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Developing a conflict-sensitive business approach

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1 Developing a conflict-sensitive business approach
Aim of this slide: Title slide for session on developing a conflict-sensitive business approach. Notes to the presenter: This session is designed to be presented by community relations personnel to an audience of staff in non-CR roles, but who have some interaction with external stakeholders. In order to run this session effectively, you will need the following: A flipchart, flipchart paper and marker pens; Sufficient space to team participants up into small working groups. This session is designed to take approximately hours. Developing a conflict-sensitive business approach Audience C: Training for staff in non-Community Relations roles, but who have some interaction with external stakeholders

2 Aims and objectives of this session
In this session we’ll explore: What do we mean by conflict? Why is conflict relevant to business? What is the business case for developing a conflict-sensitive approach? What does this mean in practice? Further resources Aim of this slide: To introduce the objectives and scope of this awareness raising session. Key points: The objective of this session is to provide an introduction to understanding conflict and the role of mining within this – with a view to developing a more conflict-sensitive approach to business. By “conflict-sensitive approach” we mean the actions that businesses can take to ensure that investments and operations do not provoke or intensify conflict. With this in mind, the training session seeks to answer the following questions: What do we mean by conflict? Why is conflict relevant to business? What is the business case for developing a conflict-sensitive approach to business? What does this mean in practice? Further resources Note: the emphasis of this training is understanding and analysing conflict, in order to develop a conflict-sensitive approach to business. The focus is not on learning the skills required for mediating conflict.

3 What do we mean by “conflict”?
Understanding the terminology we use What do we mean by “conflict”?

4 What do we mean by conflict?
“At it's simplest, it is any tension or disagreement between people or institutions. At its most extreme, it is a full scale war fought between or within states. It covers arguments and atrocities, simple quarrels, and mass killings. But conflict is really a consequence. It is what happens when disagreements are not resolved or interests are considered incompatible. Violent conflict is what happens when one or more parties conclude that the only, or the most effective, means of advancing their agenda is through violence.” Scoping paper: Mining and Conflict. Prepared for ICMM (2013) Aim of this slide: To share the definition of conflict with the participants, as defined in the ICMM Scoping Paper on mining and conflict (2013). Key points to pull out: Conflict exists along a continuum (simple disagreements to full scale war) (e.g. a verbal disagreement between a relocated resident and the community relations officer regarding the timing of a planned compensation meeting [at one end of the continuum] versus community riots and damage to company property due to dissatisfaction with the resettlement process and associated compensation [further down the continuum]; Conflict is a consequence – it is what people do (the action taken) when they consider their own and another/others’ interests to be incompatible; Only some conflict becomes violent. Reference for material used: Scoping paper: Mining and Conflict prepared for ICMM (2013)

5 The nature of conflict Conflict exists along a continuum (disagreements to full scale war) Conflict is a consequence – based on actual/perceived incompatibility Inherent in humanity, part of life, inevitable Conflict can be a source of change and force for positive change Varies in intensity, depending on size of incompatibility and response Varies in form, dependent on many wider factors Only some conflicts become violent. Aim of this slide: To further explore the nature of conflict Key points: Conflict exists along a continuum (simple disagreements to full scale war); Conflict is a consequence of perceived or actual incompatibility of values, principles and goals. Conflict is an inherent and inevitable part of human relationships. It is the source of the dynamism that is part of all forms of change. Some conflict can be a force for positive change. This happens when it creates awareness, corrects injustices, finds new and better ways of doing things, and promotes personal development. Sometimes, the escalation of conflict helps to resolve inequality, and create positive change. Consider the strategies of national liberation movements and mining affected communities. Whilst conflict is largely inevitable in day to day life, what varies from situation to situation is the intensity and form of the conflict. The intensity of the conflict varies with the (perceived) degree of separation of the views of the parties, and how the parties choose to deal with this separation. The form of the conflict is dependent on the interconnected elements of a range of issues, e.g.: The parties’ historical and contemporary relationships Their relative power Their goals and how they choose to pursue them Their innate preferences and collective personalities The existing systems and norms for managing differences Their perspectives and perceptions Only some conflicts become violent. Reference for material used: Scoping paper: Mining and Conflict prepared for ICMM (2013)

6 Exercise What examples do you have of conflict associated with your department and/or operation? In what way has it affected your operation or department, and you personally? Aim of this slide: To give people a chance to share experiences of conflict at their operation. Special note for the instructor/s: put this question out to the group, allowing for individual responses to the question. No formal facilitated technique necessary here. Allow for 5-10 minutes discussion.

7 The relevance of conflict to business

8 The two-way dimension of conflict
The company may cause impacts which contribute to conflict, or may exacerbate pre-existing conflict/tension Conflict can impact a company/project, with a variety of costs Aim of this slide: To outline the two-way dimension of conflict, and its implications for business. Key points: Conflict has a two-way dimension: A company/project may cause conflict (e.g. resettlement causes conflict between host and relocated communities), or may interact with pre-existing conflicts/tensions (e.g. hiring policy selects staff from one ethnic group, increasing resentment from others). At the same time, conflict can impact a company/project (e.g. infrastructure may be destroyed), imposing a variety of costs, security risks and concerns. In order to manage conflict, one needs to be able to understand both of these dimensions – i.e. what conflict might the company be causing, what conflict might be impacting on the company, and how these two may be related and/or exacerbating one another. Reference for material used: International Alert: Conflict-Sensitive Business Practice: Guidance for Extractive Industries (2005)

9 Common key social risk areas and flashpoints
Vulnerabilities for companies and communities Employment issues Social investments Unions Stakeholder engagement Corruption and transparency Artisanal mining Environmental issues Dealing with armed groups Resettlement Compensation Human rights Indigenous Peoples Security Company operations Aim of this slide: To highlight the key flashpoints that trigger conflict in the mining and metals industry. There are common key risks and flashpoints associated with the mining industry. These flashpoints represent activities or triggers that have the potential to trigger conflict – between the company and community, and within communities (and/or other stakeholders). Understanding your context will provide insight into the nature of these flashpoints and associated risks at your particular operation. For more information on these flashpoints, see International Alert: Conflict-Sensitive Business Practice: Guidance for Extractive Industries (2005), Section 4. Note: details on artisanal miners and employment issues come from Section 3 of ICMM’s Human Rights in the Mining & Metals Industry - Overview, Management Approach and Issues (2009).

10 Causes of conflict 2015 Aim of this slide: To link the previous slide on “conflict flashpoints” with data gathered on the key causes of conflict Key points: As illustrated in this slide, environmental issues, water and use of force, are amongst the main causes of conflict incidents between companies and communities Interesting to note from a community relations perspective, is that these environmental and water issues were previously separated out from “community relations”, as they were seen as being solely the remit of environmental departments. This graph highlights well the interconnectedness of issues (e.g. how environmental issues impact on company-community relations), and how “community relations” is touched by all aspects of an operation, its context and associated issues. What this means is that the scope of issues ‘held’ by community relations personnel is becoming increasingly complex and challenging. To additional points to note: Regarding environmental issues: Water is the single most dominant contributor to operation–community conflict in the world. Note: This graphic is taken from an internal ICMM report

11 The direct costs of conflict to business
Example Security Higher payments to state/private security firms; staff time spent on security management. Risk management Insurance, loss of coverage, specialist training for staff, reduced mobility and higher transport costs. Material Destruction of property or infrastructure. Opportunity Disruption of production, delays on imports; aborted greenfield investments or expansions. Time Senior management involvement, additional staff time, legal advice. Capital Increased cost of raising capital. Personnel Kidnapping, killing and injury; stress; recruitment difficulties; higher wages to offset risk; cost of management time spent protecting staff. Reputation Consumer campaigns, risk-rating, share price, competitive loss. Litigation Expensive and damaging law suits. Aim of this slide: To provide some specific examples of the cost of conflict on business. Key points: The range of costs imposed by conflict on companies are direct and indirect. Direct costs most obviously relate to the increased cost of protecting staff and property. Indirect costs are those that impact the operating environment, only to rebound as costs on the company. Direct and indirect costs imposed by conflict on companies are listed in the above slide (Box 1). A ‘conflict-sensitive’ approach to doing business – one that seeks to avoid these costs by developing informed conflict-management strategies, and working towards healthy company-community relations – is therefore a strategic choice for company managers. Reference for material used: International Alert: Conflict-Sensitive Business Practice: Guidance for Extractive Industries (2005), Box 1, Page 2.

12 The indirect costs of conflict to business
Example Human Loss of life, health, intellectual and physical capacity. Social Weakening of social capital. Economic Damage to financial and physical infrastructure, loss of markets. Environment Pollution, degradation, resource depletion. Political Weakening of institutions, rule of law, governance. Aim of this slide: To provide some specific examples of the indirect costs of conflict on business. Reference for material used: International Alert: Conflict-Sensitive Business Practice: Guidance for Extractive Industries (2005), Box 1, Page 2; Scoping paper: Mining and Conflict. Prepared for ICMM (2013), and ICMM In-Brief: Research on Company-community Conflict (2015).

13 The relevance of conflict to your role
Conflict is caused by common mining activities Awareness needed regarding your department’s role in exacerbating or triggering conflict Conflict impacts the whole business All conflict impacts carry a personal cost, regardless of your department’s role in the conflict. Skill yourself in conflict-sensitive business practices. Aim of this slide: To outline the relevance of conflict and a conflict-sensitive business approach to their role. Note to the facilitator: Before going through the content on this slide, ask the participants to feedback on why they think conflict and a conflict-sensitive approach to business might be relevant to their roles. The preceding slides should have given them the answers to this question, but it is useful to ask the question nonetheless. Write up the their answers on the flipchart and afterwards go to this slide. Key points: By way of summarising, the rationale for the relevance of conflict and a conflict-sensitive approach to non-CR roles lies in the cause of conflict and its consequences: Conflict is caused by common activities associated with the mining industry – regardless of your department, you need to be aware of the potential of your activities to trigger conflict, and put measures in place to avoid this (see Slide 9). If conflict arises, it has the potential to impact the whole business in a variety of ways (see Slide 11). All of the costs to business highlighted on the previous carry with them a personal impact and cost, regardless of whether your department is directly involved in the conflict situation or not. Company-community conflict create a climate of discomfort and stress (and sometimes safety risks) that affects all employees. With this in mind, it is important that all personnel are familiar with conflict-sensitive business practices such that conflict can be understood, avoided (where possible) and managed.

14 Case study: Obuasi Mine, Ghana
Context: Ashanti region of southern Ghana Underground gold mine with a history of mining dating back to 1890s, owned and operated by AngloGold Ashanti since 2004 Situated in a largely forested region and surrounding land occupied by subsistence farmers 80 communities lie within a 30km radius of the mine Suspended operations at the end of after incurring heavy financial losses over several years Employees paid severance as per Ghanaian law. Aim of this slide: To introduce the Obuasi Mine case study from Ghana, which provides an illustration of the cost of conflict to business to all stakeholders involved. Key points to add to the above slide: Since the suspension of operations in 2014, Obuasi has been in a government-approved limited operations phase. During this time, AngloGold Ashanti conducted a feasibility study needed to determine whether the mine can be redeveloped in to a profitable, productive operation that can once again be a significant employer and contributor to the local, regional and national economies in Ghana.

15 Case study: Conflict timeline
End of 2014 Mine suspends operations as a result of heavy financial losses for several years Pays employees severance per law and agreements Launches feasibility study to reorganise operations to be more profitable and sustainable. 2 Feb 2016 Government withdraws military protection at mine, which had been in place since March 2013 Incursion of several hundred informal miners onto site. 6 Feb 2016 Accidental death of Communications Manager as a result of trying to escape informal miner incursion Company stops all but the most critical functions to minimize contact between employees and informal miners. Feb-Sep 2016 Company states that despite intensive ongoing engagement with the authorities, no steps have been taken to protect the mine and situation is deteriorating Informal miners continue to damage parts of the ore body and important infrastructure Estimated 130 fatalities of informal miners due to lack of safety, accidents, etc. Number of informal miners grows over time, into thousands Company appeals to ICSID and World Bank for action. Oct 2016 Government finally takes action to remove informal miners and secure area Protests break out, prompting the Municipal Security Council to extend relocation period up to 10 November 2016. Aim of this slide: To provide an outline of events as they relate to conflict at Obuasi Mine. Key points: Between March 2013 and February 2016, the government military forces provided security services for the mine. In February 2016 these security services were withdrawn without explanation. This resulted in an incursion of hundreds, and eventually thousands of informal miners onto the concession, resulting in injuries and deaths due to accidents caused by unsafe working conditions. The company appealed to various levels of government to restore order; however, no action was taken. In fact, at some point security forces did return to the mine, but they did not remove the informal miners. Instead, they reportedly secured entrances to the mine shafts for these miners. After 9 months of uncontrolled informal activity on the mine, and a state of force majeur, the government finally began to move the informal miners out, and onto a prepared site that they could use instead.

16 Case study: The cost of conflict
Company Personnel: Fatality of Communications Manager Security, Risk Management: Ongoing safety risk to mine employees performing essential services; deployment of 400+ security personnel Opportunity, Time: 9+ months delay in carrying out feasibility study, and resulting delay in ability to start any operations and related financial implications Material: Damage to infrastructure and ore bodies (unassessed to date). Informal Miners Human: Estimated 130 fatalities and most likely many more injuries. Communities Human: Threat of cutting off of essential services, like electricity, that were provided by the mine Social: Community disruption as a result of influx of informal miners into the area. Government bodies Political: Weakening of rule of law, governance capacity Economic: Damage to relationship with mining company and likely damage to the country’s reputation for ‘ease of doing business’, possibly hindering future investment. Aim of this slide: To provide an overview of the costs of conflict at Obuasi Mine. Key points to add to the above slide: As of October 14, 2016, the company was awaiting for the government to complete the removal of informal miners, which was scheduled to finish on 11 November. Once removal was complete, the company was planning to undertake an assessment of all infrastructure and ore body damage caused by the event.

17 A conflict-sensitive approach to business
Looking at what this means in practice A conflict-sensitive approach to business

18 Tools that support a conflict-sensitive approach (1 of 2)
Operational guidance charts These link the typical project cycles of oil and gas or mining investments to the relevant elements of Conflict-Sensitive Business Practice Guidance and other recommended actions. Screening tool A rapid assessment to identify key conflict issues early in the pre-investment phase Provides an initial analysis of the country and its conflict dynamics and flags key issues of concern Identifies the level of risk as well as show-stoppers. Aim of this slide: To introduce what a conflict-sensitive approach to business means, and the guidance available to support this. Key points: Given the business risks and costs associated with conflict, most companies obviously have no interest in exacerbating or being caught up in conflict. However, most companies (mining and other) often lack the skills and experience to avoid doing so. Despite advances in political risk methodologies, ESIA standards, and wider corporate social responsibility, fundamental gaps exist in company understanding of causes of conflict and its impacts, and how best to manage it. To help address this gap, International Alert (an international NGO) developed a guideline called Conflict-Sensitive Business Practice: Guidance for Extractive Industries (2005). This guideline currently under revision. The guidance aims to address the gap that exists in traditional impact and risk assessment and management processes in analysing and assessing the full range of issues that might cause, trigger or exacerbate conflict. The guidance is divided into four main sections/tools: Operational Guidance Charts Screening Tool Macro-level Conflict Risk and Impact Assessment Tool Project-level Conflict Risk and Impact Assessment Tool (Notes: 1 of 2)

19 Tools that support a conflict-sensitive approach (2 of 2)
Macro-level Conflict Risk and Impact Assessment tool (M-CRIA) An expert-led context analysis on national and regional level Explores issues of concern raised in screening. Identifies potential interactions of projects with these issues. Project-level Conflict Risk and Impact Assessment tool (P-CRIA) Deeper analysis of potential interactions between a project and its context Includes processes for participatory analysis and decision-making with stakeholders Helps to build trust and design shared actions that build peace. Anglo American, Socio-Economic Assessment (SEAT) Toolbox, Version 3, 2012, Tool 4C also provides a very useful guide on how to understand and manage conflict – this specific tool was also created by International Alert. To summarise then, a conflict-sensitive approach to doing business is one that seeks to understand conflict (it’s causes and consequences), and based on this, to develop informed conflict-management strategies, which reduce business risks and support healthy company-community relations. Reference for material used: International Alert: Conflict-Sensitive Business Practice: Guidance for Extractive Industries (2005), Box 10. (Notes: 2 of 2)

20 Key components of a conflict-sensitive approach
Comprehensive contextual understanding of conflict (existing and potential) Two-way understanding of conflict impacts Conflict-specific management strategies Identifying stakeholders and informing engagement strategies Building stakeholder support for the project Aim of this slide: To introduce the key aspects of a conflict-sensitive approach to business. Key points: At the heart of a conflict sensitive approach is the notion of “conflict analysis” – essentially, understanding the context, issues and stakeholders that shape an existing or potential conflict – and on the basis of this understanding, developing measures to avoid or manage potential or existing conflict. One of the tools developed by International Alert (the Project-level Conflict Risk and Impact Assessment [PCRIA] Tool), identifies the following key steps as being essential to ensuring a conflict-sensitive approach: Conducting a comprehensive analysis of the context around project sites, including any existing or potential conflict Predicting, monitoring and mitigating the two-way project/context impacts Generating appropriate management and mitigation strategies that respond to the needs and priorities of local communities, as well as the company itself Identifying stakeholders and informing engagement strategies Developing buy-in to, and ownership of, the project among stakeholder groups. Reference for material used: International Alert: Conflict-Sensitive Business Practice: Guidance for Extractive Industries (2005)

21 Moving onto identification of impacts
Exploring causes, drivers and triggers Aim of this tool: To introduce another conflict analysis tool in SEAT 3, SEAT 3, Tool 4C. Key points: Typically, when trying to understand conflict, people tend to focus on the triggers and manifestation of the conflict, without adequately considering at the root causes and drivers (the same as focussing on the high winds, rather than the weather systems that are causing it). In understanding conflict, it is import to distinguish between the root causes of conflict, the drivers of conflict, the triggers and the manifestation of the conflict. SEAT 3, Tool 4C, Figure 4.2 offers a helpful visual aid for understanding these different elements of conflict. Root/Structural Causes: Pervasive factors that have become built into the policies, structures and fabric of a society and may create the pre-conditions for violent conflict; Drivers of conflict: Factors contributing to a climate conducive to violent conflict or its further escalation, sometimes symptomatic of a deeper problem; Triggers/events: Single key acts, events, or their anticipation that will set off or escalate violent conflict; Manifestation: How violence/conflict actually manifest/occurs. Special note to the instructor/s: further examples of each of the above terms are provided in SEAT 3, Tool 4C, Table 4C.1 (also pasted as a graphic in Slide 15). Reference for material used: Anglo American, Socio-Economic Assessment (SEAT) Toolbox, Version 3, 2012, Tool 4C.

22 Exercise: Using the ‘Problem Tree’
For one unresolved conflict situation/issue, identify: The trunk (the name and nature of the conflict) (e.g. tensions between fishing community and pastoralists) The roots: the root causes/structural factors of conflict (e.g. poverty, ethnic prejudice, corruption) The branches and leaves: the manifestations/effects of the problems (e.g. conflicts between ex-combatants and host communities, land disputes of returning refugees) The trigger: single key events (or their anticipation) that can set off or trigger conflict. ..... and RISKS to your company from the conflict. Capture your answers on a flipchart, and feed back to group. Aims of this slide: To introduce two tools within the P-CRIA which aid root cause conflict analysis. These are: The Problem Tree and the Peace Flower. Note: the exercises on Slide 22 and 22 should be run in parallel, with half the class doing the one exercise, and the other half of the class, the other. Exercise: Take half the class and divide participants into groups of 4-6, each with access to flipchart paper and pens. One member of each group to select one conflict situation currently affecting their operation and associated communities. Encourage the groups to choose a conflict situation that is not yet resolved. Then, for the selected conflict situation, work to identify the following (see examples on slide 26): The name and nature of the conflict (trunk) The roots causes/ structural factors (roots) (participants to consider internal AND external causes) The manifestations/effects (branches) The trigger (this is an added consideration, taken from other International Alert guidance) And the risks posed to your company/operation. Slides 24 and 25 provide prompts and guidance material from SEAT 3 Tool 4C, which will assist with the exercise. Participants should be given 30 mins for the discussion, and 15 mins for feedback. If time is tight, then just choose one group to feed back.

23 Exercise: Using the ‘Peace Flower’
For one peace situation, identify: The centre of the flower/it’s name: the peace issue (e.g. good company/community relations) Roots: the root causes/systemic factors which support peace (e.g. access to resources) Stem: processes in place (e.g. strong community structures) Petals: on-going peace efforts (e.g. open lines of communication between company and community) Then, identify the key learning which can be replicated/transferred to promote peace elsewhere in relation to your company and associated communities (possibly in a situation where tension currently exists or has the potential to arise?) Capture your answers on a flipchart, and feed back to group. Aim of this slide: To outline the exercise to follow. Activity: Take the other half of the class, and divide participants into groups of 4-6, each with access to flipchart paper and pens. One member of each group to select a situation/relationship/environment which they would define as peaceful/harmonious, and which pertains to your operation and associated stakeholders and/or community/s. Select a situation where the level of peace/harmony perhaps surprises you, or is not fully understood. Then, for the selected peace situation, work to identify the following: The peace issue/its name (the centre of the flower); The root causes/systemic factors which support peace (roots); The processes in place (stem); The on-going peace efforts (petals) Then, identify the key learning from this ‘peace analysis’ which can be replicated/transferred to promote peace elsewhere within your company and associated communities (possibly in a situation where tension currently exists or has the potential to arise?) Slides 24 and 25 provide graphics from SEAT 3 Tool 4C, which will assist with the exercise (although the focus of these two slides is on understanding conflict situations). Participants should be given 30 mins for the discussion, and 15 mins for feedback. If time is very tight, then just choose one group to feed back.

24 Exercise: Supporting material to help identify causes, drivers and triggers
Can be internal and/ external Root cause Aim of this slide: To provide this information as an aid to the Problem Tree and Peace Flower exercises. Anglo American, SEAT 3, Tool 4C (developed by International Alert)

25 Exercise: Supporting material for different categories of causes and drivers
Aim of this slide: To provide this information as an aid for the Problem Tree and Peace Flower exercises. Anglo American, SEAT 3, Tool 4C (developed by International Alert)

26 Strategies for managing company conflict impacts
Peace-building “Do no harm” Compliance Proactively contributing to a more stable environment Develop measures to avoid creating or worsening conflict Aim of this slide: To outline what management and mitigation mean in the context of conflict. Key points: International Alert’s Conflict-Sensitive Business Practice guidance looks at management of conflict at three different levels. In summary, companies can adopt a range of strategies for managing corporate/conflict impacts (see Figure 1: Strategies for managing company/conflict risk, Page 10): At a minimum, companies should comply with national regulations (even if host governments are not implementing or monitoring them effectively) and internationally agreed laws, conventions and standards. This is shown as ‘compliance’, at the base of the pyramid. Beyond compliance, companies should be aware of their ability to create or exacerbate conflict and develop mitigation measures to avoid or minimise negative impacts. This requires improved conflict risk and impact assessment tools, and is shown as ‘do no harm’ at the centre of the pyramid. It should be noted that merely acting to prevent conflict may create further tensions in the long term – the best way to avoid conflict from the outset is through positive engagement and on-going relationship building. Building on ‘compliance’ and ‘do no harm’ is the role companies can pro-actively take in contributing to the alleviation of the structural or trigger causes of conflict - in the interests of a more stable operating environment and safer world. This is shown as ‘peacebuilding’ at the top of the pyramid. Reference for material used: International Alert’s Conflict-Sensitive Business Practice (2005) (Figure 1) With national legislation and internationally agreed laws and standards.

27 Mitigation guidance through a conflict lens
A company’s conflict mitigation strategies should: Address all aspects of business impact Address real needs at the local level Be sustainable Avoid creating a dependency culture by simply providing services Consider and address the wider structural issues underpinning the conflict Ensure participatory design of mitigation strategies. Aim of this slide: To outline what management and monitoring mean in the context of conflict. The Project-level Conflict Risk Assessment Tool suggests that company’s conflict mitigation strategies should accomplish several things: Address all aspects of business impact Address real needs at the local level Be sustainable Avoid creating a dependency culture by simply providing services Take into account and address the wider structural issues underpinning the conflict or under-development within the society. The main commentary to make regarding these bullets is as follows: The first bullet shows a link to the expanded scope of responsibility emphasized in the human rights guidance; Note the focus on addressing needs, being sustainable, and avoiding dependency by simply providing services – this points to the optimisation of project benefits as an approach to conflict management. (i.e. sometimes, the proactive creation of sustainable benefit and harnessing of opportunities is a valuable approach to conflict avoidance and/or management. It doesn’t always have to be about managing negative impacts. Optimising benefits is also an important approach. The second last bullet speaks to the need to consider the structural issues underpinning the conflict, and the make conscious decisions about if/how the company can works towards addressing these. Seek stakeholder participation in the design of your mitigation strategies – this will help ensure the suitability of your measures. Note: Page 11 of the P-CRIA Tool provides some example conflict mitigation strategies – based on particular conflict causes; similarly, Table 4C.3 in SEAT, Tool 4D also provides some examples of conflict prevention and mitigation measures. Reference for material used: International Alert’s Conflict-Sensitive Business Practice (2005) (Section 3: P-CRIA, Step 3, Page 27)

28 Monitoring KPIs should be developed in relation to: Causes of conflict
Manifestations of conflict Effectiveness of preventative or mitigation measures. Aim of this slide: To provide a brief overview of some monitoring considerations relating to conflict assessment and management. In order to track progress, performance indicators should be developed in relation to the: causes of the actual or potential conflict (e.g. pollution, food shortages, etc.); manifestations of actual or potential conflict (e.g. property damage, “no-go” areas, injuries, fatalities, etc.); and; effectiveness of preventative or mitigation measures (e.g. whether measures have prevented or reduced conflict). It is also important that key performance indicators are a mix of both input/output and outcome/impact indicators: Input: What we put in (e.g. resources, money, staff, etc.) Output: Products of that input (e.g. increased number of training facilities for unemployed youth) Outcome: What happens because of the activities carried out (short term to medium term) (e.g. proportion of unemployed youth that gain access to employment) Impact: What happens because of the activities carried out (long term) – the final goal that you want (e.g. cessation of community protest due to limited employment opportunities at the mine) These indicators should be reviewed over time, as part of a systematic monitoring plan. Where monitoring measures pick up the need for changes to be made to existing conflict management measures and/or ones understanding of the conflict situation, the necessary adjustments should then be made. If indicators tracking causes of conflict move in the desired direction, but conflict is not reduced, this could indicate that the causes of conflict have not been properly identified.

29 At the heart of a conflict-sensitive approach
“Early, consistent, meaningful and empowering stakeholder engagement processes lie at the core of a conflict-sensitive business approach.” Aim of this slide: To highlight the role of engagement in understanding and managing conflict. Key points: Early, consistent, meaningful and empowering stakeholder engagement processes lie at the core of a conflict-sensitive business approach. Transparency about company plans, schedules and prospects, and the creation of effective channels through which stakeholders can raise and address problems, invites trusting relationships, reduces uncertainty over the future and creates a sense of shared ownership over a company’s operations. Engaging with stakeholders (i.e. having them participate in the conflict analysis process) also plays a key role in identifying and understanding the causes and consequences of conflict, as well as the development of suitable conflict management responses. NB: A conflict-sensitive business approach is therefore about understanding and analysing conflict, and also about the quality of relationships created between a company and its associated stakeholders. Reference for material used: International Alert’s Project-level Conflict Risk and Impact Assessment Tool, (2005)

30 In conclusion: An overview
Conflict is inevitable, and can be a force for positive change It should therefore not be avoided at all costs However, conflict has negative consequences for both business and associated communities A conflict-sensitive approach is thus essential This understanding forms the basis of your interventions. At the heart of this approach is meaningful stakeholder engagement, and developing an understanding of the conflict - the context, issues, stakeholders, and company’s role in the conflict. Aim of this slide: To offer some concluding thoughts regarding conflict and a conflict sensitive approach to business. Key points: Conflict is an inherent and inevitable part of human relationships, and is largely inevitable in day to day life. Some conflict can be a force for positive change. This happens when it creates awareness, corrects injustices, finds new and better ways of doing things. Sometimes, the escalation of conflict helps to resolve inequality, and create positive change. Conflict therefore should not be avoided at all costs. That said, conflict can have negative consequences for both companies and associated communities. For companies, these costs include lost productivity, lost opportunities, lost time, damage to property, impact on reputation, etc. For communities, these costs can include loss of life, injury, damage to property, breakdown in relations and lost social capital, and so on. So, while conflict can bring attention to issues that need further attention, and thus support positive change, it remains important that we adopt a conflict-sensitive approach to business, such that the negative consequences of conflict are avoided and/or kept to a minimum. As discussed, a conflict-sensitive approach to business refers to the actions that companies can take to ensure that investments and operations do not provoke or intensify conflict. At the heart of a conflict sensitive approach is meaningful stakeholder engagement, and alongside this, “conflict analysis” – essentially, understanding the context, issues and stakeholders that shape an existing or potential conflict, and the role of the company in the conflict – and on the basis of this understanding, developing measures to avoid or manage potential or existing conflict.

31 The benefits of this approach
Improved company- community relations More informed management responses and risk management Tracking of risks across the project life cycle Warning system for weaknesses in existing risk management Improved security of personnel, facilities and communities. Aim of this slide: By way of conclusion, to outline the overall business benefits of a conflict-sensitive approach. Key points: A conflict-sensitive approach to business: Lays the foundation for improved company-community relations, and associated social licence to operate benefits; Allows for a level of analysis that separates out cause, from driver, from trigger, from manifestation – this allows for more informed management responses and improved risk management; The guidance provided by International Alert provides tools that are customised for particular phases in the life-cycle of the operation, from pre-investment screening to operational phase, and into closure; Conflict, although inherent to human relationships, provides a useful indicator of how well (or not) a company is managing its impacts on communities and other affected stakeholders (including the environment). A “conflict risk lens” therefore serves as “warning system” for improved risk management across the operation. Conflict management has the distinct benefit of improved security of personnel, facilities and communities, and is thus critical to operational sustainability and viability.

32 Further resources The following resources are helpful:
Anglo American, SEAT 3, Tool 4C Conflict Assessment and Management (2012) ICMM In-Brief: Research on Company-community Conflict (2015) ICMM: Understanding Company-Community Relations Toolkit (2015) International Alert: Conflict-Sensitive Business Practice: Guidance for Extractive Industries (2005) International Alert: Red Flags: Liability risks for companies operating in high risk zones (2008)

33 International Council on Mining and Metals (ICMM) 35/38 Portman Square London W1H 6LR United Kingdom Switchboard: +44 (0) Main Fax: +44 (0)


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