1. Governance Ecosystems CSR in the Latin American Mining Sector Edited by Julia Sagebien SBA Dalhousie University and EGAE University of Puerto Rico Nicole Marie Lindsay School of Communication, Simon Fraser University

2. Governance Ecosystems CSR in the Latin American Mining Sector Questions that inspired the research: – Why so much conflict? – Why is the literature so contradictory? – Why is the discourse so polarized? – Why is CSR necessary but not sufficient? Process: – IDRC grant “Both Sides Now” – Royal Roads University Conference, October 2009 – Palgrave Macmillan book Question that inspired the book: – How, under what conditions and enabled by which actors can CSR in the mining industry contribute to social and environmental value to communities and countries in a sustainable and broad-based manner?

3. Governance Ecosystems CSR in the Latin American Mining Sector Premise 1: Poverty, social exclusion, and environmental degradation, while often clearly exacerbated by irresponsible business, exist within broader local and global political economic context in which irresponsibility and lack of accountability are built into the system. Premise 2: CSR strategies conceptualized as a set of discretionary or voluntary actions originating within a company can provide firms with strategic response to some of the risks that systemic dynamics present, especially in the developing world. By addressing governance gaps, systemic risk is lowered, and firms increase their potential of obtaining a ‘social license to operate’. Premise 3: CSR as currently conceptualized cannot be expected to bring about the long-term, transformative change needed to address multi-actor, system-wide issues

4. Two-tier stakeholder map THE FIRM Employees Suppliers Customers Communities Financiers Government Media Competitors Consumer Advocate Groups Special Interest Groups Secondary StakeholdersPrimary Stakeholders

5. Governance Ecosystems CSR in the Latin American Mining Sector Premise 4: New analytical models that can capture system-wide dynamics and put CSR into context within a broader governance system should be used as a complement to traditional stakeholder- management CSR planning tools.

6. Social and Environmental Value Governance Ecosystems Model SEV CSR Home/Other Government Industry Players Communities The Firm Financial Institutions Host Government Media Reporting and Transparency Advocacy and Development NGOs Supranational Governance Corruption Customers

7. Governance Ecosystems CSR in the Latin American Mining Sector Social and Environmental Value Governance Ecosystems Model 1) A collectively defined central goal – the creation, enhancement and protection of social and environmental value (SEV). – Not firm-centric 2) The firm as just one of many role-bound actors embedded in a complex political system of conflicting and/or synergistic interests; – Political actors not just firm stakeholders 3) CSR programs and strategies as just one of the mechanisms available to the firm to ‘govern’ this system, with other mechanisms available to other actors in the collective governance of the system; and 4) System-wide eco-system of dynamics (including actions and inactions) can either disable or enable multi-actor, multi-mechanism governance efforts – Corruption is systemic disabler

8. Social and Environmental Value Governance Ecosystems Model SEV CSR Home/Other Government Industry Players Communities The Firm Financial Institutions Host Government Media Reporting and Transparency Advocacy and Development NGOs Supranational Governance Corruption Customers

9. Governance Ecosystems CSR in the Latin American Mining Sector governance – ‘the act of governing’ - actors in the system are political actors involved in making decisions that affect the collective social and environmental value. Issues of power and legitimacy form part of this notion. eco-system -a biological community of interacting organisms and their physical environment - each organism and the interactions between them in a system shapes the organisms involved in the interaction and the entire system itself. governance ecosystem bears some similarity to notion of ‘political economy’ and ‘political ecology’.

10. Governance Ecosystems CSR in the Latin American Mining Sector

12. Thank You