Social license to operate - do mining companies pursue this concept inSweden?
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Transcript of Social license to operate - do mining companies pursue this concept inSweden?
Social License to Operate:
do mining companies pursue this concept in Sweden?
Håkan Tarras-Wahlberg - Swedish Geological AB - Stockholm School of Economics Institue for Research
What is meant by ”SLO”?
Origins in western (Anglo-American) Mining Industry
Example of definition (miningfacts.org): ”SLO refers to the acceptance within local communities of both mining companies and their projects…… The credibility of mining companies is based on mutual respect, honesty, open dialogue, transparency, timely responses to community concerns, information disclosure, and constancy and predictability in the companies’ ethical behavior. Obtaining an SLO is essential for reducing the risks of social conflicts and for enhancing a company’s reputation”.
Note, SLO ≠ Free Prior & Informed Consent (FPIC)
What mining companies may do to gain SLO
Why then?
Some research results (from Sweden)
Concluding quastion & thoughts
This presentation:
How obtain ”SLO”?
Abide by ”hard law”, in addition:
Following ”soft laws” (ICCM, OECD, WB, EITI, SveMin etc.)
Create local work & business opportunities
Initiatives for transparent disclosure
Local agreements (e.g. Impact Benefit Agreements)
Provision of information / educative efforts
Philantropy
CSR & Co C
Why do more: negative public opinion
43
67
56
65
72
84
55
55
62
63
83
87
Improving revenue management and transparency
Reducing CO2 emissions that contribute to climate
change
Improving its approach to health and safety
Using, reusing and disposing of materials responsibly
Improving community relations
Reducing environmental impacts
2010
2007
2007 2010
Why do more: the main issues of concern
Issues of concern - Sweden
Some research, then:
What do mining companies in Sweden do to gain a Social Licence to Operate ?
• Completed: study of choices made by companies in applying for mining licenses (-2012)
• Later, case study (to be selected)
• Complementary case studies: in South Africa (ongoing); and Australia (to be selected)
Why focus on permitting process: Scope & expectations of EIA
Results - Sweden: Social license to mine in Sweden: do companies go the extra mile to gain community acceptance?
Established mining companies: - no more than necessary
New mining and exploration companies: - more than legally required
In spite of this: - The established companies accepted; new ones resisted
Results - Sweden:
Results - Sweden:
Is CSR the solution then?
Yanacocha, Peru:
”Corporate Social
Responsibility
distinction”
”Conga no va”
LonMin, South Africa:
”Best in class”
” Ten years of
Sustainable
Development
Reports…. a narrative
of broken promises and
worthless commitments
to improve”
2013:
”LKAB should
do more”
But, who should do what?
Early 1900s:
”LKAB does
everything”
What should mining companies do (in Sweden)?
Mine and explore for minerals, reponsibly
Create (local ) work & business opportunities
Pay taxes, abide by laws
Consult & disclose
Provide information / educate
What else do you think they should do?
Concluding thoughts:
Swedish mining companies – beginners at CSR. Does that make them irresponsible or bad?
Results & efficiency of CSR in mining, in many places contested.
Swedish companies have become alerted to the need for CSR by influences from abroad.
How well does CSR fit in a Nordic, welfare state based context ?
Is there anything in the Swedish experiences that can be usefully applied elsewhere?