDS work
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • MDG Impacts of Eldorado Gold
  • Underwater Logging in Ghana
  • Private Sector and International Development
  • Group Exercise
  • Slide Number 87
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • What we covered
  • Session Objectives
  • Session Objectives
  • Remember
Page 40: Private Sector Contributions To International Development – McGill Executive Education Program Lecture

waynewaynedunncom Slide 40

The Process

Business Operation1 Ongoing availability of Technical Assistance and Business Counselling2 Ongoing faclitiation of skills training needs (ie business agriculture vocational etc)

Decision on Economic Option

Employment StreamEnterprise Stream

Evaluation of Micro Finance Application

Retrenchee is Re-Integrated and Economically Active

PersonalEconomic Plan

Prepared ampAssessed

PersonalEmployment Plan

Prepared

Business amp Financing Plan

Prepared

Employment Planning amp Preparation1 Identification of Employment Options2 Skills Training (VocationalAgricultural etc)3 Employment Counseling Placement (Job searchResume etc)

Business Planning amp Preparation1 Business Orientation a) Introduction to Business b) SkillsProduct Training2 Develop Draft Business Plan (to be reviewed with Counselor) (plan will contain market assessment financial operational and skills upgrading plan)3 Preparation of Micro-Finance Application

Orientation and Awareness Phase1 Registration amp Homestead Visits2 District Counselling Sessions3 Open DaysCareer Fairs4 Financial Lifes Skills Training5 Feedback and Choices Session

Ongoing Processes

Follow-up sessions activities to monitor effectiveness of interventions

Communication and consultation with stakeholders Continuous improvement process (review feedback enhance programs procedures processes)

13-step process Delivered 18 times Across Five countries

Slide 41

Some results 92 of the retrenchees were located

and registered 57 of those (1250) are economically

active 65 (1556) 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 42

Chicken raising business

Slide 43

Furniture making

waynewaynedunncom Slide 44

Unique training programs

waynewaynedunncom Slide 45

Rice farming in Mozambique

Slide 46

Spaza (convenience) shop

Slide 47

And the business value ishellip HIVAIDS 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 ndash 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

waynewaynedunncom Slide 48

ldquoThe project changed the social face of the South African Mining Industryrdquo

Kgosietsile Mogaki

South African Ministry of Minerals and Energy

waynewaynedunncom Slide 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 globally

Through 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 50

And then there is HIVAIDS

RSA ACCOUNTED FOR NEARLY 1 IN 8 OF THE NEW HIV INFECTIONS THAT OCCURRED WORLD WIDE IN 2000

HIV+ PREVALENCE RATE IN WOMEN ATTENDING ANTE-NATAL CLINICS INCREASED FROM 07 IN 1990 TO 248 IN 2001

AVERAGE OF 1700 NEW INFECTIONS PER DAY

LIFE EXPECTANCY WILL DECLINE FROM 65 TO 40 BY 2011

65

40

0

10

20

30

40

50

60

70

2001 2011

Life Expectancy

waynewaynedunncom Slide 51

HIVAIDS Facts (in 2000)

ESTIMATED THAT 12 OF TOTAL RSA POPULATION AND 25 OF MINEWORKERS ARE HIV+

ALREADY 400000 PEOPLE ARE AIDS SICK AND THIS WILL INCREASE TO 14 M BY 2010

YOUNG WOMEN PARTICULARLY VULNERABLE ndash 239 AGED BETWEEN 15 ndash 49 ALREADY INFECTED AND WILL RISE TO 297 BY 2007

AIDS ORPHANS AT PRESENT AMOUNT TO 660000+ AND WILL RISE TO 18M BY 2015

ACCUMULATIVE AIDS DEATHS WILL RISE TO 9M BY 2015

Slide 52

HIVAIDS Impact REDUCED ECONOMIC GROWTH RATE ndash 2010 GDP 20 below a non AIDS

scenario REDUCED POPULATION ndash RSA population 10M smaller than non AIDS scenario SKYROCKETING DEMANDS ON PUBLIC HEALTH SYSTEM - RADICALLY CHANGED PRIVATE SPENDING PATTERNS ndash to healthcare and

funeral costs IMPACT ON SOCIO-ECONOMIC STABILITY (orphans)

HIVAIDS 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 Africa today Nobody can afford to ignore it

Slide 53

HIVAIDS and Gold Mining

$10oz impact if nothing is done (5 of production costs) ~$3oz with maximum

intervention Impact on social and political

stability

Slide 54

HIVAIDS Programming Placer Dome program ndash

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 55

Minesite Program

TRAINING AND EDUCATION

STI amp TB TREATMENT

CONDOM DISTRIBUTION

PEER EDUCATION

VOLUNTARY COUNSELING AND TESTING (VCT)

WELLNESS PROGRAM

MEDICAL REPATRIATION

waynewaynedunncom Slide 56

Minesite Program

waynewaynedunncom Slide 57

Current Community Program

AWARENESS AND EDUCATION PROGRAMS

MOBILE CLINIC

CONDOM amp FEMIDOM DISTRIBUTION

PERIODIC PRESUMPTIVE TREATMENT (PPT)

TREATMENT FOR SEXUALLY TRANSMITTED INFECTIONS ( STI)

waynewaynedunncom Slide 58

COMMUNITY PROGRAM

Community Mobile Clinic

waynewaynedunncom Slide 59

And when HIV prevention doesnrsquot 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 60

Industry Home Based Care

TEBA INFRA-STRUCTURE

TRAINING OF CARE GIVERS

SUPPORT STRUCTURE ndash QUALIFIED STAFF

MONTHLY MEDICATION

WORK WITH OTHER STAKEHOLDERS (EG TRADITIONAL HEALERS)

WORLD BANK DEVELOPMENT INNOVATION AWARD

waynewaynedunncom Slide 61

Home Based Care

Slide 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

waynewaynedunncom Slide 63

Overview of Placer Dome AIDS Programming SOUTH DEEP Sustainable Development Department

bullVoluntary Counseling and testing HIV Negative bullContinue working

On Mine Program Community Program

Modified work program Farm bullAgricultural work Environmental

Medical repatriation

Home Based Care

Benefits Care Positive

HBC EC OPP

Back to work or Re skilled

Wellness Program

waynewaynedunncom Slide 64

But what happens to children and families when the breadwinner canrsquot

work

Slide 65

HIVAIDS and Rural Areas HIVAIDS 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

Slide 66

HIVAIDS 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

waynewaynedunncom

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 CSREthical

Project Award (2004) Numerous other awards Stanford Case Study

waynewaynedunncom Slide 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 69

Planned Program

Care Positive Integrate the Home Based Care

project with the Care process and launch as a fee for service based program to address the social and 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

Care Process

+

Home Based Care

=

Care Positive

waynewaynedunncom Slide 70

Care Positive Summary

waynewaynedunncom

Andhellip 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 $100000 and considerable reputational capital into them Industry went forward with modified HIVAIDS

programming but huge developmental impacts were lost

waynewaynedunncom Slide 72

MDG Impacts of Placer Dome in South Africa

1 Poverty and hunger 2 Some impact on primary education (School

feeding program) 3 Promote gender equality and empower women 4 Reduce child mortality 5 Improve maternal health 6 Combat HIVAIDS malaria and other diseass 7 Ensure environmental sustainability 8 Develop a global partnership for development

(Placer Dome CIDA Civil Society NGOs)

waynewaynedunncom

One thing leads to another

World Bank observed how Placer Domersquos leadership on HIVAIDS 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

waynewaynedunncom

PNG HIVAIDS Scoping mission to

determine what might be done and how Enthusiastic interest from

industry government multi-laterals (WHO UNAIDS World Banketc) ODA (AusAID) CIDA partnered with Place Dome to develop an

HIVAIDS strategy for PNG that integrated industry public sector civil society and international community

waynewaynedunncom

PNG Outcomes (or outputs ndash Irsquom never sure) Partnership with Mining

Industry Civil Society WHO UNAIDS UNDP World Bank PNG AIDS AusAID Oil Palm Industry etc National workshop on

HIVAIDS and publicprivate partnerships SouthSouth Collaboration

Industry government civil society international community study trip to South Africa

waynewaynedunncom

waynewaynedunncom

PNG AIDS mission to South Africa

waynewaynedunncom Slide 78

MDG Impacts of PNG HIVAIDS work

1 Poverty and hunger (nutritional supplements) 2 Some impact on primary education (peripheral) 3 Promote gender equality and empower women 4 Reduce child mortality 5 Improve maternal health 6 Combat HIVAIDS malaria and other diseass 7 Ensure environmental sustainability 8 Develop a global partnership for development

(Placer Dome CIDA Civil Society NGOs)

waynewaynedunncom

Eldorado Gold in Turkey

Major gold find in WestCentral Turkey No successful

mining project launched in decades Eurogold project

built launched and halted by community action in late 1990s ndash still mothballed

UsakKislidag Minesite

Eurogold site

waynewaynedunncom

Eldorado Gold in Turkey

Isolated rural area Nearly half of nearby

communities opposed to mine development Agriculture primary

economic activity in rural communities ndash smallmicro family farms

waynewaynedunncom

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

waynewaynedunncom

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 $075 to $1325 Opened second mine in Turkey

bull Able to deal with controversial watershed issues after relationship success in Usak

waynewaynedunncom Slide 83

MDG Impacts of Eldorado Gold

1 Poverty and hunger (minimal) 2 Some impact on primary education (peripheral) 3 Promote gender equality and empower women 4 Reduce child mortality 5 Improve maternal health 6 Combat HIVAIDS malaria and other diseass 7 Ensure environmental sustainability 8 Develop a global partnership for development

(Placer Dome CIDA Civil Society NGOs)

waynewaynedunncom

Underwater Logging in Ghana

waynewaynedunncom

Private Sector and International Development

Private sector especially resource extraction has a very mixed record bull Some horrendous disasters (Nigeria Warao Peoples in

Venezuela etc) bull Some great successes (Placer Dome Care project

mining and HIVAIDS 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

waynewaynedunncom

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

interestsobjectives overlap

waynewaynedunncom

SDCSR Implementation Challenges

more than a warm fuzzy issue Spending isnrsquot the answer

Plan

Framework

System

Results

Solving social problems Objectives

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Beyond Beads and Trinkets ndash BC Mining Review

A lsquohow torsquo article on mining and CSR

Wayne Dunn

BP Venezuela Indigenous Relations ndash Meeting the Challenge Responsibly and Sustainably

Situational assessment and strategic plan for BP Venezuela Authorized for release by BP

Wayne Dunn

Cameco Community Relations Report

Situational assessment and management strategy Authorized for release by Cameco

Wayne Dunn

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author Beyond Beads lsquon Trinkets A systematic approach to managing community relations

A conference paper describing a systematic approach to community relations management helping companies to methodically develop mutually beneficial relationships with local communities and interests (this is one of the earliest papers on this subject ndash written in 1998)

Wayne Dunn

The costs of conflict with local communities in the extractive industry

Analysis of the cost of community conflicts in the Extractive Sector

Rachel Davis and Daniel M Franks

Creating Shared Value

Harvard Business Review interview with Michael Porter

Video

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Social License Its all about value

Discussion on Social License and shareholder Value

Wayne Dunn

Its about Development Commentary on the CIDAMining Company issue

Wayne Dunn

Integrating corporate strategy and social responsibilitymdashmarket returns from stakeholder engagement

Discussion and analysis on market returns on stakeholder engagement

Witold J Henisz Sinziana Dorobantu and Lite J Narty

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

McGill Reporter ndash Four Burning Questions Wayne Dunn on CSR

Discussion on CSR Wayne Dunn

Miningrsquos contribution to sustainable development ndashan overview

Discussion paper prepared by the International Council on Mining and Metals

Millennium Development Goals

United Nations

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Mining and Agriculture Development

A short lsquohow torsquo guide for mining projects to engage with the local agriculture sector

Al Hingston

PDSA Social Value Brochure

Brochure on social value created by Placer Dome South Africa

Placer Dome

The Value of Social License

Opinion piece published in Northern Miner

Wayne Dunn

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Golden Opportunity When a Canadian multinational laid off hundreds of gold miners in South Africa it went many extra miles to help them get back on their feet

Stanford Business School Case Study on Placer Dome in South Africa

Wayne Dunn

The Changing Resource Development Paradigm Maximizing Sustainable Local Benefits from Resource Development

Strategic thought piece prepared for the government of British Columbia Canada

Wayne Dunn

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

The Disappearing Barriers Between Business And Non-profits Are Driving Innovation

Discussion paper

Katherine Pikus

When Condoms are not enough

World Bank staff magazine article on Placer Dome and South African mining industryrsquos work with HIVAIDS

Craig Andrews

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

MINING AND LOCAL ECONOMIC DEVELOPMENT IN PAPUA NEW GUINEA Preliminary Research on a Potential Pilot Project in Porgera and Lihir

Strategic research and action plan on mining and local economic development in Papua New Guinea prepared for the World Bank

Wayne Dunn

waynewaynedunncom

What we covered

We 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) Publicprivatecivil society collaboration ndash case study

and discussion (CIDA and Mining Companies) Open discussion on topics of interest (time permitting)

waynewaynedunncom

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 howwhy 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

waynewaynedunncom

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 howwhy 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

waynewaynedunncom

Alignment around Shared Value For shareholders For Communities For People For Governments

Private Sector Contributions To International Development

Remember

  • Private Sector Contributions To International Development
  • Session Objectives
  • Map of the morning How we will try to meet the objectives
  • Slide Number 4
  • What is ODA and FDI
  • What is ODA and FDI
  • Why discuss Private Sector Contribution anyway
  • FDIBusiness Outcomes
  • Intention and Strategy Make a Difference
  • Why does the private sector care
  • Community Consultation and Value
  • Itrsquos Real Money
  • CSR is a Value Strategy
  • Social License Failures cost
  • Why is CSR happening
  • The Mining World Has Changed
  • CSR is a complicated space
  • CSR amp Social License
  • Role of business is changing (click image to play video)
  • Case Studies (of successes)
  • Slide Number 21
  • Uranium Industry in Northern Saskatchewan
  • Challenging area
  • Challenging Times
  • Cameco in 1998
  • Cameco in Northern Saskatchewan (2010)
  • So how did Cameco and the industry do it
  • Placer Dome South Africa
  • Slide Number 29
  • Background
  • Background (cont)
  • Families amp Communities must benefit from mining
  • The Care Project
  • Implications
  • Slide Number 35
  • The Initial 4-Step Plan
  • Reality was different than we expected
  • Reality was different than expected
  • Meeting the challenges
  • TheProcess
  • Some results
  • Chicken raising business
  • Furniture making
  • Unique training programs
  • Rice farming in Mozambique
  • Spaza (convenience) shop
  • And the business value ishellip
  • Slide Number 48
  • What was in it for Placer Dome
  • And then there is HIVAIDS
  • HIVAIDS Facts (in 2000)
  • HIVAIDS Impact
  • HIVAIDS and Gold Mining
  • HIVAIDS Programming
  • Minesite Program
  • Minesite Program
  • Current Community Program
  • Community Mobile Clinic
  • And when HIV prevention doesnrsquot work
  • Industry Home Based Care
  • Home Based Care
  • INDUSTRY HOME BASED CARE RESULTS(Year One)
  • Overview of Placer Dome AIDS Programming
  • Slide Number 64
  • HIVAIDS and Rural Areas
  • HIVAIDS and Rural Areas
  • Reputational Results for Placer Dome
  • Where to next
  • Planned Program
  • Care Positive Summary
  • Andhellip
  • MDG Impacts of Placer Dome in South Africa
  • One thing leads to another
  • PNG HIVAIDS
  • PNG Outcomes (or outputs ndash Irsquom never sure)
  • Slide Number 76
  • PNG AIDS mission to South Africa
  • MDG Impacts of PNG HIVAIDS work
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • MDG Impacts of Eldorado Gold
  • Underwater Logging in Ghana
  • Private Sector and International Development
  • Group Exercise
  • Slide Number 87
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • What we covered
  • Session Objectives
  • Session Objectives
  • Remember
Page 41: Private Sector Contributions To International Development – McGill Executive Education Program Lecture

Slide 41

Some results 92 of the retrenchees were located

and registered 57 of those (1250) are economically

active 65 (1556) 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 42

Chicken raising business

Slide 43

Furniture making

waynewaynedunncom Slide 44

Unique training programs

waynewaynedunncom Slide 45

Rice farming in Mozambique

Slide 46

Spaza (convenience) shop

Slide 47

And the business value ishellip HIVAIDS 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 ndash 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

waynewaynedunncom Slide 48

ldquoThe project changed the social face of the South African Mining Industryrdquo

Kgosietsile Mogaki

South African Ministry of Minerals and Energy

waynewaynedunncom Slide 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 globally

Through 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 50

And then there is HIVAIDS

RSA ACCOUNTED FOR NEARLY 1 IN 8 OF THE NEW HIV INFECTIONS THAT OCCURRED WORLD WIDE IN 2000

HIV+ PREVALENCE RATE IN WOMEN ATTENDING ANTE-NATAL CLINICS INCREASED FROM 07 IN 1990 TO 248 IN 2001

AVERAGE OF 1700 NEW INFECTIONS PER DAY

LIFE EXPECTANCY WILL DECLINE FROM 65 TO 40 BY 2011

65

40

0

10

20

30

40

50

60

70

2001 2011

Life Expectancy

waynewaynedunncom Slide 51

HIVAIDS Facts (in 2000)

ESTIMATED THAT 12 OF TOTAL RSA POPULATION AND 25 OF MINEWORKERS ARE HIV+

ALREADY 400000 PEOPLE ARE AIDS SICK AND THIS WILL INCREASE TO 14 M BY 2010

YOUNG WOMEN PARTICULARLY VULNERABLE ndash 239 AGED BETWEEN 15 ndash 49 ALREADY INFECTED AND WILL RISE TO 297 BY 2007

AIDS ORPHANS AT PRESENT AMOUNT TO 660000+ AND WILL RISE TO 18M BY 2015

ACCUMULATIVE AIDS DEATHS WILL RISE TO 9M BY 2015

Slide 52

HIVAIDS Impact REDUCED ECONOMIC GROWTH RATE ndash 2010 GDP 20 below a non AIDS

scenario REDUCED POPULATION ndash RSA population 10M smaller than non AIDS scenario SKYROCKETING DEMANDS ON PUBLIC HEALTH SYSTEM - RADICALLY CHANGED PRIVATE SPENDING PATTERNS ndash to healthcare and

funeral costs IMPACT ON SOCIO-ECONOMIC STABILITY (orphans)

HIVAIDS 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 Africa today Nobody can afford to ignore it

Slide 53

HIVAIDS and Gold Mining

$10oz impact if nothing is done (5 of production costs) ~$3oz with maximum

intervention Impact on social and political

stability

Slide 54

HIVAIDS Programming Placer Dome program ndash

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 55

Minesite Program

TRAINING AND EDUCATION

STI amp TB TREATMENT

CONDOM DISTRIBUTION

PEER EDUCATION

VOLUNTARY COUNSELING AND TESTING (VCT)

WELLNESS PROGRAM

MEDICAL REPATRIATION

waynewaynedunncom Slide 56

Minesite Program

waynewaynedunncom Slide 57

Current Community Program

AWARENESS AND EDUCATION PROGRAMS

MOBILE CLINIC

CONDOM amp FEMIDOM DISTRIBUTION

PERIODIC PRESUMPTIVE TREATMENT (PPT)

TREATMENT FOR SEXUALLY TRANSMITTED INFECTIONS ( STI)

waynewaynedunncom Slide 58

COMMUNITY PROGRAM

Community Mobile Clinic

waynewaynedunncom Slide 59

And when HIV prevention doesnrsquot 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 60

Industry Home Based Care

TEBA INFRA-STRUCTURE

TRAINING OF CARE GIVERS

SUPPORT STRUCTURE ndash QUALIFIED STAFF

MONTHLY MEDICATION

WORK WITH OTHER STAKEHOLDERS (EG TRADITIONAL HEALERS)

WORLD BANK DEVELOPMENT INNOVATION AWARD

waynewaynedunncom Slide 61

Home Based Care

Slide 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

waynewaynedunncom Slide 63

Overview of Placer Dome AIDS Programming SOUTH DEEP Sustainable Development Department

bullVoluntary Counseling and testing HIV Negative bullContinue working

On Mine Program Community Program

Modified work program Farm bullAgricultural work Environmental

Medical repatriation

Home Based Care

Benefits Care Positive

HBC EC OPP

Back to work or Re skilled

Wellness Program

waynewaynedunncom Slide 64

But what happens to children and families when the breadwinner canrsquot

work

Slide 65

HIVAIDS and Rural Areas HIVAIDS 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

Slide 66

HIVAIDS 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

waynewaynedunncom

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 CSREthical

Project Award (2004) Numerous other awards Stanford Case Study

waynewaynedunncom Slide 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 69

Planned Program

Care Positive Integrate the Home Based Care

project with the Care process and launch as a fee for service based program to address the social and 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

Care Process

+

Home Based Care

=

Care Positive

waynewaynedunncom Slide 70

Care Positive Summary

waynewaynedunncom

Andhellip 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 $100000 and considerable reputational capital into them Industry went forward with modified HIVAIDS

programming but huge developmental impacts were lost

waynewaynedunncom Slide 72

MDG Impacts of Placer Dome in South Africa

1 Poverty and hunger 2 Some impact on primary education (School

feeding program) 3 Promote gender equality and empower women 4 Reduce child mortality 5 Improve maternal health 6 Combat HIVAIDS malaria and other diseass 7 Ensure environmental sustainability 8 Develop a global partnership for development

(Placer Dome CIDA Civil Society NGOs)

waynewaynedunncom

One thing leads to another

World Bank observed how Placer Domersquos leadership on HIVAIDS 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

waynewaynedunncom

PNG HIVAIDS Scoping mission to

determine what might be done and how Enthusiastic interest from

industry government multi-laterals (WHO UNAIDS World Banketc) ODA (AusAID) CIDA partnered with Place Dome to develop an

HIVAIDS strategy for PNG that integrated industry public sector civil society and international community

waynewaynedunncom

PNG Outcomes (or outputs ndash Irsquom never sure) Partnership with Mining

Industry Civil Society WHO UNAIDS UNDP World Bank PNG AIDS AusAID Oil Palm Industry etc National workshop on

HIVAIDS and publicprivate partnerships SouthSouth Collaboration

Industry government civil society international community study trip to South Africa

waynewaynedunncom

waynewaynedunncom

PNG AIDS mission to South Africa

waynewaynedunncom Slide 78

MDG Impacts of PNG HIVAIDS work

1 Poverty and hunger (nutritional supplements) 2 Some impact on primary education (peripheral) 3 Promote gender equality and empower women 4 Reduce child mortality 5 Improve maternal health 6 Combat HIVAIDS malaria and other diseass 7 Ensure environmental sustainability 8 Develop a global partnership for development

(Placer Dome CIDA Civil Society NGOs)

waynewaynedunncom

Eldorado Gold in Turkey

Major gold find in WestCentral Turkey No successful

mining project launched in decades Eurogold project

built launched and halted by community action in late 1990s ndash still mothballed

UsakKislidag Minesite

Eurogold site

waynewaynedunncom

Eldorado Gold in Turkey

Isolated rural area Nearly half of nearby

communities opposed to mine development Agriculture primary

economic activity in rural communities ndash smallmicro family farms

waynewaynedunncom

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

waynewaynedunncom

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 $075 to $1325 Opened second mine in Turkey

bull Able to deal with controversial watershed issues after relationship success in Usak

waynewaynedunncom Slide 83

MDG Impacts of Eldorado Gold

1 Poverty and hunger (minimal) 2 Some impact on primary education (peripheral) 3 Promote gender equality and empower women 4 Reduce child mortality 5 Improve maternal health 6 Combat HIVAIDS malaria and other diseass 7 Ensure environmental sustainability 8 Develop a global partnership for development

(Placer Dome CIDA Civil Society NGOs)

waynewaynedunncom

Underwater Logging in Ghana

waynewaynedunncom

Private Sector and International Development

Private sector especially resource extraction has a very mixed record bull Some horrendous disasters (Nigeria Warao Peoples in

Venezuela etc) bull Some great successes (Placer Dome Care project

mining and HIVAIDS 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

waynewaynedunncom

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

interestsobjectives overlap

waynewaynedunncom

SDCSR Implementation Challenges

more than a warm fuzzy issue Spending isnrsquot the answer

Plan

Framework

System

Results

Solving social problems Objectives

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Beyond Beads and Trinkets ndash BC Mining Review

A lsquohow torsquo article on mining and CSR

Wayne Dunn

BP Venezuela Indigenous Relations ndash Meeting the Challenge Responsibly and Sustainably

Situational assessment and strategic plan for BP Venezuela Authorized for release by BP

Wayne Dunn

Cameco Community Relations Report

Situational assessment and management strategy Authorized for release by Cameco

Wayne Dunn

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author Beyond Beads lsquon Trinkets A systematic approach to managing community relations

A conference paper describing a systematic approach to community relations management helping companies to methodically develop mutually beneficial relationships with local communities and interests (this is one of the earliest papers on this subject ndash written in 1998)

Wayne Dunn

The costs of conflict with local communities in the extractive industry

Analysis of the cost of community conflicts in the Extractive Sector

Rachel Davis and Daniel M Franks

Creating Shared Value

Harvard Business Review interview with Michael Porter

Video

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Social License Its all about value

Discussion on Social License and shareholder Value

Wayne Dunn

Its about Development Commentary on the CIDAMining Company issue

Wayne Dunn

Integrating corporate strategy and social responsibilitymdashmarket returns from stakeholder engagement

Discussion and analysis on market returns on stakeholder engagement

Witold J Henisz Sinziana Dorobantu and Lite J Narty

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

McGill Reporter ndash Four Burning Questions Wayne Dunn on CSR

Discussion on CSR Wayne Dunn

Miningrsquos contribution to sustainable development ndashan overview

Discussion paper prepared by the International Council on Mining and Metals

Millennium Development Goals

United Nations

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Mining and Agriculture Development

A short lsquohow torsquo guide for mining projects to engage with the local agriculture sector

Al Hingston

PDSA Social Value Brochure

Brochure on social value created by Placer Dome South Africa

Placer Dome

The Value of Social License

Opinion piece published in Northern Miner

Wayne Dunn

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Golden Opportunity When a Canadian multinational laid off hundreds of gold miners in South Africa it went many extra miles to help them get back on their feet

Stanford Business School Case Study on Placer Dome in South Africa

Wayne Dunn

The Changing Resource Development Paradigm Maximizing Sustainable Local Benefits from Resource Development

Strategic thought piece prepared for the government of British Columbia Canada

Wayne Dunn

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

The Disappearing Barriers Between Business And Non-profits Are Driving Innovation

Discussion paper

Katherine Pikus

When Condoms are not enough

World Bank staff magazine article on Placer Dome and South African mining industryrsquos work with HIVAIDS

Craig Andrews

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

MINING AND LOCAL ECONOMIC DEVELOPMENT IN PAPUA NEW GUINEA Preliminary Research on a Potential Pilot Project in Porgera and Lihir

Strategic research and action plan on mining and local economic development in Papua New Guinea prepared for the World Bank

Wayne Dunn

waynewaynedunncom

What we covered

We 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) Publicprivatecivil society collaboration ndash case study

and discussion (CIDA and Mining Companies) Open discussion on topics of interest (time permitting)

waynewaynedunncom

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 howwhy 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

waynewaynedunncom

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 howwhy 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

waynewaynedunncom

Alignment around Shared Value For shareholders For Communities For People For Governments

Private Sector Contributions To International Development

Remember

  • Private Sector Contributions To International Development
  • Session Objectives
  • Map of the morning How we will try to meet the objectives
  • Slide Number 4
  • What is ODA and FDI
  • What is ODA and FDI
  • Why discuss Private Sector Contribution anyway
  • FDIBusiness Outcomes
  • Intention and Strategy Make a Difference
  • Why does the private sector care
  • Community Consultation and Value
  • Itrsquos Real Money
  • CSR is a Value Strategy
  • Social License Failures cost
  • Why is CSR happening
  • The Mining World Has Changed
  • CSR is a complicated space
  • CSR amp Social License
  • Role of business is changing (click image to play video)
  • Case Studies (of successes)
  • Slide Number 21
  • Uranium Industry in Northern Saskatchewan
  • Challenging area
  • Challenging Times
  • Cameco in 1998
  • Cameco in Northern Saskatchewan (2010)
  • So how did Cameco and the industry do it
  • Placer Dome South Africa
  • Slide Number 29
  • Background
  • Background (cont)
  • Families amp Communities must benefit from mining
  • The Care Project
  • Implications
  • Slide Number 35
  • The Initial 4-Step Plan
  • Reality was different than we expected
  • Reality was different than expected
  • Meeting the challenges
  • TheProcess
  • Some results
  • Chicken raising business
  • Furniture making
  • Unique training programs
  • Rice farming in Mozambique
  • Spaza (convenience) shop
  • And the business value ishellip
  • Slide Number 48
  • What was in it for Placer Dome
  • And then there is HIVAIDS
  • HIVAIDS Facts (in 2000)
  • HIVAIDS Impact
  • HIVAIDS and Gold Mining
  • HIVAIDS Programming
  • Minesite Program
  • Minesite Program
  • Current Community Program
  • Community Mobile Clinic
  • And when HIV prevention doesnrsquot work
  • Industry Home Based Care
  • Home Based Care
  • INDUSTRY HOME BASED CARE RESULTS(Year One)
  • Overview of Placer Dome AIDS Programming
  • Slide Number 64
  • HIVAIDS and Rural Areas
  • HIVAIDS and Rural Areas
  • Reputational Results for Placer Dome
  • Where to next
  • Planned Program
  • Care Positive Summary
  • Andhellip
  • MDG Impacts of Placer Dome in South Africa
  • One thing leads to another
  • PNG HIVAIDS
  • PNG Outcomes (or outputs ndash Irsquom never sure)
  • Slide Number 76
  • PNG AIDS mission to South Africa
  • MDG Impacts of PNG HIVAIDS work
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • MDG Impacts of Eldorado Gold
  • Underwater Logging in Ghana
  • Private Sector and International Development
  • Group Exercise
  • Slide Number 87
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • What we covered
  • Session Objectives
  • Session Objectives
  • Remember
Page 42: Private Sector Contributions To International Development – McGill Executive Education Program Lecture

Slide 42

Chicken raising business

Slide 43

Furniture making

waynewaynedunncom Slide 44

Unique training programs

waynewaynedunncom Slide 45

Rice farming in Mozambique

Slide 46

Spaza (convenience) shop

Slide 47

And the business value ishellip HIVAIDS 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 ndash 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

waynewaynedunncom Slide 48

ldquoThe project changed the social face of the South African Mining Industryrdquo

Kgosietsile Mogaki

South African Ministry of Minerals and Energy

waynewaynedunncom Slide 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 globally

Through 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 50

And then there is HIVAIDS

RSA ACCOUNTED FOR NEARLY 1 IN 8 OF THE NEW HIV INFECTIONS THAT OCCURRED WORLD WIDE IN 2000

HIV+ PREVALENCE RATE IN WOMEN ATTENDING ANTE-NATAL CLINICS INCREASED FROM 07 IN 1990 TO 248 IN 2001

AVERAGE OF 1700 NEW INFECTIONS PER DAY

LIFE EXPECTANCY WILL DECLINE FROM 65 TO 40 BY 2011

65

40

0

10

20

30

40

50

60

70

2001 2011

Life Expectancy

waynewaynedunncom Slide 51

HIVAIDS Facts (in 2000)

ESTIMATED THAT 12 OF TOTAL RSA POPULATION AND 25 OF MINEWORKERS ARE HIV+

ALREADY 400000 PEOPLE ARE AIDS SICK AND THIS WILL INCREASE TO 14 M BY 2010

YOUNG WOMEN PARTICULARLY VULNERABLE ndash 239 AGED BETWEEN 15 ndash 49 ALREADY INFECTED AND WILL RISE TO 297 BY 2007

AIDS ORPHANS AT PRESENT AMOUNT TO 660000+ AND WILL RISE TO 18M BY 2015

ACCUMULATIVE AIDS DEATHS WILL RISE TO 9M BY 2015

Slide 52

HIVAIDS Impact REDUCED ECONOMIC GROWTH RATE ndash 2010 GDP 20 below a non AIDS

scenario REDUCED POPULATION ndash RSA population 10M smaller than non AIDS scenario SKYROCKETING DEMANDS ON PUBLIC HEALTH SYSTEM - RADICALLY CHANGED PRIVATE SPENDING PATTERNS ndash to healthcare and

funeral costs IMPACT ON SOCIO-ECONOMIC STABILITY (orphans)

HIVAIDS 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 Africa today Nobody can afford to ignore it

Slide 53

HIVAIDS and Gold Mining

$10oz impact if nothing is done (5 of production costs) ~$3oz with maximum

intervention Impact on social and political

stability

Slide 54

HIVAIDS Programming Placer Dome program ndash

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 55

Minesite Program

TRAINING AND EDUCATION

STI amp TB TREATMENT

CONDOM DISTRIBUTION

PEER EDUCATION

VOLUNTARY COUNSELING AND TESTING (VCT)

WELLNESS PROGRAM

MEDICAL REPATRIATION

waynewaynedunncom Slide 56

Minesite Program

waynewaynedunncom Slide 57

Current Community Program

AWARENESS AND EDUCATION PROGRAMS

MOBILE CLINIC

CONDOM amp FEMIDOM DISTRIBUTION

PERIODIC PRESUMPTIVE TREATMENT (PPT)

TREATMENT FOR SEXUALLY TRANSMITTED INFECTIONS ( STI)

waynewaynedunncom Slide 58

COMMUNITY PROGRAM

Community Mobile Clinic

waynewaynedunncom Slide 59

And when HIV prevention doesnrsquot 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 60

Industry Home Based Care

TEBA INFRA-STRUCTURE

TRAINING OF CARE GIVERS

SUPPORT STRUCTURE ndash QUALIFIED STAFF

MONTHLY MEDICATION

WORK WITH OTHER STAKEHOLDERS (EG TRADITIONAL HEALERS)

WORLD BANK DEVELOPMENT INNOVATION AWARD

waynewaynedunncom Slide 61

Home Based Care

Slide 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

waynewaynedunncom Slide 63

Overview of Placer Dome AIDS Programming SOUTH DEEP Sustainable Development Department

bullVoluntary Counseling and testing HIV Negative bullContinue working

On Mine Program Community Program

Modified work program Farm bullAgricultural work Environmental

Medical repatriation

Home Based Care

Benefits Care Positive

HBC EC OPP

Back to work or Re skilled

Wellness Program

waynewaynedunncom Slide 64

But what happens to children and families when the breadwinner canrsquot

work

Slide 65

HIVAIDS and Rural Areas HIVAIDS 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

Slide 66

HIVAIDS 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

waynewaynedunncom

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 CSREthical

Project Award (2004) Numerous other awards Stanford Case Study

waynewaynedunncom Slide 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 69

Planned Program

Care Positive Integrate the Home Based Care

project with the Care process and launch as a fee for service based program to address the social and 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

Care Process

+

Home Based Care

=

Care Positive

waynewaynedunncom Slide 70

Care Positive Summary

waynewaynedunncom

Andhellip 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 $100000 and considerable reputational capital into them Industry went forward with modified HIVAIDS

programming but huge developmental impacts were lost

waynewaynedunncom Slide 72

MDG Impacts of Placer Dome in South Africa

1 Poverty and hunger 2 Some impact on primary education (School

feeding program) 3 Promote gender equality and empower women 4 Reduce child mortality 5 Improve maternal health 6 Combat HIVAIDS malaria and other diseass 7 Ensure environmental sustainability 8 Develop a global partnership for development

(Placer Dome CIDA Civil Society NGOs)

waynewaynedunncom

One thing leads to another

World Bank observed how Placer Domersquos leadership on HIVAIDS 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

waynewaynedunncom

PNG HIVAIDS Scoping mission to

determine what might be done and how Enthusiastic interest from

industry government multi-laterals (WHO UNAIDS World Banketc) ODA (AusAID) CIDA partnered with Place Dome to develop an

HIVAIDS strategy for PNG that integrated industry public sector civil society and international community

waynewaynedunncom

PNG Outcomes (or outputs ndash Irsquom never sure) Partnership with Mining

Industry Civil Society WHO UNAIDS UNDP World Bank PNG AIDS AusAID Oil Palm Industry etc National workshop on

HIVAIDS and publicprivate partnerships SouthSouth Collaboration

Industry government civil society international community study trip to South Africa

waynewaynedunncom

waynewaynedunncom

PNG AIDS mission to South Africa

waynewaynedunncom Slide 78

MDG Impacts of PNG HIVAIDS work

1 Poverty and hunger (nutritional supplements) 2 Some impact on primary education (peripheral) 3 Promote gender equality and empower women 4 Reduce child mortality 5 Improve maternal health 6 Combat HIVAIDS malaria and other diseass 7 Ensure environmental sustainability 8 Develop a global partnership for development

(Placer Dome CIDA Civil Society NGOs)

waynewaynedunncom

Eldorado Gold in Turkey

Major gold find in WestCentral Turkey No successful

mining project launched in decades Eurogold project

built launched and halted by community action in late 1990s ndash still mothballed

UsakKislidag Minesite

Eurogold site

waynewaynedunncom

Eldorado Gold in Turkey

Isolated rural area Nearly half of nearby

communities opposed to mine development Agriculture primary

economic activity in rural communities ndash smallmicro family farms

waynewaynedunncom

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

waynewaynedunncom

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 $075 to $1325 Opened second mine in Turkey

bull Able to deal with controversial watershed issues after relationship success in Usak

waynewaynedunncom Slide 83

MDG Impacts of Eldorado Gold

1 Poverty and hunger (minimal) 2 Some impact on primary education (peripheral) 3 Promote gender equality and empower women 4 Reduce child mortality 5 Improve maternal health 6 Combat HIVAIDS malaria and other diseass 7 Ensure environmental sustainability 8 Develop a global partnership for development

(Placer Dome CIDA Civil Society NGOs)

waynewaynedunncom

Underwater Logging in Ghana

waynewaynedunncom

Private Sector and International Development

Private sector especially resource extraction has a very mixed record bull Some horrendous disasters (Nigeria Warao Peoples in

Venezuela etc) bull Some great successes (Placer Dome Care project

mining and HIVAIDS 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

waynewaynedunncom

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

interestsobjectives overlap

waynewaynedunncom

SDCSR Implementation Challenges

more than a warm fuzzy issue Spending isnrsquot the answer

Plan

Framework

System

Results

Solving social problems Objectives

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Beyond Beads and Trinkets ndash BC Mining Review

A lsquohow torsquo article on mining and CSR

Wayne Dunn

BP Venezuela Indigenous Relations ndash Meeting the Challenge Responsibly and Sustainably

Situational assessment and strategic plan for BP Venezuela Authorized for release by BP

Wayne Dunn

Cameco Community Relations Report

Situational assessment and management strategy Authorized for release by Cameco

Wayne Dunn

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author Beyond Beads lsquon Trinkets A systematic approach to managing community relations

A conference paper describing a systematic approach to community relations management helping companies to methodically develop mutually beneficial relationships with local communities and interests (this is one of the earliest papers on this subject ndash written in 1998)

Wayne Dunn

The costs of conflict with local communities in the extractive industry

Analysis of the cost of community conflicts in the Extractive Sector

Rachel Davis and Daniel M Franks

Creating Shared Value

Harvard Business Review interview with Michael Porter

Video

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Social License Its all about value

Discussion on Social License and shareholder Value

Wayne Dunn

Its about Development Commentary on the CIDAMining Company issue

Wayne Dunn

Integrating corporate strategy and social responsibilitymdashmarket returns from stakeholder engagement

Discussion and analysis on market returns on stakeholder engagement

Witold J Henisz Sinziana Dorobantu and Lite J Narty

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

McGill Reporter ndash Four Burning Questions Wayne Dunn on CSR

Discussion on CSR Wayne Dunn

Miningrsquos contribution to sustainable development ndashan overview

Discussion paper prepared by the International Council on Mining and Metals

Millennium Development Goals

United Nations

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Mining and Agriculture Development

A short lsquohow torsquo guide for mining projects to engage with the local agriculture sector

Al Hingston

PDSA Social Value Brochure

Brochure on social value created by Placer Dome South Africa

Placer Dome

The Value of Social License

Opinion piece published in Northern Miner

Wayne Dunn

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Golden Opportunity When a Canadian multinational laid off hundreds of gold miners in South Africa it went many extra miles to help them get back on their feet

Stanford Business School Case Study on Placer Dome in South Africa

Wayne Dunn

The Changing Resource Development Paradigm Maximizing Sustainable Local Benefits from Resource Development

Strategic thought piece prepared for the government of British Columbia Canada

Wayne Dunn

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

The Disappearing Barriers Between Business And Non-profits Are Driving Innovation

Discussion paper

Katherine Pikus

When Condoms are not enough

World Bank staff magazine article on Placer Dome and South African mining industryrsquos work with HIVAIDS

Craig Andrews

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

MINING AND LOCAL ECONOMIC DEVELOPMENT IN PAPUA NEW GUINEA Preliminary Research on a Potential Pilot Project in Porgera and Lihir

Strategic research and action plan on mining and local economic development in Papua New Guinea prepared for the World Bank

Wayne Dunn

waynewaynedunncom

What we covered

We 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) Publicprivatecivil society collaboration ndash case study

and discussion (CIDA and Mining Companies) Open discussion on topics of interest (time permitting)

waynewaynedunncom

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 howwhy 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

waynewaynedunncom

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 howwhy 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

waynewaynedunncom

Alignment around Shared Value For shareholders For Communities For People For Governments

Private Sector Contributions To International Development

Remember

  • Private Sector Contributions To International Development
  • Session Objectives
  • Map of the morning How we will try to meet the objectives
  • Slide Number 4
  • What is ODA and FDI
  • What is ODA and FDI
  • Why discuss Private Sector Contribution anyway
  • FDIBusiness Outcomes
  • Intention and Strategy Make a Difference
  • Why does the private sector care
  • Community Consultation and Value
  • Itrsquos Real Money
  • CSR is a Value Strategy
  • Social License Failures cost
  • Why is CSR happening
  • The Mining World Has Changed
  • CSR is a complicated space
  • CSR amp Social License
  • Role of business is changing (click image to play video)
  • Case Studies (of successes)
  • Slide Number 21
  • Uranium Industry in Northern Saskatchewan
  • Challenging area
  • Challenging Times
  • Cameco in 1998
  • Cameco in Northern Saskatchewan (2010)
  • So how did Cameco and the industry do it
  • Placer Dome South Africa
  • Slide Number 29
  • Background
  • Background (cont)
  • Families amp Communities must benefit from mining
  • The Care Project
  • Implications
  • Slide Number 35
  • The Initial 4-Step Plan
  • Reality was different than we expected
  • Reality was different than expected
  • Meeting the challenges
  • TheProcess
  • Some results
  • Chicken raising business
  • Furniture making
  • Unique training programs
  • Rice farming in Mozambique
  • Spaza (convenience) shop
  • And the business value ishellip
  • Slide Number 48
  • What was in it for Placer Dome
  • And then there is HIVAIDS
  • HIVAIDS Facts (in 2000)
  • HIVAIDS Impact
  • HIVAIDS and Gold Mining
  • HIVAIDS Programming
  • Minesite Program
  • Minesite Program
  • Current Community Program
  • Community Mobile Clinic
  • And when HIV prevention doesnrsquot work
  • Industry Home Based Care
  • Home Based Care
  • INDUSTRY HOME BASED CARE RESULTS(Year One)
  • Overview of Placer Dome AIDS Programming
  • Slide Number 64
  • HIVAIDS and Rural Areas
  • HIVAIDS and Rural Areas
  • Reputational Results for Placer Dome
  • Where to next
  • Planned Program
  • Care Positive Summary
  • Andhellip
  • MDG Impacts of Placer Dome in South Africa
  • One thing leads to another
  • PNG HIVAIDS
  • PNG Outcomes (or outputs ndash Irsquom never sure)
  • Slide Number 76
  • PNG AIDS mission to South Africa
  • MDG Impacts of PNG HIVAIDS work
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • MDG Impacts of Eldorado Gold
  • Underwater Logging in Ghana
  • Private Sector and International Development
  • Group Exercise
  • Slide Number 87
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • What we covered
  • Session Objectives
  • Session Objectives
  • Remember
Page 43: Private Sector Contributions To International Development – McGill Executive Education Program Lecture

Slide 43

Furniture making

waynewaynedunncom Slide 44

Unique training programs

waynewaynedunncom Slide 45

Rice farming in Mozambique

Slide 46

Spaza (convenience) shop

Slide 47

And the business value ishellip HIVAIDS 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 ndash 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

waynewaynedunncom Slide 48

ldquoThe project changed the social face of the South African Mining Industryrdquo

Kgosietsile Mogaki

South African Ministry of Minerals and Energy

waynewaynedunncom Slide 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 globally

Through 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 50

And then there is HIVAIDS

RSA ACCOUNTED FOR NEARLY 1 IN 8 OF THE NEW HIV INFECTIONS THAT OCCURRED WORLD WIDE IN 2000

HIV+ PREVALENCE RATE IN WOMEN ATTENDING ANTE-NATAL CLINICS INCREASED FROM 07 IN 1990 TO 248 IN 2001

AVERAGE OF 1700 NEW INFECTIONS PER DAY

LIFE EXPECTANCY WILL DECLINE FROM 65 TO 40 BY 2011

65

40

0

10

20

30

40

50

60

70

2001 2011

Life Expectancy

waynewaynedunncom Slide 51

HIVAIDS Facts (in 2000)

ESTIMATED THAT 12 OF TOTAL RSA POPULATION AND 25 OF MINEWORKERS ARE HIV+

ALREADY 400000 PEOPLE ARE AIDS SICK AND THIS WILL INCREASE TO 14 M BY 2010

YOUNG WOMEN PARTICULARLY VULNERABLE ndash 239 AGED BETWEEN 15 ndash 49 ALREADY INFECTED AND WILL RISE TO 297 BY 2007

AIDS ORPHANS AT PRESENT AMOUNT TO 660000+ AND WILL RISE TO 18M BY 2015

ACCUMULATIVE AIDS DEATHS WILL RISE TO 9M BY 2015

Slide 52

HIVAIDS Impact REDUCED ECONOMIC GROWTH RATE ndash 2010 GDP 20 below a non AIDS

scenario REDUCED POPULATION ndash RSA population 10M smaller than non AIDS scenario SKYROCKETING DEMANDS ON PUBLIC HEALTH SYSTEM - RADICALLY CHANGED PRIVATE SPENDING PATTERNS ndash to healthcare and

funeral costs IMPACT ON SOCIO-ECONOMIC STABILITY (orphans)

HIVAIDS 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 Africa today Nobody can afford to ignore it

Slide 53

HIVAIDS and Gold Mining

$10oz impact if nothing is done (5 of production costs) ~$3oz with maximum

intervention Impact on social and political

stability

Slide 54

HIVAIDS Programming Placer Dome program ndash

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 55

Minesite Program

TRAINING AND EDUCATION

STI amp TB TREATMENT

CONDOM DISTRIBUTION

PEER EDUCATION

VOLUNTARY COUNSELING AND TESTING (VCT)

WELLNESS PROGRAM

MEDICAL REPATRIATION

waynewaynedunncom Slide 56

Minesite Program

waynewaynedunncom Slide 57

Current Community Program

AWARENESS AND EDUCATION PROGRAMS

MOBILE CLINIC

CONDOM amp FEMIDOM DISTRIBUTION

PERIODIC PRESUMPTIVE TREATMENT (PPT)

TREATMENT FOR SEXUALLY TRANSMITTED INFECTIONS ( STI)

waynewaynedunncom Slide 58

COMMUNITY PROGRAM

Community Mobile Clinic

waynewaynedunncom Slide 59

And when HIV prevention doesnrsquot 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 60

Industry Home Based Care

TEBA INFRA-STRUCTURE

TRAINING OF CARE GIVERS

SUPPORT STRUCTURE ndash QUALIFIED STAFF

MONTHLY MEDICATION

WORK WITH OTHER STAKEHOLDERS (EG TRADITIONAL HEALERS)

WORLD BANK DEVELOPMENT INNOVATION AWARD

waynewaynedunncom Slide 61

Home Based Care

Slide 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

waynewaynedunncom Slide 63

Overview of Placer Dome AIDS Programming SOUTH DEEP Sustainable Development Department

bullVoluntary Counseling and testing HIV Negative bullContinue working

On Mine Program Community Program

Modified work program Farm bullAgricultural work Environmental

Medical repatriation

Home Based Care

Benefits Care Positive

HBC EC OPP

Back to work or Re skilled

Wellness Program

waynewaynedunncom Slide 64

But what happens to children and families when the breadwinner canrsquot

work

Slide 65

HIVAIDS and Rural Areas HIVAIDS 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

Slide 66

HIVAIDS 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

waynewaynedunncom

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 CSREthical

Project Award (2004) Numerous other awards Stanford Case Study

waynewaynedunncom Slide 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 69

Planned Program

Care Positive Integrate the Home Based Care

project with the Care process and launch as a fee for service based program to address the social and 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

Care Process

+

Home Based Care

=

Care Positive

waynewaynedunncom Slide 70

Care Positive Summary

waynewaynedunncom

Andhellip 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 $100000 and considerable reputational capital into them Industry went forward with modified HIVAIDS

programming but huge developmental impacts were lost

waynewaynedunncom Slide 72

MDG Impacts of Placer Dome in South Africa

1 Poverty and hunger 2 Some impact on primary education (School

feeding program) 3 Promote gender equality and empower women 4 Reduce child mortality 5 Improve maternal health 6 Combat HIVAIDS malaria and other diseass 7 Ensure environmental sustainability 8 Develop a global partnership for development

(Placer Dome CIDA Civil Society NGOs)

waynewaynedunncom

One thing leads to another

World Bank observed how Placer Domersquos leadership on HIVAIDS 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

waynewaynedunncom

PNG HIVAIDS Scoping mission to

determine what might be done and how Enthusiastic interest from

industry government multi-laterals (WHO UNAIDS World Banketc) ODA (AusAID) CIDA partnered with Place Dome to develop an

HIVAIDS strategy for PNG that integrated industry public sector civil society and international community

waynewaynedunncom

PNG Outcomes (or outputs ndash Irsquom never sure) Partnership with Mining

Industry Civil Society WHO UNAIDS UNDP World Bank PNG AIDS AusAID Oil Palm Industry etc National workshop on

HIVAIDS and publicprivate partnerships SouthSouth Collaboration

Industry government civil society international community study trip to South Africa

waynewaynedunncom

waynewaynedunncom

PNG AIDS mission to South Africa

waynewaynedunncom Slide 78

MDG Impacts of PNG HIVAIDS work

1 Poverty and hunger (nutritional supplements) 2 Some impact on primary education (peripheral) 3 Promote gender equality and empower women 4 Reduce child mortality 5 Improve maternal health 6 Combat HIVAIDS malaria and other diseass 7 Ensure environmental sustainability 8 Develop a global partnership for development

(Placer Dome CIDA Civil Society NGOs)

waynewaynedunncom

Eldorado Gold in Turkey

Major gold find in WestCentral Turkey No successful

mining project launched in decades Eurogold project

built launched and halted by community action in late 1990s ndash still mothballed

UsakKislidag Minesite

Eurogold site

waynewaynedunncom

Eldorado Gold in Turkey

Isolated rural area Nearly half of nearby

communities opposed to mine development Agriculture primary

economic activity in rural communities ndash smallmicro family farms

waynewaynedunncom

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

waynewaynedunncom

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 $075 to $1325 Opened second mine in Turkey

bull Able to deal with controversial watershed issues after relationship success in Usak

waynewaynedunncom Slide 83

MDG Impacts of Eldorado Gold

1 Poverty and hunger (minimal) 2 Some impact on primary education (peripheral) 3 Promote gender equality and empower women 4 Reduce child mortality 5 Improve maternal health 6 Combat HIVAIDS malaria and other diseass 7 Ensure environmental sustainability 8 Develop a global partnership for development

(Placer Dome CIDA Civil Society NGOs)

waynewaynedunncom

Underwater Logging in Ghana

waynewaynedunncom

Private Sector and International Development

Private sector especially resource extraction has a very mixed record bull Some horrendous disasters (Nigeria Warao Peoples in

Venezuela etc) bull Some great successes (Placer Dome Care project

mining and HIVAIDS 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

waynewaynedunncom

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

interestsobjectives overlap

waynewaynedunncom

SDCSR Implementation Challenges

more than a warm fuzzy issue Spending isnrsquot the answer

Plan

Framework

System

Results

Solving social problems Objectives

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Beyond Beads and Trinkets ndash BC Mining Review

A lsquohow torsquo article on mining and CSR

Wayne Dunn

BP Venezuela Indigenous Relations ndash Meeting the Challenge Responsibly and Sustainably

Situational assessment and strategic plan for BP Venezuela Authorized for release by BP

Wayne Dunn

Cameco Community Relations Report

Situational assessment and management strategy Authorized for release by Cameco

Wayne Dunn

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author Beyond Beads lsquon Trinkets A systematic approach to managing community relations

A conference paper describing a systematic approach to community relations management helping companies to methodically develop mutually beneficial relationships with local communities and interests (this is one of the earliest papers on this subject ndash written in 1998)

Wayne Dunn

The costs of conflict with local communities in the extractive industry

Analysis of the cost of community conflicts in the Extractive Sector

Rachel Davis and Daniel M Franks

Creating Shared Value

Harvard Business Review interview with Michael Porter

Video

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Social License Its all about value

Discussion on Social License and shareholder Value

Wayne Dunn

Its about Development Commentary on the CIDAMining Company issue

Wayne Dunn

Integrating corporate strategy and social responsibilitymdashmarket returns from stakeholder engagement

Discussion and analysis on market returns on stakeholder engagement

Witold J Henisz Sinziana Dorobantu and Lite J Narty

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

McGill Reporter ndash Four Burning Questions Wayne Dunn on CSR

Discussion on CSR Wayne Dunn

Miningrsquos contribution to sustainable development ndashan overview

Discussion paper prepared by the International Council on Mining and Metals

Millennium Development Goals

United Nations

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Mining and Agriculture Development

A short lsquohow torsquo guide for mining projects to engage with the local agriculture sector

Al Hingston

PDSA Social Value Brochure

Brochure on social value created by Placer Dome South Africa

Placer Dome

The Value of Social License

Opinion piece published in Northern Miner

Wayne Dunn

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Golden Opportunity When a Canadian multinational laid off hundreds of gold miners in South Africa it went many extra miles to help them get back on their feet

Stanford Business School Case Study on Placer Dome in South Africa

Wayne Dunn

The Changing Resource Development Paradigm Maximizing Sustainable Local Benefits from Resource Development

Strategic thought piece prepared for the government of British Columbia Canada

Wayne Dunn

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

The Disappearing Barriers Between Business And Non-profits Are Driving Innovation

Discussion paper

Katherine Pikus

When Condoms are not enough

World Bank staff magazine article on Placer Dome and South African mining industryrsquos work with HIVAIDS

Craig Andrews

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

MINING AND LOCAL ECONOMIC DEVELOPMENT IN PAPUA NEW GUINEA Preliminary Research on a Potential Pilot Project in Porgera and Lihir

Strategic research and action plan on mining and local economic development in Papua New Guinea prepared for the World Bank

Wayne Dunn

waynewaynedunncom

What we covered

We 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) Publicprivatecivil society collaboration ndash case study

and discussion (CIDA and Mining Companies) Open discussion on topics of interest (time permitting)

waynewaynedunncom

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 howwhy 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

waynewaynedunncom

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 howwhy 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

waynewaynedunncom

Alignment around Shared Value For shareholders For Communities For People For Governments

Private Sector Contributions To International Development

Remember

  • Private Sector Contributions To International Development
  • Session Objectives
  • Map of the morning How we will try to meet the objectives
  • Slide Number 4
  • What is ODA and FDI
  • What is ODA and FDI
  • Why discuss Private Sector Contribution anyway
  • FDIBusiness Outcomes
  • Intention and Strategy Make a Difference
  • Why does the private sector care
  • Community Consultation and Value
  • Itrsquos Real Money
  • CSR is a Value Strategy
  • Social License Failures cost
  • Why is CSR happening
  • The Mining World Has Changed
  • CSR is a complicated space
  • CSR amp Social License
  • Role of business is changing (click image to play video)
  • Case Studies (of successes)
  • Slide Number 21
  • Uranium Industry in Northern Saskatchewan
  • Challenging area
  • Challenging Times
  • Cameco in 1998
  • Cameco in Northern Saskatchewan (2010)
  • So how did Cameco and the industry do it
  • Placer Dome South Africa
  • Slide Number 29
  • Background
  • Background (cont)
  • Families amp Communities must benefit from mining
  • The Care Project
  • Implications
  • Slide Number 35
  • The Initial 4-Step Plan
  • Reality was different than we expected
  • Reality was different than expected
  • Meeting the challenges
  • TheProcess
  • Some results
  • Chicken raising business
  • Furniture making
  • Unique training programs
  • Rice farming in Mozambique
  • Spaza (convenience) shop
  • And the business value ishellip
  • Slide Number 48
  • What was in it for Placer Dome
  • And then there is HIVAIDS
  • HIVAIDS Facts (in 2000)
  • HIVAIDS Impact
  • HIVAIDS and Gold Mining
  • HIVAIDS Programming
  • Minesite Program
  • Minesite Program
  • Current Community Program
  • Community Mobile Clinic
  • And when HIV prevention doesnrsquot work
  • Industry Home Based Care
  • Home Based Care
  • INDUSTRY HOME BASED CARE RESULTS(Year One)
  • Overview of Placer Dome AIDS Programming
  • Slide Number 64
  • HIVAIDS and Rural Areas
  • HIVAIDS and Rural Areas
  • Reputational Results for Placer Dome
  • Where to next
  • Planned Program
  • Care Positive Summary
  • Andhellip
  • MDG Impacts of Placer Dome in South Africa
  • One thing leads to another
  • PNG HIVAIDS
  • PNG Outcomes (or outputs ndash Irsquom never sure)
  • Slide Number 76
  • PNG AIDS mission to South Africa
  • MDG Impacts of PNG HIVAIDS work
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • MDG Impacts of Eldorado Gold
  • Underwater Logging in Ghana
  • Private Sector and International Development
  • Group Exercise
  • Slide Number 87
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • What we covered
  • Session Objectives
  • Session Objectives
  • Remember
Page 44: Private Sector Contributions To International Development – McGill Executive Education Program Lecture

waynewaynedunncom Slide 44

Unique training programs

waynewaynedunncom Slide 45

Rice farming in Mozambique

Slide 46

Spaza (convenience) shop

Slide 47

And the business value ishellip HIVAIDS 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 ndash 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

waynewaynedunncom Slide 48

ldquoThe project changed the social face of the South African Mining Industryrdquo

Kgosietsile Mogaki

South African Ministry of Minerals and Energy

waynewaynedunncom Slide 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 globally

Through 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 50

And then there is HIVAIDS

RSA ACCOUNTED FOR NEARLY 1 IN 8 OF THE NEW HIV INFECTIONS THAT OCCURRED WORLD WIDE IN 2000

HIV+ PREVALENCE RATE IN WOMEN ATTENDING ANTE-NATAL CLINICS INCREASED FROM 07 IN 1990 TO 248 IN 2001

AVERAGE OF 1700 NEW INFECTIONS PER DAY

LIFE EXPECTANCY WILL DECLINE FROM 65 TO 40 BY 2011

65

40

0

10

20

30

40

50

60

70

2001 2011

Life Expectancy

waynewaynedunncom Slide 51

HIVAIDS Facts (in 2000)

ESTIMATED THAT 12 OF TOTAL RSA POPULATION AND 25 OF MINEWORKERS ARE HIV+

ALREADY 400000 PEOPLE ARE AIDS SICK AND THIS WILL INCREASE TO 14 M BY 2010

YOUNG WOMEN PARTICULARLY VULNERABLE ndash 239 AGED BETWEEN 15 ndash 49 ALREADY INFECTED AND WILL RISE TO 297 BY 2007

AIDS ORPHANS AT PRESENT AMOUNT TO 660000+ AND WILL RISE TO 18M BY 2015

ACCUMULATIVE AIDS DEATHS WILL RISE TO 9M BY 2015

Slide 52

HIVAIDS Impact REDUCED ECONOMIC GROWTH RATE ndash 2010 GDP 20 below a non AIDS

scenario REDUCED POPULATION ndash RSA population 10M smaller than non AIDS scenario SKYROCKETING DEMANDS ON PUBLIC HEALTH SYSTEM - RADICALLY CHANGED PRIVATE SPENDING PATTERNS ndash to healthcare and

funeral costs IMPACT ON SOCIO-ECONOMIC STABILITY (orphans)

HIVAIDS 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 Africa today Nobody can afford to ignore it

Slide 53

HIVAIDS and Gold Mining

$10oz impact if nothing is done (5 of production costs) ~$3oz with maximum

intervention Impact on social and political

stability

Slide 54

HIVAIDS Programming Placer Dome program ndash

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 55

Minesite Program

TRAINING AND EDUCATION

STI amp TB TREATMENT

CONDOM DISTRIBUTION

PEER EDUCATION

VOLUNTARY COUNSELING AND TESTING (VCT)

WELLNESS PROGRAM

MEDICAL REPATRIATION

waynewaynedunncom Slide 56

Minesite Program

waynewaynedunncom Slide 57

Current Community Program

AWARENESS AND EDUCATION PROGRAMS

MOBILE CLINIC

CONDOM amp FEMIDOM DISTRIBUTION

PERIODIC PRESUMPTIVE TREATMENT (PPT)

TREATMENT FOR SEXUALLY TRANSMITTED INFECTIONS ( STI)

waynewaynedunncom Slide 58

COMMUNITY PROGRAM

Community Mobile Clinic

waynewaynedunncom Slide 59

And when HIV prevention doesnrsquot 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 60

Industry Home Based Care

TEBA INFRA-STRUCTURE

TRAINING OF CARE GIVERS

SUPPORT STRUCTURE ndash QUALIFIED STAFF

MONTHLY MEDICATION

WORK WITH OTHER STAKEHOLDERS (EG TRADITIONAL HEALERS)

WORLD BANK DEVELOPMENT INNOVATION AWARD

waynewaynedunncom Slide 61

Home Based Care

Slide 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

waynewaynedunncom Slide 63

Overview of Placer Dome AIDS Programming SOUTH DEEP Sustainable Development Department

bullVoluntary Counseling and testing HIV Negative bullContinue working

On Mine Program Community Program

Modified work program Farm bullAgricultural work Environmental

Medical repatriation

Home Based Care

Benefits Care Positive

HBC EC OPP

Back to work or Re skilled

Wellness Program

waynewaynedunncom Slide 64

But what happens to children and families when the breadwinner canrsquot

work

Slide 65

HIVAIDS and Rural Areas HIVAIDS 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

Slide 66

HIVAIDS 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

waynewaynedunncom

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 CSREthical

Project Award (2004) Numerous other awards Stanford Case Study

waynewaynedunncom Slide 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 69

Planned Program

Care Positive Integrate the Home Based Care

project with the Care process and launch as a fee for service based program to address the social and 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

Care Process

+

Home Based Care

=

Care Positive

waynewaynedunncom Slide 70

Care Positive Summary

waynewaynedunncom

Andhellip 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 $100000 and considerable reputational capital into them Industry went forward with modified HIVAIDS

programming but huge developmental impacts were lost

waynewaynedunncom Slide 72

MDG Impacts of Placer Dome in South Africa

1 Poverty and hunger 2 Some impact on primary education (School

feeding program) 3 Promote gender equality and empower women 4 Reduce child mortality 5 Improve maternal health 6 Combat HIVAIDS malaria and other diseass 7 Ensure environmental sustainability 8 Develop a global partnership for development

(Placer Dome CIDA Civil Society NGOs)

waynewaynedunncom

One thing leads to another

World Bank observed how Placer Domersquos leadership on HIVAIDS 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

waynewaynedunncom

PNG HIVAIDS Scoping mission to

determine what might be done and how Enthusiastic interest from

industry government multi-laterals (WHO UNAIDS World Banketc) ODA (AusAID) CIDA partnered with Place Dome to develop an

HIVAIDS strategy for PNG that integrated industry public sector civil society and international community

waynewaynedunncom

PNG Outcomes (or outputs ndash Irsquom never sure) Partnership with Mining

Industry Civil Society WHO UNAIDS UNDP World Bank PNG AIDS AusAID Oil Palm Industry etc National workshop on

HIVAIDS and publicprivate partnerships SouthSouth Collaboration

Industry government civil society international community study trip to South Africa

waynewaynedunncom

waynewaynedunncom

PNG AIDS mission to South Africa

waynewaynedunncom Slide 78

MDG Impacts of PNG HIVAIDS work

1 Poverty and hunger (nutritional supplements) 2 Some impact on primary education (peripheral) 3 Promote gender equality and empower women 4 Reduce child mortality 5 Improve maternal health 6 Combat HIVAIDS malaria and other diseass 7 Ensure environmental sustainability 8 Develop a global partnership for development

(Placer Dome CIDA Civil Society NGOs)

waynewaynedunncom

Eldorado Gold in Turkey

Major gold find in WestCentral Turkey No successful

mining project launched in decades Eurogold project

built launched and halted by community action in late 1990s ndash still mothballed

UsakKislidag Minesite

Eurogold site

waynewaynedunncom

Eldorado Gold in Turkey

Isolated rural area Nearly half of nearby

communities opposed to mine development Agriculture primary

economic activity in rural communities ndash smallmicro family farms

waynewaynedunncom

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

waynewaynedunncom

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 $075 to $1325 Opened second mine in Turkey

bull Able to deal with controversial watershed issues after relationship success in Usak

waynewaynedunncom Slide 83

MDG Impacts of Eldorado Gold

1 Poverty and hunger (minimal) 2 Some impact on primary education (peripheral) 3 Promote gender equality and empower women 4 Reduce child mortality 5 Improve maternal health 6 Combat HIVAIDS malaria and other diseass 7 Ensure environmental sustainability 8 Develop a global partnership for development

(Placer Dome CIDA Civil Society NGOs)

waynewaynedunncom

Underwater Logging in Ghana

waynewaynedunncom

Private Sector and International Development

Private sector especially resource extraction has a very mixed record bull Some horrendous disasters (Nigeria Warao Peoples in

Venezuela etc) bull Some great successes (Placer Dome Care project

mining and HIVAIDS 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

waynewaynedunncom

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

interestsobjectives overlap

waynewaynedunncom

SDCSR Implementation Challenges

more than a warm fuzzy issue Spending isnrsquot the answer

Plan

Framework

System

Results

Solving social problems Objectives

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Beyond Beads and Trinkets ndash BC Mining Review

A lsquohow torsquo article on mining and CSR

Wayne Dunn

BP Venezuela Indigenous Relations ndash Meeting the Challenge Responsibly and Sustainably

Situational assessment and strategic plan for BP Venezuela Authorized for release by BP

Wayne Dunn

Cameco Community Relations Report

Situational assessment and management strategy Authorized for release by Cameco

Wayne Dunn

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author Beyond Beads lsquon Trinkets A systematic approach to managing community relations

A conference paper describing a systematic approach to community relations management helping companies to methodically develop mutually beneficial relationships with local communities and interests (this is one of the earliest papers on this subject ndash written in 1998)

Wayne Dunn

The costs of conflict with local communities in the extractive industry

Analysis of the cost of community conflicts in the Extractive Sector

Rachel Davis and Daniel M Franks

Creating Shared Value

Harvard Business Review interview with Michael Porter

Video

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Social License Its all about value

Discussion on Social License and shareholder Value

Wayne Dunn

Its about Development Commentary on the CIDAMining Company issue

Wayne Dunn

Integrating corporate strategy and social responsibilitymdashmarket returns from stakeholder engagement

Discussion and analysis on market returns on stakeholder engagement

Witold J Henisz Sinziana Dorobantu and Lite J Narty

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

McGill Reporter ndash Four Burning Questions Wayne Dunn on CSR

Discussion on CSR Wayne Dunn

Miningrsquos contribution to sustainable development ndashan overview

Discussion paper prepared by the International Council on Mining and Metals

Millennium Development Goals

United Nations

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Mining and Agriculture Development

A short lsquohow torsquo guide for mining projects to engage with the local agriculture sector

Al Hingston

PDSA Social Value Brochure

Brochure on social value created by Placer Dome South Africa

Placer Dome

The Value of Social License

Opinion piece published in Northern Miner

Wayne Dunn

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Golden Opportunity When a Canadian multinational laid off hundreds of gold miners in South Africa it went many extra miles to help them get back on their feet

Stanford Business School Case Study on Placer Dome in South Africa

Wayne Dunn

The Changing Resource Development Paradigm Maximizing Sustainable Local Benefits from Resource Development

Strategic thought piece prepared for the government of British Columbia Canada

Wayne Dunn

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

The Disappearing Barriers Between Business And Non-profits Are Driving Innovation

Discussion paper

Katherine Pikus

When Condoms are not enough

World Bank staff magazine article on Placer Dome and South African mining industryrsquos work with HIVAIDS

Craig Andrews

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

MINING AND LOCAL ECONOMIC DEVELOPMENT IN PAPUA NEW GUINEA Preliminary Research on a Potential Pilot Project in Porgera and Lihir

Strategic research and action plan on mining and local economic development in Papua New Guinea prepared for the World Bank

Wayne Dunn

waynewaynedunncom

What we covered

We 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) Publicprivatecivil society collaboration ndash case study

and discussion (CIDA and Mining Companies) Open discussion on topics of interest (time permitting)

waynewaynedunncom

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 howwhy 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

waynewaynedunncom

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 howwhy 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

waynewaynedunncom

Alignment around Shared Value For shareholders For Communities For People For Governments

Private Sector Contributions To International Development

Remember

  • Private Sector Contributions To International Development
  • Session Objectives
  • Map of the morning How we will try to meet the objectives
  • Slide Number 4
  • What is ODA and FDI
  • What is ODA and FDI
  • Why discuss Private Sector Contribution anyway
  • FDIBusiness Outcomes
  • Intention and Strategy Make a Difference
  • Why does the private sector care
  • Community Consultation and Value
  • Itrsquos Real Money
  • CSR is a Value Strategy
  • Social License Failures cost
  • Why is CSR happening
  • The Mining World Has Changed
  • CSR is a complicated space
  • CSR amp Social License
  • Role of business is changing (click image to play video)
  • Case Studies (of successes)
  • Slide Number 21
  • Uranium Industry in Northern Saskatchewan
  • Challenging area
  • Challenging Times
  • Cameco in 1998
  • Cameco in Northern Saskatchewan (2010)
  • So how did Cameco and the industry do it
  • Placer Dome South Africa
  • Slide Number 29
  • Background
  • Background (cont)
  • Families amp Communities must benefit from mining
  • The Care Project
  • Implications
  • Slide Number 35
  • The Initial 4-Step Plan
  • Reality was different than we expected
  • Reality was different than expected
  • Meeting the challenges
  • TheProcess
  • Some results
  • Chicken raising business
  • Furniture making
  • Unique training programs
  • Rice farming in Mozambique
  • Spaza (convenience) shop
  • And the business value ishellip
  • Slide Number 48
  • What was in it for Placer Dome
  • And then there is HIVAIDS
  • HIVAIDS Facts (in 2000)
  • HIVAIDS Impact
  • HIVAIDS and Gold Mining
  • HIVAIDS Programming
  • Minesite Program
  • Minesite Program
  • Current Community Program
  • Community Mobile Clinic
  • And when HIV prevention doesnrsquot work
  • Industry Home Based Care
  • Home Based Care
  • INDUSTRY HOME BASED CARE RESULTS(Year One)
  • Overview of Placer Dome AIDS Programming
  • Slide Number 64
  • HIVAIDS and Rural Areas
  • HIVAIDS and Rural Areas
  • Reputational Results for Placer Dome
  • Where to next
  • Planned Program
  • Care Positive Summary
  • Andhellip
  • MDG Impacts of Placer Dome in South Africa
  • One thing leads to another
  • PNG HIVAIDS
  • PNG Outcomes (or outputs ndash Irsquom never sure)
  • Slide Number 76
  • PNG AIDS mission to South Africa
  • MDG Impacts of PNG HIVAIDS work
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • MDG Impacts of Eldorado Gold
  • Underwater Logging in Ghana
  • Private Sector and International Development
  • Group Exercise
  • Slide Number 87
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • What we covered
  • Session Objectives
  • Session Objectives
  • Remember
Page 45: Private Sector Contributions To International Development – McGill Executive Education Program Lecture

waynewaynedunncom Slide 45

Rice farming in Mozambique

Slide 46

Spaza (convenience) shop

Slide 47

And the business value ishellip HIVAIDS 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 ndash 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

waynewaynedunncom Slide 48

ldquoThe project changed the social face of the South African Mining Industryrdquo

Kgosietsile Mogaki

South African Ministry of Minerals and Energy

waynewaynedunncom Slide 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 globally

Through 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 50

And then there is HIVAIDS

RSA ACCOUNTED FOR NEARLY 1 IN 8 OF THE NEW HIV INFECTIONS THAT OCCURRED WORLD WIDE IN 2000

HIV+ PREVALENCE RATE IN WOMEN ATTENDING ANTE-NATAL CLINICS INCREASED FROM 07 IN 1990 TO 248 IN 2001

AVERAGE OF 1700 NEW INFECTIONS PER DAY

LIFE EXPECTANCY WILL DECLINE FROM 65 TO 40 BY 2011

65

40

0

10

20

30

40

50

60

70

2001 2011

Life Expectancy

waynewaynedunncom Slide 51

HIVAIDS Facts (in 2000)

ESTIMATED THAT 12 OF TOTAL RSA POPULATION AND 25 OF MINEWORKERS ARE HIV+

ALREADY 400000 PEOPLE ARE AIDS SICK AND THIS WILL INCREASE TO 14 M BY 2010

YOUNG WOMEN PARTICULARLY VULNERABLE ndash 239 AGED BETWEEN 15 ndash 49 ALREADY INFECTED AND WILL RISE TO 297 BY 2007

AIDS ORPHANS AT PRESENT AMOUNT TO 660000+ AND WILL RISE TO 18M BY 2015

ACCUMULATIVE AIDS DEATHS WILL RISE TO 9M BY 2015

Slide 52

HIVAIDS Impact REDUCED ECONOMIC GROWTH RATE ndash 2010 GDP 20 below a non AIDS

scenario REDUCED POPULATION ndash RSA population 10M smaller than non AIDS scenario SKYROCKETING DEMANDS ON PUBLIC HEALTH SYSTEM - RADICALLY CHANGED PRIVATE SPENDING PATTERNS ndash to healthcare and

funeral costs IMPACT ON SOCIO-ECONOMIC STABILITY (orphans)

HIVAIDS 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 Africa today Nobody can afford to ignore it

Slide 53

HIVAIDS and Gold Mining

$10oz impact if nothing is done (5 of production costs) ~$3oz with maximum

intervention Impact on social and political

stability

Slide 54

HIVAIDS Programming Placer Dome program ndash

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 55

Minesite Program

TRAINING AND EDUCATION

STI amp TB TREATMENT

CONDOM DISTRIBUTION

PEER EDUCATION

VOLUNTARY COUNSELING AND TESTING (VCT)

WELLNESS PROGRAM

MEDICAL REPATRIATION

waynewaynedunncom Slide 56

Minesite Program

waynewaynedunncom Slide 57

Current Community Program

AWARENESS AND EDUCATION PROGRAMS

MOBILE CLINIC

CONDOM amp FEMIDOM DISTRIBUTION

PERIODIC PRESUMPTIVE TREATMENT (PPT)

TREATMENT FOR SEXUALLY TRANSMITTED INFECTIONS ( STI)

waynewaynedunncom Slide 58

COMMUNITY PROGRAM

Community Mobile Clinic

waynewaynedunncom Slide 59

And when HIV prevention doesnrsquot 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 60

Industry Home Based Care

TEBA INFRA-STRUCTURE

TRAINING OF CARE GIVERS

SUPPORT STRUCTURE ndash QUALIFIED STAFF

MONTHLY MEDICATION

WORK WITH OTHER STAKEHOLDERS (EG TRADITIONAL HEALERS)

WORLD BANK DEVELOPMENT INNOVATION AWARD

waynewaynedunncom Slide 61

Home Based Care

Slide 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

waynewaynedunncom Slide 63

Overview of Placer Dome AIDS Programming SOUTH DEEP Sustainable Development Department

bullVoluntary Counseling and testing HIV Negative bullContinue working

On Mine Program Community Program

Modified work program Farm bullAgricultural work Environmental

Medical repatriation

Home Based Care

Benefits Care Positive

HBC EC OPP

Back to work or Re skilled

Wellness Program

waynewaynedunncom Slide 64

But what happens to children and families when the breadwinner canrsquot

work

Slide 65

HIVAIDS and Rural Areas HIVAIDS 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

Slide 66

HIVAIDS 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

waynewaynedunncom

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 CSREthical

Project Award (2004) Numerous other awards Stanford Case Study

waynewaynedunncom Slide 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 69

Planned Program

Care Positive Integrate the Home Based Care

project with the Care process and launch as a fee for service based program to address the social and 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

Care Process

+

Home Based Care

=

Care Positive

waynewaynedunncom Slide 70

Care Positive Summary

waynewaynedunncom

Andhellip 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 $100000 and considerable reputational capital into them Industry went forward with modified HIVAIDS

programming but huge developmental impacts were lost

waynewaynedunncom Slide 72

MDG Impacts of Placer Dome in South Africa

1 Poverty and hunger 2 Some impact on primary education (School

feeding program) 3 Promote gender equality and empower women 4 Reduce child mortality 5 Improve maternal health 6 Combat HIVAIDS malaria and other diseass 7 Ensure environmental sustainability 8 Develop a global partnership for development

(Placer Dome CIDA Civil Society NGOs)

waynewaynedunncom

One thing leads to another

World Bank observed how Placer Domersquos leadership on HIVAIDS 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

waynewaynedunncom

PNG HIVAIDS Scoping mission to

determine what might be done and how Enthusiastic interest from

industry government multi-laterals (WHO UNAIDS World Banketc) ODA (AusAID) CIDA partnered with Place Dome to develop an

HIVAIDS strategy for PNG that integrated industry public sector civil society and international community

waynewaynedunncom

PNG Outcomes (or outputs ndash Irsquom never sure) Partnership with Mining

Industry Civil Society WHO UNAIDS UNDP World Bank PNG AIDS AusAID Oil Palm Industry etc National workshop on

HIVAIDS and publicprivate partnerships SouthSouth Collaboration

Industry government civil society international community study trip to South Africa

waynewaynedunncom

waynewaynedunncom

PNG AIDS mission to South Africa

waynewaynedunncom Slide 78

MDG Impacts of PNG HIVAIDS work

1 Poverty and hunger (nutritional supplements) 2 Some impact on primary education (peripheral) 3 Promote gender equality and empower women 4 Reduce child mortality 5 Improve maternal health 6 Combat HIVAIDS malaria and other diseass 7 Ensure environmental sustainability 8 Develop a global partnership for development

(Placer Dome CIDA Civil Society NGOs)

waynewaynedunncom

Eldorado Gold in Turkey

Major gold find in WestCentral Turkey No successful

mining project launched in decades Eurogold project

built launched and halted by community action in late 1990s ndash still mothballed

UsakKislidag Minesite

Eurogold site

waynewaynedunncom

Eldorado Gold in Turkey

Isolated rural area Nearly half of nearby

communities opposed to mine development Agriculture primary

economic activity in rural communities ndash smallmicro family farms

waynewaynedunncom

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

waynewaynedunncom

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 $075 to $1325 Opened second mine in Turkey

bull Able to deal with controversial watershed issues after relationship success in Usak

waynewaynedunncom Slide 83

MDG Impacts of Eldorado Gold

1 Poverty and hunger (minimal) 2 Some impact on primary education (peripheral) 3 Promote gender equality and empower women 4 Reduce child mortality 5 Improve maternal health 6 Combat HIVAIDS malaria and other diseass 7 Ensure environmental sustainability 8 Develop a global partnership for development

(Placer Dome CIDA Civil Society NGOs)

waynewaynedunncom

Underwater Logging in Ghana

waynewaynedunncom

Private Sector and International Development

Private sector especially resource extraction has a very mixed record bull Some horrendous disasters (Nigeria Warao Peoples in

Venezuela etc) bull Some great successes (Placer Dome Care project

mining and HIVAIDS 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

waynewaynedunncom

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

interestsobjectives overlap

waynewaynedunncom

SDCSR Implementation Challenges

more than a warm fuzzy issue Spending isnrsquot the answer

Plan

Framework

System

Results

Solving social problems Objectives

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Beyond Beads and Trinkets ndash BC Mining Review

A lsquohow torsquo article on mining and CSR

Wayne Dunn

BP Venezuela Indigenous Relations ndash Meeting the Challenge Responsibly and Sustainably

Situational assessment and strategic plan for BP Venezuela Authorized for release by BP

Wayne Dunn

Cameco Community Relations Report

Situational assessment and management strategy Authorized for release by Cameco

Wayne Dunn

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author Beyond Beads lsquon Trinkets A systematic approach to managing community relations

A conference paper describing a systematic approach to community relations management helping companies to methodically develop mutually beneficial relationships with local communities and interests (this is one of the earliest papers on this subject ndash written in 1998)

Wayne Dunn

The costs of conflict with local communities in the extractive industry

Analysis of the cost of community conflicts in the Extractive Sector

Rachel Davis and Daniel M Franks

Creating Shared Value

Harvard Business Review interview with Michael Porter

Video

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Social License Its all about value

Discussion on Social License and shareholder Value

Wayne Dunn

Its about Development Commentary on the CIDAMining Company issue

Wayne Dunn

Integrating corporate strategy and social responsibilitymdashmarket returns from stakeholder engagement

Discussion and analysis on market returns on stakeholder engagement

Witold J Henisz Sinziana Dorobantu and Lite J Narty

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

McGill Reporter ndash Four Burning Questions Wayne Dunn on CSR

Discussion on CSR Wayne Dunn

Miningrsquos contribution to sustainable development ndashan overview

Discussion paper prepared by the International Council on Mining and Metals

Millennium Development Goals

United Nations

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Mining and Agriculture Development

A short lsquohow torsquo guide for mining projects to engage with the local agriculture sector

Al Hingston

PDSA Social Value Brochure

Brochure on social value created by Placer Dome South Africa

Placer Dome

The Value of Social License

Opinion piece published in Northern Miner

Wayne Dunn

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Golden Opportunity When a Canadian multinational laid off hundreds of gold miners in South Africa it went many extra miles to help them get back on their feet

Stanford Business School Case Study on Placer Dome in South Africa

Wayne Dunn

The Changing Resource Development Paradigm Maximizing Sustainable Local Benefits from Resource Development

Strategic thought piece prepared for the government of British Columbia Canada

Wayne Dunn

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

The Disappearing Barriers Between Business And Non-profits Are Driving Innovation

Discussion paper

Katherine Pikus

When Condoms are not enough

World Bank staff magazine article on Placer Dome and South African mining industryrsquos work with HIVAIDS

Craig Andrews

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

MINING AND LOCAL ECONOMIC DEVELOPMENT IN PAPUA NEW GUINEA Preliminary Research on a Potential Pilot Project in Porgera and Lihir

Strategic research and action plan on mining and local economic development in Papua New Guinea prepared for the World Bank

Wayne Dunn

waynewaynedunncom

What we covered

We 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) Publicprivatecivil society collaboration ndash case study

and discussion (CIDA and Mining Companies) Open discussion on topics of interest (time permitting)

waynewaynedunncom

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 howwhy 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

waynewaynedunncom

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 howwhy 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

waynewaynedunncom

Alignment around Shared Value For shareholders For Communities For People For Governments

Private Sector Contributions To International Development

Remember

  • Private Sector Contributions To International Development
  • Session Objectives
  • Map of the morning How we will try to meet the objectives
  • Slide Number 4
  • What is ODA and FDI
  • What is ODA and FDI
  • Why discuss Private Sector Contribution anyway
  • FDIBusiness Outcomes
  • Intention and Strategy Make a Difference
  • Why does the private sector care
  • Community Consultation and Value
  • Itrsquos Real Money
  • CSR is a Value Strategy
  • Social License Failures cost
  • Why is CSR happening
  • The Mining World Has Changed
  • CSR is a complicated space
  • CSR amp Social License
  • Role of business is changing (click image to play video)
  • Case Studies (of successes)
  • Slide Number 21
  • Uranium Industry in Northern Saskatchewan
  • Challenging area
  • Challenging Times
  • Cameco in 1998
  • Cameco in Northern Saskatchewan (2010)
  • So how did Cameco and the industry do it
  • Placer Dome South Africa
  • Slide Number 29
  • Background
  • Background (cont)
  • Families amp Communities must benefit from mining
  • The Care Project
  • Implications
  • Slide Number 35
  • The Initial 4-Step Plan
  • Reality was different than we expected
  • Reality was different than expected
  • Meeting the challenges
  • TheProcess
  • Some results
  • Chicken raising business
  • Furniture making
  • Unique training programs
  • Rice farming in Mozambique
  • Spaza (convenience) shop
  • And the business value ishellip
  • Slide Number 48
  • What was in it for Placer Dome
  • And then there is HIVAIDS
  • HIVAIDS Facts (in 2000)
  • HIVAIDS Impact
  • HIVAIDS and Gold Mining
  • HIVAIDS Programming
  • Minesite Program
  • Minesite Program
  • Current Community Program
  • Community Mobile Clinic
  • And when HIV prevention doesnrsquot work
  • Industry Home Based Care
  • Home Based Care
  • INDUSTRY HOME BASED CARE RESULTS(Year One)
  • Overview of Placer Dome AIDS Programming
  • Slide Number 64
  • HIVAIDS and Rural Areas
  • HIVAIDS and Rural Areas
  • Reputational Results for Placer Dome
  • Where to next
  • Planned Program
  • Care Positive Summary
  • Andhellip
  • MDG Impacts of Placer Dome in South Africa
  • One thing leads to another
  • PNG HIVAIDS
  • PNG Outcomes (or outputs ndash Irsquom never sure)
  • Slide Number 76
  • PNG AIDS mission to South Africa
  • MDG Impacts of PNG HIVAIDS work
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • MDG Impacts of Eldorado Gold
  • Underwater Logging in Ghana
  • Private Sector and International Development
  • Group Exercise
  • Slide Number 87
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • What we covered
  • Session Objectives
  • Session Objectives
  • Remember
Page 46: Private Sector Contributions To International Development – McGill Executive Education Program Lecture

Slide 46

Spaza (convenience) shop

Slide 47

And the business value ishellip HIVAIDS 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 ndash 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

waynewaynedunncom Slide 48

ldquoThe project changed the social face of the South African Mining Industryrdquo

Kgosietsile Mogaki

South African Ministry of Minerals and Energy

waynewaynedunncom Slide 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 globally

Through 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 50

And then there is HIVAIDS

RSA ACCOUNTED FOR NEARLY 1 IN 8 OF THE NEW HIV INFECTIONS THAT OCCURRED WORLD WIDE IN 2000

HIV+ PREVALENCE RATE IN WOMEN ATTENDING ANTE-NATAL CLINICS INCREASED FROM 07 IN 1990 TO 248 IN 2001

AVERAGE OF 1700 NEW INFECTIONS PER DAY

LIFE EXPECTANCY WILL DECLINE FROM 65 TO 40 BY 2011

65

40

0

10

20

30

40

50

60

70

2001 2011

Life Expectancy

waynewaynedunncom Slide 51

HIVAIDS Facts (in 2000)

ESTIMATED THAT 12 OF TOTAL RSA POPULATION AND 25 OF MINEWORKERS ARE HIV+

ALREADY 400000 PEOPLE ARE AIDS SICK AND THIS WILL INCREASE TO 14 M BY 2010

YOUNG WOMEN PARTICULARLY VULNERABLE ndash 239 AGED BETWEEN 15 ndash 49 ALREADY INFECTED AND WILL RISE TO 297 BY 2007

AIDS ORPHANS AT PRESENT AMOUNT TO 660000+ AND WILL RISE TO 18M BY 2015

ACCUMULATIVE AIDS DEATHS WILL RISE TO 9M BY 2015

Slide 52

HIVAIDS Impact REDUCED ECONOMIC GROWTH RATE ndash 2010 GDP 20 below a non AIDS

scenario REDUCED POPULATION ndash RSA population 10M smaller than non AIDS scenario SKYROCKETING DEMANDS ON PUBLIC HEALTH SYSTEM - RADICALLY CHANGED PRIVATE SPENDING PATTERNS ndash to healthcare and

funeral costs IMPACT ON SOCIO-ECONOMIC STABILITY (orphans)

HIVAIDS 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 Africa today Nobody can afford to ignore it

Slide 53

HIVAIDS and Gold Mining

$10oz impact if nothing is done (5 of production costs) ~$3oz with maximum

intervention Impact on social and political

stability

Slide 54

HIVAIDS Programming Placer Dome program ndash

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 55

Minesite Program

TRAINING AND EDUCATION

STI amp TB TREATMENT

CONDOM DISTRIBUTION

PEER EDUCATION

VOLUNTARY COUNSELING AND TESTING (VCT)

WELLNESS PROGRAM

MEDICAL REPATRIATION

waynewaynedunncom Slide 56

Minesite Program

waynewaynedunncom Slide 57

Current Community Program

AWARENESS AND EDUCATION PROGRAMS

MOBILE CLINIC

CONDOM amp FEMIDOM DISTRIBUTION

PERIODIC PRESUMPTIVE TREATMENT (PPT)

TREATMENT FOR SEXUALLY TRANSMITTED INFECTIONS ( STI)

waynewaynedunncom Slide 58

COMMUNITY PROGRAM

Community Mobile Clinic

waynewaynedunncom Slide 59

And when HIV prevention doesnrsquot 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 60

Industry Home Based Care

TEBA INFRA-STRUCTURE

TRAINING OF CARE GIVERS

SUPPORT STRUCTURE ndash QUALIFIED STAFF

MONTHLY MEDICATION

WORK WITH OTHER STAKEHOLDERS (EG TRADITIONAL HEALERS)

WORLD BANK DEVELOPMENT INNOVATION AWARD

waynewaynedunncom Slide 61

Home Based Care

Slide 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

waynewaynedunncom Slide 63

Overview of Placer Dome AIDS Programming SOUTH DEEP Sustainable Development Department

bullVoluntary Counseling and testing HIV Negative bullContinue working

On Mine Program Community Program

Modified work program Farm bullAgricultural work Environmental

Medical repatriation

Home Based Care

Benefits Care Positive

HBC EC OPP

Back to work or Re skilled

Wellness Program

waynewaynedunncom Slide 64

But what happens to children and families when the breadwinner canrsquot

work

Slide 65

HIVAIDS and Rural Areas HIVAIDS 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

Slide 66

HIVAIDS 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

waynewaynedunncom

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 CSREthical

Project Award (2004) Numerous other awards Stanford Case Study

waynewaynedunncom Slide 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 69

Planned Program

Care Positive Integrate the Home Based Care

project with the Care process and launch as a fee for service based program to address the social and 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

Care Process

+

Home Based Care

=

Care Positive

waynewaynedunncom Slide 70

Care Positive Summary

waynewaynedunncom

Andhellip 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 $100000 and considerable reputational capital into them Industry went forward with modified HIVAIDS

programming but huge developmental impacts were lost

waynewaynedunncom Slide 72

MDG Impacts of Placer Dome in South Africa

1 Poverty and hunger 2 Some impact on primary education (School

feeding program) 3 Promote gender equality and empower women 4 Reduce child mortality 5 Improve maternal health 6 Combat HIVAIDS malaria and other diseass 7 Ensure environmental sustainability 8 Develop a global partnership for development

(Placer Dome CIDA Civil Society NGOs)

waynewaynedunncom

One thing leads to another

World Bank observed how Placer Domersquos leadership on HIVAIDS 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

waynewaynedunncom

PNG HIVAIDS Scoping mission to

determine what might be done and how Enthusiastic interest from

industry government multi-laterals (WHO UNAIDS World Banketc) ODA (AusAID) CIDA partnered with Place Dome to develop an

HIVAIDS strategy for PNG that integrated industry public sector civil society and international community

waynewaynedunncom

PNG Outcomes (or outputs ndash Irsquom never sure) Partnership with Mining

Industry Civil Society WHO UNAIDS UNDP World Bank PNG AIDS AusAID Oil Palm Industry etc National workshop on

HIVAIDS and publicprivate partnerships SouthSouth Collaboration

Industry government civil society international community study trip to South Africa

waynewaynedunncom

waynewaynedunncom

PNG AIDS mission to South Africa

waynewaynedunncom Slide 78

MDG Impacts of PNG HIVAIDS work

1 Poverty and hunger (nutritional supplements) 2 Some impact on primary education (peripheral) 3 Promote gender equality and empower women 4 Reduce child mortality 5 Improve maternal health 6 Combat HIVAIDS malaria and other diseass 7 Ensure environmental sustainability 8 Develop a global partnership for development

(Placer Dome CIDA Civil Society NGOs)

waynewaynedunncom

Eldorado Gold in Turkey

Major gold find in WestCentral Turkey No successful

mining project launched in decades Eurogold project

built launched and halted by community action in late 1990s ndash still mothballed

UsakKislidag Minesite

Eurogold site

waynewaynedunncom

Eldorado Gold in Turkey

Isolated rural area Nearly half of nearby

communities opposed to mine development Agriculture primary

economic activity in rural communities ndash smallmicro family farms

waynewaynedunncom

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

waynewaynedunncom

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 $075 to $1325 Opened second mine in Turkey

bull Able to deal with controversial watershed issues after relationship success in Usak

waynewaynedunncom Slide 83

MDG Impacts of Eldorado Gold

1 Poverty and hunger (minimal) 2 Some impact on primary education (peripheral) 3 Promote gender equality and empower women 4 Reduce child mortality 5 Improve maternal health 6 Combat HIVAIDS malaria and other diseass 7 Ensure environmental sustainability 8 Develop a global partnership for development

(Placer Dome CIDA Civil Society NGOs)

waynewaynedunncom

Underwater Logging in Ghana

waynewaynedunncom

Private Sector and International Development

Private sector especially resource extraction has a very mixed record bull Some horrendous disasters (Nigeria Warao Peoples in

Venezuela etc) bull Some great successes (Placer Dome Care project

mining and HIVAIDS 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

waynewaynedunncom

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

interestsobjectives overlap

waynewaynedunncom

SDCSR Implementation Challenges

more than a warm fuzzy issue Spending isnrsquot the answer

Plan

Framework

System

Results

Solving social problems Objectives

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Beyond Beads and Trinkets ndash BC Mining Review

A lsquohow torsquo article on mining and CSR

Wayne Dunn

BP Venezuela Indigenous Relations ndash Meeting the Challenge Responsibly and Sustainably

Situational assessment and strategic plan for BP Venezuela Authorized for release by BP

Wayne Dunn

Cameco Community Relations Report

Situational assessment and management strategy Authorized for release by Cameco

Wayne Dunn

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author Beyond Beads lsquon Trinkets A systematic approach to managing community relations

A conference paper describing a systematic approach to community relations management helping companies to methodically develop mutually beneficial relationships with local communities and interests (this is one of the earliest papers on this subject ndash written in 1998)

Wayne Dunn

The costs of conflict with local communities in the extractive industry

Analysis of the cost of community conflicts in the Extractive Sector

Rachel Davis and Daniel M Franks

Creating Shared Value

Harvard Business Review interview with Michael Porter

Video

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Social License Its all about value

Discussion on Social License and shareholder Value

Wayne Dunn

Its about Development Commentary on the CIDAMining Company issue

Wayne Dunn

Integrating corporate strategy and social responsibilitymdashmarket returns from stakeholder engagement

Discussion and analysis on market returns on stakeholder engagement

Witold J Henisz Sinziana Dorobantu and Lite J Narty

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

McGill Reporter ndash Four Burning Questions Wayne Dunn on CSR

Discussion on CSR Wayne Dunn

Miningrsquos contribution to sustainable development ndashan overview

Discussion paper prepared by the International Council on Mining and Metals

Millennium Development Goals

United Nations

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Mining and Agriculture Development

A short lsquohow torsquo guide for mining projects to engage with the local agriculture sector

Al Hingston

PDSA Social Value Brochure

Brochure on social value created by Placer Dome South Africa

Placer Dome

The Value of Social License

Opinion piece published in Northern Miner

Wayne Dunn

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Golden Opportunity When a Canadian multinational laid off hundreds of gold miners in South Africa it went many extra miles to help them get back on their feet

Stanford Business School Case Study on Placer Dome in South Africa

Wayne Dunn

The Changing Resource Development Paradigm Maximizing Sustainable Local Benefits from Resource Development

Strategic thought piece prepared for the government of British Columbia Canada

Wayne Dunn

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

The Disappearing Barriers Between Business And Non-profits Are Driving Innovation

Discussion paper

Katherine Pikus

When Condoms are not enough

World Bank staff magazine article on Placer Dome and South African mining industryrsquos work with HIVAIDS

Craig Andrews

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

MINING AND LOCAL ECONOMIC DEVELOPMENT IN PAPUA NEW GUINEA Preliminary Research on a Potential Pilot Project in Porgera and Lihir

Strategic research and action plan on mining and local economic development in Papua New Guinea prepared for the World Bank

Wayne Dunn

waynewaynedunncom

What we covered

We 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) Publicprivatecivil society collaboration ndash case study

and discussion (CIDA and Mining Companies) Open discussion on topics of interest (time permitting)

waynewaynedunncom

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 howwhy 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

waynewaynedunncom

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 howwhy 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

waynewaynedunncom

Alignment around Shared Value For shareholders For Communities For People For Governments

Private Sector Contributions To International Development

Remember

  • Private Sector Contributions To International Development
  • Session Objectives
  • Map of the morning How we will try to meet the objectives
  • Slide Number 4
  • What is ODA and FDI
  • What is ODA and FDI
  • Why discuss Private Sector Contribution anyway
  • FDIBusiness Outcomes
  • Intention and Strategy Make a Difference
  • Why does the private sector care
  • Community Consultation and Value
  • Itrsquos Real Money
  • CSR is a Value Strategy
  • Social License Failures cost
  • Why is CSR happening
  • The Mining World Has Changed
  • CSR is a complicated space
  • CSR amp Social License
  • Role of business is changing (click image to play video)
  • Case Studies (of successes)
  • Slide Number 21
  • Uranium Industry in Northern Saskatchewan
  • Challenging area
  • Challenging Times
  • Cameco in 1998
  • Cameco in Northern Saskatchewan (2010)
  • So how did Cameco and the industry do it
  • Placer Dome South Africa
  • Slide Number 29
  • Background
  • Background (cont)
  • Families amp Communities must benefit from mining
  • The Care Project
  • Implications
  • Slide Number 35
  • The Initial 4-Step Plan
  • Reality was different than we expected
  • Reality was different than expected
  • Meeting the challenges
  • TheProcess
  • Some results
  • Chicken raising business
  • Furniture making
  • Unique training programs
  • Rice farming in Mozambique
  • Spaza (convenience) shop
  • And the business value ishellip
  • Slide Number 48
  • What was in it for Placer Dome
  • And then there is HIVAIDS
  • HIVAIDS Facts (in 2000)
  • HIVAIDS Impact
  • HIVAIDS and Gold Mining
  • HIVAIDS Programming
  • Minesite Program
  • Minesite Program
  • Current Community Program
  • Community Mobile Clinic
  • And when HIV prevention doesnrsquot work
  • Industry Home Based Care
  • Home Based Care
  • INDUSTRY HOME BASED CARE RESULTS(Year One)
  • Overview of Placer Dome AIDS Programming
  • Slide Number 64
  • HIVAIDS and Rural Areas
  • HIVAIDS and Rural Areas
  • Reputational Results for Placer Dome
  • Where to next
  • Planned Program
  • Care Positive Summary
  • Andhellip
  • MDG Impacts of Placer Dome in South Africa
  • One thing leads to another
  • PNG HIVAIDS
  • PNG Outcomes (or outputs ndash Irsquom never sure)
  • Slide Number 76
  • PNG AIDS mission to South Africa
  • MDG Impacts of PNG HIVAIDS work
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • MDG Impacts of Eldorado Gold
  • Underwater Logging in Ghana
  • Private Sector and International Development
  • Group Exercise
  • Slide Number 87
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • What we covered
  • Session Objectives
  • Session Objectives
  • Remember
Page 47: Private Sector Contributions To International Development – McGill Executive Education Program Lecture

Slide 47

And the business value ishellip HIVAIDS 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 ndash 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

waynewaynedunncom Slide 48

ldquoThe project changed the social face of the South African Mining Industryrdquo

Kgosietsile Mogaki

South African Ministry of Minerals and Energy

waynewaynedunncom Slide 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 globally

Through 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 50

And then there is HIVAIDS

RSA ACCOUNTED FOR NEARLY 1 IN 8 OF THE NEW HIV INFECTIONS THAT OCCURRED WORLD WIDE IN 2000

HIV+ PREVALENCE RATE IN WOMEN ATTENDING ANTE-NATAL CLINICS INCREASED FROM 07 IN 1990 TO 248 IN 2001

AVERAGE OF 1700 NEW INFECTIONS PER DAY

LIFE EXPECTANCY WILL DECLINE FROM 65 TO 40 BY 2011

65

40

0

10

20

30

40

50

60

70

2001 2011

Life Expectancy

waynewaynedunncom Slide 51

HIVAIDS Facts (in 2000)

ESTIMATED THAT 12 OF TOTAL RSA POPULATION AND 25 OF MINEWORKERS ARE HIV+

ALREADY 400000 PEOPLE ARE AIDS SICK AND THIS WILL INCREASE TO 14 M BY 2010

YOUNG WOMEN PARTICULARLY VULNERABLE ndash 239 AGED BETWEEN 15 ndash 49 ALREADY INFECTED AND WILL RISE TO 297 BY 2007

AIDS ORPHANS AT PRESENT AMOUNT TO 660000+ AND WILL RISE TO 18M BY 2015

ACCUMULATIVE AIDS DEATHS WILL RISE TO 9M BY 2015

Slide 52

HIVAIDS Impact REDUCED ECONOMIC GROWTH RATE ndash 2010 GDP 20 below a non AIDS

scenario REDUCED POPULATION ndash RSA population 10M smaller than non AIDS scenario SKYROCKETING DEMANDS ON PUBLIC HEALTH SYSTEM - RADICALLY CHANGED PRIVATE SPENDING PATTERNS ndash to healthcare and

funeral costs IMPACT ON SOCIO-ECONOMIC STABILITY (orphans)

HIVAIDS 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 Africa today Nobody can afford to ignore it

Slide 53

HIVAIDS and Gold Mining

$10oz impact if nothing is done (5 of production costs) ~$3oz with maximum

intervention Impact on social and political

stability

Slide 54

HIVAIDS Programming Placer Dome program ndash

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 55

Minesite Program

TRAINING AND EDUCATION

STI amp TB TREATMENT

CONDOM DISTRIBUTION

PEER EDUCATION

VOLUNTARY COUNSELING AND TESTING (VCT)

WELLNESS PROGRAM

MEDICAL REPATRIATION

waynewaynedunncom Slide 56

Minesite Program

waynewaynedunncom Slide 57

Current Community Program

AWARENESS AND EDUCATION PROGRAMS

MOBILE CLINIC

CONDOM amp FEMIDOM DISTRIBUTION

PERIODIC PRESUMPTIVE TREATMENT (PPT)

TREATMENT FOR SEXUALLY TRANSMITTED INFECTIONS ( STI)

waynewaynedunncom Slide 58

COMMUNITY PROGRAM

Community Mobile Clinic

waynewaynedunncom Slide 59

And when HIV prevention doesnrsquot 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 60

Industry Home Based Care

TEBA INFRA-STRUCTURE

TRAINING OF CARE GIVERS

SUPPORT STRUCTURE ndash QUALIFIED STAFF

MONTHLY MEDICATION

WORK WITH OTHER STAKEHOLDERS (EG TRADITIONAL HEALERS)

WORLD BANK DEVELOPMENT INNOVATION AWARD

waynewaynedunncom Slide 61

Home Based Care

Slide 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

waynewaynedunncom Slide 63

Overview of Placer Dome AIDS Programming SOUTH DEEP Sustainable Development Department

bullVoluntary Counseling and testing HIV Negative bullContinue working

On Mine Program Community Program

Modified work program Farm bullAgricultural work Environmental

Medical repatriation

Home Based Care

Benefits Care Positive

HBC EC OPP

Back to work or Re skilled

Wellness Program

waynewaynedunncom Slide 64

But what happens to children and families when the breadwinner canrsquot

work

Slide 65

HIVAIDS and Rural Areas HIVAIDS 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

Slide 66

HIVAIDS 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

waynewaynedunncom

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 CSREthical

Project Award (2004) Numerous other awards Stanford Case Study

waynewaynedunncom Slide 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 69

Planned Program

Care Positive Integrate the Home Based Care

project with the Care process and launch as a fee for service based program to address the social and 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

Care Process

+

Home Based Care

=

Care Positive

waynewaynedunncom Slide 70

Care Positive Summary

waynewaynedunncom

Andhellip 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 $100000 and considerable reputational capital into them Industry went forward with modified HIVAIDS

programming but huge developmental impacts were lost

waynewaynedunncom Slide 72

MDG Impacts of Placer Dome in South Africa

1 Poverty and hunger 2 Some impact on primary education (School

feeding program) 3 Promote gender equality and empower women 4 Reduce child mortality 5 Improve maternal health 6 Combat HIVAIDS malaria and other diseass 7 Ensure environmental sustainability 8 Develop a global partnership for development

(Placer Dome CIDA Civil Society NGOs)

waynewaynedunncom

One thing leads to another

World Bank observed how Placer Domersquos leadership on HIVAIDS 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

waynewaynedunncom

PNG HIVAIDS Scoping mission to

determine what might be done and how Enthusiastic interest from

industry government multi-laterals (WHO UNAIDS World Banketc) ODA (AusAID) CIDA partnered with Place Dome to develop an

HIVAIDS strategy for PNG that integrated industry public sector civil society and international community

waynewaynedunncom

PNG Outcomes (or outputs ndash Irsquom never sure) Partnership with Mining

Industry Civil Society WHO UNAIDS UNDP World Bank PNG AIDS AusAID Oil Palm Industry etc National workshop on

HIVAIDS and publicprivate partnerships SouthSouth Collaboration

Industry government civil society international community study trip to South Africa

waynewaynedunncom

waynewaynedunncom

PNG AIDS mission to South Africa

waynewaynedunncom Slide 78

MDG Impacts of PNG HIVAIDS work

1 Poverty and hunger (nutritional supplements) 2 Some impact on primary education (peripheral) 3 Promote gender equality and empower women 4 Reduce child mortality 5 Improve maternal health 6 Combat HIVAIDS malaria and other diseass 7 Ensure environmental sustainability 8 Develop a global partnership for development

(Placer Dome CIDA Civil Society NGOs)

waynewaynedunncom

Eldorado Gold in Turkey

Major gold find in WestCentral Turkey No successful

mining project launched in decades Eurogold project

built launched and halted by community action in late 1990s ndash still mothballed

UsakKislidag Minesite

Eurogold site

waynewaynedunncom

Eldorado Gold in Turkey

Isolated rural area Nearly half of nearby

communities opposed to mine development Agriculture primary

economic activity in rural communities ndash smallmicro family farms

waynewaynedunncom

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

waynewaynedunncom

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 $075 to $1325 Opened second mine in Turkey

bull Able to deal with controversial watershed issues after relationship success in Usak

waynewaynedunncom Slide 83

MDG Impacts of Eldorado Gold

1 Poverty and hunger (minimal) 2 Some impact on primary education (peripheral) 3 Promote gender equality and empower women 4 Reduce child mortality 5 Improve maternal health 6 Combat HIVAIDS malaria and other diseass 7 Ensure environmental sustainability 8 Develop a global partnership for development

(Placer Dome CIDA Civil Society NGOs)

waynewaynedunncom

Underwater Logging in Ghana

waynewaynedunncom

Private Sector and International Development

Private sector especially resource extraction has a very mixed record bull Some horrendous disasters (Nigeria Warao Peoples in

Venezuela etc) bull Some great successes (Placer Dome Care project

mining and HIVAIDS 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

waynewaynedunncom

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

interestsobjectives overlap

waynewaynedunncom

SDCSR Implementation Challenges

more than a warm fuzzy issue Spending isnrsquot the answer

Plan

Framework

System

Results

Solving social problems Objectives

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Beyond Beads and Trinkets ndash BC Mining Review

A lsquohow torsquo article on mining and CSR

Wayne Dunn

BP Venezuela Indigenous Relations ndash Meeting the Challenge Responsibly and Sustainably

Situational assessment and strategic plan for BP Venezuela Authorized for release by BP

Wayne Dunn

Cameco Community Relations Report

Situational assessment and management strategy Authorized for release by Cameco

Wayne Dunn

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author Beyond Beads lsquon Trinkets A systematic approach to managing community relations

A conference paper describing a systematic approach to community relations management helping companies to methodically develop mutually beneficial relationships with local communities and interests (this is one of the earliest papers on this subject ndash written in 1998)

Wayne Dunn

The costs of conflict with local communities in the extractive industry

Analysis of the cost of community conflicts in the Extractive Sector

Rachel Davis and Daniel M Franks

Creating Shared Value

Harvard Business Review interview with Michael Porter

Video

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Social License Its all about value

Discussion on Social License and shareholder Value

Wayne Dunn

Its about Development Commentary on the CIDAMining Company issue

Wayne Dunn

Integrating corporate strategy and social responsibilitymdashmarket returns from stakeholder engagement

Discussion and analysis on market returns on stakeholder engagement

Witold J Henisz Sinziana Dorobantu and Lite J Narty

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

McGill Reporter ndash Four Burning Questions Wayne Dunn on CSR

Discussion on CSR Wayne Dunn

Miningrsquos contribution to sustainable development ndashan overview

Discussion paper prepared by the International Council on Mining and Metals

Millennium Development Goals

United Nations

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Mining and Agriculture Development

A short lsquohow torsquo guide for mining projects to engage with the local agriculture sector

Al Hingston

PDSA Social Value Brochure

Brochure on social value created by Placer Dome South Africa

Placer Dome

The Value of Social License

Opinion piece published in Northern Miner

Wayne Dunn

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Golden Opportunity When a Canadian multinational laid off hundreds of gold miners in South Africa it went many extra miles to help them get back on their feet

Stanford Business School Case Study on Placer Dome in South Africa

Wayne Dunn

The Changing Resource Development Paradigm Maximizing Sustainable Local Benefits from Resource Development

Strategic thought piece prepared for the government of British Columbia Canada

Wayne Dunn

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

The Disappearing Barriers Between Business And Non-profits Are Driving Innovation

Discussion paper

Katherine Pikus

When Condoms are not enough

World Bank staff magazine article on Placer Dome and South African mining industryrsquos work with HIVAIDS

Craig Andrews

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

MINING AND LOCAL ECONOMIC DEVELOPMENT IN PAPUA NEW GUINEA Preliminary Research on a Potential Pilot Project in Porgera and Lihir

Strategic research and action plan on mining and local economic development in Papua New Guinea prepared for the World Bank

Wayne Dunn

waynewaynedunncom

What we covered

We 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) Publicprivatecivil society collaboration ndash case study

and discussion (CIDA and Mining Companies) Open discussion on topics of interest (time permitting)

waynewaynedunncom

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 howwhy 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

waynewaynedunncom

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 howwhy 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

waynewaynedunncom

Alignment around Shared Value For shareholders For Communities For People For Governments

Private Sector Contributions To International Development

Remember

  • Private Sector Contributions To International Development
  • Session Objectives
  • Map of the morning How we will try to meet the objectives
  • Slide Number 4
  • What is ODA and FDI
  • What is ODA and FDI
  • Why discuss Private Sector Contribution anyway
  • FDIBusiness Outcomes
  • Intention and Strategy Make a Difference
  • Why does the private sector care
  • Community Consultation and Value
  • Itrsquos Real Money
  • CSR is a Value Strategy
  • Social License Failures cost
  • Why is CSR happening
  • The Mining World Has Changed
  • CSR is a complicated space
  • CSR amp Social License
  • Role of business is changing (click image to play video)
  • Case Studies (of successes)
  • Slide Number 21
  • Uranium Industry in Northern Saskatchewan
  • Challenging area
  • Challenging Times
  • Cameco in 1998
  • Cameco in Northern Saskatchewan (2010)
  • So how did Cameco and the industry do it
  • Placer Dome South Africa
  • Slide Number 29
  • Background
  • Background (cont)
  • Families amp Communities must benefit from mining
  • The Care Project
  • Implications
  • Slide Number 35
  • The Initial 4-Step Plan
  • Reality was different than we expected
  • Reality was different than expected
  • Meeting the challenges
  • TheProcess
  • Some results
  • Chicken raising business
  • Furniture making
  • Unique training programs
  • Rice farming in Mozambique
  • Spaza (convenience) shop
  • And the business value ishellip
  • Slide Number 48
  • What was in it for Placer Dome
  • And then there is HIVAIDS
  • HIVAIDS Facts (in 2000)
  • HIVAIDS Impact
  • HIVAIDS and Gold Mining
  • HIVAIDS Programming
  • Minesite Program
  • Minesite Program
  • Current Community Program
  • Community Mobile Clinic
  • And when HIV prevention doesnrsquot work
  • Industry Home Based Care
  • Home Based Care
  • INDUSTRY HOME BASED CARE RESULTS(Year One)
  • Overview of Placer Dome AIDS Programming
  • Slide Number 64
  • HIVAIDS and Rural Areas
  • HIVAIDS and Rural Areas
  • Reputational Results for Placer Dome
  • Where to next
  • Planned Program
  • Care Positive Summary
  • Andhellip
  • MDG Impacts of Placer Dome in South Africa
  • One thing leads to another
  • PNG HIVAIDS
  • PNG Outcomes (or outputs ndash Irsquom never sure)
  • Slide Number 76
  • PNG AIDS mission to South Africa
  • MDG Impacts of PNG HIVAIDS work
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • MDG Impacts of Eldorado Gold
  • Underwater Logging in Ghana
  • Private Sector and International Development
  • Group Exercise
  • Slide Number 87
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • What we covered
  • Session Objectives
  • Session Objectives
  • Remember
Page 48: Private Sector Contributions To International Development – McGill Executive Education Program Lecture

waynewaynedunncom Slide 48

ldquoThe project changed the social face of the South African Mining Industryrdquo

Kgosietsile Mogaki

South African Ministry of Minerals and Energy

waynewaynedunncom Slide 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 globally

Through 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 50

And then there is HIVAIDS

RSA ACCOUNTED FOR NEARLY 1 IN 8 OF THE NEW HIV INFECTIONS THAT OCCURRED WORLD WIDE IN 2000

HIV+ PREVALENCE RATE IN WOMEN ATTENDING ANTE-NATAL CLINICS INCREASED FROM 07 IN 1990 TO 248 IN 2001

AVERAGE OF 1700 NEW INFECTIONS PER DAY

LIFE EXPECTANCY WILL DECLINE FROM 65 TO 40 BY 2011

65

40

0

10

20

30

40

50

60

70

2001 2011

Life Expectancy

waynewaynedunncom Slide 51

HIVAIDS Facts (in 2000)

ESTIMATED THAT 12 OF TOTAL RSA POPULATION AND 25 OF MINEWORKERS ARE HIV+

ALREADY 400000 PEOPLE ARE AIDS SICK AND THIS WILL INCREASE TO 14 M BY 2010

YOUNG WOMEN PARTICULARLY VULNERABLE ndash 239 AGED BETWEEN 15 ndash 49 ALREADY INFECTED AND WILL RISE TO 297 BY 2007

AIDS ORPHANS AT PRESENT AMOUNT TO 660000+ AND WILL RISE TO 18M BY 2015

ACCUMULATIVE AIDS DEATHS WILL RISE TO 9M BY 2015

Slide 52

HIVAIDS Impact REDUCED ECONOMIC GROWTH RATE ndash 2010 GDP 20 below a non AIDS

scenario REDUCED POPULATION ndash RSA population 10M smaller than non AIDS scenario SKYROCKETING DEMANDS ON PUBLIC HEALTH SYSTEM - RADICALLY CHANGED PRIVATE SPENDING PATTERNS ndash to healthcare and

funeral costs IMPACT ON SOCIO-ECONOMIC STABILITY (orphans)

HIVAIDS 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 Africa today Nobody can afford to ignore it

Slide 53

HIVAIDS and Gold Mining

$10oz impact if nothing is done (5 of production costs) ~$3oz with maximum

intervention Impact on social and political

stability

Slide 54

HIVAIDS Programming Placer Dome program ndash

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 55

Minesite Program

TRAINING AND EDUCATION

STI amp TB TREATMENT

CONDOM DISTRIBUTION

PEER EDUCATION

VOLUNTARY COUNSELING AND TESTING (VCT)

WELLNESS PROGRAM

MEDICAL REPATRIATION

waynewaynedunncom Slide 56

Minesite Program

waynewaynedunncom Slide 57

Current Community Program

AWARENESS AND EDUCATION PROGRAMS

MOBILE CLINIC

CONDOM amp FEMIDOM DISTRIBUTION

PERIODIC PRESUMPTIVE TREATMENT (PPT)

TREATMENT FOR SEXUALLY TRANSMITTED INFECTIONS ( STI)

waynewaynedunncom Slide 58

COMMUNITY PROGRAM

Community Mobile Clinic

waynewaynedunncom Slide 59

And when HIV prevention doesnrsquot 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 60

Industry Home Based Care

TEBA INFRA-STRUCTURE

TRAINING OF CARE GIVERS

SUPPORT STRUCTURE ndash QUALIFIED STAFF

MONTHLY MEDICATION

WORK WITH OTHER STAKEHOLDERS (EG TRADITIONAL HEALERS)

WORLD BANK DEVELOPMENT INNOVATION AWARD

waynewaynedunncom Slide 61

Home Based Care

Slide 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

waynewaynedunncom Slide 63

Overview of Placer Dome AIDS Programming SOUTH DEEP Sustainable Development Department

bullVoluntary Counseling and testing HIV Negative bullContinue working

On Mine Program Community Program

Modified work program Farm bullAgricultural work Environmental

Medical repatriation

Home Based Care

Benefits Care Positive

HBC EC OPP

Back to work or Re skilled

Wellness Program

waynewaynedunncom Slide 64

But what happens to children and families when the breadwinner canrsquot

work

Slide 65

HIVAIDS and Rural Areas HIVAIDS 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

Slide 66

HIVAIDS 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

waynewaynedunncom

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 CSREthical

Project Award (2004) Numerous other awards Stanford Case Study

waynewaynedunncom Slide 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 69

Planned Program

Care Positive Integrate the Home Based Care

project with the Care process and launch as a fee for service based program to address the social and 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

Care Process

+

Home Based Care

=

Care Positive

waynewaynedunncom Slide 70

Care Positive Summary

waynewaynedunncom

Andhellip 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 $100000 and considerable reputational capital into them Industry went forward with modified HIVAIDS

programming but huge developmental impacts were lost

waynewaynedunncom Slide 72

MDG Impacts of Placer Dome in South Africa

1 Poverty and hunger 2 Some impact on primary education (School

feeding program) 3 Promote gender equality and empower women 4 Reduce child mortality 5 Improve maternal health 6 Combat HIVAIDS malaria and other diseass 7 Ensure environmental sustainability 8 Develop a global partnership for development

(Placer Dome CIDA Civil Society NGOs)

waynewaynedunncom

One thing leads to another

World Bank observed how Placer Domersquos leadership on HIVAIDS 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

waynewaynedunncom

PNG HIVAIDS Scoping mission to

determine what might be done and how Enthusiastic interest from

industry government multi-laterals (WHO UNAIDS World Banketc) ODA (AusAID) CIDA partnered with Place Dome to develop an

HIVAIDS strategy for PNG that integrated industry public sector civil society and international community

waynewaynedunncom

PNG Outcomes (or outputs ndash Irsquom never sure) Partnership with Mining

Industry Civil Society WHO UNAIDS UNDP World Bank PNG AIDS AusAID Oil Palm Industry etc National workshop on

HIVAIDS and publicprivate partnerships SouthSouth Collaboration

Industry government civil society international community study trip to South Africa

waynewaynedunncom

waynewaynedunncom

PNG AIDS mission to South Africa

waynewaynedunncom Slide 78

MDG Impacts of PNG HIVAIDS work

1 Poverty and hunger (nutritional supplements) 2 Some impact on primary education (peripheral) 3 Promote gender equality and empower women 4 Reduce child mortality 5 Improve maternal health 6 Combat HIVAIDS malaria and other diseass 7 Ensure environmental sustainability 8 Develop a global partnership for development

(Placer Dome CIDA Civil Society NGOs)

waynewaynedunncom

Eldorado Gold in Turkey

Major gold find in WestCentral Turkey No successful

mining project launched in decades Eurogold project

built launched and halted by community action in late 1990s ndash still mothballed

UsakKislidag Minesite

Eurogold site

waynewaynedunncom

Eldorado Gold in Turkey

Isolated rural area Nearly half of nearby

communities opposed to mine development Agriculture primary

economic activity in rural communities ndash smallmicro family farms

waynewaynedunncom

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

waynewaynedunncom

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 $075 to $1325 Opened second mine in Turkey

bull Able to deal with controversial watershed issues after relationship success in Usak

waynewaynedunncom Slide 83

MDG Impacts of Eldorado Gold

1 Poverty and hunger (minimal) 2 Some impact on primary education (peripheral) 3 Promote gender equality and empower women 4 Reduce child mortality 5 Improve maternal health 6 Combat HIVAIDS malaria and other diseass 7 Ensure environmental sustainability 8 Develop a global partnership for development

(Placer Dome CIDA Civil Society NGOs)

waynewaynedunncom

Underwater Logging in Ghana

waynewaynedunncom

Private Sector and International Development

Private sector especially resource extraction has a very mixed record bull Some horrendous disasters (Nigeria Warao Peoples in

Venezuela etc) bull Some great successes (Placer Dome Care project

mining and HIVAIDS 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

waynewaynedunncom

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

interestsobjectives overlap

waynewaynedunncom

SDCSR Implementation Challenges

more than a warm fuzzy issue Spending isnrsquot the answer

Plan

Framework

System

Results

Solving social problems Objectives

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Beyond Beads and Trinkets ndash BC Mining Review

A lsquohow torsquo article on mining and CSR

Wayne Dunn

BP Venezuela Indigenous Relations ndash Meeting the Challenge Responsibly and Sustainably

Situational assessment and strategic plan for BP Venezuela Authorized for release by BP

Wayne Dunn

Cameco Community Relations Report

Situational assessment and management strategy Authorized for release by Cameco

Wayne Dunn

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author Beyond Beads lsquon Trinkets A systematic approach to managing community relations

A conference paper describing a systematic approach to community relations management helping companies to methodically develop mutually beneficial relationships with local communities and interests (this is one of the earliest papers on this subject ndash written in 1998)

Wayne Dunn

The costs of conflict with local communities in the extractive industry

Analysis of the cost of community conflicts in the Extractive Sector

Rachel Davis and Daniel M Franks

Creating Shared Value

Harvard Business Review interview with Michael Porter

Video

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Social License Its all about value

Discussion on Social License and shareholder Value

Wayne Dunn

Its about Development Commentary on the CIDAMining Company issue

Wayne Dunn

Integrating corporate strategy and social responsibilitymdashmarket returns from stakeholder engagement

Discussion and analysis on market returns on stakeholder engagement

Witold J Henisz Sinziana Dorobantu and Lite J Narty

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

McGill Reporter ndash Four Burning Questions Wayne Dunn on CSR

Discussion on CSR Wayne Dunn

Miningrsquos contribution to sustainable development ndashan overview

Discussion paper prepared by the International Council on Mining and Metals

Millennium Development Goals

United Nations

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Mining and Agriculture Development

A short lsquohow torsquo guide for mining projects to engage with the local agriculture sector

Al Hingston

PDSA Social Value Brochure

Brochure on social value created by Placer Dome South Africa

Placer Dome

The Value of Social License

Opinion piece published in Northern Miner

Wayne Dunn

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Golden Opportunity When a Canadian multinational laid off hundreds of gold miners in South Africa it went many extra miles to help them get back on their feet

Stanford Business School Case Study on Placer Dome in South Africa

Wayne Dunn

The Changing Resource Development Paradigm Maximizing Sustainable Local Benefits from Resource Development

Strategic thought piece prepared for the government of British Columbia Canada

Wayne Dunn

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

The Disappearing Barriers Between Business And Non-profits Are Driving Innovation

Discussion paper

Katherine Pikus

When Condoms are not enough

World Bank staff magazine article on Placer Dome and South African mining industryrsquos work with HIVAIDS

Craig Andrews

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

MINING AND LOCAL ECONOMIC DEVELOPMENT IN PAPUA NEW GUINEA Preliminary Research on a Potential Pilot Project in Porgera and Lihir

Strategic research and action plan on mining and local economic development in Papua New Guinea prepared for the World Bank

Wayne Dunn

waynewaynedunncom

What we covered

We 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) Publicprivatecivil society collaboration ndash case study

and discussion (CIDA and Mining Companies) Open discussion on topics of interest (time permitting)

waynewaynedunncom

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 howwhy 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

waynewaynedunncom

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 howwhy 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

waynewaynedunncom

Alignment around Shared Value For shareholders For Communities For People For Governments

Private Sector Contributions To International Development

Remember

  • Private Sector Contributions To International Development
  • Session Objectives
  • Map of the morning How we will try to meet the objectives
  • Slide Number 4
  • What is ODA and FDI
  • What is ODA and FDI
  • Why discuss Private Sector Contribution anyway
  • FDIBusiness Outcomes
  • Intention and Strategy Make a Difference
  • Why does the private sector care
  • Community Consultation and Value
  • Itrsquos Real Money
  • CSR is a Value Strategy
  • Social License Failures cost
  • Why is CSR happening
  • The Mining World Has Changed
  • CSR is a complicated space
  • CSR amp Social License
  • Role of business is changing (click image to play video)
  • Case Studies (of successes)
  • Slide Number 21
  • Uranium Industry in Northern Saskatchewan
  • Challenging area
  • Challenging Times
  • Cameco in 1998
  • Cameco in Northern Saskatchewan (2010)
  • So how did Cameco and the industry do it
  • Placer Dome South Africa
  • Slide Number 29
  • Background
  • Background (cont)
  • Families amp Communities must benefit from mining
  • The Care Project
  • Implications
  • Slide Number 35
  • The Initial 4-Step Plan
  • Reality was different than we expected
  • Reality was different than expected
  • Meeting the challenges
  • TheProcess
  • Some results
  • Chicken raising business
  • Furniture making
  • Unique training programs
  • Rice farming in Mozambique
  • Spaza (convenience) shop
  • And the business value ishellip
  • Slide Number 48
  • What was in it for Placer Dome
  • And then there is HIVAIDS
  • HIVAIDS Facts (in 2000)
  • HIVAIDS Impact
  • HIVAIDS and Gold Mining
  • HIVAIDS Programming
  • Minesite Program
  • Minesite Program
  • Current Community Program
  • Community Mobile Clinic
  • And when HIV prevention doesnrsquot work
  • Industry Home Based Care
  • Home Based Care
  • INDUSTRY HOME BASED CARE RESULTS(Year One)
  • Overview of Placer Dome AIDS Programming
  • Slide Number 64
  • HIVAIDS and Rural Areas
  • HIVAIDS and Rural Areas
  • Reputational Results for Placer Dome
  • Where to next
  • Planned Program
  • Care Positive Summary
  • Andhellip
  • MDG Impacts of Placer Dome in South Africa
  • One thing leads to another
  • PNG HIVAIDS
  • PNG Outcomes (or outputs ndash Irsquom never sure)
  • Slide Number 76
  • PNG AIDS mission to South Africa
  • MDG Impacts of PNG HIVAIDS work
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • MDG Impacts of Eldorado Gold
  • Underwater Logging in Ghana
  • Private Sector and International Development
  • Group Exercise
  • Slide Number 87
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • What we covered
  • Session Objectives
  • Session Objectives
  • Remember
Page 49: Private Sector Contributions To International Development – McGill Executive Education Program Lecture

waynewaynedunncom Slide 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 globally

Through 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 50

And then there is HIVAIDS

RSA ACCOUNTED FOR NEARLY 1 IN 8 OF THE NEW HIV INFECTIONS THAT OCCURRED WORLD WIDE IN 2000

HIV+ PREVALENCE RATE IN WOMEN ATTENDING ANTE-NATAL CLINICS INCREASED FROM 07 IN 1990 TO 248 IN 2001

AVERAGE OF 1700 NEW INFECTIONS PER DAY

LIFE EXPECTANCY WILL DECLINE FROM 65 TO 40 BY 2011

65

40

0

10

20

30

40

50

60

70

2001 2011

Life Expectancy

waynewaynedunncom Slide 51

HIVAIDS Facts (in 2000)

ESTIMATED THAT 12 OF TOTAL RSA POPULATION AND 25 OF MINEWORKERS ARE HIV+

ALREADY 400000 PEOPLE ARE AIDS SICK AND THIS WILL INCREASE TO 14 M BY 2010

YOUNG WOMEN PARTICULARLY VULNERABLE ndash 239 AGED BETWEEN 15 ndash 49 ALREADY INFECTED AND WILL RISE TO 297 BY 2007

AIDS ORPHANS AT PRESENT AMOUNT TO 660000+ AND WILL RISE TO 18M BY 2015

ACCUMULATIVE AIDS DEATHS WILL RISE TO 9M BY 2015

Slide 52

HIVAIDS Impact REDUCED ECONOMIC GROWTH RATE ndash 2010 GDP 20 below a non AIDS

scenario REDUCED POPULATION ndash RSA population 10M smaller than non AIDS scenario SKYROCKETING DEMANDS ON PUBLIC HEALTH SYSTEM - RADICALLY CHANGED PRIVATE SPENDING PATTERNS ndash to healthcare and

funeral costs IMPACT ON SOCIO-ECONOMIC STABILITY (orphans)

HIVAIDS 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 Africa today Nobody can afford to ignore it

Slide 53

HIVAIDS and Gold Mining

$10oz impact if nothing is done (5 of production costs) ~$3oz with maximum

intervention Impact on social and political

stability

Slide 54

HIVAIDS Programming Placer Dome program ndash

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 55

Minesite Program

TRAINING AND EDUCATION

STI amp TB TREATMENT

CONDOM DISTRIBUTION

PEER EDUCATION

VOLUNTARY COUNSELING AND TESTING (VCT)

WELLNESS PROGRAM

MEDICAL REPATRIATION

waynewaynedunncom Slide 56

Minesite Program

waynewaynedunncom Slide 57

Current Community Program

AWARENESS AND EDUCATION PROGRAMS

MOBILE CLINIC

CONDOM amp FEMIDOM DISTRIBUTION

PERIODIC PRESUMPTIVE TREATMENT (PPT)

TREATMENT FOR SEXUALLY TRANSMITTED INFECTIONS ( STI)

waynewaynedunncom Slide 58

COMMUNITY PROGRAM

Community Mobile Clinic

waynewaynedunncom Slide 59

And when HIV prevention doesnrsquot 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 60

Industry Home Based Care

TEBA INFRA-STRUCTURE

TRAINING OF CARE GIVERS

SUPPORT STRUCTURE ndash QUALIFIED STAFF

MONTHLY MEDICATION

WORK WITH OTHER STAKEHOLDERS (EG TRADITIONAL HEALERS)

WORLD BANK DEVELOPMENT INNOVATION AWARD

waynewaynedunncom Slide 61

Home Based Care

Slide 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

waynewaynedunncom Slide 63

Overview of Placer Dome AIDS Programming SOUTH DEEP Sustainable Development Department

bullVoluntary Counseling and testing HIV Negative bullContinue working

On Mine Program Community Program

Modified work program Farm bullAgricultural work Environmental

Medical repatriation

Home Based Care

Benefits Care Positive

HBC EC OPP

Back to work or Re skilled

Wellness Program

waynewaynedunncom Slide 64

But what happens to children and families when the breadwinner canrsquot

work

Slide 65

HIVAIDS and Rural Areas HIVAIDS 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

Slide 66

HIVAIDS 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

waynewaynedunncom

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 CSREthical

Project Award (2004) Numerous other awards Stanford Case Study

waynewaynedunncom Slide 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 69

Planned Program

Care Positive Integrate the Home Based Care

project with the Care process and launch as a fee for service based program to address the social and 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

Care Process

+

Home Based Care

=

Care Positive

waynewaynedunncom Slide 70

Care Positive Summary

waynewaynedunncom

Andhellip 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 $100000 and considerable reputational capital into them Industry went forward with modified HIVAIDS

programming but huge developmental impacts were lost

waynewaynedunncom Slide 72

MDG Impacts of Placer Dome in South Africa

1 Poverty and hunger 2 Some impact on primary education (School

feeding program) 3 Promote gender equality and empower women 4 Reduce child mortality 5 Improve maternal health 6 Combat HIVAIDS malaria and other diseass 7 Ensure environmental sustainability 8 Develop a global partnership for development

(Placer Dome CIDA Civil Society NGOs)

waynewaynedunncom

One thing leads to another

World Bank observed how Placer Domersquos leadership on HIVAIDS 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

waynewaynedunncom

PNG HIVAIDS Scoping mission to

determine what might be done and how Enthusiastic interest from

industry government multi-laterals (WHO UNAIDS World Banketc) ODA (AusAID) CIDA partnered with Place Dome to develop an

HIVAIDS strategy for PNG that integrated industry public sector civil society and international community

waynewaynedunncom

PNG Outcomes (or outputs ndash Irsquom never sure) Partnership with Mining

Industry Civil Society WHO UNAIDS UNDP World Bank PNG AIDS AusAID Oil Palm Industry etc National workshop on

HIVAIDS and publicprivate partnerships SouthSouth Collaboration

Industry government civil society international community study trip to South Africa

waynewaynedunncom

waynewaynedunncom

PNG AIDS mission to South Africa

waynewaynedunncom Slide 78

MDG Impacts of PNG HIVAIDS work

1 Poverty and hunger (nutritional supplements) 2 Some impact on primary education (peripheral) 3 Promote gender equality and empower women 4 Reduce child mortality 5 Improve maternal health 6 Combat HIVAIDS malaria and other diseass 7 Ensure environmental sustainability 8 Develop a global partnership for development

(Placer Dome CIDA Civil Society NGOs)

waynewaynedunncom

Eldorado Gold in Turkey

Major gold find in WestCentral Turkey No successful

mining project launched in decades Eurogold project

built launched and halted by community action in late 1990s ndash still mothballed

UsakKislidag Minesite

Eurogold site

waynewaynedunncom

Eldorado Gold in Turkey

Isolated rural area Nearly half of nearby

communities opposed to mine development Agriculture primary

economic activity in rural communities ndash smallmicro family farms

waynewaynedunncom

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

waynewaynedunncom

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 $075 to $1325 Opened second mine in Turkey

bull Able to deal with controversial watershed issues after relationship success in Usak

waynewaynedunncom Slide 83

MDG Impacts of Eldorado Gold

1 Poverty and hunger (minimal) 2 Some impact on primary education (peripheral) 3 Promote gender equality and empower women 4 Reduce child mortality 5 Improve maternal health 6 Combat HIVAIDS malaria and other diseass 7 Ensure environmental sustainability 8 Develop a global partnership for development

(Placer Dome CIDA Civil Society NGOs)

waynewaynedunncom

Underwater Logging in Ghana

waynewaynedunncom

Private Sector and International Development

Private sector especially resource extraction has a very mixed record bull Some horrendous disasters (Nigeria Warao Peoples in

Venezuela etc) bull Some great successes (Placer Dome Care project

mining and HIVAIDS 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

waynewaynedunncom

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

interestsobjectives overlap

waynewaynedunncom

SDCSR Implementation Challenges

more than a warm fuzzy issue Spending isnrsquot the answer

Plan

Framework

System

Results

Solving social problems Objectives

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Beyond Beads and Trinkets ndash BC Mining Review

A lsquohow torsquo article on mining and CSR

Wayne Dunn

BP Venezuela Indigenous Relations ndash Meeting the Challenge Responsibly and Sustainably

Situational assessment and strategic plan for BP Venezuela Authorized for release by BP

Wayne Dunn

Cameco Community Relations Report

Situational assessment and management strategy Authorized for release by Cameco

Wayne Dunn

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author Beyond Beads lsquon Trinkets A systematic approach to managing community relations

A conference paper describing a systematic approach to community relations management helping companies to methodically develop mutually beneficial relationships with local communities and interests (this is one of the earliest papers on this subject ndash written in 1998)

Wayne Dunn

The costs of conflict with local communities in the extractive industry

Analysis of the cost of community conflicts in the Extractive Sector

Rachel Davis and Daniel M Franks

Creating Shared Value

Harvard Business Review interview with Michael Porter

Video

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Social License Its all about value

Discussion on Social License and shareholder Value

Wayne Dunn

Its about Development Commentary on the CIDAMining Company issue

Wayne Dunn

Integrating corporate strategy and social responsibilitymdashmarket returns from stakeholder engagement

Discussion and analysis on market returns on stakeholder engagement

Witold J Henisz Sinziana Dorobantu and Lite J Narty

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

McGill Reporter ndash Four Burning Questions Wayne Dunn on CSR

Discussion on CSR Wayne Dunn

Miningrsquos contribution to sustainable development ndashan overview

Discussion paper prepared by the International Council on Mining and Metals

Millennium Development Goals

United Nations

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Mining and Agriculture Development

A short lsquohow torsquo guide for mining projects to engage with the local agriculture sector

Al Hingston

PDSA Social Value Brochure

Brochure on social value created by Placer Dome South Africa

Placer Dome

The Value of Social License

Opinion piece published in Northern Miner

Wayne Dunn

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Golden Opportunity When a Canadian multinational laid off hundreds of gold miners in South Africa it went many extra miles to help them get back on their feet

Stanford Business School Case Study on Placer Dome in South Africa

Wayne Dunn

The Changing Resource Development Paradigm Maximizing Sustainable Local Benefits from Resource Development

Strategic thought piece prepared for the government of British Columbia Canada

Wayne Dunn

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

The Disappearing Barriers Between Business And Non-profits Are Driving Innovation

Discussion paper

Katherine Pikus

When Condoms are not enough

World Bank staff magazine article on Placer Dome and South African mining industryrsquos work with HIVAIDS

Craig Andrews

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

MINING AND LOCAL ECONOMIC DEVELOPMENT IN PAPUA NEW GUINEA Preliminary Research on a Potential Pilot Project in Porgera and Lihir

Strategic research and action plan on mining and local economic development in Papua New Guinea prepared for the World Bank

Wayne Dunn

waynewaynedunncom

What we covered

We 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) Publicprivatecivil society collaboration ndash case study

and discussion (CIDA and Mining Companies) Open discussion on topics of interest (time permitting)

waynewaynedunncom

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 howwhy 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

waynewaynedunncom

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 howwhy 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

waynewaynedunncom

Alignment around Shared Value For shareholders For Communities For People For Governments

Private Sector Contributions To International Development

Remember

  • Private Sector Contributions To International Development
  • Session Objectives
  • Map of the morning How we will try to meet the objectives
  • Slide Number 4
  • What is ODA and FDI
  • What is ODA and FDI
  • Why discuss Private Sector Contribution anyway
  • FDIBusiness Outcomes
  • Intention and Strategy Make a Difference
  • Why does the private sector care
  • Community Consultation and Value
  • Itrsquos Real Money
  • CSR is a Value Strategy
  • Social License Failures cost
  • Why is CSR happening
  • The Mining World Has Changed
  • CSR is a complicated space
  • CSR amp Social License
  • Role of business is changing (click image to play video)
  • Case Studies (of successes)
  • Slide Number 21
  • Uranium Industry in Northern Saskatchewan
  • Challenging area
  • Challenging Times
  • Cameco in 1998
  • Cameco in Northern Saskatchewan (2010)
  • So how did Cameco and the industry do it
  • Placer Dome South Africa
  • Slide Number 29
  • Background
  • Background (cont)
  • Families amp Communities must benefit from mining
  • The Care Project
  • Implications
  • Slide Number 35
  • The Initial 4-Step Plan
  • Reality was different than we expected
  • Reality was different than expected
  • Meeting the challenges
  • TheProcess
  • Some results
  • Chicken raising business
  • Furniture making
  • Unique training programs
  • Rice farming in Mozambique
  • Spaza (convenience) shop
  • And the business value ishellip
  • Slide Number 48
  • What was in it for Placer Dome
  • And then there is HIVAIDS
  • HIVAIDS Facts (in 2000)
  • HIVAIDS Impact
  • HIVAIDS and Gold Mining
  • HIVAIDS Programming
  • Minesite Program
  • Minesite Program
  • Current Community Program
  • Community Mobile Clinic
  • And when HIV prevention doesnrsquot work
  • Industry Home Based Care
  • Home Based Care
  • INDUSTRY HOME BASED CARE RESULTS(Year One)
  • Overview of Placer Dome AIDS Programming
  • Slide Number 64
  • HIVAIDS and Rural Areas
  • HIVAIDS and Rural Areas
  • Reputational Results for Placer Dome
  • Where to next
  • Planned Program
  • Care Positive Summary
  • Andhellip
  • MDG Impacts of Placer Dome in South Africa
  • One thing leads to another
  • PNG HIVAIDS
  • PNG Outcomes (or outputs ndash Irsquom never sure)
  • Slide Number 76
  • PNG AIDS mission to South Africa
  • MDG Impacts of PNG HIVAIDS work
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • MDG Impacts of Eldorado Gold
  • Underwater Logging in Ghana
  • Private Sector and International Development
  • Group Exercise
  • Slide Number 87
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • What we covered
  • Session Objectives
  • Session Objectives
  • Remember
Page 50: Private Sector Contributions To International Development – McGill Executive Education Program Lecture

Slide 50

And then there is HIVAIDS

RSA ACCOUNTED FOR NEARLY 1 IN 8 OF THE NEW HIV INFECTIONS THAT OCCURRED WORLD WIDE IN 2000

HIV+ PREVALENCE RATE IN WOMEN ATTENDING ANTE-NATAL CLINICS INCREASED FROM 07 IN 1990 TO 248 IN 2001

AVERAGE OF 1700 NEW INFECTIONS PER DAY

LIFE EXPECTANCY WILL DECLINE FROM 65 TO 40 BY 2011

65

40

0

10

20

30

40

50

60

70

2001 2011

Life Expectancy

waynewaynedunncom Slide 51

HIVAIDS Facts (in 2000)

ESTIMATED THAT 12 OF TOTAL RSA POPULATION AND 25 OF MINEWORKERS ARE HIV+

ALREADY 400000 PEOPLE ARE AIDS SICK AND THIS WILL INCREASE TO 14 M BY 2010

YOUNG WOMEN PARTICULARLY VULNERABLE ndash 239 AGED BETWEEN 15 ndash 49 ALREADY INFECTED AND WILL RISE TO 297 BY 2007

AIDS ORPHANS AT PRESENT AMOUNT TO 660000+ AND WILL RISE TO 18M BY 2015

ACCUMULATIVE AIDS DEATHS WILL RISE TO 9M BY 2015

Slide 52

HIVAIDS Impact REDUCED ECONOMIC GROWTH RATE ndash 2010 GDP 20 below a non AIDS

scenario REDUCED POPULATION ndash RSA population 10M smaller than non AIDS scenario SKYROCKETING DEMANDS ON PUBLIC HEALTH SYSTEM - RADICALLY CHANGED PRIVATE SPENDING PATTERNS ndash to healthcare and

funeral costs IMPACT ON SOCIO-ECONOMIC STABILITY (orphans)

HIVAIDS 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 Africa today Nobody can afford to ignore it

Slide 53

HIVAIDS and Gold Mining

$10oz impact if nothing is done (5 of production costs) ~$3oz with maximum

intervention Impact on social and political

stability

Slide 54

HIVAIDS Programming Placer Dome program ndash

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 55

Minesite Program

TRAINING AND EDUCATION

STI amp TB TREATMENT

CONDOM DISTRIBUTION

PEER EDUCATION

VOLUNTARY COUNSELING AND TESTING (VCT)

WELLNESS PROGRAM

MEDICAL REPATRIATION

waynewaynedunncom Slide 56

Minesite Program

waynewaynedunncom Slide 57

Current Community Program

AWARENESS AND EDUCATION PROGRAMS

MOBILE CLINIC

CONDOM amp FEMIDOM DISTRIBUTION

PERIODIC PRESUMPTIVE TREATMENT (PPT)

TREATMENT FOR SEXUALLY TRANSMITTED INFECTIONS ( STI)

waynewaynedunncom Slide 58

COMMUNITY PROGRAM

Community Mobile Clinic

waynewaynedunncom Slide 59

And when HIV prevention doesnrsquot 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 60

Industry Home Based Care

TEBA INFRA-STRUCTURE

TRAINING OF CARE GIVERS

SUPPORT STRUCTURE ndash QUALIFIED STAFF

MONTHLY MEDICATION

WORK WITH OTHER STAKEHOLDERS (EG TRADITIONAL HEALERS)

WORLD BANK DEVELOPMENT INNOVATION AWARD

waynewaynedunncom Slide 61

Home Based Care

Slide 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

waynewaynedunncom Slide 63

Overview of Placer Dome AIDS Programming SOUTH DEEP Sustainable Development Department

bullVoluntary Counseling and testing HIV Negative bullContinue working

On Mine Program Community Program

Modified work program Farm bullAgricultural work Environmental

Medical repatriation

Home Based Care

Benefits Care Positive

HBC EC OPP

Back to work or Re skilled

Wellness Program

waynewaynedunncom Slide 64

But what happens to children and families when the breadwinner canrsquot

work

Slide 65

HIVAIDS and Rural Areas HIVAIDS 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

Slide 66

HIVAIDS 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

waynewaynedunncom

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 CSREthical

Project Award (2004) Numerous other awards Stanford Case Study

waynewaynedunncom Slide 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 69

Planned Program

Care Positive Integrate the Home Based Care

project with the Care process and launch as a fee for service based program to address the social and 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

Care Process

+

Home Based Care

=

Care Positive

waynewaynedunncom Slide 70

Care Positive Summary

waynewaynedunncom

Andhellip 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 $100000 and considerable reputational capital into them Industry went forward with modified HIVAIDS

programming but huge developmental impacts were lost

waynewaynedunncom Slide 72

MDG Impacts of Placer Dome in South Africa

1 Poverty and hunger 2 Some impact on primary education (School

feeding program) 3 Promote gender equality and empower women 4 Reduce child mortality 5 Improve maternal health 6 Combat HIVAIDS malaria and other diseass 7 Ensure environmental sustainability 8 Develop a global partnership for development

(Placer Dome CIDA Civil Society NGOs)

waynewaynedunncom

One thing leads to another

World Bank observed how Placer Domersquos leadership on HIVAIDS 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

waynewaynedunncom

PNG HIVAIDS Scoping mission to

determine what might be done and how Enthusiastic interest from

industry government multi-laterals (WHO UNAIDS World Banketc) ODA (AusAID) CIDA partnered with Place Dome to develop an

HIVAIDS strategy for PNG that integrated industry public sector civil society and international community

waynewaynedunncom

PNG Outcomes (or outputs ndash Irsquom never sure) Partnership with Mining

Industry Civil Society WHO UNAIDS UNDP World Bank PNG AIDS AusAID Oil Palm Industry etc National workshop on

HIVAIDS and publicprivate partnerships SouthSouth Collaboration

Industry government civil society international community study trip to South Africa

waynewaynedunncom

waynewaynedunncom

PNG AIDS mission to South Africa

waynewaynedunncom Slide 78

MDG Impacts of PNG HIVAIDS work

1 Poverty and hunger (nutritional supplements) 2 Some impact on primary education (peripheral) 3 Promote gender equality and empower women 4 Reduce child mortality 5 Improve maternal health 6 Combat HIVAIDS malaria and other diseass 7 Ensure environmental sustainability 8 Develop a global partnership for development

(Placer Dome CIDA Civil Society NGOs)

waynewaynedunncom

Eldorado Gold in Turkey

Major gold find in WestCentral Turkey No successful

mining project launched in decades Eurogold project

built launched and halted by community action in late 1990s ndash still mothballed

UsakKislidag Minesite

Eurogold site

waynewaynedunncom

Eldorado Gold in Turkey

Isolated rural area Nearly half of nearby

communities opposed to mine development Agriculture primary

economic activity in rural communities ndash smallmicro family farms

waynewaynedunncom

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

waynewaynedunncom

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 $075 to $1325 Opened second mine in Turkey

bull Able to deal with controversial watershed issues after relationship success in Usak

waynewaynedunncom Slide 83

MDG Impacts of Eldorado Gold

1 Poverty and hunger (minimal) 2 Some impact on primary education (peripheral) 3 Promote gender equality and empower women 4 Reduce child mortality 5 Improve maternal health 6 Combat HIVAIDS malaria and other diseass 7 Ensure environmental sustainability 8 Develop a global partnership for development

(Placer Dome CIDA Civil Society NGOs)

waynewaynedunncom

Underwater Logging in Ghana

waynewaynedunncom

Private Sector and International Development

Private sector especially resource extraction has a very mixed record bull Some horrendous disasters (Nigeria Warao Peoples in

Venezuela etc) bull Some great successes (Placer Dome Care project

mining and HIVAIDS 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

waynewaynedunncom

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

interestsobjectives overlap

waynewaynedunncom

SDCSR Implementation Challenges

more than a warm fuzzy issue Spending isnrsquot the answer

Plan

Framework

System

Results

Solving social problems Objectives

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Beyond Beads and Trinkets ndash BC Mining Review

A lsquohow torsquo article on mining and CSR

Wayne Dunn

BP Venezuela Indigenous Relations ndash Meeting the Challenge Responsibly and Sustainably

Situational assessment and strategic plan for BP Venezuela Authorized for release by BP

Wayne Dunn

Cameco Community Relations Report

Situational assessment and management strategy Authorized for release by Cameco

Wayne Dunn

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author Beyond Beads lsquon Trinkets A systematic approach to managing community relations

A conference paper describing a systematic approach to community relations management helping companies to methodically develop mutually beneficial relationships with local communities and interests (this is one of the earliest papers on this subject ndash written in 1998)

Wayne Dunn

The costs of conflict with local communities in the extractive industry

Analysis of the cost of community conflicts in the Extractive Sector

Rachel Davis and Daniel M Franks

Creating Shared Value

Harvard Business Review interview with Michael Porter

Video

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Social License Its all about value

Discussion on Social License and shareholder Value

Wayne Dunn

Its about Development Commentary on the CIDAMining Company issue

Wayne Dunn

Integrating corporate strategy and social responsibilitymdashmarket returns from stakeholder engagement

Discussion and analysis on market returns on stakeholder engagement

Witold J Henisz Sinziana Dorobantu and Lite J Narty

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

McGill Reporter ndash Four Burning Questions Wayne Dunn on CSR

Discussion on CSR Wayne Dunn

Miningrsquos contribution to sustainable development ndashan overview

Discussion paper prepared by the International Council on Mining and Metals

Millennium Development Goals

United Nations

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Mining and Agriculture Development

A short lsquohow torsquo guide for mining projects to engage with the local agriculture sector

Al Hingston

PDSA Social Value Brochure

Brochure on social value created by Placer Dome South Africa

Placer Dome

The Value of Social License

Opinion piece published in Northern Miner

Wayne Dunn

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Golden Opportunity When a Canadian multinational laid off hundreds of gold miners in South Africa it went many extra miles to help them get back on their feet

Stanford Business School Case Study on Placer Dome in South Africa

Wayne Dunn

The Changing Resource Development Paradigm Maximizing Sustainable Local Benefits from Resource Development

Strategic thought piece prepared for the government of British Columbia Canada

Wayne Dunn

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

The Disappearing Barriers Between Business And Non-profits Are Driving Innovation

Discussion paper

Katherine Pikus

When Condoms are not enough

World Bank staff magazine article on Placer Dome and South African mining industryrsquos work with HIVAIDS

Craig Andrews

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

MINING AND LOCAL ECONOMIC DEVELOPMENT IN PAPUA NEW GUINEA Preliminary Research on a Potential Pilot Project in Porgera and Lihir

Strategic research and action plan on mining and local economic development in Papua New Guinea prepared for the World Bank

Wayne Dunn

waynewaynedunncom

What we covered

We 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) Publicprivatecivil society collaboration ndash case study

and discussion (CIDA and Mining Companies) Open discussion on topics of interest (time permitting)

waynewaynedunncom

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 howwhy 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

waynewaynedunncom

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 howwhy 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

waynewaynedunncom

Alignment around Shared Value For shareholders For Communities For People For Governments

Private Sector Contributions To International Development

Remember

  • Private Sector Contributions To International Development
  • Session Objectives
  • Map of the morning How we will try to meet the objectives
  • Slide Number 4
  • What is ODA and FDI
  • What is ODA and FDI
  • Why discuss Private Sector Contribution anyway
  • FDIBusiness Outcomes
  • Intention and Strategy Make a Difference
  • Why does the private sector care
  • Community Consultation and Value
  • Itrsquos Real Money
  • CSR is a Value Strategy
  • Social License Failures cost
  • Why is CSR happening
  • The Mining World Has Changed
  • CSR is a complicated space
  • CSR amp Social License
  • Role of business is changing (click image to play video)
  • Case Studies (of successes)
  • Slide Number 21
  • Uranium Industry in Northern Saskatchewan
  • Challenging area
  • Challenging Times
  • Cameco in 1998
  • Cameco in Northern Saskatchewan (2010)
  • So how did Cameco and the industry do it
  • Placer Dome South Africa
  • Slide Number 29
  • Background
  • Background (cont)
  • Families amp Communities must benefit from mining
  • The Care Project
  • Implications
  • Slide Number 35
  • The Initial 4-Step Plan
  • Reality was different than we expected
  • Reality was different than expected
  • Meeting the challenges
  • TheProcess
  • Some results
  • Chicken raising business
  • Furniture making
  • Unique training programs
  • Rice farming in Mozambique
  • Spaza (convenience) shop
  • And the business value ishellip
  • Slide Number 48
  • What was in it for Placer Dome
  • And then there is HIVAIDS
  • HIVAIDS Facts (in 2000)
  • HIVAIDS Impact
  • HIVAIDS and Gold Mining
  • HIVAIDS Programming
  • Minesite Program
  • Minesite Program
  • Current Community Program
  • Community Mobile Clinic
  • And when HIV prevention doesnrsquot work
  • Industry Home Based Care
  • Home Based Care
  • INDUSTRY HOME BASED CARE RESULTS(Year One)
  • Overview of Placer Dome AIDS Programming
  • Slide Number 64
  • HIVAIDS and Rural Areas
  • HIVAIDS and Rural Areas
  • Reputational Results for Placer Dome
  • Where to next
  • Planned Program
  • Care Positive Summary
  • Andhellip
  • MDG Impacts of Placer Dome in South Africa
  • One thing leads to another
  • PNG HIVAIDS
  • PNG Outcomes (or outputs ndash Irsquom never sure)
  • Slide Number 76
  • PNG AIDS mission to South Africa
  • MDG Impacts of PNG HIVAIDS work
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • MDG Impacts of Eldorado Gold
  • Underwater Logging in Ghana
  • Private Sector and International Development
  • Group Exercise
  • Slide Number 87
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • What we covered
  • Session Objectives
  • Session Objectives
  • Remember
Page 51: Private Sector Contributions To International Development – McGill Executive Education Program Lecture

waynewaynedunncom Slide 51

HIVAIDS Facts (in 2000)

ESTIMATED THAT 12 OF TOTAL RSA POPULATION AND 25 OF MINEWORKERS ARE HIV+

ALREADY 400000 PEOPLE ARE AIDS SICK AND THIS WILL INCREASE TO 14 M BY 2010

YOUNG WOMEN PARTICULARLY VULNERABLE ndash 239 AGED BETWEEN 15 ndash 49 ALREADY INFECTED AND WILL RISE TO 297 BY 2007

AIDS ORPHANS AT PRESENT AMOUNT TO 660000+ AND WILL RISE TO 18M BY 2015

ACCUMULATIVE AIDS DEATHS WILL RISE TO 9M BY 2015

Slide 52

HIVAIDS Impact REDUCED ECONOMIC GROWTH RATE ndash 2010 GDP 20 below a non AIDS

scenario REDUCED POPULATION ndash RSA population 10M smaller than non AIDS scenario SKYROCKETING DEMANDS ON PUBLIC HEALTH SYSTEM - RADICALLY CHANGED PRIVATE SPENDING PATTERNS ndash to healthcare and

funeral costs IMPACT ON SOCIO-ECONOMIC STABILITY (orphans)

HIVAIDS 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 Africa today Nobody can afford to ignore it

Slide 53

HIVAIDS and Gold Mining

$10oz impact if nothing is done (5 of production costs) ~$3oz with maximum

intervention Impact on social and political

stability

Slide 54

HIVAIDS Programming Placer Dome program ndash

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 55

Minesite Program

TRAINING AND EDUCATION

STI amp TB TREATMENT

CONDOM DISTRIBUTION

PEER EDUCATION

VOLUNTARY COUNSELING AND TESTING (VCT)

WELLNESS PROGRAM

MEDICAL REPATRIATION

waynewaynedunncom Slide 56

Minesite Program

waynewaynedunncom Slide 57

Current Community Program

AWARENESS AND EDUCATION PROGRAMS

MOBILE CLINIC

CONDOM amp FEMIDOM DISTRIBUTION

PERIODIC PRESUMPTIVE TREATMENT (PPT)

TREATMENT FOR SEXUALLY TRANSMITTED INFECTIONS ( STI)

waynewaynedunncom Slide 58

COMMUNITY PROGRAM

Community Mobile Clinic

waynewaynedunncom Slide 59

And when HIV prevention doesnrsquot 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 60

Industry Home Based Care

TEBA INFRA-STRUCTURE

TRAINING OF CARE GIVERS

SUPPORT STRUCTURE ndash QUALIFIED STAFF

MONTHLY MEDICATION

WORK WITH OTHER STAKEHOLDERS (EG TRADITIONAL HEALERS)

WORLD BANK DEVELOPMENT INNOVATION AWARD

waynewaynedunncom Slide 61

Home Based Care

Slide 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

waynewaynedunncom Slide 63

Overview of Placer Dome AIDS Programming SOUTH DEEP Sustainable Development Department

bullVoluntary Counseling and testing HIV Negative bullContinue working

On Mine Program Community Program

Modified work program Farm bullAgricultural work Environmental

Medical repatriation

Home Based Care

Benefits Care Positive

HBC EC OPP

Back to work or Re skilled

Wellness Program

waynewaynedunncom Slide 64

But what happens to children and families when the breadwinner canrsquot

work

Slide 65

HIVAIDS and Rural Areas HIVAIDS 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

Slide 66

HIVAIDS 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

waynewaynedunncom

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 CSREthical

Project Award (2004) Numerous other awards Stanford Case Study

waynewaynedunncom Slide 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 69

Planned Program

Care Positive Integrate the Home Based Care

project with the Care process and launch as a fee for service based program to address the social and 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

Care Process

+

Home Based Care

=

Care Positive

waynewaynedunncom Slide 70

Care Positive Summary

waynewaynedunncom

Andhellip 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 $100000 and considerable reputational capital into them Industry went forward with modified HIVAIDS

programming but huge developmental impacts were lost

waynewaynedunncom Slide 72

MDG Impacts of Placer Dome in South Africa

1 Poverty and hunger 2 Some impact on primary education (School

feeding program) 3 Promote gender equality and empower women 4 Reduce child mortality 5 Improve maternal health 6 Combat HIVAIDS malaria and other diseass 7 Ensure environmental sustainability 8 Develop a global partnership for development

(Placer Dome CIDA Civil Society NGOs)

waynewaynedunncom

One thing leads to another

World Bank observed how Placer Domersquos leadership on HIVAIDS 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

waynewaynedunncom

PNG HIVAIDS Scoping mission to

determine what might be done and how Enthusiastic interest from

industry government multi-laterals (WHO UNAIDS World Banketc) ODA (AusAID) CIDA partnered with Place Dome to develop an

HIVAIDS strategy for PNG that integrated industry public sector civil society and international community

waynewaynedunncom

PNG Outcomes (or outputs ndash Irsquom never sure) Partnership with Mining

Industry Civil Society WHO UNAIDS UNDP World Bank PNG AIDS AusAID Oil Palm Industry etc National workshop on

HIVAIDS and publicprivate partnerships SouthSouth Collaboration

Industry government civil society international community study trip to South Africa

waynewaynedunncom

waynewaynedunncom

PNG AIDS mission to South Africa

waynewaynedunncom Slide 78

MDG Impacts of PNG HIVAIDS work

1 Poverty and hunger (nutritional supplements) 2 Some impact on primary education (peripheral) 3 Promote gender equality and empower women 4 Reduce child mortality 5 Improve maternal health 6 Combat HIVAIDS malaria and other diseass 7 Ensure environmental sustainability 8 Develop a global partnership for development

(Placer Dome CIDA Civil Society NGOs)

waynewaynedunncom

Eldorado Gold in Turkey

Major gold find in WestCentral Turkey No successful

mining project launched in decades Eurogold project

built launched and halted by community action in late 1990s ndash still mothballed

UsakKislidag Minesite

Eurogold site

waynewaynedunncom

Eldorado Gold in Turkey

Isolated rural area Nearly half of nearby

communities opposed to mine development Agriculture primary

economic activity in rural communities ndash smallmicro family farms

waynewaynedunncom

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

waynewaynedunncom

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 $075 to $1325 Opened second mine in Turkey

bull Able to deal with controversial watershed issues after relationship success in Usak

waynewaynedunncom Slide 83

MDG Impacts of Eldorado Gold

1 Poverty and hunger (minimal) 2 Some impact on primary education (peripheral) 3 Promote gender equality and empower women 4 Reduce child mortality 5 Improve maternal health 6 Combat HIVAIDS malaria and other diseass 7 Ensure environmental sustainability 8 Develop a global partnership for development

(Placer Dome CIDA Civil Society NGOs)

waynewaynedunncom

Underwater Logging in Ghana

waynewaynedunncom

Private Sector and International Development

Private sector especially resource extraction has a very mixed record bull Some horrendous disasters (Nigeria Warao Peoples in

Venezuela etc) bull Some great successes (Placer Dome Care project

mining and HIVAIDS 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

waynewaynedunncom

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

interestsobjectives overlap

waynewaynedunncom

SDCSR Implementation Challenges

more than a warm fuzzy issue Spending isnrsquot the answer

Plan

Framework

System

Results

Solving social problems Objectives

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Beyond Beads and Trinkets ndash BC Mining Review

A lsquohow torsquo article on mining and CSR

Wayne Dunn

BP Venezuela Indigenous Relations ndash Meeting the Challenge Responsibly and Sustainably

Situational assessment and strategic plan for BP Venezuela Authorized for release by BP

Wayne Dunn

Cameco Community Relations Report

Situational assessment and management strategy Authorized for release by Cameco

Wayne Dunn

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author Beyond Beads lsquon Trinkets A systematic approach to managing community relations

A conference paper describing a systematic approach to community relations management helping companies to methodically develop mutually beneficial relationships with local communities and interests (this is one of the earliest papers on this subject ndash written in 1998)

Wayne Dunn

The costs of conflict with local communities in the extractive industry

Analysis of the cost of community conflicts in the Extractive Sector

Rachel Davis and Daniel M Franks

Creating Shared Value

Harvard Business Review interview with Michael Porter

Video

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Social License Its all about value

Discussion on Social License and shareholder Value

Wayne Dunn

Its about Development Commentary on the CIDAMining Company issue

Wayne Dunn

Integrating corporate strategy and social responsibilitymdashmarket returns from stakeholder engagement

Discussion and analysis on market returns on stakeholder engagement

Witold J Henisz Sinziana Dorobantu and Lite J Narty

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

McGill Reporter ndash Four Burning Questions Wayne Dunn on CSR

Discussion on CSR Wayne Dunn

Miningrsquos contribution to sustainable development ndashan overview

Discussion paper prepared by the International Council on Mining and Metals

Millennium Development Goals

United Nations

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Mining and Agriculture Development

A short lsquohow torsquo guide for mining projects to engage with the local agriculture sector

Al Hingston

PDSA Social Value Brochure

Brochure on social value created by Placer Dome South Africa

Placer Dome

The Value of Social License

Opinion piece published in Northern Miner

Wayne Dunn

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Golden Opportunity When a Canadian multinational laid off hundreds of gold miners in South Africa it went many extra miles to help them get back on their feet

Stanford Business School Case Study on Placer Dome in South Africa

Wayne Dunn

The Changing Resource Development Paradigm Maximizing Sustainable Local Benefits from Resource Development

Strategic thought piece prepared for the government of British Columbia Canada

Wayne Dunn

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

The Disappearing Barriers Between Business And Non-profits Are Driving Innovation

Discussion paper

Katherine Pikus

When Condoms are not enough

World Bank staff magazine article on Placer Dome and South African mining industryrsquos work with HIVAIDS

Craig Andrews

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

MINING AND LOCAL ECONOMIC DEVELOPMENT IN PAPUA NEW GUINEA Preliminary Research on a Potential Pilot Project in Porgera and Lihir

Strategic research and action plan on mining and local economic development in Papua New Guinea prepared for the World Bank

Wayne Dunn

waynewaynedunncom

What we covered

We 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) Publicprivatecivil society collaboration ndash case study

and discussion (CIDA and Mining Companies) Open discussion on topics of interest (time permitting)

waynewaynedunncom

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 howwhy 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

waynewaynedunncom

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 howwhy 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

waynewaynedunncom

Alignment around Shared Value For shareholders For Communities For People For Governments

Private Sector Contributions To International Development

Remember

  • Private Sector Contributions To International Development
  • Session Objectives
  • Map of the morning How we will try to meet the objectives
  • Slide Number 4
  • What is ODA and FDI
  • What is ODA and FDI
  • Why discuss Private Sector Contribution anyway
  • FDIBusiness Outcomes
  • Intention and Strategy Make a Difference
  • Why does the private sector care
  • Community Consultation and Value
  • Itrsquos Real Money
  • CSR is a Value Strategy
  • Social License Failures cost
  • Why is CSR happening
  • The Mining World Has Changed
  • CSR is a complicated space
  • CSR amp Social License
  • Role of business is changing (click image to play video)
  • Case Studies (of successes)
  • Slide Number 21
  • Uranium Industry in Northern Saskatchewan
  • Challenging area
  • Challenging Times
  • Cameco in 1998
  • Cameco in Northern Saskatchewan (2010)
  • So how did Cameco and the industry do it
  • Placer Dome South Africa
  • Slide Number 29
  • Background
  • Background (cont)
  • Families amp Communities must benefit from mining
  • The Care Project
  • Implications
  • Slide Number 35
  • The Initial 4-Step Plan
  • Reality was different than we expected
  • Reality was different than expected
  • Meeting the challenges
  • TheProcess
  • Some results
  • Chicken raising business
  • Furniture making
  • Unique training programs
  • Rice farming in Mozambique
  • Spaza (convenience) shop
  • And the business value ishellip
  • Slide Number 48
  • What was in it for Placer Dome
  • And then there is HIVAIDS
  • HIVAIDS Facts (in 2000)
  • HIVAIDS Impact
  • HIVAIDS and Gold Mining
  • HIVAIDS Programming
  • Minesite Program
  • Minesite Program
  • Current Community Program
  • Community Mobile Clinic
  • And when HIV prevention doesnrsquot work
  • Industry Home Based Care
  • Home Based Care
  • INDUSTRY HOME BASED CARE RESULTS(Year One)
  • Overview of Placer Dome AIDS Programming
  • Slide Number 64
  • HIVAIDS and Rural Areas
  • HIVAIDS and Rural Areas
  • Reputational Results for Placer Dome
  • Where to next
  • Planned Program
  • Care Positive Summary
  • Andhellip
  • MDG Impacts of Placer Dome in South Africa
  • One thing leads to another
  • PNG HIVAIDS
  • PNG Outcomes (or outputs ndash Irsquom never sure)
  • Slide Number 76
  • PNG AIDS mission to South Africa
  • MDG Impacts of PNG HIVAIDS work
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • MDG Impacts of Eldorado Gold
  • Underwater Logging in Ghana
  • Private Sector and International Development
  • Group Exercise
  • Slide Number 87
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • What we covered
  • Session Objectives
  • Session Objectives
  • Remember
Page 52: Private Sector Contributions To International Development – McGill Executive Education Program Lecture

Slide 52

HIVAIDS Impact REDUCED ECONOMIC GROWTH RATE ndash 2010 GDP 20 below a non AIDS

scenario REDUCED POPULATION ndash RSA population 10M smaller than non AIDS scenario SKYROCKETING DEMANDS ON PUBLIC HEALTH SYSTEM - RADICALLY CHANGED PRIVATE SPENDING PATTERNS ndash to healthcare and

funeral costs IMPACT ON SOCIO-ECONOMIC STABILITY (orphans)

HIVAIDS 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 Africa today Nobody can afford to ignore it

Slide 53

HIVAIDS and Gold Mining

$10oz impact if nothing is done (5 of production costs) ~$3oz with maximum

intervention Impact on social and political

stability

Slide 54

HIVAIDS Programming Placer Dome program ndash

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 55

Minesite Program

TRAINING AND EDUCATION

STI amp TB TREATMENT

CONDOM DISTRIBUTION

PEER EDUCATION

VOLUNTARY COUNSELING AND TESTING (VCT)

WELLNESS PROGRAM

MEDICAL REPATRIATION

waynewaynedunncom Slide 56

Minesite Program

waynewaynedunncom Slide 57

Current Community Program

AWARENESS AND EDUCATION PROGRAMS

MOBILE CLINIC

CONDOM amp FEMIDOM DISTRIBUTION

PERIODIC PRESUMPTIVE TREATMENT (PPT)

TREATMENT FOR SEXUALLY TRANSMITTED INFECTIONS ( STI)

waynewaynedunncom Slide 58

COMMUNITY PROGRAM

Community Mobile Clinic

waynewaynedunncom Slide 59

And when HIV prevention doesnrsquot 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 60

Industry Home Based Care

TEBA INFRA-STRUCTURE

TRAINING OF CARE GIVERS

SUPPORT STRUCTURE ndash QUALIFIED STAFF

MONTHLY MEDICATION

WORK WITH OTHER STAKEHOLDERS (EG TRADITIONAL HEALERS)

WORLD BANK DEVELOPMENT INNOVATION AWARD

waynewaynedunncom Slide 61

Home Based Care

Slide 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

waynewaynedunncom Slide 63

Overview of Placer Dome AIDS Programming SOUTH DEEP Sustainable Development Department

bullVoluntary Counseling and testing HIV Negative bullContinue working

On Mine Program Community Program

Modified work program Farm bullAgricultural work Environmental

Medical repatriation

Home Based Care

Benefits Care Positive

HBC EC OPP

Back to work or Re skilled

Wellness Program

waynewaynedunncom Slide 64

But what happens to children and families when the breadwinner canrsquot

work

Slide 65

HIVAIDS and Rural Areas HIVAIDS 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

Slide 66

HIVAIDS 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

waynewaynedunncom

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 CSREthical

Project Award (2004) Numerous other awards Stanford Case Study

waynewaynedunncom Slide 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 69

Planned Program

Care Positive Integrate the Home Based Care

project with the Care process and launch as a fee for service based program to address the social and 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

Care Process

+

Home Based Care

=

Care Positive

waynewaynedunncom Slide 70

Care Positive Summary

waynewaynedunncom

Andhellip 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 $100000 and considerable reputational capital into them Industry went forward with modified HIVAIDS

programming but huge developmental impacts were lost

waynewaynedunncom Slide 72

MDG Impacts of Placer Dome in South Africa

1 Poverty and hunger 2 Some impact on primary education (School

feeding program) 3 Promote gender equality and empower women 4 Reduce child mortality 5 Improve maternal health 6 Combat HIVAIDS malaria and other diseass 7 Ensure environmental sustainability 8 Develop a global partnership for development

(Placer Dome CIDA Civil Society NGOs)

waynewaynedunncom

One thing leads to another

World Bank observed how Placer Domersquos leadership on HIVAIDS 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

waynewaynedunncom

PNG HIVAIDS Scoping mission to

determine what might be done and how Enthusiastic interest from

industry government multi-laterals (WHO UNAIDS World Banketc) ODA (AusAID) CIDA partnered with Place Dome to develop an

HIVAIDS strategy for PNG that integrated industry public sector civil society and international community

waynewaynedunncom

PNG Outcomes (or outputs ndash Irsquom never sure) Partnership with Mining

Industry Civil Society WHO UNAIDS UNDP World Bank PNG AIDS AusAID Oil Palm Industry etc National workshop on

HIVAIDS and publicprivate partnerships SouthSouth Collaboration

Industry government civil society international community study trip to South Africa

waynewaynedunncom

waynewaynedunncom

PNG AIDS mission to South Africa

waynewaynedunncom Slide 78

MDG Impacts of PNG HIVAIDS work

1 Poverty and hunger (nutritional supplements) 2 Some impact on primary education (peripheral) 3 Promote gender equality and empower women 4 Reduce child mortality 5 Improve maternal health 6 Combat HIVAIDS malaria and other diseass 7 Ensure environmental sustainability 8 Develop a global partnership for development

(Placer Dome CIDA Civil Society NGOs)

waynewaynedunncom

Eldorado Gold in Turkey

Major gold find in WestCentral Turkey No successful

mining project launched in decades Eurogold project

built launched and halted by community action in late 1990s ndash still mothballed

UsakKislidag Minesite

Eurogold site

waynewaynedunncom

Eldorado Gold in Turkey

Isolated rural area Nearly half of nearby

communities opposed to mine development Agriculture primary

economic activity in rural communities ndash smallmicro family farms

waynewaynedunncom

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

waynewaynedunncom

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 $075 to $1325 Opened second mine in Turkey

bull Able to deal with controversial watershed issues after relationship success in Usak

waynewaynedunncom Slide 83

MDG Impacts of Eldorado Gold

1 Poverty and hunger (minimal) 2 Some impact on primary education (peripheral) 3 Promote gender equality and empower women 4 Reduce child mortality 5 Improve maternal health 6 Combat HIVAIDS malaria and other diseass 7 Ensure environmental sustainability 8 Develop a global partnership for development

(Placer Dome CIDA Civil Society NGOs)

waynewaynedunncom

Underwater Logging in Ghana

waynewaynedunncom

Private Sector and International Development

Private sector especially resource extraction has a very mixed record bull Some horrendous disasters (Nigeria Warao Peoples in

Venezuela etc) bull Some great successes (Placer Dome Care project

mining and HIVAIDS 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

waynewaynedunncom

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

interestsobjectives overlap

waynewaynedunncom

SDCSR Implementation Challenges

more than a warm fuzzy issue Spending isnrsquot the answer

Plan

Framework

System

Results

Solving social problems Objectives

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Beyond Beads and Trinkets ndash BC Mining Review

A lsquohow torsquo article on mining and CSR

Wayne Dunn

BP Venezuela Indigenous Relations ndash Meeting the Challenge Responsibly and Sustainably

Situational assessment and strategic plan for BP Venezuela Authorized for release by BP

Wayne Dunn

Cameco Community Relations Report

Situational assessment and management strategy Authorized for release by Cameco

Wayne Dunn

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author Beyond Beads lsquon Trinkets A systematic approach to managing community relations

A conference paper describing a systematic approach to community relations management helping companies to methodically develop mutually beneficial relationships with local communities and interests (this is one of the earliest papers on this subject ndash written in 1998)

Wayne Dunn

The costs of conflict with local communities in the extractive industry

Analysis of the cost of community conflicts in the Extractive Sector

Rachel Davis and Daniel M Franks

Creating Shared Value

Harvard Business Review interview with Michael Porter

Video

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Social License Its all about value

Discussion on Social License and shareholder Value

Wayne Dunn

Its about Development Commentary on the CIDAMining Company issue

Wayne Dunn

Integrating corporate strategy and social responsibilitymdashmarket returns from stakeholder engagement

Discussion and analysis on market returns on stakeholder engagement

Witold J Henisz Sinziana Dorobantu and Lite J Narty

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

McGill Reporter ndash Four Burning Questions Wayne Dunn on CSR

Discussion on CSR Wayne Dunn

Miningrsquos contribution to sustainable development ndashan overview

Discussion paper prepared by the International Council on Mining and Metals

Millennium Development Goals

United Nations

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Mining and Agriculture Development

A short lsquohow torsquo guide for mining projects to engage with the local agriculture sector

Al Hingston

PDSA Social Value Brochure

Brochure on social value created by Placer Dome South Africa

Placer Dome

The Value of Social License

Opinion piece published in Northern Miner

Wayne Dunn

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Golden Opportunity When a Canadian multinational laid off hundreds of gold miners in South Africa it went many extra miles to help them get back on their feet

Stanford Business School Case Study on Placer Dome in South Africa

Wayne Dunn

The Changing Resource Development Paradigm Maximizing Sustainable Local Benefits from Resource Development

Strategic thought piece prepared for the government of British Columbia Canada

Wayne Dunn

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

The Disappearing Barriers Between Business And Non-profits Are Driving Innovation

Discussion paper

Katherine Pikus

When Condoms are not enough

World Bank staff magazine article on Placer Dome and South African mining industryrsquos work with HIVAIDS

Craig Andrews

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

MINING AND LOCAL ECONOMIC DEVELOPMENT IN PAPUA NEW GUINEA Preliminary Research on a Potential Pilot Project in Porgera and Lihir

Strategic research and action plan on mining and local economic development in Papua New Guinea prepared for the World Bank

Wayne Dunn

waynewaynedunncom

What we covered

We 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) Publicprivatecivil society collaboration ndash case study

and discussion (CIDA and Mining Companies) Open discussion on topics of interest (time permitting)

waynewaynedunncom

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 howwhy 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

waynewaynedunncom

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 howwhy 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

waynewaynedunncom

Alignment around Shared Value For shareholders For Communities For People For Governments

Private Sector Contributions To International Development

Remember

  • Private Sector Contributions To International Development
  • Session Objectives
  • Map of the morning How we will try to meet the objectives
  • Slide Number 4
  • What is ODA and FDI
  • What is ODA and FDI
  • Why discuss Private Sector Contribution anyway
  • FDIBusiness Outcomes
  • Intention and Strategy Make a Difference
  • Why does the private sector care
  • Community Consultation and Value
  • Itrsquos Real Money
  • CSR is a Value Strategy
  • Social License Failures cost
  • Why is CSR happening
  • The Mining World Has Changed
  • CSR is a complicated space
  • CSR amp Social License
  • Role of business is changing (click image to play video)
  • Case Studies (of successes)
  • Slide Number 21
  • Uranium Industry in Northern Saskatchewan
  • Challenging area
  • Challenging Times
  • Cameco in 1998
  • Cameco in Northern Saskatchewan (2010)
  • So how did Cameco and the industry do it
  • Placer Dome South Africa
  • Slide Number 29
  • Background
  • Background (cont)
  • Families amp Communities must benefit from mining
  • The Care Project
  • Implications
  • Slide Number 35
  • The Initial 4-Step Plan
  • Reality was different than we expected
  • Reality was different than expected
  • Meeting the challenges
  • TheProcess
  • Some results
  • Chicken raising business
  • Furniture making
  • Unique training programs
  • Rice farming in Mozambique
  • Spaza (convenience) shop
  • And the business value ishellip
  • Slide Number 48
  • What was in it for Placer Dome
  • And then there is HIVAIDS
  • HIVAIDS Facts (in 2000)
  • HIVAIDS Impact
  • HIVAIDS and Gold Mining
  • HIVAIDS Programming
  • Minesite Program
  • Minesite Program
  • Current Community Program
  • Community Mobile Clinic
  • And when HIV prevention doesnrsquot work
  • Industry Home Based Care
  • Home Based Care
  • INDUSTRY HOME BASED CARE RESULTS(Year One)
  • Overview of Placer Dome AIDS Programming
  • Slide Number 64
  • HIVAIDS and Rural Areas
  • HIVAIDS and Rural Areas
  • Reputational Results for Placer Dome
  • Where to next
  • Planned Program
  • Care Positive Summary
  • Andhellip
  • MDG Impacts of Placer Dome in South Africa
  • One thing leads to another
  • PNG HIVAIDS
  • PNG Outcomes (or outputs ndash Irsquom never sure)
  • Slide Number 76
  • PNG AIDS mission to South Africa
  • MDG Impacts of PNG HIVAIDS work
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • MDG Impacts of Eldorado Gold
  • Underwater Logging in Ghana
  • Private Sector and International Development
  • Group Exercise
  • Slide Number 87
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • What we covered
  • Session Objectives
  • Session Objectives
  • Remember
Page 53: Private Sector Contributions To International Development – McGill Executive Education Program Lecture

Slide 53

HIVAIDS and Gold Mining

$10oz impact if nothing is done (5 of production costs) ~$3oz with maximum

intervention Impact on social and political

stability

Slide 54

HIVAIDS Programming Placer Dome program ndash

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 55

Minesite Program

TRAINING AND EDUCATION

STI amp TB TREATMENT

CONDOM DISTRIBUTION

PEER EDUCATION

VOLUNTARY COUNSELING AND TESTING (VCT)

WELLNESS PROGRAM

MEDICAL REPATRIATION

waynewaynedunncom Slide 56

Minesite Program

waynewaynedunncom Slide 57

Current Community Program

AWARENESS AND EDUCATION PROGRAMS

MOBILE CLINIC

CONDOM amp FEMIDOM DISTRIBUTION

PERIODIC PRESUMPTIVE TREATMENT (PPT)

TREATMENT FOR SEXUALLY TRANSMITTED INFECTIONS ( STI)

waynewaynedunncom Slide 58

COMMUNITY PROGRAM

Community Mobile Clinic

waynewaynedunncom Slide 59

And when HIV prevention doesnrsquot 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 60

Industry Home Based Care

TEBA INFRA-STRUCTURE

TRAINING OF CARE GIVERS

SUPPORT STRUCTURE ndash QUALIFIED STAFF

MONTHLY MEDICATION

WORK WITH OTHER STAKEHOLDERS (EG TRADITIONAL HEALERS)

WORLD BANK DEVELOPMENT INNOVATION AWARD

waynewaynedunncom Slide 61

Home Based Care

Slide 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

waynewaynedunncom Slide 63

Overview of Placer Dome AIDS Programming SOUTH DEEP Sustainable Development Department

bullVoluntary Counseling and testing HIV Negative bullContinue working

On Mine Program Community Program

Modified work program Farm bullAgricultural work Environmental

Medical repatriation

Home Based Care

Benefits Care Positive

HBC EC OPP

Back to work or Re skilled

Wellness Program

waynewaynedunncom Slide 64

But what happens to children and families when the breadwinner canrsquot

work

Slide 65

HIVAIDS and Rural Areas HIVAIDS 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

Slide 66

HIVAIDS 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

waynewaynedunncom

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 CSREthical

Project Award (2004) Numerous other awards Stanford Case Study

waynewaynedunncom Slide 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 69

Planned Program

Care Positive Integrate the Home Based Care

project with the Care process and launch as a fee for service based program to address the social and 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

Care Process

+

Home Based Care

=

Care Positive

waynewaynedunncom Slide 70

Care Positive Summary

waynewaynedunncom

Andhellip 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 $100000 and considerable reputational capital into them Industry went forward with modified HIVAIDS

programming but huge developmental impacts were lost

waynewaynedunncom Slide 72

MDG Impacts of Placer Dome in South Africa

1 Poverty and hunger 2 Some impact on primary education (School

feeding program) 3 Promote gender equality and empower women 4 Reduce child mortality 5 Improve maternal health 6 Combat HIVAIDS malaria and other diseass 7 Ensure environmental sustainability 8 Develop a global partnership for development

(Placer Dome CIDA Civil Society NGOs)

waynewaynedunncom

One thing leads to another

World Bank observed how Placer Domersquos leadership on HIVAIDS 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

waynewaynedunncom

PNG HIVAIDS Scoping mission to

determine what might be done and how Enthusiastic interest from

industry government multi-laterals (WHO UNAIDS World Banketc) ODA (AusAID) CIDA partnered with Place Dome to develop an

HIVAIDS strategy for PNG that integrated industry public sector civil society and international community

waynewaynedunncom

PNG Outcomes (or outputs ndash Irsquom never sure) Partnership with Mining

Industry Civil Society WHO UNAIDS UNDP World Bank PNG AIDS AusAID Oil Palm Industry etc National workshop on

HIVAIDS and publicprivate partnerships SouthSouth Collaboration

Industry government civil society international community study trip to South Africa

waynewaynedunncom

waynewaynedunncom

PNG AIDS mission to South Africa

waynewaynedunncom Slide 78

MDG Impacts of PNG HIVAIDS work

1 Poverty and hunger (nutritional supplements) 2 Some impact on primary education (peripheral) 3 Promote gender equality and empower women 4 Reduce child mortality 5 Improve maternal health 6 Combat HIVAIDS malaria and other diseass 7 Ensure environmental sustainability 8 Develop a global partnership for development

(Placer Dome CIDA Civil Society NGOs)

waynewaynedunncom

Eldorado Gold in Turkey

Major gold find in WestCentral Turkey No successful

mining project launched in decades Eurogold project

built launched and halted by community action in late 1990s ndash still mothballed

UsakKislidag Minesite

Eurogold site

waynewaynedunncom

Eldorado Gold in Turkey

Isolated rural area Nearly half of nearby

communities opposed to mine development Agriculture primary

economic activity in rural communities ndash smallmicro family farms

waynewaynedunncom

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

waynewaynedunncom

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 $075 to $1325 Opened second mine in Turkey

bull Able to deal with controversial watershed issues after relationship success in Usak

waynewaynedunncom Slide 83

MDG Impacts of Eldorado Gold

1 Poverty and hunger (minimal) 2 Some impact on primary education (peripheral) 3 Promote gender equality and empower women 4 Reduce child mortality 5 Improve maternal health 6 Combat HIVAIDS malaria and other diseass 7 Ensure environmental sustainability 8 Develop a global partnership for development

(Placer Dome CIDA Civil Society NGOs)

waynewaynedunncom

Underwater Logging in Ghana

waynewaynedunncom

Private Sector and International Development

Private sector especially resource extraction has a very mixed record bull Some horrendous disasters (Nigeria Warao Peoples in

Venezuela etc) bull Some great successes (Placer Dome Care project

mining and HIVAIDS 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

waynewaynedunncom

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

interestsobjectives overlap

waynewaynedunncom

SDCSR Implementation Challenges

more than a warm fuzzy issue Spending isnrsquot the answer

Plan

Framework

System

Results

Solving social problems Objectives

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Beyond Beads and Trinkets ndash BC Mining Review

A lsquohow torsquo article on mining and CSR

Wayne Dunn

BP Venezuela Indigenous Relations ndash Meeting the Challenge Responsibly and Sustainably

Situational assessment and strategic plan for BP Venezuela Authorized for release by BP

Wayne Dunn

Cameco Community Relations Report

Situational assessment and management strategy Authorized for release by Cameco

Wayne Dunn

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author Beyond Beads lsquon Trinkets A systematic approach to managing community relations

A conference paper describing a systematic approach to community relations management helping companies to methodically develop mutually beneficial relationships with local communities and interests (this is one of the earliest papers on this subject ndash written in 1998)

Wayne Dunn

The costs of conflict with local communities in the extractive industry

Analysis of the cost of community conflicts in the Extractive Sector

Rachel Davis and Daniel M Franks

Creating Shared Value

Harvard Business Review interview with Michael Porter

Video

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Social License Its all about value

Discussion on Social License and shareholder Value

Wayne Dunn

Its about Development Commentary on the CIDAMining Company issue

Wayne Dunn

Integrating corporate strategy and social responsibilitymdashmarket returns from stakeholder engagement

Discussion and analysis on market returns on stakeholder engagement

Witold J Henisz Sinziana Dorobantu and Lite J Narty

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

McGill Reporter ndash Four Burning Questions Wayne Dunn on CSR

Discussion on CSR Wayne Dunn

Miningrsquos contribution to sustainable development ndashan overview

Discussion paper prepared by the International Council on Mining and Metals

Millennium Development Goals

United Nations

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Mining and Agriculture Development

A short lsquohow torsquo guide for mining projects to engage with the local agriculture sector

Al Hingston

PDSA Social Value Brochure

Brochure on social value created by Placer Dome South Africa

Placer Dome

The Value of Social License

Opinion piece published in Northern Miner

Wayne Dunn

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Golden Opportunity When a Canadian multinational laid off hundreds of gold miners in South Africa it went many extra miles to help them get back on their feet

Stanford Business School Case Study on Placer Dome in South Africa

Wayne Dunn

The Changing Resource Development Paradigm Maximizing Sustainable Local Benefits from Resource Development

Strategic thought piece prepared for the government of British Columbia Canada

Wayne Dunn

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

The Disappearing Barriers Between Business And Non-profits Are Driving Innovation

Discussion paper

Katherine Pikus

When Condoms are not enough

World Bank staff magazine article on Placer Dome and South African mining industryrsquos work with HIVAIDS

Craig Andrews

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

MINING AND LOCAL ECONOMIC DEVELOPMENT IN PAPUA NEW GUINEA Preliminary Research on a Potential Pilot Project in Porgera and Lihir

Strategic research and action plan on mining and local economic development in Papua New Guinea prepared for the World Bank

Wayne Dunn

waynewaynedunncom

What we covered

We 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) Publicprivatecivil society collaboration ndash case study

and discussion (CIDA and Mining Companies) Open discussion on topics of interest (time permitting)

waynewaynedunncom

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 howwhy 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

waynewaynedunncom

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 howwhy 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

waynewaynedunncom

Alignment around Shared Value For shareholders For Communities For People For Governments

Private Sector Contributions To International Development

Remember

  • Private Sector Contributions To International Development
  • Session Objectives
  • Map of the morning How we will try to meet the objectives
  • Slide Number 4
  • What is ODA and FDI
  • What is ODA and FDI
  • Why discuss Private Sector Contribution anyway
  • FDIBusiness Outcomes
  • Intention and Strategy Make a Difference
  • Why does the private sector care
  • Community Consultation and Value
  • Itrsquos Real Money
  • CSR is a Value Strategy
  • Social License Failures cost
  • Why is CSR happening
  • The Mining World Has Changed
  • CSR is a complicated space
  • CSR amp Social License
  • Role of business is changing (click image to play video)
  • Case Studies (of successes)
  • Slide Number 21
  • Uranium Industry in Northern Saskatchewan
  • Challenging area
  • Challenging Times
  • Cameco in 1998
  • Cameco in Northern Saskatchewan (2010)
  • So how did Cameco and the industry do it
  • Placer Dome South Africa
  • Slide Number 29
  • Background
  • Background (cont)
  • Families amp Communities must benefit from mining
  • The Care Project
  • Implications
  • Slide Number 35
  • The Initial 4-Step Plan
  • Reality was different than we expected
  • Reality was different than expected
  • Meeting the challenges
  • TheProcess
  • Some results
  • Chicken raising business
  • Furniture making
  • Unique training programs
  • Rice farming in Mozambique
  • Spaza (convenience) shop
  • And the business value ishellip
  • Slide Number 48
  • What was in it for Placer Dome
  • And then there is HIVAIDS
  • HIVAIDS Facts (in 2000)
  • HIVAIDS Impact
  • HIVAIDS and Gold Mining
  • HIVAIDS Programming
  • Minesite Program
  • Minesite Program
  • Current Community Program
  • Community Mobile Clinic
  • And when HIV prevention doesnrsquot work
  • Industry Home Based Care
  • Home Based Care
  • INDUSTRY HOME BASED CARE RESULTS(Year One)
  • Overview of Placer Dome AIDS Programming
  • Slide Number 64
  • HIVAIDS and Rural Areas
  • HIVAIDS and Rural Areas
  • Reputational Results for Placer Dome
  • Where to next
  • Planned Program
  • Care Positive Summary
  • Andhellip
  • MDG Impacts of Placer Dome in South Africa
  • One thing leads to another
  • PNG HIVAIDS
  • PNG Outcomes (or outputs ndash Irsquom never sure)
  • Slide Number 76
  • PNG AIDS mission to South Africa
  • MDG Impacts of PNG HIVAIDS work
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • MDG Impacts of Eldorado Gold
  • Underwater Logging in Ghana
  • Private Sector and International Development
  • Group Exercise
  • Slide Number 87
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • What we covered
  • Session Objectives
  • Session Objectives
  • Remember
Page 54: Private Sector Contributions To International Development – McGill Executive Education Program Lecture

Slide 54

HIVAIDS Programming Placer Dome program ndash

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 55

Minesite Program

TRAINING AND EDUCATION

STI amp TB TREATMENT

CONDOM DISTRIBUTION

PEER EDUCATION

VOLUNTARY COUNSELING AND TESTING (VCT)

WELLNESS PROGRAM

MEDICAL REPATRIATION

waynewaynedunncom Slide 56

Minesite Program

waynewaynedunncom Slide 57

Current Community Program

AWARENESS AND EDUCATION PROGRAMS

MOBILE CLINIC

CONDOM amp FEMIDOM DISTRIBUTION

PERIODIC PRESUMPTIVE TREATMENT (PPT)

TREATMENT FOR SEXUALLY TRANSMITTED INFECTIONS ( STI)

waynewaynedunncom Slide 58

COMMUNITY PROGRAM

Community Mobile Clinic

waynewaynedunncom Slide 59

And when HIV prevention doesnrsquot 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 60

Industry Home Based Care

TEBA INFRA-STRUCTURE

TRAINING OF CARE GIVERS

SUPPORT STRUCTURE ndash QUALIFIED STAFF

MONTHLY MEDICATION

WORK WITH OTHER STAKEHOLDERS (EG TRADITIONAL HEALERS)

WORLD BANK DEVELOPMENT INNOVATION AWARD

waynewaynedunncom Slide 61

Home Based Care

Slide 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

waynewaynedunncom Slide 63

Overview of Placer Dome AIDS Programming SOUTH DEEP Sustainable Development Department

bullVoluntary Counseling and testing HIV Negative bullContinue working

On Mine Program Community Program

Modified work program Farm bullAgricultural work Environmental

Medical repatriation

Home Based Care

Benefits Care Positive

HBC EC OPP

Back to work or Re skilled

Wellness Program

waynewaynedunncom Slide 64

But what happens to children and families when the breadwinner canrsquot

work

Slide 65

HIVAIDS and Rural Areas HIVAIDS 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

Slide 66

HIVAIDS 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

waynewaynedunncom

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 CSREthical

Project Award (2004) Numerous other awards Stanford Case Study

waynewaynedunncom Slide 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 69

Planned Program

Care Positive Integrate the Home Based Care

project with the Care process and launch as a fee for service based program to address the social and 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

Care Process

+

Home Based Care

=

Care Positive

waynewaynedunncom Slide 70

Care Positive Summary

waynewaynedunncom

Andhellip 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 $100000 and considerable reputational capital into them Industry went forward with modified HIVAIDS

programming but huge developmental impacts were lost

waynewaynedunncom Slide 72

MDG Impacts of Placer Dome in South Africa

1 Poverty and hunger 2 Some impact on primary education (School

feeding program) 3 Promote gender equality and empower women 4 Reduce child mortality 5 Improve maternal health 6 Combat HIVAIDS malaria and other diseass 7 Ensure environmental sustainability 8 Develop a global partnership for development

(Placer Dome CIDA Civil Society NGOs)

waynewaynedunncom

One thing leads to another

World Bank observed how Placer Domersquos leadership on HIVAIDS 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

waynewaynedunncom

PNG HIVAIDS Scoping mission to

determine what might be done and how Enthusiastic interest from

industry government multi-laterals (WHO UNAIDS World Banketc) ODA (AusAID) CIDA partnered with Place Dome to develop an

HIVAIDS strategy for PNG that integrated industry public sector civil society and international community

waynewaynedunncom

PNG Outcomes (or outputs ndash Irsquom never sure) Partnership with Mining

Industry Civil Society WHO UNAIDS UNDP World Bank PNG AIDS AusAID Oil Palm Industry etc National workshop on

HIVAIDS and publicprivate partnerships SouthSouth Collaboration

Industry government civil society international community study trip to South Africa

waynewaynedunncom

waynewaynedunncom

PNG AIDS mission to South Africa

waynewaynedunncom Slide 78

MDG Impacts of PNG HIVAIDS work

1 Poverty and hunger (nutritional supplements) 2 Some impact on primary education (peripheral) 3 Promote gender equality and empower women 4 Reduce child mortality 5 Improve maternal health 6 Combat HIVAIDS malaria and other diseass 7 Ensure environmental sustainability 8 Develop a global partnership for development

(Placer Dome CIDA Civil Society NGOs)

waynewaynedunncom

Eldorado Gold in Turkey

Major gold find in WestCentral Turkey No successful

mining project launched in decades Eurogold project

built launched and halted by community action in late 1990s ndash still mothballed

UsakKislidag Minesite

Eurogold site

waynewaynedunncom

Eldorado Gold in Turkey

Isolated rural area Nearly half of nearby

communities opposed to mine development Agriculture primary

economic activity in rural communities ndash smallmicro family farms

waynewaynedunncom

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

waynewaynedunncom

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 $075 to $1325 Opened second mine in Turkey

bull Able to deal with controversial watershed issues after relationship success in Usak

waynewaynedunncom Slide 83

MDG Impacts of Eldorado Gold

1 Poverty and hunger (minimal) 2 Some impact on primary education (peripheral) 3 Promote gender equality and empower women 4 Reduce child mortality 5 Improve maternal health 6 Combat HIVAIDS malaria and other diseass 7 Ensure environmental sustainability 8 Develop a global partnership for development

(Placer Dome CIDA Civil Society NGOs)

waynewaynedunncom

Underwater Logging in Ghana

waynewaynedunncom

Private Sector and International Development

Private sector especially resource extraction has a very mixed record bull Some horrendous disasters (Nigeria Warao Peoples in

Venezuela etc) bull Some great successes (Placer Dome Care project

mining and HIVAIDS 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

waynewaynedunncom

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

interestsobjectives overlap

waynewaynedunncom

SDCSR Implementation Challenges

more than a warm fuzzy issue Spending isnrsquot the answer

Plan

Framework

System

Results

Solving social problems Objectives

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Beyond Beads and Trinkets ndash BC Mining Review

A lsquohow torsquo article on mining and CSR

Wayne Dunn

BP Venezuela Indigenous Relations ndash Meeting the Challenge Responsibly and Sustainably

Situational assessment and strategic plan for BP Venezuela Authorized for release by BP

Wayne Dunn

Cameco Community Relations Report

Situational assessment and management strategy Authorized for release by Cameco

Wayne Dunn

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author Beyond Beads lsquon Trinkets A systematic approach to managing community relations

A conference paper describing a systematic approach to community relations management helping companies to methodically develop mutually beneficial relationships with local communities and interests (this is one of the earliest papers on this subject ndash written in 1998)

Wayne Dunn

The costs of conflict with local communities in the extractive industry

Analysis of the cost of community conflicts in the Extractive Sector

Rachel Davis and Daniel M Franks

Creating Shared Value

Harvard Business Review interview with Michael Porter

Video

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Social License Its all about value

Discussion on Social License and shareholder Value

Wayne Dunn

Its about Development Commentary on the CIDAMining Company issue

Wayne Dunn

Integrating corporate strategy and social responsibilitymdashmarket returns from stakeholder engagement

Discussion and analysis on market returns on stakeholder engagement

Witold J Henisz Sinziana Dorobantu and Lite J Narty

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

McGill Reporter ndash Four Burning Questions Wayne Dunn on CSR

Discussion on CSR Wayne Dunn

Miningrsquos contribution to sustainable development ndashan overview

Discussion paper prepared by the International Council on Mining and Metals

Millennium Development Goals

United Nations

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Mining and Agriculture Development

A short lsquohow torsquo guide for mining projects to engage with the local agriculture sector

Al Hingston

PDSA Social Value Brochure

Brochure on social value created by Placer Dome South Africa

Placer Dome

The Value of Social License

Opinion piece published in Northern Miner

Wayne Dunn

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Golden Opportunity When a Canadian multinational laid off hundreds of gold miners in South Africa it went many extra miles to help them get back on their feet

Stanford Business School Case Study on Placer Dome in South Africa

Wayne Dunn

The Changing Resource Development Paradigm Maximizing Sustainable Local Benefits from Resource Development

Strategic thought piece prepared for the government of British Columbia Canada

Wayne Dunn

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

The Disappearing Barriers Between Business And Non-profits Are Driving Innovation

Discussion paper

Katherine Pikus

When Condoms are not enough

World Bank staff magazine article on Placer Dome and South African mining industryrsquos work with HIVAIDS

Craig Andrews

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

MINING AND LOCAL ECONOMIC DEVELOPMENT IN PAPUA NEW GUINEA Preliminary Research on a Potential Pilot Project in Porgera and Lihir

Strategic research and action plan on mining and local economic development in Papua New Guinea prepared for the World Bank

Wayne Dunn

waynewaynedunncom

What we covered

We 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) Publicprivatecivil society collaboration ndash case study

and discussion (CIDA and Mining Companies) Open discussion on topics of interest (time permitting)

waynewaynedunncom

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 howwhy 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

waynewaynedunncom

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 howwhy 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

waynewaynedunncom

Alignment around Shared Value For shareholders For Communities For People For Governments

Private Sector Contributions To International Development

Remember

  • Private Sector Contributions To International Development
  • Session Objectives
  • Map of the morning How we will try to meet the objectives
  • Slide Number 4
  • What is ODA and FDI
  • What is ODA and FDI
  • Why discuss Private Sector Contribution anyway
  • FDIBusiness Outcomes
  • Intention and Strategy Make a Difference
  • Why does the private sector care
  • Community Consultation and Value
  • Itrsquos Real Money
  • CSR is a Value Strategy
  • Social License Failures cost
  • Why is CSR happening
  • The Mining World Has Changed
  • CSR is a complicated space
  • CSR amp Social License
  • Role of business is changing (click image to play video)
  • Case Studies (of successes)
  • Slide Number 21
  • Uranium Industry in Northern Saskatchewan
  • Challenging area
  • Challenging Times
  • Cameco in 1998
  • Cameco in Northern Saskatchewan (2010)
  • So how did Cameco and the industry do it
  • Placer Dome South Africa
  • Slide Number 29
  • Background
  • Background (cont)
  • Families amp Communities must benefit from mining
  • The Care Project
  • Implications
  • Slide Number 35
  • The Initial 4-Step Plan
  • Reality was different than we expected
  • Reality was different than expected
  • Meeting the challenges
  • TheProcess
  • Some results
  • Chicken raising business
  • Furniture making
  • Unique training programs
  • Rice farming in Mozambique
  • Spaza (convenience) shop
  • And the business value ishellip
  • Slide Number 48
  • What was in it for Placer Dome
  • And then there is HIVAIDS
  • HIVAIDS Facts (in 2000)
  • HIVAIDS Impact
  • HIVAIDS and Gold Mining
  • HIVAIDS Programming
  • Minesite Program
  • Minesite Program
  • Current Community Program
  • Community Mobile Clinic
  • And when HIV prevention doesnrsquot work
  • Industry Home Based Care
  • Home Based Care
  • INDUSTRY HOME BASED CARE RESULTS(Year One)
  • Overview of Placer Dome AIDS Programming
  • Slide Number 64
  • HIVAIDS and Rural Areas
  • HIVAIDS and Rural Areas
  • Reputational Results for Placer Dome
  • Where to next
  • Planned Program
  • Care Positive Summary
  • Andhellip
  • MDG Impacts of Placer Dome in South Africa
  • One thing leads to another
  • PNG HIVAIDS
  • PNG Outcomes (or outputs ndash Irsquom never sure)
  • Slide Number 76
  • PNG AIDS mission to South Africa
  • MDG Impacts of PNG HIVAIDS work
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • MDG Impacts of Eldorado Gold
  • Underwater Logging in Ghana
  • Private Sector and International Development
  • Group Exercise
  • Slide Number 87
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • What we covered
  • Session Objectives
  • Session Objectives
  • Remember
Page 55: Private Sector Contributions To International Development – McGill Executive Education Program Lecture

Slide 55

Minesite Program

TRAINING AND EDUCATION

STI amp TB TREATMENT

CONDOM DISTRIBUTION

PEER EDUCATION

VOLUNTARY COUNSELING AND TESTING (VCT)

WELLNESS PROGRAM

MEDICAL REPATRIATION

waynewaynedunncom Slide 56

Minesite Program

waynewaynedunncom Slide 57

Current Community Program

AWARENESS AND EDUCATION PROGRAMS

MOBILE CLINIC

CONDOM amp FEMIDOM DISTRIBUTION

PERIODIC PRESUMPTIVE TREATMENT (PPT)

TREATMENT FOR SEXUALLY TRANSMITTED INFECTIONS ( STI)

waynewaynedunncom Slide 58

COMMUNITY PROGRAM

Community Mobile Clinic

waynewaynedunncom Slide 59

And when HIV prevention doesnrsquot 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 60

Industry Home Based Care

TEBA INFRA-STRUCTURE

TRAINING OF CARE GIVERS

SUPPORT STRUCTURE ndash QUALIFIED STAFF

MONTHLY MEDICATION

WORK WITH OTHER STAKEHOLDERS (EG TRADITIONAL HEALERS)

WORLD BANK DEVELOPMENT INNOVATION AWARD

waynewaynedunncom Slide 61

Home Based Care

Slide 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

waynewaynedunncom Slide 63

Overview of Placer Dome AIDS Programming SOUTH DEEP Sustainable Development Department

bullVoluntary Counseling and testing HIV Negative bullContinue working

On Mine Program Community Program

Modified work program Farm bullAgricultural work Environmental

Medical repatriation

Home Based Care

Benefits Care Positive

HBC EC OPP

Back to work or Re skilled

Wellness Program

waynewaynedunncom Slide 64

But what happens to children and families when the breadwinner canrsquot

work

Slide 65

HIVAIDS and Rural Areas HIVAIDS 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

Slide 66

HIVAIDS 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

waynewaynedunncom

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 CSREthical

Project Award (2004) Numerous other awards Stanford Case Study

waynewaynedunncom Slide 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 69

Planned Program

Care Positive Integrate the Home Based Care

project with the Care process and launch as a fee for service based program to address the social and 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

Care Process

+

Home Based Care

=

Care Positive

waynewaynedunncom Slide 70

Care Positive Summary

waynewaynedunncom

Andhellip 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 $100000 and considerable reputational capital into them Industry went forward with modified HIVAIDS

programming but huge developmental impacts were lost

waynewaynedunncom Slide 72

MDG Impacts of Placer Dome in South Africa

1 Poverty and hunger 2 Some impact on primary education (School

feeding program) 3 Promote gender equality and empower women 4 Reduce child mortality 5 Improve maternal health 6 Combat HIVAIDS malaria and other diseass 7 Ensure environmental sustainability 8 Develop a global partnership for development

(Placer Dome CIDA Civil Society NGOs)

waynewaynedunncom

One thing leads to another

World Bank observed how Placer Domersquos leadership on HIVAIDS 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

waynewaynedunncom

PNG HIVAIDS Scoping mission to

determine what might be done and how Enthusiastic interest from

industry government multi-laterals (WHO UNAIDS World Banketc) ODA (AusAID) CIDA partnered with Place Dome to develop an

HIVAIDS strategy for PNG that integrated industry public sector civil society and international community

waynewaynedunncom

PNG Outcomes (or outputs ndash Irsquom never sure) Partnership with Mining

Industry Civil Society WHO UNAIDS UNDP World Bank PNG AIDS AusAID Oil Palm Industry etc National workshop on

HIVAIDS and publicprivate partnerships SouthSouth Collaboration

Industry government civil society international community study trip to South Africa

waynewaynedunncom

waynewaynedunncom

PNG AIDS mission to South Africa

waynewaynedunncom Slide 78

MDG Impacts of PNG HIVAIDS work

1 Poverty and hunger (nutritional supplements) 2 Some impact on primary education (peripheral) 3 Promote gender equality and empower women 4 Reduce child mortality 5 Improve maternal health 6 Combat HIVAIDS malaria and other diseass 7 Ensure environmental sustainability 8 Develop a global partnership for development

(Placer Dome CIDA Civil Society NGOs)

waynewaynedunncom

Eldorado Gold in Turkey

Major gold find in WestCentral Turkey No successful

mining project launched in decades Eurogold project

built launched and halted by community action in late 1990s ndash still mothballed

UsakKislidag Minesite

Eurogold site

waynewaynedunncom

Eldorado Gold in Turkey

Isolated rural area Nearly half of nearby

communities opposed to mine development Agriculture primary

economic activity in rural communities ndash smallmicro family farms

waynewaynedunncom

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

waynewaynedunncom

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 $075 to $1325 Opened second mine in Turkey

bull Able to deal with controversial watershed issues after relationship success in Usak

waynewaynedunncom Slide 83

MDG Impacts of Eldorado Gold

1 Poverty and hunger (minimal) 2 Some impact on primary education (peripheral) 3 Promote gender equality and empower women 4 Reduce child mortality 5 Improve maternal health 6 Combat HIVAIDS malaria and other diseass 7 Ensure environmental sustainability 8 Develop a global partnership for development

(Placer Dome CIDA Civil Society NGOs)

waynewaynedunncom

Underwater Logging in Ghana

waynewaynedunncom

Private Sector and International Development

Private sector especially resource extraction has a very mixed record bull Some horrendous disasters (Nigeria Warao Peoples in

Venezuela etc) bull Some great successes (Placer Dome Care project

mining and HIVAIDS 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

waynewaynedunncom

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

interestsobjectives overlap

waynewaynedunncom

SDCSR Implementation Challenges

more than a warm fuzzy issue Spending isnrsquot the answer

Plan

Framework

System

Results

Solving social problems Objectives

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Beyond Beads and Trinkets ndash BC Mining Review

A lsquohow torsquo article on mining and CSR

Wayne Dunn

BP Venezuela Indigenous Relations ndash Meeting the Challenge Responsibly and Sustainably

Situational assessment and strategic plan for BP Venezuela Authorized for release by BP

Wayne Dunn

Cameco Community Relations Report

Situational assessment and management strategy Authorized for release by Cameco

Wayne Dunn

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author Beyond Beads lsquon Trinkets A systematic approach to managing community relations

A conference paper describing a systematic approach to community relations management helping companies to methodically develop mutually beneficial relationships with local communities and interests (this is one of the earliest papers on this subject ndash written in 1998)

Wayne Dunn

The costs of conflict with local communities in the extractive industry

Analysis of the cost of community conflicts in the Extractive Sector

Rachel Davis and Daniel M Franks

Creating Shared Value

Harvard Business Review interview with Michael Porter

Video

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Social License Its all about value

Discussion on Social License and shareholder Value

Wayne Dunn

Its about Development Commentary on the CIDAMining Company issue

Wayne Dunn

Integrating corporate strategy and social responsibilitymdashmarket returns from stakeholder engagement

Discussion and analysis on market returns on stakeholder engagement

Witold J Henisz Sinziana Dorobantu and Lite J Narty

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

McGill Reporter ndash Four Burning Questions Wayne Dunn on CSR

Discussion on CSR Wayne Dunn

Miningrsquos contribution to sustainable development ndashan overview

Discussion paper prepared by the International Council on Mining and Metals

Millennium Development Goals

United Nations

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Mining and Agriculture Development

A short lsquohow torsquo guide for mining projects to engage with the local agriculture sector

Al Hingston

PDSA Social Value Brochure

Brochure on social value created by Placer Dome South Africa

Placer Dome

The Value of Social License

Opinion piece published in Northern Miner

Wayne Dunn

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Golden Opportunity When a Canadian multinational laid off hundreds of gold miners in South Africa it went many extra miles to help them get back on their feet

Stanford Business School Case Study on Placer Dome in South Africa

Wayne Dunn

The Changing Resource Development Paradigm Maximizing Sustainable Local Benefits from Resource Development

Strategic thought piece prepared for the government of British Columbia Canada

Wayne Dunn

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

The Disappearing Barriers Between Business And Non-profits Are Driving Innovation

Discussion paper

Katherine Pikus

When Condoms are not enough

World Bank staff magazine article on Placer Dome and South African mining industryrsquos work with HIVAIDS

Craig Andrews

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

MINING AND LOCAL ECONOMIC DEVELOPMENT IN PAPUA NEW GUINEA Preliminary Research on a Potential Pilot Project in Porgera and Lihir

Strategic research and action plan on mining and local economic development in Papua New Guinea prepared for the World Bank

Wayne Dunn

waynewaynedunncom

What we covered

We 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) Publicprivatecivil society collaboration ndash case study

and discussion (CIDA and Mining Companies) Open discussion on topics of interest (time permitting)

waynewaynedunncom

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 howwhy 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

waynewaynedunncom

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 howwhy 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

waynewaynedunncom

Alignment around Shared Value For shareholders For Communities For People For Governments

Private Sector Contributions To International Development

Remember

  • Private Sector Contributions To International Development
  • Session Objectives
  • Map of the morning How we will try to meet the objectives
  • Slide Number 4
  • What is ODA and FDI
  • What is ODA and FDI
  • Why discuss Private Sector Contribution anyway
  • FDIBusiness Outcomes
  • Intention and Strategy Make a Difference
  • Why does the private sector care
  • Community Consultation and Value
  • Itrsquos Real Money
  • CSR is a Value Strategy
  • Social License Failures cost
  • Why is CSR happening
  • The Mining World Has Changed
  • CSR is a complicated space
  • CSR amp Social License
  • Role of business is changing (click image to play video)
  • Case Studies (of successes)
  • Slide Number 21
  • Uranium Industry in Northern Saskatchewan
  • Challenging area
  • Challenging Times
  • Cameco in 1998
  • Cameco in Northern Saskatchewan (2010)
  • So how did Cameco and the industry do it
  • Placer Dome South Africa
  • Slide Number 29
  • Background
  • Background (cont)
  • Families amp Communities must benefit from mining
  • The Care Project
  • Implications
  • Slide Number 35
  • The Initial 4-Step Plan
  • Reality was different than we expected
  • Reality was different than expected
  • Meeting the challenges
  • TheProcess
  • Some results
  • Chicken raising business
  • Furniture making
  • Unique training programs
  • Rice farming in Mozambique
  • Spaza (convenience) shop
  • And the business value ishellip
  • Slide Number 48
  • What was in it for Placer Dome
  • And then there is HIVAIDS
  • HIVAIDS Facts (in 2000)
  • HIVAIDS Impact
  • HIVAIDS and Gold Mining
  • HIVAIDS Programming
  • Minesite Program
  • Minesite Program
  • Current Community Program
  • Community Mobile Clinic
  • And when HIV prevention doesnrsquot work
  • Industry Home Based Care
  • Home Based Care
  • INDUSTRY HOME BASED CARE RESULTS(Year One)
  • Overview of Placer Dome AIDS Programming
  • Slide Number 64
  • HIVAIDS and Rural Areas
  • HIVAIDS and Rural Areas
  • Reputational Results for Placer Dome
  • Where to next
  • Planned Program
  • Care Positive Summary
  • Andhellip
  • MDG Impacts of Placer Dome in South Africa
  • One thing leads to another
  • PNG HIVAIDS
  • PNG Outcomes (or outputs ndash Irsquom never sure)
  • Slide Number 76
  • PNG AIDS mission to South Africa
  • MDG Impacts of PNG HIVAIDS work
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • MDG Impacts of Eldorado Gold
  • Underwater Logging in Ghana
  • Private Sector and International Development
  • Group Exercise
  • Slide Number 87
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • What we covered
  • Session Objectives
  • Session Objectives
  • Remember
Page 56: Private Sector Contributions To International Development – McGill Executive Education Program Lecture

waynewaynedunncom Slide 56

Minesite Program

waynewaynedunncom Slide 57

Current Community Program

AWARENESS AND EDUCATION PROGRAMS

MOBILE CLINIC

CONDOM amp FEMIDOM DISTRIBUTION

PERIODIC PRESUMPTIVE TREATMENT (PPT)

TREATMENT FOR SEXUALLY TRANSMITTED INFECTIONS ( STI)

waynewaynedunncom Slide 58

COMMUNITY PROGRAM

Community Mobile Clinic

waynewaynedunncom Slide 59

And when HIV prevention doesnrsquot 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 60

Industry Home Based Care

TEBA INFRA-STRUCTURE

TRAINING OF CARE GIVERS

SUPPORT STRUCTURE ndash QUALIFIED STAFF

MONTHLY MEDICATION

WORK WITH OTHER STAKEHOLDERS (EG TRADITIONAL HEALERS)

WORLD BANK DEVELOPMENT INNOVATION AWARD

waynewaynedunncom Slide 61

Home Based Care

Slide 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

waynewaynedunncom Slide 63

Overview of Placer Dome AIDS Programming SOUTH DEEP Sustainable Development Department

bullVoluntary Counseling and testing HIV Negative bullContinue working

On Mine Program Community Program

Modified work program Farm bullAgricultural work Environmental

Medical repatriation

Home Based Care

Benefits Care Positive

HBC EC OPP

Back to work or Re skilled

Wellness Program

waynewaynedunncom Slide 64

But what happens to children and families when the breadwinner canrsquot

work

Slide 65

HIVAIDS and Rural Areas HIVAIDS 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

Slide 66

HIVAIDS 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

waynewaynedunncom

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 CSREthical

Project Award (2004) Numerous other awards Stanford Case Study

waynewaynedunncom Slide 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 69

Planned Program

Care Positive Integrate the Home Based Care

project with the Care process and launch as a fee for service based program to address the social and 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

Care Process

+

Home Based Care

=

Care Positive

waynewaynedunncom Slide 70

Care Positive Summary

waynewaynedunncom

Andhellip 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 $100000 and considerable reputational capital into them Industry went forward with modified HIVAIDS

programming but huge developmental impacts were lost

waynewaynedunncom Slide 72

MDG Impacts of Placer Dome in South Africa

1 Poverty and hunger 2 Some impact on primary education (School

feeding program) 3 Promote gender equality and empower women 4 Reduce child mortality 5 Improve maternal health 6 Combat HIVAIDS malaria and other diseass 7 Ensure environmental sustainability 8 Develop a global partnership for development

(Placer Dome CIDA Civil Society NGOs)

waynewaynedunncom

One thing leads to another

World Bank observed how Placer Domersquos leadership on HIVAIDS 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

waynewaynedunncom

PNG HIVAIDS Scoping mission to

determine what might be done and how Enthusiastic interest from

industry government multi-laterals (WHO UNAIDS World Banketc) ODA (AusAID) CIDA partnered with Place Dome to develop an

HIVAIDS strategy for PNG that integrated industry public sector civil society and international community

waynewaynedunncom

PNG Outcomes (or outputs ndash Irsquom never sure) Partnership with Mining

Industry Civil Society WHO UNAIDS UNDP World Bank PNG AIDS AusAID Oil Palm Industry etc National workshop on

HIVAIDS and publicprivate partnerships SouthSouth Collaboration

Industry government civil society international community study trip to South Africa

waynewaynedunncom

waynewaynedunncom

PNG AIDS mission to South Africa

waynewaynedunncom Slide 78

MDG Impacts of PNG HIVAIDS work

1 Poverty and hunger (nutritional supplements) 2 Some impact on primary education (peripheral) 3 Promote gender equality and empower women 4 Reduce child mortality 5 Improve maternal health 6 Combat HIVAIDS malaria and other diseass 7 Ensure environmental sustainability 8 Develop a global partnership for development

(Placer Dome CIDA Civil Society NGOs)

waynewaynedunncom

Eldorado Gold in Turkey

Major gold find in WestCentral Turkey No successful

mining project launched in decades Eurogold project

built launched and halted by community action in late 1990s ndash still mothballed

UsakKislidag Minesite

Eurogold site

waynewaynedunncom

Eldorado Gold in Turkey

Isolated rural area Nearly half of nearby

communities opposed to mine development Agriculture primary

economic activity in rural communities ndash smallmicro family farms

waynewaynedunncom

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

waynewaynedunncom

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 $075 to $1325 Opened second mine in Turkey

bull Able to deal with controversial watershed issues after relationship success in Usak

waynewaynedunncom Slide 83

MDG Impacts of Eldorado Gold

1 Poverty and hunger (minimal) 2 Some impact on primary education (peripheral) 3 Promote gender equality and empower women 4 Reduce child mortality 5 Improve maternal health 6 Combat HIVAIDS malaria and other diseass 7 Ensure environmental sustainability 8 Develop a global partnership for development

(Placer Dome CIDA Civil Society NGOs)

waynewaynedunncom

Underwater Logging in Ghana

waynewaynedunncom

Private Sector and International Development

Private sector especially resource extraction has a very mixed record bull Some horrendous disasters (Nigeria Warao Peoples in

Venezuela etc) bull Some great successes (Placer Dome Care project

mining and HIVAIDS 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

waynewaynedunncom

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

interestsobjectives overlap

waynewaynedunncom

SDCSR Implementation Challenges

more than a warm fuzzy issue Spending isnrsquot the answer

Plan

Framework

System

Results

Solving social problems Objectives

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Beyond Beads and Trinkets ndash BC Mining Review

A lsquohow torsquo article on mining and CSR

Wayne Dunn

BP Venezuela Indigenous Relations ndash Meeting the Challenge Responsibly and Sustainably

Situational assessment and strategic plan for BP Venezuela Authorized for release by BP

Wayne Dunn

Cameco Community Relations Report

Situational assessment and management strategy Authorized for release by Cameco

Wayne Dunn

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author Beyond Beads lsquon Trinkets A systematic approach to managing community relations

A conference paper describing a systematic approach to community relations management helping companies to methodically develop mutually beneficial relationships with local communities and interests (this is one of the earliest papers on this subject ndash written in 1998)

Wayne Dunn

The costs of conflict with local communities in the extractive industry

Analysis of the cost of community conflicts in the Extractive Sector

Rachel Davis and Daniel M Franks

Creating Shared Value

Harvard Business Review interview with Michael Porter

Video

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Social License Its all about value

Discussion on Social License and shareholder Value

Wayne Dunn

Its about Development Commentary on the CIDAMining Company issue

Wayne Dunn

Integrating corporate strategy and social responsibilitymdashmarket returns from stakeholder engagement

Discussion and analysis on market returns on stakeholder engagement

Witold J Henisz Sinziana Dorobantu and Lite J Narty

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

McGill Reporter ndash Four Burning Questions Wayne Dunn on CSR

Discussion on CSR Wayne Dunn

Miningrsquos contribution to sustainable development ndashan overview

Discussion paper prepared by the International Council on Mining and Metals

Millennium Development Goals

United Nations

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Mining and Agriculture Development

A short lsquohow torsquo guide for mining projects to engage with the local agriculture sector

Al Hingston

PDSA Social Value Brochure

Brochure on social value created by Placer Dome South Africa

Placer Dome

The Value of Social License

Opinion piece published in Northern Miner

Wayne Dunn

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Golden Opportunity When a Canadian multinational laid off hundreds of gold miners in South Africa it went many extra miles to help them get back on their feet

Stanford Business School Case Study on Placer Dome in South Africa

Wayne Dunn

The Changing Resource Development Paradigm Maximizing Sustainable Local Benefits from Resource Development

Strategic thought piece prepared for the government of British Columbia Canada

Wayne Dunn

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

The Disappearing Barriers Between Business And Non-profits Are Driving Innovation

Discussion paper

Katherine Pikus

When Condoms are not enough

World Bank staff magazine article on Placer Dome and South African mining industryrsquos work with HIVAIDS

Craig Andrews

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

MINING AND LOCAL ECONOMIC DEVELOPMENT IN PAPUA NEW GUINEA Preliminary Research on a Potential Pilot Project in Porgera and Lihir

Strategic research and action plan on mining and local economic development in Papua New Guinea prepared for the World Bank

Wayne Dunn

waynewaynedunncom

What we covered

We 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) Publicprivatecivil society collaboration ndash case study

and discussion (CIDA and Mining Companies) Open discussion on topics of interest (time permitting)

waynewaynedunncom

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 howwhy 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

waynewaynedunncom

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 howwhy 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

waynewaynedunncom

Alignment around Shared Value For shareholders For Communities For People For Governments

Private Sector Contributions To International Development

Remember

  • Private Sector Contributions To International Development
  • Session Objectives
  • Map of the morning How we will try to meet the objectives
  • Slide Number 4
  • What is ODA and FDI
  • What is ODA and FDI
  • Why discuss Private Sector Contribution anyway
  • FDIBusiness Outcomes
  • Intention and Strategy Make a Difference
  • Why does the private sector care
  • Community Consultation and Value
  • Itrsquos Real Money
  • CSR is a Value Strategy
  • Social License Failures cost
  • Why is CSR happening
  • The Mining World Has Changed
  • CSR is a complicated space
  • CSR amp Social License
  • Role of business is changing (click image to play video)
  • Case Studies (of successes)
  • Slide Number 21
  • Uranium Industry in Northern Saskatchewan
  • Challenging area
  • Challenging Times
  • Cameco in 1998
  • Cameco in Northern Saskatchewan (2010)
  • So how did Cameco and the industry do it
  • Placer Dome South Africa
  • Slide Number 29
  • Background
  • Background (cont)
  • Families amp Communities must benefit from mining
  • The Care Project
  • Implications
  • Slide Number 35
  • The Initial 4-Step Plan
  • Reality was different than we expected
  • Reality was different than expected
  • Meeting the challenges
  • TheProcess
  • Some results
  • Chicken raising business
  • Furniture making
  • Unique training programs
  • Rice farming in Mozambique
  • Spaza (convenience) shop
  • And the business value ishellip
  • Slide Number 48
  • What was in it for Placer Dome
  • And then there is HIVAIDS
  • HIVAIDS Facts (in 2000)
  • HIVAIDS Impact
  • HIVAIDS and Gold Mining
  • HIVAIDS Programming
  • Minesite Program
  • Minesite Program
  • Current Community Program
  • Community Mobile Clinic
  • And when HIV prevention doesnrsquot work
  • Industry Home Based Care
  • Home Based Care
  • INDUSTRY HOME BASED CARE RESULTS(Year One)
  • Overview of Placer Dome AIDS Programming
  • Slide Number 64
  • HIVAIDS and Rural Areas
  • HIVAIDS and Rural Areas
  • Reputational Results for Placer Dome
  • Where to next
  • Planned Program
  • Care Positive Summary
  • Andhellip
  • MDG Impacts of Placer Dome in South Africa
  • One thing leads to another
  • PNG HIVAIDS
  • PNG Outcomes (or outputs ndash Irsquom never sure)
  • Slide Number 76
  • PNG AIDS mission to South Africa
  • MDG Impacts of PNG HIVAIDS work
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • MDG Impacts of Eldorado Gold
  • Underwater Logging in Ghana
  • Private Sector and International Development
  • Group Exercise
  • Slide Number 87
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • What we covered
  • Session Objectives
  • Session Objectives
  • Remember
Page 57: Private Sector Contributions To International Development – McGill Executive Education Program Lecture

waynewaynedunncom Slide 57

Current Community Program

AWARENESS AND EDUCATION PROGRAMS

MOBILE CLINIC

CONDOM amp FEMIDOM DISTRIBUTION

PERIODIC PRESUMPTIVE TREATMENT (PPT)

TREATMENT FOR SEXUALLY TRANSMITTED INFECTIONS ( STI)

waynewaynedunncom Slide 58

COMMUNITY PROGRAM

Community Mobile Clinic

waynewaynedunncom Slide 59

And when HIV prevention doesnrsquot 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 60

Industry Home Based Care

TEBA INFRA-STRUCTURE

TRAINING OF CARE GIVERS

SUPPORT STRUCTURE ndash QUALIFIED STAFF

MONTHLY MEDICATION

WORK WITH OTHER STAKEHOLDERS (EG TRADITIONAL HEALERS)

WORLD BANK DEVELOPMENT INNOVATION AWARD

waynewaynedunncom Slide 61

Home Based Care

Slide 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

waynewaynedunncom Slide 63

Overview of Placer Dome AIDS Programming SOUTH DEEP Sustainable Development Department

bullVoluntary Counseling and testing HIV Negative bullContinue working

On Mine Program Community Program

Modified work program Farm bullAgricultural work Environmental

Medical repatriation

Home Based Care

Benefits Care Positive

HBC EC OPP

Back to work or Re skilled

Wellness Program

waynewaynedunncom Slide 64

But what happens to children and families when the breadwinner canrsquot

work

Slide 65

HIVAIDS and Rural Areas HIVAIDS 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

Slide 66

HIVAIDS 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

waynewaynedunncom

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 CSREthical

Project Award (2004) Numerous other awards Stanford Case Study

waynewaynedunncom Slide 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 69

Planned Program

Care Positive Integrate the Home Based Care

project with the Care process and launch as a fee for service based program to address the social and 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

Care Process

+

Home Based Care

=

Care Positive

waynewaynedunncom Slide 70

Care Positive Summary

waynewaynedunncom

Andhellip 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 $100000 and considerable reputational capital into them Industry went forward with modified HIVAIDS

programming but huge developmental impacts were lost

waynewaynedunncom Slide 72

MDG Impacts of Placer Dome in South Africa

1 Poverty and hunger 2 Some impact on primary education (School

feeding program) 3 Promote gender equality and empower women 4 Reduce child mortality 5 Improve maternal health 6 Combat HIVAIDS malaria and other diseass 7 Ensure environmental sustainability 8 Develop a global partnership for development

(Placer Dome CIDA Civil Society NGOs)

waynewaynedunncom

One thing leads to another

World Bank observed how Placer Domersquos leadership on HIVAIDS 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

waynewaynedunncom

PNG HIVAIDS Scoping mission to

determine what might be done and how Enthusiastic interest from

industry government multi-laterals (WHO UNAIDS World Banketc) ODA (AusAID) CIDA partnered with Place Dome to develop an

HIVAIDS strategy for PNG that integrated industry public sector civil society and international community

waynewaynedunncom

PNG Outcomes (or outputs ndash Irsquom never sure) Partnership with Mining

Industry Civil Society WHO UNAIDS UNDP World Bank PNG AIDS AusAID Oil Palm Industry etc National workshop on

HIVAIDS and publicprivate partnerships SouthSouth Collaboration

Industry government civil society international community study trip to South Africa

waynewaynedunncom

waynewaynedunncom

PNG AIDS mission to South Africa

waynewaynedunncom Slide 78

MDG Impacts of PNG HIVAIDS work

1 Poverty and hunger (nutritional supplements) 2 Some impact on primary education (peripheral) 3 Promote gender equality and empower women 4 Reduce child mortality 5 Improve maternal health 6 Combat HIVAIDS malaria and other diseass 7 Ensure environmental sustainability 8 Develop a global partnership for development

(Placer Dome CIDA Civil Society NGOs)

waynewaynedunncom

Eldorado Gold in Turkey

Major gold find in WestCentral Turkey No successful

mining project launched in decades Eurogold project

built launched and halted by community action in late 1990s ndash still mothballed

UsakKislidag Minesite

Eurogold site

waynewaynedunncom

Eldorado Gold in Turkey

Isolated rural area Nearly half of nearby

communities opposed to mine development Agriculture primary

economic activity in rural communities ndash smallmicro family farms

waynewaynedunncom

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

waynewaynedunncom

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 $075 to $1325 Opened second mine in Turkey

bull Able to deal with controversial watershed issues after relationship success in Usak

waynewaynedunncom Slide 83

MDG Impacts of Eldorado Gold

1 Poverty and hunger (minimal) 2 Some impact on primary education (peripheral) 3 Promote gender equality and empower women 4 Reduce child mortality 5 Improve maternal health 6 Combat HIVAIDS malaria and other diseass 7 Ensure environmental sustainability 8 Develop a global partnership for development

(Placer Dome CIDA Civil Society NGOs)

waynewaynedunncom

Underwater Logging in Ghana

waynewaynedunncom

Private Sector and International Development

Private sector especially resource extraction has a very mixed record bull Some horrendous disasters (Nigeria Warao Peoples in

Venezuela etc) bull Some great successes (Placer Dome Care project

mining and HIVAIDS 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

waynewaynedunncom

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

interestsobjectives overlap

waynewaynedunncom

SDCSR Implementation Challenges

more than a warm fuzzy issue Spending isnrsquot the answer

Plan

Framework

System

Results

Solving social problems Objectives

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Beyond Beads and Trinkets ndash BC Mining Review

A lsquohow torsquo article on mining and CSR

Wayne Dunn

BP Venezuela Indigenous Relations ndash Meeting the Challenge Responsibly and Sustainably

Situational assessment and strategic plan for BP Venezuela Authorized for release by BP

Wayne Dunn

Cameco Community Relations Report

Situational assessment and management strategy Authorized for release by Cameco

Wayne Dunn

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author Beyond Beads lsquon Trinkets A systematic approach to managing community relations

A conference paper describing a systematic approach to community relations management helping companies to methodically develop mutually beneficial relationships with local communities and interests (this is one of the earliest papers on this subject ndash written in 1998)

Wayne Dunn

The costs of conflict with local communities in the extractive industry

Analysis of the cost of community conflicts in the Extractive Sector

Rachel Davis and Daniel M Franks

Creating Shared Value

Harvard Business Review interview with Michael Porter

Video

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Social License Its all about value

Discussion on Social License and shareholder Value

Wayne Dunn

Its about Development Commentary on the CIDAMining Company issue

Wayne Dunn

Integrating corporate strategy and social responsibilitymdashmarket returns from stakeholder engagement

Discussion and analysis on market returns on stakeholder engagement

Witold J Henisz Sinziana Dorobantu and Lite J Narty

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

McGill Reporter ndash Four Burning Questions Wayne Dunn on CSR

Discussion on CSR Wayne Dunn

Miningrsquos contribution to sustainable development ndashan overview

Discussion paper prepared by the International Council on Mining and Metals

Millennium Development Goals

United Nations

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Mining and Agriculture Development

A short lsquohow torsquo guide for mining projects to engage with the local agriculture sector

Al Hingston

PDSA Social Value Brochure

Brochure on social value created by Placer Dome South Africa

Placer Dome

The Value of Social License

Opinion piece published in Northern Miner

Wayne Dunn

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Golden Opportunity When a Canadian multinational laid off hundreds of gold miners in South Africa it went many extra miles to help them get back on their feet

Stanford Business School Case Study on Placer Dome in South Africa

Wayne Dunn

The Changing Resource Development Paradigm Maximizing Sustainable Local Benefits from Resource Development

Strategic thought piece prepared for the government of British Columbia Canada

Wayne Dunn

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

The Disappearing Barriers Between Business And Non-profits Are Driving Innovation

Discussion paper

Katherine Pikus

When Condoms are not enough

World Bank staff magazine article on Placer Dome and South African mining industryrsquos work with HIVAIDS

Craig Andrews

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

MINING AND LOCAL ECONOMIC DEVELOPMENT IN PAPUA NEW GUINEA Preliminary Research on a Potential Pilot Project in Porgera and Lihir

Strategic research and action plan on mining and local economic development in Papua New Guinea prepared for the World Bank

Wayne Dunn

waynewaynedunncom

What we covered

We 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) Publicprivatecivil society collaboration ndash case study

and discussion (CIDA and Mining Companies) Open discussion on topics of interest (time permitting)

waynewaynedunncom

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 howwhy 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

waynewaynedunncom

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 howwhy 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

waynewaynedunncom

Alignment around Shared Value For shareholders For Communities For People For Governments

Private Sector Contributions To International Development

Remember

  • Private Sector Contributions To International Development
  • Session Objectives
  • Map of the morning How we will try to meet the objectives
  • Slide Number 4
  • What is ODA and FDI
  • What is ODA and FDI
  • Why discuss Private Sector Contribution anyway
  • FDIBusiness Outcomes
  • Intention and Strategy Make a Difference
  • Why does the private sector care
  • Community Consultation and Value
  • Itrsquos Real Money
  • CSR is a Value Strategy
  • Social License Failures cost
  • Why is CSR happening
  • The Mining World Has Changed
  • CSR is a complicated space
  • CSR amp Social License
  • Role of business is changing (click image to play video)
  • Case Studies (of successes)
  • Slide Number 21
  • Uranium Industry in Northern Saskatchewan
  • Challenging area
  • Challenging Times
  • Cameco in 1998
  • Cameco in Northern Saskatchewan (2010)
  • So how did Cameco and the industry do it
  • Placer Dome South Africa
  • Slide Number 29
  • Background
  • Background (cont)
  • Families amp Communities must benefit from mining
  • The Care Project
  • Implications
  • Slide Number 35
  • The Initial 4-Step Plan
  • Reality was different than we expected
  • Reality was different than expected
  • Meeting the challenges
  • TheProcess
  • Some results
  • Chicken raising business
  • Furniture making
  • Unique training programs
  • Rice farming in Mozambique
  • Spaza (convenience) shop
  • And the business value ishellip
  • Slide Number 48
  • What was in it for Placer Dome
  • And then there is HIVAIDS
  • HIVAIDS Facts (in 2000)
  • HIVAIDS Impact
  • HIVAIDS and Gold Mining
  • HIVAIDS Programming
  • Minesite Program
  • Minesite Program
  • Current Community Program
  • Community Mobile Clinic
  • And when HIV prevention doesnrsquot work
  • Industry Home Based Care
  • Home Based Care
  • INDUSTRY HOME BASED CARE RESULTS(Year One)
  • Overview of Placer Dome AIDS Programming
  • Slide Number 64
  • HIVAIDS and Rural Areas
  • HIVAIDS and Rural Areas
  • Reputational Results for Placer Dome
  • Where to next
  • Planned Program
  • Care Positive Summary
  • Andhellip
  • MDG Impacts of Placer Dome in South Africa
  • One thing leads to another
  • PNG HIVAIDS
  • PNG Outcomes (or outputs ndash Irsquom never sure)
  • Slide Number 76
  • PNG AIDS mission to South Africa
  • MDG Impacts of PNG HIVAIDS work
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • MDG Impacts of Eldorado Gold
  • Underwater Logging in Ghana
  • Private Sector and International Development
  • Group Exercise
  • Slide Number 87
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • What we covered
  • Session Objectives
  • Session Objectives
  • Remember
Page 58: Private Sector Contributions To International Development – McGill Executive Education Program Lecture

waynewaynedunncom Slide 58

COMMUNITY PROGRAM

Community Mobile Clinic

waynewaynedunncom Slide 59

And when HIV prevention doesnrsquot 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 60

Industry Home Based Care

TEBA INFRA-STRUCTURE

TRAINING OF CARE GIVERS

SUPPORT STRUCTURE ndash QUALIFIED STAFF

MONTHLY MEDICATION

WORK WITH OTHER STAKEHOLDERS (EG TRADITIONAL HEALERS)

WORLD BANK DEVELOPMENT INNOVATION AWARD

waynewaynedunncom Slide 61

Home Based Care

Slide 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

waynewaynedunncom Slide 63

Overview of Placer Dome AIDS Programming SOUTH DEEP Sustainable Development Department

bullVoluntary Counseling and testing HIV Negative bullContinue working

On Mine Program Community Program

Modified work program Farm bullAgricultural work Environmental

Medical repatriation

Home Based Care

Benefits Care Positive

HBC EC OPP

Back to work or Re skilled

Wellness Program

waynewaynedunncom Slide 64

But what happens to children and families when the breadwinner canrsquot

work

Slide 65

HIVAIDS and Rural Areas HIVAIDS 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

Slide 66

HIVAIDS 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

waynewaynedunncom

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 CSREthical

Project Award (2004) Numerous other awards Stanford Case Study

waynewaynedunncom Slide 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 69

Planned Program

Care Positive Integrate the Home Based Care

project with the Care process and launch as a fee for service based program to address the social and 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

Care Process

+

Home Based Care

=

Care Positive

waynewaynedunncom Slide 70

Care Positive Summary

waynewaynedunncom

Andhellip 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 $100000 and considerable reputational capital into them Industry went forward with modified HIVAIDS

programming but huge developmental impacts were lost

waynewaynedunncom Slide 72

MDG Impacts of Placer Dome in South Africa

1 Poverty and hunger 2 Some impact on primary education (School

feeding program) 3 Promote gender equality and empower women 4 Reduce child mortality 5 Improve maternal health 6 Combat HIVAIDS malaria and other diseass 7 Ensure environmental sustainability 8 Develop a global partnership for development

(Placer Dome CIDA Civil Society NGOs)

waynewaynedunncom

One thing leads to another

World Bank observed how Placer Domersquos leadership on HIVAIDS 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

waynewaynedunncom

PNG HIVAIDS Scoping mission to

determine what might be done and how Enthusiastic interest from

industry government multi-laterals (WHO UNAIDS World Banketc) ODA (AusAID) CIDA partnered with Place Dome to develop an

HIVAIDS strategy for PNG that integrated industry public sector civil society and international community

waynewaynedunncom

PNG Outcomes (or outputs ndash Irsquom never sure) Partnership with Mining

Industry Civil Society WHO UNAIDS UNDP World Bank PNG AIDS AusAID Oil Palm Industry etc National workshop on

HIVAIDS and publicprivate partnerships SouthSouth Collaboration

Industry government civil society international community study trip to South Africa

waynewaynedunncom

waynewaynedunncom

PNG AIDS mission to South Africa

waynewaynedunncom Slide 78

MDG Impacts of PNG HIVAIDS work

1 Poverty and hunger (nutritional supplements) 2 Some impact on primary education (peripheral) 3 Promote gender equality and empower women 4 Reduce child mortality 5 Improve maternal health 6 Combat HIVAIDS malaria and other diseass 7 Ensure environmental sustainability 8 Develop a global partnership for development

(Placer Dome CIDA Civil Society NGOs)

waynewaynedunncom

Eldorado Gold in Turkey

Major gold find in WestCentral Turkey No successful

mining project launched in decades Eurogold project

built launched and halted by community action in late 1990s ndash still mothballed

UsakKislidag Minesite

Eurogold site

waynewaynedunncom

Eldorado Gold in Turkey

Isolated rural area Nearly half of nearby

communities opposed to mine development Agriculture primary

economic activity in rural communities ndash smallmicro family farms

waynewaynedunncom

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

waynewaynedunncom

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 $075 to $1325 Opened second mine in Turkey

bull Able to deal with controversial watershed issues after relationship success in Usak

waynewaynedunncom Slide 83

MDG Impacts of Eldorado Gold

1 Poverty and hunger (minimal) 2 Some impact on primary education (peripheral) 3 Promote gender equality and empower women 4 Reduce child mortality 5 Improve maternal health 6 Combat HIVAIDS malaria and other diseass 7 Ensure environmental sustainability 8 Develop a global partnership for development

(Placer Dome CIDA Civil Society NGOs)

waynewaynedunncom

Underwater Logging in Ghana

waynewaynedunncom

Private Sector and International Development

Private sector especially resource extraction has a very mixed record bull Some horrendous disasters (Nigeria Warao Peoples in

Venezuela etc) bull Some great successes (Placer Dome Care project

mining and HIVAIDS 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

waynewaynedunncom

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

interestsobjectives overlap

waynewaynedunncom

SDCSR Implementation Challenges

more than a warm fuzzy issue Spending isnrsquot the answer

Plan

Framework

System

Results

Solving social problems Objectives

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Beyond Beads and Trinkets ndash BC Mining Review

A lsquohow torsquo article on mining and CSR

Wayne Dunn

BP Venezuela Indigenous Relations ndash Meeting the Challenge Responsibly and Sustainably

Situational assessment and strategic plan for BP Venezuela Authorized for release by BP

Wayne Dunn

Cameco Community Relations Report

Situational assessment and management strategy Authorized for release by Cameco

Wayne Dunn

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author Beyond Beads lsquon Trinkets A systematic approach to managing community relations

A conference paper describing a systematic approach to community relations management helping companies to methodically develop mutually beneficial relationships with local communities and interests (this is one of the earliest papers on this subject ndash written in 1998)

Wayne Dunn

The costs of conflict with local communities in the extractive industry

Analysis of the cost of community conflicts in the Extractive Sector

Rachel Davis and Daniel M Franks

Creating Shared Value

Harvard Business Review interview with Michael Porter

Video

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Social License Its all about value

Discussion on Social License and shareholder Value

Wayne Dunn

Its about Development Commentary on the CIDAMining Company issue

Wayne Dunn

Integrating corporate strategy and social responsibilitymdashmarket returns from stakeholder engagement

Discussion and analysis on market returns on stakeholder engagement

Witold J Henisz Sinziana Dorobantu and Lite J Narty

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

McGill Reporter ndash Four Burning Questions Wayne Dunn on CSR

Discussion on CSR Wayne Dunn

Miningrsquos contribution to sustainable development ndashan overview

Discussion paper prepared by the International Council on Mining and Metals

Millennium Development Goals

United Nations

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Mining and Agriculture Development

A short lsquohow torsquo guide for mining projects to engage with the local agriculture sector

Al Hingston

PDSA Social Value Brochure

Brochure on social value created by Placer Dome South Africa

Placer Dome

The Value of Social License

Opinion piece published in Northern Miner

Wayne Dunn

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Golden Opportunity When a Canadian multinational laid off hundreds of gold miners in South Africa it went many extra miles to help them get back on their feet

Stanford Business School Case Study on Placer Dome in South Africa

Wayne Dunn

The Changing Resource Development Paradigm Maximizing Sustainable Local Benefits from Resource Development

Strategic thought piece prepared for the government of British Columbia Canada

Wayne Dunn

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

The Disappearing Barriers Between Business And Non-profits Are Driving Innovation

Discussion paper

Katherine Pikus

When Condoms are not enough

World Bank staff magazine article on Placer Dome and South African mining industryrsquos work with HIVAIDS

Craig Andrews

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

MINING AND LOCAL ECONOMIC DEVELOPMENT IN PAPUA NEW GUINEA Preliminary Research on a Potential Pilot Project in Porgera and Lihir

Strategic research and action plan on mining and local economic development in Papua New Guinea prepared for the World Bank

Wayne Dunn

waynewaynedunncom

What we covered

We 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) Publicprivatecivil society collaboration ndash case study

and discussion (CIDA and Mining Companies) Open discussion on topics of interest (time permitting)

waynewaynedunncom

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 howwhy 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

waynewaynedunncom

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 howwhy 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

waynewaynedunncom

Alignment around Shared Value For shareholders For Communities For People For Governments

Private Sector Contributions To International Development

Remember

  • Private Sector Contributions To International Development
  • Session Objectives
  • Map of the morning How we will try to meet the objectives
  • Slide Number 4
  • What is ODA and FDI
  • What is ODA and FDI
  • Why discuss Private Sector Contribution anyway
  • FDIBusiness Outcomes
  • Intention and Strategy Make a Difference
  • Why does the private sector care
  • Community Consultation and Value
  • Itrsquos Real Money
  • CSR is a Value Strategy
  • Social License Failures cost
  • Why is CSR happening
  • The Mining World Has Changed
  • CSR is a complicated space
  • CSR amp Social License
  • Role of business is changing (click image to play video)
  • Case Studies (of successes)
  • Slide Number 21
  • Uranium Industry in Northern Saskatchewan
  • Challenging area
  • Challenging Times
  • Cameco in 1998
  • Cameco in Northern Saskatchewan (2010)
  • So how did Cameco and the industry do it
  • Placer Dome South Africa
  • Slide Number 29
  • Background
  • Background (cont)
  • Families amp Communities must benefit from mining
  • The Care Project
  • Implications
  • Slide Number 35
  • The Initial 4-Step Plan
  • Reality was different than we expected
  • Reality was different than expected
  • Meeting the challenges
  • TheProcess
  • Some results
  • Chicken raising business
  • Furniture making
  • Unique training programs
  • Rice farming in Mozambique
  • Spaza (convenience) shop
  • And the business value ishellip
  • Slide Number 48
  • What was in it for Placer Dome
  • And then there is HIVAIDS
  • HIVAIDS Facts (in 2000)
  • HIVAIDS Impact
  • HIVAIDS and Gold Mining
  • HIVAIDS Programming
  • Minesite Program
  • Minesite Program
  • Current Community Program
  • Community Mobile Clinic
  • And when HIV prevention doesnrsquot work
  • Industry Home Based Care
  • Home Based Care
  • INDUSTRY HOME BASED CARE RESULTS(Year One)
  • Overview of Placer Dome AIDS Programming
  • Slide Number 64
  • HIVAIDS and Rural Areas
  • HIVAIDS and Rural Areas
  • Reputational Results for Placer Dome
  • Where to next
  • Planned Program
  • Care Positive Summary
  • Andhellip
  • MDG Impacts of Placer Dome in South Africa
  • One thing leads to another
  • PNG HIVAIDS
  • PNG Outcomes (or outputs ndash Irsquom never sure)
  • Slide Number 76
  • PNG AIDS mission to South Africa
  • MDG Impacts of PNG HIVAIDS work
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • MDG Impacts of Eldorado Gold
  • Underwater Logging in Ghana
  • Private Sector and International Development
  • Group Exercise
  • Slide Number 87
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • What we covered
  • Session Objectives
  • Session Objectives
  • Remember
Page 59: Private Sector Contributions To International Development – McGill Executive Education Program Lecture

waynewaynedunncom Slide 59

And when HIV prevention doesnrsquot 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 60

Industry Home Based Care

TEBA INFRA-STRUCTURE

TRAINING OF CARE GIVERS

SUPPORT STRUCTURE ndash QUALIFIED STAFF

MONTHLY MEDICATION

WORK WITH OTHER STAKEHOLDERS (EG TRADITIONAL HEALERS)

WORLD BANK DEVELOPMENT INNOVATION AWARD

waynewaynedunncom Slide 61

Home Based Care

Slide 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

waynewaynedunncom Slide 63

Overview of Placer Dome AIDS Programming SOUTH DEEP Sustainable Development Department

bullVoluntary Counseling and testing HIV Negative bullContinue working

On Mine Program Community Program

Modified work program Farm bullAgricultural work Environmental

Medical repatriation

Home Based Care

Benefits Care Positive

HBC EC OPP

Back to work or Re skilled

Wellness Program

waynewaynedunncom Slide 64

But what happens to children and families when the breadwinner canrsquot

work

Slide 65

HIVAIDS and Rural Areas HIVAIDS 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

Slide 66

HIVAIDS 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

waynewaynedunncom

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 CSREthical

Project Award (2004) Numerous other awards Stanford Case Study

waynewaynedunncom Slide 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 69

Planned Program

Care Positive Integrate the Home Based Care

project with the Care process and launch as a fee for service based program to address the social and 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

Care Process

+

Home Based Care

=

Care Positive

waynewaynedunncom Slide 70

Care Positive Summary

waynewaynedunncom

Andhellip 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 $100000 and considerable reputational capital into them Industry went forward with modified HIVAIDS

programming but huge developmental impacts were lost

waynewaynedunncom Slide 72

MDG Impacts of Placer Dome in South Africa

1 Poverty and hunger 2 Some impact on primary education (School

feeding program) 3 Promote gender equality and empower women 4 Reduce child mortality 5 Improve maternal health 6 Combat HIVAIDS malaria and other diseass 7 Ensure environmental sustainability 8 Develop a global partnership for development

(Placer Dome CIDA Civil Society NGOs)

waynewaynedunncom

One thing leads to another

World Bank observed how Placer Domersquos leadership on HIVAIDS 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

waynewaynedunncom

PNG HIVAIDS Scoping mission to

determine what might be done and how Enthusiastic interest from

industry government multi-laterals (WHO UNAIDS World Banketc) ODA (AusAID) CIDA partnered with Place Dome to develop an

HIVAIDS strategy for PNG that integrated industry public sector civil society and international community

waynewaynedunncom

PNG Outcomes (or outputs ndash Irsquom never sure) Partnership with Mining

Industry Civil Society WHO UNAIDS UNDP World Bank PNG AIDS AusAID Oil Palm Industry etc National workshop on

HIVAIDS and publicprivate partnerships SouthSouth Collaboration

Industry government civil society international community study trip to South Africa

waynewaynedunncom

waynewaynedunncom

PNG AIDS mission to South Africa

waynewaynedunncom Slide 78

MDG Impacts of PNG HIVAIDS work

1 Poverty and hunger (nutritional supplements) 2 Some impact on primary education (peripheral) 3 Promote gender equality and empower women 4 Reduce child mortality 5 Improve maternal health 6 Combat HIVAIDS malaria and other diseass 7 Ensure environmental sustainability 8 Develop a global partnership for development

(Placer Dome CIDA Civil Society NGOs)

waynewaynedunncom

Eldorado Gold in Turkey

Major gold find in WestCentral Turkey No successful

mining project launched in decades Eurogold project

built launched and halted by community action in late 1990s ndash still mothballed

UsakKislidag Minesite

Eurogold site

waynewaynedunncom

Eldorado Gold in Turkey

Isolated rural area Nearly half of nearby

communities opposed to mine development Agriculture primary

economic activity in rural communities ndash smallmicro family farms

waynewaynedunncom

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

waynewaynedunncom

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 $075 to $1325 Opened second mine in Turkey

bull Able to deal with controversial watershed issues after relationship success in Usak

waynewaynedunncom Slide 83

MDG Impacts of Eldorado Gold

1 Poverty and hunger (minimal) 2 Some impact on primary education (peripheral) 3 Promote gender equality and empower women 4 Reduce child mortality 5 Improve maternal health 6 Combat HIVAIDS malaria and other diseass 7 Ensure environmental sustainability 8 Develop a global partnership for development

(Placer Dome CIDA Civil Society NGOs)

waynewaynedunncom

Underwater Logging in Ghana

waynewaynedunncom

Private Sector and International Development

Private sector especially resource extraction has a very mixed record bull Some horrendous disasters (Nigeria Warao Peoples in

Venezuela etc) bull Some great successes (Placer Dome Care project

mining and HIVAIDS 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

waynewaynedunncom

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

interestsobjectives overlap

waynewaynedunncom

SDCSR Implementation Challenges

more than a warm fuzzy issue Spending isnrsquot the answer

Plan

Framework

System

Results

Solving social problems Objectives

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Beyond Beads and Trinkets ndash BC Mining Review

A lsquohow torsquo article on mining and CSR

Wayne Dunn

BP Venezuela Indigenous Relations ndash Meeting the Challenge Responsibly and Sustainably

Situational assessment and strategic plan for BP Venezuela Authorized for release by BP

Wayne Dunn

Cameco Community Relations Report

Situational assessment and management strategy Authorized for release by Cameco

Wayne Dunn

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author Beyond Beads lsquon Trinkets A systematic approach to managing community relations

A conference paper describing a systematic approach to community relations management helping companies to methodically develop mutually beneficial relationships with local communities and interests (this is one of the earliest papers on this subject ndash written in 1998)

Wayne Dunn

The costs of conflict with local communities in the extractive industry

Analysis of the cost of community conflicts in the Extractive Sector

Rachel Davis and Daniel M Franks

Creating Shared Value

Harvard Business Review interview with Michael Porter

Video

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Social License Its all about value

Discussion on Social License and shareholder Value

Wayne Dunn

Its about Development Commentary on the CIDAMining Company issue

Wayne Dunn

Integrating corporate strategy and social responsibilitymdashmarket returns from stakeholder engagement

Discussion and analysis on market returns on stakeholder engagement

Witold J Henisz Sinziana Dorobantu and Lite J Narty

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

McGill Reporter ndash Four Burning Questions Wayne Dunn on CSR

Discussion on CSR Wayne Dunn

Miningrsquos contribution to sustainable development ndashan overview

Discussion paper prepared by the International Council on Mining and Metals

Millennium Development Goals

United Nations

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Mining and Agriculture Development

A short lsquohow torsquo guide for mining projects to engage with the local agriculture sector

Al Hingston

PDSA Social Value Brochure

Brochure on social value created by Placer Dome South Africa

Placer Dome

The Value of Social License

Opinion piece published in Northern Miner

Wayne Dunn

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Golden Opportunity When a Canadian multinational laid off hundreds of gold miners in South Africa it went many extra miles to help them get back on their feet

Stanford Business School Case Study on Placer Dome in South Africa

Wayne Dunn

The Changing Resource Development Paradigm Maximizing Sustainable Local Benefits from Resource Development

Strategic thought piece prepared for the government of British Columbia Canada

Wayne Dunn

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

The Disappearing Barriers Between Business And Non-profits Are Driving Innovation

Discussion paper

Katherine Pikus

When Condoms are not enough

World Bank staff magazine article on Placer Dome and South African mining industryrsquos work with HIVAIDS

Craig Andrews

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

MINING AND LOCAL ECONOMIC DEVELOPMENT IN PAPUA NEW GUINEA Preliminary Research on a Potential Pilot Project in Porgera and Lihir

Strategic research and action plan on mining and local economic development in Papua New Guinea prepared for the World Bank

Wayne Dunn

waynewaynedunncom

What we covered

We 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) Publicprivatecivil society collaboration ndash case study

and discussion (CIDA and Mining Companies) Open discussion on topics of interest (time permitting)

waynewaynedunncom

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 howwhy 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

waynewaynedunncom

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 howwhy 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

waynewaynedunncom

Alignment around Shared Value For shareholders For Communities For People For Governments

Private Sector Contributions To International Development

Remember

  • Private Sector Contributions To International Development
  • Session Objectives
  • Map of the morning How we will try to meet the objectives
  • Slide Number 4
  • What is ODA and FDI
  • What is ODA and FDI
  • Why discuss Private Sector Contribution anyway
  • FDIBusiness Outcomes
  • Intention and Strategy Make a Difference
  • Why does the private sector care
  • Community Consultation and Value
  • Itrsquos Real Money
  • CSR is a Value Strategy
  • Social License Failures cost
  • Why is CSR happening
  • The Mining World Has Changed
  • CSR is a complicated space
  • CSR amp Social License
  • Role of business is changing (click image to play video)
  • Case Studies (of successes)
  • Slide Number 21
  • Uranium Industry in Northern Saskatchewan
  • Challenging area
  • Challenging Times
  • Cameco in 1998
  • Cameco in Northern Saskatchewan (2010)
  • So how did Cameco and the industry do it
  • Placer Dome South Africa
  • Slide Number 29
  • Background
  • Background (cont)
  • Families amp Communities must benefit from mining
  • The Care Project
  • Implications
  • Slide Number 35
  • The Initial 4-Step Plan
  • Reality was different than we expected
  • Reality was different than expected
  • Meeting the challenges
  • TheProcess
  • Some results
  • Chicken raising business
  • Furniture making
  • Unique training programs
  • Rice farming in Mozambique
  • Spaza (convenience) shop
  • And the business value ishellip
  • Slide Number 48
  • What was in it for Placer Dome
  • And then there is HIVAIDS
  • HIVAIDS Facts (in 2000)
  • HIVAIDS Impact
  • HIVAIDS and Gold Mining
  • HIVAIDS Programming
  • Minesite Program
  • Minesite Program
  • Current Community Program
  • Community Mobile Clinic
  • And when HIV prevention doesnrsquot work
  • Industry Home Based Care
  • Home Based Care
  • INDUSTRY HOME BASED CARE RESULTS(Year One)
  • Overview of Placer Dome AIDS Programming
  • Slide Number 64
  • HIVAIDS and Rural Areas
  • HIVAIDS and Rural Areas
  • Reputational Results for Placer Dome
  • Where to next
  • Planned Program
  • Care Positive Summary
  • Andhellip
  • MDG Impacts of Placer Dome in South Africa
  • One thing leads to another
  • PNG HIVAIDS
  • PNG Outcomes (or outputs ndash Irsquom never sure)
  • Slide Number 76
  • PNG AIDS mission to South Africa
  • MDG Impacts of PNG HIVAIDS work
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • MDG Impacts of Eldorado Gold
  • Underwater Logging in Ghana
  • Private Sector and International Development
  • Group Exercise
  • Slide Number 87
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • What we covered
  • Session Objectives
  • Session Objectives
  • Remember
Page 60: Private Sector Contributions To International Development – McGill Executive Education Program Lecture

Slide 60

Industry Home Based Care

TEBA INFRA-STRUCTURE

TRAINING OF CARE GIVERS

SUPPORT STRUCTURE ndash QUALIFIED STAFF

MONTHLY MEDICATION

WORK WITH OTHER STAKEHOLDERS (EG TRADITIONAL HEALERS)

WORLD BANK DEVELOPMENT INNOVATION AWARD

waynewaynedunncom Slide 61

Home Based Care

Slide 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

waynewaynedunncom Slide 63

Overview of Placer Dome AIDS Programming SOUTH DEEP Sustainable Development Department

bullVoluntary Counseling and testing HIV Negative bullContinue working

On Mine Program Community Program

Modified work program Farm bullAgricultural work Environmental

Medical repatriation

Home Based Care

Benefits Care Positive

HBC EC OPP

Back to work or Re skilled

Wellness Program

waynewaynedunncom Slide 64

But what happens to children and families when the breadwinner canrsquot

work

Slide 65

HIVAIDS and Rural Areas HIVAIDS 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

Slide 66

HIVAIDS 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

waynewaynedunncom

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 CSREthical

Project Award (2004) Numerous other awards Stanford Case Study

waynewaynedunncom Slide 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 69

Planned Program

Care Positive Integrate the Home Based Care

project with the Care process and launch as a fee for service based program to address the social and 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

Care Process

+

Home Based Care

=

Care Positive

waynewaynedunncom Slide 70

Care Positive Summary

waynewaynedunncom

Andhellip 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 $100000 and considerable reputational capital into them Industry went forward with modified HIVAIDS

programming but huge developmental impacts were lost

waynewaynedunncom Slide 72

MDG Impacts of Placer Dome in South Africa

1 Poverty and hunger 2 Some impact on primary education (School

feeding program) 3 Promote gender equality and empower women 4 Reduce child mortality 5 Improve maternal health 6 Combat HIVAIDS malaria and other diseass 7 Ensure environmental sustainability 8 Develop a global partnership for development

(Placer Dome CIDA Civil Society NGOs)

waynewaynedunncom

One thing leads to another

World Bank observed how Placer Domersquos leadership on HIVAIDS 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

waynewaynedunncom

PNG HIVAIDS Scoping mission to

determine what might be done and how Enthusiastic interest from

industry government multi-laterals (WHO UNAIDS World Banketc) ODA (AusAID) CIDA partnered with Place Dome to develop an

HIVAIDS strategy for PNG that integrated industry public sector civil society and international community

waynewaynedunncom

PNG Outcomes (or outputs ndash Irsquom never sure) Partnership with Mining

Industry Civil Society WHO UNAIDS UNDP World Bank PNG AIDS AusAID Oil Palm Industry etc National workshop on

HIVAIDS and publicprivate partnerships SouthSouth Collaboration

Industry government civil society international community study trip to South Africa

waynewaynedunncom

waynewaynedunncom

PNG AIDS mission to South Africa

waynewaynedunncom Slide 78

MDG Impacts of PNG HIVAIDS work

1 Poverty and hunger (nutritional supplements) 2 Some impact on primary education (peripheral) 3 Promote gender equality and empower women 4 Reduce child mortality 5 Improve maternal health 6 Combat HIVAIDS malaria and other diseass 7 Ensure environmental sustainability 8 Develop a global partnership for development

(Placer Dome CIDA Civil Society NGOs)

waynewaynedunncom

Eldorado Gold in Turkey

Major gold find in WestCentral Turkey No successful

mining project launched in decades Eurogold project

built launched and halted by community action in late 1990s ndash still mothballed

UsakKislidag Minesite

Eurogold site

waynewaynedunncom

Eldorado Gold in Turkey

Isolated rural area Nearly half of nearby

communities opposed to mine development Agriculture primary

economic activity in rural communities ndash smallmicro family farms

waynewaynedunncom

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

waynewaynedunncom

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 $075 to $1325 Opened second mine in Turkey

bull Able to deal with controversial watershed issues after relationship success in Usak

waynewaynedunncom Slide 83

MDG Impacts of Eldorado Gold

1 Poverty and hunger (minimal) 2 Some impact on primary education (peripheral) 3 Promote gender equality and empower women 4 Reduce child mortality 5 Improve maternal health 6 Combat HIVAIDS malaria and other diseass 7 Ensure environmental sustainability 8 Develop a global partnership for development

(Placer Dome CIDA Civil Society NGOs)

waynewaynedunncom

Underwater Logging in Ghana

waynewaynedunncom

Private Sector and International Development

Private sector especially resource extraction has a very mixed record bull Some horrendous disasters (Nigeria Warao Peoples in

Venezuela etc) bull Some great successes (Placer Dome Care project

mining and HIVAIDS 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

waynewaynedunncom

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

interestsobjectives overlap

waynewaynedunncom

SDCSR Implementation Challenges

more than a warm fuzzy issue Spending isnrsquot the answer

Plan

Framework

System

Results

Solving social problems Objectives

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Beyond Beads and Trinkets ndash BC Mining Review

A lsquohow torsquo article on mining and CSR

Wayne Dunn

BP Venezuela Indigenous Relations ndash Meeting the Challenge Responsibly and Sustainably

Situational assessment and strategic plan for BP Venezuela Authorized for release by BP

Wayne Dunn

Cameco Community Relations Report

Situational assessment and management strategy Authorized for release by Cameco

Wayne Dunn

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author Beyond Beads lsquon Trinkets A systematic approach to managing community relations

A conference paper describing a systematic approach to community relations management helping companies to methodically develop mutually beneficial relationships with local communities and interests (this is one of the earliest papers on this subject ndash written in 1998)

Wayne Dunn

The costs of conflict with local communities in the extractive industry

Analysis of the cost of community conflicts in the Extractive Sector

Rachel Davis and Daniel M Franks

Creating Shared Value

Harvard Business Review interview with Michael Porter

Video

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Social License Its all about value

Discussion on Social License and shareholder Value

Wayne Dunn

Its about Development Commentary on the CIDAMining Company issue

Wayne Dunn

Integrating corporate strategy and social responsibilitymdashmarket returns from stakeholder engagement

Discussion and analysis on market returns on stakeholder engagement

Witold J Henisz Sinziana Dorobantu and Lite J Narty

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

McGill Reporter ndash Four Burning Questions Wayne Dunn on CSR

Discussion on CSR Wayne Dunn

Miningrsquos contribution to sustainable development ndashan overview

Discussion paper prepared by the International Council on Mining and Metals

Millennium Development Goals

United Nations

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Mining and Agriculture Development

A short lsquohow torsquo guide for mining projects to engage with the local agriculture sector

Al Hingston

PDSA Social Value Brochure

Brochure on social value created by Placer Dome South Africa

Placer Dome

The Value of Social License

Opinion piece published in Northern Miner

Wayne Dunn

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Golden Opportunity When a Canadian multinational laid off hundreds of gold miners in South Africa it went many extra miles to help them get back on their feet

Stanford Business School Case Study on Placer Dome in South Africa

Wayne Dunn

The Changing Resource Development Paradigm Maximizing Sustainable Local Benefits from Resource Development

Strategic thought piece prepared for the government of British Columbia Canada

Wayne Dunn

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

The Disappearing Barriers Between Business And Non-profits Are Driving Innovation

Discussion paper

Katherine Pikus

When Condoms are not enough

World Bank staff magazine article on Placer Dome and South African mining industryrsquos work with HIVAIDS

Craig Andrews

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

MINING AND LOCAL ECONOMIC DEVELOPMENT IN PAPUA NEW GUINEA Preliminary Research on a Potential Pilot Project in Porgera and Lihir

Strategic research and action plan on mining and local economic development in Papua New Guinea prepared for the World Bank

Wayne Dunn

waynewaynedunncom

What we covered

We 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) Publicprivatecivil society collaboration ndash case study

and discussion (CIDA and Mining Companies) Open discussion on topics of interest (time permitting)

waynewaynedunncom

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 howwhy 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

waynewaynedunncom

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 howwhy 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

waynewaynedunncom

Alignment around Shared Value For shareholders For Communities For People For Governments

Private Sector Contributions To International Development

Remember

  • Private Sector Contributions To International Development
  • Session Objectives
  • Map of the morning How we will try to meet the objectives
  • Slide Number 4
  • What is ODA and FDI
  • What is ODA and FDI
  • Why discuss Private Sector Contribution anyway
  • FDIBusiness Outcomes
  • Intention and Strategy Make a Difference
  • Why does the private sector care
  • Community Consultation and Value
  • Itrsquos Real Money
  • CSR is a Value Strategy
  • Social License Failures cost
  • Why is CSR happening
  • The Mining World Has Changed
  • CSR is a complicated space
  • CSR amp Social License
  • Role of business is changing (click image to play video)
  • Case Studies (of successes)
  • Slide Number 21
  • Uranium Industry in Northern Saskatchewan
  • Challenging area
  • Challenging Times
  • Cameco in 1998
  • Cameco in Northern Saskatchewan (2010)
  • So how did Cameco and the industry do it
  • Placer Dome South Africa
  • Slide Number 29
  • Background
  • Background (cont)
  • Families amp Communities must benefit from mining
  • The Care Project
  • Implications
  • Slide Number 35
  • The Initial 4-Step Plan
  • Reality was different than we expected
  • Reality was different than expected
  • Meeting the challenges
  • TheProcess
  • Some results
  • Chicken raising business
  • Furniture making
  • Unique training programs
  • Rice farming in Mozambique
  • Spaza (convenience) shop
  • And the business value ishellip
  • Slide Number 48
  • What was in it for Placer Dome
  • And then there is HIVAIDS
  • HIVAIDS Facts (in 2000)
  • HIVAIDS Impact
  • HIVAIDS and Gold Mining
  • HIVAIDS Programming
  • Minesite Program
  • Minesite Program
  • Current Community Program
  • Community Mobile Clinic
  • And when HIV prevention doesnrsquot work
  • Industry Home Based Care
  • Home Based Care
  • INDUSTRY HOME BASED CARE RESULTS(Year One)
  • Overview of Placer Dome AIDS Programming
  • Slide Number 64
  • HIVAIDS and Rural Areas
  • HIVAIDS and Rural Areas
  • Reputational Results for Placer Dome
  • Where to next
  • Planned Program
  • Care Positive Summary
  • Andhellip
  • MDG Impacts of Placer Dome in South Africa
  • One thing leads to another
  • PNG HIVAIDS
  • PNG Outcomes (or outputs ndash Irsquom never sure)
  • Slide Number 76
  • PNG AIDS mission to South Africa
  • MDG Impacts of PNG HIVAIDS work
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • MDG Impacts of Eldorado Gold
  • Underwater Logging in Ghana
  • Private Sector and International Development
  • Group Exercise
  • Slide Number 87
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • What we covered
  • Session Objectives
  • Session Objectives
  • Remember
Page 61: Private Sector Contributions To International Development – McGill Executive Education Program Lecture

waynewaynedunncom Slide 61

Home Based Care

Slide 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

waynewaynedunncom Slide 63

Overview of Placer Dome AIDS Programming SOUTH DEEP Sustainable Development Department

bullVoluntary Counseling and testing HIV Negative bullContinue working

On Mine Program Community Program

Modified work program Farm bullAgricultural work Environmental

Medical repatriation

Home Based Care

Benefits Care Positive

HBC EC OPP

Back to work or Re skilled

Wellness Program

waynewaynedunncom Slide 64

But what happens to children and families when the breadwinner canrsquot

work

Slide 65

HIVAIDS and Rural Areas HIVAIDS 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

Slide 66

HIVAIDS 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

waynewaynedunncom

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 CSREthical

Project Award (2004) Numerous other awards Stanford Case Study

waynewaynedunncom Slide 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 69

Planned Program

Care Positive Integrate the Home Based Care

project with the Care process and launch as a fee for service based program to address the social and 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

Care Process

+

Home Based Care

=

Care Positive

waynewaynedunncom Slide 70

Care Positive Summary

waynewaynedunncom

Andhellip 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 $100000 and considerable reputational capital into them Industry went forward with modified HIVAIDS

programming but huge developmental impacts were lost

waynewaynedunncom Slide 72

MDG Impacts of Placer Dome in South Africa

1 Poverty and hunger 2 Some impact on primary education (School

feeding program) 3 Promote gender equality and empower women 4 Reduce child mortality 5 Improve maternal health 6 Combat HIVAIDS malaria and other diseass 7 Ensure environmental sustainability 8 Develop a global partnership for development

(Placer Dome CIDA Civil Society NGOs)

waynewaynedunncom

One thing leads to another

World Bank observed how Placer Domersquos leadership on HIVAIDS 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

waynewaynedunncom

PNG HIVAIDS Scoping mission to

determine what might be done and how Enthusiastic interest from

industry government multi-laterals (WHO UNAIDS World Banketc) ODA (AusAID) CIDA partnered with Place Dome to develop an

HIVAIDS strategy for PNG that integrated industry public sector civil society and international community

waynewaynedunncom

PNG Outcomes (or outputs ndash Irsquom never sure) Partnership with Mining

Industry Civil Society WHO UNAIDS UNDP World Bank PNG AIDS AusAID Oil Palm Industry etc National workshop on

HIVAIDS and publicprivate partnerships SouthSouth Collaboration

Industry government civil society international community study trip to South Africa

waynewaynedunncom

waynewaynedunncom

PNG AIDS mission to South Africa

waynewaynedunncom Slide 78

MDG Impacts of PNG HIVAIDS work

1 Poverty and hunger (nutritional supplements) 2 Some impact on primary education (peripheral) 3 Promote gender equality and empower women 4 Reduce child mortality 5 Improve maternal health 6 Combat HIVAIDS malaria and other diseass 7 Ensure environmental sustainability 8 Develop a global partnership for development

(Placer Dome CIDA Civil Society NGOs)

waynewaynedunncom

Eldorado Gold in Turkey

Major gold find in WestCentral Turkey No successful

mining project launched in decades Eurogold project

built launched and halted by community action in late 1990s ndash still mothballed

UsakKislidag Minesite

Eurogold site

waynewaynedunncom

Eldorado Gold in Turkey

Isolated rural area Nearly half of nearby

communities opposed to mine development Agriculture primary

economic activity in rural communities ndash smallmicro family farms

waynewaynedunncom

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

waynewaynedunncom

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 $075 to $1325 Opened second mine in Turkey

bull Able to deal with controversial watershed issues after relationship success in Usak

waynewaynedunncom Slide 83

MDG Impacts of Eldorado Gold

1 Poverty and hunger (minimal) 2 Some impact on primary education (peripheral) 3 Promote gender equality and empower women 4 Reduce child mortality 5 Improve maternal health 6 Combat HIVAIDS malaria and other diseass 7 Ensure environmental sustainability 8 Develop a global partnership for development

(Placer Dome CIDA Civil Society NGOs)

waynewaynedunncom

Underwater Logging in Ghana

waynewaynedunncom

Private Sector and International Development

Private sector especially resource extraction has a very mixed record bull Some horrendous disasters (Nigeria Warao Peoples in

Venezuela etc) bull Some great successes (Placer Dome Care project

mining and HIVAIDS 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

waynewaynedunncom

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

interestsobjectives overlap

waynewaynedunncom

SDCSR Implementation Challenges

more than a warm fuzzy issue Spending isnrsquot the answer

Plan

Framework

System

Results

Solving social problems Objectives

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Beyond Beads and Trinkets ndash BC Mining Review

A lsquohow torsquo article on mining and CSR

Wayne Dunn

BP Venezuela Indigenous Relations ndash Meeting the Challenge Responsibly and Sustainably

Situational assessment and strategic plan for BP Venezuela Authorized for release by BP

Wayne Dunn

Cameco Community Relations Report

Situational assessment and management strategy Authorized for release by Cameco

Wayne Dunn

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author Beyond Beads lsquon Trinkets A systematic approach to managing community relations

A conference paper describing a systematic approach to community relations management helping companies to methodically develop mutually beneficial relationships with local communities and interests (this is one of the earliest papers on this subject ndash written in 1998)

Wayne Dunn

The costs of conflict with local communities in the extractive industry

Analysis of the cost of community conflicts in the Extractive Sector

Rachel Davis and Daniel M Franks

Creating Shared Value

Harvard Business Review interview with Michael Porter

Video

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Social License Its all about value

Discussion on Social License and shareholder Value

Wayne Dunn

Its about Development Commentary on the CIDAMining Company issue

Wayne Dunn

Integrating corporate strategy and social responsibilitymdashmarket returns from stakeholder engagement

Discussion and analysis on market returns on stakeholder engagement

Witold J Henisz Sinziana Dorobantu and Lite J Narty

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

McGill Reporter ndash Four Burning Questions Wayne Dunn on CSR

Discussion on CSR Wayne Dunn

Miningrsquos contribution to sustainable development ndashan overview

Discussion paper prepared by the International Council on Mining and Metals

Millennium Development Goals

United Nations

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Mining and Agriculture Development

A short lsquohow torsquo guide for mining projects to engage with the local agriculture sector

Al Hingston

PDSA Social Value Brochure

Brochure on social value created by Placer Dome South Africa

Placer Dome

The Value of Social License

Opinion piece published in Northern Miner

Wayne Dunn

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Golden Opportunity When a Canadian multinational laid off hundreds of gold miners in South Africa it went many extra miles to help them get back on their feet

Stanford Business School Case Study on Placer Dome in South Africa

Wayne Dunn

The Changing Resource Development Paradigm Maximizing Sustainable Local Benefits from Resource Development

Strategic thought piece prepared for the government of British Columbia Canada

Wayne Dunn

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

The Disappearing Barriers Between Business And Non-profits Are Driving Innovation

Discussion paper

Katherine Pikus

When Condoms are not enough

World Bank staff magazine article on Placer Dome and South African mining industryrsquos work with HIVAIDS

Craig Andrews

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

MINING AND LOCAL ECONOMIC DEVELOPMENT IN PAPUA NEW GUINEA Preliminary Research on a Potential Pilot Project in Porgera and Lihir

Strategic research and action plan on mining and local economic development in Papua New Guinea prepared for the World Bank

Wayne Dunn

waynewaynedunncom

What we covered

We 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) Publicprivatecivil society collaboration ndash case study

and discussion (CIDA and Mining Companies) Open discussion on topics of interest (time permitting)

waynewaynedunncom

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 howwhy 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

waynewaynedunncom

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 howwhy 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

waynewaynedunncom

Alignment around Shared Value For shareholders For Communities For People For Governments

Private Sector Contributions To International Development

Remember

  • Private Sector Contributions To International Development
  • Session Objectives
  • Map of the morning How we will try to meet the objectives
  • Slide Number 4
  • What is ODA and FDI
  • What is ODA and FDI
  • Why discuss Private Sector Contribution anyway
  • FDIBusiness Outcomes
  • Intention and Strategy Make a Difference
  • Why does the private sector care
  • Community Consultation and Value
  • Itrsquos Real Money
  • CSR is a Value Strategy
  • Social License Failures cost
  • Why is CSR happening
  • The Mining World Has Changed
  • CSR is a complicated space
  • CSR amp Social License
  • Role of business is changing (click image to play video)
  • Case Studies (of successes)
  • Slide Number 21
  • Uranium Industry in Northern Saskatchewan
  • Challenging area
  • Challenging Times
  • Cameco in 1998
  • Cameco in Northern Saskatchewan (2010)
  • So how did Cameco and the industry do it
  • Placer Dome South Africa
  • Slide Number 29
  • Background
  • Background (cont)
  • Families amp Communities must benefit from mining
  • The Care Project
  • Implications
  • Slide Number 35
  • The Initial 4-Step Plan
  • Reality was different than we expected
  • Reality was different than expected
  • Meeting the challenges
  • TheProcess
  • Some results
  • Chicken raising business
  • Furniture making
  • Unique training programs
  • Rice farming in Mozambique
  • Spaza (convenience) shop
  • And the business value ishellip
  • Slide Number 48
  • What was in it for Placer Dome
  • And then there is HIVAIDS
  • HIVAIDS Facts (in 2000)
  • HIVAIDS Impact
  • HIVAIDS and Gold Mining
  • HIVAIDS Programming
  • Minesite Program
  • Minesite Program
  • Current Community Program
  • Community Mobile Clinic
  • And when HIV prevention doesnrsquot work
  • Industry Home Based Care
  • Home Based Care
  • INDUSTRY HOME BASED CARE RESULTS(Year One)
  • Overview of Placer Dome AIDS Programming
  • Slide Number 64
  • HIVAIDS and Rural Areas
  • HIVAIDS and Rural Areas
  • Reputational Results for Placer Dome
  • Where to next
  • Planned Program
  • Care Positive Summary
  • Andhellip
  • MDG Impacts of Placer Dome in South Africa
  • One thing leads to another
  • PNG HIVAIDS
  • PNG Outcomes (or outputs ndash Irsquom never sure)
  • Slide Number 76
  • PNG AIDS mission to South Africa
  • MDG Impacts of PNG HIVAIDS work
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • MDG Impacts of Eldorado Gold
  • Underwater Logging in Ghana
  • Private Sector and International Development
  • Group Exercise
  • Slide Number 87
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • What we covered
  • Session Objectives
  • Session Objectives
  • Remember
Page 62: Private Sector Contributions To International Development – McGill Executive Education Program Lecture

Slide 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

waynewaynedunncom Slide 63

Overview of Placer Dome AIDS Programming SOUTH DEEP Sustainable Development Department

bullVoluntary Counseling and testing HIV Negative bullContinue working

On Mine Program Community Program

Modified work program Farm bullAgricultural work Environmental

Medical repatriation

Home Based Care

Benefits Care Positive

HBC EC OPP

Back to work or Re skilled

Wellness Program

waynewaynedunncom Slide 64

But what happens to children and families when the breadwinner canrsquot

work

Slide 65

HIVAIDS and Rural Areas HIVAIDS 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

Slide 66

HIVAIDS 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

waynewaynedunncom

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 CSREthical

Project Award (2004) Numerous other awards Stanford Case Study

waynewaynedunncom Slide 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 69

Planned Program

Care Positive Integrate the Home Based Care

project with the Care process and launch as a fee for service based program to address the social and 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

Care Process

+

Home Based Care

=

Care Positive

waynewaynedunncom Slide 70

Care Positive Summary

waynewaynedunncom

Andhellip 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 $100000 and considerable reputational capital into them Industry went forward with modified HIVAIDS

programming but huge developmental impacts were lost

waynewaynedunncom Slide 72

MDG Impacts of Placer Dome in South Africa

1 Poverty and hunger 2 Some impact on primary education (School

feeding program) 3 Promote gender equality and empower women 4 Reduce child mortality 5 Improve maternal health 6 Combat HIVAIDS malaria and other diseass 7 Ensure environmental sustainability 8 Develop a global partnership for development

(Placer Dome CIDA Civil Society NGOs)

waynewaynedunncom

One thing leads to another

World Bank observed how Placer Domersquos leadership on HIVAIDS 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

waynewaynedunncom

PNG HIVAIDS Scoping mission to

determine what might be done and how Enthusiastic interest from

industry government multi-laterals (WHO UNAIDS World Banketc) ODA (AusAID) CIDA partnered with Place Dome to develop an

HIVAIDS strategy for PNG that integrated industry public sector civil society and international community

waynewaynedunncom

PNG Outcomes (or outputs ndash Irsquom never sure) Partnership with Mining

Industry Civil Society WHO UNAIDS UNDP World Bank PNG AIDS AusAID Oil Palm Industry etc National workshop on

HIVAIDS and publicprivate partnerships SouthSouth Collaboration

Industry government civil society international community study trip to South Africa

waynewaynedunncom

waynewaynedunncom

PNG AIDS mission to South Africa

waynewaynedunncom Slide 78

MDG Impacts of PNG HIVAIDS work

1 Poverty and hunger (nutritional supplements) 2 Some impact on primary education (peripheral) 3 Promote gender equality and empower women 4 Reduce child mortality 5 Improve maternal health 6 Combat HIVAIDS malaria and other diseass 7 Ensure environmental sustainability 8 Develop a global partnership for development

(Placer Dome CIDA Civil Society NGOs)

waynewaynedunncom

Eldorado Gold in Turkey

Major gold find in WestCentral Turkey No successful

mining project launched in decades Eurogold project

built launched and halted by community action in late 1990s ndash still mothballed

UsakKislidag Minesite

Eurogold site

waynewaynedunncom

Eldorado Gold in Turkey

Isolated rural area Nearly half of nearby

communities opposed to mine development Agriculture primary

economic activity in rural communities ndash smallmicro family farms

waynewaynedunncom

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

waynewaynedunncom

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 $075 to $1325 Opened second mine in Turkey

bull Able to deal with controversial watershed issues after relationship success in Usak

waynewaynedunncom Slide 83

MDG Impacts of Eldorado Gold

1 Poverty and hunger (minimal) 2 Some impact on primary education (peripheral) 3 Promote gender equality and empower women 4 Reduce child mortality 5 Improve maternal health 6 Combat HIVAIDS malaria and other diseass 7 Ensure environmental sustainability 8 Develop a global partnership for development

(Placer Dome CIDA Civil Society NGOs)

waynewaynedunncom

Underwater Logging in Ghana

waynewaynedunncom

Private Sector and International Development

Private sector especially resource extraction has a very mixed record bull Some horrendous disasters (Nigeria Warao Peoples in

Venezuela etc) bull Some great successes (Placer Dome Care project

mining and HIVAIDS 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

waynewaynedunncom

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

interestsobjectives overlap

waynewaynedunncom

SDCSR Implementation Challenges

more than a warm fuzzy issue Spending isnrsquot the answer

Plan

Framework

System

Results

Solving social problems Objectives

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Beyond Beads and Trinkets ndash BC Mining Review

A lsquohow torsquo article on mining and CSR

Wayne Dunn

BP Venezuela Indigenous Relations ndash Meeting the Challenge Responsibly and Sustainably

Situational assessment and strategic plan for BP Venezuela Authorized for release by BP

Wayne Dunn

Cameco Community Relations Report

Situational assessment and management strategy Authorized for release by Cameco

Wayne Dunn

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author Beyond Beads lsquon Trinkets A systematic approach to managing community relations

A conference paper describing a systematic approach to community relations management helping companies to methodically develop mutually beneficial relationships with local communities and interests (this is one of the earliest papers on this subject ndash written in 1998)

Wayne Dunn

The costs of conflict with local communities in the extractive industry

Analysis of the cost of community conflicts in the Extractive Sector

Rachel Davis and Daniel M Franks

Creating Shared Value

Harvard Business Review interview with Michael Porter

Video

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Social License Its all about value

Discussion on Social License and shareholder Value

Wayne Dunn

Its about Development Commentary on the CIDAMining Company issue

Wayne Dunn

Integrating corporate strategy and social responsibilitymdashmarket returns from stakeholder engagement

Discussion and analysis on market returns on stakeholder engagement

Witold J Henisz Sinziana Dorobantu and Lite J Narty

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

McGill Reporter ndash Four Burning Questions Wayne Dunn on CSR

Discussion on CSR Wayne Dunn

Miningrsquos contribution to sustainable development ndashan overview

Discussion paper prepared by the International Council on Mining and Metals

Millennium Development Goals

United Nations

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Mining and Agriculture Development

A short lsquohow torsquo guide for mining projects to engage with the local agriculture sector

Al Hingston

PDSA Social Value Brochure

Brochure on social value created by Placer Dome South Africa

Placer Dome

The Value of Social License

Opinion piece published in Northern Miner

Wayne Dunn

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Golden Opportunity When a Canadian multinational laid off hundreds of gold miners in South Africa it went many extra miles to help them get back on their feet

Stanford Business School Case Study on Placer Dome in South Africa

Wayne Dunn

The Changing Resource Development Paradigm Maximizing Sustainable Local Benefits from Resource Development

Strategic thought piece prepared for the government of British Columbia Canada

Wayne Dunn

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

The Disappearing Barriers Between Business And Non-profits Are Driving Innovation

Discussion paper

Katherine Pikus

When Condoms are not enough

World Bank staff magazine article on Placer Dome and South African mining industryrsquos work with HIVAIDS

Craig Andrews

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

MINING AND LOCAL ECONOMIC DEVELOPMENT IN PAPUA NEW GUINEA Preliminary Research on a Potential Pilot Project in Porgera and Lihir

Strategic research and action plan on mining and local economic development in Papua New Guinea prepared for the World Bank

Wayne Dunn

waynewaynedunncom

What we covered

We 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) Publicprivatecivil society collaboration ndash case study

and discussion (CIDA and Mining Companies) Open discussion on topics of interest (time permitting)

waynewaynedunncom

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 howwhy 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

waynewaynedunncom

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 howwhy 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

waynewaynedunncom

Alignment around Shared Value For shareholders For Communities For People For Governments

Private Sector Contributions To International Development

Remember

  • Private Sector Contributions To International Development
  • Session Objectives
  • Map of the morning How we will try to meet the objectives
  • Slide Number 4
  • What is ODA and FDI
  • What is ODA and FDI
  • Why discuss Private Sector Contribution anyway
  • FDIBusiness Outcomes
  • Intention and Strategy Make a Difference
  • Why does the private sector care
  • Community Consultation and Value
  • Itrsquos Real Money
  • CSR is a Value Strategy
  • Social License Failures cost
  • Why is CSR happening
  • The Mining World Has Changed
  • CSR is a complicated space
  • CSR amp Social License
  • Role of business is changing (click image to play video)
  • Case Studies (of successes)
  • Slide Number 21
  • Uranium Industry in Northern Saskatchewan
  • Challenging area
  • Challenging Times
  • Cameco in 1998
  • Cameco in Northern Saskatchewan (2010)
  • So how did Cameco and the industry do it
  • Placer Dome South Africa
  • Slide Number 29
  • Background
  • Background (cont)
  • Families amp Communities must benefit from mining
  • The Care Project
  • Implications
  • Slide Number 35
  • The Initial 4-Step Plan
  • Reality was different than we expected
  • Reality was different than expected
  • Meeting the challenges
  • TheProcess
  • Some results
  • Chicken raising business
  • Furniture making
  • Unique training programs
  • Rice farming in Mozambique
  • Spaza (convenience) shop
  • And the business value ishellip
  • Slide Number 48
  • What was in it for Placer Dome
  • And then there is HIVAIDS
  • HIVAIDS Facts (in 2000)
  • HIVAIDS Impact
  • HIVAIDS and Gold Mining
  • HIVAIDS Programming
  • Minesite Program
  • Minesite Program
  • Current Community Program
  • Community Mobile Clinic
  • And when HIV prevention doesnrsquot work
  • Industry Home Based Care
  • Home Based Care
  • INDUSTRY HOME BASED CARE RESULTS(Year One)
  • Overview of Placer Dome AIDS Programming
  • Slide Number 64
  • HIVAIDS and Rural Areas
  • HIVAIDS and Rural Areas
  • Reputational Results for Placer Dome
  • Where to next
  • Planned Program
  • Care Positive Summary
  • Andhellip
  • MDG Impacts of Placer Dome in South Africa
  • One thing leads to another
  • PNG HIVAIDS
  • PNG Outcomes (or outputs ndash Irsquom never sure)
  • Slide Number 76
  • PNG AIDS mission to South Africa
  • MDG Impacts of PNG HIVAIDS work
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • MDG Impacts of Eldorado Gold
  • Underwater Logging in Ghana
  • Private Sector and International Development
  • Group Exercise
  • Slide Number 87
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • What we covered
  • Session Objectives
  • Session Objectives
  • Remember
Page 63: Private Sector Contributions To International Development – McGill Executive Education Program Lecture

waynewaynedunncom Slide 63

Overview of Placer Dome AIDS Programming SOUTH DEEP Sustainable Development Department

bullVoluntary Counseling and testing HIV Negative bullContinue working

On Mine Program Community Program

Modified work program Farm bullAgricultural work Environmental

Medical repatriation

Home Based Care

Benefits Care Positive

HBC EC OPP

Back to work or Re skilled

Wellness Program

waynewaynedunncom Slide 64

But what happens to children and families when the breadwinner canrsquot

work

Slide 65

HIVAIDS and Rural Areas HIVAIDS 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

Slide 66

HIVAIDS 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

waynewaynedunncom

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 CSREthical

Project Award (2004) Numerous other awards Stanford Case Study

waynewaynedunncom Slide 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 69

Planned Program

Care Positive Integrate the Home Based Care

project with the Care process and launch as a fee for service based program to address the social and 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

Care Process

+

Home Based Care

=

Care Positive

waynewaynedunncom Slide 70

Care Positive Summary

waynewaynedunncom

Andhellip 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 $100000 and considerable reputational capital into them Industry went forward with modified HIVAIDS

programming but huge developmental impacts were lost

waynewaynedunncom Slide 72

MDG Impacts of Placer Dome in South Africa

1 Poverty and hunger 2 Some impact on primary education (School

feeding program) 3 Promote gender equality and empower women 4 Reduce child mortality 5 Improve maternal health 6 Combat HIVAIDS malaria and other diseass 7 Ensure environmental sustainability 8 Develop a global partnership for development

(Placer Dome CIDA Civil Society NGOs)

waynewaynedunncom

One thing leads to another

World Bank observed how Placer Domersquos leadership on HIVAIDS 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

waynewaynedunncom

PNG HIVAIDS Scoping mission to

determine what might be done and how Enthusiastic interest from

industry government multi-laterals (WHO UNAIDS World Banketc) ODA (AusAID) CIDA partnered with Place Dome to develop an

HIVAIDS strategy for PNG that integrated industry public sector civil society and international community

waynewaynedunncom

PNG Outcomes (or outputs ndash Irsquom never sure) Partnership with Mining

Industry Civil Society WHO UNAIDS UNDP World Bank PNG AIDS AusAID Oil Palm Industry etc National workshop on

HIVAIDS and publicprivate partnerships SouthSouth Collaboration

Industry government civil society international community study trip to South Africa

waynewaynedunncom

waynewaynedunncom

PNG AIDS mission to South Africa

waynewaynedunncom Slide 78

MDG Impacts of PNG HIVAIDS work

1 Poverty and hunger (nutritional supplements) 2 Some impact on primary education (peripheral) 3 Promote gender equality and empower women 4 Reduce child mortality 5 Improve maternal health 6 Combat HIVAIDS malaria and other diseass 7 Ensure environmental sustainability 8 Develop a global partnership for development

(Placer Dome CIDA Civil Society NGOs)

waynewaynedunncom

Eldorado Gold in Turkey

Major gold find in WestCentral Turkey No successful

mining project launched in decades Eurogold project

built launched and halted by community action in late 1990s ndash still mothballed

UsakKislidag Minesite

Eurogold site

waynewaynedunncom

Eldorado Gold in Turkey

Isolated rural area Nearly half of nearby

communities opposed to mine development Agriculture primary

economic activity in rural communities ndash smallmicro family farms

waynewaynedunncom

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

waynewaynedunncom

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 $075 to $1325 Opened second mine in Turkey

bull Able to deal with controversial watershed issues after relationship success in Usak

waynewaynedunncom Slide 83

MDG Impacts of Eldorado Gold

1 Poverty and hunger (minimal) 2 Some impact on primary education (peripheral) 3 Promote gender equality and empower women 4 Reduce child mortality 5 Improve maternal health 6 Combat HIVAIDS malaria and other diseass 7 Ensure environmental sustainability 8 Develop a global partnership for development

(Placer Dome CIDA Civil Society NGOs)

waynewaynedunncom

Underwater Logging in Ghana

waynewaynedunncom

Private Sector and International Development

Private sector especially resource extraction has a very mixed record bull Some horrendous disasters (Nigeria Warao Peoples in

Venezuela etc) bull Some great successes (Placer Dome Care project

mining and HIVAIDS 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

waynewaynedunncom

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

interestsobjectives overlap

waynewaynedunncom

SDCSR Implementation Challenges

more than a warm fuzzy issue Spending isnrsquot the answer

Plan

Framework

System

Results

Solving social problems Objectives

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Beyond Beads and Trinkets ndash BC Mining Review

A lsquohow torsquo article on mining and CSR

Wayne Dunn

BP Venezuela Indigenous Relations ndash Meeting the Challenge Responsibly and Sustainably

Situational assessment and strategic plan for BP Venezuela Authorized for release by BP

Wayne Dunn

Cameco Community Relations Report

Situational assessment and management strategy Authorized for release by Cameco

Wayne Dunn

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author Beyond Beads lsquon Trinkets A systematic approach to managing community relations

A conference paper describing a systematic approach to community relations management helping companies to methodically develop mutually beneficial relationships with local communities and interests (this is one of the earliest papers on this subject ndash written in 1998)

Wayne Dunn

The costs of conflict with local communities in the extractive industry

Analysis of the cost of community conflicts in the Extractive Sector

Rachel Davis and Daniel M Franks

Creating Shared Value

Harvard Business Review interview with Michael Porter

Video

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Social License Its all about value

Discussion on Social License and shareholder Value

Wayne Dunn

Its about Development Commentary on the CIDAMining Company issue

Wayne Dunn

Integrating corporate strategy and social responsibilitymdashmarket returns from stakeholder engagement

Discussion and analysis on market returns on stakeholder engagement

Witold J Henisz Sinziana Dorobantu and Lite J Narty

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

McGill Reporter ndash Four Burning Questions Wayne Dunn on CSR

Discussion on CSR Wayne Dunn

Miningrsquos contribution to sustainable development ndashan overview

Discussion paper prepared by the International Council on Mining and Metals

Millennium Development Goals

United Nations

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Mining and Agriculture Development

A short lsquohow torsquo guide for mining projects to engage with the local agriculture sector

Al Hingston

PDSA Social Value Brochure

Brochure on social value created by Placer Dome South Africa

Placer Dome

The Value of Social License

Opinion piece published in Northern Miner

Wayne Dunn

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Golden Opportunity When a Canadian multinational laid off hundreds of gold miners in South Africa it went many extra miles to help them get back on their feet

Stanford Business School Case Study on Placer Dome in South Africa

Wayne Dunn

The Changing Resource Development Paradigm Maximizing Sustainable Local Benefits from Resource Development

Strategic thought piece prepared for the government of British Columbia Canada

Wayne Dunn

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

The Disappearing Barriers Between Business And Non-profits Are Driving Innovation

Discussion paper

Katherine Pikus

When Condoms are not enough

World Bank staff magazine article on Placer Dome and South African mining industryrsquos work with HIVAIDS

Craig Andrews

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

MINING AND LOCAL ECONOMIC DEVELOPMENT IN PAPUA NEW GUINEA Preliminary Research on a Potential Pilot Project in Porgera and Lihir

Strategic research and action plan on mining and local economic development in Papua New Guinea prepared for the World Bank

Wayne Dunn

waynewaynedunncom

What we covered

We 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) Publicprivatecivil society collaboration ndash case study

and discussion (CIDA and Mining Companies) Open discussion on topics of interest (time permitting)

waynewaynedunncom

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 howwhy 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

waynewaynedunncom

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 howwhy 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

waynewaynedunncom

Alignment around Shared Value For shareholders For Communities For People For Governments

Private Sector Contributions To International Development

Remember

  • Private Sector Contributions To International Development
  • Session Objectives
  • Map of the morning How we will try to meet the objectives
  • Slide Number 4
  • What is ODA and FDI
  • What is ODA and FDI
  • Why discuss Private Sector Contribution anyway
  • FDIBusiness Outcomes
  • Intention and Strategy Make a Difference
  • Why does the private sector care
  • Community Consultation and Value
  • Itrsquos Real Money
  • CSR is a Value Strategy
  • Social License Failures cost
  • Why is CSR happening
  • The Mining World Has Changed
  • CSR is a complicated space
  • CSR amp Social License
  • Role of business is changing (click image to play video)
  • Case Studies (of successes)
  • Slide Number 21
  • Uranium Industry in Northern Saskatchewan
  • Challenging area
  • Challenging Times
  • Cameco in 1998
  • Cameco in Northern Saskatchewan (2010)
  • So how did Cameco and the industry do it
  • Placer Dome South Africa
  • Slide Number 29
  • Background
  • Background (cont)
  • Families amp Communities must benefit from mining
  • The Care Project
  • Implications
  • Slide Number 35
  • The Initial 4-Step Plan
  • Reality was different than we expected
  • Reality was different than expected
  • Meeting the challenges
  • TheProcess
  • Some results
  • Chicken raising business
  • Furniture making
  • Unique training programs
  • Rice farming in Mozambique
  • Spaza (convenience) shop
  • And the business value ishellip
  • Slide Number 48
  • What was in it for Placer Dome
  • And then there is HIVAIDS
  • HIVAIDS Facts (in 2000)
  • HIVAIDS Impact
  • HIVAIDS and Gold Mining
  • HIVAIDS Programming
  • Minesite Program
  • Minesite Program
  • Current Community Program
  • Community Mobile Clinic
  • And when HIV prevention doesnrsquot work
  • Industry Home Based Care
  • Home Based Care
  • INDUSTRY HOME BASED CARE RESULTS(Year One)
  • Overview of Placer Dome AIDS Programming
  • Slide Number 64
  • HIVAIDS and Rural Areas
  • HIVAIDS and Rural Areas
  • Reputational Results for Placer Dome
  • Where to next
  • Planned Program
  • Care Positive Summary
  • Andhellip
  • MDG Impacts of Placer Dome in South Africa
  • One thing leads to another
  • PNG HIVAIDS
  • PNG Outcomes (or outputs ndash Irsquom never sure)
  • Slide Number 76
  • PNG AIDS mission to South Africa
  • MDG Impacts of PNG HIVAIDS work
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • MDG Impacts of Eldorado Gold
  • Underwater Logging in Ghana
  • Private Sector and International Development
  • Group Exercise
  • Slide Number 87
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • What we covered
  • Session Objectives
  • Session Objectives
  • Remember
Page 64: Private Sector Contributions To International Development – McGill Executive Education Program Lecture

waynewaynedunncom Slide 64

But what happens to children and families when the breadwinner canrsquot

work

Slide 65

HIVAIDS and Rural Areas HIVAIDS 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

Slide 66

HIVAIDS 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

waynewaynedunncom

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 CSREthical

Project Award (2004) Numerous other awards Stanford Case Study

waynewaynedunncom Slide 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 69

Planned Program

Care Positive Integrate the Home Based Care

project with the Care process and launch as a fee for service based program to address the social and 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

Care Process

+

Home Based Care

=

Care Positive

waynewaynedunncom Slide 70

Care Positive Summary

waynewaynedunncom

Andhellip 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 $100000 and considerable reputational capital into them Industry went forward with modified HIVAIDS

programming but huge developmental impacts were lost

waynewaynedunncom Slide 72

MDG Impacts of Placer Dome in South Africa

1 Poverty and hunger 2 Some impact on primary education (School

feeding program) 3 Promote gender equality and empower women 4 Reduce child mortality 5 Improve maternal health 6 Combat HIVAIDS malaria and other diseass 7 Ensure environmental sustainability 8 Develop a global partnership for development

(Placer Dome CIDA Civil Society NGOs)

waynewaynedunncom

One thing leads to another

World Bank observed how Placer Domersquos leadership on HIVAIDS 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

waynewaynedunncom

PNG HIVAIDS Scoping mission to

determine what might be done and how Enthusiastic interest from

industry government multi-laterals (WHO UNAIDS World Banketc) ODA (AusAID) CIDA partnered with Place Dome to develop an

HIVAIDS strategy for PNG that integrated industry public sector civil society and international community

waynewaynedunncom

PNG Outcomes (or outputs ndash Irsquom never sure) Partnership with Mining

Industry Civil Society WHO UNAIDS UNDP World Bank PNG AIDS AusAID Oil Palm Industry etc National workshop on

HIVAIDS and publicprivate partnerships SouthSouth Collaboration

Industry government civil society international community study trip to South Africa

waynewaynedunncom

waynewaynedunncom

PNG AIDS mission to South Africa

waynewaynedunncom Slide 78

MDG Impacts of PNG HIVAIDS work

1 Poverty and hunger (nutritional supplements) 2 Some impact on primary education (peripheral) 3 Promote gender equality and empower women 4 Reduce child mortality 5 Improve maternal health 6 Combat HIVAIDS malaria and other diseass 7 Ensure environmental sustainability 8 Develop a global partnership for development

(Placer Dome CIDA Civil Society NGOs)

waynewaynedunncom

Eldorado Gold in Turkey

Major gold find in WestCentral Turkey No successful

mining project launched in decades Eurogold project

built launched and halted by community action in late 1990s ndash still mothballed

UsakKislidag Minesite

Eurogold site

waynewaynedunncom

Eldorado Gold in Turkey

Isolated rural area Nearly half of nearby

communities opposed to mine development Agriculture primary

economic activity in rural communities ndash smallmicro family farms

waynewaynedunncom

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

waynewaynedunncom

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 $075 to $1325 Opened second mine in Turkey

bull Able to deal with controversial watershed issues after relationship success in Usak

waynewaynedunncom Slide 83

MDG Impacts of Eldorado Gold

1 Poverty and hunger (minimal) 2 Some impact on primary education (peripheral) 3 Promote gender equality and empower women 4 Reduce child mortality 5 Improve maternal health 6 Combat HIVAIDS malaria and other diseass 7 Ensure environmental sustainability 8 Develop a global partnership for development

(Placer Dome CIDA Civil Society NGOs)

waynewaynedunncom

Underwater Logging in Ghana

waynewaynedunncom

Private Sector and International Development

Private sector especially resource extraction has a very mixed record bull Some horrendous disasters (Nigeria Warao Peoples in

Venezuela etc) bull Some great successes (Placer Dome Care project

mining and HIVAIDS 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

waynewaynedunncom

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

interestsobjectives overlap

waynewaynedunncom

SDCSR Implementation Challenges

more than a warm fuzzy issue Spending isnrsquot the answer

Plan

Framework

System

Results

Solving social problems Objectives

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Beyond Beads and Trinkets ndash BC Mining Review

A lsquohow torsquo article on mining and CSR

Wayne Dunn

BP Venezuela Indigenous Relations ndash Meeting the Challenge Responsibly and Sustainably

Situational assessment and strategic plan for BP Venezuela Authorized for release by BP

Wayne Dunn

Cameco Community Relations Report

Situational assessment and management strategy Authorized for release by Cameco

Wayne Dunn

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author Beyond Beads lsquon Trinkets A systematic approach to managing community relations

A conference paper describing a systematic approach to community relations management helping companies to methodically develop mutually beneficial relationships with local communities and interests (this is one of the earliest papers on this subject ndash written in 1998)

Wayne Dunn

The costs of conflict with local communities in the extractive industry

Analysis of the cost of community conflicts in the Extractive Sector

Rachel Davis and Daniel M Franks

Creating Shared Value

Harvard Business Review interview with Michael Porter

Video

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Social License Its all about value

Discussion on Social License and shareholder Value

Wayne Dunn

Its about Development Commentary on the CIDAMining Company issue

Wayne Dunn

Integrating corporate strategy and social responsibilitymdashmarket returns from stakeholder engagement

Discussion and analysis on market returns on stakeholder engagement

Witold J Henisz Sinziana Dorobantu and Lite J Narty

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

McGill Reporter ndash Four Burning Questions Wayne Dunn on CSR

Discussion on CSR Wayne Dunn

Miningrsquos contribution to sustainable development ndashan overview

Discussion paper prepared by the International Council on Mining and Metals

Millennium Development Goals

United Nations

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Mining and Agriculture Development

A short lsquohow torsquo guide for mining projects to engage with the local agriculture sector

Al Hingston

PDSA Social Value Brochure

Brochure on social value created by Placer Dome South Africa

Placer Dome

The Value of Social License

Opinion piece published in Northern Miner

Wayne Dunn

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Golden Opportunity When a Canadian multinational laid off hundreds of gold miners in South Africa it went many extra miles to help them get back on their feet

Stanford Business School Case Study on Placer Dome in South Africa

Wayne Dunn

The Changing Resource Development Paradigm Maximizing Sustainable Local Benefits from Resource Development

Strategic thought piece prepared for the government of British Columbia Canada

Wayne Dunn

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

The Disappearing Barriers Between Business And Non-profits Are Driving Innovation

Discussion paper

Katherine Pikus

When Condoms are not enough

World Bank staff magazine article on Placer Dome and South African mining industryrsquos work with HIVAIDS

Craig Andrews

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

MINING AND LOCAL ECONOMIC DEVELOPMENT IN PAPUA NEW GUINEA Preliminary Research on a Potential Pilot Project in Porgera and Lihir

Strategic research and action plan on mining and local economic development in Papua New Guinea prepared for the World Bank

Wayne Dunn

waynewaynedunncom

What we covered

We 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) Publicprivatecivil society collaboration ndash case study

and discussion (CIDA and Mining Companies) Open discussion on topics of interest (time permitting)

waynewaynedunncom

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 howwhy 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

waynewaynedunncom

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 howwhy 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

waynewaynedunncom

Alignment around Shared Value For shareholders For Communities For People For Governments

Private Sector Contributions To International Development

Remember

  • Private Sector Contributions To International Development
  • Session Objectives
  • Map of the morning How we will try to meet the objectives
  • Slide Number 4
  • What is ODA and FDI
  • What is ODA and FDI
  • Why discuss Private Sector Contribution anyway
  • FDIBusiness Outcomes
  • Intention and Strategy Make a Difference
  • Why does the private sector care
  • Community Consultation and Value
  • Itrsquos Real Money
  • CSR is a Value Strategy
  • Social License Failures cost
  • Why is CSR happening
  • The Mining World Has Changed
  • CSR is a complicated space
  • CSR amp Social License
  • Role of business is changing (click image to play video)
  • Case Studies (of successes)
  • Slide Number 21
  • Uranium Industry in Northern Saskatchewan
  • Challenging area
  • Challenging Times
  • Cameco in 1998
  • Cameco in Northern Saskatchewan (2010)
  • So how did Cameco and the industry do it
  • Placer Dome South Africa
  • Slide Number 29
  • Background
  • Background (cont)
  • Families amp Communities must benefit from mining
  • The Care Project
  • Implications
  • Slide Number 35
  • The Initial 4-Step Plan
  • Reality was different than we expected
  • Reality was different than expected
  • Meeting the challenges
  • TheProcess
  • Some results
  • Chicken raising business
  • Furniture making
  • Unique training programs
  • Rice farming in Mozambique
  • Spaza (convenience) shop
  • And the business value ishellip
  • Slide Number 48
  • What was in it for Placer Dome
  • And then there is HIVAIDS
  • HIVAIDS Facts (in 2000)
  • HIVAIDS Impact
  • HIVAIDS and Gold Mining
  • HIVAIDS Programming
  • Minesite Program
  • Minesite Program
  • Current Community Program
  • Community Mobile Clinic
  • And when HIV prevention doesnrsquot work
  • Industry Home Based Care
  • Home Based Care
  • INDUSTRY HOME BASED CARE RESULTS(Year One)
  • Overview of Placer Dome AIDS Programming
  • Slide Number 64
  • HIVAIDS and Rural Areas
  • HIVAIDS and Rural Areas
  • Reputational Results for Placer Dome
  • Where to next
  • Planned Program
  • Care Positive Summary
  • Andhellip
  • MDG Impacts of Placer Dome in South Africa
  • One thing leads to another
  • PNG HIVAIDS
  • PNG Outcomes (or outputs ndash Irsquom never sure)
  • Slide Number 76
  • PNG AIDS mission to South Africa
  • MDG Impacts of PNG HIVAIDS work
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • MDG Impacts of Eldorado Gold
  • Underwater Logging in Ghana
  • Private Sector and International Development
  • Group Exercise
  • Slide Number 87
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • What we covered
  • Session Objectives
  • Session Objectives
  • Remember
Page 65: Private Sector Contributions To International Development – McGill Executive Education Program Lecture

Slide 65

HIVAIDS and Rural Areas HIVAIDS 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

Slide 66

HIVAIDS 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

waynewaynedunncom

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 CSREthical

Project Award (2004) Numerous other awards Stanford Case Study

waynewaynedunncom Slide 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 69

Planned Program

Care Positive Integrate the Home Based Care

project with the Care process and launch as a fee for service based program to address the social and 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

Care Process

+

Home Based Care

=

Care Positive

waynewaynedunncom Slide 70

Care Positive Summary

waynewaynedunncom

Andhellip 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 $100000 and considerable reputational capital into them Industry went forward with modified HIVAIDS

programming but huge developmental impacts were lost

waynewaynedunncom Slide 72

MDG Impacts of Placer Dome in South Africa

1 Poverty and hunger 2 Some impact on primary education (School

feeding program) 3 Promote gender equality and empower women 4 Reduce child mortality 5 Improve maternal health 6 Combat HIVAIDS malaria and other diseass 7 Ensure environmental sustainability 8 Develop a global partnership for development

(Placer Dome CIDA Civil Society NGOs)

waynewaynedunncom

One thing leads to another

World Bank observed how Placer Domersquos leadership on HIVAIDS 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

waynewaynedunncom

PNG HIVAIDS Scoping mission to

determine what might be done and how Enthusiastic interest from

industry government multi-laterals (WHO UNAIDS World Banketc) ODA (AusAID) CIDA partnered with Place Dome to develop an

HIVAIDS strategy for PNG that integrated industry public sector civil society and international community

waynewaynedunncom

PNG Outcomes (or outputs ndash Irsquom never sure) Partnership with Mining

Industry Civil Society WHO UNAIDS UNDP World Bank PNG AIDS AusAID Oil Palm Industry etc National workshop on

HIVAIDS and publicprivate partnerships SouthSouth Collaboration

Industry government civil society international community study trip to South Africa

waynewaynedunncom

waynewaynedunncom

PNG AIDS mission to South Africa

waynewaynedunncom Slide 78

MDG Impacts of PNG HIVAIDS work

1 Poverty and hunger (nutritional supplements) 2 Some impact on primary education (peripheral) 3 Promote gender equality and empower women 4 Reduce child mortality 5 Improve maternal health 6 Combat HIVAIDS malaria and other diseass 7 Ensure environmental sustainability 8 Develop a global partnership for development

(Placer Dome CIDA Civil Society NGOs)

waynewaynedunncom

Eldorado Gold in Turkey

Major gold find in WestCentral Turkey No successful

mining project launched in decades Eurogold project

built launched and halted by community action in late 1990s ndash still mothballed

UsakKislidag Minesite

Eurogold site

waynewaynedunncom

Eldorado Gold in Turkey

Isolated rural area Nearly half of nearby

communities opposed to mine development Agriculture primary

economic activity in rural communities ndash smallmicro family farms

waynewaynedunncom

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

waynewaynedunncom

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 $075 to $1325 Opened second mine in Turkey

bull Able to deal with controversial watershed issues after relationship success in Usak

waynewaynedunncom Slide 83

MDG Impacts of Eldorado Gold

1 Poverty and hunger (minimal) 2 Some impact on primary education (peripheral) 3 Promote gender equality and empower women 4 Reduce child mortality 5 Improve maternal health 6 Combat HIVAIDS malaria and other diseass 7 Ensure environmental sustainability 8 Develop a global partnership for development

(Placer Dome CIDA Civil Society NGOs)

waynewaynedunncom

Underwater Logging in Ghana

waynewaynedunncom

Private Sector and International Development

Private sector especially resource extraction has a very mixed record bull Some horrendous disasters (Nigeria Warao Peoples in

Venezuela etc) bull Some great successes (Placer Dome Care project

mining and HIVAIDS 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

waynewaynedunncom

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

interestsobjectives overlap

waynewaynedunncom

SDCSR Implementation Challenges

more than a warm fuzzy issue Spending isnrsquot the answer

Plan

Framework

System

Results

Solving social problems Objectives

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Beyond Beads and Trinkets ndash BC Mining Review

A lsquohow torsquo article on mining and CSR

Wayne Dunn

BP Venezuela Indigenous Relations ndash Meeting the Challenge Responsibly and Sustainably

Situational assessment and strategic plan for BP Venezuela Authorized for release by BP

Wayne Dunn

Cameco Community Relations Report

Situational assessment and management strategy Authorized for release by Cameco

Wayne Dunn

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author Beyond Beads lsquon Trinkets A systematic approach to managing community relations

A conference paper describing a systematic approach to community relations management helping companies to methodically develop mutually beneficial relationships with local communities and interests (this is one of the earliest papers on this subject ndash written in 1998)

Wayne Dunn

The costs of conflict with local communities in the extractive industry

Analysis of the cost of community conflicts in the Extractive Sector

Rachel Davis and Daniel M Franks

Creating Shared Value

Harvard Business Review interview with Michael Porter

Video

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Social License Its all about value

Discussion on Social License and shareholder Value

Wayne Dunn

Its about Development Commentary on the CIDAMining Company issue

Wayne Dunn

Integrating corporate strategy and social responsibilitymdashmarket returns from stakeholder engagement

Discussion and analysis on market returns on stakeholder engagement

Witold J Henisz Sinziana Dorobantu and Lite J Narty

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

McGill Reporter ndash Four Burning Questions Wayne Dunn on CSR

Discussion on CSR Wayne Dunn

Miningrsquos contribution to sustainable development ndashan overview

Discussion paper prepared by the International Council on Mining and Metals

Millennium Development Goals

United Nations

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Mining and Agriculture Development

A short lsquohow torsquo guide for mining projects to engage with the local agriculture sector

Al Hingston

PDSA Social Value Brochure

Brochure on social value created by Placer Dome South Africa

Placer Dome

The Value of Social License

Opinion piece published in Northern Miner

Wayne Dunn

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Golden Opportunity When a Canadian multinational laid off hundreds of gold miners in South Africa it went many extra miles to help them get back on their feet

Stanford Business School Case Study on Placer Dome in South Africa

Wayne Dunn

The Changing Resource Development Paradigm Maximizing Sustainable Local Benefits from Resource Development

Strategic thought piece prepared for the government of British Columbia Canada

Wayne Dunn

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

The Disappearing Barriers Between Business And Non-profits Are Driving Innovation

Discussion paper

Katherine Pikus

When Condoms are not enough

World Bank staff magazine article on Placer Dome and South African mining industryrsquos work with HIVAIDS

Craig Andrews

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

MINING AND LOCAL ECONOMIC DEVELOPMENT IN PAPUA NEW GUINEA Preliminary Research on a Potential Pilot Project in Porgera and Lihir

Strategic research and action plan on mining and local economic development in Papua New Guinea prepared for the World Bank

Wayne Dunn

waynewaynedunncom

What we covered

We 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) Publicprivatecivil society collaboration ndash case study

and discussion (CIDA and Mining Companies) Open discussion on topics of interest (time permitting)

waynewaynedunncom

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 howwhy 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

waynewaynedunncom

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 howwhy 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

waynewaynedunncom

Alignment around Shared Value For shareholders For Communities For People For Governments

Private Sector Contributions To International Development

Remember

  • Private Sector Contributions To International Development
  • Session Objectives
  • Map of the morning How we will try to meet the objectives
  • Slide Number 4
  • What is ODA and FDI
  • What is ODA and FDI
  • Why discuss Private Sector Contribution anyway
  • FDIBusiness Outcomes
  • Intention and Strategy Make a Difference
  • Why does the private sector care
  • Community Consultation and Value
  • Itrsquos Real Money
  • CSR is a Value Strategy
  • Social License Failures cost
  • Why is CSR happening
  • The Mining World Has Changed
  • CSR is a complicated space
  • CSR amp Social License
  • Role of business is changing (click image to play video)
  • Case Studies (of successes)
  • Slide Number 21
  • Uranium Industry in Northern Saskatchewan
  • Challenging area
  • Challenging Times
  • Cameco in 1998
  • Cameco in Northern Saskatchewan (2010)
  • So how did Cameco and the industry do it
  • Placer Dome South Africa
  • Slide Number 29
  • Background
  • Background (cont)
  • Families amp Communities must benefit from mining
  • The Care Project
  • Implications
  • Slide Number 35
  • The Initial 4-Step Plan
  • Reality was different than we expected
  • Reality was different than expected
  • Meeting the challenges
  • TheProcess
  • Some results
  • Chicken raising business
  • Furniture making
  • Unique training programs
  • Rice farming in Mozambique
  • Spaza (convenience) shop
  • And the business value ishellip
  • Slide Number 48
  • What was in it for Placer Dome
  • And then there is HIVAIDS
  • HIVAIDS Facts (in 2000)
  • HIVAIDS Impact
  • HIVAIDS and Gold Mining
  • HIVAIDS Programming
  • Minesite Program
  • Minesite Program
  • Current Community Program
  • Community Mobile Clinic
  • And when HIV prevention doesnrsquot work
  • Industry Home Based Care
  • Home Based Care
  • INDUSTRY HOME BASED CARE RESULTS(Year One)
  • Overview of Placer Dome AIDS Programming
  • Slide Number 64
  • HIVAIDS and Rural Areas
  • HIVAIDS and Rural Areas
  • Reputational Results for Placer Dome
  • Where to next
  • Planned Program
  • Care Positive Summary
  • Andhellip
  • MDG Impacts of Placer Dome in South Africa
  • One thing leads to another
  • PNG HIVAIDS
  • PNG Outcomes (or outputs ndash Irsquom never sure)
  • Slide Number 76
  • PNG AIDS mission to South Africa
  • MDG Impacts of PNG HIVAIDS work
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • MDG Impacts of Eldorado Gold
  • Underwater Logging in Ghana
  • Private Sector and International Development
  • Group Exercise
  • Slide Number 87
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • What we covered
  • Session Objectives
  • Session Objectives
  • Remember
Page 66: Private Sector Contributions To International Development – McGill Executive Education Program Lecture

Slide 66

HIVAIDS 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

waynewaynedunncom

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 CSREthical

Project Award (2004) Numerous other awards Stanford Case Study

waynewaynedunncom Slide 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 69

Planned Program

Care Positive Integrate the Home Based Care

project with the Care process and launch as a fee for service based program to address the social and 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

Care Process

+

Home Based Care

=

Care Positive

waynewaynedunncom Slide 70

Care Positive Summary

waynewaynedunncom

Andhellip 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 $100000 and considerable reputational capital into them Industry went forward with modified HIVAIDS

programming but huge developmental impacts were lost

waynewaynedunncom Slide 72

MDG Impacts of Placer Dome in South Africa

1 Poverty and hunger 2 Some impact on primary education (School

feeding program) 3 Promote gender equality and empower women 4 Reduce child mortality 5 Improve maternal health 6 Combat HIVAIDS malaria and other diseass 7 Ensure environmental sustainability 8 Develop a global partnership for development

(Placer Dome CIDA Civil Society NGOs)

waynewaynedunncom

One thing leads to another

World Bank observed how Placer Domersquos leadership on HIVAIDS 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

waynewaynedunncom

PNG HIVAIDS Scoping mission to

determine what might be done and how Enthusiastic interest from

industry government multi-laterals (WHO UNAIDS World Banketc) ODA (AusAID) CIDA partnered with Place Dome to develop an

HIVAIDS strategy for PNG that integrated industry public sector civil society and international community

waynewaynedunncom

PNG Outcomes (or outputs ndash Irsquom never sure) Partnership with Mining

Industry Civil Society WHO UNAIDS UNDP World Bank PNG AIDS AusAID Oil Palm Industry etc National workshop on

HIVAIDS and publicprivate partnerships SouthSouth Collaboration

Industry government civil society international community study trip to South Africa

waynewaynedunncom

waynewaynedunncom

PNG AIDS mission to South Africa

waynewaynedunncom Slide 78

MDG Impacts of PNG HIVAIDS work

1 Poverty and hunger (nutritional supplements) 2 Some impact on primary education (peripheral) 3 Promote gender equality and empower women 4 Reduce child mortality 5 Improve maternal health 6 Combat HIVAIDS malaria and other diseass 7 Ensure environmental sustainability 8 Develop a global partnership for development

(Placer Dome CIDA Civil Society NGOs)

waynewaynedunncom

Eldorado Gold in Turkey

Major gold find in WestCentral Turkey No successful

mining project launched in decades Eurogold project

built launched and halted by community action in late 1990s ndash still mothballed

UsakKislidag Minesite

Eurogold site

waynewaynedunncom

Eldorado Gold in Turkey

Isolated rural area Nearly half of nearby

communities opposed to mine development Agriculture primary

economic activity in rural communities ndash smallmicro family farms

waynewaynedunncom

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

waynewaynedunncom

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 $075 to $1325 Opened second mine in Turkey

bull Able to deal with controversial watershed issues after relationship success in Usak

waynewaynedunncom Slide 83

MDG Impacts of Eldorado Gold

1 Poverty and hunger (minimal) 2 Some impact on primary education (peripheral) 3 Promote gender equality and empower women 4 Reduce child mortality 5 Improve maternal health 6 Combat HIVAIDS malaria and other diseass 7 Ensure environmental sustainability 8 Develop a global partnership for development

(Placer Dome CIDA Civil Society NGOs)

waynewaynedunncom

Underwater Logging in Ghana

waynewaynedunncom

Private Sector and International Development

Private sector especially resource extraction has a very mixed record bull Some horrendous disasters (Nigeria Warao Peoples in

Venezuela etc) bull Some great successes (Placer Dome Care project

mining and HIVAIDS 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

waynewaynedunncom

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

interestsobjectives overlap

waynewaynedunncom

SDCSR Implementation Challenges

more than a warm fuzzy issue Spending isnrsquot the answer

Plan

Framework

System

Results

Solving social problems Objectives

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Beyond Beads and Trinkets ndash BC Mining Review

A lsquohow torsquo article on mining and CSR

Wayne Dunn

BP Venezuela Indigenous Relations ndash Meeting the Challenge Responsibly and Sustainably

Situational assessment and strategic plan for BP Venezuela Authorized for release by BP

Wayne Dunn

Cameco Community Relations Report

Situational assessment and management strategy Authorized for release by Cameco

Wayne Dunn

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author Beyond Beads lsquon Trinkets A systematic approach to managing community relations

A conference paper describing a systematic approach to community relations management helping companies to methodically develop mutually beneficial relationships with local communities and interests (this is one of the earliest papers on this subject ndash written in 1998)

Wayne Dunn

The costs of conflict with local communities in the extractive industry

Analysis of the cost of community conflicts in the Extractive Sector

Rachel Davis and Daniel M Franks

Creating Shared Value

Harvard Business Review interview with Michael Porter

Video

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Social License Its all about value

Discussion on Social License and shareholder Value

Wayne Dunn

Its about Development Commentary on the CIDAMining Company issue

Wayne Dunn

Integrating corporate strategy and social responsibilitymdashmarket returns from stakeholder engagement

Discussion and analysis on market returns on stakeholder engagement

Witold J Henisz Sinziana Dorobantu and Lite J Narty

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

McGill Reporter ndash Four Burning Questions Wayne Dunn on CSR

Discussion on CSR Wayne Dunn

Miningrsquos contribution to sustainable development ndashan overview

Discussion paper prepared by the International Council on Mining and Metals

Millennium Development Goals

United Nations

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Mining and Agriculture Development

A short lsquohow torsquo guide for mining projects to engage with the local agriculture sector

Al Hingston

PDSA Social Value Brochure

Brochure on social value created by Placer Dome South Africa

Placer Dome

The Value of Social License

Opinion piece published in Northern Miner

Wayne Dunn

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Golden Opportunity When a Canadian multinational laid off hundreds of gold miners in South Africa it went many extra miles to help them get back on their feet

Stanford Business School Case Study on Placer Dome in South Africa

Wayne Dunn

The Changing Resource Development Paradigm Maximizing Sustainable Local Benefits from Resource Development

Strategic thought piece prepared for the government of British Columbia Canada

Wayne Dunn

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

The Disappearing Barriers Between Business And Non-profits Are Driving Innovation

Discussion paper

Katherine Pikus

When Condoms are not enough

World Bank staff magazine article on Placer Dome and South African mining industryrsquos work with HIVAIDS

Craig Andrews

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

MINING AND LOCAL ECONOMIC DEVELOPMENT IN PAPUA NEW GUINEA Preliminary Research on a Potential Pilot Project in Porgera and Lihir

Strategic research and action plan on mining and local economic development in Papua New Guinea prepared for the World Bank

Wayne Dunn

waynewaynedunncom

What we covered

We 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) Publicprivatecivil society collaboration ndash case study

and discussion (CIDA and Mining Companies) Open discussion on topics of interest (time permitting)

waynewaynedunncom

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 howwhy 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

waynewaynedunncom

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 howwhy 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

waynewaynedunncom

Alignment around Shared Value For shareholders For Communities For People For Governments

Private Sector Contributions To International Development

Remember

  • Private Sector Contributions To International Development
  • Session Objectives
  • Map of the morning How we will try to meet the objectives
  • Slide Number 4
  • What is ODA and FDI
  • What is ODA and FDI
  • Why discuss Private Sector Contribution anyway
  • FDIBusiness Outcomes
  • Intention and Strategy Make a Difference
  • Why does the private sector care
  • Community Consultation and Value
  • Itrsquos Real Money
  • CSR is a Value Strategy
  • Social License Failures cost
  • Why is CSR happening
  • The Mining World Has Changed
  • CSR is a complicated space
  • CSR amp Social License
  • Role of business is changing (click image to play video)
  • Case Studies (of successes)
  • Slide Number 21
  • Uranium Industry in Northern Saskatchewan
  • Challenging area
  • Challenging Times
  • Cameco in 1998
  • Cameco in Northern Saskatchewan (2010)
  • So how did Cameco and the industry do it
  • Placer Dome South Africa
  • Slide Number 29
  • Background
  • Background (cont)
  • Families amp Communities must benefit from mining
  • The Care Project
  • Implications
  • Slide Number 35
  • The Initial 4-Step Plan
  • Reality was different than we expected
  • Reality was different than expected
  • Meeting the challenges
  • TheProcess
  • Some results
  • Chicken raising business
  • Furniture making
  • Unique training programs
  • Rice farming in Mozambique
  • Spaza (convenience) shop
  • And the business value ishellip
  • Slide Number 48
  • What was in it for Placer Dome
  • And then there is HIVAIDS
  • HIVAIDS Facts (in 2000)
  • HIVAIDS Impact
  • HIVAIDS and Gold Mining
  • HIVAIDS Programming
  • Minesite Program
  • Minesite Program
  • Current Community Program
  • Community Mobile Clinic
  • And when HIV prevention doesnrsquot work
  • Industry Home Based Care
  • Home Based Care
  • INDUSTRY HOME BASED CARE RESULTS(Year One)
  • Overview of Placer Dome AIDS Programming
  • Slide Number 64
  • HIVAIDS and Rural Areas
  • HIVAIDS and Rural Areas
  • Reputational Results for Placer Dome
  • Where to next
  • Planned Program
  • Care Positive Summary
  • Andhellip
  • MDG Impacts of Placer Dome in South Africa
  • One thing leads to another
  • PNG HIVAIDS
  • PNG Outcomes (or outputs ndash Irsquom never sure)
  • Slide Number 76
  • PNG AIDS mission to South Africa
  • MDG Impacts of PNG HIVAIDS work
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • MDG Impacts of Eldorado Gold
  • Underwater Logging in Ghana
  • Private Sector and International Development
  • Group Exercise
  • Slide Number 87
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • What we covered
  • Session Objectives
  • Session Objectives
  • Remember
Page 67: Private Sector Contributions To International Development – McGill Executive Education Program Lecture

waynewaynedunncom

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 CSREthical

Project Award (2004) Numerous other awards Stanford Case Study

waynewaynedunncom Slide 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 69

Planned Program

Care Positive Integrate the Home Based Care

project with the Care process and launch as a fee for service based program to address the social and 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

Care Process

+

Home Based Care

=

Care Positive

waynewaynedunncom Slide 70

Care Positive Summary

waynewaynedunncom

Andhellip 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 $100000 and considerable reputational capital into them Industry went forward with modified HIVAIDS

programming but huge developmental impacts were lost

waynewaynedunncom Slide 72

MDG Impacts of Placer Dome in South Africa

1 Poverty and hunger 2 Some impact on primary education (School

feeding program) 3 Promote gender equality and empower women 4 Reduce child mortality 5 Improve maternal health 6 Combat HIVAIDS malaria and other diseass 7 Ensure environmental sustainability 8 Develop a global partnership for development

(Placer Dome CIDA Civil Society NGOs)

waynewaynedunncom

One thing leads to another

World Bank observed how Placer Domersquos leadership on HIVAIDS 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

waynewaynedunncom

PNG HIVAIDS Scoping mission to

determine what might be done and how Enthusiastic interest from

industry government multi-laterals (WHO UNAIDS World Banketc) ODA (AusAID) CIDA partnered with Place Dome to develop an

HIVAIDS strategy for PNG that integrated industry public sector civil society and international community

waynewaynedunncom

PNG Outcomes (or outputs ndash Irsquom never sure) Partnership with Mining

Industry Civil Society WHO UNAIDS UNDP World Bank PNG AIDS AusAID Oil Palm Industry etc National workshop on

HIVAIDS and publicprivate partnerships SouthSouth Collaboration

Industry government civil society international community study trip to South Africa

waynewaynedunncom

waynewaynedunncom

PNG AIDS mission to South Africa

waynewaynedunncom Slide 78

MDG Impacts of PNG HIVAIDS work

1 Poverty and hunger (nutritional supplements) 2 Some impact on primary education (peripheral) 3 Promote gender equality and empower women 4 Reduce child mortality 5 Improve maternal health 6 Combat HIVAIDS malaria and other diseass 7 Ensure environmental sustainability 8 Develop a global partnership for development

(Placer Dome CIDA Civil Society NGOs)

waynewaynedunncom

Eldorado Gold in Turkey

Major gold find in WestCentral Turkey No successful

mining project launched in decades Eurogold project

built launched and halted by community action in late 1990s ndash still mothballed

UsakKislidag Minesite

Eurogold site

waynewaynedunncom

Eldorado Gold in Turkey

Isolated rural area Nearly half of nearby

communities opposed to mine development Agriculture primary

economic activity in rural communities ndash smallmicro family farms

waynewaynedunncom

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

waynewaynedunncom

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 $075 to $1325 Opened second mine in Turkey

bull Able to deal with controversial watershed issues after relationship success in Usak

waynewaynedunncom Slide 83

MDG Impacts of Eldorado Gold

1 Poverty and hunger (minimal) 2 Some impact on primary education (peripheral) 3 Promote gender equality and empower women 4 Reduce child mortality 5 Improve maternal health 6 Combat HIVAIDS malaria and other diseass 7 Ensure environmental sustainability 8 Develop a global partnership for development

(Placer Dome CIDA Civil Society NGOs)

waynewaynedunncom

Underwater Logging in Ghana

waynewaynedunncom

Private Sector and International Development

Private sector especially resource extraction has a very mixed record bull Some horrendous disasters (Nigeria Warao Peoples in

Venezuela etc) bull Some great successes (Placer Dome Care project

mining and HIVAIDS 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

waynewaynedunncom

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

interestsobjectives overlap

waynewaynedunncom

SDCSR Implementation Challenges

more than a warm fuzzy issue Spending isnrsquot the answer

Plan

Framework

System

Results

Solving social problems Objectives

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Beyond Beads and Trinkets ndash BC Mining Review

A lsquohow torsquo article on mining and CSR

Wayne Dunn

BP Venezuela Indigenous Relations ndash Meeting the Challenge Responsibly and Sustainably

Situational assessment and strategic plan for BP Venezuela Authorized for release by BP

Wayne Dunn

Cameco Community Relations Report

Situational assessment and management strategy Authorized for release by Cameco

Wayne Dunn

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author Beyond Beads lsquon Trinkets A systematic approach to managing community relations

A conference paper describing a systematic approach to community relations management helping companies to methodically develop mutually beneficial relationships with local communities and interests (this is one of the earliest papers on this subject ndash written in 1998)

Wayne Dunn

The costs of conflict with local communities in the extractive industry

Analysis of the cost of community conflicts in the Extractive Sector

Rachel Davis and Daniel M Franks

Creating Shared Value

Harvard Business Review interview with Michael Porter

Video

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Social License Its all about value

Discussion on Social License and shareholder Value

Wayne Dunn

Its about Development Commentary on the CIDAMining Company issue

Wayne Dunn

Integrating corporate strategy and social responsibilitymdashmarket returns from stakeholder engagement

Discussion and analysis on market returns on stakeholder engagement

Witold J Henisz Sinziana Dorobantu and Lite J Narty

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

McGill Reporter ndash Four Burning Questions Wayne Dunn on CSR

Discussion on CSR Wayne Dunn

Miningrsquos contribution to sustainable development ndashan overview

Discussion paper prepared by the International Council on Mining and Metals

Millennium Development Goals

United Nations

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Mining and Agriculture Development

A short lsquohow torsquo guide for mining projects to engage with the local agriculture sector

Al Hingston

PDSA Social Value Brochure

Brochure on social value created by Placer Dome South Africa

Placer Dome

The Value of Social License

Opinion piece published in Northern Miner

Wayne Dunn

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Golden Opportunity When a Canadian multinational laid off hundreds of gold miners in South Africa it went many extra miles to help them get back on their feet

Stanford Business School Case Study on Placer Dome in South Africa

Wayne Dunn

The Changing Resource Development Paradigm Maximizing Sustainable Local Benefits from Resource Development

Strategic thought piece prepared for the government of British Columbia Canada

Wayne Dunn

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

The Disappearing Barriers Between Business And Non-profits Are Driving Innovation

Discussion paper

Katherine Pikus

When Condoms are not enough

World Bank staff magazine article on Placer Dome and South African mining industryrsquos work with HIVAIDS

Craig Andrews

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

MINING AND LOCAL ECONOMIC DEVELOPMENT IN PAPUA NEW GUINEA Preliminary Research on a Potential Pilot Project in Porgera and Lihir

Strategic research and action plan on mining and local economic development in Papua New Guinea prepared for the World Bank

Wayne Dunn

waynewaynedunncom

What we covered

We 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) Publicprivatecivil society collaboration ndash case study

and discussion (CIDA and Mining Companies) Open discussion on topics of interest (time permitting)

waynewaynedunncom

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 howwhy 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

waynewaynedunncom

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 howwhy 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

waynewaynedunncom

Alignment around Shared Value For shareholders For Communities For People For Governments

Private Sector Contributions To International Development

Remember

  • Private Sector Contributions To International Development
  • Session Objectives
  • Map of the morning How we will try to meet the objectives
  • Slide Number 4
  • What is ODA and FDI
  • What is ODA and FDI
  • Why discuss Private Sector Contribution anyway
  • FDIBusiness Outcomes
  • Intention and Strategy Make a Difference
  • Why does the private sector care
  • Community Consultation and Value
  • Itrsquos Real Money
  • CSR is a Value Strategy
  • Social License Failures cost
  • Why is CSR happening
  • The Mining World Has Changed
  • CSR is a complicated space
  • CSR amp Social License
  • Role of business is changing (click image to play video)
  • Case Studies (of successes)
  • Slide Number 21
  • Uranium Industry in Northern Saskatchewan
  • Challenging area
  • Challenging Times
  • Cameco in 1998
  • Cameco in Northern Saskatchewan (2010)
  • So how did Cameco and the industry do it
  • Placer Dome South Africa
  • Slide Number 29
  • Background
  • Background (cont)
  • Families amp Communities must benefit from mining
  • The Care Project
  • Implications
  • Slide Number 35
  • The Initial 4-Step Plan
  • Reality was different than we expected
  • Reality was different than expected
  • Meeting the challenges
  • TheProcess
  • Some results
  • Chicken raising business
  • Furniture making
  • Unique training programs
  • Rice farming in Mozambique
  • Spaza (convenience) shop
  • And the business value ishellip
  • Slide Number 48
  • What was in it for Placer Dome
  • And then there is HIVAIDS
  • HIVAIDS Facts (in 2000)
  • HIVAIDS Impact
  • HIVAIDS and Gold Mining
  • HIVAIDS Programming
  • Minesite Program
  • Minesite Program
  • Current Community Program
  • Community Mobile Clinic
  • And when HIV prevention doesnrsquot work
  • Industry Home Based Care
  • Home Based Care
  • INDUSTRY HOME BASED CARE RESULTS(Year One)
  • Overview of Placer Dome AIDS Programming
  • Slide Number 64
  • HIVAIDS and Rural Areas
  • HIVAIDS and Rural Areas
  • Reputational Results for Placer Dome
  • Where to next
  • Planned Program
  • Care Positive Summary
  • Andhellip
  • MDG Impacts of Placer Dome in South Africa
  • One thing leads to another
  • PNG HIVAIDS
  • PNG Outcomes (or outputs ndash Irsquom never sure)
  • Slide Number 76
  • PNG AIDS mission to South Africa
  • MDG Impacts of PNG HIVAIDS work
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • MDG Impacts of Eldorado Gold
  • Underwater Logging in Ghana
  • Private Sector and International Development
  • Group Exercise
  • Slide Number 87
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • What we covered
  • Session Objectives
  • Session Objectives
  • Remember
Page 68: Private Sector Contributions To International Development – McGill Executive Education Program Lecture

waynewaynedunncom Slide 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 69

Planned Program

Care Positive Integrate the Home Based Care

project with the Care process and launch as a fee for service based program to address the social and 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

Care Process

+

Home Based Care

=

Care Positive

waynewaynedunncom Slide 70

Care Positive Summary

waynewaynedunncom

Andhellip 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 $100000 and considerable reputational capital into them Industry went forward with modified HIVAIDS

programming but huge developmental impacts were lost

waynewaynedunncom Slide 72

MDG Impacts of Placer Dome in South Africa

1 Poverty and hunger 2 Some impact on primary education (School

feeding program) 3 Promote gender equality and empower women 4 Reduce child mortality 5 Improve maternal health 6 Combat HIVAIDS malaria and other diseass 7 Ensure environmental sustainability 8 Develop a global partnership for development

(Placer Dome CIDA Civil Society NGOs)

waynewaynedunncom

One thing leads to another

World Bank observed how Placer Domersquos leadership on HIVAIDS 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

waynewaynedunncom

PNG HIVAIDS Scoping mission to

determine what might be done and how Enthusiastic interest from

industry government multi-laterals (WHO UNAIDS World Banketc) ODA (AusAID) CIDA partnered with Place Dome to develop an

HIVAIDS strategy for PNG that integrated industry public sector civil society and international community

waynewaynedunncom

PNG Outcomes (or outputs ndash Irsquom never sure) Partnership with Mining

Industry Civil Society WHO UNAIDS UNDP World Bank PNG AIDS AusAID Oil Palm Industry etc National workshop on

HIVAIDS and publicprivate partnerships SouthSouth Collaboration

Industry government civil society international community study trip to South Africa

waynewaynedunncom

waynewaynedunncom

PNG AIDS mission to South Africa

waynewaynedunncom Slide 78

MDG Impacts of PNG HIVAIDS work

1 Poverty and hunger (nutritional supplements) 2 Some impact on primary education (peripheral) 3 Promote gender equality and empower women 4 Reduce child mortality 5 Improve maternal health 6 Combat HIVAIDS malaria and other diseass 7 Ensure environmental sustainability 8 Develop a global partnership for development

(Placer Dome CIDA Civil Society NGOs)

waynewaynedunncom

Eldorado Gold in Turkey

Major gold find in WestCentral Turkey No successful

mining project launched in decades Eurogold project

built launched and halted by community action in late 1990s ndash still mothballed

UsakKislidag Minesite

Eurogold site

waynewaynedunncom

Eldorado Gold in Turkey

Isolated rural area Nearly half of nearby

communities opposed to mine development Agriculture primary

economic activity in rural communities ndash smallmicro family farms

waynewaynedunncom

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

waynewaynedunncom

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 $075 to $1325 Opened second mine in Turkey

bull Able to deal with controversial watershed issues after relationship success in Usak

waynewaynedunncom Slide 83

MDG Impacts of Eldorado Gold

1 Poverty and hunger (minimal) 2 Some impact on primary education (peripheral) 3 Promote gender equality and empower women 4 Reduce child mortality 5 Improve maternal health 6 Combat HIVAIDS malaria and other diseass 7 Ensure environmental sustainability 8 Develop a global partnership for development

(Placer Dome CIDA Civil Society NGOs)

waynewaynedunncom

Underwater Logging in Ghana

waynewaynedunncom

Private Sector and International Development

Private sector especially resource extraction has a very mixed record bull Some horrendous disasters (Nigeria Warao Peoples in

Venezuela etc) bull Some great successes (Placer Dome Care project

mining and HIVAIDS 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

waynewaynedunncom

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

interestsobjectives overlap

waynewaynedunncom

SDCSR Implementation Challenges

more than a warm fuzzy issue Spending isnrsquot the answer

Plan

Framework

System

Results

Solving social problems Objectives

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Beyond Beads and Trinkets ndash BC Mining Review

A lsquohow torsquo article on mining and CSR

Wayne Dunn

BP Venezuela Indigenous Relations ndash Meeting the Challenge Responsibly and Sustainably

Situational assessment and strategic plan for BP Venezuela Authorized for release by BP

Wayne Dunn

Cameco Community Relations Report

Situational assessment and management strategy Authorized for release by Cameco

Wayne Dunn

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author Beyond Beads lsquon Trinkets A systematic approach to managing community relations

A conference paper describing a systematic approach to community relations management helping companies to methodically develop mutually beneficial relationships with local communities and interests (this is one of the earliest papers on this subject ndash written in 1998)

Wayne Dunn

The costs of conflict with local communities in the extractive industry

Analysis of the cost of community conflicts in the Extractive Sector

Rachel Davis and Daniel M Franks

Creating Shared Value

Harvard Business Review interview with Michael Porter

Video

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Social License Its all about value

Discussion on Social License and shareholder Value

Wayne Dunn

Its about Development Commentary on the CIDAMining Company issue

Wayne Dunn

Integrating corporate strategy and social responsibilitymdashmarket returns from stakeholder engagement

Discussion and analysis on market returns on stakeholder engagement

Witold J Henisz Sinziana Dorobantu and Lite J Narty

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

McGill Reporter ndash Four Burning Questions Wayne Dunn on CSR

Discussion on CSR Wayne Dunn

Miningrsquos contribution to sustainable development ndashan overview

Discussion paper prepared by the International Council on Mining and Metals

Millennium Development Goals

United Nations

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Mining and Agriculture Development

A short lsquohow torsquo guide for mining projects to engage with the local agriculture sector

Al Hingston

PDSA Social Value Brochure

Brochure on social value created by Placer Dome South Africa

Placer Dome

The Value of Social License

Opinion piece published in Northern Miner

Wayne Dunn

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Golden Opportunity When a Canadian multinational laid off hundreds of gold miners in South Africa it went many extra miles to help them get back on their feet

Stanford Business School Case Study on Placer Dome in South Africa

Wayne Dunn

The Changing Resource Development Paradigm Maximizing Sustainable Local Benefits from Resource Development

Strategic thought piece prepared for the government of British Columbia Canada

Wayne Dunn

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

The Disappearing Barriers Between Business And Non-profits Are Driving Innovation

Discussion paper

Katherine Pikus

When Condoms are not enough

World Bank staff magazine article on Placer Dome and South African mining industryrsquos work with HIVAIDS

Craig Andrews

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

MINING AND LOCAL ECONOMIC DEVELOPMENT IN PAPUA NEW GUINEA Preliminary Research on a Potential Pilot Project in Porgera and Lihir

Strategic research and action plan on mining and local economic development in Papua New Guinea prepared for the World Bank

Wayne Dunn

waynewaynedunncom

What we covered

We 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) Publicprivatecivil society collaboration ndash case study

and discussion (CIDA and Mining Companies) Open discussion on topics of interest (time permitting)

waynewaynedunncom

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 howwhy 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

waynewaynedunncom

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 howwhy 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

waynewaynedunncom

Alignment around Shared Value For shareholders For Communities For People For Governments

Private Sector Contributions To International Development

Remember

  • Private Sector Contributions To International Development
  • Session Objectives
  • Map of the morning How we will try to meet the objectives
  • Slide Number 4
  • What is ODA and FDI
  • What is ODA and FDI
  • Why discuss Private Sector Contribution anyway
  • FDIBusiness Outcomes
  • Intention and Strategy Make a Difference
  • Why does the private sector care
  • Community Consultation and Value
  • Itrsquos Real Money
  • CSR is a Value Strategy
  • Social License Failures cost
  • Why is CSR happening
  • The Mining World Has Changed
  • CSR is a complicated space
  • CSR amp Social License
  • Role of business is changing (click image to play video)
  • Case Studies (of successes)
  • Slide Number 21
  • Uranium Industry in Northern Saskatchewan
  • Challenging area
  • Challenging Times
  • Cameco in 1998
  • Cameco in Northern Saskatchewan (2010)
  • So how did Cameco and the industry do it
  • Placer Dome South Africa
  • Slide Number 29
  • Background
  • Background (cont)
  • Families amp Communities must benefit from mining
  • The Care Project
  • Implications
  • Slide Number 35
  • The Initial 4-Step Plan
  • Reality was different than we expected
  • Reality was different than expected
  • Meeting the challenges
  • TheProcess
  • Some results
  • Chicken raising business
  • Furniture making
  • Unique training programs
  • Rice farming in Mozambique
  • Spaza (convenience) shop
  • And the business value ishellip
  • Slide Number 48
  • What was in it for Placer Dome
  • And then there is HIVAIDS
  • HIVAIDS Facts (in 2000)
  • HIVAIDS Impact
  • HIVAIDS and Gold Mining
  • HIVAIDS Programming
  • Minesite Program
  • Minesite Program
  • Current Community Program
  • Community Mobile Clinic
  • And when HIV prevention doesnrsquot work
  • Industry Home Based Care
  • Home Based Care
  • INDUSTRY HOME BASED CARE RESULTS(Year One)
  • Overview of Placer Dome AIDS Programming
  • Slide Number 64
  • HIVAIDS and Rural Areas
  • HIVAIDS and Rural Areas
  • Reputational Results for Placer Dome
  • Where to next
  • Planned Program
  • Care Positive Summary
  • Andhellip
  • MDG Impacts of Placer Dome in South Africa
  • One thing leads to another
  • PNG HIVAIDS
  • PNG Outcomes (or outputs ndash Irsquom never sure)
  • Slide Number 76
  • PNG AIDS mission to South Africa
  • MDG Impacts of PNG HIVAIDS work
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • MDG Impacts of Eldorado Gold
  • Underwater Logging in Ghana
  • Private Sector and International Development
  • Group Exercise
  • Slide Number 87
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • What we covered
  • Session Objectives
  • Session Objectives
  • Remember
Page 69: Private Sector Contributions To International Development – McGill Executive Education Program Lecture

Slide 69

Planned Program

Care Positive Integrate the Home Based Care

project with the Care process and launch as a fee for service based program to address the social and 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

Care Process

+

Home Based Care

=

Care Positive

waynewaynedunncom Slide 70

Care Positive Summary

waynewaynedunncom

Andhellip 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 $100000 and considerable reputational capital into them Industry went forward with modified HIVAIDS

programming but huge developmental impacts were lost

waynewaynedunncom Slide 72

MDG Impacts of Placer Dome in South Africa

1 Poverty and hunger 2 Some impact on primary education (School

feeding program) 3 Promote gender equality and empower women 4 Reduce child mortality 5 Improve maternal health 6 Combat HIVAIDS malaria and other diseass 7 Ensure environmental sustainability 8 Develop a global partnership for development

(Placer Dome CIDA Civil Society NGOs)

waynewaynedunncom

One thing leads to another

World Bank observed how Placer Domersquos leadership on HIVAIDS 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

waynewaynedunncom

PNG HIVAIDS Scoping mission to

determine what might be done and how Enthusiastic interest from

industry government multi-laterals (WHO UNAIDS World Banketc) ODA (AusAID) CIDA partnered with Place Dome to develop an

HIVAIDS strategy for PNG that integrated industry public sector civil society and international community

waynewaynedunncom

PNG Outcomes (or outputs ndash Irsquom never sure) Partnership with Mining

Industry Civil Society WHO UNAIDS UNDP World Bank PNG AIDS AusAID Oil Palm Industry etc National workshop on

HIVAIDS and publicprivate partnerships SouthSouth Collaboration

Industry government civil society international community study trip to South Africa

waynewaynedunncom

waynewaynedunncom

PNG AIDS mission to South Africa

waynewaynedunncom Slide 78

MDG Impacts of PNG HIVAIDS work

1 Poverty and hunger (nutritional supplements) 2 Some impact on primary education (peripheral) 3 Promote gender equality and empower women 4 Reduce child mortality 5 Improve maternal health 6 Combat HIVAIDS malaria and other diseass 7 Ensure environmental sustainability 8 Develop a global partnership for development

(Placer Dome CIDA Civil Society NGOs)

waynewaynedunncom

Eldorado Gold in Turkey

Major gold find in WestCentral Turkey No successful

mining project launched in decades Eurogold project

built launched and halted by community action in late 1990s ndash still mothballed

UsakKislidag Minesite

Eurogold site

waynewaynedunncom

Eldorado Gold in Turkey

Isolated rural area Nearly half of nearby

communities opposed to mine development Agriculture primary

economic activity in rural communities ndash smallmicro family farms

waynewaynedunncom

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

waynewaynedunncom

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 $075 to $1325 Opened second mine in Turkey

bull Able to deal with controversial watershed issues after relationship success in Usak

waynewaynedunncom Slide 83

MDG Impacts of Eldorado Gold

1 Poverty and hunger (minimal) 2 Some impact on primary education (peripheral) 3 Promote gender equality and empower women 4 Reduce child mortality 5 Improve maternal health 6 Combat HIVAIDS malaria and other diseass 7 Ensure environmental sustainability 8 Develop a global partnership for development

(Placer Dome CIDA Civil Society NGOs)

waynewaynedunncom

Underwater Logging in Ghana

waynewaynedunncom

Private Sector and International Development

Private sector especially resource extraction has a very mixed record bull Some horrendous disasters (Nigeria Warao Peoples in

Venezuela etc) bull Some great successes (Placer Dome Care project

mining and HIVAIDS 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

waynewaynedunncom

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

interestsobjectives overlap

waynewaynedunncom

SDCSR Implementation Challenges

more than a warm fuzzy issue Spending isnrsquot the answer

Plan

Framework

System

Results

Solving social problems Objectives

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Beyond Beads and Trinkets ndash BC Mining Review

A lsquohow torsquo article on mining and CSR

Wayne Dunn

BP Venezuela Indigenous Relations ndash Meeting the Challenge Responsibly and Sustainably

Situational assessment and strategic plan for BP Venezuela Authorized for release by BP

Wayne Dunn

Cameco Community Relations Report

Situational assessment and management strategy Authorized for release by Cameco

Wayne Dunn

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author Beyond Beads lsquon Trinkets A systematic approach to managing community relations

A conference paper describing a systematic approach to community relations management helping companies to methodically develop mutually beneficial relationships with local communities and interests (this is one of the earliest papers on this subject ndash written in 1998)

Wayne Dunn

The costs of conflict with local communities in the extractive industry

Analysis of the cost of community conflicts in the Extractive Sector

Rachel Davis and Daniel M Franks

Creating Shared Value

Harvard Business Review interview with Michael Porter

Video

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Social License Its all about value

Discussion on Social License and shareholder Value

Wayne Dunn

Its about Development Commentary on the CIDAMining Company issue

Wayne Dunn

Integrating corporate strategy and social responsibilitymdashmarket returns from stakeholder engagement

Discussion and analysis on market returns on stakeholder engagement

Witold J Henisz Sinziana Dorobantu and Lite J Narty

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

McGill Reporter ndash Four Burning Questions Wayne Dunn on CSR

Discussion on CSR Wayne Dunn

Miningrsquos contribution to sustainable development ndashan overview

Discussion paper prepared by the International Council on Mining and Metals

Millennium Development Goals

United Nations

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Mining and Agriculture Development

A short lsquohow torsquo guide for mining projects to engage with the local agriculture sector

Al Hingston

PDSA Social Value Brochure

Brochure on social value created by Placer Dome South Africa

Placer Dome

The Value of Social License

Opinion piece published in Northern Miner

Wayne Dunn

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Golden Opportunity When a Canadian multinational laid off hundreds of gold miners in South Africa it went many extra miles to help them get back on their feet

Stanford Business School Case Study on Placer Dome in South Africa

Wayne Dunn

The Changing Resource Development Paradigm Maximizing Sustainable Local Benefits from Resource Development

Strategic thought piece prepared for the government of British Columbia Canada

Wayne Dunn

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

The Disappearing Barriers Between Business And Non-profits Are Driving Innovation

Discussion paper

Katherine Pikus

When Condoms are not enough

World Bank staff magazine article on Placer Dome and South African mining industryrsquos work with HIVAIDS

Craig Andrews

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

MINING AND LOCAL ECONOMIC DEVELOPMENT IN PAPUA NEW GUINEA Preliminary Research on a Potential Pilot Project in Porgera and Lihir

Strategic research and action plan on mining and local economic development in Papua New Guinea prepared for the World Bank

Wayne Dunn

waynewaynedunncom

What we covered

We 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) Publicprivatecivil society collaboration ndash case study

and discussion (CIDA and Mining Companies) Open discussion on topics of interest (time permitting)

waynewaynedunncom

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 howwhy 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

waynewaynedunncom

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 howwhy 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

waynewaynedunncom

Alignment around Shared Value For shareholders For Communities For People For Governments

Private Sector Contributions To International Development

Remember

  • Private Sector Contributions To International Development
  • Session Objectives
  • Map of the morning How we will try to meet the objectives
  • Slide Number 4
  • What is ODA and FDI
  • What is ODA and FDI
  • Why discuss Private Sector Contribution anyway
  • FDIBusiness Outcomes
  • Intention and Strategy Make a Difference
  • Why does the private sector care
  • Community Consultation and Value
  • Itrsquos Real Money
  • CSR is a Value Strategy
  • Social License Failures cost
  • Why is CSR happening
  • The Mining World Has Changed
  • CSR is a complicated space
  • CSR amp Social License
  • Role of business is changing (click image to play video)
  • Case Studies (of successes)
  • Slide Number 21
  • Uranium Industry in Northern Saskatchewan
  • Challenging area
  • Challenging Times
  • Cameco in 1998
  • Cameco in Northern Saskatchewan (2010)
  • So how did Cameco and the industry do it
  • Placer Dome South Africa
  • Slide Number 29
  • Background
  • Background (cont)
  • Families amp Communities must benefit from mining
  • The Care Project
  • Implications
  • Slide Number 35
  • The Initial 4-Step Plan
  • Reality was different than we expected
  • Reality was different than expected
  • Meeting the challenges
  • TheProcess
  • Some results
  • Chicken raising business
  • Furniture making
  • Unique training programs
  • Rice farming in Mozambique
  • Spaza (convenience) shop
  • And the business value ishellip
  • Slide Number 48
  • What was in it for Placer Dome
  • And then there is HIVAIDS
  • HIVAIDS Facts (in 2000)
  • HIVAIDS Impact
  • HIVAIDS and Gold Mining
  • HIVAIDS Programming
  • Minesite Program
  • Minesite Program
  • Current Community Program
  • Community Mobile Clinic
  • And when HIV prevention doesnrsquot work
  • Industry Home Based Care
  • Home Based Care
  • INDUSTRY HOME BASED CARE RESULTS(Year One)
  • Overview of Placer Dome AIDS Programming
  • Slide Number 64
  • HIVAIDS and Rural Areas
  • HIVAIDS and Rural Areas
  • Reputational Results for Placer Dome
  • Where to next
  • Planned Program
  • Care Positive Summary
  • Andhellip
  • MDG Impacts of Placer Dome in South Africa
  • One thing leads to another
  • PNG HIVAIDS
  • PNG Outcomes (or outputs ndash Irsquom never sure)
  • Slide Number 76
  • PNG AIDS mission to South Africa
  • MDG Impacts of PNG HIVAIDS work
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • MDG Impacts of Eldorado Gold
  • Underwater Logging in Ghana
  • Private Sector and International Development
  • Group Exercise
  • Slide Number 87
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • What we covered
  • Session Objectives
  • Session Objectives
  • Remember
Page 70: Private Sector Contributions To International Development – McGill Executive Education Program Lecture

waynewaynedunncom Slide 70

Care Positive Summary

waynewaynedunncom

Andhellip 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 $100000 and considerable reputational capital into them Industry went forward with modified HIVAIDS

programming but huge developmental impacts were lost

waynewaynedunncom Slide 72

MDG Impacts of Placer Dome in South Africa

1 Poverty and hunger 2 Some impact on primary education (School

feeding program) 3 Promote gender equality and empower women 4 Reduce child mortality 5 Improve maternal health 6 Combat HIVAIDS malaria and other diseass 7 Ensure environmental sustainability 8 Develop a global partnership for development

(Placer Dome CIDA Civil Society NGOs)

waynewaynedunncom

One thing leads to another

World Bank observed how Placer Domersquos leadership on HIVAIDS 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

waynewaynedunncom

PNG HIVAIDS Scoping mission to

determine what might be done and how Enthusiastic interest from

industry government multi-laterals (WHO UNAIDS World Banketc) ODA (AusAID) CIDA partnered with Place Dome to develop an

HIVAIDS strategy for PNG that integrated industry public sector civil society and international community

waynewaynedunncom

PNG Outcomes (or outputs ndash Irsquom never sure) Partnership with Mining

Industry Civil Society WHO UNAIDS UNDP World Bank PNG AIDS AusAID Oil Palm Industry etc National workshop on

HIVAIDS and publicprivate partnerships SouthSouth Collaboration

Industry government civil society international community study trip to South Africa

waynewaynedunncom

waynewaynedunncom

PNG AIDS mission to South Africa

waynewaynedunncom Slide 78

MDG Impacts of PNG HIVAIDS work

1 Poverty and hunger (nutritional supplements) 2 Some impact on primary education (peripheral) 3 Promote gender equality and empower women 4 Reduce child mortality 5 Improve maternal health 6 Combat HIVAIDS malaria and other diseass 7 Ensure environmental sustainability 8 Develop a global partnership for development

(Placer Dome CIDA Civil Society NGOs)

waynewaynedunncom

Eldorado Gold in Turkey

Major gold find in WestCentral Turkey No successful

mining project launched in decades Eurogold project

built launched and halted by community action in late 1990s ndash still mothballed

UsakKislidag Minesite

Eurogold site

waynewaynedunncom

Eldorado Gold in Turkey

Isolated rural area Nearly half of nearby

communities opposed to mine development Agriculture primary

economic activity in rural communities ndash smallmicro family farms

waynewaynedunncom

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

waynewaynedunncom

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 $075 to $1325 Opened second mine in Turkey

bull Able to deal with controversial watershed issues after relationship success in Usak

waynewaynedunncom Slide 83

MDG Impacts of Eldorado Gold

1 Poverty and hunger (minimal) 2 Some impact on primary education (peripheral) 3 Promote gender equality and empower women 4 Reduce child mortality 5 Improve maternal health 6 Combat HIVAIDS malaria and other diseass 7 Ensure environmental sustainability 8 Develop a global partnership for development

(Placer Dome CIDA Civil Society NGOs)

waynewaynedunncom

Underwater Logging in Ghana

waynewaynedunncom

Private Sector and International Development

Private sector especially resource extraction has a very mixed record bull Some horrendous disasters (Nigeria Warao Peoples in

Venezuela etc) bull Some great successes (Placer Dome Care project

mining and HIVAIDS 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

waynewaynedunncom

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

interestsobjectives overlap

waynewaynedunncom

SDCSR Implementation Challenges

more than a warm fuzzy issue Spending isnrsquot the answer

Plan

Framework

System

Results

Solving social problems Objectives

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Beyond Beads and Trinkets ndash BC Mining Review

A lsquohow torsquo article on mining and CSR

Wayne Dunn

BP Venezuela Indigenous Relations ndash Meeting the Challenge Responsibly and Sustainably

Situational assessment and strategic plan for BP Venezuela Authorized for release by BP

Wayne Dunn

Cameco Community Relations Report

Situational assessment and management strategy Authorized for release by Cameco

Wayne Dunn

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author Beyond Beads lsquon Trinkets A systematic approach to managing community relations

A conference paper describing a systematic approach to community relations management helping companies to methodically develop mutually beneficial relationships with local communities and interests (this is one of the earliest papers on this subject ndash written in 1998)

Wayne Dunn

The costs of conflict with local communities in the extractive industry

Analysis of the cost of community conflicts in the Extractive Sector

Rachel Davis and Daniel M Franks

Creating Shared Value

Harvard Business Review interview with Michael Porter

Video

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Social License Its all about value

Discussion on Social License and shareholder Value

Wayne Dunn

Its about Development Commentary on the CIDAMining Company issue

Wayne Dunn

Integrating corporate strategy and social responsibilitymdashmarket returns from stakeholder engagement

Discussion and analysis on market returns on stakeholder engagement

Witold J Henisz Sinziana Dorobantu and Lite J Narty

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

McGill Reporter ndash Four Burning Questions Wayne Dunn on CSR

Discussion on CSR Wayne Dunn

Miningrsquos contribution to sustainable development ndashan overview

Discussion paper prepared by the International Council on Mining and Metals

Millennium Development Goals

United Nations

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Mining and Agriculture Development

A short lsquohow torsquo guide for mining projects to engage with the local agriculture sector

Al Hingston

PDSA Social Value Brochure

Brochure on social value created by Placer Dome South Africa

Placer Dome

The Value of Social License

Opinion piece published in Northern Miner

Wayne Dunn

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Golden Opportunity When a Canadian multinational laid off hundreds of gold miners in South Africa it went many extra miles to help them get back on their feet

Stanford Business School Case Study on Placer Dome in South Africa

Wayne Dunn

The Changing Resource Development Paradigm Maximizing Sustainable Local Benefits from Resource Development

Strategic thought piece prepared for the government of British Columbia Canada

Wayne Dunn

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

The Disappearing Barriers Between Business And Non-profits Are Driving Innovation

Discussion paper

Katherine Pikus

When Condoms are not enough

World Bank staff magazine article on Placer Dome and South African mining industryrsquos work with HIVAIDS

Craig Andrews

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

MINING AND LOCAL ECONOMIC DEVELOPMENT IN PAPUA NEW GUINEA Preliminary Research on a Potential Pilot Project in Porgera and Lihir

Strategic research and action plan on mining and local economic development in Papua New Guinea prepared for the World Bank

Wayne Dunn

waynewaynedunncom

What we covered

We 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) Publicprivatecivil society collaboration ndash case study

and discussion (CIDA and Mining Companies) Open discussion on topics of interest (time permitting)

waynewaynedunncom

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 howwhy 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

waynewaynedunncom

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 howwhy 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

waynewaynedunncom

Alignment around Shared Value For shareholders For Communities For People For Governments

Private Sector Contributions To International Development

Remember

  • Private Sector Contributions To International Development
  • Session Objectives
  • Map of the morning How we will try to meet the objectives
  • Slide Number 4
  • What is ODA and FDI
  • What is ODA and FDI
  • Why discuss Private Sector Contribution anyway
  • FDIBusiness Outcomes
  • Intention and Strategy Make a Difference
  • Why does the private sector care
  • Community Consultation and Value
  • Itrsquos Real Money
  • CSR is a Value Strategy
  • Social License Failures cost
  • Why is CSR happening
  • The Mining World Has Changed
  • CSR is a complicated space
  • CSR amp Social License
  • Role of business is changing (click image to play video)
  • Case Studies (of successes)
  • Slide Number 21
  • Uranium Industry in Northern Saskatchewan
  • Challenging area
  • Challenging Times
  • Cameco in 1998
  • Cameco in Northern Saskatchewan (2010)
  • So how did Cameco and the industry do it
  • Placer Dome South Africa
  • Slide Number 29
  • Background
  • Background (cont)
  • Families amp Communities must benefit from mining
  • The Care Project
  • Implications
  • Slide Number 35
  • The Initial 4-Step Plan
  • Reality was different than we expected
  • Reality was different than expected
  • Meeting the challenges
  • TheProcess
  • Some results
  • Chicken raising business
  • Furniture making
  • Unique training programs
  • Rice farming in Mozambique
  • Spaza (convenience) shop
  • And the business value ishellip
  • Slide Number 48
  • What was in it for Placer Dome
  • And then there is HIVAIDS
  • HIVAIDS Facts (in 2000)
  • HIVAIDS Impact
  • HIVAIDS and Gold Mining
  • HIVAIDS Programming
  • Minesite Program
  • Minesite Program
  • Current Community Program
  • Community Mobile Clinic
  • And when HIV prevention doesnrsquot work
  • Industry Home Based Care
  • Home Based Care
  • INDUSTRY HOME BASED CARE RESULTS(Year One)
  • Overview of Placer Dome AIDS Programming
  • Slide Number 64
  • HIVAIDS and Rural Areas
  • HIVAIDS and Rural Areas
  • Reputational Results for Placer Dome
  • Where to next
  • Planned Program
  • Care Positive Summary
  • Andhellip
  • MDG Impacts of Placer Dome in South Africa
  • One thing leads to another
  • PNG HIVAIDS
  • PNG Outcomes (or outputs ndash Irsquom never sure)
  • Slide Number 76
  • PNG AIDS mission to South Africa
  • MDG Impacts of PNG HIVAIDS work
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • MDG Impacts of Eldorado Gold
  • Underwater Logging in Ghana
  • Private Sector and International Development
  • Group Exercise
  • Slide Number 87
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • What we covered
  • Session Objectives
  • Session Objectives
  • Remember
Page 71: Private Sector Contributions To International Development – McGill Executive Education Program Lecture

waynewaynedunncom

Andhellip 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 $100000 and considerable reputational capital into them Industry went forward with modified HIVAIDS

programming but huge developmental impacts were lost

waynewaynedunncom Slide 72

MDG Impacts of Placer Dome in South Africa

1 Poverty and hunger 2 Some impact on primary education (School

feeding program) 3 Promote gender equality and empower women 4 Reduce child mortality 5 Improve maternal health 6 Combat HIVAIDS malaria and other diseass 7 Ensure environmental sustainability 8 Develop a global partnership for development

(Placer Dome CIDA Civil Society NGOs)

waynewaynedunncom

One thing leads to another

World Bank observed how Placer Domersquos leadership on HIVAIDS 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

waynewaynedunncom

PNG HIVAIDS Scoping mission to

determine what might be done and how Enthusiastic interest from

industry government multi-laterals (WHO UNAIDS World Banketc) ODA (AusAID) CIDA partnered with Place Dome to develop an

HIVAIDS strategy for PNG that integrated industry public sector civil society and international community

waynewaynedunncom

PNG Outcomes (or outputs ndash Irsquom never sure) Partnership with Mining

Industry Civil Society WHO UNAIDS UNDP World Bank PNG AIDS AusAID Oil Palm Industry etc National workshop on

HIVAIDS and publicprivate partnerships SouthSouth Collaboration

Industry government civil society international community study trip to South Africa

waynewaynedunncom

waynewaynedunncom

PNG AIDS mission to South Africa

waynewaynedunncom Slide 78

MDG Impacts of PNG HIVAIDS work

1 Poverty and hunger (nutritional supplements) 2 Some impact on primary education (peripheral) 3 Promote gender equality and empower women 4 Reduce child mortality 5 Improve maternal health 6 Combat HIVAIDS malaria and other diseass 7 Ensure environmental sustainability 8 Develop a global partnership for development

(Placer Dome CIDA Civil Society NGOs)

waynewaynedunncom

Eldorado Gold in Turkey

Major gold find in WestCentral Turkey No successful

mining project launched in decades Eurogold project

built launched and halted by community action in late 1990s ndash still mothballed

UsakKislidag Minesite

Eurogold site

waynewaynedunncom

Eldorado Gold in Turkey

Isolated rural area Nearly half of nearby

communities opposed to mine development Agriculture primary

economic activity in rural communities ndash smallmicro family farms

waynewaynedunncom

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

waynewaynedunncom

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 $075 to $1325 Opened second mine in Turkey

bull Able to deal with controversial watershed issues after relationship success in Usak

waynewaynedunncom Slide 83

MDG Impacts of Eldorado Gold

1 Poverty and hunger (minimal) 2 Some impact on primary education (peripheral) 3 Promote gender equality and empower women 4 Reduce child mortality 5 Improve maternal health 6 Combat HIVAIDS malaria and other diseass 7 Ensure environmental sustainability 8 Develop a global partnership for development

(Placer Dome CIDA Civil Society NGOs)

waynewaynedunncom

Underwater Logging in Ghana

waynewaynedunncom

Private Sector and International Development

Private sector especially resource extraction has a very mixed record bull Some horrendous disasters (Nigeria Warao Peoples in

Venezuela etc) bull Some great successes (Placer Dome Care project

mining and HIVAIDS 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

waynewaynedunncom

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

interestsobjectives overlap

waynewaynedunncom

SDCSR Implementation Challenges

more than a warm fuzzy issue Spending isnrsquot the answer

Plan

Framework

System

Results

Solving social problems Objectives

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Beyond Beads and Trinkets ndash BC Mining Review

A lsquohow torsquo article on mining and CSR

Wayne Dunn

BP Venezuela Indigenous Relations ndash Meeting the Challenge Responsibly and Sustainably

Situational assessment and strategic plan for BP Venezuela Authorized for release by BP

Wayne Dunn

Cameco Community Relations Report

Situational assessment and management strategy Authorized for release by Cameco

Wayne Dunn

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author Beyond Beads lsquon Trinkets A systematic approach to managing community relations

A conference paper describing a systematic approach to community relations management helping companies to methodically develop mutually beneficial relationships with local communities and interests (this is one of the earliest papers on this subject ndash written in 1998)

Wayne Dunn

The costs of conflict with local communities in the extractive industry

Analysis of the cost of community conflicts in the Extractive Sector

Rachel Davis and Daniel M Franks

Creating Shared Value

Harvard Business Review interview with Michael Porter

Video

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Social License Its all about value

Discussion on Social License and shareholder Value

Wayne Dunn

Its about Development Commentary on the CIDAMining Company issue

Wayne Dunn

Integrating corporate strategy and social responsibilitymdashmarket returns from stakeholder engagement

Discussion and analysis on market returns on stakeholder engagement

Witold J Henisz Sinziana Dorobantu and Lite J Narty

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

McGill Reporter ndash Four Burning Questions Wayne Dunn on CSR

Discussion on CSR Wayne Dunn

Miningrsquos contribution to sustainable development ndashan overview

Discussion paper prepared by the International Council on Mining and Metals

Millennium Development Goals

United Nations

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Mining and Agriculture Development

A short lsquohow torsquo guide for mining projects to engage with the local agriculture sector

Al Hingston

PDSA Social Value Brochure

Brochure on social value created by Placer Dome South Africa

Placer Dome

The Value of Social License

Opinion piece published in Northern Miner

Wayne Dunn

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Golden Opportunity When a Canadian multinational laid off hundreds of gold miners in South Africa it went many extra miles to help them get back on their feet

Stanford Business School Case Study on Placer Dome in South Africa

Wayne Dunn

The Changing Resource Development Paradigm Maximizing Sustainable Local Benefits from Resource Development

Strategic thought piece prepared for the government of British Columbia Canada

Wayne Dunn

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

The Disappearing Barriers Between Business And Non-profits Are Driving Innovation

Discussion paper

Katherine Pikus

When Condoms are not enough

World Bank staff magazine article on Placer Dome and South African mining industryrsquos work with HIVAIDS

Craig Andrews

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

MINING AND LOCAL ECONOMIC DEVELOPMENT IN PAPUA NEW GUINEA Preliminary Research on a Potential Pilot Project in Porgera and Lihir

Strategic research and action plan on mining and local economic development in Papua New Guinea prepared for the World Bank

Wayne Dunn

waynewaynedunncom

What we covered

We 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) Publicprivatecivil society collaboration ndash case study

and discussion (CIDA and Mining Companies) Open discussion on topics of interest (time permitting)

waynewaynedunncom

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 howwhy 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

waynewaynedunncom

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 howwhy 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

waynewaynedunncom

Alignment around Shared Value For shareholders For Communities For People For Governments

Private Sector Contributions To International Development

Remember

  • Private Sector Contributions To International Development
  • Session Objectives
  • Map of the morning How we will try to meet the objectives
  • Slide Number 4
  • What is ODA and FDI
  • What is ODA and FDI
  • Why discuss Private Sector Contribution anyway
  • FDIBusiness Outcomes
  • Intention and Strategy Make a Difference
  • Why does the private sector care
  • Community Consultation and Value
  • Itrsquos Real Money
  • CSR is a Value Strategy
  • Social License Failures cost
  • Why is CSR happening
  • The Mining World Has Changed
  • CSR is a complicated space
  • CSR amp Social License
  • Role of business is changing (click image to play video)
  • Case Studies (of successes)
  • Slide Number 21
  • Uranium Industry in Northern Saskatchewan
  • Challenging area
  • Challenging Times
  • Cameco in 1998
  • Cameco in Northern Saskatchewan (2010)
  • So how did Cameco and the industry do it
  • Placer Dome South Africa
  • Slide Number 29
  • Background
  • Background (cont)
  • Families amp Communities must benefit from mining
  • The Care Project
  • Implications
  • Slide Number 35
  • The Initial 4-Step Plan
  • Reality was different than we expected
  • Reality was different than expected
  • Meeting the challenges
  • TheProcess
  • Some results
  • Chicken raising business
  • Furniture making
  • Unique training programs
  • Rice farming in Mozambique
  • Spaza (convenience) shop
  • And the business value ishellip
  • Slide Number 48
  • What was in it for Placer Dome
  • And then there is HIVAIDS
  • HIVAIDS Facts (in 2000)
  • HIVAIDS Impact
  • HIVAIDS and Gold Mining
  • HIVAIDS Programming
  • Minesite Program
  • Minesite Program
  • Current Community Program
  • Community Mobile Clinic
  • And when HIV prevention doesnrsquot work
  • Industry Home Based Care
  • Home Based Care
  • INDUSTRY HOME BASED CARE RESULTS(Year One)
  • Overview of Placer Dome AIDS Programming
  • Slide Number 64
  • HIVAIDS and Rural Areas
  • HIVAIDS and Rural Areas
  • Reputational Results for Placer Dome
  • Where to next
  • Planned Program
  • Care Positive Summary
  • Andhellip
  • MDG Impacts of Placer Dome in South Africa
  • One thing leads to another
  • PNG HIVAIDS
  • PNG Outcomes (or outputs ndash Irsquom never sure)
  • Slide Number 76
  • PNG AIDS mission to South Africa
  • MDG Impacts of PNG HIVAIDS work
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • MDG Impacts of Eldorado Gold
  • Underwater Logging in Ghana
  • Private Sector and International Development
  • Group Exercise
  • Slide Number 87
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • What we covered
  • Session Objectives
  • Session Objectives
  • Remember
Page 72: Private Sector Contributions To International Development – McGill Executive Education Program Lecture

waynewaynedunncom Slide 72

MDG Impacts of Placer Dome in South Africa

1 Poverty and hunger 2 Some impact on primary education (School

feeding program) 3 Promote gender equality and empower women 4 Reduce child mortality 5 Improve maternal health 6 Combat HIVAIDS malaria and other diseass 7 Ensure environmental sustainability 8 Develop a global partnership for development

(Placer Dome CIDA Civil Society NGOs)

waynewaynedunncom

One thing leads to another

World Bank observed how Placer Domersquos leadership on HIVAIDS 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

waynewaynedunncom

PNG HIVAIDS Scoping mission to

determine what might be done and how Enthusiastic interest from

industry government multi-laterals (WHO UNAIDS World Banketc) ODA (AusAID) CIDA partnered with Place Dome to develop an

HIVAIDS strategy for PNG that integrated industry public sector civil society and international community

waynewaynedunncom

PNG Outcomes (or outputs ndash Irsquom never sure) Partnership with Mining

Industry Civil Society WHO UNAIDS UNDP World Bank PNG AIDS AusAID Oil Palm Industry etc National workshop on

HIVAIDS and publicprivate partnerships SouthSouth Collaboration

Industry government civil society international community study trip to South Africa

waynewaynedunncom

waynewaynedunncom

PNG AIDS mission to South Africa

waynewaynedunncom Slide 78

MDG Impacts of PNG HIVAIDS work

1 Poverty and hunger (nutritional supplements) 2 Some impact on primary education (peripheral) 3 Promote gender equality and empower women 4 Reduce child mortality 5 Improve maternal health 6 Combat HIVAIDS malaria and other diseass 7 Ensure environmental sustainability 8 Develop a global partnership for development

(Placer Dome CIDA Civil Society NGOs)

waynewaynedunncom

Eldorado Gold in Turkey

Major gold find in WestCentral Turkey No successful

mining project launched in decades Eurogold project

built launched and halted by community action in late 1990s ndash still mothballed

UsakKislidag Minesite

Eurogold site

waynewaynedunncom

Eldorado Gold in Turkey

Isolated rural area Nearly half of nearby

communities opposed to mine development Agriculture primary

economic activity in rural communities ndash smallmicro family farms

waynewaynedunncom

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

waynewaynedunncom

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 $075 to $1325 Opened second mine in Turkey

bull Able to deal with controversial watershed issues after relationship success in Usak

waynewaynedunncom Slide 83

MDG Impacts of Eldorado Gold

1 Poverty and hunger (minimal) 2 Some impact on primary education (peripheral) 3 Promote gender equality and empower women 4 Reduce child mortality 5 Improve maternal health 6 Combat HIVAIDS malaria and other diseass 7 Ensure environmental sustainability 8 Develop a global partnership for development

(Placer Dome CIDA Civil Society NGOs)

waynewaynedunncom

Underwater Logging in Ghana

waynewaynedunncom

Private Sector and International Development

Private sector especially resource extraction has a very mixed record bull Some horrendous disasters (Nigeria Warao Peoples in

Venezuela etc) bull Some great successes (Placer Dome Care project

mining and HIVAIDS 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

waynewaynedunncom

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

interestsobjectives overlap

waynewaynedunncom

SDCSR Implementation Challenges

more than a warm fuzzy issue Spending isnrsquot the answer

Plan

Framework

System

Results

Solving social problems Objectives

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Beyond Beads and Trinkets ndash BC Mining Review

A lsquohow torsquo article on mining and CSR

Wayne Dunn

BP Venezuela Indigenous Relations ndash Meeting the Challenge Responsibly and Sustainably

Situational assessment and strategic plan for BP Venezuela Authorized for release by BP

Wayne Dunn

Cameco Community Relations Report

Situational assessment and management strategy Authorized for release by Cameco

Wayne Dunn

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author Beyond Beads lsquon Trinkets A systematic approach to managing community relations

A conference paper describing a systematic approach to community relations management helping companies to methodically develop mutually beneficial relationships with local communities and interests (this is one of the earliest papers on this subject ndash written in 1998)

Wayne Dunn

The costs of conflict with local communities in the extractive industry

Analysis of the cost of community conflicts in the Extractive Sector

Rachel Davis and Daniel M Franks

Creating Shared Value

Harvard Business Review interview with Michael Porter

Video

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Social License Its all about value

Discussion on Social License and shareholder Value

Wayne Dunn

Its about Development Commentary on the CIDAMining Company issue

Wayne Dunn

Integrating corporate strategy and social responsibilitymdashmarket returns from stakeholder engagement

Discussion and analysis on market returns on stakeholder engagement

Witold J Henisz Sinziana Dorobantu and Lite J Narty

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

McGill Reporter ndash Four Burning Questions Wayne Dunn on CSR

Discussion on CSR Wayne Dunn

Miningrsquos contribution to sustainable development ndashan overview

Discussion paper prepared by the International Council on Mining and Metals

Millennium Development Goals

United Nations

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Mining and Agriculture Development

A short lsquohow torsquo guide for mining projects to engage with the local agriculture sector

Al Hingston

PDSA Social Value Brochure

Brochure on social value created by Placer Dome South Africa

Placer Dome

The Value of Social License

Opinion piece published in Northern Miner

Wayne Dunn

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Golden Opportunity When a Canadian multinational laid off hundreds of gold miners in South Africa it went many extra miles to help them get back on their feet

Stanford Business School Case Study on Placer Dome in South Africa

Wayne Dunn

The Changing Resource Development Paradigm Maximizing Sustainable Local Benefits from Resource Development

Strategic thought piece prepared for the government of British Columbia Canada

Wayne Dunn

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

The Disappearing Barriers Between Business And Non-profits Are Driving Innovation

Discussion paper

Katherine Pikus

When Condoms are not enough

World Bank staff magazine article on Placer Dome and South African mining industryrsquos work with HIVAIDS

Craig Andrews

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

MINING AND LOCAL ECONOMIC DEVELOPMENT IN PAPUA NEW GUINEA Preliminary Research on a Potential Pilot Project in Porgera and Lihir

Strategic research and action plan on mining and local economic development in Papua New Guinea prepared for the World Bank

Wayne Dunn

waynewaynedunncom

What we covered

We 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) Publicprivatecivil society collaboration ndash case study

and discussion (CIDA and Mining Companies) Open discussion on topics of interest (time permitting)

waynewaynedunncom

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 howwhy 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

waynewaynedunncom

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 howwhy 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

waynewaynedunncom

Alignment around Shared Value For shareholders For Communities For People For Governments

Private Sector Contributions To International Development

Remember

  • Private Sector Contributions To International Development
  • Session Objectives
  • Map of the morning How we will try to meet the objectives
  • Slide Number 4
  • What is ODA and FDI
  • What is ODA and FDI
  • Why discuss Private Sector Contribution anyway
  • FDIBusiness Outcomes
  • Intention and Strategy Make a Difference
  • Why does the private sector care
  • Community Consultation and Value
  • Itrsquos Real Money
  • CSR is a Value Strategy
  • Social License Failures cost
  • Why is CSR happening
  • The Mining World Has Changed
  • CSR is a complicated space
  • CSR amp Social License
  • Role of business is changing (click image to play video)
  • Case Studies (of successes)
  • Slide Number 21
  • Uranium Industry in Northern Saskatchewan
  • Challenging area
  • Challenging Times
  • Cameco in 1998
  • Cameco in Northern Saskatchewan (2010)
  • So how did Cameco and the industry do it
  • Placer Dome South Africa
  • Slide Number 29
  • Background
  • Background (cont)
  • Families amp Communities must benefit from mining
  • The Care Project
  • Implications
  • Slide Number 35
  • The Initial 4-Step Plan
  • Reality was different than we expected
  • Reality was different than expected
  • Meeting the challenges
  • TheProcess
  • Some results
  • Chicken raising business
  • Furniture making
  • Unique training programs
  • Rice farming in Mozambique
  • Spaza (convenience) shop
  • And the business value ishellip
  • Slide Number 48
  • What was in it for Placer Dome
  • And then there is HIVAIDS
  • HIVAIDS Facts (in 2000)
  • HIVAIDS Impact
  • HIVAIDS and Gold Mining
  • HIVAIDS Programming
  • Minesite Program
  • Minesite Program
  • Current Community Program
  • Community Mobile Clinic
  • And when HIV prevention doesnrsquot work
  • Industry Home Based Care
  • Home Based Care
  • INDUSTRY HOME BASED CARE RESULTS(Year One)
  • Overview of Placer Dome AIDS Programming
  • Slide Number 64
  • HIVAIDS and Rural Areas
  • HIVAIDS and Rural Areas
  • Reputational Results for Placer Dome
  • Where to next
  • Planned Program
  • Care Positive Summary
  • Andhellip
  • MDG Impacts of Placer Dome in South Africa
  • One thing leads to another
  • PNG HIVAIDS
  • PNG Outcomes (or outputs ndash Irsquom never sure)
  • Slide Number 76
  • PNG AIDS mission to South Africa
  • MDG Impacts of PNG HIVAIDS work
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • MDG Impacts of Eldorado Gold
  • Underwater Logging in Ghana
  • Private Sector and International Development
  • Group Exercise
  • Slide Number 87
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • What we covered
  • Session Objectives
  • Session Objectives
  • Remember
Page 73: Private Sector Contributions To International Development – McGill Executive Education Program Lecture

waynewaynedunncom

One thing leads to another

World Bank observed how Placer Domersquos leadership on HIVAIDS 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

waynewaynedunncom

PNG HIVAIDS Scoping mission to

determine what might be done and how Enthusiastic interest from

industry government multi-laterals (WHO UNAIDS World Banketc) ODA (AusAID) CIDA partnered with Place Dome to develop an

HIVAIDS strategy for PNG that integrated industry public sector civil society and international community

waynewaynedunncom

PNG Outcomes (or outputs ndash Irsquom never sure) Partnership with Mining

Industry Civil Society WHO UNAIDS UNDP World Bank PNG AIDS AusAID Oil Palm Industry etc National workshop on

HIVAIDS and publicprivate partnerships SouthSouth Collaboration

Industry government civil society international community study trip to South Africa

waynewaynedunncom

waynewaynedunncom

PNG AIDS mission to South Africa

waynewaynedunncom Slide 78

MDG Impacts of PNG HIVAIDS work

1 Poverty and hunger (nutritional supplements) 2 Some impact on primary education (peripheral) 3 Promote gender equality and empower women 4 Reduce child mortality 5 Improve maternal health 6 Combat HIVAIDS malaria and other diseass 7 Ensure environmental sustainability 8 Develop a global partnership for development

(Placer Dome CIDA Civil Society NGOs)

waynewaynedunncom

Eldorado Gold in Turkey

Major gold find in WestCentral Turkey No successful

mining project launched in decades Eurogold project

built launched and halted by community action in late 1990s ndash still mothballed

UsakKislidag Minesite

Eurogold site

waynewaynedunncom

Eldorado Gold in Turkey

Isolated rural area Nearly half of nearby

communities opposed to mine development Agriculture primary

economic activity in rural communities ndash smallmicro family farms

waynewaynedunncom

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

waynewaynedunncom

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 $075 to $1325 Opened second mine in Turkey

bull Able to deal with controversial watershed issues after relationship success in Usak

waynewaynedunncom Slide 83

MDG Impacts of Eldorado Gold

1 Poverty and hunger (minimal) 2 Some impact on primary education (peripheral) 3 Promote gender equality and empower women 4 Reduce child mortality 5 Improve maternal health 6 Combat HIVAIDS malaria and other diseass 7 Ensure environmental sustainability 8 Develop a global partnership for development

(Placer Dome CIDA Civil Society NGOs)

waynewaynedunncom

Underwater Logging in Ghana

waynewaynedunncom

Private Sector and International Development

Private sector especially resource extraction has a very mixed record bull Some horrendous disasters (Nigeria Warao Peoples in

Venezuela etc) bull Some great successes (Placer Dome Care project

mining and HIVAIDS 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

waynewaynedunncom

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

interestsobjectives overlap

waynewaynedunncom

SDCSR Implementation Challenges

more than a warm fuzzy issue Spending isnrsquot the answer

Plan

Framework

System

Results

Solving social problems Objectives

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Beyond Beads and Trinkets ndash BC Mining Review

A lsquohow torsquo article on mining and CSR

Wayne Dunn

BP Venezuela Indigenous Relations ndash Meeting the Challenge Responsibly and Sustainably

Situational assessment and strategic plan for BP Venezuela Authorized for release by BP

Wayne Dunn

Cameco Community Relations Report

Situational assessment and management strategy Authorized for release by Cameco

Wayne Dunn

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author Beyond Beads lsquon Trinkets A systematic approach to managing community relations

A conference paper describing a systematic approach to community relations management helping companies to methodically develop mutually beneficial relationships with local communities and interests (this is one of the earliest papers on this subject ndash written in 1998)

Wayne Dunn

The costs of conflict with local communities in the extractive industry

Analysis of the cost of community conflicts in the Extractive Sector

Rachel Davis and Daniel M Franks

Creating Shared Value

Harvard Business Review interview with Michael Porter

Video

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Social License Its all about value

Discussion on Social License and shareholder Value

Wayne Dunn

Its about Development Commentary on the CIDAMining Company issue

Wayne Dunn

Integrating corporate strategy and social responsibilitymdashmarket returns from stakeholder engagement

Discussion and analysis on market returns on stakeholder engagement

Witold J Henisz Sinziana Dorobantu and Lite J Narty

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

McGill Reporter ndash Four Burning Questions Wayne Dunn on CSR

Discussion on CSR Wayne Dunn

Miningrsquos contribution to sustainable development ndashan overview

Discussion paper prepared by the International Council on Mining and Metals

Millennium Development Goals

United Nations

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Mining and Agriculture Development

A short lsquohow torsquo guide for mining projects to engage with the local agriculture sector

Al Hingston

PDSA Social Value Brochure

Brochure on social value created by Placer Dome South Africa

Placer Dome

The Value of Social License

Opinion piece published in Northern Miner

Wayne Dunn

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Golden Opportunity When a Canadian multinational laid off hundreds of gold miners in South Africa it went many extra miles to help them get back on their feet

Stanford Business School Case Study on Placer Dome in South Africa

Wayne Dunn

The Changing Resource Development Paradigm Maximizing Sustainable Local Benefits from Resource Development

Strategic thought piece prepared for the government of British Columbia Canada

Wayne Dunn

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

The Disappearing Barriers Between Business And Non-profits Are Driving Innovation

Discussion paper

Katherine Pikus

When Condoms are not enough

World Bank staff magazine article on Placer Dome and South African mining industryrsquos work with HIVAIDS

Craig Andrews

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

MINING AND LOCAL ECONOMIC DEVELOPMENT IN PAPUA NEW GUINEA Preliminary Research on a Potential Pilot Project in Porgera and Lihir

Strategic research and action plan on mining and local economic development in Papua New Guinea prepared for the World Bank

Wayne Dunn

waynewaynedunncom

What we covered

We 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) Publicprivatecivil society collaboration ndash case study

and discussion (CIDA and Mining Companies) Open discussion on topics of interest (time permitting)

waynewaynedunncom

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 howwhy 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

waynewaynedunncom

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 howwhy 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

waynewaynedunncom

Alignment around Shared Value For shareholders For Communities For People For Governments

Private Sector Contributions To International Development

Remember

  • Private Sector Contributions To International Development
  • Session Objectives
  • Map of the morning How we will try to meet the objectives
  • Slide Number 4
  • What is ODA and FDI
  • What is ODA and FDI
  • Why discuss Private Sector Contribution anyway
  • FDIBusiness Outcomes
  • Intention and Strategy Make a Difference
  • Why does the private sector care
  • Community Consultation and Value
  • Itrsquos Real Money
  • CSR is a Value Strategy
  • Social License Failures cost
  • Why is CSR happening
  • The Mining World Has Changed
  • CSR is a complicated space
  • CSR amp Social License
  • Role of business is changing (click image to play video)
  • Case Studies (of successes)
  • Slide Number 21
  • Uranium Industry in Northern Saskatchewan
  • Challenging area
  • Challenging Times
  • Cameco in 1998
  • Cameco in Northern Saskatchewan (2010)
  • So how did Cameco and the industry do it
  • Placer Dome South Africa
  • Slide Number 29
  • Background
  • Background (cont)
  • Families amp Communities must benefit from mining
  • The Care Project
  • Implications
  • Slide Number 35
  • The Initial 4-Step Plan
  • Reality was different than we expected
  • Reality was different than expected
  • Meeting the challenges
  • TheProcess
  • Some results
  • Chicken raising business
  • Furniture making
  • Unique training programs
  • Rice farming in Mozambique
  • Spaza (convenience) shop
  • And the business value ishellip
  • Slide Number 48
  • What was in it for Placer Dome
  • And then there is HIVAIDS
  • HIVAIDS Facts (in 2000)
  • HIVAIDS Impact
  • HIVAIDS and Gold Mining
  • HIVAIDS Programming
  • Minesite Program
  • Minesite Program
  • Current Community Program
  • Community Mobile Clinic
  • And when HIV prevention doesnrsquot work
  • Industry Home Based Care
  • Home Based Care
  • INDUSTRY HOME BASED CARE RESULTS(Year One)
  • Overview of Placer Dome AIDS Programming
  • Slide Number 64
  • HIVAIDS and Rural Areas
  • HIVAIDS and Rural Areas
  • Reputational Results for Placer Dome
  • Where to next
  • Planned Program
  • Care Positive Summary
  • Andhellip
  • MDG Impacts of Placer Dome in South Africa
  • One thing leads to another
  • PNG HIVAIDS
  • PNG Outcomes (or outputs ndash Irsquom never sure)
  • Slide Number 76
  • PNG AIDS mission to South Africa
  • MDG Impacts of PNG HIVAIDS work
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • MDG Impacts of Eldorado Gold
  • Underwater Logging in Ghana
  • Private Sector and International Development
  • Group Exercise
  • Slide Number 87
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • What we covered
  • Session Objectives
  • Session Objectives
  • Remember
Page 74: Private Sector Contributions To International Development – McGill Executive Education Program Lecture

waynewaynedunncom

PNG HIVAIDS Scoping mission to

determine what might be done and how Enthusiastic interest from

industry government multi-laterals (WHO UNAIDS World Banketc) ODA (AusAID) CIDA partnered with Place Dome to develop an

HIVAIDS strategy for PNG that integrated industry public sector civil society and international community

waynewaynedunncom

PNG Outcomes (or outputs ndash Irsquom never sure) Partnership with Mining

Industry Civil Society WHO UNAIDS UNDP World Bank PNG AIDS AusAID Oil Palm Industry etc National workshop on

HIVAIDS and publicprivate partnerships SouthSouth Collaboration

Industry government civil society international community study trip to South Africa

waynewaynedunncom

waynewaynedunncom

PNG AIDS mission to South Africa

waynewaynedunncom Slide 78

MDG Impacts of PNG HIVAIDS work

1 Poverty and hunger (nutritional supplements) 2 Some impact on primary education (peripheral) 3 Promote gender equality and empower women 4 Reduce child mortality 5 Improve maternal health 6 Combat HIVAIDS malaria and other diseass 7 Ensure environmental sustainability 8 Develop a global partnership for development

(Placer Dome CIDA Civil Society NGOs)

waynewaynedunncom

Eldorado Gold in Turkey

Major gold find in WestCentral Turkey No successful

mining project launched in decades Eurogold project

built launched and halted by community action in late 1990s ndash still mothballed

UsakKislidag Minesite

Eurogold site

waynewaynedunncom

Eldorado Gold in Turkey

Isolated rural area Nearly half of nearby

communities opposed to mine development Agriculture primary

economic activity in rural communities ndash smallmicro family farms

waynewaynedunncom

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

waynewaynedunncom

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 $075 to $1325 Opened second mine in Turkey

bull Able to deal with controversial watershed issues after relationship success in Usak

waynewaynedunncom Slide 83

MDG Impacts of Eldorado Gold

1 Poverty and hunger (minimal) 2 Some impact on primary education (peripheral) 3 Promote gender equality and empower women 4 Reduce child mortality 5 Improve maternal health 6 Combat HIVAIDS malaria and other diseass 7 Ensure environmental sustainability 8 Develop a global partnership for development

(Placer Dome CIDA Civil Society NGOs)

waynewaynedunncom

Underwater Logging in Ghana

waynewaynedunncom

Private Sector and International Development

Private sector especially resource extraction has a very mixed record bull Some horrendous disasters (Nigeria Warao Peoples in

Venezuela etc) bull Some great successes (Placer Dome Care project

mining and HIVAIDS 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

waynewaynedunncom

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

interestsobjectives overlap

waynewaynedunncom

SDCSR Implementation Challenges

more than a warm fuzzy issue Spending isnrsquot the answer

Plan

Framework

System

Results

Solving social problems Objectives

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Beyond Beads and Trinkets ndash BC Mining Review

A lsquohow torsquo article on mining and CSR

Wayne Dunn

BP Venezuela Indigenous Relations ndash Meeting the Challenge Responsibly and Sustainably

Situational assessment and strategic plan for BP Venezuela Authorized for release by BP

Wayne Dunn

Cameco Community Relations Report

Situational assessment and management strategy Authorized for release by Cameco

Wayne Dunn

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author Beyond Beads lsquon Trinkets A systematic approach to managing community relations

A conference paper describing a systematic approach to community relations management helping companies to methodically develop mutually beneficial relationships with local communities and interests (this is one of the earliest papers on this subject ndash written in 1998)

Wayne Dunn

The costs of conflict with local communities in the extractive industry

Analysis of the cost of community conflicts in the Extractive Sector

Rachel Davis and Daniel M Franks

Creating Shared Value

Harvard Business Review interview with Michael Porter

Video

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Social License Its all about value

Discussion on Social License and shareholder Value

Wayne Dunn

Its about Development Commentary on the CIDAMining Company issue

Wayne Dunn

Integrating corporate strategy and social responsibilitymdashmarket returns from stakeholder engagement

Discussion and analysis on market returns on stakeholder engagement

Witold J Henisz Sinziana Dorobantu and Lite J Narty

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

McGill Reporter ndash Four Burning Questions Wayne Dunn on CSR

Discussion on CSR Wayne Dunn

Miningrsquos contribution to sustainable development ndashan overview

Discussion paper prepared by the International Council on Mining and Metals

Millennium Development Goals

United Nations

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Mining and Agriculture Development

A short lsquohow torsquo guide for mining projects to engage with the local agriculture sector

Al Hingston

PDSA Social Value Brochure

Brochure on social value created by Placer Dome South Africa

Placer Dome

The Value of Social License

Opinion piece published in Northern Miner

Wayne Dunn

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Golden Opportunity When a Canadian multinational laid off hundreds of gold miners in South Africa it went many extra miles to help them get back on their feet

Stanford Business School Case Study on Placer Dome in South Africa

Wayne Dunn

The Changing Resource Development Paradigm Maximizing Sustainable Local Benefits from Resource Development

Strategic thought piece prepared for the government of British Columbia Canada

Wayne Dunn

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

The Disappearing Barriers Between Business And Non-profits Are Driving Innovation

Discussion paper

Katherine Pikus

When Condoms are not enough

World Bank staff magazine article on Placer Dome and South African mining industryrsquos work with HIVAIDS

Craig Andrews

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

MINING AND LOCAL ECONOMIC DEVELOPMENT IN PAPUA NEW GUINEA Preliminary Research on a Potential Pilot Project in Porgera and Lihir

Strategic research and action plan on mining and local economic development in Papua New Guinea prepared for the World Bank

Wayne Dunn

waynewaynedunncom

What we covered

We 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) Publicprivatecivil society collaboration ndash case study

and discussion (CIDA and Mining Companies) Open discussion on topics of interest (time permitting)

waynewaynedunncom

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 howwhy 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

waynewaynedunncom

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 howwhy 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

waynewaynedunncom

Alignment around Shared Value For shareholders For Communities For People For Governments

Private Sector Contributions To International Development

Remember

  • Private Sector Contributions To International Development
  • Session Objectives
  • Map of the morning How we will try to meet the objectives
  • Slide Number 4
  • What is ODA and FDI
  • What is ODA and FDI
  • Why discuss Private Sector Contribution anyway
  • FDIBusiness Outcomes
  • Intention and Strategy Make a Difference
  • Why does the private sector care
  • Community Consultation and Value
  • Itrsquos Real Money
  • CSR is a Value Strategy
  • Social License Failures cost
  • Why is CSR happening
  • The Mining World Has Changed
  • CSR is a complicated space
  • CSR amp Social License
  • Role of business is changing (click image to play video)
  • Case Studies (of successes)
  • Slide Number 21
  • Uranium Industry in Northern Saskatchewan
  • Challenging area
  • Challenging Times
  • Cameco in 1998
  • Cameco in Northern Saskatchewan (2010)
  • So how did Cameco and the industry do it
  • Placer Dome South Africa
  • Slide Number 29
  • Background
  • Background (cont)
  • Families amp Communities must benefit from mining
  • The Care Project
  • Implications
  • Slide Number 35
  • The Initial 4-Step Plan
  • Reality was different than we expected
  • Reality was different than expected
  • Meeting the challenges
  • TheProcess
  • Some results
  • Chicken raising business
  • Furniture making
  • Unique training programs
  • Rice farming in Mozambique
  • Spaza (convenience) shop
  • And the business value ishellip
  • Slide Number 48
  • What was in it for Placer Dome
  • And then there is HIVAIDS
  • HIVAIDS Facts (in 2000)
  • HIVAIDS Impact
  • HIVAIDS and Gold Mining
  • HIVAIDS Programming
  • Minesite Program
  • Minesite Program
  • Current Community Program
  • Community Mobile Clinic
  • And when HIV prevention doesnrsquot work
  • Industry Home Based Care
  • Home Based Care
  • INDUSTRY HOME BASED CARE RESULTS(Year One)
  • Overview of Placer Dome AIDS Programming
  • Slide Number 64
  • HIVAIDS and Rural Areas
  • HIVAIDS and Rural Areas
  • Reputational Results for Placer Dome
  • Where to next
  • Planned Program
  • Care Positive Summary
  • Andhellip
  • MDG Impacts of Placer Dome in South Africa
  • One thing leads to another
  • PNG HIVAIDS
  • PNG Outcomes (or outputs ndash Irsquom never sure)
  • Slide Number 76
  • PNG AIDS mission to South Africa
  • MDG Impacts of PNG HIVAIDS work
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • MDG Impacts of Eldorado Gold
  • Underwater Logging in Ghana
  • Private Sector and International Development
  • Group Exercise
  • Slide Number 87
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • What we covered
  • Session Objectives
  • Session Objectives
  • Remember
Page 75: Private Sector Contributions To International Development – McGill Executive Education Program Lecture

waynewaynedunncom

PNG Outcomes (or outputs ndash Irsquom never sure) Partnership with Mining

Industry Civil Society WHO UNAIDS UNDP World Bank PNG AIDS AusAID Oil Palm Industry etc National workshop on

HIVAIDS and publicprivate partnerships SouthSouth Collaboration

Industry government civil society international community study trip to South Africa

waynewaynedunncom

waynewaynedunncom

PNG AIDS mission to South Africa

waynewaynedunncom Slide 78

MDG Impacts of PNG HIVAIDS work

1 Poverty and hunger (nutritional supplements) 2 Some impact on primary education (peripheral) 3 Promote gender equality and empower women 4 Reduce child mortality 5 Improve maternal health 6 Combat HIVAIDS malaria and other diseass 7 Ensure environmental sustainability 8 Develop a global partnership for development

(Placer Dome CIDA Civil Society NGOs)

waynewaynedunncom

Eldorado Gold in Turkey

Major gold find in WestCentral Turkey No successful

mining project launched in decades Eurogold project

built launched and halted by community action in late 1990s ndash still mothballed

UsakKislidag Minesite

Eurogold site

waynewaynedunncom

Eldorado Gold in Turkey

Isolated rural area Nearly half of nearby

communities opposed to mine development Agriculture primary

economic activity in rural communities ndash smallmicro family farms

waynewaynedunncom

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

waynewaynedunncom

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 $075 to $1325 Opened second mine in Turkey

bull Able to deal with controversial watershed issues after relationship success in Usak

waynewaynedunncom Slide 83

MDG Impacts of Eldorado Gold

1 Poverty and hunger (minimal) 2 Some impact on primary education (peripheral) 3 Promote gender equality and empower women 4 Reduce child mortality 5 Improve maternal health 6 Combat HIVAIDS malaria and other diseass 7 Ensure environmental sustainability 8 Develop a global partnership for development

(Placer Dome CIDA Civil Society NGOs)

waynewaynedunncom

Underwater Logging in Ghana

waynewaynedunncom

Private Sector and International Development

Private sector especially resource extraction has a very mixed record bull Some horrendous disasters (Nigeria Warao Peoples in

Venezuela etc) bull Some great successes (Placer Dome Care project

mining and HIVAIDS 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

waynewaynedunncom

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

interestsobjectives overlap

waynewaynedunncom

SDCSR Implementation Challenges

more than a warm fuzzy issue Spending isnrsquot the answer

Plan

Framework

System

Results

Solving social problems Objectives

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Beyond Beads and Trinkets ndash BC Mining Review

A lsquohow torsquo article on mining and CSR

Wayne Dunn

BP Venezuela Indigenous Relations ndash Meeting the Challenge Responsibly and Sustainably

Situational assessment and strategic plan for BP Venezuela Authorized for release by BP

Wayne Dunn

Cameco Community Relations Report

Situational assessment and management strategy Authorized for release by Cameco

Wayne Dunn

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author Beyond Beads lsquon Trinkets A systematic approach to managing community relations

A conference paper describing a systematic approach to community relations management helping companies to methodically develop mutually beneficial relationships with local communities and interests (this is one of the earliest papers on this subject ndash written in 1998)

Wayne Dunn

The costs of conflict with local communities in the extractive industry

Analysis of the cost of community conflicts in the Extractive Sector

Rachel Davis and Daniel M Franks

Creating Shared Value

Harvard Business Review interview with Michael Porter

Video

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Social License Its all about value

Discussion on Social License and shareholder Value

Wayne Dunn

Its about Development Commentary on the CIDAMining Company issue

Wayne Dunn

Integrating corporate strategy and social responsibilitymdashmarket returns from stakeholder engagement

Discussion and analysis on market returns on stakeholder engagement

Witold J Henisz Sinziana Dorobantu and Lite J Narty

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

McGill Reporter ndash Four Burning Questions Wayne Dunn on CSR

Discussion on CSR Wayne Dunn

Miningrsquos contribution to sustainable development ndashan overview

Discussion paper prepared by the International Council on Mining and Metals

Millennium Development Goals

United Nations

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Mining and Agriculture Development

A short lsquohow torsquo guide for mining projects to engage with the local agriculture sector

Al Hingston

PDSA Social Value Brochure

Brochure on social value created by Placer Dome South Africa

Placer Dome

The Value of Social License

Opinion piece published in Northern Miner

Wayne Dunn

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Golden Opportunity When a Canadian multinational laid off hundreds of gold miners in South Africa it went many extra miles to help them get back on their feet

Stanford Business School Case Study on Placer Dome in South Africa

Wayne Dunn

The Changing Resource Development Paradigm Maximizing Sustainable Local Benefits from Resource Development

Strategic thought piece prepared for the government of British Columbia Canada

Wayne Dunn

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

The Disappearing Barriers Between Business And Non-profits Are Driving Innovation

Discussion paper

Katherine Pikus

When Condoms are not enough

World Bank staff magazine article on Placer Dome and South African mining industryrsquos work with HIVAIDS

Craig Andrews

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

MINING AND LOCAL ECONOMIC DEVELOPMENT IN PAPUA NEW GUINEA Preliminary Research on a Potential Pilot Project in Porgera and Lihir

Strategic research and action plan on mining and local economic development in Papua New Guinea prepared for the World Bank

Wayne Dunn

waynewaynedunncom

What we covered

We 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) Publicprivatecivil society collaboration ndash case study

and discussion (CIDA and Mining Companies) Open discussion on topics of interest (time permitting)

waynewaynedunncom

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 howwhy 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

waynewaynedunncom

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 howwhy 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

waynewaynedunncom

Alignment around Shared Value For shareholders For Communities For People For Governments

Private Sector Contributions To International Development

Remember

  • Private Sector Contributions To International Development
  • Session Objectives
  • Map of the morning How we will try to meet the objectives
  • Slide Number 4
  • What is ODA and FDI
  • What is ODA and FDI
  • Why discuss Private Sector Contribution anyway
  • FDIBusiness Outcomes
  • Intention and Strategy Make a Difference
  • Why does the private sector care
  • Community Consultation and Value
  • Itrsquos Real Money
  • CSR is a Value Strategy
  • Social License Failures cost
  • Why is CSR happening
  • The Mining World Has Changed
  • CSR is a complicated space
  • CSR amp Social License
  • Role of business is changing (click image to play video)
  • Case Studies (of successes)
  • Slide Number 21
  • Uranium Industry in Northern Saskatchewan
  • Challenging area
  • Challenging Times
  • Cameco in 1998
  • Cameco in Northern Saskatchewan (2010)
  • So how did Cameco and the industry do it
  • Placer Dome South Africa
  • Slide Number 29
  • Background
  • Background (cont)
  • Families amp Communities must benefit from mining
  • The Care Project
  • Implications
  • Slide Number 35
  • The Initial 4-Step Plan
  • Reality was different than we expected
  • Reality was different than expected
  • Meeting the challenges
  • TheProcess
  • Some results
  • Chicken raising business
  • Furniture making
  • Unique training programs
  • Rice farming in Mozambique
  • Spaza (convenience) shop
  • And the business value ishellip
  • Slide Number 48
  • What was in it for Placer Dome
  • And then there is HIVAIDS
  • HIVAIDS Facts (in 2000)
  • HIVAIDS Impact
  • HIVAIDS and Gold Mining
  • HIVAIDS Programming
  • Minesite Program
  • Minesite Program
  • Current Community Program
  • Community Mobile Clinic
  • And when HIV prevention doesnrsquot work
  • Industry Home Based Care
  • Home Based Care
  • INDUSTRY HOME BASED CARE RESULTS(Year One)
  • Overview of Placer Dome AIDS Programming
  • Slide Number 64
  • HIVAIDS and Rural Areas
  • HIVAIDS and Rural Areas
  • Reputational Results for Placer Dome
  • Where to next
  • Planned Program
  • Care Positive Summary
  • Andhellip
  • MDG Impacts of Placer Dome in South Africa
  • One thing leads to another
  • PNG HIVAIDS
  • PNG Outcomes (or outputs ndash Irsquom never sure)
  • Slide Number 76
  • PNG AIDS mission to South Africa
  • MDG Impacts of PNG HIVAIDS work
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • MDG Impacts of Eldorado Gold
  • Underwater Logging in Ghana
  • Private Sector and International Development
  • Group Exercise
  • Slide Number 87
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • What we covered
  • Session Objectives
  • Session Objectives
  • Remember
Page 76: Private Sector Contributions To International Development – McGill Executive Education Program Lecture

waynewaynedunncom

waynewaynedunncom

PNG AIDS mission to South Africa

waynewaynedunncom Slide 78

MDG Impacts of PNG HIVAIDS work

1 Poverty and hunger (nutritional supplements) 2 Some impact on primary education (peripheral) 3 Promote gender equality and empower women 4 Reduce child mortality 5 Improve maternal health 6 Combat HIVAIDS malaria and other diseass 7 Ensure environmental sustainability 8 Develop a global partnership for development

(Placer Dome CIDA Civil Society NGOs)

waynewaynedunncom

Eldorado Gold in Turkey

Major gold find in WestCentral Turkey No successful

mining project launched in decades Eurogold project

built launched and halted by community action in late 1990s ndash still mothballed

UsakKislidag Minesite

Eurogold site

waynewaynedunncom

Eldorado Gold in Turkey

Isolated rural area Nearly half of nearby

communities opposed to mine development Agriculture primary

economic activity in rural communities ndash smallmicro family farms

waynewaynedunncom

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

waynewaynedunncom

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 $075 to $1325 Opened second mine in Turkey

bull Able to deal with controversial watershed issues after relationship success in Usak

waynewaynedunncom Slide 83

MDG Impacts of Eldorado Gold

1 Poverty and hunger (minimal) 2 Some impact on primary education (peripheral) 3 Promote gender equality and empower women 4 Reduce child mortality 5 Improve maternal health 6 Combat HIVAIDS malaria and other diseass 7 Ensure environmental sustainability 8 Develop a global partnership for development

(Placer Dome CIDA Civil Society NGOs)

waynewaynedunncom

Underwater Logging in Ghana

waynewaynedunncom

Private Sector and International Development

Private sector especially resource extraction has a very mixed record bull Some horrendous disasters (Nigeria Warao Peoples in

Venezuela etc) bull Some great successes (Placer Dome Care project

mining and HIVAIDS 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

waynewaynedunncom

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

interestsobjectives overlap

waynewaynedunncom

SDCSR Implementation Challenges

more than a warm fuzzy issue Spending isnrsquot the answer

Plan

Framework

System

Results

Solving social problems Objectives

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Beyond Beads and Trinkets ndash BC Mining Review

A lsquohow torsquo article on mining and CSR

Wayne Dunn

BP Venezuela Indigenous Relations ndash Meeting the Challenge Responsibly and Sustainably

Situational assessment and strategic plan for BP Venezuela Authorized for release by BP

Wayne Dunn

Cameco Community Relations Report

Situational assessment and management strategy Authorized for release by Cameco

Wayne Dunn

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author Beyond Beads lsquon Trinkets A systematic approach to managing community relations

A conference paper describing a systematic approach to community relations management helping companies to methodically develop mutually beneficial relationships with local communities and interests (this is one of the earliest papers on this subject ndash written in 1998)

Wayne Dunn

The costs of conflict with local communities in the extractive industry

Analysis of the cost of community conflicts in the Extractive Sector

Rachel Davis and Daniel M Franks

Creating Shared Value

Harvard Business Review interview with Michael Porter

Video

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Social License Its all about value

Discussion on Social License and shareholder Value

Wayne Dunn

Its about Development Commentary on the CIDAMining Company issue

Wayne Dunn

Integrating corporate strategy and social responsibilitymdashmarket returns from stakeholder engagement

Discussion and analysis on market returns on stakeholder engagement

Witold J Henisz Sinziana Dorobantu and Lite J Narty

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

McGill Reporter ndash Four Burning Questions Wayne Dunn on CSR

Discussion on CSR Wayne Dunn

Miningrsquos contribution to sustainable development ndashan overview

Discussion paper prepared by the International Council on Mining and Metals

Millennium Development Goals

United Nations

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Mining and Agriculture Development

A short lsquohow torsquo guide for mining projects to engage with the local agriculture sector

Al Hingston

PDSA Social Value Brochure

Brochure on social value created by Placer Dome South Africa

Placer Dome

The Value of Social License

Opinion piece published in Northern Miner

Wayne Dunn

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Golden Opportunity When a Canadian multinational laid off hundreds of gold miners in South Africa it went many extra miles to help them get back on their feet

Stanford Business School Case Study on Placer Dome in South Africa

Wayne Dunn

The Changing Resource Development Paradigm Maximizing Sustainable Local Benefits from Resource Development

Strategic thought piece prepared for the government of British Columbia Canada

Wayne Dunn

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

The Disappearing Barriers Between Business And Non-profits Are Driving Innovation

Discussion paper

Katherine Pikus

When Condoms are not enough

World Bank staff magazine article on Placer Dome and South African mining industryrsquos work with HIVAIDS

Craig Andrews

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

MINING AND LOCAL ECONOMIC DEVELOPMENT IN PAPUA NEW GUINEA Preliminary Research on a Potential Pilot Project in Porgera and Lihir

Strategic research and action plan on mining and local economic development in Papua New Guinea prepared for the World Bank

Wayne Dunn

waynewaynedunncom

What we covered

We 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) Publicprivatecivil society collaboration ndash case study

and discussion (CIDA and Mining Companies) Open discussion on topics of interest (time permitting)

waynewaynedunncom

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 howwhy 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

waynewaynedunncom

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 howwhy 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

waynewaynedunncom

Alignment around Shared Value For shareholders For Communities For People For Governments

Private Sector Contributions To International Development

Remember

  • Private Sector Contributions To International Development
  • Session Objectives
  • Map of the morning How we will try to meet the objectives
  • Slide Number 4
  • What is ODA and FDI
  • What is ODA and FDI
  • Why discuss Private Sector Contribution anyway
  • FDIBusiness Outcomes
  • Intention and Strategy Make a Difference
  • Why does the private sector care
  • Community Consultation and Value
  • Itrsquos Real Money
  • CSR is a Value Strategy
  • Social License Failures cost
  • Why is CSR happening
  • The Mining World Has Changed
  • CSR is a complicated space
  • CSR amp Social License
  • Role of business is changing (click image to play video)
  • Case Studies (of successes)
  • Slide Number 21
  • Uranium Industry in Northern Saskatchewan
  • Challenging area
  • Challenging Times
  • Cameco in 1998
  • Cameco in Northern Saskatchewan (2010)
  • So how did Cameco and the industry do it
  • Placer Dome South Africa
  • Slide Number 29
  • Background
  • Background (cont)
  • Families amp Communities must benefit from mining
  • The Care Project
  • Implications
  • Slide Number 35
  • The Initial 4-Step Plan
  • Reality was different than we expected
  • Reality was different than expected
  • Meeting the challenges
  • TheProcess
  • Some results
  • Chicken raising business
  • Furniture making
  • Unique training programs
  • Rice farming in Mozambique
  • Spaza (convenience) shop
  • And the business value ishellip
  • Slide Number 48
  • What was in it for Placer Dome
  • And then there is HIVAIDS
  • HIVAIDS Facts (in 2000)
  • HIVAIDS Impact
  • HIVAIDS and Gold Mining
  • HIVAIDS Programming
  • Minesite Program
  • Minesite Program
  • Current Community Program
  • Community Mobile Clinic
  • And when HIV prevention doesnrsquot work
  • Industry Home Based Care
  • Home Based Care
  • INDUSTRY HOME BASED CARE RESULTS(Year One)
  • Overview of Placer Dome AIDS Programming
  • Slide Number 64
  • HIVAIDS and Rural Areas
  • HIVAIDS and Rural Areas
  • Reputational Results for Placer Dome
  • Where to next
  • Planned Program
  • Care Positive Summary
  • Andhellip
  • MDG Impacts of Placer Dome in South Africa
  • One thing leads to another
  • PNG HIVAIDS
  • PNG Outcomes (or outputs ndash Irsquom never sure)
  • Slide Number 76
  • PNG AIDS mission to South Africa
  • MDG Impacts of PNG HIVAIDS work
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • MDG Impacts of Eldorado Gold
  • Underwater Logging in Ghana
  • Private Sector and International Development
  • Group Exercise
  • Slide Number 87
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • What we covered
  • Session Objectives
  • Session Objectives
  • Remember
Page 77: Private Sector Contributions To International Development – McGill Executive Education Program Lecture

waynewaynedunncom

PNG AIDS mission to South Africa

waynewaynedunncom Slide 78

MDG Impacts of PNG HIVAIDS work

1 Poverty and hunger (nutritional supplements) 2 Some impact on primary education (peripheral) 3 Promote gender equality and empower women 4 Reduce child mortality 5 Improve maternal health 6 Combat HIVAIDS malaria and other diseass 7 Ensure environmental sustainability 8 Develop a global partnership for development

(Placer Dome CIDA Civil Society NGOs)

waynewaynedunncom

Eldorado Gold in Turkey

Major gold find in WestCentral Turkey No successful

mining project launched in decades Eurogold project

built launched and halted by community action in late 1990s ndash still mothballed

UsakKislidag Minesite

Eurogold site

waynewaynedunncom

Eldorado Gold in Turkey

Isolated rural area Nearly half of nearby

communities opposed to mine development Agriculture primary

economic activity in rural communities ndash smallmicro family farms

waynewaynedunncom

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

waynewaynedunncom

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 $075 to $1325 Opened second mine in Turkey

bull Able to deal with controversial watershed issues after relationship success in Usak

waynewaynedunncom Slide 83

MDG Impacts of Eldorado Gold

1 Poverty and hunger (minimal) 2 Some impact on primary education (peripheral) 3 Promote gender equality and empower women 4 Reduce child mortality 5 Improve maternal health 6 Combat HIVAIDS malaria and other diseass 7 Ensure environmental sustainability 8 Develop a global partnership for development

(Placer Dome CIDA Civil Society NGOs)

waynewaynedunncom

Underwater Logging in Ghana

waynewaynedunncom

Private Sector and International Development

Private sector especially resource extraction has a very mixed record bull Some horrendous disasters (Nigeria Warao Peoples in

Venezuela etc) bull Some great successes (Placer Dome Care project

mining and HIVAIDS 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

waynewaynedunncom

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

interestsobjectives overlap

waynewaynedunncom

SDCSR Implementation Challenges

more than a warm fuzzy issue Spending isnrsquot the answer

Plan

Framework

System

Results

Solving social problems Objectives

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Beyond Beads and Trinkets ndash BC Mining Review

A lsquohow torsquo article on mining and CSR

Wayne Dunn

BP Venezuela Indigenous Relations ndash Meeting the Challenge Responsibly and Sustainably

Situational assessment and strategic plan for BP Venezuela Authorized for release by BP

Wayne Dunn

Cameco Community Relations Report

Situational assessment and management strategy Authorized for release by Cameco

Wayne Dunn

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author Beyond Beads lsquon Trinkets A systematic approach to managing community relations

A conference paper describing a systematic approach to community relations management helping companies to methodically develop mutually beneficial relationships with local communities and interests (this is one of the earliest papers on this subject ndash written in 1998)

Wayne Dunn

The costs of conflict with local communities in the extractive industry

Analysis of the cost of community conflicts in the Extractive Sector

Rachel Davis and Daniel M Franks

Creating Shared Value

Harvard Business Review interview with Michael Porter

Video

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Social License Its all about value

Discussion on Social License and shareholder Value

Wayne Dunn

Its about Development Commentary on the CIDAMining Company issue

Wayne Dunn

Integrating corporate strategy and social responsibilitymdashmarket returns from stakeholder engagement

Discussion and analysis on market returns on stakeholder engagement

Witold J Henisz Sinziana Dorobantu and Lite J Narty

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

McGill Reporter ndash Four Burning Questions Wayne Dunn on CSR

Discussion on CSR Wayne Dunn

Miningrsquos contribution to sustainable development ndashan overview

Discussion paper prepared by the International Council on Mining and Metals

Millennium Development Goals

United Nations

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Mining and Agriculture Development

A short lsquohow torsquo guide for mining projects to engage with the local agriculture sector

Al Hingston

PDSA Social Value Brochure

Brochure on social value created by Placer Dome South Africa

Placer Dome

The Value of Social License

Opinion piece published in Northern Miner

Wayne Dunn

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Golden Opportunity When a Canadian multinational laid off hundreds of gold miners in South Africa it went many extra miles to help them get back on their feet

Stanford Business School Case Study on Placer Dome in South Africa

Wayne Dunn

The Changing Resource Development Paradigm Maximizing Sustainable Local Benefits from Resource Development

Strategic thought piece prepared for the government of British Columbia Canada

Wayne Dunn

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

The Disappearing Barriers Between Business And Non-profits Are Driving Innovation

Discussion paper

Katherine Pikus

When Condoms are not enough

World Bank staff magazine article on Placer Dome and South African mining industryrsquos work with HIVAIDS

Craig Andrews

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

MINING AND LOCAL ECONOMIC DEVELOPMENT IN PAPUA NEW GUINEA Preliminary Research on a Potential Pilot Project in Porgera and Lihir

Strategic research and action plan on mining and local economic development in Papua New Guinea prepared for the World Bank

Wayne Dunn

waynewaynedunncom

What we covered

We 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) Publicprivatecivil society collaboration ndash case study

and discussion (CIDA and Mining Companies) Open discussion on topics of interest (time permitting)

waynewaynedunncom

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 howwhy 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

waynewaynedunncom

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 howwhy 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

waynewaynedunncom

Alignment around Shared Value For shareholders For Communities For People For Governments

Private Sector Contributions To International Development

Remember

  • Private Sector Contributions To International Development
  • Session Objectives
  • Map of the morning How we will try to meet the objectives
  • Slide Number 4
  • What is ODA and FDI
  • What is ODA and FDI
  • Why discuss Private Sector Contribution anyway
  • FDIBusiness Outcomes
  • Intention and Strategy Make a Difference
  • Why does the private sector care
  • Community Consultation and Value
  • Itrsquos Real Money
  • CSR is a Value Strategy
  • Social License Failures cost
  • Why is CSR happening
  • The Mining World Has Changed
  • CSR is a complicated space
  • CSR amp Social License
  • Role of business is changing (click image to play video)
  • Case Studies (of successes)
  • Slide Number 21
  • Uranium Industry in Northern Saskatchewan
  • Challenging area
  • Challenging Times
  • Cameco in 1998
  • Cameco in Northern Saskatchewan (2010)
  • So how did Cameco and the industry do it
  • Placer Dome South Africa
  • Slide Number 29
  • Background
  • Background (cont)
  • Families amp Communities must benefit from mining
  • The Care Project
  • Implications
  • Slide Number 35
  • The Initial 4-Step Plan
  • Reality was different than we expected
  • Reality was different than expected
  • Meeting the challenges
  • TheProcess
  • Some results
  • Chicken raising business
  • Furniture making
  • Unique training programs
  • Rice farming in Mozambique
  • Spaza (convenience) shop
  • And the business value ishellip
  • Slide Number 48
  • What was in it for Placer Dome
  • And then there is HIVAIDS
  • HIVAIDS Facts (in 2000)
  • HIVAIDS Impact
  • HIVAIDS and Gold Mining
  • HIVAIDS Programming
  • Minesite Program
  • Minesite Program
  • Current Community Program
  • Community Mobile Clinic
  • And when HIV prevention doesnrsquot work
  • Industry Home Based Care
  • Home Based Care
  • INDUSTRY HOME BASED CARE RESULTS(Year One)
  • Overview of Placer Dome AIDS Programming
  • Slide Number 64
  • HIVAIDS and Rural Areas
  • HIVAIDS and Rural Areas
  • Reputational Results for Placer Dome
  • Where to next
  • Planned Program
  • Care Positive Summary
  • Andhellip
  • MDG Impacts of Placer Dome in South Africa
  • One thing leads to another
  • PNG HIVAIDS
  • PNG Outcomes (or outputs ndash Irsquom never sure)
  • Slide Number 76
  • PNG AIDS mission to South Africa
  • MDG Impacts of PNG HIVAIDS work
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • MDG Impacts of Eldorado Gold
  • Underwater Logging in Ghana
  • Private Sector and International Development
  • Group Exercise
  • Slide Number 87
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • What we covered
  • Session Objectives
  • Session Objectives
  • Remember
Page 78: Private Sector Contributions To International Development – McGill Executive Education Program Lecture

waynewaynedunncom Slide 78

MDG Impacts of PNG HIVAIDS work

1 Poverty and hunger (nutritional supplements) 2 Some impact on primary education (peripheral) 3 Promote gender equality and empower women 4 Reduce child mortality 5 Improve maternal health 6 Combat HIVAIDS malaria and other diseass 7 Ensure environmental sustainability 8 Develop a global partnership for development

(Placer Dome CIDA Civil Society NGOs)

waynewaynedunncom

Eldorado Gold in Turkey

Major gold find in WestCentral Turkey No successful

mining project launched in decades Eurogold project

built launched and halted by community action in late 1990s ndash still mothballed

UsakKislidag Minesite

Eurogold site

waynewaynedunncom

Eldorado Gold in Turkey

Isolated rural area Nearly half of nearby

communities opposed to mine development Agriculture primary

economic activity in rural communities ndash smallmicro family farms

waynewaynedunncom

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

waynewaynedunncom

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 $075 to $1325 Opened second mine in Turkey

bull Able to deal with controversial watershed issues after relationship success in Usak

waynewaynedunncom Slide 83

MDG Impacts of Eldorado Gold

1 Poverty and hunger (minimal) 2 Some impact on primary education (peripheral) 3 Promote gender equality and empower women 4 Reduce child mortality 5 Improve maternal health 6 Combat HIVAIDS malaria and other diseass 7 Ensure environmental sustainability 8 Develop a global partnership for development

(Placer Dome CIDA Civil Society NGOs)

waynewaynedunncom

Underwater Logging in Ghana

waynewaynedunncom

Private Sector and International Development

Private sector especially resource extraction has a very mixed record bull Some horrendous disasters (Nigeria Warao Peoples in

Venezuela etc) bull Some great successes (Placer Dome Care project

mining and HIVAIDS 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

waynewaynedunncom

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

interestsobjectives overlap

waynewaynedunncom

SDCSR Implementation Challenges

more than a warm fuzzy issue Spending isnrsquot the answer

Plan

Framework

System

Results

Solving social problems Objectives

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Beyond Beads and Trinkets ndash BC Mining Review

A lsquohow torsquo article on mining and CSR

Wayne Dunn

BP Venezuela Indigenous Relations ndash Meeting the Challenge Responsibly and Sustainably

Situational assessment and strategic plan for BP Venezuela Authorized for release by BP

Wayne Dunn

Cameco Community Relations Report

Situational assessment and management strategy Authorized for release by Cameco

Wayne Dunn

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author Beyond Beads lsquon Trinkets A systematic approach to managing community relations

A conference paper describing a systematic approach to community relations management helping companies to methodically develop mutually beneficial relationships with local communities and interests (this is one of the earliest papers on this subject ndash written in 1998)

Wayne Dunn

The costs of conflict with local communities in the extractive industry

Analysis of the cost of community conflicts in the Extractive Sector

Rachel Davis and Daniel M Franks

Creating Shared Value

Harvard Business Review interview with Michael Porter

Video

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Social License Its all about value

Discussion on Social License and shareholder Value

Wayne Dunn

Its about Development Commentary on the CIDAMining Company issue

Wayne Dunn

Integrating corporate strategy and social responsibilitymdashmarket returns from stakeholder engagement

Discussion and analysis on market returns on stakeholder engagement

Witold J Henisz Sinziana Dorobantu and Lite J Narty

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

McGill Reporter ndash Four Burning Questions Wayne Dunn on CSR

Discussion on CSR Wayne Dunn

Miningrsquos contribution to sustainable development ndashan overview

Discussion paper prepared by the International Council on Mining and Metals

Millennium Development Goals

United Nations

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Mining and Agriculture Development

A short lsquohow torsquo guide for mining projects to engage with the local agriculture sector

Al Hingston

PDSA Social Value Brochure

Brochure on social value created by Placer Dome South Africa

Placer Dome

The Value of Social License

Opinion piece published in Northern Miner

Wayne Dunn

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Golden Opportunity When a Canadian multinational laid off hundreds of gold miners in South Africa it went many extra miles to help them get back on their feet

Stanford Business School Case Study on Placer Dome in South Africa

Wayne Dunn

The Changing Resource Development Paradigm Maximizing Sustainable Local Benefits from Resource Development

Strategic thought piece prepared for the government of British Columbia Canada

Wayne Dunn

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

The Disappearing Barriers Between Business And Non-profits Are Driving Innovation

Discussion paper

Katherine Pikus

When Condoms are not enough

World Bank staff magazine article on Placer Dome and South African mining industryrsquos work with HIVAIDS

Craig Andrews

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

MINING AND LOCAL ECONOMIC DEVELOPMENT IN PAPUA NEW GUINEA Preliminary Research on a Potential Pilot Project in Porgera and Lihir

Strategic research and action plan on mining and local economic development in Papua New Guinea prepared for the World Bank

Wayne Dunn

waynewaynedunncom

What we covered

We 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) Publicprivatecivil society collaboration ndash case study

and discussion (CIDA and Mining Companies) Open discussion on topics of interest (time permitting)

waynewaynedunncom

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 howwhy 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

waynewaynedunncom

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 howwhy 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

waynewaynedunncom

Alignment around Shared Value For shareholders For Communities For People For Governments

Private Sector Contributions To International Development

Remember

  • Private Sector Contributions To International Development
  • Session Objectives
  • Map of the morning How we will try to meet the objectives
  • Slide Number 4
  • What is ODA and FDI
  • What is ODA and FDI
  • Why discuss Private Sector Contribution anyway
  • FDIBusiness Outcomes
  • Intention and Strategy Make a Difference
  • Why does the private sector care
  • Community Consultation and Value
  • Itrsquos Real Money
  • CSR is a Value Strategy
  • Social License Failures cost
  • Why is CSR happening
  • The Mining World Has Changed
  • CSR is a complicated space
  • CSR amp Social License
  • Role of business is changing (click image to play video)
  • Case Studies (of successes)
  • Slide Number 21
  • Uranium Industry in Northern Saskatchewan
  • Challenging area
  • Challenging Times
  • Cameco in 1998
  • Cameco in Northern Saskatchewan (2010)
  • So how did Cameco and the industry do it
  • Placer Dome South Africa
  • Slide Number 29
  • Background
  • Background (cont)
  • Families amp Communities must benefit from mining
  • The Care Project
  • Implications
  • Slide Number 35
  • The Initial 4-Step Plan
  • Reality was different than we expected
  • Reality was different than expected
  • Meeting the challenges
  • TheProcess
  • Some results
  • Chicken raising business
  • Furniture making
  • Unique training programs
  • Rice farming in Mozambique
  • Spaza (convenience) shop
  • And the business value ishellip
  • Slide Number 48
  • What was in it for Placer Dome
  • And then there is HIVAIDS
  • HIVAIDS Facts (in 2000)
  • HIVAIDS Impact
  • HIVAIDS and Gold Mining
  • HIVAIDS Programming
  • Minesite Program
  • Minesite Program
  • Current Community Program
  • Community Mobile Clinic
  • And when HIV prevention doesnrsquot work
  • Industry Home Based Care
  • Home Based Care
  • INDUSTRY HOME BASED CARE RESULTS(Year One)
  • Overview of Placer Dome AIDS Programming
  • Slide Number 64
  • HIVAIDS and Rural Areas
  • HIVAIDS and Rural Areas
  • Reputational Results for Placer Dome
  • Where to next
  • Planned Program
  • Care Positive Summary
  • Andhellip
  • MDG Impacts of Placer Dome in South Africa
  • One thing leads to another
  • PNG HIVAIDS
  • PNG Outcomes (or outputs ndash Irsquom never sure)
  • Slide Number 76
  • PNG AIDS mission to South Africa
  • MDG Impacts of PNG HIVAIDS work
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • MDG Impacts of Eldorado Gold
  • Underwater Logging in Ghana
  • Private Sector and International Development
  • Group Exercise
  • Slide Number 87
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • What we covered
  • Session Objectives
  • Session Objectives
  • Remember
Page 79: Private Sector Contributions To International Development – McGill Executive Education Program Lecture

waynewaynedunncom

Eldorado Gold in Turkey

Major gold find in WestCentral Turkey No successful

mining project launched in decades Eurogold project

built launched and halted by community action in late 1990s ndash still mothballed

UsakKislidag Minesite

Eurogold site

waynewaynedunncom

Eldorado Gold in Turkey

Isolated rural area Nearly half of nearby

communities opposed to mine development Agriculture primary

economic activity in rural communities ndash smallmicro family farms

waynewaynedunncom

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

waynewaynedunncom

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 $075 to $1325 Opened second mine in Turkey

bull Able to deal with controversial watershed issues after relationship success in Usak

waynewaynedunncom Slide 83

MDG Impacts of Eldorado Gold

1 Poverty and hunger (minimal) 2 Some impact on primary education (peripheral) 3 Promote gender equality and empower women 4 Reduce child mortality 5 Improve maternal health 6 Combat HIVAIDS malaria and other diseass 7 Ensure environmental sustainability 8 Develop a global partnership for development

(Placer Dome CIDA Civil Society NGOs)

waynewaynedunncom

Underwater Logging in Ghana

waynewaynedunncom

Private Sector and International Development

Private sector especially resource extraction has a very mixed record bull Some horrendous disasters (Nigeria Warao Peoples in

Venezuela etc) bull Some great successes (Placer Dome Care project

mining and HIVAIDS 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

waynewaynedunncom

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

interestsobjectives overlap

waynewaynedunncom

SDCSR Implementation Challenges

more than a warm fuzzy issue Spending isnrsquot the answer

Plan

Framework

System

Results

Solving social problems Objectives

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Beyond Beads and Trinkets ndash BC Mining Review

A lsquohow torsquo article on mining and CSR

Wayne Dunn

BP Venezuela Indigenous Relations ndash Meeting the Challenge Responsibly and Sustainably

Situational assessment and strategic plan for BP Venezuela Authorized for release by BP

Wayne Dunn

Cameco Community Relations Report

Situational assessment and management strategy Authorized for release by Cameco

Wayne Dunn

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author Beyond Beads lsquon Trinkets A systematic approach to managing community relations

A conference paper describing a systematic approach to community relations management helping companies to methodically develop mutually beneficial relationships with local communities and interests (this is one of the earliest papers on this subject ndash written in 1998)

Wayne Dunn

The costs of conflict with local communities in the extractive industry

Analysis of the cost of community conflicts in the Extractive Sector

Rachel Davis and Daniel M Franks

Creating Shared Value

Harvard Business Review interview with Michael Porter

Video

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Social License Its all about value

Discussion on Social License and shareholder Value

Wayne Dunn

Its about Development Commentary on the CIDAMining Company issue

Wayne Dunn

Integrating corporate strategy and social responsibilitymdashmarket returns from stakeholder engagement

Discussion and analysis on market returns on stakeholder engagement

Witold J Henisz Sinziana Dorobantu and Lite J Narty

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

McGill Reporter ndash Four Burning Questions Wayne Dunn on CSR

Discussion on CSR Wayne Dunn

Miningrsquos contribution to sustainable development ndashan overview

Discussion paper prepared by the International Council on Mining and Metals

Millennium Development Goals

United Nations

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Mining and Agriculture Development

A short lsquohow torsquo guide for mining projects to engage with the local agriculture sector

Al Hingston

PDSA Social Value Brochure

Brochure on social value created by Placer Dome South Africa

Placer Dome

The Value of Social License

Opinion piece published in Northern Miner

Wayne Dunn

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Golden Opportunity When a Canadian multinational laid off hundreds of gold miners in South Africa it went many extra miles to help them get back on their feet

Stanford Business School Case Study on Placer Dome in South Africa

Wayne Dunn

The Changing Resource Development Paradigm Maximizing Sustainable Local Benefits from Resource Development

Strategic thought piece prepared for the government of British Columbia Canada

Wayne Dunn

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

The Disappearing Barriers Between Business And Non-profits Are Driving Innovation

Discussion paper

Katherine Pikus

When Condoms are not enough

World Bank staff magazine article on Placer Dome and South African mining industryrsquos work with HIVAIDS

Craig Andrews

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

MINING AND LOCAL ECONOMIC DEVELOPMENT IN PAPUA NEW GUINEA Preliminary Research on a Potential Pilot Project in Porgera and Lihir

Strategic research and action plan on mining and local economic development in Papua New Guinea prepared for the World Bank

Wayne Dunn

waynewaynedunncom

What we covered

We 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) Publicprivatecivil society collaboration ndash case study

and discussion (CIDA and Mining Companies) Open discussion on topics of interest (time permitting)

waynewaynedunncom

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 howwhy 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

waynewaynedunncom

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 howwhy 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

waynewaynedunncom

Alignment around Shared Value For shareholders For Communities For People For Governments

Private Sector Contributions To International Development

Remember

  • Private Sector Contributions To International Development
  • Session Objectives
  • Map of the morning How we will try to meet the objectives
  • Slide Number 4
  • What is ODA and FDI
  • What is ODA and FDI
  • Why discuss Private Sector Contribution anyway
  • FDIBusiness Outcomes
  • Intention and Strategy Make a Difference
  • Why does the private sector care
  • Community Consultation and Value
  • Itrsquos Real Money
  • CSR is a Value Strategy
  • Social License Failures cost
  • Why is CSR happening
  • The Mining World Has Changed
  • CSR is a complicated space
  • CSR amp Social License
  • Role of business is changing (click image to play video)
  • Case Studies (of successes)
  • Slide Number 21
  • Uranium Industry in Northern Saskatchewan
  • Challenging area
  • Challenging Times
  • Cameco in 1998
  • Cameco in Northern Saskatchewan (2010)
  • So how did Cameco and the industry do it
  • Placer Dome South Africa
  • Slide Number 29
  • Background
  • Background (cont)
  • Families amp Communities must benefit from mining
  • The Care Project
  • Implications
  • Slide Number 35
  • The Initial 4-Step Plan
  • Reality was different than we expected
  • Reality was different than expected
  • Meeting the challenges
  • TheProcess
  • Some results
  • Chicken raising business
  • Furniture making
  • Unique training programs
  • Rice farming in Mozambique
  • Spaza (convenience) shop
  • And the business value ishellip
  • Slide Number 48
  • What was in it for Placer Dome
  • And then there is HIVAIDS
  • HIVAIDS Facts (in 2000)
  • HIVAIDS Impact
  • HIVAIDS and Gold Mining
  • HIVAIDS Programming
  • Minesite Program
  • Minesite Program
  • Current Community Program
  • Community Mobile Clinic
  • And when HIV prevention doesnrsquot work
  • Industry Home Based Care
  • Home Based Care
  • INDUSTRY HOME BASED CARE RESULTS(Year One)
  • Overview of Placer Dome AIDS Programming
  • Slide Number 64
  • HIVAIDS and Rural Areas
  • HIVAIDS and Rural Areas
  • Reputational Results for Placer Dome
  • Where to next
  • Planned Program
  • Care Positive Summary
  • Andhellip
  • MDG Impacts of Placer Dome in South Africa
  • One thing leads to another
  • PNG HIVAIDS
  • PNG Outcomes (or outputs ndash Irsquom never sure)
  • Slide Number 76
  • PNG AIDS mission to South Africa
  • MDG Impacts of PNG HIVAIDS work
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • MDG Impacts of Eldorado Gold
  • Underwater Logging in Ghana
  • Private Sector and International Development
  • Group Exercise
  • Slide Number 87
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • What we covered
  • Session Objectives
  • Session Objectives
  • Remember
Page 80: Private Sector Contributions To International Development – McGill Executive Education Program Lecture

waynewaynedunncom

Eldorado Gold in Turkey

Isolated rural area Nearly half of nearby

communities opposed to mine development Agriculture primary

economic activity in rural communities ndash smallmicro family farms

waynewaynedunncom

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

waynewaynedunncom

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 $075 to $1325 Opened second mine in Turkey

bull Able to deal with controversial watershed issues after relationship success in Usak

waynewaynedunncom Slide 83

MDG Impacts of Eldorado Gold

1 Poverty and hunger (minimal) 2 Some impact on primary education (peripheral) 3 Promote gender equality and empower women 4 Reduce child mortality 5 Improve maternal health 6 Combat HIVAIDS malaria and other diseass 7 Ensure environmental sustainability 8 Develop a global partnership for development

(Placer Dome CIDA Civil Society NGOs)

waynewaynedunncom

Underwater Logging in Ghana

waynewaynedunncom

Private Sector and International Development

Private sector especially resource extraction has a very mixed record bull Some horrendous disasters (Nigeria Warao Peoples in

Venezuela etc) bull Some great successes (Placer Dome Care project

mining and HIVAIDS 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

waynewaynedunncom

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

interestsobjectives overlap

waynewaynedunncom

SDCSR Implementation Challenges

more than a warm fuzzy issue Spending isnrsquot the answer

Plan

Framework

System

Results

Solving social problems Objectives

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Beyond Beads and Trinkets ndash BC Mining Review

A lsquohow torsquo article on mining and CSR

Wayne Dunn

BP Venezuela Indigenous Relations ndash Meeting the Challenge Responsibly and Sustainably

Situational assessment and strategic plan for BP Venezuela Authorized for release by BP

Wayne Dunn

Cameco Community Relations Report

Situational assessment and management strategy Authorized for release by Cameco

Wayne Dunn

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author Beyond Beads lsquon Trinkets A systematic approach to managing community relations

A conference paper describing a systematic approach to community relations management helping companies to methodically develop mutually beneficial relationships with local communities and interests (this is one of the earliest papers on this subject ndash written in 1998)

Wayne Dunn

The costs of conflict with local communities in the extractive industry

Analysis of the cost of community conflicts in the Extractive Sector

Rachel Davis and Daniel M Franks

Creating Shared Value

Harvard Business Review interview with Michael Porter

Video

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Social License Its all about value

Discussion on Social License and shareholder Value

Wayne Dunn

Its about Development Commentary on the CIDAMining Company issue

Wayne Dunn

Integrating corporate strategy and social responsibilitymdashmarket returns from stakeholder engagement

Discussion and analysis on market returns on stakeholder engagement

Witold J Henisz Sinziana Dorobantu and Lite J Narty

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

McGill Reporter ndash Four Burning Questions Wayne Dunn on CSR

Discussion on CSR Wayne Dunn

Miningrsquos contribution to sustainable development ndashan overview

Discussion paper prepared by the International Council on Mining and Metals

Millennium Development Goals

United Nations

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Mining and Agriculture Development

A short lsquohow torsquo guide for mining projects to engage with the local agriculture sector

Al Hingston

PDSA Social Value Brochure

Brochure on social value created by Placer Dome South Africa

Placer Dome

The Value of Social License

Opinion piece published in Northern Miner

Wayne Dunn

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Golden Opportunity When a Canadian multinational laid off hundreds of gold miners in South Africa it went many extra miles to help them get back on their feet

Stanford Business School Case Study on Placer Dome in South Africa

Wayne Dunn

The Changing Resource Development Paradigm Maximizing Sustainable Local Benefits from Resource Development

Strategic thought piece prepared for the government of British Columbia Canada

Wayne Dunn

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

The Disappearing Barriers Between Business And Non-profits Are Driving Innovation

Discussion paper

Katherine Pikus

When Condoms are not enough

World Bank staff magazine article on Placer Dome and South African mining industryrsquos work with HIVAIDS

Craig Andrews

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

MINING AND LOCAL ECONOMIC DEVELOPMENT IN PAPUA NEW GUINEA Preliminary Research on a Potential Pilot Project in Porgera and Lihir

Strategic research and action plan on mining and local economic development in Papua New Guinea prepared for the World Bank

Wayne Dunn

waynewaynedunncom

What we covered

We 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) Publicprivatecivil society collaboration ndash case study

and discussion (CIDA and Mining Companies) Open discussion on topics of interest (time permitting)

waynewaynedunncom

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 howwhy 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

waynewaynedunncom

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 howwhy 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

waynewaynedunncom

Alignment around Shared Value For shareholders For Communities For People For Governments

Private Sector Contributions To International Development

Remember

  • Private Sector Contributions To International Development
  • Session Objectives
  • Map of the morning How we will try to meet the objectives
  • Slide Number 4
  • What is ODA and FDI
  • What is ODA and FDI
  • Why discuss Private Sector Contribution anyway
  • FDIBusiness Outcomes
  • Intention and Strategy Make a Difference
  • Why does the private sector care
  • Community Consultation and Value
  • Itrsquos Real Money
  • CSR is a Value Strategy
  • Social License Failures cost
  • Why is CSR happening
  • The Mining World Has Changed
  • CSR is a complicated space
  • CSR amp Social License
  • Role of business is changing (click image to play video)
  • Case Studies (of successes)
  • Slide Number 21
  • Uranium Industry in Northern Saskatchewan
  • Challenging area
  • Challenging Times
  • Cameco in 1998
  • Cameco in Northern Saskatchewan (2010)
  • So how did Cameco and the industry do it
  • Placer Dome South Africa
  • Slide Number 29
  • Background
  • Background (cont)
  • Families amp Communities must benefit from mining
  • The Care Project
  • Implications
  • Slide Number 35
  • The Initial 4-Step Plan
  • Reality was different than we expected
  • Reality was different than expected
  • Meeting the challenges
  • TheProcess
  • Some results
  • Chicken raising business
  • Furniture making
  • Unique training programs
  • Rice farming in Mozambique
  • Spaza (convenience) shop
  • And the business value ishellip
  • Slide Number 48
  • What was in it for Placer Dome
  • And then there is HIVAIDS
  • HIVAIDS Facts (in 2000)
  • HIVAIDS Impact
  • HIVAIDS and Gold Mining
  • HIVAIDS Programming
  • Minesite Program
  • Minesite Program
  • Current Community Program
  • Community Mobile Clinic
  • And when HIV prevention doesnrsquot work
  • Industry Home Based Care
  • Home Based Care
  • INDUSTRY HOME BASED CARE RESULTS(Year One)
  • Overview of Placer Dome AIDS Programming
  • Slide Number 64
  • HIVAIDS and Rural Areas
  • HIVAIDS and Rural Areas
  • Reputational Results for Placer Dome
  • Where to next
  • Planned Program
  • Care Positive Summary
  • Andhellip
  • MDG Impacts of Placer Dome in South Africa
  • One thing leads to another
  • PNG HIVAIDS
  • PNG Outcomes (or outputs ndash Irsquom never sure)
  • Slide Number 76
  • PNG AIDS mission to South Africa
  • MDG Impacts of PNG HIVAIDS work
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • MDG Impacts of Eldorado Gold
  • Underwater Logging in Ghana
  • Private Sector and International Development
  • Group Exercise
  • Slide Number 87
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • What we covered
  • Session Objectives
  • Session Objectives
  • Remember
Page 81: Private Sector Contributions To International Development – McGill Executive Education Program Lecture

waynewaynedunncom

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

waynewaynedunncom

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 $075 to $1325 Opened second mine in Turkey

bull Able to deal with controversial watershed issues after relationship success in Usak

waynewaynedunncom Slide 83

MDG Impacts of Eldorado Gold

1 Poverty and hunger (minimal) 2 Some impact on primary education (peripheral) 3 Promote gender equality and empower women 4 Reduce child mortality 5 Improve maternal health 6 Combat HIVAIDS malaria and other diseass 7 Ensure environmental sustainability 8 Develop a global partnership for development

(Placer Dome CIDA Civil Society NGOs)

waynewaynedunncom

Underwater Logging in Ghana

waynewaynedunncom

Private Sector and International Development

Private sector especially resource extraction has a very mixed record bull Some horrendous disasters (Nigeria Warao Peoples in

Venezuela etc) bull Some great successes (Placer Dome Care project

mining and HIVAIDS 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

waynewaynedunncom

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

interestsobjectives overlap

waynewaynedunncom

SDCSR Implementation Challenges

more than a warm fuzzy issue Spending isnrsquot the answer

Plan

Framework

System

Results

Solving social problems Objectives

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Beyond Beads and Trinkets ndash BC Mining Review

A lsquohow torsquo article on mining and CSR

Wayne Dunn

BP Venezuela Indigenous Relations ndash Meeting the Challenge Responsibly and Sustainably

Situational assessment and strategic plan for BP Venezuela Authorized for release by BP

Wayne Dunn

Cameco Community Relations Report

Situational assessment and management strategy Authorized for release by Cameco

Wayne Dunn

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author Beyond Beads lsquon Trinkets A systematic approach to managing community relations

A conference paper describing a systematic approach to community relations management helping companies to methodically develop mutually beneficial relationships with local communities and interests (this is one of the earliest papers on this subject ndash written in 1998)

Wayne Dunn

The costs of conflict with local communities in the extractive industry

Analysis of the cost of community conflicts in the Extractive Sector

Rachel Davis and Daniel M Franks

Creating Shared Value

Harvard Business Review interview with Michael Porter

Video

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Social License Its all about value

Discussion on Social License and shareholder Value

Wayne Dunn

Its about Development Commentary on the CIDAMining Company issue

Wayne Dunn

Integrating corporate strategy and social responsibilitymdashmarket returns from stakeholder engagement

Discussion and analysis on market returns on stakeholder engagement

Witold J Henisz Sinziana Dorobantu and Lite J Narty

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

McGill Reporter ndash Four Burning Questions Wayne Dunn on CSR

Discussion on CSR Wayne Dunn

Miningrsquos contribution to sustainable development ndashan overview

Discussion paper prepared by the International Council on Mining and Metals

Millennium Development Goals

United Nations

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Mining and Agriculture Development

A short lsquohow torsquo guide for mining projects to engage with the local agriculture sector

Al Hingston

PDSA Social Value Brochure

Brochure on social value created by Placer Dome South Africa

Placer Dome

The Value of Social License

Opinion piece published in Northern Miner

Wayne Dunn

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Golden Opportunity When a Canadian multinational laid off hundreds of gold miners in South Africa it went many extra miles to help them get back on their feet

Stanford Business School Case Study on Placer Dome in South Africa

Wayne Dunn

The Changing Resource Development Paradigm Maximizing Sustainable Local Benefits from Resource Development

Strategic thought piece prepared for the government of British Columbia Canada

Wayne Dunn

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

The Disappearing Barriers Between Business And Non-profits Are Driving Innovation

Discussion paper

Katherine Pikus

When Condoms are not enough

World Bank staff magazine article on Placer Dome and South African mining industryrsquos work with HIVAIDS

Craig Andrews

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

MINING AND LOCAL ECONOMIC DEVELOPMENT IN PAPUA NEW GUINEA Preliminary Research on a Potential Pilot Project in Porgera and Lihir

Strategic research and action plan on mining and local economic development in Papua New Guinea prepared for the World Bank

Wayne Dunn

waynewaynedunncom

What we covered

We 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) Publicprivatecivil society collaboration ndash case study

and discussion (CIDA and Mining Companies) Open discussion on topics of interest (time permitting)

waynewaynedunncom

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 howwhy 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

waynewaynedunncom

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 howwhy 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

waynewaynedunncom

Alignment around Shared Value For shareholders For Communities For People For Governments

Private Sector Contributions To International Development

Remember

  • Private Sector Contributions To International Development
  • Session Objectives
  • Map of the morning How we will try to meet the objectives
  • Slide Number 4
  • What is ODA and FDI
  • What is ODA and FDI
  • Why discuss Private Sector Contribution anyway
  • FDIBusiness Outcomes
  • Intention and Strategy Make a Difference
  • Why does the private sector care
  • Community Consultation and Value
  • Itrsquos Real Money
  • CSR is a Value Strategy
  • Social License Failures cost
  • Why is CSR happening
  • The Mining World Has Changed
  • CSR is a complicated space
  • CSR amp Social License
  • Role of business is changing (click image to play video)
  • Case Studies (of successes)
  • Slide Number 21
  • Uranium Industry in Northern Saskatchewan
  • Challenging area
  • Challenging Times
  • Cameco in 1998
  • Cameco in Northern Saskatchewan (2010)
  • So how did Cameco and the industry do it
  • Placer Dome South Africa
  • Slide Number 29
  • Background
  • Background (cont)
  • Families amp Communities must benefit from mining
  • The Care Project
  • Implications
  • Slide Number 35
  • The Initial 4-Step Plan
  • Reality was different than we expected
  • Reality was different than expected
  • Meeting the challenges
  • TheProcess
  • Some results
  • Chicken raising business
  • Furniture making
  • Unique training programs
  • Rice farming in Mozambique
  • Spaza (convenience) shop
  • And the business value ishellip
  • Slide Number 48
  • What was in it for Placer Dome
  • And then there is HIVAIDS
  • HIVAIDS Facts (in 2000)
  • HIVAIDS Impact
  • HIVAIDS and Gold Mining
  • HIVAIDS Programming
  • Minesite Program
  • Minesite Program
  • Current Community Program
  • Community Mobile Clinic
  • And when HIV prevention doesnrsquot work
  • Industry Home Based Care
  • Home Based Care
  • INDUSTRY HOME BASED CARE RESULTS(Year One)
  • Overview of Placer Dome AIDS Programming
  • Slide Number 64
  • HIVAIDS and Rural Areas
  • HIVAIDS and Rural Areas
  • Reputational Results for Placer Dome
  • Where to next
  • Planned Program
  • Care Positive Summary
  • Andhellip
  • MDG Impacts of Placer Dome in South Africa
  • One thing leads to another
  • PNG HIVAIDS
  • PNG Outcomes (or outputs ndash Irsquom never sure)
  • Slide Number 76
  • PNG AIDS mission to South Africa
  • MDG Impacts of PNG HIVAIDS work
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • MDG Impacts of Eldorado Gold
  • Underwater Logging in Ghana
  • Private Sector and International Development
  • Group Exercise
  • Slide Number 87
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • What we covered
  • Session Objectives
  • Session Objectives
  • Remember
Page 82: Private Sector Contributions To International Development – McGill Executive Education Program Lecture

waynewaynedunncom

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 $075 to $1325 Opened second mine in Turkey

bull Able to deal with controversial watershed issues after relationship success in Usak

waynewaynedunncom Slide 83

MDG Impacts of Eldorado Gold

1 Poverty and hunger (minimal) 2 Some impact on primary education (peripheral) 3 Promote gender equality and empower women 4 Reduce child mortality 5 Improve maternal health 6 Combat HIVAIDS malaria and other diseass 7 Ensure environmental sustainability 8 Develop a global partnership for development

(Placer Dome CIDA Civil Society NGOs)

waynewaynedunncom

Underwater Logging in Ghana

waynewaynedunncom

Private Sector and International Development

Private sector especially resource extraction has a very mixed record bull Some horrendous disasters (Nigeria Warao Peoples in

Venezuela etc) bull Some great successes (Placer Dome Care project

mining and HIVAIDS 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

waynewaynedunncom

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

interestsobjectives overlap

waynewaynedunncom

SDCSR Implementation Challenges

more than a warm fuzzy issue Spending isnrsquot the answer

Plan

Framework

System

Results

Solving social problems Objectives

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Beyond Beads and Trinkets ndash BC Mining Review

A lsquohow torsquo article on mining and CSR

Wayne Dunn

BP Venezuela Indigenous Relations ndash Meeting the Challenge Responsibly and Sustainably

Situational assessment and strategic plan for BP Venezuela Authorized for release by BP

Wayne Dunn

Cameco Community Relations Report

Situational assessment and management strategy Authorized for release by Cameco

Wayne Dunn

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author Beyond Beads lsquon Trinkets A systematic approach to managing community relations

A conference paper describing a systematic approach to community relations management helping companies to methodically develop mutually beneficial relationships with local communities and interests (this is one of the earliest papers on this subject ndash written in 1998)

Wayne Dunn

The costs of conflict with local communities in the extractive industry

Analysis of the cost of community conflicts in the Extractive Sector

Rachel Davis and Daniel M Franks

Creating Shared Value

Harvard Business Review interview with Michael Porter

Video

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Social License Its all about value

Discussion on Social License and shareholder Value

Wayne Dunn

Its about Development Commentary on the CIDAMining Company issue

Wayne Dunn

Integrating corporate strategy and social responsibilitymdashmarket returns from stakeholder engagement

Discussion and analysis on market returns on stakeholder engagement

Witold J Henisz Sinziana Dorobantu and Lite J Narty

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

McGill Reporter ndash Four Burning Questions Wayne Dunn on CSR

Discussion on CSR Wayne Dunn

Miningrsquos contribution to sustainable development ndashan overview

Discussion paper prepared by the International Council on Mining and Metals

Millennium Development Goals

United Nations

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Mining and Agriculture Development

A short lsquohow torsquo guide for mining projects to engage with the local agriculture sector

Al Hingston

PDSA Social Value Brochure

Brochure on social value created by Placer Dome South Africa

Placer Dome

The Value of Social License

Opinion piece published in Northern Miner

Wayne Dunn

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Golden Opportunity When a Canadian multinational laid off hundreds of gold miners in South Africa it went many extra miles to help them get back on their feet

Stanford Business School Case Study on Placer Dome in South Africa

Wayne Dunn

The Changing Resource Development Paradigm Maximizing Sustainable Local Benefits from Resource Development

Strategic thought piece prepared for the government of British Columbia Canada

Wayne Dunn

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

The Disappearing Barriers Between Business And Non-profits Are Driving Innovation

Discussion paper

Katherine Pikus

When Condoms are not enough

World Bank staff magazine article on Placer Dome and South African mining industryrsquos work with HIVAIDS

Craig Andrews

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

MINING AND LOCAL ECONOMIC DEVELOPMENT IN PAPUA NEW GUINEA Preliminary Research on a Potential Pilot Project in Porgera and Lihir

Strategic research and action plan on mining and local economic development in Papua New Guinea prepared for the World Bank

Wayne Dunn

waynewaynedunncom

What we covered

We 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) Publicprivatecivil society collaboration ndash case study

and discussion (CIDA and Mining Companies) Open discussion on topics of interest (time permitting)

waynewaynedunncom

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 howwhy 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

waynewaynedunncom

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 howwhy 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

waynewaynedunncom

Alignment around Shared Value For shareholders For Communities For People For Governments

Private Sector Contributions To International Development

Remember

  • Private Sector Contributions To International Development
  • Session Objectives
  • Map of the morning How we will try to meet the objectives
  • Slide Number 4
  • What is ODA and FDI
  • What is ODA and FDI
  • Why discuss Private Sector Contribution anyway
  • FDIBusiness Outcomes
  • Intention and Strategy Make a Difference
  • Why does the private sector care
  • Community Consultation and Value
  • Itrsquos Real Money
  • CSR is a Value Strategy
  • Social License Failures cost
  • Why is CSR happening
  • The Mining World Has Changed
  • CSR is a complicated space
  • CSR amp Social License
  • Role of business is changing (click image to play video)
  • Case Studies (of successes)
  • Slide Number 21
  • Uranium Industry in Northern Saskatchewan
  • Challenging area
  • Challenging Times
  • Cameco in 1998
  • Cameco in Northern Saskatchewan (2010)
  • So how did Cameco and the industry do it
  • Placer Dome South Africa
  • Slide Number 29
  • Background
  • Background (cont)
  • Families amp Communities must benefit from mining
  • The Care Project
  • Implications
  • Slide Number 35
  • The Initial 4-Step Plan
  • Reality was different than we expected
  • Reality was different than expected
  • Meeting the challenges
  • TheProcess
  • Some results
  • Chicken raising business
  • Furniture making
  • Unique training programs
  • Rice farming in Mozambique
  • Spaza (convenience) shop
  • And the business value ishellip
  • Slide Number 48
  • What was in it for Placer Dome
  • And then there is HIVAIDS
  • HIVAIDS Facts (in 2000)
  • HIVAIDS Impact
  • HIVAIDS and Gold Mining
  • HIVAIDS Programming
  • Minesite Program
  • Minesite Program
  • Current Community Program
  • Community Mobile Clinic
  • And when HIV prevention doesnrsquot work
  • Industry Home Based Care
  • Home Based Care
  • INDUSTRY HOME BASED CARE RESULTS(Year One)
  • Overview of Placer Dome AIDS Programming
  • Slide Number 64
  • HIVAIDS and Rural Areas
  • HIVAIDS and Rural Areas
  • Reputational Results for Placer Dome
  • Where to next
  • Planned Program
  • Care Positive Summary
  • Andhellip
  • MDG Impacts of Placer Dome in South Africa
  • One thing leads to another
  • PNG HIVAIDS
  • PNG Outcomes (or outputs ndash Irsquom never sure)
  • Slide Number 76
  • PNG AIDS mission to South Africa
  • MDG Impacts of PNG HIVAIDS work
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • MDG Impacts of Eldorado Gold
  • Underwater Logging in Ghana
  • Private Sector and International Development
  • Group Exercise
  • Slide Number 87
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • What we covered
  • Session Objectives
  • Session Objectives
  • Remember
Page 83: Private Sector Contributions To International Development – McGill Executive Education Program Lecture

waynewaynedunncom Slide 83

MDG Impacts of Eldorado Gold

1 Poverty and hunger (minimal) 2 Some impact on primary education (peripheral) 3 Promote gender equality and empower women 4 Reduce child mortality 5 Improve maternal health 6 Combat HIVAIDS malaria and other diseass 7 Ensure environmental sustainability 8 Develop a global partnership for development

(Placer Dome CIDA Civil Society NGOs)

waynewaynedunncom

Underwater Logging in Ghana

waynewaynedunncom

Private Sector and International Development

Private sector especially resource extraction has a very mixed record bull Some horrendous disasters (Nigeria Warao Peoples in

Venezuela etc) bull Some great successes (Placer Dome Care project

mining and HIVAIDS 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

waynewaynedunncom

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

interestsobjectives overlap

waynewaynedunncom

SDCSR Implementation Challenges

more than a warm fuzzy issue Spending isnrsquot the answer

Plan

Framework

System

Results

Solving social problems Objectives

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Beyond Beads and Trinkets ndash BC Mining Review

A lsquohow torsquo article on mining and CSR

Wayne Dunn

BP Venezuela Indigenous Relations ndash Meeting the Challenge Responsibly and Sustainably

Situational assessment and strategic plan for BP Venezuela Authorized for release by BP

Wayne Dunn

Cameco Community Relations Report

Situational assessment and management strategy Authorized for release by Cameco

Wayne Dunn

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author Beyond Beads lsquon Trinkets A systematic approach to managing community relations

A conference paper describing a systematic approach to community relations management helping companies to methodically develop mutually beneficial relationships with local communities and interests (this is one of the earliest papers on this subject ndash written in 1998)

Wayne Dunn

The costs of conflict with local communities in the extractive industry

Analysis of the cost of community conflicts in the Extractive Sector

Rachel Davis and Daniel M Franks

Creating Shared Value

Harvard Business Review interview with Michael Porter

Video

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Social License Its all about value

Discussion on Social License and shareholder Value

Wayne Dunn

Its about Development Commentary on the CIDAMining Company issue

Wayne Dunn

Integrating corporate strategy and social responsibilitymdashmarket returns from stakeholder engagement

Discussion and analysis on market returns on stakeholder engagement

Witold J Henisz Sinziana Dorobantu and Lite J Narty

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

McGill Reporter ndash Four Burning Questions Wayne Dunn on CSR

Discussion on CSR Wayne Dunn

Miningrsquos contribution to sustainable development ndashan overview

Discussion paper prepared by the International Council on Mining and Metals

Millennium Development Goals

United Nations

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Mining and Agriculture Development

A short lsquohow torsquo guide for mining projects to engage with the local agriculture sector

Al Hingston

PDSA Social Value Brochure

Brochure on social value created by Placer Dome South Africa

Placer Dome

The Value of Social License

Opinion piece published in Northern Miner

Wayne Dunn

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Golden Opportunity When a Canadian multinational laid off hundreds of gold miners in South Africa it went many extra miles to help them get back on their feet

Stanford Business School Case Study on Placer Dome in South Africa

Wayne Dunn

The Changing Resource Development Paradigm Maximizing Sustainable Local Benefits from Resource Development

Strategic thought piece prepared for the government of British Columbia Canada

Wayne Dunn

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

The Disappearing Barriers Between Business And Non-profits Are Driving Innovation

Discussion paper

Katherine Pikus

When Condoms are not enough

World Bank staff magazine article on Placer Dome and South African mining industryrsquos work with HIVAIDS

Craig Andrews

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

MINING AND LOCAL ECONOMIC DEVELOPMENT IN PAPUA NEW GUINEA Preliminary Research on a Potential Pilot Project in Porgera and Lihir

Strategic research and action plan on mining and local economic development in Papua New Guinea prepared for the World Bank

Wayne Dunn

waynewaynedunncom

What we covered

We 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) Publicprivatecivil society collaboration ndash case study

and discussion (CIDA and Mining Companies) Open discussion on topics of interest (time permitting)

waynewaynedunncom

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 howwhy 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

waynewaynedunncom

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 howwhy 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

waynewaynedunncom

Alignment around Shared Value For shareholders For Communities For People For Governments

Private Sector Contributions To International Development

Remember

  • Private Sector Contributions To International Development
  • Session Objectives
  • Map of the morning How we will try to meet the objectives
  • Slide Number 4
  • What is ODA and FDI
  • What is ODA and FDI
  • Why discuss Private Sector Contribution anyway
  • FDIBusiness Outcomes
  • Intention and Strategy Make a Difference
  • Why does the private sector care
  • Community Consultation and Value
  • Itrsquos Real Money
  • CSR is a Value Strategy
  • Social License Failures cost
  • Why is CSR happening
  • The Mining World Has Changed
  • CSR is a complicated space
  • CSR amp Social License
  • Role of business is changing (click image to play video)
  • Case Studies (of successes)
  • Slide Number 21
  • Uranium Industry in Northern Saskatchewan
  • Challenging area
  • Challenging Times
  • Cameco in 1998
  • Cameco in Northern Saskatchewan (2010)
  • So how did Cameco and the industry do it
  • Placer Dome South Africa
  • Slide Number 29
  • Background
  • Background (cont)
  • Families amp Communities must benefit from mining
  • The Care Project
  • Implications
  • Slide Number 35
  • The Initial 4-Step Plan
  • Reality was different than we expected
  • Reality was different than expected
  • Meeting the challenges
  • TheProcess
  • Some results
  • Chicken raising business
  • Furniture making
  • Unique training programs
  • Rice farming in Mozambique
  • Spaza (convenience) shop
  • And the business value ishellip
  • Slide Number 48
  • What was in it for Placer Dome
  • And then there is HIVAIDS
  • HIVAIDS Facts (in 2000)
  • HIVAIDS Impact
  • HIVAIDS and Gold Mining
  • HIVAIDS Programming
  • Minesite Program
  • Minesite Program
  • Current Community Program
  • Community Mobile Clinic
  • And when HIV prevention doesnrsquot work
  • Industry Home Based Care
  • Home Based Care
  • INDUSTRY HOME BASED CARE RESULTS(Year One)
  • Overview of Placer Dome AIDS Programming
  • Slide Number 64
  • HIVAIDS and Rural Areas
  • HIVAIDS and Rural Areas
  • Reputational Results for Placer Dome
  • Where to next
  • Planned Program
  • Care Positive Summary
  • Andhellip
  • MDG Impacts of Placer Dome in South Africa
  • One thing leads to another
  • PNG HIVAIDS
  • PNG Outcomes (or outputs ndash Irsquom never sure)
  • Slide Number 76
  • PNG AIDS mission to South Africa
  • MDG Impacts of PNG HIVAIDS work
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • MDG Impacts of Eldorado Gold
  • Underwater Logging in Ghana
  • Private Sector and International Development
  • Group Exercise
  • Slide Number 87
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • What we covered
  • Session Objectives
  • Session Objectives
  • Remember
Page 84: Private Sector Contributions To International Development – McGill Executive Education Program Lecture

waynewaynedunncom

Underwater Logging in Ghana

waynewaynedunncom

Private Sector and International Development

Private sector especially resource extraction has a very mixed record bull Some horrendous disasters (Nigeria Warao Peoples in

Venezuela etc) bull Some great successes (Placer Dome Care project

mining and HIVAIDS 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

waynewaynedunncom

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

interestsobjectives overlap

waynewaynedunncom

SDCSR Implementation Challenges

more than a warm fuzzy issue Spending isnrsquot the answer

Plan

Framework

System

Results

Solving social problems Objectives

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Beyond Beads and Trinkets ndash BC Mining Review

A lsquohow torsquo article on mining and CSR

Wayne Dunn

BP Venezuela Indigenous Relations ndash Meeting the Challenge Responsibly and Sustainably

Situational assessment and strategic plan for BP Venezuela Authorized for release by BP

Wayne Dunn

Cameco Community Relations Report

Situational assessment and management strategy Authorized for release by Cameco

Wayne Dunn

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author Beyond Beads lsquon Trinkets A systematic approach to managing community relations

A conference paper describing a systematic approach to community relations management helping companies to methodically develop mutually beneficial relationships with local communities and interests (this is one of the earliest papers on this subject ndash written in 1998)

Wayne Dunn

The costs of conflict with local communities in the extractive industry

Analysis of the cost of community conflicts in the Extractive Sector

Rachel Davis and Daniel M Franks

Creating Shared Value

Harvard Business Review interview with Michael Porter

Video

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Social License Its all about value

Discussion on Social License and shareholder Value

Wayne Dunn

Its about Development Commentary on the CIDAMining Company issue

Wayne Dunn

Integrating corporate strategy and social responsibilitymdashmarket returns from stakeholder engagement

Discussion and analysis on market returns on stakeholder engagement

Witold J Henisz Sinziana Dorobantu and Lite J Narty

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

McGill Reporter ndash Four Burning Questions Wayne Dunn on CSR

Discussion on CSR Wayne Dunn

Miningrsquos contribution to sustainable development ndashan overview

Discussion paper prepared by the International Council on Mining and Metals

Millennium Development Goals

United Nations

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Mining and Agriculture Development

A short lsquohow torsquo guide for mining projects to engage with the local agriculture sector

Al Hingston

PDSA Social Value Brochure

Brochure on social value created by Placer Dome South Africa

Placer Dome

The Value of Social License

Opinion piece published in Northern Miner

Wayne Dunn

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Golden Opportunity When a Canadian multinational laid off hundreds of gold miners in South Africa it went many extra miles to help them get back on their feet

Stanford Business School Case Study on Placer Dome in South Africa

Wayne Dunn

The Changing Resource Development Paradigm Maximizing Sustainable Local Benefits from Resource Development

Strategic thought piece prepared for the government of British Columbia Canada

Wayne Dunn

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

The Disappearing Barriers Between Business And Non-profits Are Driving Innovation

Discussion paper

Katherine Pikus

When Condoms are not enough

World Bank staff magazine article on Placer Dome and South African mining industryrsquos work with HIVAIDS

Craig Andrews

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

MINING AND LOCAL ECONOMIC DEVELOPMENT IN PAPUA NEW GUINEA Preliminary Research on a Potential Pilot Project in Porgera and Lihir

Strategic research and action plan on mining and local economic development in Papua New Guinea prepared for the World Bank

Wayne Dunn

waynewaynedunncom

What we covered

We 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) Publicprivatecivil society collaboration ndash case study

and discussion (CIDA and Mining Companies) Open discussion on topics of interest (time permitting)

waynewaynedunncom

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 howwhy 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

waynewaynedunncom

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 howwhy 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

waynewaynedunncom

Alignment around Shared Value For shareholders For Communities For People For Governments

Private Sector Contributions To International Development

Remember

  • Private Sector Contributions To International Development
  • Session Objectives
  • Map of the morning How we will try to meet the objectives
  • Slide Number 4
  • What is ODA and FDI
  • What is ODA and FDI
  • Why discuss Private Sector Contribution anyway
  • FDIBusiness Outcomes
  • Intention and Strategy Make a Difference
  • Why does the private sector care
  • Community Consultation and Value
  • Itrsquos Real Money
  • CSR is a Value Strategy
  • Social License Failures cost
  • Why is CSR happening
  • The Mining World Has Changed
  • CSR is a complicated space
  • CSR amp Social License
  • Role of business is changing (click image to play video)
  • Case Studies (of successes)
  • Slide Number 21
  • Uranium Industry in Northern Saskatchewan
  • Challenging area
  • Challenging Times
  • Cameco in 1998
  • Cameco in Northern Saskatchewan (2010)
  • So how did Cameco and the industry do it
  • Placer Dome South Africa
  • Slide Number 29
  • Background
  • Background (cont)
  • Families amp Communities must benefit from mining
  • The Care Project
  • Implications
  • Slide Number 35
  • The Initial 4-Step Plan
  • Reality was different than we expected
  • Reality was different than expected
  • Meeting the challenges
  • TheProcess
  • Some results
  • Chicken raising business
  • Furniture making
  • Unique training programs
  • Rice farming in Mozambique
  • Spaza (convenience) shop
  • And the business value ishellip
  • Slide Number 48
  • What was in it for Placer Dome
  • And then there is HIVAIDS
  • HIVAIDS Facts (in 2000)
  • HIVAIDS Impact
  • HIVAIDS and Gold Mining
  • HIVAIDS Programming
  • Minesite Program
  • Minesite Program
  • Current Community Program
  • Community Mobile Clinic
  • And when HIV prevention doesnrsquot work
  • Industry Home Based Care
  • Home Based Care
  • INDUSTRY HOME BASED CARE RESULTS(Year One)
  • Overview of Placer Dome AIDS Programming
  • Slide Number 64
  • HIVAIDS and Rural Areas
  • HIVAIDS and Rural Areas
  • Reputational Results for Placer Dome
  • Where to next
  • Planned Program
  • Care Positive Summary
  • Andhellip
  • MDG Impacts of Placer Dome in South Africa
  • One thing leads to another
  • PNG HIVAIDS
  • PNG Outcomes (or outputs ndash Irsquom never sure)
  • Slide Number 76
  • PNG AIDS mission to South Africa
  • MDG Impacts of PNG HIVAIDS work
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • MDG Impacts of Eldorado Gold
  • Underwater Logging in Ghana
  • Private Sector and International Development
  • Group Exercise
  • Slide Number 87
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • What we covered
  • Session Objectives
  • Session Objectives
  • Remember
Page 85: Private Sector Contributions To International Development – McGill Executive Education Program Lecture

waynewaynedunncom

Private Sector and International Development

Private sector especially resource extraction has a very mixed record bull Some horrendous disasters (Nigeria Warao Peoples in

Venezuela etc) bull Some great successes (Placer Dome Care project

mining and HIVAIDS 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

waynewaynedunncom

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

interestsobjectives overlap

waynewaynedunncom

SDCSR Implementation Challenges

more than a warm fuzzy issue Spending isnrsquot the answer

Plan

Framework

System

Results

Solving social problems Objectives

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Beyond Beads and Trinkets ndash BC Mining Review

A lsquohow torsquo article on mining and CSR

Wayne Dunn

BP Venezuela Indigenous Relations ndash Meeting the Challenge Responsibly and Sustainably

Situational assessment and strategic plan for BP Venezuela Authorized for release by BP

Wayne Dunn

Cameco Community Relations Report

Situational assessment and management strategy Authorized for release by Cameco

Wayne Dunn

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author Beyond Beads lsquon Trinkets A systematic approach to managing community relations

A conference paper describing a systematic approach to community relations management helping companies to methodically develop mutually beneficial relationships with local communities and interests (this is one of the earliest papers on this subject ndash written in 1998)

Wayne Dunn

The costs of conflict with local communities in the extractive industry

Analysis of the cost of community conflicts in the Extractive Sector

Rachel Davis and Daniel M Franks

Creating Shared Value

Harvard Business Review interview with Michael Porter

Video

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Social License Its all about value

Discussion on Social License and shareholder Value

Wayne Dunn

Its about Development Commentary on the CIDAMining Company issue

Wayne Dunn

Integrating corporate strategy and social responsibilitymdashmarket returns from stakeholder engagement

Discussion and analysis on market returns on stakeholder engagement

Witold J Henisz Sinziana Dorobantu and Lite J Narty

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

McGill Reporter ndash Four Burning Questions Wayne Dunn on CSR

Discussion on CSR Wayne Dunn

Miningrsquos contribution to sustainable development ndashan overview

Discussion paper prepared by the International Council on Mining and Metals

Millennium Development Goals

United Nations

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Mining and Agriculture Development

A short lsquohow torsquo guide for mining projects to engage with the local agriculture sector

Al Hingston

PDSA Social Value Brochure

Brochure on social value created by Placer Dome South Africa

Placer Dome

The Value of Social License

Opinion piece published in Northern Miner

Wayne Dunn

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Golden Opportunity When a Canadian multinational laid off hundreds of gold miners in South Africa it went many extra miles to help them get back on their feet

Stanford Business School Case Study on Placer Dome in South Africa

Wayne Dunn

The Changing Resource Development Paradigm Maximizing Sustainable Local Benefits from Resource Development

Strategic thought piece prepared for the government of British Columbia Canada

Wayne Dunn

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

The Disappearing Barriers Between Business And Non-profits Are Driving Innovation

Discussion paper

Katherine Pikus

When Condoms are not enough

World Bank staff magazine article on Placer Dome and South African mining industryrsquos work with HIVAIDS

Craig Andrews

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

MINING AND LOCAL ECONOMIC DEVELOPMENT IN PAPUA NEW GUINEA Preliminary Research on a Potential Pilot Project in Porgera and Lihir

Strategic research and action plan on mining and local economic development in Papua New Guinea prepared for the World Bank

Wayne Dunn

waynewaynedunncom

What we covered

We 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) Publicprivatecivil society collaboration ndash case study

and discussion (CIDA and Mining Companies) Open discussion on topics of interest (time permitting)

waynewaynedunncom

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 howwhy 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

waynewaynedunncom

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 howwhy 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

waynewaynedunncom

Alignment around Shared Value For shareholders For Communities For People For Governments

Private Sector Contributions To International Development

Remember

  • Private Sector Contributions To International Development
  • Session Objectives
  • Map of the morning How we will try to meet the objectives
  • Slide Number 4
  • What is ODA and FDI
  • What is ODA and FDI
  • Why discuss Private Sector Contribution anyway
  • FDIBusiness Outcomes
  • Intention and Strategy Make a Difference
  • Why does the private sector care
  • Community Consultation and Value
  • Itrsquos Real Money
  • CSR is a Value Strategy
  • Social License Failures cost
  • Why is CSR happening
  • The Mining World Has Changed
  • CSR is a complicated space
  • CSR amp Social License
  • Role of business is changing (click image to play video)
  • Case Studies (of successes)
  • Slide Number 21
  • Uranium Industry in Northern Saskatchewan
  • Challenging area
  • Challenging Times
  • Cameco in 1998
  • Cameco in Northern Saskatchewan (2010)
  • So how did Cameco and the industry do it
  • Placer Dome South Africa
  • Slide Number 29
  • Background
  • Background (cont)
  • Families amp Communities must benefit from mining
  • The Care Project
  • Implications
  • Slide Number 35
  • The Initial 4-Step Plan
  • Reality was different than we expected
  • Reality was different than expected
  • Meeting the challenges
  • TheProcess
  • Some results
  • Chicken raising business
  • Furniture making
  • Unique training programs
  • Rice farming in Mozambique
  • Spaza (convenience) shop
  • And the business value ishellip
  • Slide Number 48
  • What was in it for Placer Dome
  • And then there is HIVAIDS
  • HIVAIDS Facts (in 2000)
  • HIVAIDS Impact
  • HIVAIDS and Gold Mining
  • HIVAIDS Programming
  • Minesite Program
  • Minesite Program
  • Current Community Program
  • Community Mobile Clinic
  • And when HIV prevention doesnrsquot work
  • Industry Home Based Care
  • Home Based Care
  • INDUSTRY HOME BASED CARE RESULTS(Year One)
  • Overview of Placer Dome AIDS Programming
  • Slide Number 64
  • HIVAIDS and Rural Areas
  • HIVAIDS and Rural Areas
  • Reputational Results for Placer Dome
  • Where to next
  • Planned Program
  • Care Positive Summary
  • Andhellip
  • MDG Impacts of Placer Dome in South Africa
  • One thing leads to another
  • PNG HIVAIDS
  • PNG Outcomes (or outputs ndash Irsquom never sure)
  • Slide Number 76
  • PNG AIDS mission to South Africa
  • MDG Impacts of PNG HIVAIDS work
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • MDG Impacts of Eldorado Gold
  • Underwater Logging in Ghana
  • Private Sector and International Development
  • Group Exercise
  • Slide Number 87
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • What we covered
  • Session Objectives
  • Session Objectives
  • Remember
Page 86: Private Sector Contributions To International Development – McGill Executive Education Program Lecture

waynewaynedunncom

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

interestsobjectives overlap

waynewaynedunncom

SDCSR Implementation Challenges

more than a warm fuzzy issue Spending isnrsquot the answer

Plan

Framework

System

Results

Solving social problems Objectives

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Beyond Beads and Trinkets ndash BC Mining Review

A lsquohow torsquo article on mining and CSR

Wayne Dunn

BP Venezuela Indigenous Relations ndash Meeting the Challenge Responsibly and Sustainably

Situational assessment and strategic plan for BP Venezuela Authorized for release by BP

Wayne Dunn

Cameco Community Relations Report

Situational assessment and management strategy Authorized for release by Cameco

Wayne Dunn

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author Beyond Beads lsquon Trinkets A systematic approach to managing community relations

A conference paper describing a systematic approach to community relations management helping companies to methodically develop mutually beneficial relationships with local communities and interests (this is one of the earliest papers on this subject ndash written in 1998)

Wayne Dunn

The costs of conflict with local communities in the extractive industry

Analysis of the cost of community conflicts in the Extractive Sector

Rachel Davis and Daniel M Franks

Creating Shared Value

Harvard Business Review interview with Michael Porter

Video

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Social License Its all about value

Discussion on Social License and shareholder Value

Wayne Dunn

Its about Development Commentary on the CIDAMining Company issue

Wayne Dunn

Integrating corporate strategy and social responsibilitymdashmarket returns from stakeholder engagement

Discussion and analysis on market returns on stakeholder engagement

Witold J Henisz Sinziana Dorobantu and Lite J Narty

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

McGill Reporter ndash Four Burning Questions Wayne Dunn on CSR

Discussion on CSR Wayne Dunn

Miningrsquos contribution to sustainable development ndashan overview

Discussion paper prepared by the International Council on Mining and Metals

Millennium Development Goals

United Nations

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Mining and Agriculture Development

A short lsquohow torsquo guide for mining projects to engage with the local agriculture sector

Al Hingston

PDSA Social Value Brochure

Brochure on social value created by Placer Dome South Africa

Placer Dome

The Value of Social License

Opinion piece published in Northern Miner

Wayne Dunn

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Golden Opportunity When a Canadian multinational laid off hundreds of gold miners in South Africa it went many extra miles to help them get back on their feet

Stanford Business School Case Study on Placer Dome in South Africa

Wayne Dunn

The Changing Resource Development Paradigm Maximizing Sustainable Local Benefits from Resource Development

Strategic thought piece prepared for the government of British Columbia Canada

Wayne Dunn

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

The Disappearing Barriers Between Business And Non-profits Are Driving Innovation

Discussion paper

Katherine Pikus

When Condoms are not enough

World Bank staff magazine article on Placer Dome and South African mining industryrsquos work with HIVAIDS

Craig Andrews

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

MINING AND LOCAL ECONOMIC DEVELOPMENT IN PAPUA NEW GUINEA Preliminary Research on a Potential Pilot Project in Porgera and Lihir

Strategic research and action plan on mining and local economic development in Papua New Guinea prepared for the World Bank

Wayne Dunn

waynewaynedunncom

What we covered

We 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) Publicprivatecivil society collaboration ndash case study

and discussion (CIDA and Mining Companies) Open discussion on topics of interest (time permitting)

waynewaynedunncom

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 howwhy 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

waynewaynedunncom

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 howwhy 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

waynewaynedunncom

Alignment around Shared Value For shareholders For Communities For People For Governments

Private Sector Contributions To International Development

Remember

  • Private Sector Contributions To International Development
  • Session Objectives
  • Map of the morning How we will try to meet the objectives
  • Slide Number 4
  • What is ODA and FDI
  • What is ODA and FDI
  • Why discuss Private Sector Contribution anyway
  • FDIBusiness Outcomes
  • Intention and Strategy Make a Difference
  • Why does the private sector care
  • Community Consultation and Value
  • Itrsquos Real Money
  • CSR is a Value Strategy
  • Social License Failures cost
  • Why is CSR happening
  • The Mining World Has Changed
  • CSR is a complicated space
  • CSR amp Social License
  • Role of business is changing (click image to play video)
  • Case Studies (of successes)
  • Slide Number 21
  • Uranium Industry in Northern Saskatchewan
  • Challenging area
  • Challenging Times
  • Cameco in 1998
  • Cameco in Northern Saskatchewan (2010)
  • So how did Cameco and the industry do it
  • Placer Dome South Africa
  • Slide Number 29
  • Background
  • Background (cont)
  • Families amp Communities must benefit from mining
  • The Care Project
  • Implications
  • Slide Number 35
  • The Initial 4-Step Plan
  • Reality was different than we expected
  • Reality was different than expected
  • Meeting the challenges
  • TheProcess
  • Some results
  • Chicken raising business
  • Furniture making
  • Unique training programs
  • Rice farming in Mozambique
  • Spaza (convenience) shop
  • And the business value ishellip
  • Slide Number 48
  • What was in it for Placer Dome
  • And then there is HIVAIDS
  • HIVAIDS Facts (in 2000)
  • HIVAIDS Impact
  • HIVAIDS and Gold Mining
  • HIVAIDS Programming
  • Minesite Program
  • Minesite Program
  • Current Community Program
  • Community Mobile Clinic
  • And when HIV prevention doesnrsquot work
  • Industry Home Based Care
  • Home Based Care
  • INDUSTRY HOME BASED CARE RESULTS(Year One)
  • Overview of Placer Dome AIDS Programming
  • Slide Number 64
  • HIVAIDS and Rural Areas
  • HIVAIDS and Rural Areas
  • Reputational Results for Placer Dome
  • Where to next
  • Planned Program
  • Care Positive Summary
  • Andhellip
  • MDG Impacts of Placer Dome in South Africa
  • One thing leads to another
  • PNG HIVAIDS
  • PNG Outcomes (or outputs ndash Irsquom never sure)
  • Slide Number 76
  • PNG AIDS mission to South Africa
  • MDG Impacts of PNG HIVAIDS work
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • MDG Impacts of Eldorado Gold
  • Underwater Logging in Ghana
  • Private Sector and International Development
  • Group Exercise
  • Slide Number 87
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • What we covered
  • Session Objectives
  • Session Objectives
  • Remember
Page 87: Private Sector Contributions To International Development – McGill Executive Education Program Lecture

waynewaynedunncom

SDCSR Implementation Challenges

more than a warm fuzzy issue Spending isnrsquot the answer

Plan

Framework

System

Results

Solving social problems Objectives

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Beyond Beads and Trinkets ndash BC Mining Review

A lsquohow torsquo article on mining and CSR

Wayne Dunn

BP Venezuela Indigenous Relations ndash Meeting the Challenge Responsibly and Sustainably

Situational assessment and strategic plan for BP Venezuela Authorized for release by BP

Wayne Dunn

Cameco Community Relations Report

Situational assessment and management strategy Authorized for release by Cameco

Wayne Dunn

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author Beyond Beads lsquon Trinkets A systematic approach to managing community relations

A conference paper describing a systematic approach to community relations management helping companies to methodically develop mutually beneficial relationships with local communities and interests (this is one of the earliest papers on this subject ndash written in 1998)

Wayne Dunn

The costs of conflict with local communities in the extractive industry

Analysis of the cost of community conflicts in the Extractive Sector

Rachel Davis and Daniel M Franks

Creating Shared Value

Harvard Business Review interview with Michael Porter

Video

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Social License Its all about value

Discussion on Social License and shareholder Value

Wayne Dunn

Its about Development Commentary on the CIDAMining Company issue

Wayne Dunn

Integrating corporate strategy and social responsibilitymdashmarket returns from stakeholder engagement

Discussion and analysis on market returns on stakeholder engagement

Witold J Henisz Sinziana Dorobantu and Lite J Narty

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

McGill Reporter ndash Four Burning Questions Wayne Dunn on CSR

Discussion on CSR Wayne Dunn

Miningrsquos contribution to sustainable development ndashan overview

Discussion paper prepared by the International Council on Mining and Metals

Millennium Development Goals

United Nations

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Mining and Agriculture Development

A short lsquohow torsquo guide for mining projects to engage with the local agriculture sector

Al Hingston

PDSA Social Value Brochure

Brochure on social value created by Placer Dome South Africa

Placer Dome

The Value of Social License

Opinion piece published in Northern Miner

Wayne Dunn

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Golden Opportunity When a Canadian multinational laid off hundreds of gold miners in South Africa it went many extra miles to help them get back on their feet

Stanford Business School Case Study on Placer Dome in South Africa

Wayne Dunn

The Changing Resource Development Paradigm Maximizing Sustainable Local Benefits from Resource Development

Strategic thought piece prepared for the government of British Columbia Canada

Wayne Dunn

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

The Disappearing Barriers Between Business And Non-profits Are Driving Innovation

Discussion paper

Katherine Pikus

When Condoms are not enough

World Bank staff magazine article on Placer Dome and South African mining industryrsquos work with HIVAIDS

Craig Andrews

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

MINING AND LOCAL ECONOMIC DEVELOPMENT IN PAPUA NEW GUINEA Preliminary Research on a Potential Pilot Project in Porgera and Lihir

Strategic research and action plan on mining and local economic development in Papua New Guinea prepared for the World Bank

Wayne Dunn

waynewaynedunncom

What we covered

We 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) Publicprivatecivil society collaboration ndash case study

and discussion (CIDA and Mining Companies) Open discussion on topics of interest (time permitting)

waynewaynedunncom

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 howwhy 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

waynewaynedunncom

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 howwhy 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

waynewaynedunncom

Alignment around Shared Value For shareholders For Communities For People For Governments

Private Sector Contributions To International Development

Remember

  • Private Sector Contributions To International Development
  • Session Objectives
  • Map of the morning How we will try to meet the objectives
  • Slide Number 4
  • What is ODA and FDI
  • What is ODA and FDI
  • Why discuss Private Sector Contribution anyway
  • FDIBusiness Outcomes
  • Intention and Strategy Make a Difference
  • Why does the private sector care
  • Community Consultation and Value
  • Itrsquos Real Money
  • CSR is a Value Strategy
  • Social License Failures cost
  • Why is CSR happening
  • The Mining World Has Changed
  • CSR is a complicated space
  • CSR amp Social License
  • Role of business is changing (click image to play video)
  • Case Studies (of successes)
  • Slide Number 21
  • Uranium Industry in Northern Saskatchewan
  • Challenging area
  • Challenging Times
  • Cameco in 1998
  • Cameco in Northern Saskatchewan (2010)
  • So how did Cameco and the industry do it
  • Placer Dome South Africa
  • Slide Number 29
  • Background
  • Background (cont)
  • Families amp Communities must benefit from mining
  • The Care Project
  • Implications
  • Slide Number 35
  • The Initial 4-Step Plan
  • Reality was different than we expected
  • Reality was different than expected
  • Meeting the challenges
  • TheProcess
  • Some results
  • Chicken raising business
  • Furniture making
  • Unique training programs
  • Rice farming in Mozambique
  • Spaza (convenience) shop
  • And the business value ishellip
  • Slide Number 48
  • What was in it for Placer Dome
  • And then there is HIVAIDS
  • HIVAIDS Facts (in 2000)
  • HIVAIDS Impact
  • HIVAIDS and Gold Mining
  • HIVAIDS Programming
  • Minesite Program
  • Minesite Program
  • Current Community Program
  • Community Mobile Clinic
  • And when HIV prevention doesnrsquot work
  • Industry Home Based Care
  • Home Based Care
  • INDUSTRY HOME BASED CARE RESULTS(Year One)
  • Overview of Placer Dome AIDS Programming
  • Slide Number 64
  • HIVAIDS and Rural Areas
  • HIVAIDS and Rural Areas
  • Reputational Results for Placer Dome
  • Where to next
  • Planned Program
  • Care Positive Summary
  • Andhellip
  • MDG Impacts of Placer Dome in South Africa
  • One thing leads to another
  • PNG HIVAIDS
  • PNG Outcomes (or outputs ndash Irsquom never sure)
  • Slide Number 76
  • PNG AIDS mission to South Africa
  • MDG Impacts of PNG HIVAIDS work
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • MDG Impacts of Eldorado Gold
  • Underwater Logging in Ghana
  • Private Sector and International Development
  • Group Exercise
  • Slide Number 87
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • What we covered
  • Session Objectives
  • Session Objectives
  • Remember
Page 88: Private Sector Contributions To International Development – McGill Executive Education Program Lecture

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Beyond Beads and Trinkets ndash BC Mining Review

A lsquohow torsquo article on mining and CSR

Wayne Dunn

BP Venezuela Indigenous Relations ndash Meeting the Challenge Responsibly and Sustainably

Situational assessment and strategic plan for BP Venezuela Authorized for release by BP

Wayne Dunn

Cameco Community Relations Report

Situational assessment and management strategy Authorized for release by Cameco

Wayne Dunn

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author Beyond Beads lsquon Trinkets A systematic approach to managing community relations

A conference paper describing a systematic approach to community relations management helping companies to methodically develop mutually beneficial relationships with local communities and interests (this is one of the earliest papers on this subject ndash written in 1998)

Wayne Dunn

The costs of conflict with local communities in the extractive industry

Analysis of the cost of community conflicts in the Extractive Sector

Rachel Davis and Daniel M Franks

Creating Shared Value

Harvard Business Review interview with Michael Porter

Video

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Social License Its all about value

Discussion on Social License and shareholder Value

Wayne Dunn

Its about Development Commentary on the CIDAMining Company issue

Wayne Dunn

Integrating corporate strategy and social responsibilitymdashmarket returns from stakeholder engagement

Discussion and analysis on market returns on stakeholder engagement

Witold J Henisz Sinziana Dorobantu and Lite J Narty

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

McGill Reporter ndash Four Burning Questions Wayne Dunn on CSR

Discussion on CSR Wayne Dunn

Miningrsquos contribution to sustainable development ndashan overview

Discussion paper prepared by the International Council on Mining and Metals

Millennium Development Goals

United Nations

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Mining and Agriculture Development

A short lsquohow torsquo guide for mining projects to engage with the local agriculture sector

Al Hingston

PDSA Social Value Brochure

Brochure on social value created by Placer Dome South Africa

Placer Dome

The Value of Social License

Opinion piece published in Northern Miner

Wayne Dunn

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Golden Opportunity When a Canadian multinational laid off hundreds of gold miners in South Africa it went many extra miles to help them get back on their feet

Stanford Business School Case Study on Placer Dome in South Africa

Wayne Dunn

The Changing Resource Development Paradigm Maximizing Sustainable Local Benefits from Resource Development

Strategic thought piece prepared for the government of British Columbia Canada

Wayne Dunn

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

The Disappearing Barriers Between Business And Non-profits Are Driving Innovation

Discussion paper

Katherine Pikus

When Condoms are not enough

World Bank staff magazine article on Placer Dome and South African mining industryrsquos work with HIVAIDS

Craig Andrews

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

MINING AND LOCAL ECONOMIC DEVELOPMENT IN PAPUA NEW GUINEA Preliminary Research on a Potential Pilot Project in Porgera and Lihir

Strategic research and action plan on mining and local economic development in Papua New Guinea prepared for the World Bank

Wayne Dunn

waynewaynedunncom

What we covered

We 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) Publicprivatecivil society collaboration ndash case study

and discussion (CIDA and Mining Companies) Open discussion on topics of interest (time permitting)

waynewaynedunncom

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 howwhy 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

waynewaynedunncom

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 howwhy 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

waynewaynedunncom

Alignment around Shared Value For shareholders For Communities For People For Governments

Private Sector Contributions To International Development

Remember

  • Private Sector Contributions To International Development
  • Session Objectives
  • Map of the morning How we will try to meet the objectives
  • Slide Number 4
  • What is ODA and FDI
  • What is ODA and FDI
  • Why discuss Private Sector Contribution anyway
  • FDIBusiness Outcomes
  • Intention and Strategy Make a Difference
  • Why does the private sector care
  • Community Consultation and Value
  • Itrsquos Real Money
  • CSR is a Value Strategy
  • Social License Failures cost
  • Why is CSR happening
  • The Mining World Has Changed
  • CSR is a complicated space
  • CSR amp Social License
  • Role of business is changing (click image to play video)
  • Case Studies (of successes)
  • Slide Number 21
  • Uranium Industry in Northern Saskatchewan
  • Challenging area
  • Challenging Times
  • Cameco in 1998
  • Cameco in Northern Saskatchewan (2010)
  • So how did Cameco and the industry do it
  • Placer Dome South Africa
  • Slide Number 29
  • Background
  • Background (cont)
  • Families amp Communities must benefit from mining
  • The Care Project
  • Implications
  • Slide Number 35
  • The Initial 4-Step Plan
  • Reality was different than we expected
  • Reality was different than expected
  • Meeting the challenges
  • TheProcess
  • Some results
  • Chicken raising business
  • Furniture making
  • Unique training programs
  • Rice farming in Mozambique
  • Spaza (convenience) shop
  • And the business value ishellip
  • Slide Number 48
  • What was in it for Placer Dome
  • And then there is HIVAIDS
  • HIVAIDS Facts (in 2000)
  • HIVAIDS Impact
  • HIVAIDS and Gold Mining
  • HIVAIDS Programming
  • Minesite Program
  • Minesite Program
  • Current Community Program
  • Community Mobile Clinic
  • And when HIV prevention doesnrsquot work
  • Industry Home Based Care
  • Home Based Care
  • INDUSTRY HOME BASED CARE RESULTS(Year One)
  • Overview of Placer Dome AIDS Programming
  • Slide Number 64
  • HIVAIDS and Rural Areas
  • HIVAIDS and Rural Areas
  • Reputational Results for Placer Dome
  • Where to next
  • Planned Program
  • Care Positive Summary
  • Andhellip
  • MDG Impacts of Placer Dome in South Africa
  • One thing leads to another
  • PNG HIVAIDS
  • PNG Outcomes (or outputs ndash Irsquom never sure)
  • Slide Number 76
  • PNG AIDS mission to South Africa
  • MDG Impacts of PNG HIVAIDS work
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • MDG Impacts of Eldorado Gold
  • Underwater Logging in Ghana
  • Private Sector and International Development
  • Group Exercise
  • Slide Number 87
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • What we covered
  • Session Objectives
  • Session Objectives
  • Remember
Page 89: Private Sector Contributions To International Development – McGill Executive Education Program Lecture

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author Beyond Beads lsquon Trinkets A systematic approach to managing community relations

A conference paper describing a systematic approach to community relations management helping companies to methodically develop mutually beneficial relationships with local communities and interests (this is one of the earliest papers on this subject ndash written in 1998)

Wayne Dunn

The costs of conflict with local communities in the extractive industry

Analysis of the cost of community conflicts in the Extractive Sector

Rachel Davis and Daniel M Franks

Creating Shared Value

Harvard Business Review interview with Michael Porter

Video

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Social License Its all about value

Discussion on Social License and shareholder Value

Wayne Dunn

Its about Development Commentary on the CIDAMining Company issue

Wayne Dunn

Integrating corporate strategy and social responsibilitymdashmarket returns from stakeholder engagement

Discussion and analysis on market returns on stakeholder engagement

Witold J Henisz Sinziana Dorobantu and Lite J Narty

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

McGill Reporter ndash Four Burning Questions Wayne Dunn on CSR

Discussion on CSR Wayne Dunn

Miningrsquos contribution to sustainable development ndashan overview

Discussion paper prepared by the International Council on Mining and Metals

Millennium Development Goals

United Nations

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Mining and Agriculture Development

A short lsquohow torsquo guide for mining projects to engage with the local agriculture sector

Al Hingston

PDSA Social Value Brochure

Brochure on social value created by Placer Dome South Africa

Placer Dome

The Value of Social License

Opinion piece published in Northern Miner

Wayne Dunn

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Golden Opportunity When a Canadian multinational laid off hundreds of gold miners in South Africa it went many extra miles to help them get back on their feet

Stanford Business School Case Study on Placer Dome in South Africa

Wayne Dunn

The Changing Resource Development Paradigm Maximizing Sustainable Local Benefits from Resource Development

Strategic thought piece prepared for the government of British Columbia Canada

Wayne Dunn

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

The Disappearing Barriers Between Business And Non-profits Are Driving Innovation

Discussion paper

Katherine Pikus

When Condoms are not enough

World Bank staff magazine article on Placer Dome and South African mining industryrsquos work with HIVAIDS

Craig Andrews

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

MINING AND LOCAL ECONOMIC DEVELOPMENT IN PAPUA NEW GUINEA Preliminary Research on a Potential Pilot Project in Porgera and Lihir

Strategic research and action plan on mining and local economic development in Papua New Guinea prepared for the World Bank

Wayne Dunn

waynewaynedunncom

What we covered

We 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) Publicprivatecivil society collaboration ndash case study

and discussion (CIDA and Mining Companies) Open discussion on topics of interest (time permitting)

waynewaynedunncom

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 howwhy 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

waynewaynedunncom

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 howwhy 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

waynewaynedunncom

Alignment around Shared Value For shareholders For Communities For People For Governments

Private Sector Contributions To International Development

Remember

  • Private Sector Contributions To International Development
  • Session Objectives
  • Map of the morning How we will try to meet the objectives
  • Slide Number 4
  • What is ODA and FDI
  • What is ODA and FDI
  • Why discuss Private Sector Contribution anyway
  • FDIBusiness Outcomes
  • Intention and Strategy Make a Difference
  • Why does the private sector care
  • Community Consultation and Value
  • Itrsquos Real Money
  • CSR is a Value Strategy
  • Social License Failures cost
  • Why is CSR happening
  • The Mining World Has Changed
  • CSR is a complicated space
  • CSR amp Social License
  • Role of business is changing (click image to play video)
  • Case Studies (of successes)
  • Slide Number 21
  • Uranium Industry in Northern Saskatchewan
  • Challenging area
  • Challenging Times
  • Cameco in 1998
  • Cameco in Northern Saskatchewan (2010)
  • So how did Cameco and the industry do it
  • Placer Dome South Africa
  • Slide Number 29
  • Background
  • Background (cont)
  • Families amp Communities must benefit from mining
  • The Care Project
  • Implications
  • Slide Number 35
  • The Initial 4-Step Plan
  • Reality was different than we expected
  • Reality was different than expected
  • Meeting the challenges
  • TheProcess
  • Some results
  • Chicken raising business
  • Furniture making
  • Unique training programs
  • Rice farming in Mozambique
  • Spaza (convenience) shop
  • And the business value ishellip
  • Slide Number 48
  • What was in it for Placer Dome
  • And then there is HIVAIDS
  • HIVAIDS Facts (in 2000)
  • HIVAIDS Impact
  • HIVAIDS and Gold Mining
  • HIVAIDS Programming
  • Minesite Program
  • Minesite Program
  • Current Community Program
  • Community Mobile Clinic
  • And when HIV prevention doesnrsquot work
  • Industry Home Based Care
  • Home Based Care
  • INDUSTRY HOME BASED CARE RESULTS(Year One)
  • Overview of Placer Dome AIDS Programming
  • Slide Number 64
  • HIVAIDS and Rural Areas
  • HIVAIDS and Rural Areas
  • Reputational Results for Placer Dome
  • Where to next
  • Planned Program
  • Care Positive Summary
  • Andhellip
  • MDG Impacts of Placer Dome in South Africa
  • One thing leads to another
  • PNG HIVAIDS
  • PNG Outcomes (or outputs ndash Irsquom never sure)
  • Slide Number 76
  • PNG AIDS mission to South Africa
  • MDG Impacts of PNG HIVAIDS work
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • MDG Impacts of Eldorado Gold
  • Underwater Logging in Ghana
  • Private Sector and International Development
  • Group Exercise
  • Slide Number 87
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • What we covered
  • Session Objectives
  • Session Objectives
  • Remember
Page 90: Private Sector Contributions To International Development – McGill Executive Education Program Lecture

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Social License Its all about value

Discussion on Social License and shareholder Value

Wayne Dunn

Its about Development Commentary on the CIDAMining Company issue

Wayne Dunn

Integrating corporate strategy and social responsibilitymdashmarket returns from stakeholder engagement

Discussion and analysis on market returns on stakeholder engagement

Witold J Henisz Sinziana Dorobantu and Lite J Narty

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

McGill Reporter ndash Four Burning Questions Wayne Dunn on CSR

Discussion on CSR Wayne Dunn

Miningrsquos contribution to sustainable development ndashan overview

Discussion paper prepared by the International Council on Mining and Metals

Millennium Development Goals

United Nations

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Mining and Agriculture Development

A short lsquohow torsquo guide for mining projects to engage with the local agriculture sector

Al Hingston

PDSA Social Value Brochure

Brochure on social value created by Placer Dome South Africa

Placer Dome

The Value of Social License

Opinion piece published in Northern Miner

Wayne Dunn

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Golden Opportunity When a Canadian multinational laid off hundreds of gold miners in South Africa it went many extra miles to help them get back on their feet

Stanford Business School Case Study on Placer Dome in South Africa

Wayne Dunn

The Changing Resource Development Paradigm Maximizing Sustainable Local Benefits from Resource Development

Strategic thought piece prepared for the government of British Columbia Canada

Wayne Dunn

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

The Disappearing Barriers Between Business And Non-profits Are Driving Innovation

Discussion paper

Katherine Pikus

When Condoms are not enough

World Bank staff magazine article on Placer Dome and South African mining industryrsquos work with HIVAIDS

Craig Andrews

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

MINING AND LOCAL ECONOMIC DEVELOPMENT IN PAPUA NEW GUINEA Preliminary Research on a Potential Pilot Project in Porgera and Lihir

Strategic research and action plan on mining and local economic development in Papua New Guinea prepared for the World Bank

Wayne Dunn

waynewaynedunncom

What we covered

We 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) Publicprivatecivil society collaboration ndash case study

and discussion (CIDA and Mining Companies) Open discussion on topics of interest (time permitting)

waynewaynedunncom

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 howwhy 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

waynewaynedunncom

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 howwhy 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

waynewaynedunncom

Alignment around Shared Value For shareholders For Communities For People For Governments

Private Sector Contributions To International Development

Remember

  • Private Sector Contributions To International Development
  • Session Objectives
  • Map of the morning How we will try to meet the objectives
  • Slide Number 4
  • What is ODA and FDI
  • What is ODA and FDI
  • Why discuss Private Sector Contribution anyway
  • FDIBusiness Outcomes
  • Intention and Strategy Make a Difference
  • Why does the private sector care
  • Community Consultation and Value
  • Itrsquos Real Money
  • CSR is a Value Strategy
  • Social License Failures cost
  • Why is CSR happening
  • The Mining World Has Changed
  • CSR is a complicated space
  • CSR amp Social License
  • Role of business is changing (click image to play video)
  • Case Studies (of successes)
  • Slide Number 21
  • Uranium Industry in Northern Saskatchewan
  • Challenging area
  • Challenging Times
  • Cameco in 1998
  • Cameco in Northern Saskatchewan (2010)
  • So how did Cameco and the industry do it
  • Placer Dome South Africa
  • Slide Number 29
  • Background
  • Background (cont)
  • Families amp Communities must benefit from mining
  • The Care Project
  • Implications
  • Slide Number 35
  • The Initial 4-Step Plan
  • Reality was different than we expected
  • Reality was different than expected
  • Meeting the challenges
  • TheProcess
  • Some results
  • Chicken raising business
  • Furniture making
  • Unique training programs
  • Rice farming in Mozambique
  • Spaza (convenience) shop
  • And the business value ishellip
  • Slide Number 48
  • What was in it for Placer Dome
  • And then there is HIVAIDS
  • HIVAIDS Facts (in 2000)
  • HIVAIDS Impact
  • HIVAIDS and Gold Mining
  • HIVAIDS Programming
  • Minesite Program
  • Minesite Program
  • Current Community Program
  • Community Mobile Clinic
  • And when HIV prevention doesnrsquot work
  • Industry Home Based Care
  • Home Based Care
  • INDUSTRY HOME BASED CARE RESULTS(Year One)
  • Overview of Placer Dome AIDS Programming
  • Slide Number 64
  • HIVAIDS and Rural Areas
  • HIVAIDS and Rural Areas
  • Reputational Results for Placer Dome
  • Where to next
  • Planned Program
  • Care Positive Summary
  • Andhellip
  • MDG Impacts of Placer Dome in South Africa
  • One thing leads to another
  • PNG HIVAIDS
  • PNG Outcomes (or outputs ndash Irsquom never sure)
  • Slide Number 76
  • PNG AIDS mission to South Africa
  • MDG Impacts of PNG HIVAIDS work
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • MDG Impacts of Eldorado Gold
  • Underwater Logging in Ghana
  • Private Sector and International Development
  • Group Exercise
  • Slide Number 87
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • What we covered
  • Session Objectives
  • Session Objectives
  • Remember
Page 91: Private Sector Contributions To International Development – McGill Executive Education Program Lecture

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

McGill Reporter ndash Four Burning Questions Wayne Dunn on CSR

Discussion on CSR Wayne Dunn

Miningrsquos contribution to sustainable development ndashan overview

Discussion paper prepared by the International Council on Mining and Metals

Millennium Development Goals

United Nations

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Mining and Agriculture Development

A short lsquohow torsquo guide for mining projects to engage with the local agriculture sector

Al Hingston

PDSA Social Value Brochure

Brochure on social value created by Placer Dome South Africa

Placer Dome

The Value of Social License

Opinion piece published in Northern Miner

Wayne Dunn

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Golden Opportunity When a Canadian multinational laid off hundreds of gold miners in South Africa it went many extra miles to help them get back on their feet

Stanford Business School Case Study on Placer Dome in South Africa

Wayne Dunn

The Changing Resource Development Paradigm Maximizing Sustainable Local Benefits from Resource Development

Strategic thought piece prepared for the government of British Columbia Canada

Wayne Dunn

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

The Disappearing Barriers Between Business And Non-profits Are Driving Innovation

Discussion paper

Katherine Pikus

When Condoms are not enough

World Bank staff magazine article on Placer Dome and South African mining industryrsquos work with HIVAIDS

Craig Andrews

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

MINING AND LOCAL ECONOMIC DEVELOPMENT IN PAPUA NEW GUINEA Preliminary Research on a Potential Pilot Project in Porgera and Lihir

Strategic research and action plan on mining and local economic development in Papua New Guinea prepared for the World Bank

Wayne Dunn

waynewaynedunncom

What we covered

We 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) Publicprivatecivil society collaboration ndash case study

and discussion (CIDA and Mining Companies) Open discussion on topics of interest (time permitting)

waynewaynedunncom

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 howwhy 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

waynewaynedunncom

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 howwhy 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

waynewaynedunncom

Alignment around Shared Value For shareholders For Communities For People For Governments

Private Sector Contributions To International Development

Remember

  • Private Sector Contributions To International Development
  • Session Objectives
  • Map of the morning How we will try to meet the objectives
  • Slide Number 4
  • What is ODA and FDI
  • What is ODA and FDI
  • Why discuss Private Sector Contribution anyway
  • FDIBusiness Outcomes
  • Intention and Strategy Make a Difference
  • Why does the private sector care
  • Community Consultation and Value
  • Itrsquos Real Money
  • CSR is a Value Strategy
  • Social License Failures cost
  • Why is CSR happening
  • The Mining World Has Changed
  • CSR is a complicated space
  • CSR amp Social License
  • Role of business is changing (click image to play video)
  • Case Studies (of successes)
  • Slide Number 21
  • Uranium Industry in Northern Saskatchewan
  • Challenging area
  • Challenging Times
  • Cameco in 1998
  • Cameco in Northern Saskatchewan (2010)
  • So how did Cameco and the industry do it
  • Placer Dome South Africa
  • Slide Number 29
  • Background
  • Background (cont)
  • Families amp Communities must benefit from mining
  • The Care Project
  • Implications
  • Slide Number 35
  • The Initial 4-Step Plan
  • Reality was different than we expected
  • Reality was different than expected
  • Meeting the challenges
  • TheProcess
  • Some results
  • Chicken raising business
  • Furniture making
  • Unique training programs
  • Rice farming in Mozambique
  • Spaza (convenience) shop
  • And the business value ishellip
  • Slide Number 48
  • What was in it for Placer Dome
  • And then there is HIVAIDS
  • HIVAIDS Facts (in 2000)
  • HIVAIDS Impact
  • HIVAIDS and Gold Mining
  • HIVAIDS Programming
  • Minesite Program
  • Minesite Program
  • Current Community Program
  • Community Mobile Clinic
  • And when HIV prevention doesnrsquot work
  • Industry Home Based Care
  • Home Based Care
  • INDUSTRY HOME BASED CARE RESULTS(Year One)
  • Overview of Placer Dome AIDS Programming
  • Slide Number 64
  • HIVAIDS and Rural Areas
  • HIVAIDS and Rural Areas
  • Reputational Results for Placer Dome
  • Where to next
  • Planned Program
  • Care Positive Summary
  • Andhellip
  • MDG Impacts of Placer Dome in South Africa
  • One thing leads to another
  • PNG HIVAIDS
  • PNG Outcomes (or outputs ndash Irsquom never sure)
  • Slide Number 76
  • PNG AIDS mission to South Africa
  • MDG Impacts of PNG HIVAIDS work
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • MDG Impacts of Eldorado Gold
  • Underwater Logging in Ghana
  • Private Sector and International Development
  • Group Exercise
  • Slide Number 87
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • What we covered
  • Session Objectives
  • Session Objectives
  • Remember
Page 92: Private Sector Contributions To International Development – McGill Executive Education Program Lecture

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Mining and Agriculture Development

A short lsquohow torsquo guide for mining projects to engage with the local agriculture sector

Al Hingston

PDSA Social Value Brochure

Brochure on social value created by Placer Dome South Africa

Placer Dome

The Value of Social License

Opinion piece published in Northern Miner

Wayne Dunn

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Golden Opportunity When a Canadian multinational laid off hundreds of gold miners in South Africa it went many extra miles to help them get back on their feet

Stanford Business School Case Study on Placer Dome in South Africa

Wayne Dunn

The Changing Resource Development Paradigm Maximizing Sustainable Local Benefits from Resource Development

Strategic thought piece prepared for the government of British Columbia Canada

Wayne Dunn

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

The Disappearing Barriers Between Business And Non-profits Are Driving Innovation

Discussion paper

Katherine Pikus

When Condoms are not enough

World Bank staff magazine article on Placer Dome and South African mining industryrsquos work with HIVAIDS

Craig Andrews

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

MINING AND LOCAL ECONOMIC DEVELOPMENT IN PAPUA NEW GUINEA Preliminary Research on a Potential Pilot Project in Porgera and Lihir

Strategic research and action plan on mining and local economic development in Papua New Guinea prepared for the World Bank

Wayne Dunn

waynewaynedunncom

What we covered

We 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) Publicprivatecivil society collaboration ndash case study

and discussion (CIDA and Mining Companies) Open discussion on topics of interest (time permitting)

waynewaynedunncom

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 howwhy 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

waynewaynedunncom

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 howwhy 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

waynewaynedunncom

Alignment around Shared Value For shareholders For Communities For People For Governments

Private Sector Contributions To International Development

Remember

  • Private Sector Contributions To International Development
  • Session Objectives
  • Map of the morning How we will try to meet the objectives
  • Slide Number 4
  • What is ODA and FDI
  • What is ODA and FDI
  • Why discuss Private Sector Contribution anyway
  • FDIBusiness Outcomes
  • Intention and Strategy Make a Difference
  • Why does the private sector care
  • Community Consultation and Value
  • Itrsquos Real Money
  • CSR is a Value Strategy
  • Social License Failures cost
  • Why is CSR happening
  • The Mining World Has Changed
  • CSR is a complicated space
  • CSR amp Social License
  • Role of business is changing (click image to play video)
  • Case Studies (of successes)
  • Slide Number 21
  • Uranium Industry in Northern Saskatchewan
  • Challenging area
  • Challenging Times
  • Cameco in 1998
  • Cameco in Northern Saskatchewan (2010)
  • So how did Cameco and the industry do it
  • Placer Dome South Africa
  • Slide Number 29
  • Background
  • Background (cont)
  • Families amp Communities must benefit from mining
  • The Care Project
  • Implications
  • Slide Number 35
  • The Initial 4-Step Plan
  • Reality was different than we expected
  • Reality was different than expected
  • Meeting the challenges
  • TheProcess
  • Some results
  • Chicken raising business
  • Furniture making
  • Unique training programs
  • Rice farming in Mozambique
  • Spaza (convenience) shop
  • And the business value ishellip
  • Slide Number 48
  • What was in it for Placer Dome
  • And then there is HIVAIDS
  • HIVAIDS Facts (in 2000)
  • HIVAIDS Impact
  • HIVAIDS and Gold Mining
  • HIVAIDS Programming
  • Minesite Program
  • Minesite Program
  • Current Community Program
  • Community Mobile Clinic
  • And when HIV prevention doesnrsquot work
  • Industry Home Based Care
  • Home Based Care
  • INDUSTRY HOME BASED CARE RESULTS(Year One)
  • Overview of Placer Dome AIDS Programming
  • Slide Number 64
  • HIVAIDS and Rural Areas
  • HIVAIDS and Rural Areas
  • Reputational Results for Placer Dome
  • Where to next
  • Planned Program
  • Care Positive Summary
  • Andhellip
  • MDG Impacts of Placer Dome in South Africa
  • One thing leads to another
  • PNG HIVAIDS
  • PNG Outcomes (or outputs ndash Irsquom never sure)
  • Slide Number 76
  • PNG AIDS mission to South Africa
  • MDG Impacts of PNG HIVAIDS work
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • MDG Impacts of Eldorado Gold
  • Underwater Logging in Ghana
  • Private Sector and International Development
  • Group Exercise
  • Slide Number 87
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • What we covered
  • Session Objectives
  • Session Objectives
  • Remember
Page 93: Private Sector Contributions To International Development – McGill Executive Education Program Lecture

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

Golden Opportunity When a Canadian multinational laid off hundreds of gold miners in South Africa it went many extra miles to help them get back on their feet

Stanford Business School Case Study on Placer Dome in South Africa

Wayne Dunn

The Changing Resource Development Paradigm Maximizing Sustainable Local Benefits from Resource Development

Strategic thought piece prepared for the government of British Columbia Canada

Wayne Dunn

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

The Disappearing Barriers Between Business And Non-profits Are Driving Innovation

Discussion paper

Katherine Pikus

When Condoms are not enough

World Bank staff magazine article on Placer Dome and South African mining industryrsquos work with HIVAIDS

Craig Andrews

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

MINING AND LOCAL ECONOMIC DEVELOPMENT IN PAPUA NEW GUINEA Preliminary Research on a Potential Pilot Project in Porgera and Lihir

Strategic research and action plan on mining and local economic development in Papua New Guinea prepared for the World Bank

Wayne Dunn

waynewaynedunncom

What we covered

We 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) Publicprivatecivil society collaboration ndash case study

and discussion (CIDA and Mining Companies) Open discussion on topics of interest (time permitting)

waynewaynedunncom

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 howwhy 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

waynewaynedunncom

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 howwhy 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

waynewaynedunncom

Alignment around Shared Value For shareholders For Communities For People For Governments

Private Sector Contributions To International Development

Remember

  • Private Sector Contributions To International Development
  • Session Objectives
  • Map of the morning How we will try to meet the objectives
  • Slide Number 4
  • What is ODA and FDI
  • What is ODA and FDI
  • Why discuss Private Sector Contribution anyway
  • FDIBusiness Outcomes
  • Intention and Strategy Make a Difference
  • Why does the private sector care
  • Community Consultation and Value
  • Itrsquos Real Money
  • CSR is a Value Strategy
  • Social License Failures cost
  • Why is CSR happening
  • The Mining World Has Changed
  • CSR is a complicated space
  • CSR amp Social License
  • Role of business is changing (click image to play video)
  • Case Studies (of successes)
  • Slide Number 21
  • Uranium Industry in Northern Saskatchewan
  • Challenging area
  • Challenging Times
  • Cameco in 1998
  • Cameco in Northern Saskatchewan (2010)
  • So how did Cameco and the industry do it
  • Placer Dome South Africa
  • Slide Number 29
  • Background
  • Background (cont)
  • Families amp Communities must benefit from mining
  • The Care Project
  • Implications
  • Slide Number 35
  • The Initial 4-Step Plan
  • Reality was different than we expected
  • Reality was different than expected
  • Meeting the challenges
  • TheProcess
  • Some results
  • Chicken raising business
  • Furniture making
  • Unique training programs
  • Rice farming in Mozambique
  • Spaza (convenience) shop
  • And the business value ishellip
  • Slide Number 48
  • What was in it for Placer Dome
  • And then there is HIVAIDS
  • HIVAIDS Facts (in 2000)
  • HIVAIDS Impact
  • HIVAIDS and Gold Mining
  • HIVAIDS Programming
  • Minesite Program
  • Minesite Program
  • Current Community Program
  • Community Mobile Clinic
  • And when HIV prevention doesnrsquot work
  • Industry Home Based Care
  • Home Based Care
  • INDUSTRY HOME BASED CARE RESULTS(Year One)
  • Overview of Placer Dome AIDS Programming
  • Slide Number 64
  • HIVAIDS and Rural Areas
  • HIVAIDS and Rural Areas
  • Reputational Results for Placer Dome
  • Where to next
  • Planned Program
  • Care Positive Summary
  • Andhellip
  • MDG Impacts of Placer Dome in South Africa
  • One thing leads to another
  • PNG HIVAIDS
  • PNG Outcomes (or outputs ndash Irsquom never sure)
  • Slide Number 76
  • PNG AIDS mission to South Africa
  • MDG Impacts of PNG HIVAIDS work
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • MDG Impacts of Eldorado Gold
  • Underwater Logging in Ghana
  • Private Sector and International Development
  • Group Exercise
  • Slide Number 87
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • What we covered
  • Session Objectives
  • Session Objectives
  • Remember
Page 94: Private Sector Contributions To International Development – McGill Executive Education Program Lecture

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

The Disappearing Barriers Between Business And Non-profits Are Driving Innovation

Discussion paper

Katherine Pikus

When Condoms are not enough

World Bank staff magazine article on Placer Dome and South African mining industryrsquos work with HIVAIDS

Craig Andrews

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

MINING AND LOCAL ECONOMIC DEVELOPMENT IN PAPUA NEW GUINEA Preliminary Research on a Potential Pilot Project in Porgera and Lihir

Strategic research and action plan on mining and local economic development in Papua New Guinea prepared for the World Bank

Wayne Dunn

waynewaynedunncom

What we covered

We 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) Publicprivatecivil society collaboration ndash case study

and discussion (CIDA and Mining Companies) Open discussion on topics of interest (time permitting)

waynewaynedunncom

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 howwhy 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

waynewaynedunncom

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 howwhy 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

waynewaynedunncom

Alignment around Shared Value For shareholders For Communities For People For Governments

Private Sector Contributions To International Development

Remember

  • Private Sector Contributions To International Development
  • Session Objectives
  • Map of the morning How we will try to meet the objectives
  • Slide Number 4
  • What is ODA and FDI
  • What is ODA and FDI
  • Why discuss Private Sector Contribution anyway
  • FDIBusiness Outcomes
  • Intention and Strategy Make a Difference
  • Why does the private sector care
  • Community Consultation and Value
  • Itrsquos Real Money
  • CSR is a Value Strategy
  • Social License Failures cost
  • Why is CSR happening
  • The Mining World Has Changed
  • CSR is a complicated space
  • CSR amp Social License
  • Role of business is changing (click image to play video)
  • Case Studies (of successes)
  • Slide Number 21
  • Uranium Industry in Northern Saskatchewan
  • Challenging area
  • Challenging Times
  • Cameco in 1998
  • Cameco in Northern Saskatchewan (2010)
  • So how did Cameco and the industry do it
  • Placer Dome South Africa
  • Slide Number 29
  • Background
  • Background (cont)
  • Families amp Communities must benefit from mining
  • The Care Project
  • Implications
  • Slide Number 35
  • The Initial 4-Step Plan
  • Reality was different than we expected
  • Reality was different than expected
  • Meeting the challenges
  • TheProcess
  • Some results
  • Chicken raising business
  • Furniture making
  • Unique training programs
  • Rice farming in Mozambique
  • Spaza (convenience) shop
  • And the business value ishellip
  • Slide Number 48
  • What was in it for Placer Dome
  • And then there is HIVAIDS
  • HIVAIDS Facts (in 2000)
  • HIVAIDS Impact
  • HIVAIDS and Gold Mining
  • HIVAIDS Programming
  • Minesite Program
  • Minesite Program
  • Current Community Program
  • Community Mobile Clinic
  • And when HIV prevention doesnrsquot work
  • Industry Home Based Care
  • Home Based Care
  • INDUSTRY HOME BASED CARE RESULTS(Year One)
  • Overview of Placer Dome AIDS Programming
  • Slide Number 64
  • HIVAIDS and Rural Areas
  • HIVAIDS and Rural Areas
  • Reputational Results for Placer Dome
  • Where to next
  • Planned Program
  • Care Positive Summary
  • Andhellip
  • MDG Impacts of Placer Dome in South Africa
  • One thing leads to another
  • PNG HIVAIDS
  • PNG Outcomes (or outputs ndash Irsquom never sure)
  • Slide Number 76
  • PNG AIDS mission to South Africa
  • MDG Impacts of PNG HIVAIDS work
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • MDG Impacts of Eldorado Gold
  • Underwater Logging in Ghana
  • Private Sector and International Development
  • Group Exercise
  • Slide Number 87
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • What we covered
  • Session Objectives
  • Session Objectives
  • Remember
Page 95: Private Sector Contributions To International Development – McGill Executive Education Program Lecture

waynewaynedunncom

Stuff on the USB Drive Article What it is about Author

MINING AND LOCAL ECONOMIC DEVELOPMENT IN PAPUA NEW GUINEA Preliminary Research on a Potential Pilot Project in Porgera and Lihir

Strategic research and action plan on mining and local economic development in Papua New Guinea prepared for the World Bank

Wayne Dunn

waynewaynedunncom

What we covered

We 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) Publicprivatecivil society collaboration ndash case study

and discussion (CIDA and Mining Companies) Open discussion on topics of interest (time permitting)

waynewaynedunncom

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 howwhy 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

waynewaynedunncom

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 howwhy 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

waynewaynedunncom

Alignment around Shared Value For shareholders For Communities For People For Governments

Private Sector Contributions To International Development

Remember

  • Private Sector Contributions To International Development
  • Session Objectives
  • Map of the morning How we will try to meet the objectives
  • Slide Number 4
  • What is ODA and FDI
  • What is ODA and FDI
  • Why discuss Private Sector Contribution anyway
  • FDIBusiness Outcomes
  • Intention and Strategy Make a Difference
  • Why does the private sector care
  • Community Consultation and Value
  • Itrsquos Real Money
  • CSR is a Value Strategy
  • Social License Failures cost
  • Why is CSR happening
  • The Mining World Has Changed
  • CSR is a complicated space
  • CSR amp Social License
  • Role of business is changing (click image to play video)
  • Case Studies (of successes)
  • Slide Number 21
  • Uranium Industry in Northern Saskatchewan
  • Challenging area
  • Challenging Times
  • Cameco in 1998
  • Cameco in Northern Saskatchewan (2010)
  • So how did Cameco and the industry do it
  • Placer Dome South Africa
  • Slide Number 29
  • Background
  • Background (cont)
  • Families amp Communities must benefit from mining
  • The Care Project
  • Implications
  • Slide Number 35
  • The Initial 4-Step Plan
  • Reality was different than we expected
  • Reality was different than expected
  • Meeting the challenges
  • TheProcess
  • Some results
  • Chicken raising business
  • Furniture making
  • Unique training programs
  • Rice farming in Mozambique
  • Spaza (convenience) shop
  • And the business value ishellip
  • Slide Number 48
  • What was in it for Placer Dome
  • And then there is HIVAIDS
  • HIVAIDS Facts (in 2000)
  • HIVAIDS Impact
  • HIVAIDS and Gold Mining
  • HIVAIDS Programming
  • Minesite Program
  • Minesite Program
  • Current Community Program
  • Community Mobile Clinic
  • And when HIV prevention doesnrsquot work
  • Industry Home Based Care
  • Home Based Care
  • INDUSTRY HOME BASED CARE RESULTS(Year One)
  • Overview of Placer Dome AIDS Programming
  • Slide Number 64
  • HIVAIDS and Rural Areas
  • HIVAIDS and Rural Areas
  • Reputational Results for Placer Dome
  • Where to next
  • Planned Program
  • Care Positive Summary
  • Andhellip
  • MDG Impacts of Placer Dome in South Africa
  • One thing leads to another
  • PNG HIVAIDS
  • PNG Outcomes (or outputs ndash Irsquom never sure)
  • Slide Number 76
  • PNG AIDS mission to South Africa
  • MDG Impacts of PNG HIVAIDS work
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • MDG Impacts of Eldorado Gold
  • Underwater Logging in Ghana
  • Private Sector and International Development
  • Group Exercise
  • Slide Number 87
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • What we covered
  • Session Objectives
  • Session Objectives
  • Remember
Page 96: Private Sector Contributions To International Development – McGill Executive Education Program Lecture

waynewaynedunncom

What we covered

We 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) Publicprivatecivil society collaboration ndash case study

and discussion (CIDA and Mining Companies) Open discussion on topics of interest (time permitting)

waynewaynedunncom

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 howwhy 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

waynewaynedunncom

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 howwhy 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

waynewaynedunncom

Alignment around Shared Value For shareholders For Communities For People For Governments

Private Sector Contributions To International Development

Remember

  • Private Sector Contributions To International Development
  • Session Objectives
  • Map of the morning How we will try to meet the objectives
  • Slide Number 4
  • What is ODA and FDI
  • What is ODA and FDI
  • Why discuss Private Sector Contribution anyway
  • FDIBusiness Outcomes
  • Intention and Strategy Make a Difference
  • Why does the private sector care
  • Community Consultation and Value
  • Itrsquos Real Money
  • CSR is a Value Strategy
  • Social License Failures cost
  • Why is CSR happening
  • The Mining World Has Changed
  • CSR is a complicated space
  • CSR amp Social License
  • Role of business is changing (click image to play video)
  • Case Studies (of successes)
  • Slide Number 21
  • Uranium Industry in Northern Saskatchewan
  • Challenging area
  • Challenging Times
  • Cameco in 1998
  • Cameco in Northern Saskatchewan (2010)
  • So how did Cameco and the industry do it
  • Placer Dome South Africa
  • Slide Number 29
  • Background
  • Background (cont)
  • Families amp Communities must benefit from mining
  • The Care Project
  • Implications
  • Slide Number 35
  • The Initial 4-Step Plan
  • Reality was different than we expected
  • Reality was different than expected
  • Meeting the challenges
  • TheProcess
  • Some results
  • Chicken raising business
  • Furniture making
  • Unique training programs
  • Rice farming in Mozambique
  • Spaza (convenience) shop
  • And the business value ishellip
  • Slide Number 48
  • What was in it for Placer Dome
  • And then there is HIVAIDS
  • HIVAIDS Facts (in 2000)
  • HIVAIDS Impact
  • HIVAIDS and Gold Mining
  • HIVAIDS Programming
  • Minesite Program
  • Minesite Program
  • Current Community Program
  • Community Mobile Clinic
  • And when HIV prevention doesnrsquot work
  • Industry Home Based Care
  • Home Based Care
  • INDUSTRY HOME BASED CARE RESULTS(Year One)
  • Overview of Placer Dome AIDS Programming
  • Slide Number 64
  • HIVAIDS and Rural Areas
  • HIVAIDS and Rural Areas
  • Reputational Results for Placer Dome
  • Where to next
  • Planned Program
  • Care Positive Summary
  • Andhellip
  • MDG Impacts of Placer Dome in South Africa
  • One thing leads to another
  • PNG HIVAIDS
  • PNG Outcomes (or outputs ndash Irsquom never sure)
  • Slide Number 76
  • PNG AIDS mission to South Africa
  • MDG Impacts of PNG HIVAIDS work
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • MDG Impacts of Eldorado Gold
  • Underwater Logging in Ghana
  • Private Sector and International Development
  • Group Exercise
  • Slide Number 87
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • What we covered
  • Session Objectives
  • Session Objectives
  • Remember
Page 97: Private Sector Contributions To International Development – McGill Executive Education Program Lecture

waynewaynedunncom

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 howwhy 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

waynewaynedunncom

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 howwhy 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

waynewaynedunncom

Alignment around Shared Value For shareholders For Communities For People For Governments

Private Sector Contributions To International Development

Remember

  • Private Sector Contributions To International Development
  • Session Objectives
  • Map of the morning How we will try to meet the objectives
  • Slide Number 4
  • What is ODA and FDI
  • What is ODA and FDI
  • Why discuss Private Sector Contribution anyway
  • FDIBusiness Outcomes
  • Intention and Strategy Make a Difference
  • Why does the private sector care
  • Community Consultation and Value
  • Itrsquos Real Money
  • CSR is a Value Strategy
  • Social License Failures cost
  • Why is CSR happening
  • The Mining World Has Changed
  • CSR is a complicated space
  • CSR amp Social License
  • Role of business is changing (click image to play video)
  • Case Studies (of successes)
  • Slide Number 21
  • Uranium Industry in Northern Saskatchewan
  • Challenging area
  • Challenging Times
  • Cameco in 1998
  • Cameco in Northern Saskatchewan (2010)
  • So how did Cameco and the industry do it
  • Placer Dome South Africa
  • Slide Number 29
  • Background
  • Background (cont)
  • Families amp Communities must benefit from mining
  • The Care Project
  • Implications
  • Slide Number 35
  • The Initial 4-Step Plan
  • Reality was different than we expected
  • Reality was different than expected
  • Meeting the challenges
  • TheProcess
  • Some results
  • Chicken raising business
  • Furniture making
  • Unique training programs
  • Rice farming in Mozambique
  • Spaza (convenience) shop
  • And the business value ishellip
  • Slide Number 48
  • What was in it for Placer Dome
  • And then there is HIVAIDS
  • HIVAIDS Facts (in 2000)
  • HIVAIDS Impact
  • HIVAIDS and Gold Mining
  • HIVAIDS Programming
  • Minesite Program
  • Minesite Program
  • Current Community Program
  • Community Mobile Clinic
  • And when HIV prevention doesnrsquot work
  • Industry Home Based Care
  • Home Based Care
  • INDUSTRY HOME BASED CARE RESULTS(Year One)
  • Overview of Placer Dome AIDS Programming
  • Slide Number 64
  • HIVAIDS and Rural Areas
  • HIVAIDS and Rural Areas
  • Reputational Results for Placer Dome
  • Where to next
  • Planned Program
  • Care Positive Summary
  • Andhellip
  • MDG Impacts of Placer Dome in South Africa
  • One thing leads to another
  • PNG HIVAIDS
  • PNG Outcomes (or outputs ndash Irsquom never sure)
  • Slide Number 76
  • PNG AIDS mission to South Africa
  • MDG Impacts of PNG HIVAIDS work
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • MDG Impacts of Eldorado Gold
  • Underwater Logging in Ghana
  • Private Sector and International Development
  • Group Exercise
  • Slide Number 87
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • What we covered
  • Session Objectives
  • Session Objectives
  • Remember
Page 98: Private Sector Contributions To International Development – McGill Executive Education Program Lecture

waynewaynedunncom

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 howwhy 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

waynewaynedunncom

Alignment around Shared Value For shareholders For Communities For People For Governments

Private Sector Contributions To International Development

Remember

  • Private Sector Contributions To International Development
  • Session Objectives
  • Map of the morning How we will try to meet the objectives
  • Slide Number 4
  • What is ODA and FDI
  • What is ODA and FDI
  • Why discuss Private Sector Contribution anyway
  • FDIBusiness Outcomes
  • Intention and Strategy Make a Difference
  • Why does the private sector care
  • Community Consultation and Value
  • Itrsquos Real Money
  • CSR is a Value Strategy
  • Social License Failures cost
  • Why is CSR happening
  • The Mining World Has Changed
  • CSR is a complicated space
  • CSR amp Social License
  • Role of business is changing (click image to play video)
  • Case Studies (of successes)
  • Slide Number 21
  • Uranium Industry in Northern Saskatchewan
  • Challenging area
  • Challenging Times
  • Cameco in 1998
  • Cameco in Northern Saskatchewan (2010)
  • So how did Cameco and the industry do it
  • Placer Dome South Africa
  • Slide Number 29
  • Background
  • Background (cont)
  • Families amp Communities must benefit from mining
  • The Care Project
  • Implications
  • Slide Number 35
  • The Initial 4-Step Plan
  • Reality was different than we expected
  • Reality was different than expected
  • Meeting the challenges
  • TheProcess
  • Some results
  • Chicken raising business
  • Furniture making
  • Unique training programs
  • Rice farming in Mozambique
  • Spaza (convenience) shop
  • And the business value ishellip
  • Slide Number 48
  • What was in it for Placer Dome
  • And then there is HIVAIDS
  • HIVAIDS Facts (in 2000)
  • HIVAIDS Impact
  • HIVAIDS and Gold Mining
  • HIVAIDS Programming
  • Minesite Program
  • Minesite Program
  • Current Community Program
  • Community Mobile Clinic
  • And when HIV prevention doesnrsquot work
  • Industry Home Based Care
  • Home Based Care
  • INDUSTRY HOME BASED CARE RESULTS(Year One)
  • Overview of Placer Dome AIDS Programming
  • Slide Number 64
  • HIVAIDS and Rural Areas
  • HIVAIDS and Rural Areas
  • Reputational Results for Placer Dome
  • Where to next
  • Planned Program
  • Care Positive Summary
  • Andhellip
  • MDG Impacts of Placer Dome in South Africa
  • One thing leads to another
  • PNG HIVAIDS
  • PNG Outcomes (or outputs ndash Irsquom never sure)
  • Slide Number 76
  • PNG AIDS mission to South Africa
  • MDG Impacts of PNG HIVAIDS work
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • MDG Impacts of Eldorado Gold
  • Underwater Logging in Ghana
  • Private Sector and International Development
  • Group Exercise
  • Slide Number 87
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • What we covered
  • Session Objectives
  • Session Objectives
  • Remember
Page 99: Private Sector Contributions To International Development – McGill Executive Education Program Lecture

waynewaynedunncom

Alignment around Shared Value For shareholders For Communities For People For Governments

Private Sector Contributions To International Development

Remember

  • Private Sector Contributions To International Development
  • Session Objectives
  • Map of the morning How we will try to meet the objectives
  • Slide Number 4
  • What is ODA and FDI
  • What is ODA and FDI
  • Why discuss Private Sector Contribution anyway
  • FDIBusiness Outcomes
  • Intention and Strategy Make a Difference
  • Why does the private sector care
  • Community Consultation and Value
  • Itrsquos Real Money
  • CSR is a Value Strategy
  • Social License Failures cost
  • Why is CSR happening
  • The Mining World Has Changed
  • CSR is a complicated space
  • CSR amp Social License
  • Role of business is changing (click image to play video)
  • Case Studies (of successes)
  • Slide Number 21
  • Uranium Industry in Northern Saskatchewan
  • Challenging area
  • Challenging Times
  • Cameco in 1998
  • Cameco in Northern Saskatchewan (2010)
  • So how did Cameco and the industry do it
  • Placer Dome South Africa
  • Slide Number 29
  • Background
  • Background (cont)
  • Families amp Communities must benefit from mining
  • The Care Project
  • Implications
  • Slide Number 35
  • The Initial 4-Step Plan
  • Reality was different than we expected
  • Reality was different than expected
  • Meeting the challenges
  • TheProcess
  • Some results
  • Chicken raising business
  • Furniture making
  • Unique training programs
  • Rice farming in Mozambique
  • Spaza (convenience) shop
  • And the business value ishellip
  • Slide Number 48
  • What was in it for Placer Dome
  • And then there is HIVAIDS
  • HIVAIDS Facts (in 2000)
  • HIVAIDS Impact
  • HIVAIDS and Gold Mining
  • HIVAIDS Programming
  • Minesite Program
  • Minesite Program
  • Current Community Program
  • Community Mobile Clinic
  • And when HIV prevention doesnrsquot work
  • Industry Home Based Care
  • Home Based Care
  • INDUSTRY HOME BASED CARE RESULTS(Year One)
  • Overview of Placer Dome AIDS Programming
  • Slide Number 64
  • HIVAIDS and Rural Areas
  • HIVAIDS and Rural Areas
  • Reputational Results for Placer Dome
  • Where to next
  • Planned Program
  • Care Positive Summary
  • Andhellip
  • MDG Impacts of Placer Dome in South Africa
  • One thing leads to another
  • PNG HIVAIDS
  • PNG Outcomes (or outputs ndash Irsquom never sure)
  • Slide Number 76
  • PNG AIDS mission to South Africa
  • MDG Impacts of PNG HIVAIDS work
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • Eldorado Gold in Turkey
  • MDG Impacts of Eldorado Gold
  • Underwater Logging in Ghana
  • Private Sector and International Development
  • Group Exercise
  • Slide Number 87
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • Stuff on the USB Drive
  • What we covered
  • Session Objectives
  • Session Objectives
  • Remember