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 for use by community relations practitioners who are either:
new to community relations practice; and
new to concepts and approaches regarding a conflict sensitive business approach.
In order to run this session effectively, you will need the following:
A flipchart, flipchart paper and marker pens;
This session is designed to take approximately hours, including the exercises.
Within this pack, you will find slides that are “hidden” and which are a repeat of the previous slide. Do not delete these! Due to restrictions on the length of the script in the notes section, the explanatory text sometimes has to flow over more than one slide. Hence the repeated slide/image, but the different text in the notes section. Your participants will not see these hidden slides, and you will have the benefit of the full script.
Developing a conflict-sensitive business approach
Audience B:
Detailed training for Community Relations Professionals

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. 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.

4. What do we mean by “conflict”?

5. 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)

6. 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)

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. Potential interaction between project and conflict
The company causes…
SOCIAL IMPACTS that contribute to conflict
The conflict causes…
SOCIAL IMPACTS that affect the company
Resettlement leads to a deepening of power imbalances within a community.
Hiring policy inadvertently privileges staff from one ethnic group, causing resentment in others.
Large proportion of youth become militarised and intimidate local staff.
Populations dislocated by conflict lose access to livelihoods and steal from the company, or try to generate income by kidnapping staff.
ENVIRONMENTAL IMPACTS that contribute to conflict
ENVIRONMENTAL IMPACTS that affect the company
Company use of land leads to competition among previous land users for access.
Damage to sacred sites of indigenous people fuels state/community conflict.
Scorched earth tactics of conflict actors damage operations.
Conflict actors target oil fields, pipelines or other structures, causing spills.
Aim of this slide: To provide some examples of the two-way dimensions of conflict, as provided within International Alert: Conflict-Sensitive Business Practice: Guidance for Extractive Industries (2005), Box 4, Page 5.

10. 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).

11. Incidents of conflict over time
Aim of this slide: To present findings which illustrate incidents of conflict over time
Key points:
In recent years, mining related company–community conflicts have received a great deal of attention by advocacy organizations and traditional and social media, creating the perception that such conflicts are on the increase.
In support of this perception, ICMM’s research findings show a progressive increase in the number of reported incidents between 2002 and 2012, and then a small decrease in Followed by a period of increase in 2014 & 2015.
One needs to note that this increase occurred over a period of significant investment in the mining and metals sector, and the research does not reflect whether the reported incidents represent an increase or decrease relative to the numbers of projects and operations. The global financial crisis, and the associated rise in poverty and stakeholder expectations during this period, also comes into play.
However irrespective of whether the reported incidents truly reflect an increase in relative or absolute terms, they certainly explain the perception that mining related company-community conflicts are on the increase.
Reference for material used: ICMM internal presentation

12. 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

13. The business case for adopting a
conflict-sensitive approach

14. The consequences of conflict on the company
Lost productivity: protests, blockades, sabotage, etc.
Lost opportunity: aborted greenfield investments, decision not to pursue the purchase/sale/expansion of existing operations
Lost time: senior management involvement, additional staff time, legal advice
Lost reputation: international campaigns, litigation.
Communities also suffer the consequences of conflict.
Aim of this slide: To outline the consequences (or impact) of conflict on companies.
Key points:
In an earlier slide we spoke about conflict as a consequence. With this in mind, it is useful to consider the consequences and impacts of conflict on the company, as it supports the importance of developing a conflict-sensitive approach to business, and the importance of resilient company-community relations.
The above slide outlines the different negative consequences (losses) resulting from conflict.
As noted in the ICMM InBrief, costs resulting from these losses can be significant. For example, a 2014 study estimates that lost productivity due to temporary shutdowns or delays at a major mining project with capital expenditure of between US$3 and 5 billion will suffer costs of roughly US$20 million per week of delayed production in net present value (NPV) terms, largely due to lost sales.
Communities are also negatively affected by conflict. Some ‘costs’ are the same for communities as for companies, such as lost productivity, opportunity and time. Conflict can also undermine or damage their formal or informal institutions and decision-making structures, erode trust and damage relationships within communities.
In extreme cases, it can result in physical harm to community members, company employees or security providers.
It is important to note that the absence of conflict and violence in a project area does not mean that it won’t occur in the future. Major investments inevitably alter traditional systems and, even in relatively peaceful environments, can easily lead to a heightening of tensions and possibly violence. The absence of conflict in a project area is therefore no guarantee of what might happen in the future. Conflict-sensitive business practices are therefore essential, regardless of the current conflict status.
Reference for material used: Scoping paper: Mining and Conflict. Prepared for ICMM (2013), and ICMM In-Brief: Research on Company-community Conflict (2015).

15. 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.

16. 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).

17. 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
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.

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.
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
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.

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. A model for analysing conflict in support of a business-sensitive approach
Components of conflict analysis
Causes, drivers and triggers
Actors and dynamics
Context and issues
Aim of this tool: To introduce a model for analysing conflict.
Key points:
As mentioned, at the heart of a conflict sensitive approach is “conflict analysis”. Anglo American’s SEAT Tool 4C (developed by International Alert) identifies three main components in conflict analysis:
Context and issues: this involves identifying the context and associated issues that may give rise to conflict risks;
Actors and dynamics: this involves identifying conflict actors and the relationships between them, including the company itself;
Causes, drivers and triggers: this involves exploring what lies beneath the surface of a conflict.
This process of analysis allows for the development of suitable interventions and conflict management responses. This model will form the basis for an exercise that we run at the end of this session.
Reference for material used: Anglo American, Socio-Economic Assessment (SEAT) Toolbox, Version 3, 2012, Tool 4C.

22. Framing conflict-sensitivity within the PDCA&E cycle
Integrate findings
Analysing the context, assessing impacts & risks, developing responses
Communicate & engage throughout
Track effectiveness, monitor and report
Ensure organisational readiness & take action
Aim of this slide: To frame a conflict-sensitive approach to business in terms of the Plan, Do, Check, Adjust and Engage (PDCA&E) cycle.
The steps in the PDCA&E cycle are as follows:
Step 1: Plan - Analysing the context, assessing impacts & risks, developing responses;
Step 2: Do - Ensure organisational readiness to implement the plan/your responses & then take action;
Step 3: Check - Track effectiveness of your actions, monitor them, and then report on your progress;
Step 4: Adjust – Integrate your findings (from Step 3) to ensure continuous improvement. The ‘adjust’ step is also sometimes labelled the ACT step, but we are using ADJUST as it more accurately describes the purpose of this step.
And then engage with you stakeholders (internally and externally) throughout all of the above steps. Please note that the cycle is typically referred to as the PDCA cycle, but to emphasize the importance of engagement, we refer to it as the PDCA&E cycle.
For the remainder of this training, we will be drawing predominantly on International Alert’s Project-level Conflict Risk and Impact Assessment Tool and Anglo American’s, Socio-Economic Assessment Toolbox (SEAT), Version 3, Tool 4C: Conflict Assessment and Management.
Note: by aligning the training content with the PDCA&E cycle, our intention is that users will more easily be able to integrate their learnings and suggested activities into existing management systems.

23. Planning Plan Do Check Adjust Engage
Understanding your context and impacts
Planning

24. Planning: Understanding your context and identifying issues
Features of the project-level profile
Aim of this slide: To provide some high level guidance on understanding your context in relation to conflict.
Key points:
Gaining an understanding of the socio-political and economic context and how the operation interacts with this context are the first two steps in becoming conflict sensitive. Understanding your context enables you to understand whether a company is at risk of conflict, or likely to exacerbate it. This distinction is critical for decisions on how to respond.
International Alert’s CSBP guidance offers some guidance on how to structure the gathering of this information:
In the PCRIA Tool, Box 2 (Page 10), they offer guidance on the key information that needs to be gathered (this falls within the categories of key facts, history, political/social profile, economic profile and description of past/existing conflict);
Similarly, in Anglo American’s SEAT guidance, Tool 2A – Profiling the Local Area, outlines some suggested questions to gather this information. Sensitivity must be applied in gathering information relating to conflict.
During the process of understanding the local area (which one has to do as part of general social performance management) , one needs to stay alert to contextual issues that could be a potential cause or trigger of conflict. Stakeholder complaints and grievances should also be reviewed to identify evidence of conflict.
The contextual and issue analysis may identify conflict risks associated with, for example: political and governance structures; economic issues and concerns; socio-political issues; demographics; security within the local area; and interactions with national and international stakeholders (this list is indicative and is not intended to be comprehensive).
Reference for material used: International Alert’s Project-level Conflict Risk and Impact Assessment Tool, (2005) and Anglo American’s, Socio-Economic Assessment Toolbox (SEAT), Version 3, Tool 4C (2012).

25. Planning: Identifying conflict actors (1 of 2)
Aim of this slide: To introduce the idea of mapping your conflict actors, as a key part of understanding conflict.
Key points:
Simply put, conflict actors are those stakeholders that are involved in some capacity (whether directly or indirectly) with the conflict taking place.
Even though you’d be mapping from the perspective of the company, an important distinction is that conflict actors are not stakeholders to the company, but stakeholders to the conflict under analysis.
In some cases, the company will be one of the conflict actors, while in other cases, there may be conflicts in the local area that do not involved the company.
The relationships of conflict actors will change over time, and this change will be part of the conflict dynamics.
A conflict map simplifies a conflict and presents:
The actors, their “power, or influence on the conflict;
Their relationship with each other; and
The conflict theme or issues.
Note: A conflict map represents a specific viewpoint of a specific conflict at a specific moment in time.
Reference for material used: Anglo American, Socio-Economic Assessment (SEAT) Toolbox, Version 3, 2012, Tool 4C.

26. Planning: Identifying conflict actors (2 of 2)
A conflict map simplifies a conflict and presents:
The actors, their “power, or influence on the conflict
Their relationship with each other
The conflict theme or issues.
Aim of this slide: To introduce the idea of mapping your conflict actors, as a key part of understanding conflict.
Key points:
Simply put, conflict actors are those stakeholders that are involved in some capacity (whether directly or indirectly) with the conflict taking place.
Even though you’d be mapping from the perspective of the company, an important distinction is that conflict actors are not stakeholders to the company, but stakeholders to the conflict under analysis.
In some cases, the company will be one of the conflict actors, while in other cases, there may be conflicts in the local area that do not involved the company.
The relationships of conflict actors will change over time, and this change will be part of the conflict dynamics.
A conflict map simplifies a conflict and presents:
The actors, their “power, or influence on the conflict;
Their relationship with each other; and
The conflict theme or issues.
Note: A conflict map represents a specific viewpoint of a specific conflict at a specific moment in time.
Reference for material used: Anglo American, Socio-Economic Assessment (SEAT) Toolbox, Version 3, 2012, Tool 4C.

27. Exercise: Experimenting with a conflict map
Select a conflict situation (or similar) that is currently playing out between your company and stakeholders – limit yourself to ten stakeholders, including company NOTE: Size of circle drawn = amount of power of the stakeholder.
Using the SEAT Tool 4C legend as a guide, illustrate the following between stakeholders:
Close relationships
Strong alliances
Weak, informal links
Discord or conflict
Broken connections/relationships
The predominant direction of the influence or activity
Note the conflict theme or issue that separates them or connects them.
Aim of this slide: To provide participants with a quick exercise in creating a conflict map.
Exercise:
Working in pairs, select a conflict situation (or similar) that is currently playing out between your company and various stakeholders. If there is no such situation that comes to mind, then select a conflict situation that applies locally, regardless of whether your company is involved/affected or not.
Using a flipchart page, draw the main stakeholders that are involved in the conflict situation. For the purposes of this exercise, limit yourself to ten stakeholders. The amount of power the stakeholder has in the conflict situation should be reflected by the size of the circle you draw for that stakeholder (i.e. greatest power = biggest circle).
Using the SEAT Tool 4C legend as a guide (see previous slide), illustrate the following between the ten stakeholders, where they apply:
Close relationships;
Strong alliances;
Weak, informal links;
Discord or conflict;
Broken connections/relationships;
The predominant direction of the influence or activity;
Note the conflict theme or issue that separates them or connects them.
Remember to include your company as one of the ten stakeholders, if applicable.
Allow for 15 minutes for this exercise.
Feedback:
Keep the feedback brief, asking participants to note any insights and/or value that they gained in this exercise.
Suggest developing an exercise that gives participants a quick feel for how to map their conflict actors, based on the SEAT 3 "conflict actors" figure - although simplified, and possibly using the legend in the slide image.

28. 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.

29. 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 32 and 33 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 34 and 35 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.

30. 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 34 and 35 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.

31. 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)

32. 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)

33. Engagement Plan Do Check Adjust
An on-going activity throughout the conflict assessment and conflict management process
Engagement

34. The benefits of engagement during conflict analysis
Engaging stakeholders does two key things:
Build transparent relationships
Build project support.
A deepened understanding, of the different ways people are affected, allows for better conflict sensitivity.
Aim of this slide: To highlight the importance of engagement in the conflict assessment process.
Note: No need to spend much time on this slide. Key points to make:
Engagement is key to meeting the relationship building objectives of the project-level conflict assessment process.
By engaging with stakeholders you will be able to gain a deeper understanding of the different ways in which people are affected by the proposed project.
This will allow for the development of greater conflict sensitive business practices.
Reference for material used: International Alert: Conflict-Sensitive Business Practice: Guidance for Extractive Industries (2005)

35. The role of engagement in conflict-sensitive business practice
“Early, consistent, meaningful and empowering stakeholder engagement processes lie at the core of a conflict-sensitive business approach.”
Aim of this slide: To introduce 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.
A word of caution: There are examples where early engagement has led to heightened expectations of benefits, which have then not materialised. Careful expectation management (e.g. not promising what you can’t deliver) is thus a very important part of the engagement process.
Reference for material used: International Alert’s Project-level Conflict Risk and Impact Assessment Tool, (2005)

36. Management responses Plan Do Check Adjust Engage
Developing and implementing conflict-sensitive approaches
Management responses

37. 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.

38. 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)

39. The key elements in a management plan
Issue/ Impact
Management Objective
Management Measure
Performance Target
Responsibility
Timing
Resources
KPIs
List the issue that needs manage- ment.
The objective/ goal that the operation wishes to achieve by managing each issue.
The action that needs to do/put in place in order to meet the objective and manage the issue.
The concrete targets that the operation wishes to achieve through the management measure/s.
The individual/s or department /s responsible for implementing the monitoring measure.
The deadline for imple- mentation of the management measure, and if appropriate, the frequency for imple- mentation of management measure.
The resources required (monetary, staff etc.) to carry out the management measure.
The data source to measure effective- ness of the manage- ment measure, and to check if manageme nt objective has been met.
Aim of this slide: To present the key elements of a management plan.
Key points:
Once you have developed your mitigation measures/strategies, these need to be captured in a formal management plan – using a template similar to the one shown above.
Remember, after you have developed your management measures, you need to check that they are actually effective – this is what monitoring is all about (see slide 36)
Note to presenter: Briefly take the participants through the different key elements of a management plan, using the text in the table to explain the objective of each column.
Reference for material used: Anglo American, Socio-Economic Assessment Toolbox (SEAT) 3, Tool 6A.

40. What to do in situations of high tension (1 of 2)
Show compassion and empathy
Even when the issue raised is not the responsibility of the company
Be candid about the operation’s room for manoeuvre on key issues
Identify areas where the operation can genuinely show flexibility
Be honest and transparent
Including about what you can’t talk about
Acknowledge any past errors
Stress actions taken versus defending those that were not taken
Stress the operation’s willingness to be accountable
Acknowledge and record issues or concerns
Demonstrate a willingness to respond to the issues raised
This includes ensuring that the appropriate personnel are available to respond.
Aim of this slide: To offer some guidance on how to manage situations of high tension – although it isn’t linked to conflict analysis, it does offer some helpful hints for personnel who find themselves in the hot seat.
Key points:
In situations of high tension and low trust, your stakeholder engagement should have three key aims:
• To build trust;
• To increase understanding; and
• To establish dialogue.
In situations of tension, key principles to remember:
Show compassion and empathy.
Be candid about the operation’s room for manoeuvre on key issues. Where possible, identify areas where the operation can genuinely show flexibility.
Be honest and transparent (including about what you can’t talk about).
Where applicable, acknowledge any past errors. Stress actions taken versus defending those that were not taken. Similarly, publicise those actions that will be taken and stress the operation’s willingness to be accountable.
Demonstrate a willingness to respond to the issues raised. This includes ensuring that the appropriate personnel (both technical personnel and management) participate and are available to provide responses.
(Notes: 1 of 2)

41. What to do in situations of high tension (2 of 2)
Do not provide excessively technical information in your responses
“I don’t care what you know, until I know that you care”
Be personable and reasonable
Tension is easier to resolve when the approach is personal. (e.g. “we’re sorry” instead of “The Company regrets”)
Keep your own emotions in check
Acknowledge and record issues or concerns. Working together to address the concern will help to build trust and show that you are taking stakeholder concerns seriously.
Do not provide excessively technical information in your responses and / or presentations (“I don’t care what you know; I want to know that you care”).
Be personable and reasonable. Tension is easier to resolve when the approach is personal (e.g. “we’re sorry” instead of “The Company regrets” is more likely to ease tension).
 Show respect.
 Keep your own emotions in check. Keep calm, do not say things in the heat of the moment, and do not take stakeholder aggression personally.
Finally, select appropriate forums for stakeholder engagement .
Reference for material used: Anglo American, Socio-Economic Assessment (SEAT) Toolbox, Version 3, 2012, Tool 4C.
(Notes: 2 of 2)

42. Monitoring and adjusting
Plan Do
Check
Adjust
Engage
Tracking performance and making changes
Monitoring and adjusting

43. 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.

44. 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.

45. 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.

46. 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)

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