[PDF] Community Development Toolkit - CommDev

A set of 20 revised andupdated tools intendedfor use throughout themining project cycleCOMMUNITY DEVELOPMENTTOOLKIT

Community development is theprocess of increasing the strengthand effectiveness of communities,improving people’s quality of lifeand enabling people to participatein decision making to achieve greaterlong-term control over their lives.Sustainable community developmentprograms are those that contributeto the community’s long-termdevelopment needs and prioritiesand ensure a fairer distribution ofthe costs, benefits, risks andresponsibilities associated withmining activities. The essentialelement of sustainability incommunity development is thatactions must be community plannedand driven, not imposed by donorsor companies. Mining and mineralprocessingactivities can play acentral role in sustainable communitydevelopment by acting as a catalystfor positive economic and socialchange in areas that may otherwisehave limited opportunities foreconomic and social development.They can also influence the equitabledistribution of mine-related benefitsby ensuring that opportunities arecreated for women and vulnerableand/or marginalized groups suchas Indigenous Peoples, ethnicminorities and the economicallydisplaced.INTRODUCTIONPreface 05Background to the project 07Target audience 08Structure of the toolkit 09Acronyms 12MINING AND COMMUNITY DEVELOPMENTGoals and processes, and opportunities to link 15community development to the mining and metalsproject cycleCOMMUNITY DEVELOPMENT TOOLSThe tools provide practical guidance for all stages of 35the community development processRELATIONSHIPS TOOLSThe central set of activities that underpins and binds 43together all other community development activitiesPLANNING TOOLSPlanning tools are used for planning the resources, 83both human and financial, that will be needed toundertake community development activities or toexpand or adopt new programsASSESSMENT TOOLSThese tools help people to understand the potential 125risks and impacts of the mine on surroundingcommunities and other stakeholdersMANAGEMENT TOOLSMethods and approaches for mitigating potential 153mine impacts and enhancing benefits to maximizecommunity developmentMONITORING AND EVALUATION TOOLSHow to monitor and evaluate community development 187activities and measure progress towards program goalsGLOSSARY AND REFERENCESDefinitions of community development terms and 203concepts used in this toolkit and key sources offurther informationAcknowledgements 220

PrefaceBackground to the projectTarget audienceStructure of the toolkitAcronymsINTRODUCTION

THE TOOLKIT PROVIDESPRACTICAL GUIDANCE FOR ALLSTAGES OF THE COMMUNITYDEVELOPMENT PROCESS –FROM EXPLORATION THROUGHCONSTRUCTION, OPERATIONS,AND EVENTUALLYDECOMMISSIONING ANDCLOSURE, INCLUDING THEPOST-CLOSURE ENVIRONMENT.Maasi women dancing and singing in traditional dress, Kenya.

IntroductioncontinuedINTRODUCTIONThe revised toolkit draws upon work onsustainable community development thathas emerged since the 2005 version waspublished. This includes IFC guidance andreports such asStakeholder Engagement: A Good PracticeHandbook for Companies Doing Businessin Emerging Markets (2007),A Guide to Designing and ImplementingGrievance Mechanisms for DevelopmentProjects (2008),Projects and People: A Handbook forAddressing Project-Induced In-Migration(2009),Strategic Community Investment: A GoodPractice Handbook for Companies DoingBusiness in Emerging Markets (2010)and ICMM’s good practice guides such asPlanning for Integrated Mine Closure:Toolkit (2008),Human Rights in the Mining and MetalsIndustry: Overview, Management Approachand Issues (2009),Human Rights in the Mining and MetalsIndustry: Handling and Resolving LocalLevel Concerns and Grievances (2009),Mining Partnerships for Development:Using Resource Endowments to FosterSustainable Development. MappingIn-Country Partnerships (2010),Good Practice Guide: Indigenous Peoplesand Mining (2010) andHuman Rights in the Mining and MetalsIndustry: Integrating Human RightsDue Diligence into Corporate RiskManagement (2012).The result is this revised and upgradedCommunity Development Toolkit, whichpresents a set of 20 tools intended foruse throughout the mining project cycleand that cover a range of communitydevelopment approaches under theheadings of relationships, planning,assessment, management, and monitoringand evaluation.The Toolkit complements other workundertaken by ICMM (see column to the left),including ICMM’s Mining Partnerships forDevelopment Toolkit 1 which can be used bymine managers and those interested inpromoting economic and socialdevelopment.1 Available at: www.icmm.com/mpdtoolkit06 Community Development Toolkit

IntroductioncontinuedBackground to the projectICMM affirmed its commitment to workcollaboratively with other stakeholdersin the Toronto Declaration of May 2002.The ICMM Sustainable DevelopmentFramework 2 followed shortly thereafter(2003). From ICMM’s perspective, thisproject provides an opportunity to developtools to assist members, and others,implement ICMM’s 10 Principles (see Box 1)and supporting position statements, againstwhich corporate members have committedto measure and report their performance.In particular, the project is relevant to theninth principle where ICMM members havecommitted to “contribute to the social,economic and institutional development ofthe communities in which we operate”.INTRODUCTIONBox 1: ICMM 10 Principles01. Implement and maintain ethical business practices and sound systems of corporategovernance.02. Integrate sustainable development considerations within the corporatedecision-making process.03. Uphold fundamental human rights and respect cultures, customs and values indealings with employees and others who are affected by our activities.04. Implement risk management strategies based on valid data and sound science.05. Seek continual improvement of our health and safety performance.06. Seek continual improvement of our environmental performance.07. Contribute to conservation of biodiversity and integrated approaches to land useplanning.08. Facilitate and encourage responsible product design, use, re-use, recycling anddisposal of our products.09. Contribute to the social, economic and institutional development of the communitiesin which we operate.10. Implement effective and transparent engagement, communication andindependently verified reporting arrangements with our stakeholders.2 See www.icmm.com/our-work/sustainable-development-frameworkCommunity Development Toolkit07

IntroductioncontinuedINTRODUCTIONTarget audienceThe toolkit provides practical guidance forall stages of the community developmentprocess – from exploration throughconstruction, operations, and eventuallydecommissioning and closure, includingthe post-closure environment.Because it is the mining and metalscompany (rather than the government orthe community) that applies for explorationand/or mining licences, selects explorationtargets, commissions feasibility studies,contracts construction activities, managesthe mine during its operational life, andprepares and implements the mine closureplan, it became evident during preparationof the toolkit that much of it should beaimed at enabling mining and metalcompanies to undertake these varioussteps in a manner that would gather andtake account of community views andwould contribute to sustainable communitydevelopment. When reviewing the usage ofthe 2005 version of the CDT, mining andmetals company staff were highlighted asprimary users. Thus, the updated versionis aimed primarily at companies from themining and extractives industry. That said,there are tools that could be used bycommunities where the mining and metalscompany could play a facilitator role.Governments may also decide to modifytheir licensing regulations to provide aframework that would set rules and allocateresponsibilities for undertaking some of theactions included in the toolkit.In addition to being a valuable resource forcompanies, communities and governmentagencies, the toolkit could also be a resourceand guide for civil society groups such asnon-governmental organizations (NGOs)and community-based organization (CBOs),academics, training and education providers,trade unions, business associations andmining services companies – in fact, anyonewho is interested in facilitating communitydevelopment. Ideally, most of the tools willbe used by several groups working together.08 Community Development Toolkit

IntroductioncontinuedStructure of the toolkitThe toolkit is divided into four sections (seeTable 1):• an introduction, describing thebackground to the project; how it builds onprevious work by the World Bank Groupand the mining, minerals and metalsindustry; the target audience; and thestructure of the toolkit• a brief discussion of mining andcommunity development, includingcommunity development goals andprocesses, and opportunities to linkcommunity development to the miningand metals project cycle. This sectionincludes good practice principles forsustainable community development,advice on the scheduling of developmentactivities in the mining and metals cycle,and on the roles of government,companies and communities•a community development tools sectionthat introduces the essential buildingblocks of community development anddescribes the 20 tools and how to use them(see Table 2). Each community developmenttool is supported by detailed, step-by-stepinstructions on how and when to apply thetool. The tools are designed to be easilyextracted for use in the field•a glossary and references section,including a glossary to some importantcommunity development terms andconcepts, and a list of referenced sources.INTRODUCTIONTable 1: Community Development Toolkit at a glanceSectionIntroductionMining and community developmentCommunity development tools• relationships tools• planning tools• assessment tools• management tools• monitoring and evaluation toolsGlossary and referencesKey pointsBackground, objectives and target audience forthe toolkit.Definition of community development, keyprinciples for sustainable community development,phases of the mining and metals project cycleand stakeholder roles and responsibilities.Twenty practical tools for communitydevelopment supported by step-by-step guidanceto assist in using them.Glossary and a list of referenced sources.Community Development Toolkit09

➜Table 2: Community development tools in the mining project cycleCategory ofcommunitydevelopmenttoolTool number and nameInitial useFullimplementationRelationships 1. Stakeholder Identification Exploration Feasibility2. Stakeholder AnalysisExplorationFeasibility3. Consultation MatrixFeasibilityConstruction4. Partnership AssessmentFeasibilityConstruction5. Grievance MechanismExplorationFeasibilityPlanning6. Strategic PlanningFrameworkConstructionOperations7. Community MappingConstructionOperations8. Institutional AnalysisConstructionConstruction9. Development OpportunityRankingConstructionConstruction10. Financial Valuation ToolFeasibilityVariableUpdatingRegular, ongoing – annual full updateRegular, ongoing – annual full updateRegular, ongoing – annual full updateRegular, ongoing – annual full updateRegular, ongoing – annual full updateAnnual reviewAs neededAs neededAs neededAs neededLinks with other tools2 3 4 5 11 12 13 161 3 4 5 11 12 13 161 2 4 5 11 12 13 161 2 31 2 39 16 178 97 97 86 19 2010 Community Development Toolkit

IntroductioncontinuedINTRODUCTIONAcronymsABCDASMBPDCAOCAPCBOCDCDTCICRCROCSRE3ESGESIAsESMAPESRGASGRIHRIAHSECICMMIFCIGTISOM&ENGONPVPDACPRARAPSIASEMSSIOASMARTSMESWOTasset based community development approachartisanal and small-scale miningBusiness Partners for DevelopmentCompliance Advisor/Ombudsmancommunity action plancommunity-based organisationcommunity developmentCommunity Development Toolkitcommunity investmentcommunity relationscommunity relations officercorporate social responsibilityEnvironmental Excellence in Explorationenvironment, social and governanceenvironmental and social impacts assessmentsEnergy Sector Management Assistance Programenvironment and social responsibilityGoal Attainment ScalingGlobal Reporting Initiativehuman rights impact assessmenthealth, safety, environment and communityInternational Council on Mining and MetalsInternational Finance CorporationImplementation Guidance Tools (for the Voluntary Principles on Security andHuman Rights)International Organization for Standardizationmonitoring and evaluationnon-government organizationNet Present ValueProspectors and Developers Association of CanadaParticipatory Rural Analysis (or Participatory Rapid Analysis)resettlement action plansocial impact assessmentSocial and Environmental Management Systemsocial impact and opportunities assessmentSimple, Measurable, Accessible, Relevant and Timelysmall and medium scale enterprisestrengths, weaknesses, opportunities and threats12 Community Development Toolkit

MINING AND COMMUNITYDEVELOPMENTGoals and processes, andopportunities to linkcommunity developmentto the mining and metalsproject cycle

COMMUNITY DEVELOPMENTIS THE PROCESS OFINCREASING THE STRENGTHAND EFFECTIVENESS OFCOMMUNITIES, IMPROVINGPEOPLE’S QUALITY OF LIFEAND ENABLING PEOPLE TOPARTICIPATE IN DECISIONMAKING TO ACHIEVE GREATERLONG-TERM CONTROL OVERTHEIR LIVES.Image courtesy of Anglo American

Mining and community developmentThe relationship betweenmining and sustainablecommunity developmentManaging risks is an essential factor ofsuccess for mining and metals companies.Many risks are financial or technical innature but, increasingly, “softer” elementsof projects (e.g. social and environmentalaspects) are becoming greater risks tomanage. Societal expectations of corporatesocial responsibility (CSR) are encouragingcompanies to go beyond mitigating theirimpacts and to actively contribute tosustainable community development in hostcountries and neighbourhoods, in order tomaintain their “social licence to operate”. 3Community development is the process ofincreasing the strength and effectivenessof communities, improving people’s qualityof life and enabling people to participatein decision making to achieve greaterlong-term control over their lives.Sustainable community developmentprograms are those that contribute tothe long-term strengthening of communityviability. Often, the most sustainablebeneficial legacies that communitydevelopment programs around a miningand metals operation may leave are inthe skills and capacities that training,employment and education programs forlocal people provide.The essential element of a sustainablecommunity development program is that itcan survive without input from a mining andmetals company, especially after the miningproject is finished. Thus, communitysustainability can be supported by miningpractices that help convert one local asset,namely non-renewable natural resourcecapital, into other local assets, namelysustainable social, economic andenvironmental capital.The role of the mining and metalsindustryThe mining and metals industry can play acentral role in community development byacting as an influence for positive changein areas that may otherwise have little,if any, opportunity for economic and socialdevelopment. This is especially true insituations where mining can be a catalystto help build up other (non-mining)sustainable income sources in the areaswhere the mines are located so thatcommunities are able to developindependently of the mine and are thus ableto survive the exhaustion of the ore reservesand the closure of the mining and metalsoperation. An important means of achievingthis is to foster dynamic linkages betweencommunities and external partners.MINING AND COMMUNITY DEVELOPMENT3 See International Organization for Standardization (ISO), ISO 26000 Social Responsibility Standard, Geneva, 2010for recent discussions of the social responsibility obligations of companies.Community Development Toolkit15

Mining and community developmentcontinuedMINING AND COMMUNITY DEVELOPMENTDuring the mine life, there can be tensionsinvolving the distribution of mining revenuesin a country, between local and nationallevels. This arises from the fact that mineralwealth is usually vested in nationalgovernments rather than owned by peopleliving in the mining area, and nationalgovernments may have priorities fordevelopment that differ from those ofthe communities neighbouring the mine. 4For companies who see sustainablecommunity development as a positive factorfor their mining activities, however, thereis a pressing need to expand the positivebenefits and mitigate the harmfuloperational impacts in the local area,regardless of whether the centralgovernment chooses to return a proportionof royalty payments and other miningrevenues to the local community. At theminimum, companies must ensure thatharmful project impacts are alleviated, forexample by providing job opportunities, ortraining leading to job opportunities, forany residents whose livelihoods are reducedby the mine’s land take. Going further,companies should act as the anchor orcatalyst for broader projects that providealternative livelihood benefits for a widerange of people, and not only for minerelatedbusinesses. This could be, forexample, by guaranteeing enterprisedevelopment loans at a reduced interestrate, or by signing contracts to purchasegoods during the vulnerable start-up yearsof local businesses.This is harder to achieve, and thereforeneeds to be firmly embedded in partnershipswith other important development actors,such as governments and donor agencies.Encouraging central governments to investmining revenues in the regions most affectedby mining is important, but it is equallyessential to work with local and regionalgovernments on local development programs.Most governments have their own national,regional and local development plans.Emphasizing the need to build multistakeholderpartnerships, ICMM’s MiningPartnerships for Development Toolkit 5responds to a clear need for a moresystematic and objective way to quantify andagree ways to enhance mining’s economicand social contribution.Community development is goodfor businessImproved social performance generallyleads to better financial returns. While thebusiness case for community developmentwill always be specific to the individualcompany or operation, some commonthemes are clear. If communities benefitgreatly from a mining operation, then theyhave a significant stake in seeing the mineoperate successfully and will help toovercome obstacles that could adverselyaffect the mining operation, and in turnreducing risk for the company. By contributingto local community well-being anddevelopment, benefits to companiesmay include:Reputation: Enhanced reputation in thefinancial community, in government andamong other stakeholders.Resources: Improved access to resources,such as ore bodies, in environments thatare increasingly challenging or remote.4 For further discussion on this topic, see ICMM, Minerals Taxation Regimes; A Review of Issues and Challengesin Their Design and Application, February 2009.5 Available at: www.icmm.com/mpdtoolkit16 Community Development Toolkit

Mining and community developmentcontinuedEase approvals processes and help resolvedisputes: Better relations with localgovernments, NGOs and communities thatcan help ease approvals processes forproject development, expansion and closureand help resolve disputes and avoidsituations in which local groups might hinderor even prevent mining from taking place.Reduced closure costs and liabilities:Resulting from better management of socialrisk, better management of communityexpectations and reduced communitydependency on the operations.Efficiency and productivity of local supportservices: Greater efficiency and productivityowing to the availability of improved localsupport services.Local workforce: Improved education andskill levels of the local workforce enablingcompanies to reduce their dependence onexpensive expatriates and increase localknowledge in operations – knowledge thatcan save time, effort, frustration and money.Employees: Improved employee recruitment,retention and engagement.In other words, community developmentis a reciprocal process. By supportingcommunities to develop themselves in asustainable manner, a mining and metalscompany is simultaneously helping its ownbusiness to succeed. Mining operations andtheir community development programsshould be viewed as a mutually beneficialpartnership process to achieve sustainability.Good practice principles forsustainable community developmentThe most effective and sustainablecommunity development activities reflectsome basic principles:Adopt a strategic approach: Developmentactivities at the operational level are linkedto long-term strategic objectives for thecompany and are also aligned with existingand future community and/or regionaldevelopment plans. Recent IFC guidance oncommunity investments advises companiesto move beyond well-meaning actions tostrategic community development programs,and suggests parameters for filteringprograms. 6Ensure consultation and participation:Local communities are actively involved inall stages of project conception, design andimplementation, including closure andpost-closure. Include a diversity ofcommunity members, ensuring that womenand vulnerable and/or marginalized groupsare included. Ensuring that communities areenabled to participate fully in the decisionsmade about the allocation of benefits thatflow from projects will offer the best chancefor community development programsustainability. This will be achieved byconcerted stakeholder engagementactivities that demystify the mining andmetals process, empowering communitymembers to understand the motivations aswell as project plans of the companies sothat they can make informed choices.MINING AND COMMUNITY DEVELOPMENT6 IFC, Strategic Community Investment: A Good Practice Handbook for Companies Doing Business in EmergingMarkets, Washington DC, June 2010.Community Development Toolkit17

Mining and community developmentcontinuedMINING AND COMMUNITY DEVELOPMENTWork in partnership: Private, governmental,NGO and community organizations bringingdifferent skills and resources – but sharedinterests and objectives – can achieve morethrough working together than individually.Formal or informal partnerships can alsoreduce costs, avoid duplication of existinginitiatives and reduce communitydependency on the mining and metalsoperation.Strengthen capacity: Programs thatemphasize strengthening of localcommunity, NGO and government capacityare more sustainable in the long termthan the supply of cash, materials orinfrastructure. While infrastructure is oftenessential for the development of remotecommunities, it will only be sustained if thereis an adequate maintenance programsupported by a well-designed, participatoryprocess including local communities andgovernments.Measuring and communicating: In order tomanage community development programswell and to ensure that they work towardssustainable goals, it is important to monitorthe programs and to periodically evaluatethem against selected sustainabilityindicators. Regular measurement, ormonitoring and evaluation, enables theadjustment of programs to enhance success.Including community members in thisprocess, by using participatory monitoringprocesses, is ideal and also facilitates thecommunication of program progressto the wider community. Additionalcommunication of community developmentprogram progress and challenges, throughinternal and external reporting of results,encourages a broader support base forprograms.Mining and metals Operations supportcommunity developmentThis is the focus of the toolkit. While thetools have broad applicability, there is nosimple or single blueprint for how theywill be used at any particular site.Mining and metals operations’ support forcommunity development is alwaysdetermined by local conditions – by thenature and scale of the operation, localgovernment resources and local people’sspecific needs and priorities.Conventionally, mining companies havewanted to take immediate measures toalleviate poverty or address needs theyobserved in the neighbourhood of theirmining or metals projects. Typically, thishas been by building infrastructure suchas schools, clinics or hospitals, and bysponsoring external health and educationservice providers to create new programs.Often, these efforts, although appreciatedas generous gifts to local communities,have not lasted beyond the life of the mine,sometimes not even beyond the tenure ofthe particular company staff that instigatedthe projects. The reasons for this arebecause often the projects:• were chosen by the mining companypeople and/or the local elites• were built or run by outsiders, with littlemanagement involvement from localcommunity members and limited capacitybuilding to allow a handover ofresponsibility over time• required technology, resources orknowledge not locally available tomaintain them.18 Community Development Toolkit

Mining and community developmentcontinuedThe sum of these factors is that, with thebest of intentions, the projects were “donated”to local communities and they therefore didnot feel any particular ownership of themnor did they have the needed capabilities tosustain them, resulting in a progressive, andoften speedy, decline once external supportwas withdrawn.Further, if local communities andgovernment agencies become accustomedto mining companies taking charge of theprovision of essential infrastructure andservices, an unhealthy dependencyrelationship can evolve, working againstsustainability.Mining and metals companies should take astrategic perspective and focus upon theirown areas of expertise to determine wherethose intersect with community needs.In that way, there is a reduced chance ofcompanies filling roles that should be theresponsibility of others. For example, schoolsand clinics are the areas of expertise ofeducational and health experts and theresponsibility of governments, not corebusiness skills for mining companies.Certainly, companies have building expertise,but the buildings are only the skeleton ofthe health and education systems, and notmuch use without teachers, nurses, coursematerials and medicines. Even where miningcompanies are willing and able to put inplace such health and education services,there remains the inherent risk, ifimplemented solely by a company, that whenthe mining company ceases its activities anddeparts, these services will collapse.By contrast, mining and metals operationsdo have skills to share with communitiesin a range of trades, administration,management, finance, operating andmaintaining mobile and fixed machinery,improving local supplier and contractorcapability, and so on. Partnership programsfor local apprentices in these areas ofcapacity building will be more beneficial inthe long term than the traditional list ofinfrastructure projects.The challenge, however, is to not onlybuild the skills but also facilitate the growthof other activities in parallel to mining.For example, the Lac La Ronge Indian Bandinitially developed trucking and cateringskills, with support from the local uraniummines in northern Canada, as part of aprogram of localizing the miner’sprocurement needs. Over time, theyexpanded their business away from themines and increasing annual turnover toCan$65 million by supplying servicesin the surrounding region. In addition tohelping train local community members toprovide goods and services, companies canalso consider supporting microcredit andother entrepreneurial schemes to helpencourage small business.MINING AND COMMUNITY DEVELOPMENTCommunity Development Toolkit19

Mining and community developmentcontinuedMINING AND COMMUNITY DEVELOPMENTLocal agriculture development is also a keyarea of community sustainability. One of thesustainability risks faced by communities isthat local agricultural production can declineduring the mining boom. The loss of localagriculture capabilities can be a cause ofsevere problems at the time of mine closurewhen a community no longer has the incometo purchase most of its food from outside.Actively supporting and fostering localagriculture can prevent this risk andimprove sustainable livelihoods for farmingcommunities in a mining project area. Forexample, in Ghana, Newmont establishedthe Ahafo Agribusiness Growth Initiative(AAGI) in partnership with an NGO, AfricanConnections. The AAGI program aimed toincrease farmers’ productivity throughimproved training for agriculturaltechniques, crop varieties, marketing,networking and access to finance. In thefirst few years of AAGI, almost 200 farmergroups were formed in eight communitieswith a total participation of 2,647 farmerswith the project attracting donor funding andmicrocredit participation from local banks. 7Human rights and communitydevelopmentSince the publication of the original CDTin 2005, several developments have takenplace in the human rights arena aroundCSR in general and the extractives sectorin particular.Of particular relevance is the work of theSpecial Representative of the UN Secretary-General, Professor John Ruggie, on theissue of human rights and transnationalcorporations and other business enterprises.The UN’s “Protect, Respect and Remedy”framework, approved in 2008, has beenbroadly accepted and outlines the distinctive,albeit complementary, roles of states andcompanies in relation to human rights.Governments have the responsibility to“protect” human rights, which is analogousto their primary role in development.Companies must “respect” human rights,which means not infringing on enjoyment ofrights by others and not impeding the socialand economic development of communities.“Remedy” refers to the need for access byvictims to effective remedy, both judicialand non-judicial.Recognizing that projects and operations canhave potential human rights impacts, Ruggiespecifically recommends that companiescarry out human rights due diligence byassessing their actual and potential humanrights impacts. Companies should alsoembrace their responsibility to contributeto the development of communities andrecognize that projects can only besuccessful if they enjoy broad support oflocal communities. The role of governmentsand companies in the human rights spaceis different; however, it is clear that at aminimum companies can play an importantcatalytic role in the human rights field. 87 www.icmm.com/page/2222/newmonts-agribusiness-initiative-supports-local-communities8 See ICMM’s three Guidance documents on Human Rights in the Metals and Mining Industry. Available at:www.icmm.com/page/14809/human-rights-in-the-mining-and-metals-industry-overview-managementapproach-and-issues20 Community Development Toolkit

Mining and community developmentcontinuedCommunity development and conflictCompanies can also play a catalytic rolewhen operating in conflict or post-conflictstates where investment from companiesmay be one of the few means of socioeconomicdevelopment. Robust riskmanagement and strategic communityinvestment in such contexts is critical.Risk management approaches shouldinclude (i) adhering to internationalstandards such as the Voluntary Principleson Security and Human Rights and applyingthe supporting Implementation GuidanceTools (IGT) 9 , (ii) considering the potential forinvestment to negatively affect the securityof local communities or exacerbate conflictsand (iii) drawing on existing guidance inthis area. 10Context is critical in conflict situations, soall community development activities needto be informed by the local environmentand adapted as the situation changes. TheIGT provides good advice for companies onhow to undertake stakeholder engagementin conflict-sensitive environments.Gender and inclusionUnderlying the use of the toolkit is animportant gender dimension. Typically,mining development has a gender biaswhereby most of the benefits (employment,income, royalties and infrastructureprojects) tend to accrue to men and thenegative impacts (cultural disruption, socialstress, environmental harm and domesticviolence) affect women and childrendisproportionately.Corrective actions are available that canredress this situation and improve theeconomic and social empowerment ofwomen and improve the well-being, safetyand security of both women and children.Increasing the proportion of women inemployment, for example, helps ensure abroader spread of community benefits.Greater attention to the gender aspects ofmining operations can help companies gainand maintain their social licence to operate,improve the quality of life and socioeconomicconditions of impacted andaffected women and men, uphold humanrights and minimize the negative impacts ofmining operations. Gender considerationsshould be integrated into social baselinesand impact assessments, stakeholderengagement and community developmentprogram planning, and in the monitoringand reporting on all of these activities.This should be done from the start, but if ithas not been, then specific studies andplanning processes can be undertaken toredress the balance. 11 Each stakeholdergroup (government, companies, communitiesand civil society groups) should examinetheir own activities to see how well gendersare represented and how much their viewsand concerns are taken into account indevelopment projects.MINING AND COMMUNITY DEVELOPMENT9 http://voluntaryprinciples.org/files/VPs_IGT_Final_13-09-11.pdf10 See International Alert, Conflict-Sensitive Business Practice: Guidance for Extractive Industries, London,March 2005, for more on this topic.11 For further guidance, see Rio Tinto, Why Gender Matters, Australia, 2009, especially Part 2: Guidance on“how to” integrate gender considerations into Communities work at Rio Tinto.Community Development Toolkit21

Mining and community developmentcontinuedMINING AND COMMUNITY DEVELOPMENTIndigenous PeoplesSome mining and metals projects occur inplaces where there are populations ofIndigenous Peoples. Due to their distinctway of life, and frequently their vulnerableposition within society, there is an increasedneed for companies to acknowledge andrespect the social, economic, environmentaland cultural interests of Indigenous Peoples.All development programs should be basedon engaging and consulting with IndigenousPeoples in a fair, timely and culturallyappropriate way throughout the projectcycle. See ICMM’s Position Statement onMining and Indigenous Peoples and aGood Practice Guide: Indigenous Peoplesand Mining 12 for detailed guidance on:• engagement and indigenous participation• laying the groundwork• agreements• managing impacts and sharing benefits• dealing with grievances.Artisanal and small-scale mining (ASM)In certain places, artisanal and small-scaleminers may be displaced by the developmentof a large mine with modern technology.This can create great hardship for thosewhose livelihood was dependent upon thelocal mining activity, even if it was not legallysanctioned, which can often be the case.The hardship can lead to resentment andpoor community relations for the mine andit is good practice for mines displacing ASMactivity to work with the local miners to assistthem in finding alternative livelihoods. 13ASM activity can also develop around anexploration or mining project throughopportunistic speculation. In both cases,relationships between a company and theASM miners are critical and investmentsin developing and maintaining theserelationships can minimize and potentiallymitigate future social challenges.Acid test for sustainable communitydevelopmentWhen reviewing programs for communitydevelopment, mining companies should askthemselves how those programs will farewhen the mine has closed (rememberingthat this may happen sooner than planned).If ongoing company support, leadership andmaintenance will be required to keep aprogram going in good order, then it is notsustainable and will need to be reconsidered.This is where the real contrast betweenhighly visible, tangible projects like roadbuilding, and low-key, hard-to-demonstrateprograms like women’s literacy programsis sharpest.A road will obviously be useful, with people,bicycles and buses using it every day whilethe mine is there to maintain it. Picture thesame road some years after the miningoperation has closed, if neither the localdistrict government, the nationalgovernment nor the local communityfeels the responsibility nor has the capacityto continue its upkeep. It may well bepotholed, crumbling and likely to get worse.Or, rehabilitation requirements may havenecessitated its removal, meaning that itshould never have been classified as asustainable community benefit at all.In either case, unless a major constructionproject like a road is developed as part of12 www.icmm.com/library/indigenouspeoplesguide13 For further guidance, see ICMM, CASM and IFC, Working Together: How Large-scale Mining Can Engage withArtisanal and Small-scale Miners, Pilot Version, London, 2010. Available at:www.icmm.com/page/17638/new-publication-on-engaging-with-artisanal-and-small-scale-miners22 Community Development Toolkit

Mining and community developmentcontinueda community-centred program, withcommunity plans and capacity for ongoingmanagement and maintenance, or is partof a partnership initiative with the hostgovernment, who will therefore takeresponsibility for its care and upkeep whenthe mine is gone, then it is unlikely to besustainable.By comparison, women’s literacy andnumeracy programs may yield much moremodest demonstrable results. There maynot have been any follow-on enrolmentsin adult education classes nor womenachieving high-school diplomas. However, ifa number of women became literate andmanaged bank accounts that helped themto save money, establish and operate smallbusiness enterprises and use them to helptheir families, those skills will not be lost.Further, if some of the women valueeducation more as a result of their experienceof learning, and encourage their children tocomplete their schooling so that schoolretention rates are raised, the benefits oftraining those women will multiply andcontinue. And there is no need for themining company to maintain a presence tosustain the benefits of the program afterclosure. Although smaller scale, this sort ofdevelopment is sustainable.For community development projects to besustainable they must be conceived,developed, implemented and managed inpartnership with their beneficiaries.Ensuring that government authorities arealso supportive, or at least aware, of thedevelopment project will also support itschances of being sustainable.Roles and responsibilities forcommunity development 14Community development needs clearlydefined roles and responsibilities ofgovernment, companies, NGOs/CBOs andcommunities (see Table 3), and sharedcommitment from all levels within anorganization.The precise roles of the various participantsdepend on local circumstances, and changeduring the course of both the mine and thecommunity development process. However,some broad principles are clear:Companies: Have a responsibility torespect human rights and can play an activerole to support community development.Where government capacity is insufficient,companies may be forced to take aleadership role but to the extent possible itshould be shared with NGOs and communityorganizations to ensure companies do notusurp the role of government at the locallevel. In the longer term, however, theyshould focus on ensuring that local initiativeswork constructively alongside governmentdevelopment programs and on buildingpartnerships to help develop sustainablecommunity capacities and resources.Government: Has the primary responsibilityfor protecting human rights and ensuringthat communities benefit from development.Governments should take the lead in settingpolicy and standards to ensure developmenttakes place at the local level, planning thedevelopment of social and physicalinfrastructure and land use, developingsystems for project monitoring and evaluation,and protecting the rights and interests ofcitizens. In some areas, governments canrequire mining projects to contributeMINING AND COMMUNITY DEVELOPMENT14 Advice on capacity building for all stakeholder groups is available in Chapter 5 of the IFC’s Strategic CommunityInvestment: A Good Practice Handbook for Companies Doing Business in Emerging Markets, Washington DC,June 2010.Community Development Toolkit23

Mining and community developmentcontinuedMINING AND COMMUNITY DEVELOPMENTTable 3: Typical roles and responsibilities of stakeholdersCompanies• Manage exploration,construction,operation andclosure of mine inaccordance withregulatoryrequirements• Catalyst for action atthe community level• Stakeholderco-ordination aroundproject site• Financial, materialand facilities supportfor local community• Transfer of technicaland managementskills and expertiseto local community• Monitoring andevaluationGovernment• Strategic leadership,priority setting• Strategicco-ordination andplanning• Deliver local services• Provide policy andregulatoryframework forproject development,operation, closureand post-closure• Support capacitybuilding at the locallevel, includingmonitoringcapabilities• Leverage state andexternal resources• Monitoring andevaluationCommunity groups• Local needsdefinition andprioritization• Local knowledgeand values• Community planningand mobilization• Mobilization of localassets and resources• Monitoring andevaluation• Internal organizationand conflictresolutionNGOs/CBOs etc.• Local needsassessment• Local capacitybuilding andinstitutionalstrengthening• Community projectdesign andimplementation• Leverage externalfunding forcommunity support• Monitoring andevaluationsubstantially to sustainable developmentthrough project agreements, potentiallystipulating it in investment agreements.Community groups: Play a central role.Community development is essentially theprocess through which communitiesaddress locally defined goals and achieveimprovement in their quality of life.Development reflects their needs, prioritiesand aspirations; is achieved largely throughtheir ownership and commitment to locallydefined development goals; and is sustainedwhen they have the capacity, confidence andopportunity to plan appropriate strategiesand mobilize resources to fulfil theirdevelopment goals.NGOs/CBOs: Can play an important role inadvocating on behalf of local communitiesand in delivering local services. The interestsof NGOs/CBOs need to be understood byother development actors, as they may bedifferent to those of the local community.NGOs/CBOs regularly partner withcompanies to support, and in many casesimplement, company communitydevelopment projects.24 Community Development Toolkit

Mining and community developmentcontinuedIn addition, international developmentagencies may also play a role in communitydevelopment in the mining sector, althoughthey are not always present in areas wheremining takes place. Donors have uniqueinfluence and responsibility, particularly inharmonizing the standards by whichcommunities are treated and in bringinginfluence to bear on public and private sectordevelopment actors. They provide animportant source of development resources,expertise and experience and can advisegovernments, companies, NGOs/CBOs andcommunities of good practice as well ashelping mobilize financial support forlocal development projects. Internationalorganizations can play a particularly effectiverole in encouraging regional managementapproaches and the co-ordinatedmanagement of cumulative impacts.Although each of the developmentparticipants described above has a distinctrole to play in the sustainable communitydevelopment process, great benefits canderive from partnerships between severalof them. For example, in Peru, the FondoMinero Antamina (FMA), in co-operation withthe municipal and national governments,identified five key areas for sustainabledevelopment programs, one of whichwas nutrition. The largest programsupported by the FMA to date is the AllyMicuy (meaning “good nutrition” in Quechua)health program addressing childmalnutrition. Ally Micuy is being implementedby two NGOs (Caritas in the northern halfof Ancash Region and ADRA in the south).After operating for two years, a reduction inchronic malnutrition among children underthree years of age by almost 7% has beenattributed to the program, with over 31,000children benefiting from the program todate. 15Community development in the miningproject cycleCommunity development activities spanall phases of the mining and metals projectcycle. All present particular challenges andopportunities. It is important to rememberthat the relationships between miningcompanies, local communities and otherstakeholders begin long before constructionof a mine commences, and companies wouldbe wise to invest in establishing good localrelationships at the earliest stages possible.While the toolkit includes guidelines onwhen different tools are applicable, as apractical rule of thumb the sooner you start,the better. Processes can more easily beslowed down than speeded up to meet acommunity’s needs. Additional guidance forthe exploration phases of project developmentis provided in the Prospectors andDevelopers Association of Canada’s (PDAC)Environmental Excellence in Exploration(E3) 16 – free registration is provided to anonline reference (an e-manual) of bestpractices in environmental managementand community engagement practices forminerals exploration globally. Where leasesor projects are acquired from othercompanies, an assessment of relationshiplegacies must be made at the earliestpossible stage and steps towardsamelioration taken as soon as possible,if needed.MINING AND COMMUNITY DEVELOPMENT15 World Bank, Mining Foundations, Trusts and Funds: A Sourcebook, Washington DC, June 2010. Available at:http://go.worldbank.org/ICB0VQBWM016 See www.pdac.ca/e3plusCommunity Development Toolkit25

Mining and community developmentcontinuedMINING AND COMMUNITY DEVELOPMENTSpecial attention is needed at theconstruction stage – which can be highlydisruptive for communities unless carefullymanaged. There is always an influx ofconstruction workers from outside theregion, typically with little affinity for localpeople, their customs or their needs. This isthe stage when community incomes changedrastically with “haves” and “have nots”starting to emerge according to whichindividuals and families receive employmentand/or compensation and which do not.During this time, traditional authoritystructures and family relationships can beweakened, and domestic violence and otherforms of social breakdown can increase inresponse to community stresses.There can also be unintended consequences– especially at the construction stage. Theconstruction of a mine in a remote locationcan place significant demands on localtransportation services, accommodation,land, food and other supplies, causing priceincreases that benefit suppliers andfarmers. While positive for one group, thiscan mean that local people no longer haveeasy access to transportation to otherlocations, the delivery of supplies to localstores is disrupted, and the price increasesfor food and suppliers harms those withlittle or no income – typically women andchildren – who are least able to protectthemselves. The end of the constructionperiod also heralds the departure of largenumbers of workers (and their dependants)and can cause a significant reduction inlocal employment as the project establishesits operational workforce.The operational period of a mine typicallyprovides the most steady-state environmentfor community development projects withlocal communities. During this time,companies have a greater sense ofconfidence around their long-term presenceand are able to make planning andresourcing decisions that can extend beyondannual budget cycles, and the turnover ofpersonnel can slow down to allow for thedevelopment of strong relationships withcommunity stakeholders.All stakeholders should start planning forclosure from the earliest opportunity.Taking into account closure needs andimplications will inform initial mine design,town/accommodation and infrastructureprovision, and the nature of developmentprojects that are supported by a company.Planning for closure should becomeprogressively more detailed as the minelife advances. 17 It is critically important toensure that all planning takes post-closureaspects into consideration. This is particularlythe case where long-term post-closuremonitoring will be required.The importance of monitoring and evaluationcannot be overstated, especially sincerelationships with and impacts on localcommunities will continue after the mine isfinished. Effective monitoring and evaluationprograms ensure that improvements todevelopment projects are fed back intoproject design and implementation andallow for adaptation as the operatingcontext changes.17 For advice, see ICMM, Planning for Integrated Mine Closure: Toolkit, London, 2008. Available at: www.icmm.com26 Community Development Toolkit

Mining and community developmentcontinuedTable 4 shows the sequence of communitydevelopment (CD) tools and activitiesthroughout the mining and metals projectcycle. The depth and breadth of communitydevelopment activities is greatest duringconstruction and operations, having builtup during exploration and feasibility andthen tapering off gradually duringdecommissioning and closure.Many of those activities are repeatedthroughout the project cycle – assessinglocal community or regulatory conditions,identifying stakeholders and developinghuman resources and capacities will beongoing through a project.MINING AND COMMUNITY DEVELOPMENTThe earlier these activities are started, thebetter. But it is never too late to startapplying community development toolsand approaches.For sustainability, it is necessary to considerhow a community development programwill cope without support from the mine,whether the mine closes in five years or fiftyyears. Program plans should include exitstrategies from the outset, that is how themining company will cede management ofprograms to another group (preferably thecommunity themselves) at a suitable time. 18“The earlier theseactivities are startedthe better.”18 See “Tips for developing handover and exit strategies” on p. 73 of the IFC Strategic Community Investment:A Good Practice Handbook for Companies Doing Business in Emerging Markets, Washington DC, June 2010.Community Development Toolkit27

Mining and community developmentcontinuedMINING AND COMMUNITY DEVELOPMENTTable 4: Description of phases of the mining project cycle andcompany/community interactionsExploration 19DescriptionSmall teams, working onshort time horizonspotentially across vastareas and structured withinvery short time horizons.The nature of therelationship betweencompany and localcommunities is established,and generally sets thetone of relationship fromthen on. This is achallenging time since,in the earliest stages atleast, there is an in-builtmismatch between theinterests of communitieswho want full informationdisclosure and a longstandingrelationship andthe interests of explorationteams who have nocertainty of their futureactivities in the region andwill move on if there areno promising prospectsfor follow-up.Main CD activities recommended (tool numbers)• Hire a full-time or part-time community relationsofficer (CRO) (13)• Identify and establish dialogue with local stakeholders (1)• Inform community about exploration program (3)• Desktop study of local community (11)• Collect basic baseline data (11)• Manage expectations through communication (3)• Establish a community grievance management process (5)• Hire and buy locally (17)• Invest in community initiatives to offset impacts andsupport sustainable initiatives (17)➜19 Detailed online guidance on best practices in exploration is available via free registration from EnvironmentalExcellence in Exploration (E3): www.pdac.ca/e3plus28 Community Development Toolkit

Mining and community developmentcontinuedTable 4: Description of phases of the mining project cycle andcompany/community interactionscontinuedFeasibilityDescriptionExtensive technical studiesand consultations withgovernment and localstakeholders.Important opportunitiesfor the company to engagewith local communitiesto establish clearunderstanding of social,environmental anddevelopment needs,priorities, concerns, etc. aswell as inform communitiesabout possible minedevelopment scenariosand timing.Main CD activities recommended (tool numbers)• Engage social baseline and impact assessment experts (13)• Hire more CROs as local study activity levels increase (13)• Increase the level of stakeholder engagement (2, 3)• Provide more detail about project plans and seek tounderstand community priorities (3)• Grievance mechanism (5)• Detailed socio-economic baseline study (11)• Social impact and opportunities assessment (12)• Ensure that communities understand uncertainty ofproject future (3)• Increase community investments to offset increasedactivities (16)• Expand monitoring indicators (19)• Report on changes observed and community feedback➜MINING AND COMMUNITY DEVELOPMENTCommunity Development Toolkit29

Mining and community developmentcontinuedMINING AND COMMUNITY DEVELOPMENTTable 4: Description of phases of the mining project cycle andcompany/community interactionscontinuedConstructionDescriptionRelatively short, but typicallyintense set of activities inthe construction phase,potentially with a largeand/or temporaryworkforce.The influx of constructionworkers can be highlytraumatic for thecommunity. This phaseoften introduces significantcash into the community,sometimes for the firsttime, with profound impacts– that can be both negativeand positive – for thecommunity.Main CD activities recommended (tool numbers)• Expansion of community relations (CR) team (13)• Hire impact management experts (13)• Review and updating of stakeholder analysis (2)• Intensive communications program (3)• Regular program of stakeholder engagement (3)• Grievance mechanism (5)• Resettlement action plan and associated compensationprograms for construction and operational periods (18)• Livelihood restoration programs (16, 17)• Detailed impact management plans (12)• Communications for construction disruption (3, 18)• Comprehensive impact monitoring system (19, 20)• Completion audits may be needed➜30 Community Development Toolkit

Mining and community developmentcontinuedTable 4: Description of phases of the mining project cycle andcompany/community interactionscontinuedOperationsDescriptionMedium- to long-term timehorizons. Period of greatestpresence and stableactivities.Opportunities to implementlong-term communitydevelopment programs,focusing on locallyidentified developmentneeds; communityparticipation; andstakeholder partnershipsin program design,implementation andmonitoring.Main CD activities recommended (tool numbers)• Full team of qualified staff on board (13)• External expert support as needed (13)• Dedicated and adequate community investment budget (17)• Regular program of stakeholder engagement (3)• Agreements with communities (14)• Updated stakeholder analysis and records (2)• Fully functioning grievance mechanism (5)• Participatory program of community investments (most tools)• Ongoing collection of updated data (11, 19)• Additional studies as needed (12)• Implementation of impact management plans (16, 17)• Manage community expectations through consultation (3)• Full-scale monitoring and evaluation program includingcommunity participation (19, 20)• Regular internal and external reporting of progress andchallenges➜MINING AND COMMUNITY DEVELOPMENTCommunity Development Toolkit31

Mining and community developmentcontinuedMINING AND COMMUNITY DEVELOPMENTTable 4: Description of phases of the mining project cycle andcompany/community interactionscontinuedDecommissioning and closureDescriptionMay be according to longtermplan or may occurprematurely. Need forclosure planning throughoutthe mining project cycle toensure that programs cansurvive.Role and development oflocal partners is criticallyimportant in planning forclosure.Even well-planned andimplemented closure willlikely cause significantdecline in communityincome and tax base oflocal government.Main CD activities recommended (tool numbers)• Allocate staff time to closure planning, increasing asclosure approaches (13)• Engage stakeholders in closure planning discussions (3)• Conduct and regularly update a closure socio-economicimpact assessment (12)• Develop impact management plans (16)• Report on updatesPost-closureDescriptionLong-term time horizon.Includes monitoring ofenvironmental impacts andsocial conditions followingclosure.Requires clear allocation ofresponsibilities formonitoring and remediationof any post-closure impacts.Support for post-closurealternative incomegenerationmeasures andsustaining the delivery ofsocial services.Main CD activities recommended (tool numbers)• Company personnel to provide program support untilfinalization (13)• Regular stakeholder updates (3)• Completion study of end-of-project socio-economicsituation (12)• Manage and support the transition to independence ofcommunity enterprises (17)• Report on transition progress and completion32 Community Development Toolkit

The tools provide practicalguidance for all stages ofthe community developmentprocessCOMMUNITY DEVELOPMENT TOOLS

THE TOOLS PROVIDE PRACTICALGUIDANCE FOR ALL STAGES OFTHE COMMUNITY DEVELOPMENTPROCESS – FROM FIRST CONTACTSBETWEEN EXPLORATIONGEOLOGISTS AND LOCALCOMMUNITY MEMBERS TODECOMMISSIONING, CLOSUREAND POST-CLOSURE.Image courtesy of Vale

Community development toolsUsing the toolsThe tools are predominantly designed formine site managers and communityrelations staff. They will also be useful forgovernment representatives, communityofficials and members in mining regions, butmay need to be adapted for these groups.They briefly provide and simply explain someessential tools for community developmentin a way that makes them easy to learn andto use, especially if you have limited time fordevelopment jargon or theory.By following the step-by-step approach, thecommunity development process will bebetter understood and the communitydevelopment project in and around mining andmetals operations will be better supported.The tools have six specific objectives:• to foster constructive workingrelationships among communities,companies and governments• to support lasting improvement in thequality of life enjoyed by miningcommunities• to improve understanding of localcommunity development processes• to facilitate community empowermentthrough participatory developmentprocesses• to build local capacities and developmentresources• to reduce conflict in mining communitiesand regions.The tools provide practical guidance for allstages of the community development process– from first contacts between explorationgeologists and local community members,or the acquisition of existing projects, throughto construction, operations and eventuallydecommissioning, closure and post-closure.Ideally, most of the tools will be used byseveral participants working together insome type of formal or informal partnership.For example, development opportunityranking workshops may be organized bythe mining company in conjunction withcommunity members, with the participationof local government officers and facilitatedby a local NGO.Some other tools may be used by differentparticipants from slightly differentperspectives. Strategic planning andstakeholder analysis tools, for example,may be used by each of the company,government and NGOs in a similar fashionbut with varying results, due to the differentviewpoints of each group.The tools are a reference and a guide to helpyou work more effectively in communitydevelopment; however, they are not allencompassing(or they would be too bulky touse!). You will find other useful sources ofadvice referred to in the text, with web linkswherever possible. These are particularlyrelevant when faced with issues requiringseparate and specific treatment, such asresettlement planning, influx managementand grievance resolution, for example, andreferences to international specialistorganizations knowledgeable about theseand other topics are provided. The tools alsodo not remove the need for knowing andobserving laws and regulations that apply toan operation.Using the tools will not mean you will neverneed help from others. Certain aspects ofcommunity development require expertiseyou may not have. The tools should help youdecide when you need assistance and whatkind of assistance that should be.COMMUNITY DEVELOPMENT TOOLSCommunity Development Toolkit35

Community development toolscontinuedCOMMUNITY DEVELOPMENT TOOLSExplanation of Participatory RuralAnalysis (PRA) methods 20Many of the tools described in the toolkit arefrom a suite of tools known as ParticipatoryRural Analysis (PRA). PRA is a widely usedapproach for the development of anunderstanding of community capacity andmotivation. It has been used internationallyfor more than 20 years, and is highlyeffective in identifying development needs,setting priorities and designing developmentprograms in a co-operative and participatorymanner.People participate in local developmentevery day through their family life, livelihoodactivities and community responsibilities.PRA techniques can help you involvecommunity members in the actual planningstages of development programs, ratherthan relying solely on the opinions ofexternal development actors, therebyincreasing the likelihood of developingappropriate and sustainable plans.However, the initial outlay in time will berepaid many times over when communitiesbegin to assume control of their own destiny.PRA is a methodology that covers a varietyof useful tools rather than being a tool initself. The PRA-based tools selected forthis toolkit, Community Mapping (tool 7),Institutional Analysis (tool 8) andDevelopment Opportunity Ranking (tool 9),are some of the most useful for engagingwith communities near mine sites in jointplanning exercises. These three tools enablea community to consider its physical andinstitutional structures and their strengthsand weaknesses, to identify areas they wishto improve in their community and then toassess the optimal means for achieving theirdevelopment goals. Each of these tools willbe explained in detail in the following pages.There are also many other PRA tools thatcan prove useful when working withcommunities unused to managing their owndevelopment futures. 21Increasing the level of participation fromcommunity stakeholders, while beneficial tothe outcome of the development projects,can also bring with it some challenges, suchas increased time to allow for meaningfulparticipation of significant and potentiallyvulnerable stakeholder groups (e.g. women,youth, ethnic minorities – all of whom tendto be overlooked in conventional planningprocesses), and additional time required tobuild capacity of these groups to takeadvantage of participatory approaches.Participatory assessment and planningmethods will take you longer to develop andimplement than autocratic methods.20 Most commonly known as PRA or Participatory Rural (or Rapid) Analysis. In the community developmentapproach we are advocating in this toolkit for the minerals sector, the analysis or assessment aspects of PRAare ultimately of lesser importance than the co-operative planning aspects, so it would be more accurate to usethe term Participatory Planning, which is what the assessment activities will lead to.21 Many reference works about PRA methods can be found at www.clarku.edu/departments/idce/publications.shtml36 Community Development Toolkit

CASE STUDYEarly participatory planning for closureNewmont, PeruSummaryEngagement on mine closure with communities around Newmont’s Yanacocha mine wasinformed by previous experience of community protests around the company’s earlierwithdrawal from the nearby Cerro Quilish project. This experience led the Yanacocha teamto establish a permanent community centre in order to ensure that local people fullyunderstood the implications of mine closure.Context and challengeIn 2004, there were community protests against the planned expansion of Newmont’sMinera Yanacocha mine into the neighbouring region of Cerro Quilish. Local residents tookcontrol of Cerro Quilish and the roads leading to the mine. In response to the protests, thecompany asked the government to revoke its exploration permit in the area.Learning from the experience of responding to the community protests over Cerro Quilish,Yanacocha prioritized the development of an engagement plan with the communitiesrelating to the planned closure of Yanacocha – even though closure was many years away.COMMUNITY DEVELOPMENT TOOLSResponseThe company recognized that the protests at Cerro Quilish were partly the result of a failureto engage with communities effectively, and sufficiently in advance. In order not to repeatthe mistake, Yanacocha worked with the community to establish a specific gathering placeto enable the mine to share its proposed closure and reclamation activities in order toprepare the community economically, socially and environmentally for life beyond the mine.As a result of these discussions, Yanacocha’s “Center for Research in Mine Closure” wasbuilt. It provided the community with visual examples of programs that could be adoptedpost-closure, and gave regular opportunities for the community to provide feedback onways to strengthen the programs, or suggest alternatives.Based on this feedback, the Center commissioned analysis from local scientificorganizations in order to identify the best post-closure land use options – those offeringenvironmental protection while providing long-term economic opportunities for thecommunity. The proposed options included raising alpacas, farming crops in the Andes,propagating forests and attracting “eco-tourists”.The Center also conducted programs in order to help assess options for land reclamation,in response to the very wet climate of the mine site and the need to prevent rainwaterfrom infiltrating into waste rock storage areas. As a result of these adaptations – whichconsisted of physically measuring water runoff and seepage rather than adapting the usualpractice of relying on mathematical modelling – the company was able to discuss impactson local water supplies post-closure with local ranchers and farmers.OutcomesSince the Yanacocha mine is not due to close for many years, it is impossible to know inadvance what the impacts of this enhanced consultation program will be. However, as aresult of the work at Yanacocha, the company has looked at the possibility of implementinga similar approach at its sites, including Batu Hijau in Indonesia and Ahafo in Ghana.Sources:“Newmont mining withdraws from Cerro Quilish, Peru”, press release from Oxfam America, 5 November 2004.“Community engagement for mine closure”, case study from Newmont Sustainability Report 2007.Community Development Toolkit37

Community development toolscontinuedCOMMUNITY DEVELOPMENT TOOLSCategories of tools and the processof community development planningand managementThe tools have been divided into several groupsaccording to their main uses, which are alsothe main elements necessary in a healthycommunity development program – planning,assessment, management, monitoring andevaluating and, most importantly, relationships.This categorization is primarily for convenienceof presentation and discussion – it is notdefinitive.Figure 1 illustrates graphically the overlapsbetween the various types of communitydevelopment tools and their multidirectional,cyclical relationships. The relationship toolsare central to the entire process and are thefoundation upon which all other activities rest.If the relationships between the project and itsstakeholders are not healthy, then it is unlikelythat even the most sophisticated and carefullyconceived planning and management activitieswill be successful. If relationships are healthy,then a firm footing for good communitydevelopment has been laid.It is difficult to state definitively whether theplanning or assessment tools come first as theyare very closely interrelated. Some resourcesare needed in order to commence assessment;however, it is through assessment that thedecisions about resources needed are made.Similarly, the assessment tools inform theproject about what management measuresare needed, while management tools helpdecide what further assessments are needed.In the same way, management tools feed intothe monitoring and evaluation processes,which feed back to management tools therequirements for modifications of managementprocesses. Monitoring and evaluation toolsalso help revise decisions about resourcing,and the cycle, with many backward and forwardlinkages, is complete.Some adviceBe patient. Let communities develop attheir own pace.One of the greatest challenges ofproviding good community developmentsupport is working to the timetable ofthe community. Community leaders andmembers will likely be fully aware of this.If you are a mining or metals companyrepresentative, you may have projectdeadlines, annual reports to completeand budgets to utilize. These imperatives,coupled with the temptation to seeimmediate results from your work, canbe strong.But remember that development is along-term process. It is about buildinglocal capacities and strengthening localorganizations – not necessarily theimmediate or visible outputs of yourdevelopment activity. Development is theprocess of change in local people’scapacities and resources, in how theyorganize themselves and in how theyrelate to the outside world.As a mining or metals companyrepresentative, your role is to facilitatethat process and to take a back seat orsupporting role. You probably have specialskills, knowledge and abilities and theaccess to resources, all of which couldachieve the tangible aspects of communitydevelopment projects more quickly thanpeople just learning the ropes can.However, you will really have achievedthe goal of sustainable communitydevelopment when the community feelsit can manage well without you.38 Community Development Toolkit

Community development toolscontinuedFigure 1: Interrelationship of community development toolsRELATIONSHIPS TOOLSThe central set of activitiesthat underpins and bindstogether all other communitydevelopment activities.PLANNING TOOLSUsed for planning theresources, both humanand financial, that will beneeded to undertakecommunity developmentactivities or to expand oradopt new programs.ASSESSMENT TOOLSThese tools help people tounderstand the potentialrisks and impacts of the mineon surrounding communitiesand other stakeholders.COMMUNITY DEVELOPMENT TOOLSRELATIONSHIPSPLANNINGMONITORING ANDEVALUATIONASSESSMENTMANAGEMENTMONITORING ANDEVALUATION TOOLSHow to monitor and evaluatecommunity developmentprogram activities and formeasuring progress towardsprogram goals.MANAGEMENT TOOLSMethods and approaches formitigating potential negativemine impacts and enhancingbenefits to maximizecommunity development.These management toolsinclude means for ensuringthat plans are realisticallyresourced and scheduled,and that there are peopletaking responsibility forimplementing them.Community Development Toolkit39

Community development toolscontinuedCOMMUNITY DEVELOPMENT TOOLS40 Community Development Toolkit

The central set of activitiesthat underpins and bindstogether all other communitydevelopment activitiesRELATIONSHIPSTOOLS

RELATIONSHIPS ARE THEMOST IMPORTANT ELEMENTOF ANY SUCCESSFULCOMMUNITY DEVELOPMENTPROGRAM. THE BEST-DESIGNEDPLANS WILL FALTER IF THEREIS INSUFFICIENT TRUSTBETWEEN THE VARIOUSSTAKEHOLDERS INVOLVED.Image courtesy of Newmont

Relationships toolsTOOL 1TOOL 2TOOL 3Stakeholder IdentificationIdentifying all the people with an interest in the project, or whomay be affected by the project.Stakeholder AnalysisHaving identified the project’s stakeholders, it is useful toanalyse their level of interest in the project and how they maylike to be involved.Consultation MatrixWhen you have analysed your stakeholders, it is important todevelop a system to ensure they are consulted regularly on thetopics that affect them.455357TOOL 4Partnership AssessmentA tool for analysing potential partners, their suitability forpartnering with your organization and what areas of mutualinterest you share in regional community development programs.63TOOL 5Grievance MechanismA means by which community members or other stakeholderscan register their concern about real or perceived actions bythe mining project, with the objective of resolving problemsbefore they escalate.73Community Development Toolkit43

Relationships toolscontinuedRELATIONSHIPS TOOLSGuidance for usingrelationships toolsRelationships are the most importantelement of any successful communitydevelopment program. The best-designedplans will falter if there is insufficient trustbetween the various stakeholders involved.It is therefore essential that all parties knowwho the other stakeholders are, know whythey are involved with the project and for allstakeholders to learn to know each otherso they can work together to developprograms acceptable to all of them.Consultation is both the best means ofcoming to understand other stakeholdersand of building good relationships withthem.All of the tools in this relationships sectioncan be applied at the mining project level orthe community development project level.To highlight the widest range of applications,these tools have been developed for thewhole mining project (with the exception ofthe Partnership Assessment tool (tool 4)),but you can easily apply them to specificcommunity development projects. If youare working in a developed mine, and theactivities these tools reference have notbeen undertaken in the past, they representan excellent and necessary place to start asa means of informing your communitydevelopment projects.As mining company community developmentstaff, you may have started work on a newmining or metals project and need to knowwho all the project’s stakeholders are. Youwill also need to find out if there are legaciesfrom previous owners or earlier interactionsin the area so that you can ameliorate themand develop sound and positive relationships.Building good relationships with allstakeholders will be a central part of yourteam’s responsibility. While the primaryresponsibility for building relationships willrest with you, many other teams will alsodevelop relationships with communitystakeholders (e.g. procurement, logistics,government relations and human resources,etc.) and it is the responsibility of the wholesite to uphold the same level of respectwhen engaging with communitystakeholders as you have established.Government officers, NGOs and communitymembers in mining areas may also findthese tools useful. For example, a newmining project may be developing in the areaand understanding who the stakeholders areand how to engage with the project as itdevelops could be advantageous for allgroups. Similarly, these tools will help allinterested groups to understand thepotential benefits of partnering oncommunity development initiatives andleveraging resources from all parties.44 Community Development Toolkit

Stakeholder Identification1DescriptionStakeholder identification is the processused to identify and define your project’sstakeholders – their interests and the waysin which those interests affect the project’sviability. Stakeholder identificationcontributes to project design by learningabout the goals and roles of different groups,and suggesting appropriate forms ofengagement with those groups.Stakeholders are persons or groups who areinterested in, affected by or can affect theoutcome of your project. Stakeholders maybe individuals, interest groups, governmentagencies or corporate organizations.They may include politicians, commercialand industrial enterprises, labour unions,academics, religious groups, national socialand environmental groups, public sectoragencies and the media. Your project’sstakeholders may change over time.In addition, groups of stakeholders mayhold divergent views within what appearto be unified parties. It is important not toassume that all members of a group orcommunity are in one mind over a programor plan, but to seek various points of view.There can be a temptation to only engagewith the stronger voices in a community orwith those who seem to be in charge, suchas traditional chiefs. While it is alwaysimportant to deal with these obvious leaders,it is equally essential to ensure that youengage with the broader community andsociety, for example women, minoritygroups, vulnerable sectors of the communitysuch as the poor, or migrants. If seemingly“powerless” sectors of society are left out ofthe consultative processes, the project canfail due to a lack of comprehension of thebroader context and concerns in which it isbeing implemented. Successful companiesseek to validate who has the right to speakfor or represent others and not just acceptassertions of representativeness at facevalue. There must be broad agreement onwho can be allowed to represent othermembers of the community.In addition, when dealing with customaryleaders, it is crucial you ensure that allcustomary leaders, as well as electedleaders, are consulted. In some culturesthere may be traditional leaders who holdceremonial or spiritual power as well asthose who wield more secular ororganizational power, and if some areexcluded, you may find that the project doesnot have the support of the full community.Women leaders, traditional or secular, areoften overlooked when identifying importantstakeholders.RELATIONSHIPS TOOLSThe key to this process is to undertakeexhaustive discussions over an extendedperiod of time about “who’s who” in acommunity and not to just stop when youthink you have found the leader. Such anassumption can cause problems at alater date.Community Development Toolkit45

1Stakeholder IdentificationcontinuedRELATIONSHIPS TOOLSPurposeTo identify a comprehensive list of peopleand groups who may be affected by, canaffect or have an interest in your project.This can be used for consultation purposes,impact assessment and partnershipassessment as the project evolves.Stakeholder identification provides a startingpoint in building the relationships you needfor successful project development and forsuccessful community development – youneed to find out which groups to work withand how to engage with them mosteffectively. If you find that some stakeholdersseek to exclude others from the engagementprocess, then extra care should be taken toexplain that the company wants to be fair,open and transparent in its consultationswith stakeholders and that anybody andeverybody who wants to be included canand should be.When to use this toolStakeholder identification is a dynamicprocess – some stakeholders disengage,others join in at different stages of projectdevelopment. There is no such thing as astatic list that can be filed away once allstakeholders have been successfullyidentified. Take care to remember internalstakeholders – for example your ownemployees – form an essential part of thecommunity and should be kept informedand listened to just as much as externalstakeholders. This will enhance employees’feeling of “ownership”. In addition, manyexternal stakeholders gain knowledge ofyour activities through interactions withyour employees, so it makes sense to keepyour own staff engaged.From the earliest exploration stages of aproject, you should start to build yourstakeholder list, and then revise the listwhenever there are any changes in projectdesign, scope, social environment or activity,right through to closure. Revise the listsystematically at least once a year, moreoften if changes are observed.The following process is aimed at companystaff, but could be applied just as easily tostakeholder identification by governmentor NGO representatives or communitymembers.How to use this toolYour initial objective is to identify everyoneand every group that might have an interestin the project in order not to miss anyoneout. Later, you will ascertain who has anenduring or deep interest in the project, butto start with, you should aim for inclusivity.46 Community Development Toolkit

Stakeholder Identification1continuedSTEP 1Brainstorm existing stakeholders. This isbest done by a team of people who haveinteractions with parties external to theorganization. Every project already hasexisting relationships – list those to beginwith. Using the checklist, name thestakeholders for the project you areworking on.Some stakeholders are easily identified,such as people in the neighbourhood of theproject, interest groups in the country wherethe project is located, local and regionalgovernment people, and so on. Do not forgetthat mining company employees are alsostakeholders and need to be considered forconsultation plans. Other stakeholders maybe more difficult to identify, requiring you tothink more laterally about how you establishand maintain relationships with them.Examples of these may be NGOs or academicssituated in locations remote from the projectbut nonetheless with an interest in it.STEP 2Network to expand the list. Ask thestakeholders you already know to suggestother people with an interest in the project.Be inclusive. Do not worry about numbers –they will even out in the end. Worry moreabout leaving people out. It may be helpful toconsider the following questions to ensurethe widest number of possible stakeholdersare included:• Who will be affected by negative impactsof the project?• Who will benefit from the project?• Who will be responsible for implementingmeasures to mitigate the negativeimpacts?• Whose co-operation, expertise or influencewould be helpful to the success of theproject?• Who are the most vulnerable, least visibleand voiceless for whom specialconsultation efforts may have to be made?• Who supports or opposes the changesthat the project will bring?• Whose opposition could be detrimental tothe success of the project?• Who might have resources to contribute?• Who will make decisions?RELATIONSHIPS TOOLSCommunity Development Toolkit47

1Stakeholder IdentificationcontinuedRELATIONSHIPS TOOLSSTEP 3Check that you have included all the possiblestakeholders that you and your colleaguescan think of. A rule of thumb for ensuringthat all key stakeholders are included in thelist is to ask yourself: “Who will the projectimpact (positively or negatively) and whosesupport or lack of it might significantlyinfluence the success of the project?” Alsocheck that you have taken care to includewomen and vulnerable and/or marginalizedstakeholders, not just the influentialmembers of society.Checklist of possible stakeholdersCommunities• Nearest neighbours• The local community near your site• The local community near your head office• Communities you may pass through on aregular basis (e.g. linear project elements)• Regional centres for your localcommunitiesPotentially vulnerable people/groups• Women• Elderly/ill/incarcerated/disabled• Indigenous Peoples 22• Racial minorities/oppressed groups• Children/schools/orphanages or otheryouth groups• Child-headed households• OthersGovernment officials• Local officials (elected and appointed)• Regional officials• State officials• National officials• Opposition officials• Administrative representatives from eachof the ministries based in your local areaor regionOther civic organizations• Places of worship and religiousorganizations• Trade or labour unions• Educational organizations• Fraternal organizations• Charitable organizations• Organizations serving children• Organizations serving the elderly• Professional and trade associations• Others22 For a detailed examination of the issues inrelation to mining and Indigenous Peoples, seeICMM’s Mining and Indigenous Peoples IssuesReview, 2005. Available at:www.icmm.com/page/1161/mining-andindigenous-peoples-issues-review➜48 Community Development Toolkit

Stakeholder Identification1continuedChecklist of possible stakeholdersInternal• Board of directors• International Advisory Board• Senior management• Unions or other organized labour groups• Shareholders• Legal team• Health, safety and environment teams• Human resources team• Medical services team• Logistics team• Procurement and contracts teams• Employees• Retirees• Families of employees• OthersIndustry• Individual companies• Competitors• Suppliers• Customers• Industry associations• Business associations• OthersRegulators• Local agencies• Regional agencies• State agencies• National agencies• International organizations• OthersChecklist of possible stakeholdersNon-governmental organizations andcommunity based organizations• Local groups• Regional groups• State groups• National groups• Cultural groups• Environmental groups• Recreational groups• Sporting groups• International groups with an interest inyour project, the location or the type ofactivity you are conducting• OthersOther advocacy groups• Individual activists• Health and safety groups• Human rights groups• Social justice groups• Political groups• OthersSpecially concerned people/groups• With interests in your site (e.g. smallscaleminers)• With interests in your company (e.g.existing partners)• With interests in your industry• Those already involved• Those who want to be involved• Those with emergency response jobswho you wish to involve• News media• OthersRELATIONSHIPS TOOLS➜Community Development Toolkit49

CASE STUDYStakeholder mapping to inform community programsGold Fields, Far Southeast gold-copper project, PhilippinesRELATIONSHIPS TOOLSSummaryThe Far Southeast gold-copper project located in northern Luzon in the Philippinesrepresents a relatively challenging socio-political environment. This means the project’sultimate success is more dependent than most on close consultation with localstakeholders.ResponseFar Southeast has established a strong Community Sustainable Development team madeup of 52 people – or 21% of the total project workforce. The majority of the team is made upof local and Indigenous Peoples from the Municipality of Mankayan – where the ore body islocated. Far Southeast’s approach to community engagement is informed by comprehensivecommunity stakeholder mapping, carried out with the assistance of the nearby BenguetState University (BSU). This was based on an innovative household survey of almost all ofMankayan’s 35,000 residents, carried out using a team of 340 student volunteers andanalysed using advanced geo-spatial software.Geo-spatial image from community stakeholder mapping program➜50 Community Development Toolkit

CASE STUDY continuedStakeholder mapping to inform community programsGold Fields, Far Southeast gold-copper project, PhilippinesOutcomesThe community stakeholder mapping exercise – as well as subsequent work with localofficials and the BSU to develop strategic Barangay (local administrative unit) developmentplans – helped inform Far Southeast’s targeted community programs, including:• communication campaigns to address negative perceptions around mining, land stabilityand water quality/availability• engagement with local people and land claimants to expedite drilling• support for local health missions, benefiting more than 8,600 people• implementation of teacher training for 133 high-school teachers, and 79 day care andpre-school teachers• “cultural renewal” activities, co-ordinated by local elders, to promote indigenousKankana-ey tradition• disaster management training for Barangay emergency response teams through thePhilippine Red Cross.RELATIONSHIPS TOOLSFar Southeast stakeholdersLandclaimantsCommunityorganizationsAncestraldomain holdersStakeholderswho are directlyimpactedNGOsStakeholderswith an interestin the projectThe ChurchProjectoutcomeProvincialgovernmentof BenguetLocalcommunitiesStakeholderswho are indirectlyimpactedGovernment ofthe PhilippinesStakeholdersgranted decisionmakingpowerMunicipalgovernmentof BenguetLocalbusinessesIndigenousrepresentativesSource: Gold Fields, Integrated Annual Review 2011, pp. 106–108www.goldfields.co.za/reports/ar_dec_2011/pdf/integrated_ann_rev_2011.pdfCommunity Development Toolkit51

1Stakeholder IdentificationcontinuedRELATIONSHIPS TOOLSKey referencesIFC, Stakeholder Engagement: A Good Practice Handbook for Companies Doing Business inEmerging Markets, Washington DC, 2007. Available at:www.ifc.org/ifcext/sustainability.nsf/content/publications_resettlementZandvliet, L. and Anderson, M. B., Getting it Right: Making Corporate-Community RelationsWork, Greenleaf Publishing, Sheffield, 2009, especially Chapter 9.52 Community Development Toolkit

Stakeholder Analysis2DescriptionOnce you have identified stakeholders usingtool 1 (Stakeholder identification), it isnecessary to consider what stakeholders’interests are in the project and how muchand in what ways they might like to beinvolved. Every effort should be made toclearly identify and understand the interestsand perspectives of the various stakeholdersregarding a project and its potential impactsin order to design inclusive engagement andconsultation processes. It may be helpful toknow whether stakeholders support themining project, oppose it, are neutral orundecided, so that you can tailorengagements with each group accordingly.The Stakeholder Analysis tool enables you toassess how important the project might beto each stakeholder. If you are applying thistool to frame your community developmentactivities, the analysis will help youunderstand how much each stakeholdermight want to participate in communitydevelopment programs. Understanding howstakeholders relate to each other will alsohelp you to understand the web ofrelationships surrounding the project.In order to be able to engage fully with manystakeholders, it helps to understand theirmotivations for becoming involved with themining project – are their interests or concernsprimarily environmental, and/or economic orpolitical? Do they have a historical connectionto the project area, or are they relativenewcomers wishing to become more deeplyrooted in their community through publicparticipation? The list of questions that couldbe posed is as varied as the stakeholdersyou will encounter, so you need to considereach individual or group as a separate case.In coming to know your stakeholders, youwill come to understand their priorities andbe able to use this knowledge as the basisfor forming strong relationships.PurposeTo refine your understanding of youridentified stakeholders for the miningprojects, and how to engage with them, by:• defining the characteristics ofstakeholders in order to understand theirlevel of interest, connection and capacityto impact the mining project• identifying conflicts of interests betweenstakeholders, to help manage suchrelationships during the course of theproject• prioritizing the engagement with differentstakeholders based upon their influenceand impact on the project.To refine the approach you will take withdifferent stakeholders when developing acommunity program by:• drawing out the interests of stakeholdersin relation to key development issues• identifying relations between stakeholdersthat may facilitate development partnerships• assessing appropriate levels ofengagement with different stakeholders –for example informing, consulting,partnering – at different stages of theproject cycle• ensuring that the interests of women,youth and vulnerable and/or marginalizedpeople in the community are notoverlooked in the mine’s communitydevelopment programs.RELATIONSHIPS TOOLSCommunity Development Toolkit53

2Stakeholder AnalysiscontinuedRELATIONSHIPS TOOLSThe identified level of interest of eachstakeholder helps you to design yourConsultation Matrix (tool 3), and to decidehow much time to devote to engaging witheach stakeholder or group. The engagementlevels required for each group of stakeholdersas revealed through this analysis may bemore than consultation, for example theymay include partnership, involvement incommunity development plans or communitymonitoring, or a wide range of activities.It is important to always ask stakeholdershow much involvement they desire and tolearn about their views and expectations.The more you know about your variousstakeholders, the more successful you arelikely to be in building and retaining goodrelationships with them.When to use this toolThe Stakeholder Analysis tool should beused when designing the ConsultationMatrix (tool 3) and should be revised eachtime the list of stakeholders (from tool 1)is revised. The initial analysis should beundertaken for national and internationalstakeholders in the exploration period andthen at least by early feasibility period forlocal stakeholders, depending on whenmajor impacts are generated by the project(impacts to land, access to resources, localeconomic opportunities, in-migration,employment, etc.).How to use this toolThis tool requires you to categorize thestakeholders identified in tool 1 according toa set of three criteria: (i) how they view theproject, (ii) their influence and (iii) the extentto which they will be impacted (positively ornegatively) by the project.STEP 1Obtain a list of stakeholders from usingtool 1.STEP 2Either individually or in a team, evaluateeach stakeholder’s view of the project(positive, neutral, negative), how influentialthey are (high, medium, low) and howgreatly they will be impacted by the project(high, medium, low).STEP 3Arrange the lists of stakeholders into theanalysis matrix as shown in Table 5.Use the category lists to assign priorities tostakeholders for engagement activities inthe Consultation Matrix (tool 3).Stakeholder X would be classified as a highlyinfluential supporter of the project, and notlikely to be negatively impacted – perhaps alocal business owner who does not live nearthe project.Stakeholder Y is neutral about the project,has a certain amount of influence and is notstrongly impacted – perhaps a schoolteacherat the local school, but who does not liveclose to the project site.Stakeholder Z is a strongly influentialopponent of the project who will benegatively impacted – perhaps a powerfullocal landowner who does not want to loseland to the project.54 Community Development Toolkit

Stakeholder Analysis2continuedTable 5: Stakeholder analysis matrixName/group ofstakeholdersXYZView of projectInfluenceImpactPos Neutral Neg H M L H M L✓✓✓✓ ✓ ✓✓ ✓✓RELATIONSHIPS TOOLSSTEP 4Each stakeholder’s position in relation to theproject is illustrated in a stakeholder map,such as that included in the IFC guide, andreproduced in Figure 2. To do this, plot thestakeholders according to their ability toinfluence the company’s activities (verticalaxis) and the degree to which they areaffected by the project (horizontal axis).Colour-code the stakeholders accordingto their level of support for the project.In Figure 2 you would want to prioritize thedevelopment of an effective engagementstrategy for the two influential andsignificantly impacted stakeholders whooppose the project as a matter of urgency.Figure 2: Prioritizing stakeholder engagement activities 23Capacity to influenceHighStakeholder mapLowKeySupportiveSupportive with conditionsNeutralOpposedLowDegree impacted by the projectHigh23 Taken from IFC, Strategic Community Investment: A Good Practice Handbook for Companies Doing Business inEmerging Markets, Washington DC, June 2010, page 27.Community Development Toolkit55

2Stakeholder AnalysiscontinuedRELATIONSHIPS TOOLSKey referencesDFID, Tools for Development: A Handbook for Those Engaged in Development Activity, 2003,Section 2: Stakeholder analysis.IFC, Strategic Community Investment: A Good Practice Handbook for Companies DoingBusiness in Emerging Markets, Washington DC, June 2010.IFC, Strategic Community Investment: A Quick Guide, Highlights from IFC’s Good PracticeHandbook, Washington DC, February 2010. Both IFC publications available at:www.ifc.org/ifcext/sustainability.nsf/content/publications_handbook_communityinvestmentIFC, Stakeholder Engagement: A Good Practice Handbook for Companies Doing Business inEmerging Markets, Washington DC, 2007. Available at:www.ifc.org/ifcext/sustainability.nsf/content/publications_resettlementZandvliet, L. and Anderson, M. B., Getting it Right: Making Corporate-Community RelationsWork, Greenleaf Publishing, Sheffield, 2009.56 Community Development Toolkit

Consultation Matrix3DescriptionThere is a significant difference betweenrelationships in which stakeholders areengaged in consultative ways and those inwhich stakeholders are seen as passiverecipients of engagement activities. You needto understand these distinctions in order todecide what level of engagement you wouldreally like to undertake with each group ofstakeholders – and how successful thatlevel of engagement might be.Engagement should be both formal andinformal and may involve a number of theactivities listed below:• information disclosure• public meetings, interviews withspecific stakeholders• community liaison team membersappointed• grievance mechanism, newsletters,open houses• annual/quarterly targeted consultation• perception surveys• participatory monitoring.The consultation matrix is the basis fordeveloping a comprehensive, well-thoughtthroughconsultation plan. It is a helpful toolfor ensuring that information gets to thepeople who need it, at the right times; thatfeedback from stakeholders reaches theright people in the company and government;and that stakeholders are informed of theresults of their inputs. Stakeholders shouldbe asked what level of consultation theydesire – information provision, involvementin meetings, active contribution to planning,participation in monitoring activities forthe project or partnership on communitydevelopment programs. Matching the levelsof interactions with stakeholders’ needsand expectations will help you deliver atargeted, time-effective consultationprogram. Ideally, consultations between allstakeholders should be frequent, open andmutual. Consultation is not a one-way street.Key principles for achieving comprehensiveconsultation are:• consult often and not just when you needsomething• consult everyone who wants to beconsulted• listen as much as you talk• record your interactions in a database,including comments and responses fromstakeholders and your responses to them• be responsive to issues raised/actionsarising from consultations and commit toproviding feedback to your stakeholdersabout their concerns• keep a register of any commitments youor your colleagues have made withstakeholders and review it regularly.RELATIONSHIPS TOOLSCommunity Development Toolkit57

3Consultation MatrixcontinuedRELATIONSHIPS TOOLSPurposeThe consultation matrix enables you toestablish a comprehensive plan for projectconsultation and communications, and toensure that your consultation activities areappropriate to the specific needs of differentstakeholder groups. For example, if youdiscover during early consultations thatareas of current or potential conflict existbetween stakeholders, or between theproject and various stakeholders, you shouldmake note of that to ensure that efforts aremade to try to resolve and manage theseconflicts (see tool 5 Grievance Mechanism).It should also enable you to keep up todate with consultations with stakeholders.You will be able to tell when you last spoketo a stakeholder and what you or yourcolleagues talked about. Often, thisinformation is stored in field officers’ heads.Unfortunately, if those officers move on toother jobs, the information in their headsgoes too, so it is important to keep recordsto enable constancy and continuity inrelationships with stakeholders. Typically,this is done with the assistance of anelectronic stakeholder database (see tool 15Management Systems).When to use this toolWhenever stakeholder engagement activitiesbegin, which should mean exploration, fordirectly affected stakeholders such assurrounding communities who may beproviding labour, resources or land tosupport exploration activities. Indirectlyimpacted stakeholders such as financiers,government agencies, NGOs and otherinstitutional bodies should also be includedfrom advanced exploration/pre-feasibilityperiods based on their interest and level ofimpact on the project. Employees are alsoan important stakeholder group that needsto be consulted from the beginning of themining project activities. The employee poolwill change drastically over the life of themining project, but regular engagement withthis group is essential from the time of thefirst geological survey. The plan should berevised at least annually, or whenever thescope of activities changes.How to use this toolUsing step 4 from tool 2, you can planthe nature of communications with eachstakeholder and ensure that the level ofengagement correlates with the level ofinterest, influence and impact assessedin tool 2.Schedules need to be drawn for the frequencyof each type of consultation, for examplesite tours once a month, press releasesquarterly, etc., with records being kept ofwhich stakeholders are engaged by whichmethod, and how often. Records should alsobe kept of responses to stakeholders,especially if project or program modificationsare made due to stakeholder inputs. It isparticularly important projects maintain acommitment register of all formal andinformal commitments made to stakeholdersacross the life of the project. Many of thesecommitments will emerge from consultationactivities being discussed here.58 Community Development Toolkit

Consultation Matrix3continuedSTEP 1Make sure all key stakeholders are includedfrom the list from tool 2 (Table 5, page 55).Update your stakeholder analysis wheneverchanges in the project or community occur.STEP 2Using the consultation matrix (Figure 3) atthe end of this tool as a guide, identifyappropriate consultation methods for eachstakeholder or group based upon their levelof interest and impact on the project. Whilehighly influential stakeholders who opposethe project will require detailed engagement,it is also important to consider appropriateconsultation methods for those who arehighly impacted but are not influential asthey will require equally important butdifferent engagement and/or support.The consultation methods you apply arelikely to fall within a broad continuum –from simply informing stakeholders of youractivities, to partnering with them inprogram design or integrating them intothe project’s decision-making process foractions that affect communities. The formsof consultation listed in the matrix are notexhaustive and must be informed by youroperational context – that is, if you operate ina conflict-sensitive area, you need to considerwhether the consultation approach you areconsidering will affect (either positively ornegatively) the existing tension. 24 Appropriateformats should also be utilized, for exampleusing audiovisual methods for people whoare not highly literate. Local languagesshould always be used, through aninterpreter if necessary.STEP 3Once you have defined the appropriateapproach to engagement for each group ofstakeholders, create a table summarizingthe approaches you have selected. Use theconsultation matrix to plan for consultationthroughout the life of the program,recognizing that stakeholders’ needs andinterests are likely to change.STEP 4Monitor and evaluate the effectiveness ofyour consultation activities (see monitoringand evaluation tools); revise your approachto engagement to reflect changing needs,circumstances and experience. Rememberthat consultation is an interactive processand that messages coming in fromstakeholders are just as important asthose going out.STEP 5Keep a record of consultation activities,including messages from and feedback tostakeholders. This will help you to keeptrack of who you have consulted and howoften, in order to neither neglect nor fatiguestakeholders. When agreements are reachedthrough consultation with stakeholders, itis always useful to generate a signed recordof this, whether minutes of a meeting or aformal agreement. All parties should receivecopies of such records, and the companyshould ensure that one is kept in itsdatabase.Lists of stakeholders contacted, records ofthe dates and nature of the contact andfeedback should be systematicallydocumented and filed in a database, whetherelectronic or paper based. People shouldconsent to notes or recordings being takenRELATIONSHIPS TOOLS24 See International Alert, Conflict-Sensitive Business Practice: Guidance for Extractive Industries, 2005.www.international-alert.org/resources/publications/conflict-sensitive-business-practice-guidance-extractive-industriesCommunity Development Toolkit59

3Consultation MatrixcontinuedRELATIONSHIPS TOOLSof meetings, otherwise it would beinappropriate to do so. Privacy legislationmust be adhered to, ensuring thatstakeholder data are not passed on or usedfor any purpose other than keeping track ofinteractions. If people provide confidentialor personal information that is entered inthe database, it should be marked asconfidential and treated as such.Figure 3: Consultation matrixMediumRegular consultationPublic meetingsPerception surveysGrievance mechanismHighRegular targeted consultationInformed participation in planningOpportunities for partnershipsParticipatory monitoringOpen houses/information shopsIssues workshops as necessaryEffective grievance mechanismInfluenceContextdrivenLowInterviews with key stakeholdersPublic meetings as neededPeriodic engagementMedium/highConsultation through CROEffective grievance mechanismOpportunities for partnerships indevelopment programsFocus working groups onspecific topicsImpact60 Community Development Toolkit

CASE STUDYPre-operational implementation of HSEC processesBHP Billiton, multiple locations in Kalimantan, IndonesiaSummaryBHP Billiton’s IndoMet Coal Project (IMC) has taken a comprehensive and integratedapproach to developing health, safety, environment and community (HSEC) practicesand processes while still in the exploration and feasibility study stages of the project.This approach was motivated by the company’s Charter commitment and Communitystandard, which aim to build strong relationships with key stakeholders, deliver clearsocio-economic benefits and manage potential risks and impacts.ResponseThe company began by identifying and analyzing key stakeholders and developingappropriate procedures for their consultation and engagement. Stakeholders includedgovernment at various levels, 20 directly affected villages and regional communities(representing around 14,000 people), NGOs and the media.RELATIONSHIPS TOOLSComprehensive socio-economic, public health and cultural impact and baseline studieswere undertaken. As some of the studies required considerable lead times, communitydevelopment practitioners were commissioned to undertake up-front “rapid rural appraisals”across all directly affected village communities. The communities reacted positively to thestudies and actively participated in workshops. Typical issues raised by the communitieswere on employment opportunities, access to better education, provision of clean waterand opportunities for local businesses to support the company’s operations in the area.The recommendations from this preparatory work were formally discussed at formal andinformal consultative meetings. Preparatory work also included consultation with localgovernment to align the company’s initiative with government programs.Results from more comprehensive baseline studies and research were then fed back intothe stakeholder consultative process and, in turn, into IMC’s community investmentactivities. For example, thorough environmental baseline studies were initiated early in thepre-feasibility stage, including an extensive biodiversity study of the project footprint.Several new species of fauna were discovered, prompting the development of an extensivebiodiversity management plan. As the feasibility studies on the project continue, the baselinedata inform a range of programs such as health awareness campaigns, the provision ofteaching and learning materials to local students and cultural enhancement supportactivities. In addition to regular day-to-day engagement, ongoing formal forum consultationsessions were held several times each year to provide an ongoing “health check” of theprogram and an opportunity to enhance relationships.In addition to working collaboratively with local development partners, IMC has prepareda scope of work for an Indonesian-based international NGO to assist in designing andexecuting a partnership program. The program will be informed by the baseline data, andwill build capacity and provide a broad social benefit to the region.OutcomesFrom the outset, the company involved host communities, NGOs and government in impactassessment research, in the identification and selection of priority areas for communityinvestment and in the delivery of the resulting programs. A range of Indonesian CoalProjects/stakeholder partnerships were developed to deliver a range of programs coveringpublic health, education, behaviour management, essential infrastructure (including waterand sanitation), microfinance, business development, food security, poverty alleviation,vocational skills training, risk sensitization, agricultural improvement and village-levelgovernance and administration.Source: BHP Billiton IndoMet Coal ProjectCommunity Development Toolkit61

3Consultation MatrixcontinuedRELATIONSHIPS TOOLSKey referencesIFC, Stakeholder Engagement: A Good Practice Handbook for Companies Doing Business inEmerging Markets, Washington DC, 2007. Available at:www.ifc.org/ifcext/sustainability.nsf/content/publications_resettlementZandvliet, L. and Anderson, M. B., Getting it Right: Making Corporate-Community RelationsWork, Greenleaf Publishing, Sheffield, 2009, especially Chapter 9.62 Community Development Toolkit

Partnership Assessment4DescriptionThe sustainability of community developmentactivity demands effective partnershipsbetween government, business and civilsociety. None of these groups possessesthe full range of resources required topromote community development at thelocal level. Each has distinctive roles andresponsibilities, skills and capacities withinthe community development process.Working together they can make significantand sustainable contributions to the localdevelopment process, which will outlive thepresence of a mining project. Successfulpartnerships are built on a sharedcommitment to address development needs.The World Bank’s Business Partners forDevelopment (BPD) 25 initiative broughtgovernment, industry and civil societyrepresentatives together to exploreopportunities for partnership aroundresource development projects, and toproduce practical guidance on how thosepartnerships could generate sustainablebenefit in local communities. Much of thissection is based on the BPD initiative.Additional analysis of the importance ofpartnerships to successful communitydevelopment programs in mining areas hasbeen undertaken in a number of countriesby ICMM. 26Partnerships offer a model of participatorydevelopment. While partnerships are oftenbetween two parties, namely a miningcompany and an NGO or communityorganisation, this tool specifically addressestri-sector partnerships as they can bringtogether unique resources and qualities (seeTable 6):Government can contribute credibility topartnership arrangements, strategicco-ordination through local developmentplans and public investment, and can act ascatalyst, broker and mediator.Business can contribute employment andinfrastructure opportunities, financialresources, capital equipment, a results-ledwork ethic and attention to performancequality.Community organizations and NGOscan contribute local knowledge, capacity tomobilize community participation, toolsand methods to ensure relevance to localconditions and a long-term presence in thehost community.The greatest opportunities for communitydevelopment – and best hope for programsustainability – lie in bringing together thedevelopment capacities and resourcesavailable collectively within the region.If companies and other actors can aligntheir programs with those already decidedupon by the local and regional governmentsnear a mining project, then the combineddevelopment actions of such partnershipswill help communities contribute to nationaldevelopment goals. This ensures bettercoordination of development activities, moreefficient use of development resources, andthe active support and participation of keystakeholder groups.RELATIONSHIPS TOOLS25 See World Bank Business Partners for Development initiative at www.bpdweb.com26 See several ICMM documents at www.icmm.com/mpd/partnershipsCommunity Development Toolkit63

4Partnership AssessmentcontinuedRELATIONSHIPS TOOLSTable 6: Partnership benefitsfor business• Greater efficiency ofproduction, reduced delays,facility “downtimes”,security costs• Greater return oninvestment• More robust social licenceto operate• Better management ofcommunity expectationsfor government• Alignment of private sectorinfrastructure withgovernment developmentplans• Greater visibility ofgovernment discharging itscivic duties• Co-ordination betweengovernment departments• Cost sharing, risk sharingfor community• More participatory designof community projects• Transparency andaccessibility of companyand government• Relevance of interventionscloser to true livelihoodneeds• Greater sustainability ofcommunity projects• Meeting compliancerequirements for socialmanagement• Improved capability,resources, etc. to deliverdevelopment programs• Direct cost savings inmanaging social issues• Enhanced local reputationand competitiveness• Shareholder and investorconfidence• Improved recruitment,retention and employeeengagementSource: Adapted from Business Partners for Development64 Community Development Toolkit

Partnership Assessment4continuedPurposeTo enable you to assess the developmentcapacities and resources available withinthe region, anticipate future capacity needsand identify any critical gaps. Not allorganizations will be able to enter intopartnerships with all others, so it isimportant to undertake this assessmentbefore entering into any arrangements.The framework can help you to assess theneed for – or success of – capacity-buildinginitiatives to improve regional developmentperformance and partners to work with inachieving those goals. It is used to assess:• existing and future partnership capacityneeds• anticipated benefits of the partnership toyour organization• appropriate programs or projects forpartnership• the sustainability of potential partnerorganizations.When to use this toolDuring exploration and feasibility when youmay not have the resources to implementprograms directly and you need to draw onthe skill set of partners already operating inthe region.During the construction phase, so thatpartnerships will be in place by the timecommunity development plans are madeand operations commence.During operations, when actively planningcommunity development programs, in orderto ascertain what other skills and capacitiesexist locally and avoid duplication of effort.Tri-partite partnerships can also be arequirement under licensing and royaltyconditions in some environments.For closure planning purposes, to ensurethat the partnerships invested in are likely tobe sustainable and to continue to benefit thelocal community after the mine has closed.RELATIONSHIPS TOOLSOver time, an institution may be consideredsustainable if it can fulfil its functions on apermanent basis with decreasing levels ofexternal support – specifically, if it is ableto secure necessary inputs and support,provide a continuing stream of developmentactivities and services that are valued by itsstakeholders, and survive for as long as itis needed.The Strategic Planning Framework (tool 6)should inform the partnership assessment.Community Development Toolkit65

4Partnership AssessmentcontinuedRELATIONSHIPS TOOLSHow to use this toolAnalyze potential partners for suitabilityto team with your organization and forcapacities in community development byusing the partnership assessmentworksheet (see Table 7).STEP 1Review the potential for businesspartnerships for different developmentprojects using Table 7. This analysis shouldbe conducted by theme, not by potentialpartner. A description of the criteria toconsider is provided here:• Financial contribution – will partneringwith a group on this theme supportfinancial contributions that the companywas already intending to make? Or wouldthis be a new investment?• Mandate – is this theme an area wherethe company could be/would be expectedto engage?• Baseline needs – has this theme beenidentified by communities as an area ofconcern or need?• Operational effectiveness – will apartnership around this theme increasethe operational effectiveness of thecommunity investment?• Outreach – who will benefit from apartnership on this theme?• Capacity – what is the capacity to delivera program on this theme? For example,are there existing successful programswhich have been developed to addresssuch a theme in the past within thecountry or region?• Human resources – would a partnershipon this theme bring necessary humanresources to this investment?• Legitimacy – by partnering on this theme,would the company’s contribution gaingreater legitimacy?• Sustainability – by partnering on thistheme, would the company’s contributionbe more sustainable?• Any negative impacts – could there beadverse consequences from partneringon this topic, eg, a sense that the companyis seeking assistance from others forsomething which should be managed andfunded by the company in entirety?66 Community Development Toolkit

Etc.VocationaleducationChildmalnutritionThis would be anew area ofinvestment forCompany X.Programs,e.g. malariaprogrammingCompany X has abudget of $yy tospend on malariaprogramming.Partnering willallow thiscontributionto be matchedby others,expanding theoutreach of theprogram.Company Xoperates in aregion withhigh levels ofendemicmalaria. It is alsobuilding a largewater reservoirwhich maychangethe malariaprevalencewithin hostcommunities.Through thesocial impactassessmentand baselinestudiesfor thecommunities,malariaprogrammingwas identifiedas a key needby thesecommunities.Potentialbenefits frompartnershipFinancialcontributionMandateBaselineneedsTable 7: Partnership assessment worksheetThere is no Company X’sexperience program iswithin designed toCompany X for cater forconducting impactedspraying communities.campaigns, By partneringor community this could beengagement expanded toon malaria a broaderprevention. In geographicthe absence of regiona partnership, transitioning thethe Company program fromwill have to solely socialdevelop a mitigation tolot of new communitymaterial and contribution.hire new staff.OperationaleffectivenessChildChildThere is no Unknown.malnutrition is malnutrition experiencean issue for was not withinthe country, identified as Company X forbut nota principal working onsomething that concern during this theme.the project the baselineimpacts directly studies.or a major issuefor the hostcommunity.OutreachThere is anexisting malariasprayingprogram beingrun in thecountry byexperiencedNGOs, which iswell respectedand supportedby the Ministryof Health.CapacityThere are Additional Existingexisting NGOs resources organisationsworking on this would need to are deemedtheme in the be hired/ legitimatecountry with contracted to actors in thisgood success. manage this field.partnership.These Questionsprograms have may ariseonly been going from role offor 3 years, so Company X inlong term this theme.sustainabilityis unknown.Company Xwould need tohire additionaltrained staffto implementthis programif it wereimplemented bythe company.A partnershipwould avoid thisand couldleverage offexisting skillswithin thecountry.There arepartnershiporganisationswith experiencein thecountry/regionwho havea goodreputation forimplementingmalariaprograms.NGOs havebeen workingon malariaprogrammingin the countryfor a numberof years andreceive supportfrom externalagencies.The chance ofthis beingsustained postCompanysupport is high.None noted.HumanresourcesLegitimacySustainabilityAny negativeimpactsCommunity Development Toolkit67

4Partnership AssessmentcontinuedRELATIONSHIPS TOOLSSTEP 2Based on existing knowledge ofstakeholders, develop a list of all possiblecommunity development partners. Usingyour knowledge of these potential partners,identify their areas of strength and interestsin community development.STEP 3Based on the assessment in step 1, identifythose themes where partnership providesyou with the greatest benefits. Then reflectback on the list developed in step 2 toidentify the best potential partners to deliveron these themes.STEP 4When considering partnerships, it isimportant to understand the motivationof your own company for partnering.The following questions will help you inthis process:• Would the partnership have the supportof key internal stakeholders?• Would there be any internal oppositionto this partnership proposal?• What financial resources are availablefor partnership?• Are staff available to support thepartnership, and for how long?• What technical resources will be available(e.g. accountancy, legal, etc.)?• Is there agreement within your companyon the purpose and expected outcomesof the partnership?• Is there agreement on how to proceedwith partnership planning?• Do your colleagues and managersunderstand the resources and timethat will be required to develop andimplement the partnership?68 Community Development Toolkit

Partnership Assessment4continuedSTEP 5Using the narrowed options for potentialpartners (based on analysis in step 3),conduct a strengths, weaknesses,opportunities and threats (SWOT) analysisinternally for each potential partnership.This analysis will help you understand thevalue proposition for each partner in thepartnership and help to ensure your futurediscussions address their needs andconcerns as well. Table 8 should becompleted for each potential partnership(this table assumes a tri-partite partnership,but a two-way partnership could just aseasily be analysed).STEP 6If you feel the company is ready for apartnership based on your assessment instep 4, approach potential partners (drawnfrom your list in step 3) with a view toreaching broad-level agreement to exploreways of addressing priority developmentinitiatives through partnership. The SWOTanalysis you will have completed in step 5should make these conversations mutuallybeneficial. To do this you may need to assignresponsibilities and timelines for thefollowing discussions to occur with each ofthe potential partners (see Table 9).RELATIONSHIPS TOOLSTable 8: SWOT analysisFor each partnership consider:Partner Company Government body NGO/CBOStrengthsWeaknessesOpportunitiesThreatsTable 9: Partnership action listAction Responsibility DeadlineEstablish communications with potentialpartners.Validate, with external stakeholders,assumptions in your internal assessment.Explore possible roles and resourcecommitments of prospective partners.Assess potential partners’ capacity tocontribute and maintain support for thepartnership.Community Development Toolkit69

CASE STUDYStrengthening community engagement following mine expansionVale, Minas Gerais, BrazilRELATIONSHIPS TOOLSSummaryThe expansion of Vale’s Brucutu mine in Brazil’s Minas Gerais State brought with it a rangeof significant social and economic impacts. While the expansion was well handled from atechnical perspective, failure to adequately manage these social and economic impacts –particularly relating to the large influx of work-seekers during the construction phase – ledto resentment against the company. A collaborative action plan was developed for two ofthe most directly affected cities, resulting in stronger relations between the company andlocal stakeholders.Context and challengePrior to the mine’s arrival, the economy of São Gonçalo do Rio Abaixo was primarilyagricultural, with limited industrial infrastructure. When the mine began production, thecity’s population expanded significantly, schools were refurbished and other civic works wereundertaken such as the opening of a new cultural centre and the construction of a universitycampus. Neighbouring city Barão de Cocais also received a range of benefits from thepresence of the mine, such as the creation of new jobs, technical training and hiring of youngpeople. Additionally, development of local trade and the installation of a large automotivedealership (a supplier of Vale that moved to the city) were fostered by the company.However, when the mine expanded there were a number of challenges that quickly led todeteriorating relations between the mine, local authorities and local communities. The mostsignificant impacts related to the 6,000 men who arrived in Barão de Cocais to work on theconstruction of the project. Most of these men were lodged in the city and the suddenincrease in population, although temporary, brought real challenges to the city’sinfrastructure. For example, the motel in the city was adapted to house the workers andgarages became dormitories. The population increase resulted in problems relating tohealth, transportation and safety services. The lack of dialogue between Vale (and itscontractors) and the community increased difficulties.ResponseThe company commissioned an economic impact study that provided a clearer picture ofwhat had happened in the region. Using the study as a basis, the company decided toprepare an “investment plan” to support growth in Barão de Cocais. Meanwhile, during theplanning process, the company realized that many of the suggested solutions involvedinvesting in dialogue rather than large expenditures in infrastructure. This change incompany attitude began with a process of raising employee awareness. A dedicated teamwas appointed to maintain a public dialogue with the community. This team took part indeveloping “joint solution groups”, comprising company representatives, local citizens andauthorities. The groups debated the difficulties the cities were experiencing and soughtviable solutions for the existing social impacts in the city.Vale took responsibility for the overall impact resulting from the company’s arrival andoperations. Several specialized studies were conducted to assess each issue arising in themeetings. Traffic problems caused by the increase in the number of vehicles from thecompany, for example, were mitigated with the help of outside consultants. These expertssuggested actions such as switching the right of way of certain streets, relocating bus stopsfrom certain points and changing the route used by trucks. The changes were implementedwith funding from Vale.70 Community Development Toolkit➜

CASE STUDY continuedStrengthening community engagement following mine expansionVale, Minas Gerais, BrazilVale also worked with communities and authorities to help develop responses to problemsthat predated the mine’s arrival. For example, another study indicated that difficultiesexperienced in the local hospital pre-existed the mine’s arrival, and suggested solutionsthat needed to be adopted by the local government.OutcomesThe company states that as a result of the Brucutu experience, it has changed the way itrelates to communities, stating that it is now “committed to open dialogue, transparencyand the search for joint solutions”. As an example of this new attitude, Vale points out thatthe design of construction of a tailings dam was changed in order to respond to localcommunity concerns. In particular, the company reduced the number of houses thatneeded to be relocated, and put back the proposed date of the flooding of a local churchin order to allow sufficient time to make a contingency plan in consultation with thecommunity.RELATIONSHIPS TOOLSSource: “Conversation is the key to understanding”, case study in Vale’s Sustainability Report, 2007.Community Development Toolkit71

4Partnership AssessmentcontinuedRELATIONSHIPS TOOLSKey referencesICMM, Making Mining Count in Peru, Ghana and Tanzania: Case Studies, 2010.Three separate reports. Available at:www.icmm.com/mpd/partnershipsICMM, Mapping In-Country Partnerships, 2010. Available at:www.icmm.com/mpd/partnershipsInternational Business Leaders Forum/World Business Council for Sustainable Development,A Business Guide to Development Actors. Available at:www.wbcsd.org/pages/edocument/edocumentdetails.aspx?id=102&nosearchcontextkey=trueODI/Business Partners for Development, Training Modules: Tri-Sector Partnerships forManaging Social Issues in the Extractive Industries, 2001, Working Paper 7. Available at:www.odi.org.uk/work/projects/98-02-bpd-natural-resources-cluster/html/pub_working.html#World Bank, Sharing Mining Benefits in Developing Countries: The Experience withFoundations, Trusts and Funds, Extractive Industries for Development Series,Washington DC, 2011. Available at:http://web.worldbank.org/WBSITE/EXTERNAL/TOPICS/EXTOGMC/0,,contentMDK:22950635~pagePK:210058~piPK:210062~theSitePK:336930,00.html72 Community Development Toolkit

Grievance Mechanism 275DescriptionA grievance mechanism is a means by whichcommunity members or other stakeholderscan express concerns in the form of acomplaint or grievance about real orperceived actions by your project that causethem concern. The importance of effectivenon-judicial complaint mechanisms as ameans of redress in the event of disputesbetween companies and communities (orallegations that human rights have not beenupheld) is the third pillar of the UN’s“Protect, Respect and Remedy” framework.Developing robust complaint procedures forlocal community members helps underpinthe credibility of corporate human rightspolicies and ethical and community relationspractices more broadly. Most companiesdevelop a grievance form for complainantsto use and a grievance managementprocedure to ensure that grievances aredealt with in a clear and methodical manner. 28The parameters that need to be coveredby a non-judicial grievance mechanismhave been defined by the UN Office of theHigh Commissioner for Human Rights, inThe Guiding Principles on Business andHuman Rights: Implementing the UnitedNations “Protect, Respect and Remedy”Framework. 29 The key elements pertinent toyour business are summarized in Box 2.PurposeTo give your stakeholders an avenue to raiseconcerns and complaints about your project.In recent years, international organizationsand companies have realized this is animportant part of good community relations.All too often, companies are working hardat implementing what they believe to bebeneficial community development projectswithout realizing that certain parts of thecommunity may be unhappy with someaspects of their activities. Often, the activitiesthat are causing concern are independentof the community development program,but to the community beneficiaries they areall being undertaken by the same company.By instituting a grievance procedure,stakeholders can formally voice theirconcerns, providing a valuable feedback loopto help you learn about the effectivenessof your suite of activities. If complaintsprocedures or mechanisms are welldesigned, they are likely to bring significantbenefits to you and your communities.RELATIONSHIPS TOOLS27 For more detailed information on overarching design principles and designing a complaints or grievancemechanism, see ICMM, Human Rights in the Mining and Metals Industry: Handling and Resolving Local LevelConcerns and Grievances, Pilot Testing Version, 2009. Available at:www.icmm.com/page/15816/human-rights-in-the-mining-metals-sector-handling-and-resolving-local-level-concerns-grievances28 There is much discussion about the nuances of the various terms such as grievance, complaint, mechanism andprocedure. Companies may choose not to label their processes as a “mechanism” and may prefer terms suchas complaints “procedures”. In practical terms there is little distinction, so they are used interchangeably in thistool.29 Available at: www.ohchr.org/Documents/Publications/GuidingPrinciplesBusinessHR_EN.pdfCommunity Development Toolkit73

5Grievance MechanismcontinuedRELATIONSHIPS TOOLSBox 2: Effectiveness criteria for non-judicial grievance mechanisms 30In order to ensure their effectiveness, non-judicial grievance mechanisms, both statebased and non-state based, should be:• legitimate: enabling trust from the stakeholder groups for whose use they areintended, and being accountable for the fair conduct of grievance processes• accessible: being known to all stakeholder groups for whose use they are intended,and providing adequate assistance for those who may face particular barriers toaccess• predictable: providing a clear and known procedure with an indicative time frame foreach stage, and clarity on the types of process and outcome available and means ofmonitoring implementation• equitable: seeking to ensure that aggrieved parties have reasonable access tosources of information, advice and expertise necessary to engage in a grievanceprocess on fair, informed and respectful terms• transparent: keeping parties to a grievance informed about its progress, andproviding sufficient information about the mechanism’s performance to buildconfidence in its effectiveness and meet any public interest at stake• rights-compatible: ensuring that outcomes and remedies accord with internationallyrecognized human rights• a source of continuous learning: drawing on relevant measures to identify lessons forimproving the mechanism and preventing future grievances and harms.Operational-level mechanisms should also be:• based on engagement and dialogue: consulting the stakeholder groups for whoseuse they are intended on their design and performance, and focusing on dialogue asthe means to address and resolve grievances.30 www.business-humanrights.org/SpecialRepPortal/Home74 Community Development Toolkit

Grievance Mechanism5continuedIn addition to serving as a platform to resolvegrievances, an effective grievance mechanismcan help achieve the following goals:• open channels for effective communication• demonstrate that a company is concernedabout community members and theirwell-being• mitigate or prevent adverse impacts oncommunities caused by company operations• improve trust and respect• provide structures for raising, addressingand resolving issues that reduceimbalances in power• promote productive relationships• build community acceptance of acompany’s “social license” to operate. 31It should be made clear to communities thatthe existence of a mechanism does not inany way inhibit their access to legal orjudicial recourse processes. In somecountries, legal systems may be seen to beinadequate or beyond the financial reach ofcommunities, which is why their attentionoften focuses on corporate mechanisms.Complainants should be free to pursue legalor judicial processes at any stage if they feeltheir concerns are not being adequatelyaddressed by the mechanism.The IFC and ICMM have both producedvaluable handbooks on this topic in the lastcouple of years (see key references sectionof this tool). It would be worthwhile readingthese reference documents when preparingyour company’s grievance mechanism.This tool sets out the practical stepsinvolved in establishing a grievancemechanism rather than rehearsing thedetailed discussions contained in the farmore extensive manuals.When to use this toolThis tool should be used whenever acomplaint is received from a communitymember, whether oral or written. In somecases, a minor verbal complaint from acommunity member may be able to beresolved swiftly and informally. All complaintsor grievances should be recorded so thatthe formal mechanism can be engaged. Anygrievance mechanism needs to be culturallyappropriate, allowing for complaints in alanguage and form sensitive to local needs.If a complaint is received in writing, theprocedure can commence immediately.There may be a reason for designing amechanism that allows for verbal complaints(e.g. a lack of literacy among somecommunity members). If an oral complaintis made, the company should be receptiveto any concerns and register them officiallyon the company’s grievance form, and thenthe grievance procedure can commence.It is important to create an organizationalstructure and mindset to support themechanism. This organizational structuremust include the involvement of staff withthe power to resolve grievances on behalfof the company, with seniority that reflectsthe level of severity of the complaint.Community relations officers (CROs) play avital role in informing community membersabout the grievance mechanism and inrelaying complaints to the company but it isnot always their responsibility to solve allthe problems.RELATIONSHIPS TOOLS31 From the CAO, World Bank Group, A Guide to Designing and Implementing Grievance Mechanisms forDevelopment Projects, 2008, p. 11.Community Development Toolkit75

5Grievance MechanismcontinuedRELATIONSHIPS TOOLSHow to use this toolBy designing a grievance mechanism in atransparent and participatory manner withthe community you are likely to increasebuy-in and understanding of the mechanism.You need to consider issues of accessibility,especially ensuring that vulnerable or lessvisible members of the community haverecourse to the procedure. Regardless of theexact method, it is important to define aclear process involving regular updates forcomplainants. One method is shown in theprocedure flowchart (see Figure 4). The sevenpotential steps are summarized as follows:STEP 1Receive grievanceThe staff member receiving the grievance isresponsible for documenting and recordingthe grievance and ensuring that it is enteredinto the stakeholder engagement databaseor complaints log.STEP 2Preliminary assessmentAn initial assessment of the grievance shouldbe conducted to assign the grievance to therelevant person in the company. Grievancesmay be classified into a number of categories,such as environmental, cultural heritage,land disturbance, recruitment procedures,health and safety, human rights, physicalor economic displacement or related to aspecific community development project.For each of these categories, a differentperson within the company would beassigned to deal with the specific details ofinvestigating the grievance.STEP 3Respond to grievanceWritten communication to the complainantto acknowledge the grievance and provideinformation as to expected steps andtiming for resolution of the grievance.This communication is to be provided withina set period of time, typically seven workingdays of the receipt of the grievance.Where illiteracy is common, considerationmust be given to the means ofcommunicating this message.STEP 4Investigate and resolveThis procedure investigates the underlyingcause(s) of the grievance and developsactions needed to prevent recurrence of asimilar grievance. The approach and teammembership to complete the investigationwill depend upon the category and level ofthe grievance. Some investigations mayrequire a simple examination of thecompany’s records, whereas others mayrequire discussions with many stakeholders,both internal and external.A grievance resolution report should becompleted no later than one month fromthe start of the grievance investigation,which begins on the date the grievancewas entered in the consultation database(this obviously depends on the nature of thegrievance, but this time frame should beaimed for). The community relations (CR)manager shall co-ordinate conflict resolutionactivities required to contain and resolveactual or potential conflicts and ensure thatthe complainant is kept informed of theprogress of the grievance procedure,especially if a longer period of time isneeded to complete the investigation.76 Community Development Toolkit

Grievance Mechanism5continuedSTEP 5ConclusionThe CR manager shall follow theinvestigation procedure in order to developrecommendations to ensure the grievancedoes not reoccur. The aggrieved partiesshall be engaged and their views about thecompany recommendations sought, toensure that they are satisfied with theproposed resolution. If the complainant issatisfied, then the CR manager shall seektheir sign-off that the grievance has beenresolved.STEP 6Further actionIf the complainant is not satisfied with theproposed solution, the CRO and/or CRmanager will initiate further investigationto determine what further action may betaken. In the case that satisfaction cannotbe achieved, then the grievance may bereferred for third party mediation orexternal panel review.STEP 7Monitoring and evaluationPart of the grievance managementprocedure is entering the details and eachstep of progress into the company’sstakeholder engagement database (seetool 15 Management Systems). At variousintervals, monthly is ideal, the number ofgrievances received, resolved andoutstanding should be tallied and reportedto management and advisers. At leastannually, the trends and time taken forgrievance resolution should be analysedand the evaluation used for assessing theefficacy of the grievance mechanisms.If the procedure is not managing to resolvethe majority of grievances within the settime frames, then the mechanism may needadjusting. Likewise, if no grievances arebeing received, then the system is likelyeither inaccessible to stakeholders or isnot trusted and needs to be revised.Better indicators of success are thatresolution is received to the satisfaction ofboth parties within the agreed amount oftime specified in the procedure on a majorityof cases and that there are not recurringcomplaints about the same issues.RELATIONSHIPS TOOLSCommunity Development Toolkit77

5Grievance MechanismcontinuedRELATIONSHIPS TOOLSFigure 4: Grievance procedure flowchartSTEP 1• Engage community member and receive grievance• Record the grievance and enter it into the database• TIP: Ensure mechanism is accessible and promote external awarenessof it, allow for different ways of making complaints and adapt these to localculture, log and document all complaints carefullySTEP 2STEP 3• Preliminary assessment – categorize the complaint – environment, cultural,employment, human rights, health and safety, etc.• Assign the grievance to the relevant officer• TIP: Keep potential scope of issues broad, ensure internal support andaccountability for the mechanism• Respond to the complaint – write or communicate verbally to the complainant• Explain the process and timeline of the grievance procedure• TIP: Define a clear process for resolving the complaints involving regularupdates to the complainantSTEP 4• Investigate the grievance using an appropriate team and required information• Devise a resolution process and record the results• TIP: Involve communities and/or respected third parties where possible inthe design and implementation of the mechanismSTEP 5STEP 6STEP 7• Follow up the resolution process with the aggrieved parties to ensure theirsatisfaction• Seek sign-off from the complainant and file all documents in database• TIP: Seek resolution to concerns and grievances where possible throughdialogue and joint problem solving with the communities• If the complainant is not satisfied, discuss further options• If matter is still unresolved, refer matter to third party mediation or externalreview• TIP: It may be necessary to deepen community or third party engagementto strengthen trust. In some cases setting up an independent forum orprocess, potentially led by third parties, may be necessary• Regularly monitor and evaluate the numbers of grievances received, resolvedand outstanding• Adjust procedure if required• TIP: Internally evaluate how the mechanism is functioning, report externallyon the results of the mechanism78 Community Development Toolkit

CASE STUDYSetting up an independent forum or processCerrejon coal mine in ColombiaAnglo American, BHP Billiton and Xstrata, equal owners of the Cerrejon coal mine inColombia, commissioned in August 2007 an independent “social review” of Cerrejon’spast and current social engagement to provide a credible assessment of the mine’ssocial impact and outstanding concerns. Though not explicitly a complaints or grievanceresolution process, the panel’s recommendations provided insights into the resolutionof a number of legacy issues, notably regarding concerns and grievances over theresettlement of the Tabaco community in 2000–2001.The review was conducted independently of Cerrejon management by a panel of fourinternationally recognized experts in the area of social development, supported by a localconsultancy to undertake fieldwork. The panel consulted extensively at the mine site andwithin local communities, as well as with international stakeholders. The panel’s reportwas published in March 2008 and highlighted a number of areas in which Cerrejon couldenhance its social practices. Cerrejon’s management subsequently produced acomprehensive response to the report as well as an action plan to address its findings.These documents are all publicly available.RELATIONSHIPS TOOLSAmong its recommendations, the panel emphasized the need to address outstandingissues over the resettlement of the Tabaco community. It urged Cerrejon “to facilitatereconciliation between the disparate groups formed by the former inhabitants of thevillage of Tabaco … through a consultative, participatory process”. Taking up therecommendation, Cerrejon appointed the former chair of the review panel to act asindependent facilitator to a series of dialogue meetings with community members fromAugust to December 2008. This led to an agreement setting out a number of commitmentsby Cerrejon, for example to purchase a new plot of land where the Tabaco community willbe reunited.It is as yet too early to evaluate whether the concerns and grievances over the Tabacoresettlement are indeed resolved but the recent agreement marks a significant step.According to Cerrejon, “the comprehensive independent review of our social processeshas been a very constructive experience”.Source: ICMM, Human Rights in the Mining and Metals Industry: Handling and Resolving Local Level Concernsand Grievances, Pilot Testing Version, 2009. Available at:www.icmm.com/page/15816/human-rights-in-the-mining-metals-sector-handling-and-resolving-local-level-concerns-grievancesCommunity Development Toolkit79

5Grievance MechanismcontinuedRELATIONSHIPS TOOLSKey referencesCAO, World Bank Group, A Guide to Designing and Implementing Grievance Mechanisms forDevelopment Projects, Advisory Note, Washington DC, 2008. Available at:www.cao-ombudsman.orgCentre for Social Responsibility in Mining, Mining Industry Perspectives on HandlingCommunity Grievances: Summary and Analysis of Industry Interviews, University ofQueensland, 2009. Available at:www.csrm.uq.edu.au/docs/Mining%20industry%20perspectives%20on%20handling%20community%20grievances.pdfHarvard University, Corporate Social Responsibility Initiative, Rights-Compatible GrievanceMechanisms: A Guidance Tool for Companies and Their Stakeholders, 2008. Available at:www.reports-and-materials.org/Grievance-mechanisms-principles-Jan-2008.pdfICMM, Human Rights in the Mining and Metals Industry: Handling and Resolving Local LevelConcerns and Grievances, Pilot Testing Version, 2009. Available at:www.icmm.comIFC, Addressing Grievances from Project-Affected Communities, Good Practice Note,Washington DC, September 2009. Available at:www.ifc.org/ifcext/sustainability.nsf/content/publications_resettlementUnited Nations Office of the High Commissioner for Human Rights, The Guiding Principleson Business and Human Rights: Implementing the United Nations “Protect, Respect andRemedy” Framework, Geneva, 2011. Available at:www.ohchr.org/Documents/Issues/Business/A-HRC-17-31_AEV.pdfZandvliet, L. and Anderson, M. B., Getting it Right: Making Corporate-Community RelationsWork, Greenleaf Publishing, Sheffield, 2009, especially Chapter 9, pp. 131–134.80 Community Development Toolkit

Planning tools are used forplanning the resources, bothhuman and financial, thatwill be needed to undertakecommunity developmentactivities or to expand oradopt new programsPLANNINGTOOLS

BEING ABLE TO CLEARLYARTICULATE THERESOURCES NEEDED, BOTHHUMAN AND ECONOMIC,FOR IMPLEMENTINGPROGRAMS AND POLICIESIS KEY TO BEING ABLETO PLAN AND MANAGEBUDGETS AND PERSONNEL,FOR BOTH COMMUNITIESAND COMPANIES.Image courtesy of Anglo Peru

Planning toolsTOOL 6Strategic Planning Framework85The process through which you understand why you want tocontribute to community development and define your developmentobjectives, how you plan to achieve them, the resources you willneed and how you will know when you have succeeded. This canbe equally effective for a community planning its developmentfuture as it can be for a company planning its communityinvestment program.TOOL 7TOOL 8Community MappingAn exercise in which local people map out their community’sphysical layout. Designed to start people recognizing that theyare the experts about their own community and to get discussionand co-operation going.Institutional AnalysisAn exercise in evaluating the variety, strength and linkages ofinstitutions within and around a community.9397TOOL 9TOOL 10Development Opportunity RankingTo allow a full range of participants to decide upon prioritydevelopment issues in the community. A workshop processthat enables a broad range of community participants,including women, youth, the elderly and disabled, to define andexplain the development situation in their community.Development opportunity ranking helps community membersdecide which projects to start implementing first, by sortingthem according to priority and feasibility. This is done taking intoaccount the locally available resources, skills and capacities.101Financial Valuation Tool109A process through which companies can plan their sustainableinvestment projects by assessing the extent to which theseprojects could create value and/or provide value protection forthe company. The quality of a sustainability investment determineswhether risks and opportunities are maximized or minimized.As such, quality needs to be accurately assessed as input intofinancial valuation. The Financial Valuation Tool: SustainabilityProgram Quality Framework can be used to assess the quality ofa company’s portfolio of sustainability investments.Community Development Toolkit83

Planning toolscontinuedPLANNING TOOLSGuidance for usingplanning toolsDeciding upon the strategic orientationand core objectives of the communitydevelopment program is an essentialfoundation step, both for companies andcommunities. Ensuring that companypolicies, procedures and informationcollection methods are co-ordinated enablesthe constant monitoring of progress sothat resources can be adjusted as needed.Being able to clearly articulate the resourcesneeded, both human and economic, forimplementing programs and policies is keyto being able to plan and manage budgetsand personnel, for both communities andcompanies. In contrast to the relationshipstools, these planning tools are targeted atcommunity development projects rather thanthe broader mining and metals activities.As mining company staff, you need toensure that the company’s strategic plansare in accord with the needs of surroundingcommunities. You will need systems,policies and procedures in place that ensureco-ordination between all actors andactivities. You need to be able to monitorresource levels for program implementation.You will need to ensure that your team hasthe right skill set to successfully implementcommunity development programs.Government officers, NGO/CBO staff andcommunity members will also likely findthese tools useful. The more involved eachof these groups is in the visioningundertaken by a company, the better theirinterests will be represented in thecompany’s approach. Community membersand NGOs/CBOs can also use the tools toassess what competencies they need inorder to pursue their priority developmentprograms and to actively engage with thecompany and government in monitoring andevaluating their community plans.84 Community Development Toolkit

Strategic Planning6FrameworkDescriptionCommunity development should be anintegral component of mining and metalsactivity from exploration through to closureand beyond. It should be aligned with otherorganizational processes and strategies –including risk and impact assessment,communications and consultation,employment and local business development– concerned with minimizing negativeimpacts to communities, minimizing riskfor the company and maximizingopportunities associated with the operation.The strategic planning framework flowchart(see Figure 5) should be informed by theSocial Baseline Study (tool 11) and will helpyou to clarify your project’s communitydevelopment objectives and to relate thoseobjectives to the broader goals of yourorganization. Although it is essential that acompany plans its community investmentprograms strategically in order to alignthem with business objectives, it can beequally beneficial for a community tomap out its vision, mission statement andstrategic development goals.Strategic planning is the process throughwhich you understand why you want tocontribute to community development: todefine your development objectives, how youplan to achieve those objectives, who you willwork with, the resources you will need andhow you will know when you have succeeded.Initially, you need to conduct strategic planninginternally within your organization. Then youwill need to ascertain local communities’,and local governments’, aspirations andpriorities. Data gathered on the communitysituation in tool 11 should help to define thevision, mission, etc. As you establish closerworking relations with regional stakeholders,and progress towards detailed activityplanning, you will need to share and reviewyour strategic plans in consultation withregional partners to ensure consistency.PurposeTo guide fundamental decisions and actionsthat shape how your community developmentprogram operates. This covers:• preparing the best way to respond tochanging and sometimes hostileenvironments• being clear about your organization’sobjectives and resources, and consciouslyincorporating both into your response to adynamic environment• setting goals (planning a desired future),developing an approach to achieving thosegoals and measuring whether they havebeen achieved.The strategic planning process applies asequence of questions that help you examineexperience, test assumptions, gather andincorporate information about the presentand anticipate the environment in which youwill operate in the future.Strategic planning will lead to a set ofdecisions about what you want to do, whyand how you do it. Naturally, some decisionsand actions are more important than others– much of strategic planning lies in makingthe tough decisions about what is mostimportant to achieving success.PLANNING TOOLSCommunity Development Toolkit85

6Strategic Planning FrameworkcontinuedPLANNING TOOLSWhen to use this toolTo ensure that community projects areresponsive to the needs of the community anddecisions are made to deliver lasting value,this tool should be used before any significantinvestment is made in community projects.This tool should be used as early as possible,when building your community developmentteam (see tool 13 Competencies Assessment).Communities should undertake this process,if they wish to, prior to developing theirCommunity Action Plans (tool 16) usingparticipatory methods. Post-closuresustainability also needs to be taken intoaccount when defining strategies.How to use this toolStrategic planning includes five key elements,discussed below:• a vision statement, defining your objectives,values and principles• a mission statement, describing what youare going to do and why you are going to do it• goals, the results you want to achieve in themedium to long-term• purposes, the means by which you will achieveyour goals and with what resources (inputs)• outputs, the measures to be achieved byimplementing strategies in pursuit of yourdefined objectives.Strategic planning will provide the foundation –as you improve your understanding of yourlocal environment, and explore opportunitiesfor partnership with regional stakeholders – fordetailed program planning. This is where youbegin to address critical management issuesrelated to resource allocation, deadlines,budgets, responsibilities and performance.Program planning is described in detail later inthe toolkit (see tool 16 Community Action Plans)and resourcing issues are discussed furtherin the Management Systems tool (tool 15).STEP 1Develop vision statementYour vision reflects your understanding ofthe ideal conditions for your communityor for the part your project plays in thecommunity, for example how things mightlook if community development wereperfectly addressed and there wereharmonious and mutually supportiverelationships between the mining companyand other sectors of the community. It isbest articulated and communicated througha vision statement.By developing a vision statement, you clarifyyour objectives, values and principles – firstfor yourself, and then for your team andorganization (see Table 10). Vision statementsshould generally be:• easily understood by members of thecommunity and shared by all teammembers• broad enough to include a diverse varietyof perspectives and based on anassessment of what is important to people• inspiring and uplifting to everyone involvedin your effort• easy to communicate – generally shortenough to fit on a T-shirt.Your vision statement should inspire yourpeople to dream. Your mission statementshould inspire them to action.86 Community Development Toolkit

Strategic Planning Framework6continuedSTEP 2Develop mission statementThe mission statement grounds your visionin practical terms. Your mission statementdescribes what you are going to do and whyyou are going to do it. It is similar to a visionstatement, in that it also looks at the bigpicture, but it is more concrete, and moreaction oriented. The mission statement mayidentify broad objectives and indicate inbroad terms how you might reach yourgoals. Mission statements generally are:• concise – while not as short as visionstatements, they still get their point acrossin one sentence• outcome oriented – they explain thefundamental outcomes your organizationis working to achieve• inclusive – while mission statementsdescribe your key goals, they do so in verybroad terms. Good mission statementsare not limiting in the strategies or sectorsof the community that may becomeinvolved in the project.Clearly defined vision and missionstatements are important for a number ofreasons:• they help your organization focus on whatis really important• they let other individuals andorganizations have a snapshot view of whoyou are and what you want to do• they are helpful in having members whoare focused and bound together incommon purpose• they provide a basis for developing theother aspects of your action planningprocess: your objectives, strategies andaction plans.STEP 3State your goalsThe next element is to state your goals – theresults you want to achieve in the mediumto long term. Goals should reflect theexpectations and requirements of all majorstakeholders, and the underlying reasons forestablishing the development initiative.These objectives could cover, for example,co-ordination and service delivery, capacitybuilding and institutional development.STEP 4Develop the process to achieve yourobjectivesDevelop the steps by which your mission,goals, etc. may be achieved. They can coverthe community development program asa whole, including such matters asco-ordination, participation and sustainability,or they can relate to primary matters inkey functional areas such as, for example,health provisions, education, training ofcommunity leaders, etc. Resources (inputs)available and needed to carry out thestrategic functions should be consideredat this stage.STEP 5Define outputsThe outputs are specific interim or ultimatetime-based measurements to be achieved byimplementing strategies in pursuit of yourdefined objectives such as:• to establish a regional developmentpartnership with key stakeholders withinthe next three years• to achieve 100% vaccination in threeyears’ time• to increase school completion rates by20%, etc.PLANNING TOOLSCommunity Development Toolkit87

6Strategic Planning FrameworkcontinuedPLANNING TOOLSOutputs should be quantifiable, consistent,realistic and achievable. They should bebased on the impacts identified in theSocial Impact and OpportunitiesAssessment (tool 12) and thereforegrounded in knowledge gathered throughthe Social Baseline Survey (tool 11).Detailed, program-specific outputs will bedeveloped to align with the goals identifiedby community members when communityaction plans are designed.STEP 6Develop programThe final element is the developmentprogram itself, which sets out theimplementation plans for key strategies.This is described in detail later in the toolkitas the Community Action Plan (tool 16),and covers resources, objectives,timescales, deadlines and budgets.Figure 5: Strategic planning framework flowchartStrategicdirectionGoals• Vision• MissionTool 6 – Strategic Planning Framework• Medium- long-term project objectives (three to five years or longer)Tool 16 – Community Action PlanPurpose• Current program objectives needed to achieve goals (e.g. this year)Tool 9 – Development Opportunity RankingOutputs• Immediate outputs to achieve purpose of the programTool 9 – Development Opportunity RankingInputs• Resources needed to produce outputsTool 13 – Competencies Assessment88 Community Development Toolkit

Strategic Planning Framework6continuedTable 10: Step-by-step process for developing a vision and mission statementStepAction1 Learn what is important topeople in your communityDescriptionKnowing the important issues in your community isvital for the establishment of a strong, effective andenduring development program. Your first step indeveloping your vision and mission is to define theissues that matter most to people in your community.Do so through consultation, surveys or facilitated focusgroups. Identify what is important to the community,and what local people perceive to be the community’sstrengths and problems, and what people wish thecommunity was like. As all of these activities shouldhave been undertaken in the baseline study and SocialImpact and Opportunities Assessment (tools 11 and12), this information may already be available to thecompany.PLANNING TOOLS2 Decide on the generalfocus of your programOnce you have heard what the community has to say,decide the general focus of your program.• What topic is most important to your organization andyour community?• What level will you work at – the village, local area orbroader region?• Is there a niche opportunity for your company toestablish a name for itself in a specific field where areal difference could be made?• Are there groups already working on topics in theregion who your company could partner with?➜Community Development Toolkit89

6Strategic Planning FrameworkcontinuedPLANNING TOOLSTable 10: Step-by-step process for developing a vision and mission Statement continuedStepAction3 Develop your visionstatementDescriptionNow that you have a clearer understanding of what youwant to do and why, you can develop the statementsthat will capture your ideas.Remember, it may require several vision statementsto fully capture the vision of those involved in thecommunity development program: you do not need –or even want – just one “perfect” phrase. Encouragepeople to suggest all of their ideas, and write themdown – possibly on poster paper at the front of theroom, so people can be further inspired by the ideasof others. After you have brainstormed a lot of ideas,your group can discuss critically the different ideas.Often, at times, several of the vision statements willjust jump out at you – someone will suggest it, andpeople will just instantly think, “That’s it!” You can alsoask yourselves the following questions about visionstatements:• Will it draw people to common work?• Does it give hope for a better future?• Will it inspire team members to realize thecommunity’s dreams through positive, effective action?• Does it provide a basis for developing the otheraspects of your action planning process?4 Develop your missionstatementThe process of developing your mission statement ismuch like that for developing your vision statements.Remember, though, that unlike with vision statements,you will want to develop a single mission statement.After having brainstormed for possible statements,you will want to ask of each one:• Does it describe what you will do and why you will do it?• Is it concise (one sentence)?• Is it outcome oriented?• Is it inclusive of the goals and people who may becomeinvolved in the organization?➜90 Community Development Toolkit

Strategic Planning Framework6continuedTable 10: Step-by-step process for developing a vision and mission statement continuedStepAction5 Obtain consensus onyour vision and missionstatementsDescriptionYour next step is to learn what other members of yourorganization or community think of your vision andmission statements before you start to use themregularly. Talk to the same community leaders or focusgroup members you spoke to originally. Ensure thatthey agree that the statements together capture thespirit of what they believe and desire. You might findyou have omitted something very important by mistake.PLANNING TOOLS6 Decide how you will useyour vision and missionstatementsFinally, remember that all of your hard work indeveloping your vision and mission statements willcount for nothing if you do not communicate them andincorporate them in your action planning. The point isto get the message across to your internal and externalstakeholders and fellow community members – and tobegin living your expressed values and goals.Community Development Toolkit91

6Strategic Planning FrameworkcontinuedPLANNING TOOLSKey referencesAusAID, The Logical Framework Approach, 2002. Available at:www.who.int/ncd/vision2020_actionplan/documents/LFAguidelines.pdfDFID, Tools for Development: A Handbook for Those Engaged in Development Activity, 2003.Available at:www.dfid.gov.uk/Documents/publications/toolsfordevelopment.pdfIFC, Strategic Community Investment: A Good Practice Handbook for Companies DoingBusiness in Emerging Markets, Washington DC, June 2010.IFC, Strategic Community Investment: A Quick Guide, Highlights from IFC’s Good PracticeHandbook, Washington DC, February 2010. Both IFC publications available at:www.ifc.org/ifcext/sustainability.nsf/content/publications_handbook_communityinvestment92 Community Development Toolkit

Community Mapping7DescriptionA community map is a visual representationof what the community perceives as itscommunity space. This includes showingthe boundary of the community asunderstood by community members and allthe elements recognized by them as part oftheir area. Most of the spatial informationis obtained through direct observation andfacilitators should familiarize themselveswith the area sufficiently to be able toassist the community in drawing the map.However, it is the community membersthemselves who must decide what does anddoes not go on the map, where items areplaced on the map and how big they shouldbe. Some items of importance to thecommunity, and which they may choose tomark on the map, may not be noticeable tooutsiders – sacred sites or clan boundaries,for example.PurposeTo encourage community members torecognize that they are the experts abouttheir own community and to get discussionand co-operation going. Community mappingcan be used as an ice-breaking exercise inwhich community groups sketch out theircommunity’s physical layout. You mightseparate groups of men and women if thatis appropriate and practical, and draw mapswith different features, which can lead tointeresting discussions about communitydynamics.The objective of this exercise is not toproduce any particular kind of map, butto engage community members, possiblyunused to being involved in planningexercises, in mapping out their owncommunity as they see it and to startanalysing for themselves how theircommunity functions. It is also veryinstructive to the facilitators, company andgovernment people to learn about how thecommunity functions from the inside andto observe community dynamics andcapabilities.PLANNING TOOLSIf the combined community meeting wishesto, they could produce a combinedcommunity map, incorporating featuresfrom all the different small group maps.Community Development Toolkit93

7Community MappingcontinuedPLANNING TOOLSWhen to use this toolAs the first of a series of exercises that maylead up to a community developmentplanning workshop to develop a CommunityAction Plan (see tool 16). A tool like this isalso often used as part of the initial analysisfor a social baseline (see tool 11).How to use this toolGather interested community memberstogether for a community developmentplanning workshop.STEP 1Try to ensure that as many people aspossible feel encouraged and welcometo attend, although no-one should bepressured to join in. Ask them to dividethemselves into groups, which they oftendo along gender lines, and then to drawa map of their community as they see it(see Figure 6). People are often shy andstate that official maps are better than theycan produce. Some may prefer to do roughsketches, in the sand or on rough paper,before committing the drawing to cardboard.Once people realize that they are beingasked to draw their picture of theircommunity, not for someone else’s use,they usually enjoy the process.“A tool like this is alsooften used as part ofthe initial analysis fora social baseline.”94 Community Development Toolkit

Community Mapping7continuedFigure 6: Example of community sketch mapPLANNING TOOLSSource: Training Kit on Participatory Spatial Information Management and Communication,Module 8, Ground and Sketch Mapping. CTA, the Netherlands and IFAD, ItalySee http://pgis-tk.cta.int for further information(Photo. Steward Brown, 2010)Community Development Toolkit95

7Community MappingcontinuedPLANNING TOOLSKey referencesIFC, Investing in People: Sustaining Communities Through Improved Business Practice.A Community Development Resource Guide for Companies. Washington DC, 2001.Available at:www.ifc.org/ifcext/sustainability.nsf/content/publications_resettlementNational Environment Secretariat, Government of Kenya; Clark University; Egerton University;and the Center for International Development and Environment of the World ResourcesInstitute, Participatory Rural Appraisal Handbook: Conducting PRAs in Kenya, December1991.Oduor-Naoh, E. et al. Implementing PRA: A Handbook to Facilitate Participatory RuralAppraisal, Program for International Development, Clark University, Worcester, MA, 1992.Other participatory tools references are listed on p. 47 of the IFC, Stakeholder Engagement:A Good Practice Handbook for Companies Doing Business in Emerging Markets,Washington DC, 2007. Available at:www.ifc.org/ifcext/sustainability.nsf/content/publications_resettlement96 Community Development Toolkit

Institutional Analysis8DescriptionInstitutional analysis is a process fordiscussing what institutions are present inand around a community, how importanteach institution is, how they relate to eachother and who participates in them.Institutions could be schools, churches,mosques, sports teams, fishing or farmingco-operatives, women’s groups, youthgroups, businesses or companies,government offices and a range of otherorganizations.PurposeTo ask community members to describe theinstitutions that exist in their community,their function, how important they are inrelation to other institutions and how centralor peripheral they are to the community’slife. This exercise is immensely useful forassessment and planning purposes becauseit becomes apparent which communityinstitutions are vibrant enough to play anactive role in development activities andwhich may need strengthening. You will findone of the major benefits is that it shouldreveal who the community membersconsider to be influential, not just thosewho appear to be in charge at first glance.PLANNING TOOLSWhen to use this toolAs part of a series of exercises that may leadup to a community development planningworkshop to develop a Community ActionPlan (see tool 16). This should be donewhen community development programs arebeing considered, so that active communityengagement in the planning process canbe encouraged.Community Development Toolkit97

8Institutional AnalysiscontinuedPLANNING TOOLSHow to use this toolThis is best done with a form of Venndiagram, in which different-sized circles ofpaper are used to represent each institution.STEP 1Using pre-prepared paper circles of differentsizes, members of the community choosea circle to represent an institution that isimportant to them. Ask them to explain therole of that institution and why they havechosen a particular size of circle torepresent its relative importance. Differentcommunity members often challenge thesize of circles chosen and lively discussionensues.STEP 2Once all institutions are represented bya circle whose size has been agreedupon, draw a large circle on the groundrepresenting the community and ask thecommunity members to place theinstitutional circles either inside thecircle, outside the circle or straddlingthe boundary, indicating how centraleach institution is to the community (seeFigure 7). The relationship between variousinstitutions may also be described by thedistance between the circles.As with all participatory planning exercises,the institutional analysis may be undertakenby separate groups of women, youth, theelderly, religious or ethnic minorities, andthese separate sessions may revealdifferent power bases within a community.If undertaken in joint session, it is essentialthat the facilitators ensure the opportunityfor all community members to contribute,not just the most vocal.98 Community Development Toolkit

Institutional Analysis8continuedFigure 7: Institutional diagram of an inland fishing village in Wendo Tcham,Guinea-Bissau, 2004Other towns:Marea, Beliand TchetchePLANNING TOOLSVillagecommitteeatTchetcheVillageheadmanat Madinade BoeBusinessmanMamadu Boiat BafataFantamidwifeHealthgroupBantabagroupTribunalat GabuSale of fish at:Beli, Dandu,Madina andTchetcheFishingpermitsat BeliFisheriesgroupFodewomen’sadviserVillagecommitteeWomen’sgroupAlmamereligiousgroupYoungmen’sgroupLeader atSutumacaMunicipalityof BeliSale of fishat: Oretchon,Gabu andTchetcheOretchomtownWise menat Madinade BoeKeyThe villageLinks inside the village and links with governmentorganizations and traders outside the villageSource: Participatory Landing Site Development for Artisanal Fisheries Livelihoods,FAO Fisheries Technical Paper 466, Rome, 2004, Figure 1, page 28.www.fao.org/docrep/007/y5552e/y5552e06.htmCommunity Development Toolkit99

8Institutional AnalysiscontinuedPLANNING TOOLSKey referencesEldis, Livelihoods Connect: Sustainable Livelihoods Toolbox (web-based resources).Section 1 of the toolbox: Policy, institutions and processes. Available at:www.eldis.org/go/topics/dossiers/livelihoods-connect/toolsIFC, Strategic Community Investment: A Good Practice Handbook for Companies DoingBusiness in Emerging Markets, Washington DC, June 2010 (see tool 3). Available at:www.ifc.org/ifcext/sustainability.nsf/content/publications_handbook_communityinvestmentOther participatory tools references are listed on p. 47 of the IFC, Stakeholder Engagement:A Good Practice Handbook for Companies Doing Business in Emerging Markets,Washington DC, 2007. Available at:www.ifc.org/ifcext/sustainability.nsf/content/publications_resettlement100 Community Development Toolkit

Development Opportunity9RankingDescriptionThe Development Opportunity Ranking toolcombines assessment and planningprocesses. Community members identifytheir major development priorities orconcerns and then assess the bestopportunities for achieving desired changes.The meetings needed to undertake this twostepprocess may stretch over severalsessions, depending upon the time availableto participants and how much discussion andresearch they might like to pursue betweenworkshop sessions.This tool requires a facilitator to encouragecommunity members to think broadly aboutpotential development opportunities,perhaps introducing ideas by describingprograms they have seen elsewhere(although they need to be careful not toimpose their own ideas upon the community).This is best undertaken in a small groupsetting, conducted in the community orvillage where stakeholders live. It shouldbegin with a non-threatening, focuseddiscussion that uses small group dynamicsto produce a complete and ranked census ofthe development opportunities identified byindividual households and the communityas a whole.A list of potential opportunities to addresseach development challenge should bedrawn up from community discussions,taking into consideration the community’scapacity to address these challengesthemselves. Each opportunity should thenbe ranked for its suitability as a solutionusing an agreed set of criteria, many ofwhich are tried and tested. The beauty ofthis process is that opportunities thatrequire little outside input or finance oftenscore higher than those dependent onassistance. This can be enlightening for acommunity by helping them realize thepower of self-management. This prioritizationof opportunities can allow communities tostart work on some of the “easier” options,while you may look into how your projectcould support the more complex orresource-intensive options.PLANNING TOOLSCommunity Development Toolkit101

9Development Opportunity RankingcontinuedPLANNING TOOLSPurposeFor community members to articulate thedevelopment situation in their community,to discuss it as a community and then tocollectively decide upon developmentpriorities to be tackled. It is not intendedto elicit a “laundry list” of problems andrequests, but rather to encourage peopleto consider how they would like to improvetheir lives and how they might go aboutmaking the desired changes, with thesupport of other parties, such as yourproject, the government and NGOs. This canbe coupled with the asset-based communitydevelopment approach (ABCD), 32 which askscommunity members to identify all theirassets (be they physical, mental, spiritual,financial, etc.) that can be used to supportthe achievement of development outcomesin their own community.Once the options are agreed, this tool willhelp community members and otherdevelopment partners decide which projectsto start implementing first. A scoring systemis used for ranking the opportunities againstagreed sustainability criteria, such as costand the need for external expertise andfinance. While a score may be compellingwith your colleagues, you need to rememberthat community feelings about opportunitiesare more important than any so-calledobjective score.When to use this toolAs part of a series of exercises that maylead up to community development planningworkshops to develop a Community ActionPlan (see tool 16). This should be donewhen community development programs arebeing considered, so that active communityengagement in the planning process canbe encouraged.How to use this toolThis exercise is usually done in a communityworkshop (which may be a series ofmeetings, and may be run in several smallergroupings of community members, as theyprefer) and led by experienced facilitators,who may come from the community, fromNGOs, from local government agenciesor be consultants hired by your company.Facilitators should not lead the discussionin any particular direction, other than toexplain the process and to prompt thoughtsand discussion. This approach provides thesetting in which all participants cancontribute. No topic is rejected. All issuesare considered. Community members arethe only contributors, although they maycall for suggestions and ideas from thefacilitators or other observers, includingyou. The final ranking of developmentopportunities is to be decided upon andowned by the community participants.32 Coady International Institute, From Clients to Citizens: Asset-Based Community Development as a Strategy forCommunity-Driven Development, 2002. Available at: www.abcdinstitute.org/publications/related102 Community Development Toolkit

Development Opportunity Ranking9continuedSTEP 1Initiate meeting with community leadersThe facilitator will make initial contact withvillages or communities – ideally, this wouldbe someone known to the community.Discussions with the village leader, eldersor key individuals in each community,including women and youth, will evaluateinterest and capacity of each community toparticipate in community developmentplanning activities. If there is interest andsufficient labour, resource and financialcapacity to effectively participate in activities,plans would be made to conduct adevelopment opportunity ranking exercisewith that community.The facilitator needs to emphasize theimportance of inclusion of men and women,youth and the elderly from the outset ofdiscussions and ensure that representativesof these different groups are included inplanning the meeting.STEP 2Development opportunity identification(small groups)Development opportunity ranking beginswith the coming together of the community.If segregation is preferred, ask men andwomen to meet in separate locations.The facilitator introduces and explains theprocess and, with other members of theteam, facilitates the meeting. Questions thatcan be asked include:• What is most important for the future ofyour family?• What are the priority development needsfor your community?It is ideal if individuals and families answer,or at least consider, these questions forthemselves first, before the village view isagreed through discussion. If individualsare comfortable completing this task, thefacilitator should assemble them intosmall groups of up to 10 people – althoughsix or less is ideal. Each group will be askedto discuss the development opportunitiesidentified by individual participants. Thegroup is asked to reach consensus on thepriority development opportunities theycollectively consider important at the villageor community level. They record thisconsensus outcome on a large piece ofpaper, ready for presentation to otherparticipants.STEP 3Community level development opportunityconsensusThe consensus from each small group willbe shared with the other participants in aplenary session. These developmentopportunity priorities should be recorded bythe facilitator. Participants then regard thelists of opportunities from small groups andcollectively prioritize them for the village orcommunity. Consensus is sought on the topfive or ten (to be decided by the community)development priorities.PLANNING TOOLSCommunity Development Toolkit103

Development Opportunity Ranking9continuedPLANNING TOOLSSTEP 4Development opportunity rankingAt the conclusion of step 3 the communitywill have a list of projects or opportunitiesthey would like to pursue, possiblyaddressing the same development topic, or avaried group. Not all of these opportunitieswill be able to be addressed by you, or thecommunity themselves, in the short,medium or long term. To inform the rankingof these opportunities, it is best to develop aset of agreed criteria to use to assess theopportunities for each development theme.Commonly used criteria for rankingopportunities are:• Sustainability – can the community keepthe project running by itself, after outsideassistance has gone?• Productivity – will the project substantiallyincrease the availability of neededresources?• Equitability – will the project benefit abroad cross-section of the community?• Cost – will large amounts of externalfunding be needed?• Community contribution – will thecommunity be able and willing tocontribute to the project (normallythrough an in-kind contribution)?• Technical feasibility – does the projectrequire specialized expertise both to startand maintain?• Social/cultural acceptability – does theproject fit within the community’s norms?• Time needed – will it take a long time forthe community to reap the benefits of theproject?Considering each development projectagainst these criteria can help you work withthe community to develop a communitydevelopment plan. In Table 11, communitymembers have identified a significantdevelopment opportunity (improved accessto water), defined an objective (increasedwater availability) and assessed four options(boreholes, roof catchment, shallow wellsand surface dams) for achieving theobjective. In this instance, the action planwould focus on roof catchment options forthe community, as that was assessed as thenumber one option.104 Community Development Toolkit

Table 11: Participatory assessment of water optionsCriteria/ option Sustainability Productivity Equitability Feasibility Social/cultural CommunitycontributionCost Time Points RankBoreholes 1 3 1 0 2 1 1 2 11 4Roof catchment 3 2 3 2 2 2 3 2 19 1Shallow wells 2 2 2 1 2 2 2 2 15 2Surface dams 1 2 1 2 2 1 2 1 12 3Key 0 – Nil 1 – Low 2 – Average 3 – HighCommunity Development Toolkit105

Development Opportunity Ranking9continuedPLANNING TOOLSSTEP 5Identifying overlapping regional frameworksof interest – follow-up sessionFor the development of an overallcommunity development plan, in which you,the community and other developmentpartners (government, NGOs, developmentagencies, etc) agree upon an integratedprogram of development activities for afuture period of time, perhaps one year orseveral, all parties need to decide upontheir relative frameworks of interest (seeTable 12 and Figure 8). For communities,this will be the priority developmentareas/needs identified as part of theprevious exercise.As a company, you will usually decideinternally which programs in the communitydevelopment sphere are priority issues forsocial investment. The results of theSocial Impact and Opportunities Assessment(tool 12) should help the company to makethese decisions and where this processpredates the social impact and opportunitiesassessment, you can draw upon thestrategic planning framework developed intool 6. Governments will normally alreadyhave local or regional development plansthat list their priority developmentprograms. Many NGOs and CBOs focus onspecific areas and will therefore prioritizeprograms in their field of interest. For allparties, then, an overlapping framework ofinterest can be identified in a joint meeting.Other development priorities identified bythe community, which do not happen tooverlap with the frameworks of interest ofany of the other parties, can still be priorityissues for the community to solve, but theymay need to seek alternative sources ofsupport or act independently.Table 12: Steps in identifying overlapping regional frameworks of interestStepAction1 Community framework ofinterest2 Introduce regionalstakeholders’ frameworksof interest3 Identify overlappingframeworks of interestDescriptionThe top priority development opportunities identified bythe community during step 4 represent the communityframework of interest.The facilitator now introduces senior miningcompany/government/NGO leaders to present theirrespective frameworks of interest.The facilitator compares the community and otherframeworks of interest. Overlapping interests areidentified and, ideally, several will be chosen to bedeveloped as Community Action Plans (tool 16).106 Community Development Toolkit

Development Opportunity Ranking9continuedFigure 8: Example of overlapping frameworks of interestCommunity interests:• income• training• infrastructure• sustainable developmentCompany interests:• social licence to operate• enhanced reputation – developerof choice• continuity of production• employer of choicePLANNING TOOLSOverlapping framework of interests:• employment at mine• small business training and operation• transport operator training and operation• machinery maintenance and supply• primary produce supplies• uniform and clothing tailoring supplyGovernment interests:• revenue• education• health• roadsNGO/CBO interests:• SME building• microfinance• capacity-building trainingCommunity Development Toolkit107

9Development Opportunity RankingcontinuedPLANNING TOOLSKey referencesAusAID, The Logical Framework Approach, 2002. Available at:www.who.int/ncd/vision2020_actionplan/documents/LFAguidelines.pdfDFID, Tools for Development: A Handbook for Those Engaged in Development Activity, 2003,Chapter 3: Problem and situational analysis. Available at:www.dfid.gov.uk/Documents/publications/toolsfordevelopment.pdfIFC, Strategic Community Investment: A Quick Guide, Highlights from IFC’s Good PracticeHandbook, Washington DC, February 2010. See p. 22 in particular. Available at:www.ifc.org/ifcext/sustainability.nsf/content/publications_handbook_communityinvestmentKumar, S., Methods for Community Participation: A Complete Guide for Practitioners,ITDG, London, 2002.National Environment Secretariat, Government of Kenya; Clark University; Egerton University;and the Center for International Development and Environment of the World ResourcesInstitute, Participatory Rural Appraisal Handbook: Conducting PRAs in Kenya, Kenya, 1991.Rietbergen-McCracken, J and Narayan, D. (compilers), Participation and Social Assessment:Tools and Techniques, International Bank for Reconstruction and Development/World Bank,Washington, DC, 1998.World Bank, The World Bank Participation Sourcebook, Washington DC, 1996,Appendix 1: Methods and tools for social analysis, pp. 199–202.Other participatory tools references are listed on p. 47 of the IFC, Stakeholder Engagement:A Good Practice Handbook for Companies Doing Business in Emerging Markets,Washington DC, 2007. Available at:www.ifc.org/ifcext/sustainability.nsf/content/publications_resettlement108 Community Development Toolkit

Financial Valuation Tool10Sustainability Program Quality FrameworkDescriptionSustainability investments can createbenefits to the local communities as well ascreate significant business value forcompanies. However, the amount of moneyinvested in these programs does notnecessarily correlate with the results acompany is aiming to achieve. Sometimessustainability investments are not plannedand designed based on input from affectedcommunities and other relevantstakeholders. Instead of creating socialcapital and improving corporate communityrelations, these community investmentprograms may contribute to decreasing trustand intensifying tensions with affectedcommunities. For that reason, the qualityand effectiveness of community investmentsare important factors in the company’sstrategy to achieve and monitor itssustainability goals and to make a positiveimpact on local development. It is clear thatthe quality of a sustainability investmentdetermines whether risks and opportunitiesare maximized or minimized. Accurateassessment of the quality and effectivenessof programs is critical for pinpointing therange of value generated by environmental,social and governance (ESG) investmentsand enables companies to effectively planwhat programs they should invest in.PurposeTo enable corporate social responsibility(CSR) and community relations’professionals plan, design, monitor andevaluate the quality and effectiveness ofa company’s social, economic andenvironmental investments.When to use this toolThough this tool can be used at themonitoring and evaluation stage of a projectfor managers to periodically assess theeffectiveness of each investment in asustainability portfolio, it is also useful atthe planning stage, enabling companies todirect investment effectively.PLANNING TOOLSIn order to reduce the subjectivity of ratingthe effectiveness of sustainabilityinvestments, the Sustainability ProgramQuality Framework (Quality Framework)was developed by the IFC and Deloitte, withsupport from ICMM, to assess the qualityof a company’s portfolio of sustainabilityinvestments.Community Development Toolkit109

10Financial Valuation ToolSustainability Program Quality FrameworkcontinuedPLANNING TOOLSHow to use this toolSTEP 1Complete the self-assessment questionnaire(Table 13). This questionnaire consistsof two sections to assess the quality andeffectiveness of sustainability investments,i.e. “how to” design, plan, implement andmonitor a program, but not on “what”should be the program.Section 1: Sustainability programmanagementThis section assesses the generalmanagement practices of thesustainability/community program at thespecific operational site. The sectionconsists of 10 questions that cover topicsapplicable to the entire sustainabilityportfolio of initiatives.Section 2: Individual sustainabilityinitiativeIn this section, 11 additional questionsare considered in relation to each specificsustainability initiative/investment.This series of questions assesses eachinitiative/investment individually.To successfully implement the selfassessmentquestionnaire and receive ascore that realistically reflects the qualityand effectiveness of sustainability initiatives,it is of crucial importance that users haveevidence supporting their answers.For each question, the range of possibleanswers is:Possible answers1 – Do not agree2 – Somewhat agree3 – Agree4 – Strongly agree0 – Not applicable/do not knowYou need to answer Section 1 of thequestionnaire by carefully reading thestatement and choosing the answer thatbest describes your company’s approachbased on the possible answers listed above.Keep in mind the management practices ofthe entire sustainability program at theselected operational site.STEP 2Answer Section 2 separately for eachindividual sustainability initiative (e.g.workforce development, local suppliersdevelopment, community development).To increase objectivity of the assessment,different grades of CSR staff shouldapply sections of the self-assessmentquestionnaire. For example, CSR managerlevelstaff may answer Section 1(Sustainability program management),while staff responsible for management ofeach sustainability initiative may answerSection 2 (Individual sustainability initiative).110 Community Development Toolkit

Not applicable/do not know➜Table 13: Self-assessment questionnaireSection 1: Sustainability program management Do not agree SomewhatagreeAssessment and planning1. The company has undertaken a scoping assessment and identifiedkey social and environmental issues, risks and opportunitiesrelated to the project.2. The company has identified key stakeholder groups andundertaken initial consultations to identify the key issues.3. Social and environmental impact assessment, social baselinestudies and stakeholder consultation results are used to determinethe portfolio of sustainability initiatives.4. Ethical practices mechanisms, anti-corruption measures andhuman rights considerations are factored into the portfolio ofsustainability initiatives.Stakeholder engagement and communication5. Vulnerable groups, as identified by stakeholder analysis(e.g. women, youth, elderly, disabled, Indigenous Peoples, poor,marginalized groups and minorities), are included in thestakeholder engagement process, and their input is incorporatedinto the design of the sustainability initiative portfolio.6. The company has a grievance mechanism in place, which is beingused and perceived by communities as trustworthy and culturallysensitive to their ways of resolving problems.7. The company regularly informs, consults, negotiates and partnerswith local stakeholders throughout the life of the project.Agree StronglyagreeCommunity Development Toolkit111

No applicable/do not know➜Table 13: Self-assessment questionnaire continuedSection 1: Sustainability program management Do not agree SomewhatagreeImplementation, monitoring and evaluation8. The portfolio of sustainability initiatives includes formal qualityassurance mechanisms, relying on internal audit(s), and/or thirdparty audit(s), that are local and independent.9. Company management’s performance evaluations and incentivesare aligned with the goals and objectives of the portfolio ofsustainability initiatives.10. There is a clear strategy for the continuation of sustainabilityinitiatives after project closure (accountability, capacity andorganizational and funding structures in place), which isunderstood by all stakeholders.Agree Stronglyagree112 Community Development Toolkit

Not applicable/do not know➜Table 13: Self-assessment questionnaire continuedSection 2: Individual sustainability initiative Do not agree SomewhatagreeAssessment and planning11. The sustainability initiative is aligned with district/local and/orregional development plans and is developed in partnership withrelevant local stakeholders, including government, to ensureownership and to build local capacity.12. Direct risks, indirect risks and side effects are considered whileplanning the initiative.13. All necessary permits for the initiative have been obtained fromthe government prior to implementation.Stakeholder engagement and communication14. The company routinely clearly communicates the intended goalsand reports back results of the initiative to relevant stakeholders(e.g. local communities, government, the media, employees).15. Performance indicators for the monitoring and evaluation of theinitiative are developed in co-operation with relevant stakeholders.Implementation, monitoring and evaluation16. Roles, responsibilities and accountabilities for the initiative areclearly assigned within the company.17. Formal agreements with local partners have been established inorder to ensure accountability.18. Adequate financial and human resources are allocated to theinitiative, with some contingency.Agree StronglyagreeCommunity Development Toolkit113

Table 13: Self-assessment questionnaire continuedSection 2: Individual sustainability initiative Do not agree Somewhatagree19. An effective monitoring and evaluation system is in place in orderto measure outcomes and impacts of the initiative.20. Benefits arising from the initiative are distributed to directlyimpacted stakeholders through fair and transparent mechanisms.21. There is an established mechanism in place that enables localstakeholders’ representatives to regularly participate in providingtheir input and feedback on this sustainability initiative, and tosuggest how it could be improved.Agree StronglyagreeNot applicable/do not know114 Community Development Toolkit

Financial Valuation Tool10Sustainability Program Quality FrameworkcontinuedSTEP 3Calculate your weighted average score asfollows:The Excel-based self-assessmentquestionnaire is available at: http://fvtool.comIt automatically calculates the score for theuser.1. Score each statement in the questionnairefrom 0 to 4. Do not include statementsmarked with 0 (not-applicable/do not know)in the calculation.2. Add up the scores for each statement anddivide by the number of statements,generating an average score for eachsection (Section 1 and 2).3. Each specific sustainability initiative willreceive separate scores ranging from 1 to4. The overall score for each sustainabilityinitiative on the self-assessmentquestionnaire is a sum of the weightedaverage of the scores from Section 1 andSection 2. The score on Section 1 accountsfor 30% of the overall weighting, whilethe score on Section 2 accounts forthe other 70% of weighting (e.g. score onSection 1 of 3.30 would make weightedscore of 0.99 (3.30 x 0.30). Score of 3.27on Section 2 would make weighted scoreof 2.29 (3.27 x 0.70). Total score is 3.28(sum of weighted scores on Section 1 andSection 2).STEP 4The final result of the self-assessmentquestionnaire is a numerical score rangingfrom 1 (ineffective) to 4 (excellent). Enter thescore into the Quality of SustainabilityInvestments tab in the FV Tool(http://fvtool.com) or use the score as astand-alone rating of sustainabilityinvestment.STEP 5Refer to the management processes’good/best practices in Table 14 for guidanceon stakeholder engagement, grievancemechanisms and monitoring and evaluation.Compare the score generated for thespecific sustainability initiative (Section 2above) with the full Benchmark Matrix forfurther reference(http://fvtool.com/files/Benchmark%20Matrix.pdf).The full Benchmark Matrix offersdescriptions of different sustainabilityinitiatives along four performancecategories, from ineffective practice to bestpractice, for the most common sustainabilityprograms (“the what”) as listed here formanagement processes (“the how”).PLANNING TOOLSCommunity Development Toolkit115

Table 14: Sustainability Program Quality Benchmark MatrixStakeholder engagementThis topic addresses issues of a broader, more inclusive and continuous process between a company and those potentially impacted thatencompasses a range of activities and approaches, and spans the entire life of a project. It is recognized that there are business and reputationalrisks that come from poor stakeholder relations. A good stakeholder engagement approach includes stakeholder identification and analysis,information disclosure, stakeholder consultation, negotiations and partnerships, grievance management, stakeholder involvement in projectmonitoring, reporting to stakeholders and management functions.Best practiceIneffective practice Neutral practice Good practice• Stakeholder engagement throughout thewhole project cycle.• Stakeholder engagement is integrated intocore business activities (HR, procurement,security).• Very early engagement during pre-feasibilityor pre-exploration phase – engagement asinformation disclosure and consultation withstakeholders.• Poorly conductedanalysis that doesnot capture relevantinterest groups.• Engagement with stakeholders in their owncommunities in a culturally appropriatemanner.• Stakeholderengagementstrategy and planis designed tocomply withlocal regulation.• Senior management is involved instakeholder activities.• No stakeholderengagement strategy,plan and activities.• There is a system in place that measureseffectiveness of building constructivecorporate–community relations andrelationships with other relevantstakeholders.• Stakeholder engagement strategy based onstakeholder identification and analysis.• Stakeholders ignoredand requestsdenied.• Local communities are seen as partners.• A stakeholder engagement plan thataddresses multiple stakeholder groups andissues (NGOs, media, communities and localgovernment, as well as women, IndigenousPeoples, the poor, youth and elderly).• Stakeholders can call the meetings andthere is a procedure for this, jointlyestablished between a company and relevantstakeholders.• There is trust and respect between acompany and local communities.• Stakeholderengagement consistsof a one-time set ofpublic meetings withlocal leaders who donot represent thetrue interests of localcommunities.• Stakeholder engagement is integrated intoSEMS (Social and EnvironmentalManagement System).➜116 Community Development Toolkit

Best practice• Negotiations with communities areconducted in good faith.• Communities give feedback about programsthat are being implemented and theirfeedback is incorporated into project design.• Vulnerable groups are included inengagement activities in a distinct manner.Table 14: Sustainability Program Quality Benchmark Matrix continuedStakeholder engagementIneffective practice Neutral practice Good practice• A process that is onlyresponsive (passive),i.e. a company engagesonly when there is aproblem, such as acommunity protest,negative press orNGO pressures.• There are regular, ongoing meetings withstakeholders (communities, local NGOs, localgovernments).• Engagement with a long-term view.• Company-hired qualified community liaisonstaff.• An ad hoc approach.• Engagement withcommunities isconducted on thecompany’s premises.• In cases where local communities lackexperience in organizing themselves and/orin public consultation processes, the companyfacilitates capacity-building activities.• The company ensures that local benefits areunderstood by local stakeholders.• Expectations are effectively managed andthe company is very clear about who losesand who wins.• There are programs targeting “have-nots”,people who do not benefit from the project,that help create opportunities for them.➜Community Development Toolkit117

Table 14: Sustainability Program Quality Benchmark Matrix continuedGrievance mechanismThis topic addresses the issues of having an accessible and responsive means for stakeholders to raise concerns and grievances about the projectthroughout its life. The aim is to have a grievance mechanism scaled to the potential risks and adverse impacts of the project. The mechanismshould address concerns promptly, use an understandable and transparent process that is culturally appropriate and readily accessible to allsegments of the affected communities, and do so at no cost to communities and without retribution. The mechanism should not impede access tojudicial and administrative remedies.Best practiceIneffective practice Neutral practice Good practice• There is a third party audit of theeffectiveness of the grievance mechanism.• For large projects, contractors follow thecompany’s grievance mechanism.• The grievance mechanism is functioning,clear and transparent, culturally appropriateand accessible to communities at no cost andwithout retribution to the party that originatedthe issue or concern.• Communities are included in theparticipatory monitoring of the grievancemechanism.• Communities are informed about theexistence of the grievance mechanism duringthe consultation process.• The company reports back to communitieson how grievances have been addressed.• There is no grievancemechanism in placeor the grievancemechanism is notaccessible tocommunities and theydo not use it to addressdifficulties in anon-confrontationalmanner.• The grievance mechanism is used bycommunities.• The grievance mechanism goes beyondissues of grievance, and people’s fears andemotions are addressed.• The grievance processaddresses onlygrievances, but neglectsunderlying fears andneeds of people.• Grievances are addressed in a culturallyappropriate manner.• Community perceptions are taken intoaccount when addressing grievances.• The grievance process is predictable andincludes a fixed timeline for the entireprocess.➜118 Community Development Toolkit

Table 14: Sustainability Program Quality Benchmark Matrix continuedGrievance mechanismIneffective practice Neutral practice Good practiceBest practice• There is a grievances specialist available toreceive grievances and co-ordinate efforts toredress those grievances through theappropriate channels, taking into considerationany customary and traditional methods ofdispute resolution within the affected community.Monitoring and evaluationThis topic addresses issues of having an established monitoring and evaluation (M&E) system that systematically tracks outcomes and impacts ofprojects. The aim is to have stakeholder involvement in project monitoring and in defining the vision of success.Ineffective practice Neutral practice Good practiceBest practice• There is a nascentM&E system in place.• No baseline data iscollected.• Targets are not specificand measurable.• There is no budget forM&E nor anydesignated person incharge of the process.• There is a basicM&E system inplace, focusing onactivity indicators.• There is a clear M&E system and plan foreach program.• The M&E framework captures mainlyoutcomes, but neglects impact.• There is a budget for M&E activities.• There is a designated person responsible forthe M&E process.• The M&E system includes outcomes andimpact indicators.• The indicators have been developed inco-operation with relevant stakeholders;there is a shared vision of success.• Affected populations are included in impactmonitoring.• Stakeholders’ feedback and perceptions feedinto project design.• There is annual reporting against keyperformance indicators.• The M&E report is externally assured.Community Development Toolkit119

CASE STUDYFinancial Valuation (FV) Tool for sustainability investmentsThe case of Newmont GhanaPLANNING TOOLSThere is a growing body of work for quantifying the impact of sustainability programs andtaking a more strategic view of community investment decisions. Intuitively, mining companiesunderstand the business case for being a good corporate citizen and generating positiverelationships with communities, civil society and governments that enable key businessdrivers, including access to land, government approvals, access to resources and access tocapital. Quantifying the value of these investments and planning accordingly, however, haslong posed a challenge for companies and community development practitioners.Through a multilateral partnership, including the IFC, Rio Tinto, Deloitte, Newmont, theMultilateral Investment Guarantee Agency (MIGA) and the Government of Norway, the FV Toolwas developed which quantifies the return on site-specific sustainability investments. Thisvalue is generally understood to take the form of either direct value creation (i.e. reducedcosts, generated benefits) or indirect value protection (i.e. risk mitigation, programeffectiveness). Such information helps to justify and stabilize the annual budget thatcompanies devote to sustainability efforts. It creates incentives, within companies, to investin their communities. The FV Tool is a web-based software available at www.fvtool.com.Ahafo gold mine pilotThe Newmont Mining Corporation Ahafo mine has been pilot testing the FV Tool over thelast several years and is currently testing the potential of formally integrating the FV Toolin its budgeting and capital project process planning for operational investments related tosustainability, impact mitigation and community benefits. The company firmly believes itsperformance in the areas of environment and social responsibility (ESR) is key to its futuresuccess. While this sentiment is broadly shared throughout the company, there are divergentviews among the company’s internal stakeholders as to how much the company should bespending on sustainability investments and what the benefits are to the business in moreconcrete terms.Newmont anticipates that the tool will better enable the environment and social teams tocommunicate, in more rigorous terms, the value of the sustainability investments. While theFV Tool provides an estimated net present value (NPV) range of a specific sustainabilityportfolio, the true value of using the FV Tool is the process, cross-functional engagement andability to provide explicit rationale for each program in terms of direct value creation and riskmitigation.Conversation with non-sustainability functionsManagement of programs and budgets with direct sustainability outcomes and impactsreside with different non-traditional sustainability functions in a company. For example, theNewmont Ahafo Linkages and Apprenticeship programs are managed by Supply Chain andLearning and Development functions and are designed to generate local business opportunitiesand enhanced skill training for local community members. An intense data collection processwas required to generate inputs into the FV Tool. The FV Tool provided a common platformfor risk, social responsibility, human resources, health and safety, supply chain, operationsand land teams to engage in discussions to understand the strategy, data, analysis anddecision-making process related to sustainability investments and associated expenditures.Value protection and risk managementESR and risk teams worked closely to identify risks from the Newmont Ahafo mine’s riskregister that are being managed by sustainability investments, including managingcommunity expectations for jobs and benefits, in-migration, water quality and access,public relations, stakeholder engagement and compliance-related issues. The FV Toolprocess strengthened the understanding and convergence between risk, finance and➜120 Community Development Toolkit

CASE STUDY continuedFinancial Valuation (FV) Tool for sustainability investmentsThe case of Newmont Ghanasocial responsibility teams and led to a growing appreciation among Newmont staff of therelationship between social responsibility investments and risk management and the abilityof the ESR staff to communicate from a risk and finance perspective.Value-creation perspectiveA cost-benefit analysis for each sustainability investment was conducted by finance and ESRstaff to identify “value drivers” or productivity gains/savings to Ahafo. Where evidence tosupport value drivers was not available, conservative assumptions were developed and keyperformance indicators identified for future monitoring and evaluation. Finance was criticalto this process by supporting the ESR team to express the value of their programs in termsof cost (operating expenditure and capital expenditure), benefits (e.g. cost savings andproductivity leading to financial gains) and operational risk mitigation. For example, a costbenefitanalysis of Newmont Ahafo’s malaria control program revealed several key valuedrivers. In 2006, the average monthly workforce malaria incidence rate was about 8%, costingthe Ahafo mine nearly 76,680 hours of lost productivity due to employee and contractorabsenteeism, translating into an operating cost of nearly US$400,000. Without the malariacontrol program, the projection of the direct costs to the company over a five-year period(2006–2010) due to absenteeism alone would have been about US$2 million. The cost formedication and medical consultation (average US$30 per case) for that five-year periodwould have stood at about US$500,000 and indirect costs (e.g. workforce morale, candidaterefusals to accept posting to Ahafo, cost of family members contracting malaria, etc. atUS$30 per case) contributing to another loss of US$500,000. Thus, the total cost of malariato the company without a malaria control program over the five-year period would have beenaround US$3 million, minimum. 33 In comparison, Newmont Ghana invested US$1.5 million inthe malaria control program over the same five-year period. This achievement made bythe company in the fight against malaria has received global recognition by the GlobalBusiness Coalition in 2010. The project team recognizes some limitations to fully integratethe financial outputs of the FV Tool due to accounting principles but observes an improvedunderstanding of shared value by non-sustainability business functions.PLANNING TOOLSBusiness process integrationThe real test of the FV Tool will be determined by Ahafo’s ability to formally integrate theFV Tool process into the business process and planning cycle. In the past, ESR staff haverelied on Newmont’s social responsibility standards, intuition around benefits and moralarguments to defend budget requests rather than value, NPV and risk language. Over thepast year, there has been a considerable improvement in the ESR staff’s ability to evaluatetheir sustainability investments using principles of value creation and protection. Ongoingtraining efforts are being conducted to expose ESR and finance staff to the types of inputsrequired and analysis of outputs generated by the FV Tool and use of the budgeting templates.Lessons learnedA key learning from using the FV Tool is not how much sustainability investment cost butrather how dispersed pieces of information limited the company from having moreinformed discussions based around the value of sustainability investments in a languagethe business understood. That is, the outcome is an ongoing process for evaluatingsustainability investments rather than a point-in-time prioritization or go/no-gorecommendation. The enhancement of communications within the company and withstakeholders has helped create common understanding of how defining value should beat the core of all the company’s resource allocation going forward.33 Private Sector Integrated Malaria Control in Ghana: Methods, Impact and Business Case for ProtectingEmployees – Godwin Fuseini, Peter Ebsworth, Dave Knight, Paul Caiger, Chuck Burns, Michael J. Bangs.Community Development Toolkit121

10Financial Valuation ToolSustainability Program Quality FrameworkcontinuedPLANNING TOOLSKey referencesIFC, Financial Valuation Tool for Sustainability Investments. Available at:http://fvtool.com122 Community Development Toolkit

These tools help people tounderstand the potentialrisks and impacts of the mineon surrounding communitiesand other stakeholdersASSESSMENTTOOLS

CONSIDERING ENVIRONMENTALAND SOCIAL ELEMENTSENABLES COMPANIES TOMITIGATE NEGATIVE IMPACTS,UNDERSTAND POTENTIALOPPORTUNITIES ANDDEVELOP ROBUSTMANAGEMENT SYSTEMS.Image courtesy of Anglo American

Assessment toolsTOOL 11Social Baseline StudyDrawing up a profile of the community surrounding the projectarea, and its regional and national setting.127TOOL 12Social Impact and Opportunities Assessment 133Assessing the impacts, both positive and negative, that theproject may have on host communities and how to manage them.TOOL 13Competencies AssessmentDetermining the attributes your team, whether company,community, NGO or government, has and whether other skills,knowledge and understanding may be required, that isadditional human resources.145Community Development Toolkit125

Assessment toolscontinuedASSESSMENT TOOLSGuidance for usingassessment toolsFor ease of reference, the tools arepresented separately in this section thoughyou should use them in an integrated way.In practice, the Social Baseline Study andthe Social Impact and OpportunitiesAssessment should be used at the sametime. IFC Performance Standard 1 34advocates this integrated approach anddescribes the necessity of identifying risksand impacts based on recent social andenvironmental baseline data. An integratedmethod that considers social, economic,environmental and health aspects ispreferable as it can lead to a more holisticand comprehensive overall impactassessment with fewer inconsistencies andpotential conflicts in findings between theindividual assessments. Consideringenvironmental and social elements enablescompanies to mitigate negative impacts,understand potential opportunities anddevelop robust management systems.That said, you may find stand-aloneassessments are appropriate in certaincircumstances, for example when a quickoverview of potential health impacts isrequired so that emerging community healthissues can inform the early project designand planning process (references for healthimpact assessments are included in the keyreferences at the end of tool 12). Similarly,if you are facing widespread concerns overa range of human rights issues, analysingthese separately may bring greater clarityand enhance the credibility of the analysis.There is a growing number of methodologiesfor conducting stand-alone human rightsimpact assessments (HRIAs), some of whichare provided in the reference section at theend of tool 12. A number of references arealso provided for conducting gender-specificimpact assessments, though, as recognizedby the IFC, a good starting point is toconduct a gender-responsive social analysisas part of the overall social andenvironmental impact assessment.As mining company staff, you may be usedto community programs that consistedlargely of donations or of the constructionof buildings deemed necessary by minemanagement and a small section of thecommunity. To better target yourdevelopment projects, you need tounderstand the communities around youand the ways your project will impact them.These assessment tools will help you gainthat understanding, and when coupled withthe PRA techniques and those in theplanning section, you can work witha broad range of community members tohelp them make their own plans, ensuringthat any development activities will bewanted by the recipients, and that they willwant to “own” them.Community members, NGOs/CBOs andgovernment officers may also find thesetools useful, both to use themselves, andto understand the activities a companyis undertaking.34 Available at: http://www1.ifc.org/wps/wcm/connect/topics_ext_content/ifc_external_corporate_site/ifc+sustainability+framework/2012+edition/performancestandard1126 Community Development Toolkit

Social Baseline Study11DescriptionThe gathering and compilation of baselinedata that describe the state of the socialand economic environment and thecharacteristics of the populations livingin the area around mining and metalsactivity is usually known as a social baselinestudy. Companies should collect datadisaggregated by gender or ethnic groupwhere there is a particular vulnerability orrisk of disadvantage. A social baselinestudy investigates the following topics:Demographic factorsNumbers of people, their location, populationdensity, age, ethnicity, presence ofIndigenous Peoples, etc. Population growthtrends, including migration practices, areimportant to establish in order to determinethe potential for significant influx.Socio-economic determinantsFactors affecting incomes and productivityfor both women and men (such as skill setsof the community and the extent to whichrequisite skills exist or training will berequired), land tenure, access to productiveinputs and markets, family composition,kinship reciprocity, and access to wageopportunities and labour migration.This will also include levels of educationattained, literacy and skills held withinthe community.Social organizationOrganization and capacity at the householdand community levels affecting participationin local-level institutions as well as localdecision-making processes and access toservices and information for both womenand men.Economic organizationLocal and regional businesses andcommercial structures, infrastructuresupporting economic activity, governmentand other economic/industrial developmentplans for the area.Socio-political contextStakeholder organizations’ developmentgoals, priorities, commitment to developmentobjectives, control over resources,experience and relationship with otherstakeholder groups, including women, youth,minorities, elderly and disabled people.Historical contextHistorical issues and events, for examplemigration, relocation, etc.Needs and valuesStakeholder attitudes and valuesdetermining whether developmentinterventions are needed and wanted,appropriate incentives for change andcapacity of stakeholders to manage theprocess of change.Human rights contextPrevailing human rights issues, status ofwomen, minorities, vulnerable groups andpolitical risks, etc.Health contextHealth situation within the community priorto the development of a mining project,including access to health services, healthlevels within host population (acrossdifferent demographics), etc.InstitutionsRole, governance, resources and capacitiesof local institutions as well as regulatoryframework.ASSESSMENT TOOLSCommunity Development Toolkit127

11Social Baseline StudycontinuedASSESSMENT TOOLSCultural backgroundCultural norms and practices (intangiblecultural heritage) and places and objectsof high cultural value (tangible culturalheritage). Vibrancy and accessibility ofcultural facilities, especially those used ascommunity meeting places. This will be ofcritical importance when Indigenous Peoplesare present within the area of impact forthe mining project.Social infrastructureEducational institutions, health services,power and water supply, sewerage andsanitation, transport infrastructure includingroads, rail, air and sea transport and theaccessibility of services.PurposeTo help you understand the localcommunities’ situation, their hopes andfears surrounding the project, and thepotential impacts, both positive and negative,of the project to allow you to developinformed mitigation and management plans.To gather data, disaggregated as far aspossible for gender, ethnicity and age,that you can use for measuring futurechange against.Without a good understanding of the localsocial and economic context, you mayunderestimate project risks and impacts tocommunities, fail to identify opportunitiesfor contributing to social and economicdevelopment, introduce developmentactivities that are culturally or sociallyinappropriate or fail to understand localcauses of poverty and inequality.Social surveyor (right) collecting baselinedata from community member, Tanzania(Photo. C. Macdonald)A good baseline study also provides thegrounding data needed for assessments ofchange after a project has been initiated.By measuring conditions at the outset ofa project, it is possible to take latermeasurements, compare them with thebaseline data and determine whetherchange has taken place. For example, itwould be possible to ascertain whetherthere are more local businesses since thestart of a project and whether more girlsare completing school. It is a good idea tokeep in mind the kind of changes you wouldhope to measure when doing a baselinestudy to ensure you collect data in a mannerthat can be repeated and that will give youthe analysis you seek.128 Community Development Toolkit

Social Baseline Study11continuedWhen to use this toolA baseline study, by definition, needs to beundertaken at the beginning of a project.It is usually conducted at the early stagesof an ESIA or may be conducted as astandalone exercise prior to investment incommunity projects taking place. If anexisting project is acquired, and no baselinestudy was conducted by the previousmanagers, then it is a good idea to do abaseline study from the time you start witha project, something termed a delayedbaseline.The gathering of primary data to completethe baseline survey should commence assoon as possible. The baseline study isnot, however, the end of the process ofknowing your local community. Developmentfacilitators need to update their understandingof local social conditions – to identifyemerging concerns and changing need –throughout the life of the project.Another important time to update baselinesocial and economic data is at mineexpansion or closure – this will help you toplan appropriately for expansion or closureand to provide a baseline against which tomeasure post-closure changes or an adjustedbaseline to measure post-expansionchanges against.Ensure that a regional level of assessmentand data collection is included in the termsof reference for baseline studies of yourproject.How to use this toolA baseline survey is a large undertaking,frequently requiring a large team of fieldsurveyors, and is therefore beyond thecapacity of most companies to conduct within-house resources, and it is often wise tohave an independent party collecting thedata regardless. Usually, consultants areengaged to gather and analyse the baselinedata, including information already availablefrom a variety of sources, such asuniversities and government departments.Ideally, experienced consultants with afamiliarity with international socialassessment standards will team with localconsultants and researchers to conduct thesocial baseline study process. Even better,if time and resources permit, participatoryresearch methods, where communitymembers conduct their own analysis, maybe used. Though participatory methodsare more time-consuming than thedata-gathering efforts of professionalresearchers, they can mitigate againstfuture social impacts. Other participatorymethods (e.g. focus groups) can beeffectively integrated into social baselinedata gathering.STEP 1Desktop social profile – engage researchersto locate available data in co-operation withlocal officials and community leaders todraw up a social profile (this couldincorporate any social data collected as partof a due diligence assessment).STEP 2Decide what further information needs tobe acquired through primary research.Large projects may conduct a social baselineas part of their exploration activities andthen again as the project expands intofeasibility. The level of primary data that iscollected will likely expand as the projectdevelops.ASSESSMENT TOOLSCommunity Development Toolkit129

11Social Baseline StudycontinuedASSESSMENT TOOLSSTEP 3Engage experienced social scientists andlocal tertiary institutes or researchorganizations to design a survey to captureboth quantitative (questionnaire of manypeople) and qualitative (focus groups andkey informant interviews) information.Where Indigenous Peoples are present inthe project’s area of influence, experiencedanthropologists may be required to conductthis assessment.STEP 4Draw a comprehensive community profile,ensuring coverage of vulnerable groups andminorities. Test with community participantsand adjust as needed. Be sure to incorporatestakeholder feedback.STEP 5Use the completed social and economicbaseline study as the basis for conductinga Social Impact and OpportunitiesAssessment (tool 12) and for monitoringand evaluation activities (tools 19–20).STEP 6Share the baseline study with localstakeholders, etc in an accessible format(audiovisual resources may be useful inareas with low levels of literacy).Village women in Tanzania engaged in aparticipatory planning exercise with help ofexternal facilitator. Here, they are draftingtheir seasonal calendar on the groundbefore transferring the final version tocardboard. By conducting participatoryplanning exercises such as this separatelyfor men and women, you ensure thatwomen have a non-threatening opportunityto provide their input into discussions.Further, you can draw out the differentpriorities of each group, which then leads toa lively debate about which things are mostimportant to the community as a whole.(Photo. C. Macdonald)130 Community Development Toolkit

CASE STUDYExample of a social baseline study table of contentsSouth Gobi Social, Economic and Environmental Baseline Study, 2008This particular baseline study wasundertaken of the entire South GobiProvince (Umnugobi aimag) inMongolia. This is a far largerundertaking than would be attemptedby many mining projects, but indicatesthe wide range of information thatcan be included. It was paid for byOyu Tolgoi mining project, now runby Rio Tinto, as a contribution to thepeople and regulators of the entireprovince, and was undertaken by ateam of Mongolian researchers,guided by an external advisory panel,made up of Mongolian national,provincial and local stakeholders,with international organizationobservers.TABLE OF CONTENTSTHE OYU TOLGOI (OT) SOCIO-ECONOMIC BASELINESTUDY TEAMACKNOWLEDGEMENTSEXECUTIVE SUMMARY1. INTRODUCTION2. EXPLANATORY NOTE3. ECONOMY AND FINANCE(includes information on: the Financial sector,Local economy and market, Local budgetrevenues and expenditures, Agriculturalcommodity prices, Attitudes toward migrantsettlersand “outsiders”, Standard of living,Poverty and prosperity, Income/expenditure,Access to income support/social welfarein times of hardship, Employment,under-employment and unemployment,Existing employment sources, Subsistencestrategy, Child labour and Youth issues)4. AGRICULTURE AS SOURCES OF LIVELIHOODS(includes information on: General issues,Livestock sector and Crop production – scaleand trend)5. INDUSTRY(includes information on: Industry as economicsector, Mining sector and Opportunities fornew enterprises, access to finance, capital)6. LOCAL BUSINESS(includes information on: Small businesses,Informal business, Tourism and associatedbusinesses)7. SUPPLY AND SERVICE CAPACITY FROM LOCALSTO LARGE PROJECTS8. ENVIRONMENTAL DATA(includes information on: Climate, Air quality,Soils, Vegetation, Wild fauna, Landscape,Land resources, Specially protected areas,Water resources, Afforestation, Solid wastemanagement, State of water and soilpollution, Opinions of local residents on useof natural resources, Environmental capacityto support humans and livestock)ASSESSMENT TOOLSCommunity Development Toolkit131

11Social Baseline StudycontinuedASSESSMENT TOOLSKey referencesCentre for Social Responsibility in Mining, Leading Practice Strategies for Addressing theSocial Impacts of Resource Developments, University of Queensland, 2009.www.csrm.uq.edu.au/docs/Franks_etal_LeadingPracticeSocialImpacts_2009.pdfIFC, Good Practice Note: Addressing the Social Dimensions of Private Sector Projects,Washington DC, 2003. Available at:www.ifc.org/ifcext/sustainability.nsf/content/publications_resettlementWorld Bank, Social Analysis Sourcebook: Incorporating Social Dimensions into Bank-Supported Projects, Washington DC, 2003, Chapter 4: Social assessment, andChapter 5: The way forward, section on Good practice in social analysis. Available at:http://web.worldbank.org/WBSITE/EXTERNAL/TOPICS/EXTSOCIALDEV/0,,contentMDK:21177387~pagePK:64168445~piPK:64168309~theSitePK:3177395,00.htmlExample of gender sensitive baseline:www.riotinto.com/rio-apps/riotinto_operationmap/pdf/Case_study_3_%20Rio_Tinto_in_Mongolia.pdf132 Community Development Toolkit

Social Impact and12Opportunities AssessmentDescriptionThe process of social impact assessment(SIA) can limit itself to identifying negativeimpacts and mitigating them, rather thanalso considering positive aspects of thepresence of a project. An SIA should identifypositive as well as negative impacts and lookfor methods of enhancing the opportunitiesthat can flow from the positive impacts aswell as offsetting the negative ones. For thisreason, the tool described here is a SocialImpact and Opportunities Assessment (SIOA).The opportunities can form the basis for asustainable community development program,if harnessed in a co-operative participatoryplanning program, with full engagementfrom the local community, government andother stakeholders. In addition, thepurposeful identification and enhancement ofopportunities that can add value to aproject’s presence within a community fromthe start will make the challenges ofengagement, local participation and a morecollaborative and sustainable communitydevelopment effort throughout the life cycleof the project easier. This approach, ofenhancing positive project impacts forcommunity development purposes, goingbeyond the obligatory mitigation of negativeimpacts, is explained comprehensively in theIFC’s Strategic Community Investmenthandbook. 35Mining projects have historically concernedthemselves primarily with developmentswithin their lease boundaries or connectedto the infrastructure associated with theirmines. Impact assessments have generallyfocused on the mine’s direct impact area,usually within a defined geographic space.If cumulative impacts, impacts across aregional or provincial level and the likelihoodof rapid population growth are identified inthe impact assessment stage, then a regionalplanning approach will be warranted. 36Ideally, especially for large-scale projects,adopting a regional approach should beginwhen baseline studies commence. Impactassessments are undertaken beforecommencing construction.PurposeTo assess the potential social and economicimpacts, and identify opportunities,generated by your project. Having identifiedlikely impacts, propose measures to mitigateor offset potential negative impacts andmaximize positive impacts. Going beyond thebasic SIA model, a community-developmentfocusedSIA approach should include anopportunity assessment to enhance positivedevelopment impacts of the project as wellas identifying impacts that need to bemitigated. Like baseline studies, SIOAsbenefit from having input from communitymembers and other stakeholders, as theyoften identify potential impacts andopportunities that may not be evident toresearchers and company staff. Specificinclusion of the likely impacts of the projecton women and vulnerable and/ormarginalized groups is essential.It is important to identify the barriers andconstraints to participation along genderlines, as opportunities for local economicdevelopment can be very different fromthe perspectives of men and women.Separate consultations with women’s andmen’s groups should take place to ensurethat gender-specific impacts andopportunities can be clearly identified.ASSESSMENT TOOLS35 IFC, Strategic Community Investment: A Good Practice Handbook for Companies Doing Business in EmergingMarkets, and Strategic Community Investment: A Quick Guide, Highlights from IFC’s Good Practice Handbook,Washington DC, 2010.Both available at: www.ifc.org/ifcext/sustainability.nsf/content/publications_handbook_communityinvestment36 See IFC’s Performance Standard 1, Washington DC, 2012 for more detail on these topics. Available at: www.ifc.orgCommunity Development Toolkit133

Social Impact andOpportunities Assessment12 continuedASSESSMENT TOOLSWhen to use this toolIdeally, an SIOA should be conducted assoon as possible after the social baselinestudy (see tool 11). Indeed, they usually formpart of the same large exercise, although,in some cases, a baseline study may beconducted as a separate undertaking. It ispossible, but unwise, to conduct an impactassessment without a baseline study.Without the broad-based knowledge of thecommunity’s social and economic status andstructure that is provided in a baseline study,an SIOA may draw incorrect conclusions. Inaddition, without baseline data, managingand monitoring mitigation measures isdifficult, as there will be no initial data withwhich to compare change over time.Some leading companies are alreadyincluding a less complex assessment of thelikely costs of programs to mitigate potentialsocial problems in their due diligenceprocess (i.e. not a full SIOA, but a scopingstudy). Conceivably, if the costs of mitigatingsocial impacts and implementing adequatesocial programs will outweigh the potentialprofits of a mine, as assessed at a high levelat this early stage, then it may be prudentto walk away from the project. It may alsobe the case that it is not clear how certainpre-existing social impacts (such as ahistory of human rights abuses by a previousowner) can be mitigated or managed, whichagain may make it wise not to make theproject acquisition.Assessments should be made of the impactslikely at each stage of the project, fromfeasibility through to relinquishment, includingtransitory phases like construction, when alarge, temporary workforce may be present.It is particularly important that the socialimpacts of a project at closure and beyondare taken into account when assessing thefeasibility of a proposed project. As a siteapproaches closure, a specific SIOA on theimpacts of closure should be conductedand closure mitigation and opportunitiesprograms should be developed accordingly.The cost of exit strategies should be factoredinto the financial modelling when examiningthe feasibility of a project.Module 5 of ICMM’s Mining Partnerships forDevelopment Toolkit 37 may also be helpfulwhen applying this tool. Module 5 can assistin the measurement of the positive andnegative contributions of mining to localcommunities.37 Available at: www.icmm.com/mpdtoolkit134 Community Development Toolkit

Social Impact and12Opportunities AssessmentcontinuedHow to use this toolThe assessment would normally beundertaken by experienced social scientistswith a good understanding of mining andmetals projects and their potential effects,as well as sound knowledge of communitydynamics and the local population. If goodbaseline data have been collected, thenthe assessment will be based on a solidfoundation. The participation of local,regional and national stakeholders, throughinterviews, focus groups and surveys, willalso provide you with information about localvalues and experiences – invaluable for acomprehensive assessment. These surveysand interviews are not just for the purposesof data collection, in order to populate thebaseline study, but should capture people’shopes, fears and expectations, in order togive life to the assessment of impacts andidentification of opportunities.Criteria applied for the determination of animpact should include the likelihood of animpact occurring, how widespread theimpact will be (how many people will itaffect) and, after management measureshave been developed, whether it can bemitigated reasonably or not. Managementmeasures are then proposed for the impactsidentified, either to enhance the positiveimpacts (opportunities) or to mitigate thenegative impacts. Closure planning shouldalso form part of the planning for impactmanagement measures from the earlieststage. That is, the impact managementprograms should be designed to besustainable, to survive the cessation ofmining operations, not simply be a positivemeasure during the life of the mine, leavingpeople no better off when the mine closes.Impacts should ideally be assessed twice,once without the ameliorative effect ofmitigation measures, and then again afterproposed management measures areincluded in the equation, in order todetermine whether a project is able not onlyto manage its negative impacts through goodcommunity development programs, but evento have a positive contribution to sustainabledevelopment. This comparative assessmentwill highlight the importance of goodcommunity development and encouragecompanies to invest in social programs.For example, as a large gold mine you mayhave a significant negative impact on localemployment for small-scale miners who willno longer be able to mine the deposits theyused to. However, if you put employmentprograms in place to provide alternativelivelihoods for these miners, then theimpact may be neutral or even positive.Going further, if the mine is able to put inplace, in co-operation with government andemployment and training agencies, aneffective training and education programthat allows local people to acquire skillsthat enable them to obtain lifelongemployment from a variety of sources,then the overall impact of the project onemployment and income may be positive.Your project, in partnership with governmentagencies, will then have createdopportunities for the broader community,not just the negatively impacted miners.ASSESSMENT TOOLSCommunity Development Toolkit135

Social Impact andOpportunities Assessment12 continuedASSESSMENT TOOLSSTEP 1Review social baseline study and determineareas of concern to the communities,potential impacts as well as areas where theproject might present opportunities (refer totool 9 Development Opportunity Ranking).Community and other stakeholder input,through focus groups or advisory panels, canassist here and in the following three steps.STEP 2Assess potential impacts and opportunities –identify areas needing impact managementprograms. Determine whether there aresignificant cumulative impacts in theproject’s broader region, as well as directand indirect impacts. Cumulative impactswill occur when the effects of severalseparate developments combine to createan intensified impact, for example road dustfrom roads leading to several separatemining and infrastructure projects withina region might jointly create a seriousenvironmental and social health impact.STEP 3Propose measures to manage and, ifnecessary, mitigate the identified impactsand enhance opportunities. If it is likely thatthere will be problems associated withpopulation influx, then use the IFC Handbookfor Addressing Project-Induced In-Migrationto develop appropriate managementmeasures. 38 This handbook is comprehensiveand strategic in its approach to issues relatedto unintended population influx. The volumecovers the business case for addressinginflux issues and what the associated costsmight be, understanding the dynamics andmotivations of project-induced in-migration,risk assessment and managementapproaches. There are also sections onassociated issues such as artisanal andsmall-scale mining, Indigenous Peoples,resettlement and biodiversity.STEP 4Reassess the impacts and opportunities,taking the proposed management measuresinto account.STEP 5Work with community and other partnerson participatory development plans thataddress community priority programs(enhancing opportunities) as well asrequired mitigation programs (mitigatingimpacts). Tools 6–18 can be used to developimpact management plans in co-operationwith community members and other partneragencies.STEP 6Review management measures andprograms regularly, and adjust as required(see tools 19–20 for monitoring andevaluation methods).STEP 7If significant regional and cumulativeimpacts are likely to occur as a result of theproject, then a regional managementapproach, in partnership with governmentand other civil society and donororganizations, should be initiated as earlyas practicable. The case study on page 141provides an example of what might beincluded in such an approach. Tool 1 willhelp in identifying the appropriatestakeholders and partners to work with.38 IFC, Projects and People: A Handbook for Addressing Project-Induced In-Migration, Washington DC, December 2009.136 Community Development Toolkit

Social Impact and12Opportunities AssessmentcontinuedExample impact assessment framework(for step 2)An example impact assessment frameworkis presented in Table 15 as a guide to theelements of a SIOA. The potential impactsidentified therein are both positive andnegative in nature. Positive potentialimpacts may result in positive social change(e.g. increased employment, economicgrowth), and the opportunity exists for yourproject to maximize these benefits througheffective management (i.e. identification andimplementation of benefits enhancementmeasures).In contrast, negative potential impacts mayresult in negative social change (e.g.displacement of settlements, pressure oninfrastructure), and the opportunity existsfor your project to minimize these negativeimpacts, and in some cases to transformthem into positive impacts, through effectivemanagement (i.e. identification andimplementation of mitigation measures).In addition, potential impacts can be bothdirect and indirect in nature. Direct impactsrefer to changes in baseline socialconditions that are caused by a specificproject-related activity (e.g. loss ofarchaeological sites). Indirect impacts referto changes in baseline social conditionsthat are indirectly caused by a specificproject-related activity (e.g. economicgrowth not directly associated with themine’s expenditures).Subsections of the assessment couldinclude:i. description of the potential impact,which discusses the following:a. cause – identifies the project activityresponsible for the impactb. nature – notes whether the impact ispositive or negative, as well as direct,indirect or cumulativec. geographic extent – describes thegeographic area impactedd. duration – notes whether the impactis related to a specific phase of projectactivity and how long the impact willpersiste. magnitude – notes the number ofpeople affectedf. significance – notes whether theimpact will have a major impact onthose affectedii. identification of management measuresto avoid or reduce to acceptable levelsany potentially unacceptable negativeimpacts and to maximize potentialbenefitsiii. assessment of residual impact(i.e. the impact that will remainfollowing consideration of the proposedmanagement measures) andcharacterization of overall significance.ASSESSMENT TOOLSImportantly, some direct and indirectimpacts have the potential to accumulatewith those impacts of other existing orproposed projects and activities in the areasof influence: these are called cumulativeimpacts.Community Development Toolkit137

Social Impact andOpportunities Assessment12 continuedASSESSMENT TOOLSIn the example in Table 15, the steps were:1. Description of the potential impactThe following matrices provide guidelines fordetermining the extent, magnitude andduration of a project impact. which, in turn,enables the calculation of the significance ofan impact. Each of these elements of theimpact assessment aids in determining thepriority of management actions that need tobe taken.The specific parameters for each projectneed to be determined by the assessmentteam, for example whether local impactsare to be described within a certain distanceof the project, or within a local governmentboundary, and whether national-levelimpacts should also be included for verylarge projects. The matrices provideexamples, rather than definitive parameters.Table 15: Example matrices for determining significance of identified impacts1. Impact assessment criteriaCriteriaExtent or spatialinfluence of impactMagnitude of impact(at the indicatedspatial scale)Duration of impactCategoryRegionalLocalSite specificHighMediumLowLong termMedium termShort termDescriptionBeyond 20km of the project sitesWithin 20km of the project sitesOn-site or within 100m of the site boundarySocial functions are severely altered – largenumber of directly impacted people/householdsSocial functions are notably altered – mediumnumber of directly impacted people/householdsSocial functions are slightly altered – small numberof directly impacted people/householdsLonger than the project life (more than six monthsafter operations cease)For the duration of the projectFor the duration of the construction (or less thansix months)(The distances and durations will vary depending on the context.)138 Community Development Toolkit

Social Impact and12Opportunities Assessmentcontinued2. Populate the matricesThe potential impacts of the project areevaluated on the basis of a series of criteriain relation to magnitude, extent and durationas presented in Table 16. On the basis of theevaluation criteria, a level of significance(low, medium, high) is assigned to theidentified potential impact. The variouscombinations of evaluation criteria(magnitude, extent and duration) determinethe level of significance of the impact (low,medium or high) as presented in the table.It should be noted that this assessmentpresents an example evaluation of the levelsof significance of the impacts before andafter the implementation of mitigationmeasures. The level of significance of eachimpact has to be re-evaluated after theprojected implementation of the measures,as illustrated in Table 16.There are other aspects of impact analysisthat can be included in the SIOA process,for example the likelihood of an impactoccurring or the risk associated with notmitigating impacts. These additionalelements can help in deciding upon thepriorities for various impact mitigationprograms. The elements of the impactassessment process described here,however, are the most important and willenable the production of a feasible SIA.ASSESSMENT TOOLSCommunity Development Toolkit139

Table 16: Example of potential impacts/issues before and after mitigation measuresLandalienationAlienation ofagricultural andforest land forproject facilitiesDirect,negativeLocalHighMediumtermMediumWater qualityand sanitationDecrease inamenity ofdownstreamsurface andgroundwaterresources forpotable waterand bathingDirect,negativeLocalHighLongtermHighFisheriesDecrease inamenity ofdownstreamwater resourcesfor fisheries andaquatic faunaDirect,negativeLocalMediumLongtermMediumMinimize projectfootprintAvoid agriculturallandDevelopagricultural andforestry programswith communitybeneficiariesImplement watertreatment systemprior to dischargeImplement watertreatment systemprior to dischargeLocalLocalLocalMediumMediumMediumMediumtermLongtermLongtermMediumMediumMediumPotentialimpact/issueCauseNatureExtentMagnitudeDurationSignificanceMitigationactivitesResidualextentResidualmagnitudeResidualdurationResidualsignificance140 Community Development Toolkit

CASE STUDYContributing to community health and economic development throughimproved agricultural techniquesXstrata, PeruSummaryUntil recently, the limited success of agriculture and cattle production has been one ofthe main challenges faced by the rural communities around Xstrata’s copper mine in LasBambas, Peru. Thanks to a community development program instituted by the company,local communities living near the mine are now benefiting from agricultural improvementprojects that they have helped to identify, prioritize and implement.Context and challengeXstrata’s Las Bambas copper project was the company’s first operation in Peru. It islocated at an altitude of 4km above sea level, between Grau and Cotabambas – among thecountry’s poorest provinces. Local government capacity in the area is weak, for examplemany residents cannot receive even basic public services due to a widespread lack ofidentity documents and poor land registration.ASSESSMENT TOOLSAgricultural production was being compromised by lack of irrigation channels, poorgenetic breeding and parasites. Sheep were kept under a “free grazing” system thatcontributed to overgrazing in several areas. The company recognized that there was a riskto its licence to operate if it could not demonstrate the benefits of its presence to thepredominantly agricultural local community.ResponseThe company’s community engagement team consulted widely in order to respond to localneeds. Communities agreed priorities for action in open meetings and the companyarranged for training as part of the projects. This included modules on capacity buildingand institutional strengthening. Projects identified through this process included:• construction of irrigation systems in Pamputa, Huancuire, Pallca Picosayhuas, Chicñahuiand Choquecca and a cattle breeding program• guinea pig breeding and the establishment of hydroponic pasture farms in Fuerabamba• trout farming in Pamputa.OutcomesIrrigation systems were constructed and healthy cattle introduced to improve the localgenetic pool. A disease prevention system was established to protect the new cattle.Local people considered this project important for improving nutrition and health, as wellas providing a potential source of income from the production of dairy goods.The local community also identified the breeding of small animals as an effective meansof improving family nutrition, and increasing commercial capacity and income generation.A pilot guinea pig breeding project was undertaken by 10 families in Fuerabamba to testwhether improved guinea pigs could adapt to the altitude and whether families couldeasily adopt the new techniques required to breed this type of guinea pig.Community Development Toolkit➜141

CASE STUDY continuedContributing to community health and economic development throughimproved agricultural techniquesXstrata, PeruASSESSMENT TOOLSA nutrition baseline for the families was established during the year, guinea pig houseswere built, a hydroponic greenhouse was constructed for growing barley (an importantsource of vitamins for guinea pigs), and monthly training and capacity-building programswere undertaken with women and children.A second phase of the guinea pig project was then implemented – a partnership betweenLas Bambas and local NGO Caritas – and work started in the communities of Pumamarcaand Chuicuni to extend the project to 100 families.Xstrata Copper also signed an agreement with SENCICO to provide training for 200 localpeople in construction and masonry as a precursor to a trout-farming project in Pamputa.These people and a number of others were engaged mid-year to construct a six-pondrainbow trout farm under the leadership of an engineer and two construction specialists.The engineer prepared the drawings and managed the project while local people built theinfrastructure.Source: Xstrata – community engagement at Las Bambas, Peru. Available at:www.xstrata.com/sustainability/casestudies/community-engagement-at-las-bambas-peru/142 Community Development Toolkit

Social Impact and12Opportunities AssessmentcontinuedKey referencesThere are many references on SIA, and it is frequently a rather detailed process. This toolintends to give an outline of the broad processes involved. For greater detail, the followingsources will be useful:Aim for Human Rights, Guide to Corporate Human Rights Impact Assessment Tools, 2009.Available at:www.humanrightsimpact.org/themes/business-centre/hria-in-business/guide-to-corporatehuman-rights-impact-assessment-tools/ASSESSMENT TOOLSAsian Development Bank, Gender Checklist: Agriculture, 2006. Available at:www.adb.org/Documents/Manuals/Gender_Checklists/Agriculture/default.asp?p=genchckDanish Institute for Human Rights, Human Rights Compliance Assessment (HRCA) QuickCheck, 2006. Available at:https://hrca2.humanrightsbusiness.org/docs/file/HRCA%20Quick%20Check_English.pdfICMM, Good Practice Guidance on Health Impact Assessment, London, 2010. Available at:www.icmm.com/hiaIFC, Strategic Community Investment: A Good Practice Handbook for Companies DoingBusiness in Emerging Markets, Washington DC, June 2010. Available at:www.ifc.org/ifcext/sustainability.nsf/content/publications_handbook_communityinvestmentIFC, Strategic Community Investment: A Quick Guide, Highlights from IFC’s Good PracticeHandbook, Washington DC,February 2010. Available at:www.ifc.org/ifcext/sustainability.nsf/content/publications_handbook_communityinvestmentIFC, Guide to Human Rights Impact Assessment and Management, Washington DC, 2010.Available at:www.ifc.org/ifcext/sustainability.nsf/Content/Publications_Handbook_HRIAIFC, Introduction to Health Impact Assessment, Washington DC, 2009. Available at:www.ifc.orgIFC, Projects and People: A Handbook for Addressing Project-Induced In-Migration,Washington DC, December 2009. Available at:www.ifc.org/ifcext/sustainability.nsf/content/publications_resettlementCommunity Development Toolkit143

Social Impact andOpportunities Assessment12 continuedASSESSMENT TOOLSIFC, Good Practice Note: Addressing the Social Dimensions of Private Sector Projects,Washington DC, 2003. Available at:www.ifc.org/ifcext/sustainability.nsf/content/publications_resettlementInternational Association for Impact Assessment (IAIA), IAIA website, 2012. Available at:www.iaia.org/default.aspxMarch, C., Smyth, I. and Mukhopadhyay, M., A Guide to Gender-Analysis Frameworks,Oxfam GB, Oxford, 1991.Minerals Council of Australia, Socioeconomic Benefits and Impacts: An Assessment andPlanning Toolkit. Canberra, 2010. Available at:www.minerals.org.au/file_upload/files/resources/SEIBA-Toolkit-draft23August.pdfOxfam Australia, Guide to gender impact assessment, Melbourne, 2009.SIAhub, Social Impact Assessment website, 2012. Available at:www.socialimpactassessment.com/resources-references.asp144 Community Development Toolkit

Competencies Assessment13DescriptionIt is important to note from the outset thatgood community development is dependentupon having people with suitable skills andunderstanding to run programs, and ongiving community development staff thetraining support they need to perform theirjobs well. If responsibility for managingcommunity development is given to peoplewhose primary duties and expertise are inother areas, environmental science orhuman resource management for example,it is unlikely that community developmentprograms will run at optimal levels.The competencies assessment is a processfor measuring and recording the skills of anindividual or group. It is a highly flexible tool,which can be performed through a facilitatedworkshop process or an individual basis.PurposeTo identify additional resources, eitherpermanent or temporary, that you may needover time. This tool can be used for selectingconsultants for short-term or intermittentinputs to your programs as well as forchoosing permanent staff. This tool helpsyou to identify and develop the knowledge,skills and attitudes you need to ensure youhave the right team and resources toachieve your community development goals,whatever the size of your organization.It can also help you to assess the skillsavailable in an existing team or that the localcommunity possesses so that you canrecognize training and development needsfor staff and community membersas well as gaps to be filled by additionalpersonnel.Knowledge, skills and attitudesYou need a range of knowledge and skillsin your team to achieve your developmentobjectives (see Table 17). In general, youwould be looking for people with humanitiesor social science training or communityorganization experience to join your team.Direct knowledge of the local community andcultural context would be beneficial, butmore important is experience in workingwell with communities and the ability tograsp quickly the local issues. Yourassessment of people’s skills needs toinclude more than formal training, assomeone with appropriate experiencemay be more suitable than someone withthe right degree but little experience.When to use this toolThe competencies assessment is neededwhen forming your community developmentteam, as early as possible, ideally at thesame time that project construction plansare being made. If resettlement of localcommunities is required for the constructionof the mine and its infrastructure, thencommunity development expertise will berequired to plan and manage the relocationprocess. Then, as the scale of operationalactivities increases, it may be necessary toexpand the team to cover additional areasof community development activity, forexample you may need to hire a smallbusiness development expert. You mayalso need to include additional expertisewhen planning for closure, and certainlywhen implementing closure plans whena combination of experience and localknowledge is essential.In other words, use this tool as early aspossible. Then, re-evaluate the team asneeds evolve.ASSESSMENT TOOLSCommunity Development Toolkit145

Table 17: Knowledge, skills and attitudes for community developmentKnowledge Skills AttitudesDescriptionCommunity development demands a broadbase of knowledge in many areas – forexample, local social conditions anddynamics of change, institutionaldevelopment, economic development,program design and management, etc.It includes both basic information, how toacquire it and the ways in which you applythis information.Skills help you move from knowledge toaction. They are learned, practical andrepeatable processes through which youachieve positive outcomes.Skills do not need to be well developedat the beginning of the communitydevelopment process but, as you movefrom planning to implementing andsustaining action, the demands on yourskills will increase.Attitude – the spirit or perspective fromwhich you approach community development– shapes your decisions and actions. It iscritical to building trust, and in empoweringlocal communities.Attitude may be individual, may be evidentwithin groups or may be commonthroughout the organization.Key pointsUnderstanding of:• community needs, priorities and values• social and economic development andnatural resource management• partnership brokering and maintenance• group processes and dynamics• project management• financial management• team-building and team management• problem-solving and decision-making• training and skills development• organizational development and designDemonstrated capacity in:• planning and program design• research, assessment, analysis andevaluation• team building, staff and financialmanagement• communications, consultation andfacilitation• problem solving and conflict resolution• organizational design and developmentRespect for:• local people and communities• development as a social process, notsimply dependent on technical skills andexpertise• the value of process and sustainability –not quick results• local empowerment and development• local knowledge and perspectives• facilitation – not leadership• new ideas, approaches andopportunities• patience, flexibility, resilience andperseverance• constructive criticism and self-evaluation146 Community Development Toolkit

Competencies Assessment13continuedHow to use this toolThe tool can be used by an individual orcollectively by a team. It enables you to listrequired skills, estimate the level ofexpertise needed for each skills area andassess your current level of skills againstyour requirements. You can then take stepsto fill any gaps you have identified in thecompetencies assessment process.STEP 1As an individual, if you are a singlecommunity development worker, or in ateam if there are several of you, thinkabout the predicted impacts of youroperation and the baseline conditions ofthe local communities (from tools 11and 12). Consider what areas of communitydevelopment programs you expect tobecome involved in, for example mechanicaltraining, women’s microenterprises,agricultural extension, community health, etc.STEP 2Having listed likely program areas, considerthe role that could best be played by yourteam, for example would your team actuallyrun training programs for mechanics, orwould you work with a local vocationaltraining school to help them upgrade theirservices? Decide whether you need technicalskills, training skills or organizationaldevelopment skills, then list the full rangeof skills your team will need.STEP 3Write the list of required skills in the centralcolumn in Table 18.STEP 5Assess the levels of skills and knowledgepossessed by you and/or your colleaguesin the right-hand column.STEP 6Compare the results of the left- and righthandcolumns and make note ofdiscrepancies, for example you may haveestimated that you need a small businessexpert, with level 3 knowledge and skills,but your team has only level 1 knowledge inthis area, or none at all. This means thatyou may need to either hire an extra teammember or a consultant or have one ofyour existing team trained in extra skills.You might also decide that it would be bestto team up with a local organization thatoffers the requisite skills, such as a vocationaltraining school, rather than hiring theexpertise yourself.STEP 7Collate the gaps identified in the audit andthen make an assessment of what actionsyou need to take to make your team effectiveand ensure that the necessary support foryour programs is available.STEP 8Prepare a training needs list and a humanresources request list, to be presented tothe relevant administration people in yourorganization. In addition, list the rangeof consultants you will need to hire fortemporary inputs and the kinds oforganizations you might need to formlinks with.ASSESSMENT TOOLSSTEP 4Estimate the level of expertise desired inthose required skills and record it in theleft-hand column.Community Development Toolkit147

Table 18: Competencies assessment worksheetRequired skill level Skills Existing skill levelLevel of expertise, knowledge or understandingrequired to perform effectively in roleSkills area (e.g. there may be others] Actual level of expertise, knowledge orunderstandingNo expertise High expertiseNo expertise High expertise0 1 2 30 1 2 3✓✓✓✓✓✓Planning and program designResearch, assessment, analysis and evaluationTeam building, staff and financial managementCommunications, consultation and facilitationProblem solving and conflict resolutionOrganizational design and development✓✓✓✓✓✓The example lists general skills forcommunity development department staff.The results of that team assessment wouldbe that additional expertise is required in theproblem solving and conflict resolution area,so a consultant may be required for that.In addition, either a new team member withhigher-level skills in communications,planning and organizational design may beneeded, or current staff may need additionaltraining in those fields.148 Community Development Toolkit

An example for a person or organization witha specific technical skill, such as the smallbusiness expertise mentioned in step 6,might look like this:It is likely that a new team member or longtermconsultancy or partnership may beneeded to fill this gap. Upgrading currentstaff skills from level 1 to level 3 by trainingwould probably take too long to be effective.Required skill level Skills Existing skill levelFrom new team member or consultantSkills area In current teamNo expertise High expertiseNo expertise High expertise0 1 2 30 1 2 3✓✓Small business developmentTraining and skills transfer✓✓Community Development Toolkit149

Competencies Assessment13continuedASSESSMENT TOOLSKey referencesDFID, Tools for Development: A Handbook for Those Engaged in Development Activity, 2003.Available at:www.dfid.gov.uk/Documents/publications/toolsfordevelopment.pdfZandvliet, L. and Anderson, M. B., Getting it Right: Making Corporate-Community Relations Work,Greenleaf Publishing, Sheffield, 2009, Chapter 13.150 Community Development Toolkit

Methods and approaches formitigating potential negativeimpacts and enhancingbenefits to maximizecommunity developmentMANAGEMENTTOOLS

MANAGING COMMUNITYDEVELOPMENT PROGRAMSAFTER THE COMMUNITY ANDPARTNERS HAVE DESIGNEDTHEM IS VERY IMPORTANT.EVEN WELL-DESIGNEDPLANS MAY FAIL IF NOTWELL MANAGED.Image courtesy of Lonmin

Management toolsTOOL 14TOOL 15TOOL 16TOOL 17TOOL 18Community Development Agreements155A flexible approach to voluntary agreement making betweencompanies and communities, to help ensure that communitydevelopment programs or initiatives achieve successful outcomes.Management Systems161An integrated management system could be a set of policies andprocedures and traditional hard-copy registers for recording andreporting on their use and implementation or it can be a modern,electronic system for performing the same tasks. Using anintegrated management system helps a company to assesswhether sufficient resources are being allocated to the rightfunctions at the right time.Community Action Plans165The community action plan (CAP) is a detailed plan forimplementing solutions to the problems that have been identifiedduring the participatory planning process. It will become themanagement plan both for the community and its developmentpartners, and will be adjusted to suit circumstances and changingcommunity priorities as time passes.Local Economic Investment173For long-term community and economic viability and sustainablecommunity development, it is vital that efforts be made to helpdiversify local economies. Mining activities can play a crucialcatalytic role by both ensuring that companies purchase goodsand services locally and also in encouraging a diversification ofthe local economic base. Companies can also foster the equitabledistribution of mine-stimulated benefits by ensuring that theirprograms provide opportunities to women and vulnerable and/ormarginalized groups.Resettlement Planning179In most jurisdictions, and by all measures of good practice, it isnecessary to ensure that any people physically or economicallydisplaced by mining activities have their assets and livelihoodsreplaced, and even improved. This will include communal,community and public assets if they are affected. This is a complexand highly specialized field and a mining project should seriouslyconsider engaging specialized and experienced consultants tomanage the process for a resettlement process of any size largerthan a few households.Community Development Toolkit153

Management toolscontinuedMANAGEMENT TOOLSGuidance for usingmanagement toolsManaging community development programsafter the community and partners havedesigned them is very important. Even welldesignedplans may fail if not well managed.The beneficiaries of the plan, the communitymembers, must be well represented in themanagement structures for communitydevelopment plans; indeed, they mustmanage the plans, with appropriate supportfrom donors, companies, governmentagencies, etc. These plans can be built intothe content and implementation ofcommunity development agreements. This isequally important with wide-reaching planssuch as those needed for resettlement,regional co-ordination, influx managementand cumulative impact management. Thismay be by means of a multi-stakeholdercommunity development committee, orcommunities may establish their ownmanagement groups and consult withexternal supporters as needed. Ownershipof the plans, time-bound commitments andpeople agreeing to take responsibility arekey factors of success.As mining company staff, you must workwith community members to help themmanage their own plans. Providingopportunities for community managementcapacity building and moral as well asfinancial support for community efforts aremajor roles that companies can play. This iskey in important planning processes suchas resettlement, regional co-ordination,influx management and cumulative impactmanagement, where there may be ashortage of local expertise and experience.Training programs in management methodsare essential elements for buildingcommunity and company staff capacitywhere needed.Government officers, NGOs/CBOs andcommunity members may also find thesetools useful, both to inform theirparticipation in company-led processes andto implement themselves. As the recipientsof community development programs,community members have a key role inensuring that these programs are wellmanaged and that they deliver on theaspirations of the community, wherepracticable. Through using some of thesetools, government officers may be betterplaced to identify and access regional andnational funding to support local priorities.154 Community Development Toolkit

Community Development14AgreementsDescriptionCommunity development agreements,derived through good faith negotiations,have the potential to help support theachievement of socio-economic developmentoutcomes. The potential value of suchvoluntary agreements within the miningsector has been an area of discussionbetween practitioners for some time andagreements between mining companiesand Indigenous Peoples have been commonpractice for several years, especially withinAustralia and Canada. This is an area thathas increasingly become the subject ofdiscussion and debate as moves towardsa regulatory approach have been exploredor advocated by a number of actors(e.g. the World Bank and some developmentNGOs).While recognizing that there are potentialpitfalls to regulating in this area, 39 thepotential benefits of voluntary agreementmaking in situations beyond those whereIndigenous Peoples are present areincreasingly being recognized. For example,such agreements can form a basis forstructured engagement between companiesand communities around matters of mutualconcern, in pursuit of mining projects thatdeliver mutual benefit. The process ofagreement making (and necessary follow-upengagement) can also help to supportmutual understanding and diffuse tensionsbefore they arise, provided that it isapproached in a respectful manner by allparties. In addition, it provides an effectivemeans for administering not just communitydevelopment activities, but also relatedaspects such as mitigation andcompensation.PurposeTo outline a flexible approach to voluntaryagreement making between companies andcommunities, to help ensure that communitydevelopment programs or initiatives achievesuccessful outcomes, or that social andenvironmental mitigation and compensationefforts are effectively handled.When to use this toolThis tool should be used at any stage wherecompanies find themselves engaged inconversations around matters that wouldbenefit from a structured agreement-makingprocess (which often occurs relatively earlyin the life of a project). Subsequently, theapproach outlined is applicable throughoutthe mining and metals project life cycle,where agreements are being entered intoand implemented.How to use this toolUse this tool as a basis for negotiationsbetween companies and communitieslooking to put voluntary yet formalagreements in place to govern theirinteractions around communitydevelopment programs or initiatives.MANAGEMENT TOOLS39 Common pitfalls of a regulatory approach include (i) its inherent inflexibility, (ii) the inability to address localdevelopment issues or link to local processes, (iii) the reality that regulation can lead to compliance/positionalmindset as opposed to encouraging interest-based negotiations and (iv) the risks of delegating developmentalresponsibility to companies rather than government.Community Development Toolkit155

14Community Development AgreementscontinuedMANAGEMENT TOOLSSTEP 1Establish the basis for successfulnegotiationsCompanies should recognize that successfulagreement making is critically dependenton ensuring that the negotiations that arecentral to reaching agreement arecharacterized by a positive set of attributes.In practice, this means establishingnegotiations that are:• Interest based rather than positionalTo establish a shared understanding ofthe individual and shared interests ofcompany and community should involveconsideration and acknowledgement ofthe rights of all parties.• Grounded in inclusivity of processIf genuine progress is to be made in amanner that addresses the interests andaspirations of all parties, agreement-makingprocesses must involve not only communityleaders, but also representation for groupsthat may otherwise be marginalized.• Legitimate and trustedWhatever form the negotiations take, theymust have legitimacy in the eyes of partiesand be trusted. In practice, this may meanworking with or adapting local or traditionaldecision-making processes, rather thanimposing an unfamiliar process. It alsomeans conducting negotiations in a spiritof openness and information sharing.• Transparent between the partiesAt a minimum, the negotiation processand decision-making authority must betransparent to the parties concerned,while respecting legitimate interests of theparties on matters they may wish to remainconfidential. This involves up-frontthinking about (and agreement on) whatshould or should not be disclosed to theparties to a negotiation or otherstakeholders, and at what stage.• Focused on the stability andsustainability of outcomesFocus on achieving stable and sustainableoutcomes for long-term benefit, ratherthan on short-term fixes that lack thesustained support of the parties neededto underpin success.• Context specificThe rationale for focusing on attributesrather than prescriptive approaches isthat negotiations must be adapted to localconditions and realities – there are noboilerplate solutions that will fit allcompany–community interactions.• Predictable in terms of processWhile the outcomes of negotiations willinvariably be unpredictable, it is importantthat the process steps towards reachingagreement are clearly understood andagreed between the parties – and thatthey are adhered to unless changes aremutually agreed. Establish a time framefor the agreement-making process whichis acceptable for all parties.• Fair and equitable (for participants)Recognizing that there may beasymmetries between the parties in termsof their knowledge or ability to effectivelyengage in negotiations, it is incumbent onthe company to offer support (on an asneededbasis) to ensure that communitiescan effectively engage in the process.Failure to do so makes it more likely thatthe process will result in agreements thatare open to challenge and become asource of discontent.156 Community Development Toolkit

Community Development Agreements14continuedSTEP 2Understand the contextPrior to entering into formal agreementnegotiations, consider: (i) the rights ofcommunities to control the use anddevelopment of land and subsurfaceminerals and (ii) any legal and proceduralrequirements (including royalty arrangements)that apply to company–communityagreements. Establish who in the communityhas the authority to negotiate on behalf ofthe community and who else should beincluded in the process.STEP 3Establish the overall aims of the agreementEnsure both parties have a thoroughunderstanding of each other’s objectives,needs and the potential impacts of theproject. Drawing on baseline studies, socialimpact studies and consultations withcommunities, the company should strive tounderstand the aspirations, concerns anddevelopment needs of the community.These will vary depending on the context.Clearly communicate company objectivesand plans to ensure the agreement isrealistic and achievable. Ensure risks andthe opportunities associated with the projectare well understood. Establish long-termobjectives and revisit them throughout thenegotiation process and beyond.STEP 4Build understanding and respectAllow time for building relationships beforeembarking on formal negotiations. Apply theprinciples of “good faith negotiation”,establishing where points of disagreementand agreement lie and what the options arefor resolving disagreements. Recognize thatthere may be asymmetries in informationand unbalanced negotiating power betweenthe parties involved.STEP 5Build knowledge and capacityEnsure information on needs and objectivesis presented in a meaningful way.Negotiations should be conducted on alevel playing field with no party feelingdisadvantaged.STEP 6Manage internal disagreementsResolve internal company tensions anddisputes prior to negotiating withcommunities. Ensure relevant departmentsand employees are kept aware of the issuesunder discussion and the company’sposition.STEP 7Establish potential components ofagreementsThe components to be included in anagreement will vary depending on thecontext, the goals and aspirations of theparties to the agreement and theirperception of what is fair and reasonable.Some of the issues that companies maywish to consider including are:• financial payments and disbursementarrangements• employment, training and contractingopportunities• environmental, social and cultural impactmanagement• governance arrangements• land access arrangements• engagement mechanisms• reciprocal obligations and what actionshould be taken if either side does notfulfil their obligations.MANAGEMENT TOOLSCommunity Development Toolkit157

14Community Development AgreementscontinuedMANAGEMENT TOOLSSTEP 8Implement the agreementPlan thoroughly for implementation.To support implementation, companiesshould ensure:• agreement obligations are fullydocumented in an accessible form• responsibility for implementing differentcomponents of the agreement is allocatedat an early stage and people know what isexpected of them• someone within the organization hasoverall responsibility for the ongoingmanagement of the agreement• an up-to-date register is maintainedindicating what action has been taken, isin train or proposed to address specificagreement obligations• action plans are aligned with theagreement• there is ongoing internal monitoring ofcompliance• capacity building remains a focusthroughout the life of the agreement,recognizing that both company andcommunity personnel involved inmonitoring and implementation willchange over time.STEP 9Set up appropriate governance processes,which include monitoring and reviewrequirementsPerformance should be monitored againstthe aims of the agreement. Companiesshould be prepared to change practiceand/or the agreement where necessary.Effective implementation requires that theaims of the agreement are constantlyconsidered.158 Community Development Toolkit

Community Development Agreements14continuedKey referencesCentre for Social Responsibility in Mining, EI Source Book, Good Practice Note: CommunityDevelopment Agreements, University of Queensland, 2011.www.eisourcebook.org/cms/files/csrm_good_practice_notes_on_cdas_document_final_260911.pdfMANAGEMENT TOOLSSustainable Development Strategies Group, public library of materials related to CommunityDevelopment Agreements (CDA) between resource companies and local communities.www.sdsg.org/archives/cda-libraryCommunity Development Toolkit159

14Community Development AgreementscontinuedMANAGEMENT TOOLS160 Community Development Toolkit

Management Systems15DescriptionIntegrated community developmentmanagement systems can help communitydevelopment personnel manage theactivities required to implement successfulcommunity development programs.An integrated management system willnormally entail a set of policies andprocedures, registers of training, astakeholder database, a complaintsregister, a commitments register andreporting frameworks. These can be inhard copy or, more typically, in electronicformats. 40Integrating community developmentmanagement with the managementprocesses of the rest of the mine andcompany may involve participation inproject- and corporation-wide committees,communication throughout the companyand with external stakeholders, andreporting. The essential element is for thecommunity development team to activelyengage across the board within thecompany, however it may be structured.PurposeDevelopment and implementation of anintegrated management system ensures thatcommunity development activities apply the“plan, do, check, act” process common toISO standards. Management systems addrigour to processes that you may alreadyhave been undertaking through formalizingexisting processes and allowing them tobe audited.When to use this toolAn integrated management system shouldalways be used. It should be established asearly as possible in the life of a mining andmetals project, used daily, maintainedcontinuously, monitored regularly andrevised and improved as needed. Quarterlyreviewing and annual updating/upgrading ofthe system should be sufficient to ensurethat it is kept in good working order.How to use this toolThe explanation below details thefundamental aspects of an integratedcommunity development managementsystem.MANAGEMENT TOOLSSTEP 1Using the knowledge base of your localand regional communities (tool 11 SocialBaseline Study) and other stakeholders(tool 1 Stakeholder Identification), and thecommunity development vision of yourdepartment (tool 6 Strategic PlanningFramework), produce policies to supportthis approach.40 Though this list is not exhaustive, some electronic systems that companies may wish to consider are Borealis(www.boreal-is.com), SQL (www.sqleffects.com) and Q-Pulse (www.q-pulse.com).Community Development Toolkit161

15Management SystemscontinuedMANAGEMENT TOOLSSTEP 2Develop procedures to implement thepolicies. Engage stakeholders in anyprocedures that affect them (such as tool 5Grievance Mechanism) and ensure that theyare aware of these procedures and knowhow to use them if needed. Ensure thatresources are available for departmentalstaff to implement all procedures throughthe project/corporate budgeting processes.Ensure that adequate budgets are availableto provide training in how to use andimplement procedures for staff and alsofor community members, if appropriate. 41STEP 3Plan and implement communitydevelopment programs in partnership withlocal communities and other stakeholderpartners. Keep records of program activities,and gather data for measuring progressusing selected indicators, ideally inco-operation with community partners andother stakeholder partners, such as NGOs.STEP 4Monitor and evaluate the programs(use tools 19–20) and report to companymanagement and stakeholders. Adjustprograms as necessary from reviewingthe evaluations, including inputs fromstakeholders.Revise stakeholder lists, baseline data,grievance procedures, etc. in light of lessonslearned from evaluating monitoring dataand from input from stakeholders.41 For guidance on co-ordination with wider business plans, see pages 12 and 32 of Minerals Council of Australia,Socioeconomic Benefits and Impacts: An Assessment and Planning Toolkit. Canberra, 2010. Available at:www.minerals.org.au/file_upload/files/resources/SEIBA-Toolkit-draft23August.pdf162 Community Development Toolkit

CASE STUDYIncorporating impact assessment into the ongoing management of operationsAnglo American, worldwideBackground and methodologyMost large mining and metals companies undertake environmental and social impactsassessments (ESIAs) prior to the development of new projects. These assessments areoften prompted by requirements from investors and/or regulators. An importantobjective is to help ensure that effective management of social and environmental issuesis built into the physical design and incentive structure of the mine from the outset.Anglo American recognized that there was a need for ongoing socio-economic impactassessment and engagement to be implemented at producing operations.In 2003, its Socio-Economic Assessment Toolbox (SEAT) was launched, which allowedmines to assess current social and environmental impacts and identify and respond tothe broader developmental aspirations of host communities, in line with internationalbest practice and in close consultation with local stakeholders.MANAGEMENT TOOLSFollowing a consultation stakeholder engagement process, SEAT guides managers throughthe process of developing a publicly-available management action plan. Business unitsare encouraged to collaborate closely with local stakeholders in developing this actionplan. Subjects covered by the toolbox include stakeholder identification, calculating totalemployment from the operation, assessing performance in relation to corporate policiesand establishing partnerships. Each SEAT assessment takes around four months toconduct. The toolbox was intentionally designed to be accessible to general businessmanagers. External organizations have, however, been brought in to help local businessunits undertake the process, for example the NGO Casa de la Paz helped the company’soperations implement SEAT in Chile.OutcomesLaunched in 2003 and enhanced in 2007 and 2011/12, SEAT has been implemented atall of the company’s mining locations. One of the main lessons emerging from SEATimplementation is the need to address community perceptions of adverse impacts, evenwhen these are not well founded. In addition, a number of substantive issues haveemerged frequently from SEAT applications, including access to jobs and training,access to land and alternative livelihoods, access to supply chain opportunities, andthe balance and distribution of social investments. In terms of implementing the processitself, managing rivalries between stakeholder groups has been identified as a particularchallenge.One of SEAT’s main strengths has been to help professionalize the approach of operationalmanagers to managing social issues. Where social investment and philanthropycharacterized many community development efforts in the past, business units have beenencouraged to treat management of socio-economic impacts with the same degree ofdiscipline and attention as, for example, health and safety, or recruitment. SEAT has alsohelped shift the focus of socio-economic development contributions towards core businessactivities, such as local procurement, workforce development and delivering mineinfrastructure in a way that also benefits local communities.Community Development Toolkit➜163

CASE STUDY continuedIncorporating impact assessment into the ongoing management of operationsAnglo American, worldwideMANAGEMENT TOOLSAll the company’s significant operations are now required to undertake SEAT assessmentsevery three years. Training on SEAT implementation takes place on an ongoing basisacross the company, and to date over 600 managers have been trained (staff from externalNGO or government partners represents around 15% of this figure). The toolbox hasemerged as the centrepiece of the company’s approach to community development andhas been highly commended by a number of external organizations. For example, SEATwon the International Association for Impact Assessment’s (IAIA) 2012 “Corporate InitiativeAward”. IAIA hailed SEAT as “a unique attempt by a major mining company to incorporateimpact assessment into the on-going management of major operations”. 4242 www.icmm.com/page/70711/anglo-american-wins-international-award-for-socio-economic-assessment-toolbox-seat164 Community Development Toolkit

Community Action Plans16DescriptionPRA exercises aim to establish detailedcommunity action plans (CAPs). Takingcommunity members through the steps ofparticipatory assessment and planning (seetools 6–13) enables them to analyse theirsituation, gain confidence in their own abilityto understand the cause of their problems,devise solutions to them and design adetailed plan for future action. CAPs notonly list actions that need to be taken forcommunity development, they also statewho should undertake those activities (bothcommunity members and external partners)and dates by which actions need to beundertaken. They provide a reality check forcommunity expectations, as the process ofallocating responsibilities, deadlines andresources required should make it clearwhen too much is being expected from oneperson, one donor or in too short a timespan. CAPs provide detailed work programsboth for the community, who own the plan,and for development partners.Communities should be encouraged to takea long-term perspective in their developmentplanning, aiming for sustainability after themining and metals activity has finished.Community development planners shouldalso take into account the environmental orbiodiversity impacts of the programs theydevise, as economic success is not the onlycriterion for sustainable futures. It may bedevelopment partners who introduce thesesustainable development parameters intodiscussions with community members whenworking upon collaborative programplanning to align corporate communityinvestments with community andgovernment plans.Initial CAPs will be fine-tuned, modified andupdated as communities and their programpartners go through the implementationprocess. Early versions of CAPs will likelyfocus on problems requiring immediateaction. As time passes, and communitiesbecome more confident in their ability tomanage their development agenda incollaboration with program partners, itwould be a good idea to emphasize postclosureplanning. By the time a mine closes,the communities’ development plans shouldinclude the mining company as only one ofa range of partners, as they should havemoved beyond dependency on the miningproject for financial support.Above all, participatory assessment andplanning is an ongoing process andextremely interactive. CAPs are not drawnup for development experts to implementor for gaining community acquiescence inpreordained plans. As a dynamic system,PRA is subject to “growing pains” andsetbacks as well as successes. It is thesedevelopmental stages, however, thatenable participatory planning to eventuallybring about a mutually respectful andco-operative working relationship betweencommunities and their partners in thedevelopment process – government, NGOsand resource companies.MANAGEMENT TOOLSCommunity Development Toolkit165

16Community Action PlanscontinuedMANAGEMENT TOOLSPurposeTo act as a template for future planningactivities by the community and to serve asa record of how much they have achievedduring the participatory assessment andplanning activities. It is the basicmanagement tool for the community’sdevelopment program. Through producinga CAP, community members are providedwith a set of community-developed andcommunity-endorsed goals, activities andtimelines to enable them to achieve theirdevelopment objectives. The communityowns the plan and it also provides memberswith a list of partners to follow up with forhelp in achieving these objectives and targetdates to work towards. Simultaneously, theCAP provides you, as a development partner,with a clear understanding of communitypriorities and development objectives, so youdo not need to guess what the communityneeds and can align your programs formaximum synergy with the CAP.When to use this toolFollowing on from the PRA exercisesdetailed in previous sections. Specifically,the results of the Development OpportunityRanking (tool 9) feed directly into theCAP process, as action plans need to bedeveloped for the implementation of thepriority opportunities identified. CAPs shouldbe reviewed as frequently as any otherdevelopment plan, that is as circumstanceschange or at least once a year. The project’smonitoring and evaluation system (seetools 19–20) should check whether CAPsare being implemented and suggestwhether revisions are required.166 Community Development Toolkit

Community Action Plans16continuedHow to use this toolThis exercise is usually done in a communityworkshop, when all interested communitymembers are invited to participate inplanning for community development.The mining company can initiate andunderwrite this workshop, in collaborationwith key local stakeholders. As broad arange of participants as possible should beinvited, including representatives from thepublic sector. Efforts should be made toensure that women, youth, the elderly anddisabled are enabled to participate and anycultural or religious minority groups mustalso be fully represented. Experiencedfacilitators who understand how toencourage community members to take thelead are the best people to manage theproduction of CAPs. These facilitators shouldalso have a good knowledge of communitydevelopment processes and of successfulprograms elsewhere so that they can offerideas and suggestions to broaden the scopeof the plans where necessary.There are six principal steps in developinga CAP for a specific problem. The sameprocedure should be followed for each of theselected opportunities. The specific plans canthen be combined to form an overall CAP forthe community. The community may wish toframe its planning process in a strategicplanning framework, as outlined in tool 6,including the community’s vision, communitydevelopment mission statement, goals,purposes, outputs and inputs.STEP 1State the specific objective that will addressthe identified issue.STEP 2Develop a list of activities that must beundertaken to achieve the objective.STEP 3Decide who in the community or whatunit/agency is most appropriate to undertakeeach activity.STEP 4Decide when the activities are to be done.STEP 5Decide what resource and budget will beneeded for each activity and who willcontribute resources.STEP 6Name who will take responsibility forensuring that the plan is implemented.The CAP then becomes the managementtool for community development activities, tobe managed by the community with supportfrom company, government and NGOpartners. Part of the management processesfor the CAP will include selecting indicators(tool 19) for monitoring and evaluation ofprograms and reporting to communitymembers and development partners onprogram challenges and achievements.See Tables 19 and 20 for examples of CAPs.MANAGEMENT TOOLSCommunity Development Toolkit167

Table 19: Example of CAP for improved crop farming from a single Tanzanian villagePROBLEM LOW CROP PRODUCTIONOpportunity ActionsResources needed Who will provide Date to start Who will follow upImproved farming4.1aA. Use of manure• Cattle• Households concerned Ongoing• James A.• Carts• Logs• Bicycles• Hand hoes• Company/community,Tsh 50,000/150,000• Agriculture andlivestock department• Tatu M.• Petro S.• Bags• Advice/expertise4.1bB. Other actions• Hand hoes• CommunityDecember 2000 • Mizi ya chuma• Terracing agriculture • Use of oxen• Agriculture department• Wilson N.• Use of farm inputs• Extension service advice• Non-grazing on farms• Improved seeds(2kgs @ Tsh 3000/-)• Money• Agricultural shops168 Community Development Toolkit

CAPs from adjoining communities may becombined to form the basis of district orregional plans.Table 20: Example of plans from several Tanzanian village CAPs combined to form district educational action planPROBLEMOpportunityTotal cost Community contribution % of total Donations neededPOOR EDUCATIONVillage 1Construction of 4 classrooms(1 in 2001)Tsh 4.5mTsh 1.0m – villagersTsh 0.5m – village govt33%Donor – Tsh 1.0mDC – Tsh 1.0mVillage 2Construction of school buildings(1 classroom, 1 staffroom, 1 pre-primary)Tsh 12.5mTsh 3.0m24%Donors – Tsh 6.0mDC – Tsh 3.5MVillage 3Building 5 classroomsTsh 22.5m Tsh 2.0m (already done) As required by EFG EFG – Tsh 20.5mVillage 4Construction of 2 classrooms and1 pre-primaryTsh 9.0mTsh 2.0m – cashTsh 1.0m – labour22%Donor – Tsh 5.0mDC – Tsh 2.0mTotal needed from donors: Tsh 12.0mFrom district council (DC): Tsh 6.5mFrom national government (EFG): Tsh 20.5mNote that the community has pledged tocontribute between 22% and 33% of thefunds needed, and labour in some cases.Community Development Toolkit169

CASE STUDYParticipatory planningResolute Mining Limited, Nzega District, TanzaniaMANAGEMENT TOOLSSummaryResolute’s Golden Pride Gold Project inthe Tabora region of western Tanzaniawas the first modern gold mine tocommence operation in Tanzania when itbegan to produce gold in November 1998.The communities close to Golden Pride inNzega District depended on subsistencefarming and suffered from a lack ofinfrastructure and income-generatingopportunities.Resolute, an Australian company, tookmeasures to alleviate some of the mostimmediate features of the poverty it saw,rehabilitating and equipping the localschools, supplying uniforms, books, desksand trees for fruit to supplement thechildren’s diet. Gradually, the companyrealized that it would be more effective inthe long term if communities could beencouraged to empower themselvesand take responsibility for their owndevelopment plans. The company couldthen join in with community-motivatedand community-initiated projects insteadof trying to ascertain from outside whatthe communities needed.Participatory planning methods usedin Nzega District• Community mapping• History• Seasonal calendar• Gender daily calendar• Problem ranking• Options assessment•CAPFor this reason, Resolute decided toconduct a participatory planning programat the end of 2000 in the four communitiesclosest to the mine’s perimeter – Isanga,Mwaluzwilo, Bujulu and Undomo – toencourage communities to develop theirown community action plans (CAPs).Community members were delighted tobe asked what they lacked, what theyneeded and to be assisted to devise theirown plans. Once they overcame theirinitial shyness with the unfamiliar process,each community embraced the opportunityto develop a CAP and put a great deal ofeffort into ensuring the project wascompleted.Four years after starting their CAP, theseresidents of Nzega District, Tanzania,have taken charge of their own communitydevelopment programs. Here, village menare seen working on a school building ona Sunday, completely independent of anyexternal motivation.(Photo. C. Macdonald)Source: C. Macdonald, URS and F. Kyessi, Resolute Mining Limited170 Community Development Toolkit

Community Action Plans16continuedKey referencesNational Environment Secretariat, Government of Kenya; Clark University; Egerton University;and the Center for International Development and Environment of the World ResourcesInstitute, Participatory Rural Appraisal Handbook: Conducting PRAs in Kenya, Kenya, 1991.Oduor-Naoh, E. et al. Implementing PRA: A Handbook to Facilitate Participatory RuralAppraisal, Program for International Development, Clark University, Worcester, MA, 1992.MANAGEMENT TOOLSRietbergen-McCracken, J and Narayan, D. (compilers), Participation and Social Assessment:Tools and Techniques, International Bank for Reconstruction and Development/World Bank,Washington DC, 1998.World Bank, The World Bank Participation Sourcebook, Washington DC, 1996,Appendix 1: Methods and tools for social analysis, pp. 199–202.Community Development Toolkit171

16Community Action PlanscontinuedMANAGEMENT TOOLS172 Community Development Toolkit

Local Economic Investment17DescriptionOne of the main benefits a mining and metalsproject can bring to an area is economicstimulus. There may be few other economicdrivers in places where mines are developed,making the mine a focal point for localeconomic activities. Often, the main benefitsthat local people hope for are economic – jobsand the ability to sell their products to themine, and significant expectations often arisearound both of these potential benefits. Minesneed to take care not to create a dependencyscenario, however, where all local economicactivities are centred upon their needs.Companies will need to ensure that theirapproach to local economic investment iscross-functional across departments. It isimportant that departments work towards ashared objective, especially if there are tensionsbetween the supply team who are concernedwith cost efficiency and the community relationsteam’s focus on community development.For long-term community and economicviability and sustainable communitydevelopment, it is vital that efforts be madeto help diversify local economies. Companiescan play a crucial catalytic role both inensuring that they purchase local goods andservices and also in encouraging diversificationof the local economic base. They can alsofoster the equitable distribution of minestimulatedbenefits by ensuring that theirprograms provide opportunities to womenand vulnerable and/or marginalized groups.PurposeTo enhance the benefits delivered by yourproject at a local level. This can be throughthe comparatively short-term employmentbenefit or through building capacity of localbusinesses to supply the goods and servicesneeded by the mine and to develop a diversityof other products and markets that can sustainthe local economy and community after themine has closed.When to use this toolThe groundwork for local economicinvestment activities should commenceduring the feasibility stage to drivebehaviours among contractors and sothat local businesses will be ready tosupply goods and services when the mine’sneed for products and services ramps upfor construction. By encouraging/requiringa proportion of local employment withinyour workforce during the construction period(at which time the greatest number ofworkers are employed), you can help builda skill set locally that can supply the minein operations. Similarly, helping localbusinesses survive the transition to thesteady state of operations, when demandmaybe lower but more stable than duringconstruction, will be necessary. Providingsupport for companies and individuals todevelop sustainable businesses notdependent upon your project will be aconstant priority. If successful, as timepasses, there will be new people andbusinesses needing support as theirpredecessors achieve viability and theygraduate to independence.How to use this toolTo implement this tool it is necessary tofirst determine the community investmentstrategy internally within the company.Based upon the approach defined in thestrategy, and then shared with and supportedby community stakeholders, you candetermine how to go about determiningopportunities for local economic investment.The IFC’s Strategic Community Investment:A Good Practice Handbook for CompaniesDoing Business in Emerging Marketsprovides a good starting point forsuggestions on how mining companies canestablish an effective set of local economicinvestment programs. Published in June2010, the handbook provides comprehensiveMANAGEMENT TOOLSCommunity Development Toolkit173

17Local Economic InvestmentcontinuedMANAGEMENT TOOLSadvice about the many elements that needto be considered, including the company’sown strengths and priorities, communitypriorities, local economic capacity,appropriate means of assistance and amultitude of other useful aspects. 43For the IFC, strategic community investment(CI) involves voluntary contributions oractions by companies to help communitiesin their areas of operation address theirdevelopment priorities, and take advantageof opportunities created by privateinvestment, in ways that are sustainableand support business objectives.STEP 1Define localTo prioritize local economic investment, youfirst need to consider what “local” will meanin this context. The definition of local youapply to your recruitment procedures islikely to be different from the definition youuse for procurement, but at this first stepyou need to engage with the communityrelations team (and draw on the outcomeof tool 1 Stakeholder Identification) to agreeon the parameters you might consider for“local”. This might be a physical distancefrom the project, a distinction betweenimpacted and non-impacted communities,a political or administrative region, etc.STEP 2Increase local contentOne quick and reliable way of “kick-starting”local economic investments is for thecompany’s procurement department tosearch for and support synergies betweenits product needs and the supplier capacityof local people. For more specific guidanceon local procurement, the IFC’s Guide toGetting Started in Local Procurement providesadditional information for companies. 44This step of the tool summarizes the keytasks recommended by the IFC:1.Conduct a company self-assessmentThe IFC has developed an Excelspreadsheet (available at:http://commdev.org/content/document/detail/2626)to support companies to conduct thisassessment. It assesses the supportingstructures that are in place to support alocal procurement program, the existingprocesses in place and support thatyour company already provides to smalland medium-scale enterprises (SMEs).Based on this assessment, you will get anunderstanding of the gaps that will needto be addressed in order to implement aneffective local procurement program.2.Identify the business caseFor local procurement to be integrated instandard operating procedure for yourcompany, the business case needs to beclearly enunciated and agreed across thecompany. The business case can varyvastly for different operations; however,the IFC has identified seven key drivers:government regulation or contractrequirement for local content, competitiveadvantage, social licence to operate, energyand environment considerations, costreduction and/or increase in quality,business continuity and long-termeconomic diversification.3.Define localAs highlighted in step 1, it is critical thatyou agree a definition of local for yourlocal procurement activities.43 IFC, Strategic Community Investment: A Good Practice Handbook for Companies Doing Business in EmergingMarkets, and Strategic Community Investment: A Quick Guide, Highlights from IFC’s Good Practice Handbook,Washington DC, 2010.44 IFC, A Guide to Getting Started in Local Procurement, Washington DC, 2011. Available at:www.commdev.org/content/document/detail/2774/174 Community Development Toolkit

Local Economic Investment17continued4.Create a policyBy working through these tasks, you willbe in a position to develop a localprocurement policy, which can be appliedto both your own business activities andthose of your contractors.STEP 3Local employmentWhen communities hear that a mine maybe developed in their area, the first questionthat is asked is more often than not abouthow many jobs will go to their communitymembers. Expectations around localemployment need to be managed verycarefully, but there are steps you can taketo improve the opportunities for localemployment within your project. Increasinglocal employment and setting clear criteriafor eligibility as a “local” can be a criticalelement of managing in-migration. 45To support local employment you shouldconsider the following ideas:1.Local employment policyDo you have a local employment policyand/or a national requirement to prioritizelocal employment? Is this policy wellunderstood across your project and bycommunity members?2.Skills auditDo you know what skills are held bycommunity members, and are thereopportunities to use these skill setscurrently or to build upon them throughvocational education programs inreadiness for future employment? (tool 13Competencies Assessment may be useful.)3.Contractor requirementsThe largest labour force is normally seenduring construction, and it is oftenprimarily contractor based. Do you haveclauses in your tender process thatfavour companies who employ locally, orthat require contractors to train localemployees as they undertake the work?4.Community development programsAre there programs you could supportthat would increase the likelihood of thecommunity members finding sustainableopportunities, either with your project orideally with other diversified activities?STEP 4Diversify opportunitiesIn addition to supplying the mine, it isimportant to encourage alternative livelihoodand economic opportunities so thatcommunities do not become dependentupon the mine. This can be done throughproviding low-cost loans to otherbusinesses, business advice and mentoringservices not solely related to procurementopportunities, and a variety of trainingcourses and support services.One philosophy for diversifying localbusinesses without creating dependencies iscalled Enterprise Facilitation, developed over25 years by the Sirolli Institute. Its approachrelies upon never offering advice until abudding entrepreneur asks for it, therebyavoiding a handout relationship. It alsoemphasizes the importance of building a teamapproach to business, as it is very unlikelyfor an entrepreneur to be equally skilled andpassionate about production, marketing andfinancial management, so it makes sense toteam up people whose strengths lie in each ofthese fields. This approach can be explored onthe Sirolli Institute website at: www.sirolli.comMANAGEMENT TOOLS45 See IFC, Projects and People: A Handbook for Addressing Project-Induced In-Migration, Washington DC, 2009.Available at: www.ifc.orgCommunity Development Toolkit175

CASE STUDYAssisting growth and development of local suppliers through collaboration andcapacity-building programsBHP Billiton, MozambiqueMANAGEMENT TOOLSSummaryOne of the most significant contributions that a large mining company can make to societyis an economic one. By investing in the local private sector, a company provides the localcommunity (including employees who work for local businesses) a reason to value themine’s presence, enhancing its social licence to operate.Context and challengeLocated in Maputo in southern Mozambique, BHP Billiton’s Mozal aluminium operationwas the first major development in the country in the past 50 years and it quickly accountedfor more than 45% of imports and 7% of gross domestic product (2002 figures). In 2007,aluminium exports contributed 61.4% of the total exports value and in 2010, Mozal’saluminium ingots still accounted for over half of the export earnings in Mozambique.To date, Mozal continues to rank first place on the top 100 companies in the country(KPMG 2010 Top 100 Companies in Mozambique).A 17-year civil war had devastated Mozambique and its physical and economic infrastructure.There were few local businesses that could provide the new smelter with essential goodsand services. Development of a local supply chain was therefore imperative. Commencingwith a commitment to award as much work as possible to local suppliers, the focus ofdevelopment support programs is to help small and medium businesses improve theirskills and capacity, with a view to building a local base of strong, competitive andsustainable supplier companies.ResponseInitially, a program was developed to educate and train the newly formed small andmedium-scale enterprises (SMEs) on an international-standard tendering package,allowing them to compete for business against foreign companies. Work packages wereexclusively allocated to local companies. This was undertaken without compromising theprinciples of compliance to specifications, timely delivery or safety.The materials and services identified for procurement from local companies includedstationery, transport labour, vehicle rental, signage, labour rate agreements, minor civilwork, equipment surveys, manufacturing, small tool repairs, lifting services, hardwareand software services, vehicle service and maintenance, laboratory consumables andhand tools.Services that could be undertaken with low risk to the operation were selected toparticipate in the program in the initial stages; then the range was expanded as localcapabilities developed.In parallel, the company established the “MozLink” program and built an SME DevelopmentCentre. Through the program, Mozal builds SME capacity, shortens the supply chain,minimizes cross-border complexities and reduces lead times, which in turn leads to lowerstock levels and cost savings for the company. The MozLink program aims to createstronger and more competitive SMEs, transfer knowledge and capacity, and assistMozambican companies to grow and develop into strong organizations that can competein both local and international markets.176 Community Development Toolkit➜

CASE STUDY continuedAssisting growth and development of local suppliers through collaborationand capacity-building programsBHP Billiton, MozambiqueThe MozLink process is to:• identify, introduce and develop suitable suppliers• create a Mozambican supplier database• identify materials and services to be procured exclusively from Mozambican companies• implement training and development programs for SMEs and• build co-operative relationships.MozLink is a win-win for the corporations, for SMEs and the overall community. Morethan 150 SMEs were developed through MozLink I and II creating more than 3,000 jobs.The success of the MozLink program has encouraged other large organizations to jointhe initiative, which will converge to MozLink III set up to start early July 2012. A further80 SMEs are expected to take part in this phase.MANAGEMENT TOOLSOutcomes and lessons learnedSince the beginning of operations at Mozal, the number of packages awarded to localcompanies has progressively grown. In 2004, an average of around US$4 million was beingspent per month with Mozambican registered companies. In 2011, this figure has morethan doubled, contributing to more that US$110 million to the local economy annually.Figure 9 shows the history of expenditure with local companies between 2004and 2011. It is expected that a further US$123 million will be spent in the local economyduring the financial year 2012.This approach provides SMEs with opportunities for information sharing that can extendtheir marketplace, facilitate access to useful data, accelerate growth, introduce bestpractice information systems and bring demand and supply together. Overall, thedevelopment of SMEs has ensured a stronger supply chain, development of local capacityand local availability of products and services.Figure 9: Spend with the local economyUS$ millions140.0120.0100.080.060.040.053.671.886.092.4108.0100.2 98.0114.1123.220.00.02004 2005 2006 2007 2008 2009 2010 2011 2012full yearFinancial yearforecastSource: BHP Billiton MozalCommunity Development Toolkit177

17Local Economic InvestmentcontinuedMANAGEMENT TOOLSKey referencesEnterprise Facilitation on the Sirolli Institute website at:www.sirolli.comIFC, A Guide to Getting Started in Local Procurement, Washington DC, 2011. Available at:www.commdev.org/content/document/detail/2774/IFC, Strategic Community Investment: A Good Practice Handbook for Companies DoingBusiness in Emerging Markets, Washington DC, June 2010. Available at:www.ifc.org/ifcext/sustainability.nsf/content/publications_handbook_communityinvestmentIFC, Strategic Community Investment: A Quick Guide, Highlights from IFC’s Good PracticeHandbook, Washington DC, February 2010. Available at:www.ifc.org/ifcext/sustainability.nsf/content/publications_handbook_communityinvestmentVarious Oil, Gas, and Mining Sustainable Community Development Fund resources on localprocurement are available at:http://commdev.org/section/tools/local_supplier_devp178 Community Development Toolkit

Resettlement Planning18DescriptionThe construction and operation of a miningor metals project, including its infrastructuresuch as accommodation, roads, dams andstorage facilities, require the acquisition ofland. Sometimes there are people eitherliving on or using this land for theirlivelihoods and who will therefore be eitherphysically or economically displaced bythe development of the mine. Physicaldisplacement means that the residentpopulation will need to move to anotherplace. For those who lose productive landor resources or have their access to itdiminished by the activities of the miningor metals company, the process istermed economic displacement. In mostjurisdictions, and by all measures of goodpractice, it is necessary to ensure that thepeople physically or economically displacedby the mine have their assets and livelihoodsreplaced, and even improved. This willinclude communal, community and publicassets if they are affected.PurposeIf the development of a mining or metalsproject will require the physical or economicdisplacement of residents in the host area,then a resettlement action plan (RAP) will berequired. If only economic and not physicaldisplacement will occur, then a livelihoodrestoration plan rather than a RAP will beneeded. The IFC is the leading internationalagency that provides resettlement planningguidance to private sector mining projectson resettlement. Its principles forresettlement planning are set out inPerformance Standard 5 “Land Acquisitionand Involuntary Resettlement” 46 and aresummarized below:• to avoid, and when avoidance is notpossible, minimize displacement byexploring alternative project designs• to avoid forced evictions• to anticipate and avoid, or whereavoidance is not possible, minimizeadverse social and economic impactsfrom land acquisition or restrictions onland use by (i) providing compensationfor loss of assets at replacement cost and(ii) ensuring that resettlement activitiesare implemented with appropriatedisclosure of information, consultationand the informed participation of thoseaffected• to improve, or restore, the livelihoods andstandards of living of displaced persons• to improve living conditions amongphysically displaced persons through theprovision of adequate housing withsecurity of tenure at resettlement sites.MANAGEMENT TOOLS46 See IFC’s Sustainability Framework, 2012 edition,http://www1.ifc.org/wps/wcm/connect/Topics_Ext_Content/IFC_External_Corporate_Site/IFC+Sustainability/Sustainability+Framework/The+2009-2011+Review+and+Update/Community Development Toolkit179

18Resettlement PlanningcontinuedMANAGEMENT TOOLSAs always in successful communitydevelopment, relationships and engagementwith affected populations are essential.Mining company personnel should workin partnership with the project-affectedpeople, their government and communityrepresentatives, and appropriate civil societyorganizations to establish the parametersfor the resettlement and compensationactions. Using the guidance handbooks ofthe international organizations listed in thereferences for this tool, and engaging theservices of qualified and experiencedresettlement, land valuation andcompensation experts, mining companypersonnel should develop a plan agreeableto all affected parties.When to use this toolAs soon as it becomes clear that the projectwill require involuntary resettlement or willaffect income-producing activities, then theresettlement and livelihood restorationplanning process should commence.How to use this toolThis is a complex and highly specializedfield and for a resettlement process of anysize larger than a few households, youshould seriously consider engagingspecialized and experienced consultants tohelp manage the process. This tool drawsheavily on the IFC’s 2002 Handbook forPreparing a Resettlement Action Plan.As described in the IFC handbook, theessential components of a RAP are thefollowing:• identification of project impacts andaffected populations• a legal framework for land acquisition andcompensation• a compensation framework• a description of resettlement assistanceand restoration of livelihood activities• a detailed budget• an implementation schedule• a description of organizationalresponsibilities• a framework for public consultation,participation and development planning• a description of provisions for redress ofgrievances• a framework for monitoring, evaluationand reporting. 4747 http://www1.ifc.org/wps/wcm/connect/topics_ext_content/ifc_external_corporate_site/ifc+sustainability/publications/publications_handbook_rap__wci__1319577659424180 Community Development Toolkit

Resettlement Planning18continuedThe following steps for identifying the peoplelikely to be affected by the project (bullet 1)are outlined in the handbook on pages 12 to25. The preparation and implementation of aRAP is a complex and serious procedure,one that will require the commitment oftime, expertise and resources.It is important to note that resettlement isnot purely about replacement of physicalassets but also about restoring the socialfabric of communities, which is usuallydisrupted during a resettlement process.Steps 1 to 3 below describe efforts toquantify the resettlement – population andasset census and inventory. However, Steps4 to 6 also include gathering qualitativeknowledge to help restore the quality ofcommunity life, not just the standard ofliving.STEP 1Develop thematic maps that identify suchfeatures as population settlements,infrastructure, soil composition, naturalvegetation areas, water resources and landuse patterns.STEP 2Undertake a census that enumerates theaffected people and registers themaccording to location.STEP 4Conduct socio-economic surveys and studiesof all affected people (including seasonal,migrant and host populations), as necessary.These surveys should include focus groupsand discussions with the various sectorsof the communities being resettled, tounderstand the social dynamics and patternsthat will be disrupted by the resettlementprocess.STEP 5Analyse the results of the surveys andstudies to establish compensationparameters, design appropriate incomerestoration and sustainable developmentinitiatives, and identify baseline monitoringindicators. Initiatives to support therestoration of the social fabric of theresettled communities and their communityvitality will also be important.STEP 6Engage in consultation with affectedpopulations regarding mitigation of effectsand development opportunities. Work withthe resettled people to ensure that theresettlement program is achieving its aimsof restoring and enhancing their way of life.MANAGEMENT TOOLSSTEP 3Prepare an inventory of lost and affectedassets at the household, enterprise andcommunity level. This will need to considerloss of access as well as physical loss.Community Development Toolkit181

CASE STUDYManaging the impacts of resettlement, AhafoNewmont, GhanaMANAGEMENT TOOLSSummaryA resettlement process was undertaken at Newmont Ghana’s Ahafo mine. Because ofthe demographic profile of the community – many small farmers and some vulnerablehouseholds – the company partnered with a range of local organizations in order todevelop a tailored resettlement process.Context and challengeNewmont Ghana’s Ahafo mine is located around 180 miles north-west of Accra. Prior tothe development of the mine, which was home to around 500 families, the companyundertook a study to identify whether it would be possible to avoid the disruptive processof community resettlement, which it viewed as a last resort. However, since there wereno other viable options, the company instituted a resettlement process for the primarilyagricultural community.ResponseNegotiation on behalf of the community was undertaken by a Resettlement NegotiationCommittee, which comprised community representatives and traditional authorities.Via this committee, some members of the community opted for monetary compensationrather than resettlement. Payment was conditional upon proof that the individuals hadalternative homes to relocate to.An initial group of 2,200 people were resettled to two new villages in 400 purpose-builthomes, at a cost of US$14 million. The homes and residential plots came with legal title(99-year leases), the first time that the families had owned such title to the land. Prior toresettlement, traditional ownership arrangements had prevented members of thecommunity from legally owning their properties.Mine area home➜182 Community Development Toolkit

CASE STUDY continuedManaging the impacts of resettlement, AhafoNewmont, GhanaAgricultural smallholdingsThe main issue raised by the communities was the loss of land and, in turn, the ability toearn a living. Replacement plots were given to residents who lost their residential land,and farmers whose crops were disrupted received monetary compensation.There was some disagreement over prices paid for cocoa crops that had been disruptedby the resettlement. In response, the company created a “crop review committee” drawnfrom the community, NGOs, traditional authorities and government agencies.There was also disagreement over the lack of compensation for fallow land. Despite beingin accordance with Ghanaian law in not providing compensation in this case, the companydecided to explore mitigation measures for individuals who had lost fallow land.MANAGEMENT TOOLSSome people found alternative livelihoods to farming, including employment at the newmine, or in small businesses supplying the mine with goods and services, but there weresome concerns regarding a perceived lack of youth employment opportunities, particularlyin agriculture. In response, the company launched an agricultural improvement and landaccess program to help farmers increase their crop productivity.The program offered five agricultural assistance packages, and monetary assistance.Initially, the program targeted around 4,000 farmers. Two thousand individuals formallyregistered and 400 received assistance packages and begun new farms as a result.Outcomes and lessons learnedThe company worked closely with the community during the resettlement process, drawingon external expertise where necessary, and responded quickly and effectively to concernsraised along the way, going beyond legal requirements where necessary.The company ensured that the main source of employment not only continued, but wasstrengthened, following resettlement. In addition, the company ensured that vulnerablepopulations were specifically supported during the relocation.Full resettlement disclosure documents available at:www.newmont.com/africa/ahafo-ghana/public-disclosure-documentsSources:Newmont website – 2007 community development case studies, accessed 10 January 2009 from:www.beyondthemine.com/2007/?l=2&pid=240&parent=253&id=303“Independent assessment of resettlement implementation: Ahafo South Project” (August 2005) prepared byFrédéric Giovannetti, a resettlement consultant, for Newmont and the IFC“Independent monitoring of resettlement implementation: progress update” (January 2006),Newmont Ghana Gold Limited.“Report on vulnerable program: Ahafo South Project” (April 2006) prepared by planning Alliance forNewmont Ghana Gold LimitedCommunity Development Toolkit183

18Resettlement PlanningcontinuedMANAGEMENT TOOLSKey referencesAsian Development Bank, Handbook on Resettlement: A Guide to Good Practice, Manila, 1998.Available at:www.adb.org/documents/handbook-resettlement-guide-good-practiceEuropean Bank for Reconstruction and Development’s Performance Requirement 5: LandAcquisition, Involuntary Resettlement and Economic Displacement. Available at:www.ebrd.com/downloads/about/sustainability/ESP_PR05_Eng.pdfIFC, Performance Standard 5: Land Acquisition and Involuntary Resettlement, Washington DC,2012. Available at:http://www1.ifc.org/wps/wcm/connect/topics_ext_content/ifc_external_corporate_site/ifc+sustainability+framework/2012+edition/performancestandard5IFC, Handbook for Preparing a Resettlement Action Plan, Washington DC, March 2002.Available at:www.ifc.org/ifcext/sustainability.nsf/content/publications_resettlement184 Community Development Toolkit

How to monitor and evaluatecommunity developmentactivities and measureprogress towards program goalsMONITORING AND EVALUATIONTOOLS

MONITORING AND EVALUATIONSUPPORTS YOUR COMMITMENTTO STAY ON TRACK ANDACHIEVE RESULTS. IT ALSOGIVES YOU AN OPPORTUNITYTO CRITICALLY REVIEW YOURMANAGEMENT SYSTEMSAND PROCESSES, TOIDENTIFY WHAT IS WORKINGWELL AND WHAT NEEDSSOME DEVELOPMENT.Access to land, Peru.

Monitoring and evaluation toolsTOOL 19Indicator DevelopmentA process for choosing indicators for program evaluationthat can measure up to transparent scrutiny from anyquarter. These indicators are especially appropriate for usein the Goal Attainment Scaling tool and may also be useful forGRI reporting. The best place to find appropriate indicators tobe used for monitoring and evaluation will be in the SocialBaseline Study (tool 11).191TOOL 20Goal Attainment Scaling197Goal Attainment Scaling (GAS) is a useful means for measuringthe degree to which outputs and outcomes are being met. It isparticularly useful for social investment and communitydevelopment projects where multiple stakeholders are involvedand where there may be differing assessments about the degreeof achievement of project goals. It enables evaluations to bemade by a range of stakeholders and observers, not justso-called experts. Another major advantage is that the resultscan be presented in the form of simple graphs, which makesthem more accessible to people unfamiliar with qualitative,social science measurements, such as financial and technicalmanagers at a mining or metals project.Community Development Toolkit187

Monitoring and evaluation toolscontinuedMONITORING AND EVALUATION TOOLSGuidance for using monitoringand evaluation toolsMonitoring and evaluation (M&E) ensuresthat development programs are going in theright direction to achieve their stated goals:MonitoringThe ongoing, methodical collection andanalysis of data on development activities,which provides program managers andstakeholders with early indications ofprogress and achievement of goals.Monitoring can be said to be themeasurement of outputs and is undertakenmore frequently than evaluation and isoften done by people involved in thecommunity development programs.EvaluationThis is primarily concerned with longer-termresults of development activity, or themeasurement of outcomes. It aims toidentify how and why activities succeeded,failed or were changed – in order to improvethe effectiveness of future undertakings.Many mining projects opt to have evaluationdone periodically by independent, externaladvisers, but internal evaluation is alsoworthwhile. 48Through M&E, you are exploring fourfundamental questions:• What worked and why?• What did not work and why?• What could have been done differently?• What adjustments and changes arerequired now?The process you develop for answeringthese questions depends on the complexityof your community development activitiesand the depth of knowledge andunderstanding you require. Evaluations ofcommunity development are challengingbecause they have both quantitative andqualitative dimensions: basic informationabout what has been undertaken isimportant but so too is information aboutcommunity members’ perceptions of theprocess, the results achieved and the overallbenefits of community development.The benefits of effective M&E include:Improved managementIt supports your commitment to stay ontrack and achieve results. It also gives youan opportunity to critically review yourmanagement systems and processes, toidentify what is working well and whatneeds some development.Improved accountabilityYour partners want to know how you haveused program resources and what you haveachieved in order to assess whether theyshould continue to support your activities.ParticipationM&E provides an opportunity to bringcommunities and other stakeholders intothe program management process, toreview program performance from theirown perspective and to influence futureprogram direction.48 Examples of external evaluation processes are the TIAP team for the Tangguh LNG Project and PEAK (PorgeraEnvironmental Advisory Komiti) in Papua New Guinea (see www.watercentre.org/news/peak-newsletter).188 Community Development Toolkit

Monitoring and evaluation toolscontinuedLearning and developmentM&E is an important learning process,enabling you to reflect on your experienceand assess how that experience can beincorporated into other activities andlonger-term program development.By applying indicators developed in tool 19,project managers and stakeholders canassess the implementation of projectactivities, and achievement of agreed projectgoals. As an additional means of assessingboth short-term achievements (monitoringof outputs) and longer-term results(evaluation of outcomes), the GAS method(tool 20) is beneficial because it allowsassessment to be undertaken by a widerange of stakeholders and permitscomparison of assessments given bydifferent stakeholder groups.All of these processes can assist in theprocess of gathering data for reporting tostakeholders in accordance with the GlobalReporting Initiative (GRI).M&E should be used during the life of acommunity development project orinvestment to measure:• results of community developmentprograms• differences between expected and actualoutcomes• reallocation of remaining resources toimprove outcomes• justification for allocation of furtherresources• outcomes in terms of benefits to thecommunity and the business.There are many other M&E processesavailable, and the references will lead youto discussions of some of these. If you usetools 19 and 20, however, you will have agood understanding of the progress of thecommunity development programs that youare involved with and be able to report itboth within the company and externally.As mining company staff, you will likely haveinternal company demands for M&E, toreport to managers and shareholders thatcommunity development funds are beinginvested wisely, and achieving statedobjectives. You should involve the communityand other stakeholders in the monitoringprocess as much as possible, as this willgive you the most “real” feedback aboutyour progress.NGOs/CBOs will likely have their own M&Erequirements, as will donors and bilateralpartners, many of which will draw on similarapproaches to those identified in these tools.Government officers and communitymembers may find it useful to understandthe approach to M&E taken by companies,especially if they are going to participate inthe monitoring process.Involving community members in monitoringprograms, especially for matters of greatimportance to them, such as water quality,is an ideal way not only of conducting goodpractice monitoring but also of establishingcommunity belief and support in the miningproject’s environmental managementsystems and procedures. Table 21 illustratesthe characteristics of eight such programsin Peru, studied by the World Bank’sCompliance Advisor/Ombudsman.MONITORING AND EVALUATION TOOLSCommunity Development Toolkit189

Program Data collection Data interpretation Results communicationAgua Para SiempreX–XX X X XAruntani CMAPX X –X XXLagunas NorteX X yearlyXX XMarlin AMACX X quarterlyX XMesa de Dialogo Tintaya X X biannualXXXLas Bambas CMPX X –X XMesa de Dialogo yConsenso CAO-CajamarcaXXmonthlyXXXXXAntamina CMVFAHX X yearlyX X XXXXBasic fieldparametersLaboratoryanalysesFrequencyCommunityTechnicalexpertsMulti-membercommitteePresentations/assembliesWorkshopsBrochures/reportsRadio and TVWebsiteTable 21: Examples of participatory monitoring programs in eight communities in PeruData collection, data interpretation and results communicationSource: Compliance Advisor/Ombudsman, Participatory Water Monitoring: A Guide for Preventing and Managing Conflict, Advisory Note,World Bank Group, Washington DC, 2008, Appendix A: Summaries of eight selected participatory monitoring programs, p. 66.190 Community Development Toolkit

Indicator Development19DescriptionEffective reporting, monitoring andevaluation depend on the identificationof effective performance indicators.Effective performance measurement needsto use appropriate units for measuringchange; to be able to distinguish betweeninputs, outputs and outcomes; to measureeffectiveness and efficiency; and to assessboth qualitative and quantitativedimensions of change.Anglo American’s Socio-EconomicAssessment Toolbox (SEAT) providesexcellent guidance on the development ofmanagement and monitoring measures.Steps 4 and 5 of this tool draw heavily onthe approach outlined in SEAT tool 6A:Developing a Social Management Plan. 49InputsInput indicators measure inputs such asmoney, time, etc. contributed to developmentactivities and/or processes conducted,number of meetings held, number ofstudies conducted, etc. They are importantin managing resources and ensuringaccountability of development facilitators.They do not, however, tell us anything abouthow successful, or otherwise, developmentactivity has been.OutputsOutput indicators measure the direct resultsof community development projects, forexample numbers of children vaccinated,numbers of people trained in agriculturalmethods, school completion rates, etc.OutcomesOutcome indicators measure longer-termchanges that are the desired return oninvestment in the project, for examplemeasurable change in the community’squality of life, health or economicwell-being. They are the best measure ofhow successful, or otherwise, developmentactivity has been.MONITORING AND EVALUATION TOOLS49 www.angloamerican.com/seatCommunity Development Toolkit191

19Indicator DevelopmentcontinuedMONITORING AND EVALUATION TOOLSPurposeTo develop a set of objectively verifiableindicators to measure performance ofcommunity development programs.When to use this toolFrequent monitoring can enable programsto be reoriented if they are not succeedingat first. So, as often as possible, at leastonce a year, or whenever circumstanceschange. As with GAS (tool 20), appropriateperformance indicators are important partsof a post-closure monitoring program aswell as useful during operation of the mine.How to use this toolSimilar to the GAS tool (tool 20),development of program indicators is bestdone as a group exercise involvingcommunity members. Performancemeasurement should be based on objectivelyverifiable indicators, to ensure thatmeasurements of change by one group areaccountable to all stakeholders as well asbeing repeatable by other groups if needed.The important point is that there must besome objective means of verifying results,for example test results for students, ornumbers of trainees completing a course.STEP 1Gather together a group of people from thecommunity and the company with knowledgeof and interest in the programs you want todevelop indicators for. In addition tobeneficiaries from the program, this shouldinclude staff with insight about how theprojects fit into the broader socio-economicobjectives of the operation. Involving stafffrom a number of departments will increasebuy-in for the indicators selected to monitorthe progress of the community projects.STEP 2Brainstorm ideas for indicators, focusing onmeans of verification.192 Community Development Toolkit

Indicator Development19continuedSTEP 3Prepare a list of indicators for each program.Examples of quantitative indicators mayinclude:• the frequency of meetings, the number ofpeople involved• growth rates• yields, prices• the uptake of activity inputs, e.g. loans,school enrolment, visits to the clinic,children vaccinated• the adoption/implementation of activityoutputs, e.g. technologies, manuals,newsletters or guidelines in use.Qualitative indicators may relate to:• the level of participation of a stakeholdergroup• stakeholder/consumer opinions,satisfaction• aesthetic judgements regarding localamenity or lifestyle choices• decision-making ability• changes in attitudes• the emergence of leadership• the ability to self-monitor• the development of groups and ofsolidarity• behavioural changes• evidence of consensus.Indicators should be SMART:SimpleEasy to interpret, monitor andunderstand by the community and otherswho need to actMeasurableQuantifiable and reliableAccessibleBased on accessible and consistentinformation that is available over timeRelevantMeasures what people need to know andcan be acted onTimelyResponds to changes in social conditionsand alerts people to action what isrequiredMONITORING AND EVALUATION TOOLSIt is generally easier to measure behaviourthan feelings; behaviour can be observed.So if an objective is to increase people’sconfidence in meetings, it may beappropriate to measure this by observinghow often they speak and whether theyspeak clearly.Community Development Toolkit193

19Indicator DevelopmentcontinuedMONITORING AND EVALUATION TOOLSSTEP 4Evaluate the feasibility of the output and/oroutcome expected. In order to evaluate thefeasibility of each recommended indicator,the following should be considered:• strategic socio-economic managementor development objectives, and howpotential indicators will contributeto these• whether the recommended indicator willbe effective• whether the resources and skills areavailable within the company or amonglocal partners to measure the indicator• the approximate cost and time requiredto measure the indicator.See Figure 10.Figure 10: Ideal criteria for indicators (adapted from Anglo American’s SEAT)InformativeEasily understoodRelevantIndicatorsSimple to reportMeasurableWidely recognizedUseful194 Community Development Toolkit

Indicator Development19continuedTable 22: Example of a monitoring tableMonitoring of apprenticeships, training and skills developmentInputApprenticeshipsand trainingcoursesOutput expected(indicator)Twentyapprentices andtrainees starting,graduating andfindingcontinuousemployment withthe companyActual results(indicator)Twentyapprentices andtraineescompleted thecourse thoughonly 15 foundcontinuousemployment withthe companyDifferenceFiveObservations(action to betaken)More supportneeds to beprovided forindividuals tomanage thetransition fromapprenticeships/trainings tocontinuousemploymentMONITORING AND EVALUATION TOOLSTable 22 provides an example of howmonitoring might be undertaken for aninvestment in apprenticeships and trainingcourses. The selected indicators can beclassified according to the SMART system.The input is the apprenticeships andcourses themselves, although this couldalso be noted as the cost of the courses,for example US$5,000, which would be moreSimple. The expected output is Measurable –there was a target of 20 apprentices andtrainees starting, graduating and findingcontinuous employment with the company.The target was Accessible, although notquite reached. The indicators are certainlyRelevant, as numbers of graduates findingcontinuous employment is exactly whatthe program was designed for. Finally, themonitoring indicators are Timely, as thecourses were run for a fixed periodof time.STEP 5Engage with stakeholders to monitor andreport on the effectiveness of thecommunity programs using the indicators.Monitoring should be carried out throughengaging openly with stakeholders,allowing for feedback on performance andinformal inspections of the programs.Involving external parties in monitoringactivities will also provide useful feedbackfor improving performance.Community Development Toolkit195

19Indicator DevelopmentcontinuedMONITORING AND EVALUATION TOOLSKey referencesAfrican Network on Participatory Approaches, Village Participation in Rural Development,Royal Tropical Institute/World Bank, Washington DC, 2000.Anglo American, Socio-Economic Assessment Toolbox, 2012. Available at:www.angloamerican.com/development/social/seatDFID, Tools for Development: A Handbook for Those Engaged in Development Activity,London, 2003, especially Chapter 12. Available at:www.dfid.gov.uk/Documents/publications/toolsfordevelopment.pdfIFC, Strategic Community Investment: A Good Practice Handbook for Companies DoingBusiness in Emerging Markets, Washington DC, June 2010. Available at:www.ifc.org/ifcext/sustainability.nsf/content/publications_handbook_communityinvestmentRietbergen-McCracken, J and Narayan, D. (compilers), Participation and Social Assessment:Tools and Techniques, International Bank for Reconstruction and Development/World Bank,Washington DC, 1998, especially pp. 189–252.196 Community Development Toolkit

Goal Attainment Scaling20DescriptionGoal Attainment Scaling (GAS) is a toolused to determine different – or changingover time – levels of stakeholder satisfactionwith development activities. Its results canbe used as an easily understood means ofreporting feedback.PurposeGAS allows you to directly track progresstowards an identified goal. GAS can be usedto monitor the outputs of communitydevelopment activities, say every six months,or it can be used to evaluate differentstakeholder perceptions of outcomes ofa program over a longer time period.The results of the surveys can demonstratedifferences between different stakeholders’perceptions of an issue of shared interest.When to use this toolWhenever the views of one or more groupsof stakeholders are required on the progressand achievements of a program. They can berepeated at intervals and among differentgroups. This can be done at any stage frompre-construction to post-closure, with thequestions being asked altered to match theprevailing situation.How to use this toolActivity or program goals are framed askey questions. They form a commonframework for personal consultations,analysis of program performance and reviewof documentation. The key questions leadlogically to a Goal Attainment Scalingframework that enables the facilitator todetermine the degree to which programoutputs or outcomes are being achieved.Table 23 presents an example GAS sheet forthe tracking of community and companyperceptions of an engagement programbeing conducted with communities adjacentto a planned mining project.Using this instrument with differentstakeholder groups can detect areas wherethe perception of the performance of theengagement program differs between theparties. The results can also be used toestablish benchmarks that can be trackedfor change over time.You can see that it is easy to represent theresults in graphic form to make it easier formanagement and stakeholders to analysequickly changing trends in perceptions of thesuccess of the programs being evaluated.MONITORING AND EVALUATION TOOLSThis is best done with a group or team ofpeople involved in the project, and can bedone for each indicator for outputs andoutcomes, as feedback desired.Community Development Toolkit197

Goal Attainment Scaling20continuedMONITORING AND EVALUATION TOOLSSTEP 1Identify the objectives for a project andtheir associated indicators. In the exampleprovided below, one of the goals of thestakeholder engagement program beingevaluated was defined as developing a goodrelationship between the company andcommunities. So, a central question toevaluate was:Question: Is the engagement programdeveloping a good relationship between thecompany and local communities?STEP 2Decide on and write descriptors for thescoring scale for each indicator. Ideally, thisshould be determined by the projectmanager/co-ordinator together with keyprimary stakeholders. Defining and agreeingon GAS scales can take some time, oftenbecause different participants have differentexpectations, perhaps stemming fromdifferent understandings about what theproject is about. This time, however, is auseful investment to ensure a sharedunderstanding of what the collectiveexpectations are for it.The descriptors for the 1–5 scale aredesigned with the central question beingscale point 3, that is the average score,meaning that your objective has been met.In this case, a score of 3 was described as:The engagement process is developing thebasis for a sound and fruitful relationshipbetween the parties.The descriptors for scale points 1 and 2should describe evaluations that fall shortof meeting the objective, with 1 being thelowest achievement. See rows (1) and (2) inTable 23.The descriptors for points 4 and 5 on thescale should indicate results that exceed theobjective, with a score of 5 being the highest.See rows (4) and (5) in Table 23.STEP 3The method for using GAS is that eachperson rates the program being evaluatedwith a score of 1 to 5. In the example given,60 people are asked to rate the program,15 people from each of the four categoriesof stakeholders. So, looking at the top rowof Table 23, you will see that none of thegovernment or company people gave theprogram the lowest score, but three NGOsand two community members did. At theother end of the scale, the bottom rowreveals that one person from each of thecompany and government groups gave theprogram the most favourable outcomescore, and none of the NGO or communitypeople did.The beauty of this process is that the samequestions can be asked of differentstakeholder groups, and the results can becompared. The survey can also be reportedat intervals of time. Finally, the results areeasy to present in a graphical format.Weighting accorded to the results obtainedfrom different GAS results may differdepending on the importance of eachgroup’s perspective to the projectmanagement.STEP 4Communicate the results and display theresults in graphs.198 Community Development Toolkit

Goal Attainment Scaling20continuedTable 23: GAS sheet for assessing the engagement programGAS scoreGoalEngagement program leads to a mutually beneficialrelationship between company and local stakeholdersQuestion: Is the engagement program developing agood relationship between the company and localcommunities?Score (n=60)CompanyGovernmentNGOsCommunitiesMONITORING AND EVALUATION TOOLS(1)The engagement program is poorly regarded with thelevel of contact between the parties being low andineffective.0032(2)The engagement program is regarded as generally wellrun, in that contacts are friendly but are not progressingfar in establishing a sound relationship.1175(3)The engagement process is developing the basis for asound and fruitful relationship between the parties.6855(4)The engagement process has evolved into a solidrelationship, based on mutual trust, open exchange ofissues and ideas and a shared framework of interests.7503(5)The relationship between the parties has beenformalized and is recognized as very important by bothparties.1100In the graphic representation (Figure 11),you can see that most scores are aroundthe middle, which means the program hasattained its goal for building a goodrelationship. The highest ratings came fromthe government and company people, andthe lowest from NGOs with middling scoresfrom the communities. The scores couldbe agglomerated, to give a raw score of howmany people rated the program as havingobtained its objective, but is most usefulwhen stakeholder group scores are keptseparate.This example shows the results of only onequestion asked about a program, but aseries of questions or objectives could beevaluated in just the same way, and repeatedat intervals, as part of a regular monitoringprocess that can continue even after themine has ceased operations, as part of apost-closure monitoring program. If lowscores or wide discrepancies in scores areobserved from different stakeholder groups,this should be taken as an indication that theprogram is not meeting the expectations ofcertain stakeholders. Corrective actionCommunity Development Toolkit199

Goal Attainment Scaling20continuedMONITORING AND EVALUATION TOOLSshould be taken by consulting thedissatisfied stakeholders and workingtowards a mutually agreed modification ofthe program. As modifications may thenaffect other stakeholders, they should alsobe consulted. Using GAS for monitoringthus enables early corrective actions to beundertaken. For longer-term evaluationpurposes, the GAS process similarly allowsprograms to be improved and enablesprogram managers to understand whichsections of the community may not besatisfied with project activities.Results to questions about stakeholdersatisfaction with community developmentprograms can be useful for reporting tomanagers about the perceived success of acommunity investment program. They canalso inform external reports such as acompany’s sustainability report.Figure 11: Example of GAS results displayed as a graph876543210(1) (2) (3) (4) (5)KeyCompanyGovernmentNGOsCommunitiesX-axis(1) most unfavourable outcome(2) less than expected success(3) expected level of success(4) more than expected success(5) most favourable outcomeY-axisnumber of people giving that scoremaximum score possible per group = 15200 Community Development Toolkit

GLOSSARY AND REFERENCES

WE HAVE INCLUDEDDEFINITIONS OF COMMUNITYDEVELOPMENT TERMSAND CONCEPTS USEDIN THIS TOOLKIT AND KEYSOURCES OF FURTHERINFORMATION.Image courtesy of Rio Tinto

GlossaryAArbitration A process in which a third partyneutral, after reviewing evidence andlistening to arguments from both sides,issues a decision to settle the case.Arbitration is often used in commercial andlabour/management disputes.BBaseline data Information gathered prior toproject development that demonstrates themagnitude of the development problem, theextent to which it exists in your communityand, over time, will enable you to measureyour progress in addressing the problem.Baseline data can indicate the incidence ofa problem in the community (e.g. thecommunity has an adolescent pregnancyrate of 15.8 pregnancies for every thousandteenage girls). It can reveal the prevalenceof a problem (45% of teens in the communityreport that they did not use contraceptivesduring the last time they had sex). It canalso measure community attitudes towardsa problem (65% of local people do notconsider teen pregnancy to be an importantproblem for the community).CCapacity building A managed process of(i) skill upgrading, both general andspecific, (ii) procedural improvement and(iii) organizational strengthening. Capacitybuilding aims to develop the ability ofindividuals, groups, institutions andorganizations to identify and solvedevelopment problems.Civil society The network of associations,social norms and relationships that existseparately from government or marketinstitutions. Civil society may includereligious organizations, foundations,professional associations, labour unions,academic institutions, media, pressuregroups and environmental groups.Civil society reflects social diversity.It may provide the intellectual, materialand organizational basis for communityinteraction with the state and businesssectors.Community A social group possessingshared beliefs and values, stablemembership and the expectation ofcontinued interaction. It may be definedgeographically, by political or resourceboundaries, or socially as a community ofindividuals with common interests.Community-based organizations Groups ofindividuals within a village or group ofvillages or residential area with similarinterests, established to work together toachieve common objectives. Can refer toorganizations that provide care or servicesin the neighbourhood as well as initiativesby individual citizens and groups withinthe community.Community development The process ofincreasing the strength and effectivenessof communities, improving people’s qualityof life, and enabling people to participatein decision making and to achieve greaterlong-term control over their lives.Community development aims to empowerand help communities to improve theirsocial and physical environments, increaseequity and social justice, overcome socialexclusion, build social capital and capacities,and involve communities in the strategic,assessment and decision-making processesthat influence their local conditions.GLOSSARY AND REFERENCESCommunity Development Toolkit203

GlossarycontinuedGLOSSARY AND REFERENCESCommunity profile A picture of thecommunity that reflects the demographic,economic, human, social, visual and naturalresources, needs and assets of thecommunity.Competency An attribute that contributes tosuccessful performance and achievement oforganizational goals. Competencies may bedefined organizationally or individually, andinclude knowledge, skills and abilities plusother characteristics such as values,motivation, legitimacy, initiative and control.Conflict resolution The process by which theparticipants together with the assistance ofa neutral person or persons systematicallyisolate disputed issues in order to developoptions, consider alternatives and reach aconsensual agreement that willaccommodate their needs.EEmpowerment Increasing poor people’sability to participate in decision making – tonegotiate with, influence, control and holdaccountable the institutions that affect theirlives. In its broadest sense, empowermentis the expansion of freedom of choice andaction, and implies transferring decisionmakingresponsibilities and operationalresources to project beneficiaries.Evaluation Systematic investigation of theworth, value, merit or quality of an object.Assessment of the operation or theoutcomes of a program or policy, comparedto a set of explicit or implicit standards, as ameans of contributing to its improvement.Criteria for evaluation may includerelevance, effectiveness, efficiency, impactand sustainability.Consultation A tool for managing two-waycommunications between project developersand stakeholders. Its goal is to improvedecision making, reduce risk and buildunderstanding by actively involvingindividuals, groups and organizations witha stake in the project. Their involvementincreases the project’s long-term viabilityand enhances its benefits to locally affectedpeople and other stakeholders. To bemeaningful, consultation should be carriedout in a culturally appropriate manner, withlocally appropriate time frames and in locallanguages.FFocus group A group, selected for itsrelevance to a particular area ofinvestigation, that is engaged by a trainedfacilitator in discussions designed to shareinsights, ideas and observations on the areaof concern. Focus groups are typicallyopen-ended, discursive and used to gain adeeper understanding of respondents’attitudes and opinions. A key feature offocus groups is that participants are able tointeract with, and react to, each other – thegroup dynamic often provides richer insightsand data than would have been achieved byinterviewing the participants individually.204 Community Development Toolkit

GlossarycontinuedGGender The socially constructed rolesascribed to males and females and resultingsocially determined relations. Gender rolesare learned, change over time and varywidely within and across cultures. Gender isa key variable in social analysis. It isimportant to understand the social,economic, political and cultural forces thatdetermine how men and women participatein, benefit from and control projectresources and activities. Social analysisshould highlight gender-specific constraints,risks and opportunities.LLogical framework A simplified chain ofrelationships that demonstrates the logicand assumptions underlying a program orintervention and how it intends to achieve itsexpected results. It states the logic of theprogram, identifies the assumptions onwhich it is based and outlines the logicalconnections between i) the activitiesundertaken, ii) the outputs to be produced,iii) the immediate or short-term outcomesthat are expected and iv) the ultimate orlong-term impacts the program is designedto achieve.GLOSSARY AND REFERENCESIImpact Any effect, whether anticipated orunanticipated, positive or negative, broughtabout by a development intervention.Indicator Quantitative or qualitative factor orvariable that provides a simple and reliablemeans to measure achievement, to reflectthe changes connected to an interventionor to help assess the performance of adevelopment actor.Input The activities and resources allocatedto the implementation of communitydevelopment projects.Institutional analysis Analyses theinstitutional capacities and relationshipscritical to operational success, and identifiesgaps or weaknesses in institutionalresources, performance or sustainability.Over time, an institution may be consideredsustainable if it can secure necessarysupport, provide continuing developmentactivities and services that are valued by itsstakeholders and maintain its functions withdecreasing levels of external support.MMediation A voluntary and confidentialprocess in which a neutral third partyfacilitator helps people discuss difficultissues and negotiate an agreement.Basic steps in the process include gatheringinformation, framing the issues, developingoptions, negotiating and formalizingagreements. Parties in mediation createtheir own solutions and the mediator doesnot have any decision-making power overthe outcome.Mediation-arbitration A hybrid thatcombines both of the above processes.Prior to the session, the disputing partiesagree to try mediation first, but give theneutral third party the authority to makea decision if mediation is not successful.Mission statement A brief statementoutlining the specific task(s) for whicha group has charged itself.Community Development Toolkit205

GlossarycontinuedGLOSSARY AND REFERENCESMonitoring The ongoing, methodicalcollection and analysis of dataon development activities that provideprogram managers and stakeholderswith early indications of progress andachievement of goals. Monitoring can besaid to be the measurement of outputsand is undertaken more frequently thanevaluation and is often done by peopleinvolved in the community developmentprograms.NNegotiation A discussion among two ormore people with the goal of reaching anagreement.Non-government organizations (NGOs)Private organizations that pursue activitiesto relieve suffering, promote the interests ofthe poor, protect the environment, providebasic social services or undertakecommunity development. NGOs operateindependently of government, are oftenvalue based and guided by the principles ofaltruism and voluntarism. Broadly, NGOsmay be i) operational, when their primarypurpose is the design and implementationof development-related projects, orii) advocacy focused, when their primarypurpose is to defend or promote a specificcause or seek to influence developmentpolicies and practices.OObjective An expression of an effect that aprogram is expected to achieve if completedsuccessfully and according to plan.Objectives are often viewed as a hierarchy,beginning with strategic goals, purposes,outputs and activities.Organization Formal structures withdesignated roles and purposes.Organizations and individuals pursue theirinterests within an institutional structuredefined by formal rules (constitutions, laws,regulations, contracts) and informal rules(ethics, trust, religious precepts and otherimplicit codes of conduct). Organizations,in turn, have internal rules to deal withpersonnel, budgets, procurement andreporting procedures, which constrain thebehaviour of their members.Outcome The objectives of communitydevelopment – the longer-term resultsaimed for at the end of a program.Output The direct results of an intervention,a “deliverable” for which management isresponsible.PParticipation A process through whichstakeholders influence and share controlover development initiatives and thedecisions and resources that affect them.Participation can improve the quality,effectiveness and sustainability of projectsand strengthen ownership and commitmentof government and stakeholders.206 Community Development Toolkit

GlossarycontinuedParticipatory Rural Appraisal (PRA) A rangeof participatory approaches and methodsthat emphasize local knowledge and enablelocal people to conduct their own appraisal,analysis and planning. PRA uses groupanimation and exercises to facilitateinformation sharing, analysis and actionamong stakeholders. Although originallydeveloped for use in rural areas, it can beemployed successfully in a variety ofsettings, enabling development facilitators,government officials and local people towork together to identify and address localdevelopment needs.Partner The individual and/or organizationwith which one collaborates to achievemutually agreed-upon objectives.Partnership Negotiated relationships thatexist between two or more entities that havevoluntarily entered into a legal or moralcontract.Primary data Qualitative or quantitativedata that are newly collected to address aspecific research objective. Primary datamay include original information gatheredfrom surveys, focus groups, independentobservations and test results.QQualitative surveys Research that is moresubjective than quantitative research anduses very different methods of collectinginformation, mainly a relatively smallnumber of individual, in-depth interviewsand focus groups. Qualitative surveys areexploratory and open-ended, and allowrespondents greater freedom to influencethe research scope and design. Participantsare asked to respond to general questions,and the interviewer or group moderatorprobes and explores their responses toidentify and define their perceptions,opinions and feelings about the topic oridea being discussed. The quality of thefindings from qualitative research is directlydependent upon the skill, experience andsensitivity of the interviewer or groupmoderator. Qualitative research is oftenless costly than quantitative surveys and isextremely effective in understanding whypeople hold particular views, and howthey make judgements. While qualitativeresearch does not produce results that arestatistically reliable, its findings can,if participants are broadly representative,be strongly indicative of the population asa whole.GLOSSARY AND REFERENCESProgram management Managementconcerned directly with the production anddelivery of services. Program managementskills and procedures include project cyclemanagement, program formulation,communications, financial and humanresource management, and technicalreviews and evaluation.Quality of life People’s overall well-being.Quality of life is inherently subjective anddifficult to measure (whether for anindividual, group or nation) because itincludes both material well-being and suchintangible components as the amenity andquality of the environment, national security,personal safety and political and economicfreedoms.Community Development Toolkit207

GlossarycontinuedGLOSSARY AND REFERENCESQuantitative surveys Research that isconcerned with measurement of objective,quantitative and statistically valid data.Simply put, it is about numbers. In quantitativesurveys a relatively large and scientificallycalculated sample of people from apopulation is asked a set of closed questionsto determine the frequency and percentageof their responses. Quantitative surveys canbe used with reasonable levels of confidenceto assess community attitudes across largepopulations. Weaknesses of quantitativesurveys, however, are that they are relativelyexpensive and questions are strictly ordered,determined by the questioner and are closed– respondents cannot introduce topics intothe survey and cannot expand on or qualifytheir responses.Semi-structured interviews Interviews thatare partially structured by a flexibleinterview guide with a limited number ofpreset questions. The guide ensures thatthe interview remains focused on the issueat hand, while providing enough flexibilityto allow participants to introduce anddiscuss topics that are relevant to them.Semi-structured interviews are a deliberatedeparture from survey-type interviews withlengthy, predetermined questionnaires.Stakeholder analysis A process that seeksto identify and describe the interests andrelationships of all the stakeholders in agiven project. It is a necessary preconditionto participatory planning and projectmanagement.RRanking An exercise in which respondentsidentify what is most important to them(e.g. in identifying development needs,communities may rank livelihood as moreimmediately important than education).Ranking allows facilitators to understandlocal preferences, and to understand howvalues differ among different groups.Identifying local preferences and priorities iscritical to choosing appropriate and effectivedevelopment strategies and interventions.SSecondary data Qualitative or quantitativeinformation that has already beenassembled, having been collected for someother purpose. Sources may include censusreports, journal articles, technical oracademic studies and other publications.Stakeholders Persons or groups who areaffected by or can affect the outcome of aproject. Stakeholders may be individuals,interest groups, government agencies orcorporate organizations. They may includepoliticians, commercial and industrialenterprises, labour unions, academics,religious groups, national social andenvironmental groups, public sectoragencies and the media.Standard of living The level of well-being ofan individual, group or the population, asmeasured by the level of income or by thequantity of various goods and servicesconsumed.Strategic plan An outline of the program ororganization’s long-term goals, and of thespecific strategies, approaches,methodologies and resources through whichthose goals will be achieved.208 Community Development Toolkit

GlossarycontinuedStrategic planning A process by which afuture vision is developed for anorganization, taking into account its politicaland legal circumstances, its strengths andweaknesses, and the threats andopportunities facing it. Strategic planningarticulates the organization’s sense ofmission and maps out future directions to betaken, given the organization’s current stateand resources.Strategy A planned course of actionundertaken with the aim of achieving thegoals and objectives of an organization.Strategy may be developed for any aspect ofan organization’s activities or, at thebroadest level, for the organization itself.Survey The collection of data from apopulation for the purpose of analysis of aparticular issue. In a sample survey data iscollected from a representative sample ofthe population.Sustainability The ability of an organizationto secure and manage sufficient resourcesto enable it to fulfil its mission effectivelyand consistently over time without excessivedependence on a single funding source.Sustainable organizations have i) the abilityto scan the environment, adapt to it andseize opportunities it offers, ii) strongleadership and management, iii) the abilityto attract and retain qualified staff, iv) theability to provide relevant benefits andservices for maximum impact incommunities, v) the skills to demonstrateand communicate this impact to leveragefurther resources, vi) community supportand involvement and vii) commitment tobuilding sustainable (not dependent)communities.Sustainability investment A sustainabilityinvestment is an initiative, program, projector any other intervention that responds tothe needs of local stakeholders, as well as tothe company’s business objectives and risks.In practice, sustainability investments mayinclude skills development, local sourcing,health, agricultural assistance, waterinfrastructure, etc.Sustainable development Defined as:“Development that meets the needs of thepresent without compromising the ability offuture generations to meet their own needs”.Progress measured in social or economicterms is accomplished without irreversibleenvironmental degradation or socialdisruption. The benefits should not onlyoutweigh the social and ecological costs butshould also be founded on a rational use ofhuman and natural resources that can bemaintained indefinitely.TTriangulation A process of using multipledata sources, data collection methods,evaluators or theories to study an issuefrom different perspectives, validateresearch findings, help eliminate bias anddetect errors or anomalies in results.GLOSSARY AND REFERENCESCommunity Development Toolkit209

GlossarycontinuedGLOSSARY AND REFERENCESVVision A description of the large-scaledevelopment changes (economic, political,social or environmental) to which theprogram hopes to contribute.Vulnerability Condition characterized byhigher risk and reduced ability to cope withshock or negative impacts. It may be basedon socio-economic condition, gender, age,disability, ethnicity or other criteria thatinfluence people’s ability to access resourcesand development opportunities. Vulnerabilityis always specific to the particular locationand time. Development initiatives shouldassess vulnerability, and target interventionsto particularly vulnerable and marginalmembers of the community.210 Community Development Toolkit

Referenced sourcesGeneral reading – community developmentDFID. 2003. Tools for Development: A Handbook for Those Engaged in Development Activity.http://webarchive.nationalarchives.gov.uk andwww.dfid.gov.uk/Documents/publications/toolsfordevelopment.pdfIFC. 2001.Investing in People: Sustaining Communities Through Improved Business Practice.A Community Development Resource Guide for Companies. Washington DC.www.ifc.org/ifcext/sustainability.nsf/content/publications_resettlementGLOSSARY AND REFERENCESZandvliet, L. and Anderson, M. B. 2009.Getting it Right: Making Corporate-Community Relations Work.Greenleaf Publishing, Sheffield.Artisanal and small-scale miningICMM, CASM and IFC. 2010.Working Together: How Large-scale Mining Can Engage with Artisanal and Small-scale Miners.Pilot Version, London.www.icmm.com/page/17638/new-publication-on-engaging-with-artisanal-and-small-scale-minersAssessmentsAfrican Network on Participatory Approaches. 2000.Village Participation in Rural Development.Royal Tropical Institute/World Bank, Washington DC.AusAID. 2002.The Logical Framework Approach.www.who.int/ncd/vision2020_actionplan/documents/LFAguidelines.pdfDFID. 2003.Tools for Development: A Handbook for Those Engaged in Development Activity.www.dfid.gov.uk/Documents/publications/toolsfordevelopment.pdfEldis.Livelihoods Connect: Sustainable Livelihoods Toolbox (web-based resources). Policy,institutions and processes.www.eldis.org/go/topics/dossiers/livelihoods-connect/toolsICMM. 2010.Good Practice Guidance on Health Impact Assessment.www.icmm.com/hiaCommunity Development Toolkit211

Referenced sourcescontinuedGLOSSARY AND REFERENCESIFC.Financial Valuation Tool for Sustainability Investments.http://fvtool.comIFC. 2009.Projects and People: A Handbook for Addressing Project-Induced In-Migration.Washington DC.www.ifc.org/ifcext/sustainability.nsf/content/publications_resettlementIFC. 2007.Stakeholder Engagement: A Good Practice Handbook for Companies Doing Business inEmerging Markets. Washington DC.www.ifc.org/ifcext/sustainability.nsf/content/publications_resettlementIFC. 2003.Good Practice Note: Addressing the Social Dimensions of Private Sector Projects.Washington DC.www.ifc.org/ifcext/sustainability.nsf/content/publications_resettlementInternational Association for Impact Assessment (IAIA), IAIA website. 2012.www.iaia.org/default.aspxKumar, S. 2002.Methods for Community Participation: A Complete Guide for Practitioners. ITDG, London.Minerals Council of Australia. 2010.Socioeconomic Benefits and Impacts: An Assessment and Planning Toolkit. Canberra.www.minerals.org.au/file_upload/files/resources/SEIBA-Toolkit-draft23August.pdfNational Environment Secretariat, Government of Kenya; Clark University;Egerton University; and the Center for International Development and Environment of theWorld Resources Institute. 1991.Participatory Rural Appraisal Handbook: Conducting PRAs in Kenya.Oduor-Naoh, E. et al. 1992.Implementing PRA: A Handbook to Facilitate Participatory Rural Appraisal.Program for International Development, Clark University, Worcester, MA.Rietbergen-McCracken, J. and Narayan, D. (compilers). 1998.Participation and Social Assessment: Tools and Techniques.International Bank for Reconstruction and Development/World Bank, Washington DC.SIAhub, Social Impact Assessment website. 2012.www.socialimpactassessment.com/resources-references.asp212 Community Development Toolkit

Referenced sourcescontinuedWorld Bank. 2003.Social Analysis Sourcebook: Incorporating Social Dimensions into Bank-Supported Operations.Washington DC.http://web.worldbank.org/WBSITE/EXTERNAL/TOPICS/EXTSOCIALDEV/0,,contentMDK:21177387~pagePK:64168445~piPK:64168309~theSitePK:3177395,00.htmlWorld Bank. 1998.Participation and Social Assessment: Tools and Techniques. Washington DC.http://info.worldbank.org/etools/docs/library/238582/toolkit.pdfWorld Bank. 1996.The World Bank Participation Sourcebook, Appendix 1: Methods and tools for social analysis.Washington DC.GLOSSARY AND REFERENCESMany reference works about PRA methods can be found at:www.clarku.edu/departments/idce/publications.shtmlCase studiesBHP Billitonwww.bhpbilliton.com/home/aboutus/sustainability/Pages/Sustainability-in-action.aspxNewmontwww.beyondthemine.comRio Tinto (gender case study)www.riotinto.com/rio-apps/riotinto_operationmap/pdf/Case_study_3_%20Rio_Tinto_in_Mongolia.pdfValewww.vale.comXstratawww.xstrata.com/sustainability/casestudiesCommunity development and conflictGossen, R. et al. 2002.A Business Guide to Conflict Impact Assessment and Risk Management.http://commdev.org/content/document/detail/1433/ICMM, ICRC, IFC, IPIECA. 2011.Voluntary Principles on Security and Human Rights: Implementation Guidance Tools.www.voluntaryprinciples.org/resourcesCommunity Development Toolkit213

Referenced sourcescontinuedGLOSSARY AND REFERENCESInstitute for Human Rights and Business. 2011.From Red to Green Flags.www.ihrb.org/news/2011/from_red_to_green_flags.htmlInternational Alert. 2008.Red Flags: Liability Risks for Companies Operating in High-Risk Zones.www.redflags.infoInternational Alert. 2005.Conflict-Sensitive Business Practice: Guidance for Extractive Industries.www.international-alert.org/resources/publications/conflict-sensitive-business-practice-guidance-extractive-industriesMcPhail, K. Presentation, Responsible Business and Investment in Conflict-Affected Areas:Global Compact Network Sudan.Strategic Community Investment: A Corporate Perspective.www.unglobalcompact.org/docs/issues_doc/Peace_and_Business/Presentations/McPhail.pdfWorld Bank. 2008.Clarifying Challenges in Conflict and Post-Conflict Settings.Social Development How to Series.http://go.worldbank.org/414DCE1FE0World Bank, Social Development Department. 2006.Community-Driven Development in the Context of Conflict-Affected Countries: Challengesand Opportunities.http://siteresources.worldbank.org/INTCDD/Resources/CDD_and_Conflict.pdfGrievance mechanismsCAO, World Bank Group. 2008.A Guide to Designing and Implementing Grievance Mechanisms for Development Projects.http://commdev.org/content/document/detail/2269/Centre for Social Responsibility in Mining. 2009.Mining Industry Perspectives on Handling Community Grievances: Summary and Analysis ofIndustry Interviews. University of Queensland.www.csrm.uq.edu.au/docs/Mining%20industry%20perspectives%20on%20handling%20community%20grievances.pdfHarvard University, Corporate Social Responsibility Initiative. 2008.Rights-Compatible Grievance Mechanisms: A Guidance Tool for Companies and TheirStakeholders.www.reports-and-materials.org/Grievance-mechanisms-principles-Jan-2008.pdf214 Community Development Toolkit

Referenced sourcescontinuedICMM. 2009.Human Rights in the Mining and Metals Industry: Handling and Resolving Local LevelConcerns and Grievances. Pilot Testing Version.www.icmm.com/page/15816/human-rights-in-the-mining-metals-sector-handling-and-resolving-local-level-concerns-grievancesIFC. 2009.Addressing Grievances from Project-Affected Communities.Good Practice Note, Washington DC.www.ifc.org/ifcext/sustainability.nsf/content/publications_resettlementGLOSSARY AND REFERENCESHuman rights and community developmentAim for Human Rights. 2009.Guide to Corporate Human Rights Impact Assessment Tools.www.humanrightsimpact.org/themes/business-centre/hria-in-business/guide-to-corporatehuman-rights-impact-assessment-tools/ICMM. 2009.Human Rights in the Mining and Metals Industry: Overview, Management Approach and Issues.www.icmm.com/page/14855/icmm-presents-new-guidance-note-on-mining-and-human-rightsIFC. 2010.Guide to Human Rights Impact Assessment and Management. Washington DC.www.ifc.org/ifcext/sustainability.nsf/Content/Publications_Handbook_HRIARuggie, J. 2008.Protect, Respect and Remedy: A Framework for Business and Human Rights, Report of theSpecial Representative of the Secretary-General on the Issue of Human Rights andTransnational Corporations and Other Business Enterprises.www.unglobalcompact.org/docs/issues_doc/human_rights/Human_Rights_Working_Group/29Apr08_7_Report_of_SRSG_to_HRC.pdfUnited Nations Office of the High Commissioner for Human Rights. 2011.The Guiding Principles on Business and Human Rights: Implementing the United Nations“Protect, Respect and Remedy” Framework. Geneva.http://www.ohchr.org/Documents/Issues/Business/A-HRC-17-31_AEV.pdfCommunity Development Toolkit215

Referenced sourcescontinuedGLOSSARY AND REFERENCESIndigenous PeoplesAustralian Government Department of Industry, Tourism and Resources. 2007.Leading Practice Sustainable Development Program for the Mining Industry: Working withIndigenous Communities. Canberra.www.ret.gov.au/resources/Documents/LPSDP/LPSDP-IndigenousCommunitiesHandbook.pdfGibson, G. and O’Faircheallaigh, C. 2010.IBA Community Toolkit: Negotiation and Implementation of Impact and Benefit Agreements.www.ibacommunitytoolkit.caICMM. 2010.Good Practice Guide: Indigenous Peoples and Mining.www.icmm.com/library/indigenouspeoplesguideIn-migrationIFC. 2009.Projects and People: A Handbook for Addressing Project-Induced In-Migration.http://commdev.org/section/topics/in_migrationInternational standards/voluntary initiativesICMMwww.icmm.com/our-work/sustainable-development-frameworkIFC’s Performance Standards. 2012. Washington DC.http://www1.ifc.org/wps/wcm/connect/topics_ext_content/ifc_external_corporate_site/ifc+sustainability/sustainability+framework/sustainability+framework+-+2012/performance+standards+and+guidance+notes+2012/performance+standards+-+2012International Organization for Standardization (ISO). 2010.ISO 26000 Social Responsibility Standard. Geneva.www.iso.org/iso/iso_catalogue/management_standards/social_responsibility.htmLocal procurementEnterprise Facilitation on the Sirolli Institute website.www.sirolli.comIFC. 2011.A Guide to Getting Started in Local Procurement. Washington DC.www.commdev.org/content/document/detail/2774/216 Community Development Toolkit

Referenced sourcescontinuedVarious Oil, Gas, and Mining Sustainable Community Development Fund resources on localprocurement are available at:http://commdev.org/section/tools/local_supplier_devpMine closureICMM. 2008.Planning for Integrated Mine Closure: Toolkit.www.icmm.com/page/9568/planning-for-integrated-mine-closure-toolkitMining and genderGLOSSARY AND REFERENCESAsian Development Bank. 2006.Gender Checklist: Agriculture.www.adb.org/Documents/Manuals/Gender_Checklists/Agriculture/default.asp?p=genchckDanish Institute for Human Rights. 2006.Human Rights Compliance Assessment (HRCA) Quick Check.https://hrca2.humanrightsbusiness.org/docs/file/HRCA%20Quick%20Check_English.pdfDowling, S. 2009.Gender Impact Assessment: An Introductory Guide.Australian National University.Dowling, S. 2008.Gender Analysis: An Introductory Guide.Australian National University.March, C., Smyth, I. and Mukhopadhyay, M. 1999.A Guide to Gender-Analysis Frameworks. Oxfam GB, Oxford.Oxfam Australia. 2009.Guide to gender impact assessment. Melbourne.Rio Tinto. 2009.Why Gender Matters. Australia.www.riotinto.com/documents/ReportsPublications/Rio_Tinto_gender_guide.pdfWorld Bank. 2009.Mainstreaming Gender into Extractive Industries Projects: Guidance Note for Task TeamLeaders. Extractive Industries and Development Series, 9.http://siteresources.worldbank.org/EXTOGMC/Resources/eifd9_gender_guidance.pdfCommunity Development Toolkit217

Referenced sourcescontinuedGLOSSARY AND REFERENCESPartnershipsICMM. 2011.Mining: Partnerships for Development Toolkit.www.icmm.com/page/61160/icmm-launches-mining-partnerships-for-development-toolkitICMM. 2010.Making Mining Count in Peru, Ghana and Tanzania: Case Studies. Three separate reports.www.icmm.com/mpd/partnershipsICMM. 2010.Mapping In-Country Partnerships.www.icmm.com/library/mappingODI/Business Partners for Development. 2001.Training Modules: Tri-Sector Partnerships for Managing Social Issues in the ExtractiveIndustries, Working Paper 7.www.odi.org.uk/work/projects/98-02-bpd-natural-resources-cluster/html/pub_working.html#World Bank, Business Partners for Development.www.bpdweb.com/overview.htmResettlementAsian Development Bank. 1998.Handbook on Resettlement: A Guide to Good Practice. Manila.www.adb.org/documents/handbook-resettlement-guide-good-practiceEuropean Bank for Reconstruction and Development’s Performance Requirement 5: LandAcquisition, Involuntary Resettlement and Economic Displacement.www.ebrd.com/downloads/about/sustainability/ESP_PR05_Eng.pdfIFC. 2002.Handbook for Preparing a Resettlement Action Plan. Washington DC.www.ifc.org/ifcext/sustainability.nsf/content/publications_resettlement218 Community Development Toolkit

Referenced sourcescontinuedStakeholder engagementIFC. 2007.Stakeholder Engagement: A Good Practice Handbook for Companies Doing Business inEmerging Markets. Washington DC.www.ifc.org/ifcext/sustainability.nsf/content/publications_resettlementInternational Business Leaders Forum/World Business Council for Sustainable Development.A Business Guide to Development Actors.www.wbcsd.org/pages/edocument/edocumentdetails.aspx?id=102&nosearchcontextkey=trueGLOSSARY AND REFERENCESStrategic community investmentIFC. 2010.Strategic Community Investment: A Good Practice Handbook for Companies Doing Businessin Emerging Markets. Washington DC.www.ifc.org/ifcext/sustainability.nsf/content/publications_resettlementWorld Bank. 2011.Sharing Mining Benefits in Developing Countries: The Experience with Foundations, Trustsand Funds, Extractive Industries for Development Series. Washington DC.http://web.worldbank.org/WBSITE/EXTERNAL/TOPICS/EXTOGMC/0,,contentMDK:22950635~pagePK:210058~piPK:210062~theSitePK:336930,00.htmlCommunity Development Toolkit219

AcknowledgementsGLOSSARY AND REFERENCESOriginal project partnersICMM is extremely grateful to the World BankGroup’s Oil, Gas and Mining Policy Divisionfor partnering with ICMM on the developmentof the Community Development Toolkit in2005. The original funding support fromESMAP is also gratefully acknowledged.In addition, ICMM would like to sincerelythank the following individuals from theWorld Bank’s Oil, Gas and MiningSustainable Community Development Fund(IFC/CommDev) for their constructivecomments on the second draft of this versionof the toolkit: Maria Arsenova, Arjun Bhalla,Jelena Lukiç, Veronica Nyhan Jones andDafna Tapiero.External contributorsA draft of the toolkit was also circulated toa number of individuals and organizationswith known expertise in this area. ICMM isindebted to those that took the time andeffort to provide comments. Please notethat their involvement in this way does notimply any endorsement for the documentor its contents.Cristian Parra, Bernadetta Devi and NinaCollins (Centre for Social Responsibility inMining, University of Queensland)Jo Render (ERM)Diana Klein (International Alert)Angus Wong and Gary MacDonald (MonkeyForest Consulting)Susan Joyce (On Common Ground)Serena Lillywhite (Oxfam Australia)Kirk Herbertson (World Resources Institute)Luc Zandvliet (Triple R Alliance)ICMM working groupThe development of the toolkit was overseenby an ICMM working group chaired byLiesel Filgueiras (Vale). ICMM is grateful tothe members of the working group for theirengagement on iterative drafts that resultedin the current document.The working group comprised:Jon Samuel (Anglo American)Thando Njoko (AngloGold Ashanti)Peter Sinclair (Barrick)Melinda Buckland (BHP Billiton)Stan Batey (Freeport-McMoRan)Shari Knoerzer (Freeport-McMoRan)Dina Aloi (Goldcorp)Rinaldo Mancin (IBRAM)Michiharu Yamamoto (JX Nippon)Marilie Liebenberg (Lonmin)Barnard Mokwena (Lonmin)Elize Swart (Lonmin)Pierre Gratton (MAC)Melanie Stutsel (MCA)Andrew Hocking (MMG)Ross Gallinger (PDAC)Eric Christensen (Rio Tinto)Bruce Harvey (Rio Tinto)Richard Labo (Rio Tinto)Marcelle Shoop (Rio Tinto)Gillian Davidson (Teck)Dave Parker (Teck)Juliana Ferreira (Vale)Viviane Vanni Leffingwell (Vale)Patricia Mantovani (Vale)Leonardo Mercante (Vale)Claire Divver (Xstrata).ICMM teamClaire White and Aidan Davy led the processto develop this toolkit on behalf of the ICMMSecretariat.Consultant supportSpecial thanks go to Catherine Macdonald(Social Sustainability Services Services) whowrote the 2005 version of the toolkit andrestructured and updated the content for thisversion. ICMM is also very grateful to ElizabethWall (Shared Resources) who provided thoroughedits on the entire toolkit and enhanced anumber of the tools with helpful contentadditions. ICMM is appreciative of the workDave Prescott did in drafting a number of thecase studies that are included in this toolkit.220 Community Development Toolkit

DisclaimerThis publication contains general guidance onlyand should not be relied upon as a substitute forappropriate technical expertise. While reasonableprecautions have been taken to verify theinformation contained in this publication as at thedate of publication, it is being distributed withoutwarranty of any kind, either express or implied.In no event shall the International Council onMining and Metals (“ICMM”) be liable fordamages or losses of any kind, however arising,from the use of, or reliance on this document.The responsibility for the interpretation and useof this publication lies with the user (who shouldnot assume that it is error-free or that it will besuitable for the user's purpose) and ICMMassumes no responsibility whatsoever for errorsor omissions in this publication or in other sourcematerials which are referenced by this publication.The views expressed do not necessarily representthe decisions or the stated policy of ICMM.This publication has been developed to supportimplementation of ICMM commitments, howeverthe user should note that this publication doesnot constitute a position statement or othermandatory commitment which members ofICMM are obliged to adopt under the ICMMSustainable Development Framework.We are not responsible for, and make norepresentation on, the content or reliability oflinked websites, and linking should not be takenas endorsement of any kind. We have no controlover the availability of linked pages and acceptno responsibility for them.Publication details2012-7Published by the International Council on Miningand Metals (ICMM), London, UK.© 2012 International Council on Mining andMetals. The ICMM logo is a trade mark of theInternational Council on Mining and Metals.Registered in the United Kingdom, Australiaand Japan.Reproduction of this publication for educationalor other non-commercial purposes is authorizedwithout prior written permission from thecopyright holders provided the source is fullyacknowledged. Reproduction of this publicationfor resale or other commercial purposes isprohibited without prior written permission of thecopyright holders.ISBN: 978-0-9559983-8-6Available from: ICMM, www.icmm.com,info@icmm.comDesign: Duo Design LimitedThis toolkit is printed on Satimat Silk. The paperstock is manufactured at a mill that is ISO 9001,ISO 14001 and is FSC certified. It contains 15%post-consumer recycled fibre and elementalchlorine free (ECF) fibre sourced from wellmanagedforests.The designations employed and the presentationof the material in this publication do not implythe expression of any opinion whatsoever on thepart of ICMM concerning the legal status of anycountry, territory, city or area or of its authorities,or concerning delimitation of its frontiers orboundaries. In addition, the mention of specificentities, individuals, source materials, tradenames or commercial processes in this publicationdoes not constitute endorsement by ICMM.This disclaimer should be construed in accordancewith the laws of England.

ICMMThe International Council on Mining andMetals (ICMM) was established in 2001to improve sustainable developmentperformance in the mining and metalsindustry. Today, it brings together manyof the world’s largest mining and metalscompanies as well as national andregional mining associations and globalcommodity associations. Our vision isone of leading companies workingtogether and with others to strengthenthe contribution of mining, minerals andmetals to sustainable development.ICMM35/38 Portman SquareLondon W1H 6LRUnited KingdomPhone: +44 (0) 20 7467 5070Fax: +44 (0) 20 7467 5071Email: info@icmm.comwww.icmm.com