A Guide to Designing and Implementing Grievance Mechanisms for ...

Foreword
Grievance mechanisms are increasingly important for development projects where ongoing
risks or adverse impacts are anticipated. They serve as a way to meet requirements, prevent and
address community concerns, reduce risk, and assist larger processes that create positive social
change. Today, many companies employ ad hoc or exclusively internal processes to address
grievances. Unfortunately, these systems often produce less than satisfactory outcomes from
the perspective of the company and/or the community. Recognizing this, and noting a lack of
effective alternatives, companies and communities are becoming more proactive in their efforts
to design and build more effective strategies for addressing community grievances.
Yet it is often challenging for companies to design and implement successful grievance
mechanisms that suit the project context. Recognizing the challenge, the Office of the
Compliance/Advisor Ombudsman (CAO) offers this guide to help groups develop project-level
grievance resolution mechanisms. This guide also emphasizes the importance of
communication and coordination among companies, communities, and other stakeholders
directly affected by large development projects. We have learned from many years of
experience that open dialogue and collaborative grievance resolution simply represents good
business practice—both in managing for social and environmental risk and in furthering
company and community development objectives.
This guide is offered as a companion to Performance Standards and accompanying Guidance
Notes published by the International Finance Corporation (IFC) and Multilateral Investment
Guarantee Agency (MIGA) of the World Bank Group. These standards set forth a role for
grievance mechanisms for projects financed or assisted by IFC and MIGA.
Against the backdrop of the IFC and MIGA Performance Standards, this guide consolidates
knowledge and lessons regarding grievance resolution from various sources, including on-theground
experiences of the CAO, findings from studies on grievance resolution in the workplace
and in environmental conflict resolution, and from practical experience in establishing peace
accords and procedures in postconflict disputes over land and property. Our methodology also
included an extensive review of existing information on grievance mechanisms from the field of
conflict resolution.
In addition, we obtained first-hand accounts through interviews with industry personnel,
academics, nongovernmental organizations (NGOs), international financial institutions,
consultants, and others with experience of grievance mechanisms. These interviews focused on
the challenges involved in designing and implementing grievance mechanisms and the practical
strategies and steps required for an effective system, regardless of its form.
As grievance resolution mechanisms are increasingly adopted, companies and communities
must learn how to design and implement these systems cooperatively and more effectively
for their potential to be realized. We hope this guide will equip people interested in initiating
a grievance resolution program with the practical steps and tools they need to be successful
in efforts to address community concerns and promote improved relationships, fair remedies,
and just procedures.
Meg Taylor
Vice President, Compliance Advisor/Ombudsman, CAO
June 2008
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