Helping business toserve shareholders AND society

SIMULTANEOUSLY

-by Wayne Dunn

This time it IS in my backyard! I’m a Stakeholder, not an International Expert

This time it IS in my backyard! I’m a Stakeholder, not an International Expert

Originally published on Triple Pundit - http://www.triplepundit.com/2015/08/time-backyard-can-practice-preach/

Sunrise from my backyard,

near the proposed LNG

Project site

I’ve spent 25+ years working with major extractive projects around the world, helping them to engage and collaborate with local communities and address local concerns, to earn and maintain a ‘social license’ and align community and shareholder interests. Over seventy-five projects in dozens of countries all over the world. Suddenly one is in my backyard.

Last week a major LNG project was announced for my backyard, 2 ½ miles from my home on Vancouver Island in Canada and right beside where I love to catch prawns and crabs with my little boat.

Major resource project. In my backyard.It is a partnership between an Indigenous Tribe, the Malahat First Nation and Steelhead LNG of Vancouver. The project is a floating LNG platform to liquefy natural gas for export to global markets. It is planned for Indigenous owned land just down the shore from my home of nearly 20 years. See project description here. On the surface it seems an ideal example of an Indigenous/non-indigenous business partnership; strategic and impactful.

But, for me, suddenly I am not the ‘international expert’ but one of the ‘local stakeholders’. And already I am being bombarded with outrageous ‘facts’ seeking to ensure I oppose the project. It is different, but somehow still the same.

Page 02

Here is what I know (or don’t know, as the case may be).

Certainty? Are you kidding? Despite the claims and the certainty of opponents and proponents, we don’t know the social, environmental or even economic impacts with any degree of certainty. They will become known as things move forward. An informed, vigorous and comprehensive discussion is necessary in order to know if this project makes social, economic and environmental sense.

The Malahat Tribe is economically marginalized and deserves better. The Status Quo is not fair. Surrounded by non-indigenous people who are relatively comfortable economically, the Malahat First Nation has 80% unemployment and has somehow been excluded from much of the economic opportunity that has occurred around them over the past 100 years.

The Malahat Nation created a huge socio-economic development opportunity for themselves, they deserve a chance to see if it can be developed in an acceptable way.

Steelhead LNG is impressive. For some time I’ve admired how Steelhead has engaged and consulted First Nations and developed collaborative partnerships and mechanisms for ensuring local benefit and value from Steelhead’s LNG projects.

Not just sideshow value, but meaningful upside participation and long-term value creation. It is impressive. They have integrated Corporate Social Responsibility into their core business strategy. I was so impressed that I have had Steelhead’s CEO address one of my Corporate Social Responsibility programs.

Opposition helps make the project better. No project comes out of the gate without room for improvement. The probes, queries and analysis of investors makes the financial and business model stronger.

This time it IS in my backyard! I’m a Stakeholder, not an International Expert

Page 03

Similarly, social and environmental opponents and criticism help to identify opportunities to improve social impacts and environmental performance.

Social, environmental and economic optimization will not happen without opposition. Smart companies and projects find ways to engage with opponents and improve projects.

Viability. There is no way the project should proceed if it can’t demonstrate financial, social and environmental viability and risk

management. Fortunately our system has processes (financial markets and regulatory structures) that force demonstration of viability and risk management.

Straight truths are rare. Hyperbole, balderdash and pure bullsh*t are more common. From opponents and proponents.

This project won’t solve all the social and economic woes of the Malahat Tribe (nobody has said directly that it will). It also won’t, as the Anti-everything crowd so quickly claimed, bring Fracking to Vancouver Island or make Saanich Inlet bathtub warm.

We need discussion informed by truths. No single project will solve decades of economic marginalization. Fracking happens at the drill hole, not where gas is liquefied. And, I’m sure science can find a better use for the heat energy by-product of liquefaction than warming up Saanich Inlet.

This time it IS in my backyard! I’m a Stakeholder, not an International Expert

My son picking out a small

octopus as he helps with the prawn catch

Page 04

We can’t afford to get it wrong. The process needs to work and inform how/if we can develop it safely. We can’t afford mistakes. We need it to be the best it can be. We can’t afford mistakes environmentally (I want my grandchildren and their grandchildren to be able to catch prawns and enjoy the Saanich Inlet). We can’t afford mistakes economically.

We don’t know. So relax. At this stage we have very few facts and know little. Too much certainty is a sign of a closed mind and swallowing (or promoting) misinformation. We have a regulatory

process that is quite good. A lot better than what many countries have.

Only with an informed, vigorous and comprehensive debate will we learn if this project makes social, environmental and economic sense.

The world needs energy. Natural gas is far from the worst form of energy available (would you rather the world used unregulated coal?). Let’s have the process inform us and the discussion and the eventual decision on whether and how the project might proceed.

I know I plan to try and stay as curious, as engaged, as open as possible, and to be as wary as possible of the questionable ‘facts’ that will undoubtedly flow from those who enter the process with closed minds and unmovable positions.

This time it IS in my backyard! I’m a Stakeholder, not an International Expert

Getting ready to head out to lift prawn

traps near the proposed LNG

project site

Below are some recent articles and publications on Corporate Social Responsibility and stakeholder engagement that you may find interesting.

Mining Schools Hi Tech in CSR

CSR SWOT discover risk, value and more

Eleven strategiesfor maximizing value from CSR

CSR in Budget Crunch Times12 strategies for success

Multi-sector CSR PartnershipsNatural Partnerships – Unnatu-ral Partners

From Pariah to ExemplarApplying the 6 best practices

Engaging Internal StakeholdersSeven proven strategies

CSR CommunicationsEleven mistakes to avoid

Stakeholder EngagementSix best practices

Creating a CSR Programin eight self-serving steps

Let’s be honest:Internal CSR Communication Sucks!

CSR Metrics:You can’t measure temperature with a speedometer

Stakeholder EngagementFive common mistakes

CSR Value ContinuumA unique perspective on Shared Value

Smarter CSR Budgets8 steps to connect budget to value

28 Expert tipsOn stakeholder engagement

Don’t be an Altruistic AngelBe transparent about what’s in it for you

13 Mistakes that prevent & destroyMulti-sector CSR partnerships

NHL Sustainability ReportGood but incomplete.

Four Strategies forLocal Content Success

Professor Dunn brings a practical and realistic approach to CSR, blending theory and practice to develop realistic models and approaches to address real-world challenges

Dr. Ellis ArmstrongFormer CFO, BP Exploration

…coherent, thoughtful, stimulating and insightful… state of the art! The network of participants from the public, private and civil society sectors was incredible, some of the leading experts in the field.  

Kojo Busia, Ph. D.Snr. Mineral Sector Governance AdvisorUnited Nations Economic Commission for Africa/UNECA

…pragmatic blend of theory and practice, very applicable to helping organizations meet real-world challenges.

Frank McShaneManager, Corporate Responsibility Policy and Ethics, Talisman Energy

… readily available to provide support to organizations like Amref that are seeking partnerships, and looking to bring about positive change in a collaborative and concrete way. Wayne and the CSR Training Institute helped us to identify and connect with potential partners and are always available. The training, the expertise, the network and the overall support are world-class.

Onome AkoDirector of Strategic Partnerships, Amref Health Africa

“The program enhanced the CSR knowledge and strategic skills of our Kosmos Energy Ghana team, and offered the participants a platform for networking with professionals from other organizations across Africa and Ghana.” 

Reg ManhasSr VP Kosmos Energy

Very much helpful Wayne; some of the tips and questions you gave will be an extremely helpful guide in the process of developing a CSR Strategy for my company.

Emmanuel AubynnRegional Social Responsibility Manager, Newmont Africa

The CSR Program was excellent. A key aspect of my work is to encourage and support private sector development that contributes to Ghana’s overall socio-economic growth. The learning that I and my staff take away from attending this program will help us immensely with this responsibility. I highly recommend this program.

Hon. Rashid Pelpuo (MP)Minister of State for Private Sector Development and Public Private Partnerships (Ghana)

New and exciting insights into the theory and practice of CSR… great faculty and participants, very diversified. An excellent learning experience, very practical and useful. I’m very happy I was able to participate in it.

Hon InusahFuseini (MP)Minister of Lands and Natural Resources (Ghana)

WHAT OTHERS SAY ABOUT OUR WORK

Should Business Serve

Helping business to serve society andshareholders, SIMULTANEOUSLY.

Should Business Serve

WAYNE DUNN, PRESIDENT AND FOUNDER

SHAREHOLDERS?

SOCIETY?IT SHOULD SERVE BOTH.

Wayne Dunn is President & Founder of the CSR Training Institute and Professor of Practice in CSR at McGill. He’s a Stanford Sloan Fellow with a M.Sc. in Management from Stanford Business School.

He is a veteran of 20+ years of award winning global CSR and sustainability work spanning the globe and covering many industries and sectors including extensive work with Indigenous Peoples in Canada and globally. His work has won major international awards

and has been used extensively as ‘best-practice’ by industry and academia.

He’s also worked oil rigs, prospecting, diamond drilling, logging, commercial fishing, heavy equipment operator, truck driver and underwater logging, done a couple of start-ups and too many other things to mention.

Wayne’s career includes big successes, and spectacular failures. He hopes he’s learned equally from both.

www.csrtraininginstitute.com