The costs of conflict with local communities in the extractive industry

Davis, Rachel and Franks, Daniel M. (2011). The costs of conflict with local communities in the extractive industry. In: David Brereton, Dante Pesce and Ximena Abogabir, Proceedings of the First International Seminar on Social Responsiblity in Mining. First International Seminar on Social Responsibility in Mining, Santiago, Chile, (1-13). 19 - 21 October 2011.

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Name Description MIMEType Size Downloads
Author Davis, Rachel
Franks, Daniel M.
Title of paper The costs of conflict with local communities in the extractive industry
Conference name First International Seminar on Social Responsibility in Mining
Conference location Santiago, Chile
Conference dates 19 - 21 October 2011
Proceedings title Proceedings of the First International Seminar on Social Responsiblity in Mining
Place of Publication Santiago, Chile
Publisher SRMinning
Publication Year 2011
Sub-type Fully published paper
Editor David Brereton
Dante Pesce
Ximena Abogabir
Start page 1
End page 13
Total pages 13
Collection year 2012
Language eng
Abstract/Summary The extractive industry has the potential to significantly transform environments, communities and economies. At times, such transformation may manifest in conflicts or disputes between a resource developer and local communities, or even complete breakdown of the company’s social licence to operate—with associated costs for the company, local communities, and the broader public. This paper aims to build knowledge about whether and how extractive companies assess, aggregate and understand the costs of conflict with local communities around their operations, and the potential loss of value where they do not do so. The objective is to explore the business case for improved risk management and community relations in the extractive industry as a whole. Through in‐depth, confidential interviews with over 40 key individuals (primarily from extractive companies but also including industry bodies, corporate law firms, insurers and research institutes) on the costs of company‐community conflict, the paper draws insights from how companies are responding to mitigate or avoid the occurrence, extent and costs of such conflict. From these interviews, and detailed case analysis, the paper identifies potential costs that can arise for extractive companies at different stages of a project’s life cycle (for example, costs to financing, construction, operations, reputation, etc.). A typology of costs is developed, tested and applied to 25 cases of company‐community conflict in the extractive industry. The paper concludes by drawing on this evidence base to reflect on the business case for improved risk management aimed at preventing and mitigating company‐community conflict.
Q-Index Code E1
Q-Index Status Confirmed Code
Institutional Status UQ
Additional Notes Printed in English, 179 pages. Includes book of abstracts + CD-ROM of complete articles. Price: USD $91.00 / CLP $41.000

 
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Created: Fri, 16 Sep 2011, 14:28:35 EST by Dr Daniel Franks on behalf of Centre for Social Responsibility in Mining