Opportunities for Managing Community Relations Through the Supply Chain by Monica Ospina 5th Annual Risk Mitigation & Corporate Social Responsibility (CSR)

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Presentation transcript:

Opportunities for Managing Community Relations Through the Supply Chain by Monica Ospina 5th Annual Risk Mitigation & Corporate Social Responsibility (CSR) in Africa and Emerging Markets Vancouver, 2011

The Challenge for the Extractive Industry: Managing relationships & expectations with local communities Global markets observe CSR practices and sustainable relations with local communities. Local communities have high expectations around the entry of extractive companies. Expectations around education, sanitation and employability. Strict environmental, socio-economic, and contractual regulations make it difficult for companies to welcome unqualified suppliers. Little knowledge about local capabilities and competences. Page 2 Copyright © 2011 O trade and market access

The Challenge for Locals: Gaining access to the supply chain Locals often lack understanding or knowledge around: Capabilities; Ability to innovate; Paths to satisfying client needs; Accessing the supply chain; and/or Becoming a qualified supplier. Modest local government support exists for private sector and capacity building programs. Locals may not meet industry standards around safety and quality due to: Informal businesses practices; Little knowledge of quality certifications; Deficiency in technical regulations. Page 3 Copyright © 2011 O trade and market access

Building Trust Mining activities affect communities over the long term Copyright © 2011 O trade and market access Page 4

Why Market Access, the Supply Chain and CSR ? PRIVATE SECTOR ACCESS TO EXTRACTIVE OPPORTUNITIES LOCAL COMMUNITIES ACCESS TO DO BUSINESS WITHIN THE SUPPLY CHAIN MARKET ACCESS Copyright © 2011 O trade and market access Page 5

Why Sustainable Supply Chains and Communities? Principles to build sustainable supply chain practices: Transparency Early Engagement Knowledge Transfer Expectations management Solid Anticorruption policies Principles to build sustainable supply chain practices: Transparency Early Engagement Knowledge Transfer Expectations management Solid Anticorruption policies Because we need partners committed to: Because we need partners committed to: Reduce risk Secure quality & HSE Build efficiencies innovation Reduce risk Secure quality & HSE Build efficiencies innovation Copyright © 2011 O trade and market access Page 6

Our Work: strengthen organizations by desinging CSR solutions around market access and efficiencies in the supply chain Strengthen Centers for Excellence CSR Management Innovation & Productivity Market Access Community Relations Client Relations Client Relations Supplier Relations Copyright © 2011 O trade and market access Page 7

Our Programs: CSR and the supply chain Local Community Procurement Program (LCPP) The Buyer Private Sector Local Organizations (Municipalities, Church, Social Associations) The Supplier Local SMEs LCPP Local Community Procurement Program SMEs learned how to self-identify core competences, how to access the oil and gas supply chain and understand the specific demands of Albertas Oil and Gas industry Lori Schmidt, Sr. Director, Productivity Alberta Industry Development Branch, Government of Alberta, Canada Page 8 Copyright © 2011 O trade and market access

Thank you Monica Ospina, Director Tel: