csr in the apec mining sector · government arm)-watch dog functions accounting and valuation, inc....
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CSR in the APEC Mining Sector
APEC Human Resources Development Working Group
Capacity Building Network May 2011
Disclaimer
“The views expressed in this report are the opinions of the authors and do not necessarily reflect the views of APEC, AIM-RVR CSR Center, and are without prejudice to Member’s rights and obligations under the APEC.”
APEC Project No. HRD 03/2009A Prepared by: Asian Insitute of Manage-Ramon V del Rosario Sr. Center for Corporate Social Responsibility 4/F ACCM Bldg, Benavidez corner Trasierra Streets Legaspi Village, Makati City, Philippines Telefax: (632) 752-1208 Email: [email protected] Website: http://www.rve.aim.edu Prepared for APEC Secretariat 35 Heng Mui Keng Terrace Singapore 119616 Tel: (65) 68919 600 Fax: (65) 68919 690 Email: [email protected] Website: www.apec.org © 2011 APEC Secretariat APEC#211-HR-03.1 ISBN 978-981-08-8501-4
1-1
CORPORATESOCIALRESPONSIBILITYINTHEAPECMININGSECTORINTRODUCTION Background
1-2
ScopeandObjectives
1-3
METHODOLOGY
RoundTableDiscussion
SpecialInterestSession
CaseStudyDevelopment
1-4
EducationalFrameworkDevelopment
CONTENTS
1-5
THEMININGSECTOR
1-6
TheMineLifeCycle BusinessCaseforCSRintheMiningSector
1-7
DEVELOPINGACSRSTRATEGYDefiningCSR
FIGURE 1: THE PYRAMID OF CORPORATE SOCIAL RESPONSIBILITY
1-8
THEECONOMIC,SOCIALANDENVIRONMENTALIMPACTSOFMININGSocialandEnvironmentalImpacts
1-9
1-10
Economic OtherConcerns :
1-11
APECMININGINDUSTRY
1-12
2008г.
Others33%
Australia11%
Russia17%
Philippines5%
Indonesia13%
China5%
Canada16%
FIGURE 2: MINERAL PRODUCERS IN APEC ECONOMIES
1-13
TheOperatingEnvironment:CSRRelevantLawsandInitiatives InternationalInitiatives CorporateInitiatives
1-14
GovernmentInitiatives,PoliciesandLaws
1-15
1-16
FRAMEWORKFORCSRINMININGINTHEAPECREGION
1-16
FRAMEWORKFORCSRINMININGINTHEAPECREGION
1-17
Controlling Stakeholders
CONCERNS
Economic Returns
Regulation Taxes, Development
KEY PLAYERS
Mining Companies
Government
Financiers(Upstream)
Buyers (Downstream)
SocialConcerns
Mediating Stakeholders
Media
NGOs
Multilateral Organizations
Regulation, Revenue Distribution and
Management
Cooperative
-From conflict to cooperation
-Dispute resolution, inc. Independent grievance mechanism
-Research clearing house (fact checking)
-International legal recourse
-Paying for caretaking (multi-level government arm)
-Watch dog functions
Accounting and Valuation, inc. for books and
balance sheets
Metrics & Benchmarks
Budgeting Process
e.g. regulatory
Financial and other risk
STAKEHOLDERS & CONCERNS
Key Stakeholders
Communities
Environment
Performance Monitoring &
Evaluation
SYSTEMSFRAME
Source:Herrera, 2010
Corporate
-Enabling internal staff
-Voluntary nature, reputation effect
-Social license to operate
1-18
1-19
TheMineLifeCycle,Mining’sFootprintsandStakeholders
Footprint
PreExploration
Exploration Extraction RehabilitationDecommissioning
CompanyFinancial
GovernmentIncome
StakeholderConcerns
EffectonStakeholder
Legacy
?
1-20
SUMMARYANDCONCLUSIONS
1-21
1-22
References:
1-23
1-24
1-25
ANNEX1.1:FRAMEWORKFORCSR41
CSR Framework
Source: Alfonso, Herrera and Roman, 2010
BUSINESS CONTEXT
Responsiveness
Effectiveness
FitwithMissionandCoreValues
CSRSTRATEGY
SOCIALVALUE
1-26
Integrating Social Performance
Business Context
Mission andCore Values
Current Enterprise
Assets & Competencies
SHAREHOLDER VALUE
Footprint & Stakeholders
SOCIAL VALUE
Social Assets
Sustainability and Social Values
Strategy
Source: Herrera, 2008
StrategyEngine
HW SW
LW
PerformanceMetrics
Herrera, 2009
1-27
Responsible Business
PhilosophyStrategyOperationsOwnershipStructureIndicatorsEvaluation
Little
Total
Form
al S
truc
ture
& P
roce
ss
AwarenessUnderstandingInvolvementEngagementCommitment
Weak StrongCulture of Responsibility
Weak
Balanced
StrategicAdvantage
Herrera, 2010
1-28
INTEGRATING CSR
CONTEXT
Issues, Objectives, Priorities
CSR Strategy
Elements & Implementation
Stakeholders: Concerns, Issues, Influence
Macro Environment
Corp Giving; Compliance; Value
Chain Mgt.; Strategy; Full Embed
Communication, Giving, Engagement, Partnering and
Collaboration
Evaluation
ContentContextActor
Process
COH
EREN
CE
Consistency of Policies, Accountabilities, Incentives
Players, owners, accountabilities, indicators
BusinessFootprint
Business Situation& Values
Herrera, 2010
1-29
1-30
ANNEX1.2:INTERNATIONALINITIATIVESAA1000 APELL EnvironmentalExcellenceinExploration EquatorPrinciples EthosIndicators
1-31
ExtractiveIndustriesTransparencyInitiative GlobalReportingInitiativeGRI International Council on Mining and Metals (ICMM) Principles for SustainableDevelopment Environmental, Health and Security Guides from the International FinancialCorporation ISO26000
1-32
ISO14000 UnitedNationsGlobalCompact VoluntaryPrinciplesonSecurityandHumanRights
1-33
AN
NEX
1.3
:EN
VIR
ON
MEN
TR
ELA
TED
LEG
ISLA
TIO
N54
Ec
onom
y
Envi
ronm
enta
lIm
pact
M
anag
emen
tD
ecom
mis
sion
ing
and
Reh
abili
tatio
n
Pollu
tion
Mon
itorin
gan
dC
ontr
ol
Oth
ers
Aus
tral
ia
Can
ada
1-34
Indo
nesi
a
Phili
ppin
es
Chi
le
1-35
Chi
na
USA
1-36
A
NN
EX1
.4:S
OC
IAL
REL
ATE
DL
EGIS
LATI
ON
55
Ec
onom
y
Stak
ehol
derP
artic
ipat
ion
Ta
xes,
Roy
altie
s,P
rovi
sion
of
Soci
alD
evel
opm
entP
rogr
am
Indi
geno
usP
eopl
esC
omm
uniti
es
1-37
1-38
AN
NEX
1.5
:SU
MM
AR
YO
FM
AJO
RS
TAK
EHO
LDER
SA
ND
CO
NC
ERN
SPE
RS
TAG
ESt
age
Stak
ehol
ders
So
cial
En
viro
nmen
tal
Econ
omic
1-39
1-40
Endnotes
1-41
Asia-Pacific Economic Cooperation
Case studies
Open pit mining and the proposed South Cotabato Environment Code.
Source: Sagittarius Mines, Incorporated.
Source: Sagittarius Mines, Incorporated.
Source: Sagittarius Mines, Incorporated.
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MSME
8
Programs financed by the Antamina Mining Fund
District of San Marcos
Port Punta Lobitos
District of San Marcos
Port Punta Lobitos
EXHIBIT 4:
Regional Government
v
MINING CANON 50% of Income tax
10%
District of Mining
Operations
Province of Mining
Operations
Department of Mining
Operations
25% 40%
Investment Projects
25%
Regional Government
National Universities
80% 20%
7
-
- -
- -
Japan
Republic of KoreaChinese Taipei
India
Other Asia
European Union 27Other
China
Thailand
India
Japan
Republic of Korea
TOTAL ENERGY Exports A US$20.b
TOTAL MINERALS Exports A US$34.9b
23%
50%
23%
49%
23% 23%
50%43% 43% 43%
32%22%
ISO 14001 Global Reporting Initiative
ILO Conventions OECD MNE Guidelines
AA1000 UN Global Compact
Use now Use in the future
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