Governance Ecosystems CSR in the Latin American Mining Sector

1. Governance Ecosystems CSR in the Latin American Mining Sector Edited by Julia Sagebien SBA Dalhousie University and EGAE University of Puerto Rico Nicole Marie Lindsay School of Communication, Simon Fraser University

2. Governance Ecosystems CSR in the Latin American Mining Sector • Questions that inspired the research: • Why so much conflict? • Why is the literature so contradictory? • Why is the discourse so polarized? • Why is CSR necessary but not sufficient? • Process: • IDRC grant “Both Sides Now” • Royal Roads University Conference, October 2009 • Palgrave Macmillan book • Question that inspired the book: • How, under what conditions and enabled by which actors can CSR in the mining industry contribute to social and environmental value to communities and countries in a sustainable and broad-based manner?

3. Governance Ecosystems CSR in the Latin American Mining Sector • Premise 1:Poverty, social exclusion, and environmental degradation, while often clearly exacerbated by irresponsible business, exist within broader local and global political economic context in which irresponsibility and lack of accountability are built into the system. • Premise 2: CSR strategies conceptualized as a set of discretionary or voluntary actions originating within a company can provide firms with strategic response to some of the risks that systemic dynamics present, especially in the developing world. By addressing governance gaps, systemic risk is lowered, and firms increase their potential of obtaining a ‘social license to operate’. • Premise 3: CSR as currently conceptualized cannot be expected to bring about the long-term, transformative change needed to address multi-actor, system-wide issues

4. Two-tier stakeholder map Government Customers Communities Competitors Media THE FIRM Financiers Employees Suppliers Consumer Advocate Groups Special Interest Groups Primary Stakeholders Secondary Stakeholders

5. Governance Ecosystems CSR in the Latin American Mining Sector • Premise 4: New analytical models that can capture system-wide dynamics and put CSR into context within a broader governance system should be used as a complement to traditional stakeholder-management CSR planning tools.

6. Social and Environmental Value Governance Ecosystems Model Supranational Governance Home/Other Government Customers Host Government The Firm CSR • Corruption SEV Media Advocacy and Development NGOs Financial Institutions Reporting and Transparency Communities Industry Players

7. Governance Ecosystems CSR in the Latin American Mining Sector Social and Environmental Value Governance Ecosystems Model • 1) A collectively defined centralgoal – the creation, enhancement and protection of social and environmental value(SEV). • Not firm-centric • 2) The firm as just one of many role-bound actorsembedded in a complex political system of conflicting and/or synergistic interests; • Political actors not just firm stakeholders • 3) CSR programs and strategies as just one of the mechanismsavailable to the firm to ‘govern’ this system, with other mechanisms available to otheractors in the collective governanceof the system; and • 4) System-wide eco-system of dynamics (including actions and inactions) can either disable or enablemulti-actor, multi-mechanismgovernanceefforts • Corruption is systemic disabler

8. Social and Environmental Value Governance Ecosystems Model Supranational Governance Home/Other Government Customers Host Government The Firm CSR • Corruption SEV Media Advocacy and Development NGOs Financial Institutions Reporting and Transparency Communities Industry Players

9. Governance Ecosystems CSR in the Latin American Mining Sector • governance– ‘the act of governing’ - actors in the system are political actors involved in making decisions that affect the collective social and environmental value. Issues of power and legitimacy form part of this notion. • eco-system-a biological community of interacting organisms and their physical environment - each organism and the interactions between them in a system shapes the organisms involved in the interaction and the entire system itself. • governance ecosystem bears some similarity tonotion of ‘political economy’ and ‘political ecology’.

10. Governance Ecosystems CSR in the Latin American Mining Sector • Systemic Causes, Systemic Solutions • DevelopmentNorms and CSR in the Global Mining Sector, Hevina S. Dashwood • CSR and the Law: Learning from the Experience of Canadian Mining Companies in Latin America, KernaghanWebb • The Role of Governments in CSR, Jan Boon • RegulatoryFrameworks, Issues of Legitimacy, Responsibility, and Accountability: Reflections drawn from the PERCAN initiative BonnieCampbell, Etienne Roy-Grégoire, and MyriamLaforce • Conflict Diamonds: The Kimberley Process and the South American Challenge, Ian Smillie • WhoseDevelopment? Mining, Local Resistance, and Development Agendas, Catherine Coumans • MiningIndustry Associations and CSR Discourse: Mapping the Terrain of Sustainable Development Strategies, Nicole Marie Lindsay • Drivers of Conflict around Large-scale Mining Activity in Latin America: The Case of the Carajás Iron Ore Complex in the Brazilian Amazon154 Ana Carolina Alvaresda Silva, Silvana Costa, and Marcello M. Veiga • Community and Government Effects on Mining CSR in Bolivia: The Case of Apex and EmpresaHuanuni, Robert Cameron • Corporate Social Responsibility in the Extractive Industries: The Role of Finance, Allen Goss • Responsible Investment Case Studies: Newmont and Goldcorp, Irene Sosa • Anti-corruption: A Realistic Strategy in Latin American Mining?, Carol Odell • Sustainable Juruti Model: Pluralist Governance, Mining, and Local Development in the Amazon Region, Fabio Abdala • Energy and CSR in Trinidad and Tobago in the Second Decade of the Twenty-first Century, Timothy M. Shaw • Mining Companies and Governance in Africa, Ralph Hamann, Paul Kapelus, and Ed O’Keefe

11. Governance Ecosystems CSR in the Latin American Mining Sector • Not only part of CSR management ‘tool kit,’ but attempt to capture the ‘prisoner’s dilemma’ dynamics that mining and other resource industry multi-actor governance systems are facing • Collective institutional learning is rapidly taking place in search of better collective outcomes • Systemic orientation needed to reorient corporate behavior towards facilitating sustainable broad-based solutions to deep systemic problems • Systemic orientation can strategically leverage the capacities of a variety of actors in order to move synergistically in a positive SEV direction

12. Governance Ecosystems CSR in the Latin American Mining Sector Thank You