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Hydro is a Fortune 500 energy and aluminium supplier operating in ...

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Social Knowledge<br />

Social knowledge <strong>is</strong> a prerequ<strong>is</strong>ite for good CSR management <strong>and</strong> for sound bus<strong>in</strong>ess<br />

development. Social knowledge means <strong>in</strong>sight, knowledge <strong>and</strong> underst<strong>and</strong><strong>in</strong>g of the<br />

societies <strong>and</strong> communities <strong>in</strong> which we operate. It <strong>in</strong>cludes h<strong>is</strong>tory, religion, politics,<br />

the social situation, culture, economy <strong>and</strong> the local bus<strong>in</strong>ess context we are a part of.<br />

Without social knowledge, we cannot properly evaluate r<strong>is</strong>ks or make qualified dec<strong>is</strong>ions.<br />

Suggested approach<br />

Knowledge <strong>and</strong> underst<strong>and</strong><strong>in</strong>g may be acquired<br />

from with<strong>in</strong> the organization, for example from<br />

expatriates, local employees, or others with<br />

relevant experience. Useful external sources<br />

1. General country <strong>in</strong>formation:<br />

Several agencies provide updated country <strong>and</strong><br />

culture <strong>in</strong>formation on the Internet, for example<br />

consultancy agencies, lead<strong>in</strong>g NGOs, etc.<br />

(See l<strong>is</strong>t under Resources).<br />

2. Basel<strong>in</strong>e Studies:<br />

A social basel<strong>in</strong>e study (prelim<strong>in</strong>ary CSR<br />

assessment) <strong>is</strong> recommended for basic<br />

knowledge of social <strong>is</strong>sues <strong>in</strong> specific regions<br />

or local communities. Th<strong>is</strong> will form the bas<strong>is</strong> for<br />

a good social impact assessment <strong>and</strong> further<br />

project plann<strong>in</strong>g. These studies are normally<br />

provided by <strong>in</strong>dependent expert<strong>is</strong>e, for example<br />

a local consultant with good st<strong>and</strong><strong>in</strong>g <strong>and</strong><br />

<strong>in</strong>tegrity or an <strong>in</strong>ternational consultant with<br />

good contacts <strong>in</strong> several countries.<br />

3. Internal knowledge <strong>and</strong> underst<strong>and</strong><strong>in</strong>g:<br />

Tra<strong>in</strong><strong>in</strong>g <strong>in</strong> cross-cultural underst<strong>and</strong><strong>in</strong>g with<strong>in</strong><br />

our own organization <strong>is</strong> necessary to enable<br />

us to utilize properly the <strong>in</strong>formation provided<br />

by external expert<strong>is</strong>e. Tra<strong>in</strong><strong>in</strong>g must also be<br />

given <strong>in</strong> local languages.<br />

<strong>in</strong>clude stakeholders <strong>in</strong> general, as well as<br />

consultants, authorities or non-governmental<br />

organizations (NGOs). In many cases, a<br />

separate study should be carried out.<br />

■ Do not underestimate the<br />

importance of social knowledge:<br />

Social <strong>is</strong>sues may <strong>in</strong>crease<br />

r<strong>is</strong>ks <strong>and</strong> underm<strong>in</strong>e bus<strong>in</strong>ess<br />

opportunities.<br />

■ Obta<strong>in</strong> social knowledge<br />

at an early stage: It <strong>is</strong> critical<br />

to map the social situation<br />

before project plann<strong>in</strong>g or<br />

enter<strong>in</strong>g a country.<br />

■ Do not limit access to social<br />

<strong>in</strong>formation: Social knowledge<br />

shall be made available to all<br />

relevant staff.<br />

■ Be aware of sensitive <strong>is</strong>sues:<br />

Relations to <strong>in</strong>digenous peoples,<br />

human rights abuses, widespread<br />

corruption, the significance of a<br />

corner stone company, etc.<br />

33

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