[PDF] Community Development Toolkit - CommDev

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