Wayne discusses Corporate Social Responsibility and Corporate Strategy at a Conference on CSR in Africa presented by the Canadian Council on Africa: Calgary, Canada – June 2003
Wayne discusses Corporate Social Responsibility and Corporate Strategy at a Conference on CSR in Africa presented by the Canadian Council on Africa: Calgary, Canada – June 2003 www.waynedunn.com
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Wayne discusses Corporate Social Responsibility and Corporate Strategy at a Conference on CSR in Africa presented by the Canadian Council on Africa: Calgary, Canada – June 2003
1. Beyond the Paycheck
Placer Dome’s CSR Program in Southern Africa
Presented
by
Wayne Dunn
Corporate Social Responsibility and Business
Renaissance in Africa
Calgary, Canada June 2003
PLACER DOME
2. Objective
• Case study of innovative developmental CSR
• Demonstrate application of key CSR principles
– CSR/Sustainability Policy
– Strategic interventions vs. shotgun approaches
– Impact metrics vs. expense metrics
– Partnership strategies (financial, operational,
technical)
– Leadership and leverage
PLACER DOME Slide 2
3. Presentation Overview
• Background – how did this get
started
• The Care Project
–Developing and implementing the
plan (challenges, partners,
learnings)
–Business value created
• HIV/AIDS
– The Crisis and why does it matter
– Programs and activities
• Where are we going from here
• Discussion
PLACER DOME Slide 3
4. Background
• 1990s saw massive changes in South
African mining industry – over
100,000 jobs lost as the industry
restructured;
• 1999 – Placer Dome purchased a
50% interest in South Deep (WAL), a
mine located just outside
Johannesburg
– This was the first major post-apartheid
foreign investment in the South African
mining industry
PLACER DOME Slide 4
5. Background (cont)
• In late 1999 after detailed study
management realized that economic reality
dictated major restructuring at South Deep
• 1/3 of the South Deep workforce (over
2,500) workers were retrenched
– Industry standard retrenchment packages
consisted of 2 weeks salary per year of
service plus access to onsite training
• South Deep management compared the
industry standard retrenchment package
against the commitment to stakeholders
inherent in the Placer Dome Sustainability
Policy and decided that the workers
deserved more – that the commitment
went
BEYOND THE PAYCHECK
PLACER DOME Slide 5
7. The Care Project
• A commitment to mitigating the social
and economic impact of retrenchment
at the family and community level
• A target of assisting at least 70% of
the retrenchees and their families to
become economically active
• A commitment to develop HIV/AIDS
programming initiatives
• A commitment to enable spouses
(women) to be able to benefit directly
from retrenchment benefits
• 2 year time frame and R15 million
(CAD$3.6 million) budget was
established
PLACER DOME Slide 7
8. Implications
• The Care project decisions and
commitments had a huge
implication for South Deep
management
• Entire industry watching to see
what this Canadian newcomer
will do
PLACER DOME Slide 8
9. 2560 Retrenchees
•Mozambique
•Lesotho
•South Africa
•Swaziland
•Botswana
The Mine
How to successfully provide
socio-economic support across
remote rural regions of five
countries
PLACER DOME Slide 9
10. The Initial 4-Step Plan
1. Consultations with retrenchees in their villages
2. Recruit (from amongst the retrenchees) a group
of 25-30 fieldworkers who would provide
frontline support to the retrenchees and their
families
3. Locate and register the retrenchees
4. Provide them with training and support to
enable them to become economically active
All of the above to be done in partnership with
MDA, TEBA and other partners
PLACER DOME Slide 10
11. Reality was different than we expected
• Retrenchees and their Consultations with
retrenchees
Unions were still angry
over the contested
retrenchment
• Retrenchees’ homes
were difficult to locate
and registration was
often problematic
Walking to a remote retrenchee
homestead in Lesotho
PLACER DOME Slide 11
12. Reality was different than we expected
• Our lack of socio-economic development
experience was an issue
• Partnerships took longer to form and more time to
manage than expected
• Industry skepticism
• Mozambique floods
• National borders
• Micro-finance
• HIV/AIDS
• Fieldworker training programs
• Retrenchee education levels
• Centralized delivery didn’t work
• Project was under-financed
• We couldn’t do it in two years
• Etc.
PLACER DOME Slide 12
13. Meeting the challenges
• Negotiated a public private
partnership with CIDA that
contributed CAD$ 2 million in
additional resources
• Kept working at getting our
partnerships working for everyone
• Leading by example gradually
demonstrated our commitment to
industry, unions and others
• Continual revision of plan and project
delivery to ensure it met the needs of
the recipients
PLACER DOME Slide 13
14. Orientation and Awareness Phase
The Care 1. Registration & Homestead Visits
2. District Counselling Sessions
3. Open Days/Career Fairs
4. Financial Lifes Skills Training
5. Feedback and Choices Session
Process Personal
Economic Plan
Prepared &
Assessed
Decision on Economic Option
Enterprise Stream
Employment Stream
Business Planning & Preparation Employment Planning & Preparation
13-step process 1. Business Orientation
a) Introduction to Business
1. Identification of Employment Options
2. Skills Training (Vocational/Agricultural, etc)
b) Skills/Product Training 3. Employment Counseling / Placement
Delivered 2. Develop Draft Business Plan
(to be reviewed with Counselor)
(Job search/Resume, etc.)
18 times (plan will contain market assessment,
financial, operational and skills upgrading plan)
3. Preparation of Micro-Finance Application
Personal
Employment Plan
Prepared
Across
Business &
Five countries Financing Plan Ongoing Processes
Prepared
Follow-up sessions/
Evaluation of Micro Finance Application activities to monitor
effectiveness of
Business Operation interventions
1. Ongoing availability of Technical Assistance
and Business Counselling Communication and
2. Ongoing faclitiation of skills training needs consultation with stakeholders
(i.e., business, agriculture, vocational, etc.)
Continuous improvement
process (review feedback;
enhance programs,
procedures, processes)
Retrenchee is Re-Integrated
PLACER DOME and Economically Active
Slide 14
15. Some results
• 92% of the retrenchees have been
located and registered
• 57% of those (1,250) are
economically active
• 65% (1,556) have received financial
life skills training
• Many of the trainees were women
• Care process is becoming an
industry standard in RSA and
replicated elsewhere in Africa and
globally
• Development infrastructure and
partnerships throughout the five
country region
PLACER DOME Slide 15
21. And the business value is…
• HIV/AIDS, Black Empowerment, new
mining legislation, social scorecards,
escalating security challenges and a
myriad of other issues are the daily facts
of mining life. Mines and mining
companies must demonstrate an ability
to create meaningful value for people,
communities and other social
stakeholders – and they must do so while
meeting increasingly challenging
financial targets.
• Placer Dome is not a charity and the
Care project was not just some sort of
corporate philanthropy
PLACER DOME Slide 21
22. The Mining World Has Changed
• “We are determined to provide multi-
skilling to workers and assist them to
cope with retrenchments. This is a must
and not a choice for industry”
• “It is important for mining to ensure that
economic benefits accrue to society as a
whole and more specifically to
communities affected by mining . . . The
social environment has not, in my
opinion, been adequately addressed in
the past”
Hon. Phumzile Mlambo-Ngcuka
South Africa Minister of Minerals and
Energy
PLACER DOME Slide 22
23. What’s in it for Placer Dome?
We believe that our ability to effectively
manage social issues is a competitive
advantage as we look towards the future of
the industry in South Africa and globally
Through programs like Care we are better
able to manage risk and are securing our
long term future in South Africa and
throughout the sub-continent
Piet Kolbe
Mine Manager, South Deep
PLACER DOME Slide 23
24. And then there is HIV/AIDS
• RSA ACCOUNTED FOR
NEARLY 1 IN 8 OF THE NEW Life Expectancy
HIV INFECTIONS THAT
70
OCCURRED WORLD WIDE IN 65
2000 60
• HIV+ PREVALENCE RATE IN
WOMEN ATTENDING ANTE- 50
NATAL CLINICS INCREASED 40 40
FROM 0.7% IN 1990 TO 24.8%
IN 2001 30
• AVERAGE OF 1700 NEW 20
INFECTIONS PER DAY
• LIFE EXPECTANCY WILL 10
DECLINE FROM 65 TO 40 0
2001 2011
BY 2011
PLACER DOME Slide 24
25. HIV/AIDS Facts
• ESTIMATED THAT 12% OF TOTAL RSA
POPULATION AND 25% OF MINEWORKERS
ARE HIV+
• ALREADY 400,000 PEOPLE ARE AIDS SICK,
AND THIS WILL INCREASE TO 1,4 M BY 2010
• YOUNG WOMEN PARTICULARLY
VULNERABLE – 23.9% AGED BETWEEN 15 –
49 ALREADY INFECTED AND WILL RISE TO
29.7% BY 2007
• AIDS ORPHANS AT PRESENT AMOUNT TO
660,000+ AND WILL RISE TO 1,8M BY 2015
• ACCUMULATIVE AIDS DEATHS WILL RISE TO
9M BY 2015
PLACER DOME Slide 25
26. HIV/AIDS Impact
• REDUCED ECONOMIC GROWTH RATE – 2010 GDP 20% below a non AIDS
scenario
• REDUCED POPULATION – RSA population 10M smaller than non AIDS scenario
• SKYROCKETING DEMANDS ON PUBLIC HEALTH SYSTEM -
• RADICALLY CHANGED PRIVATE SPENDING PATTERNS – to healthcare and
funeral costs
• IMPACT ON SOCIO-ECONOMIC STABILITY? (orphans)
HIV/AIDS is the worst epidemic in human
history. At every level it is causing
devastation, destruction and suffering
throughout Southern Africa
This is the reality for business operating in much of
Africa today. Nobody can afford to ignore it
PLACER DOME Slide 26
27. HIV/AIDS and Gold Mining
• $10/oz impact if nothing is
done (5% of production
costs)
• ~$3/oz with maximum
intervention
• Impact on social and
political stability?
PLACER DOME Slide 27
28. HIV/AIDS Programming
Our program – multi-
level and holistic
• Education
• Prevention
• Treatment
• Impact mitigation (when
one has AIDS)
• On the minesite
• In local communities
• In rural areas where our
workers come from
PLACER DOME Slide 28
29. Minesite Program
• TRAINING AND
EDUCATION
• STI & TB TREATMENT
• CONDOM DISTRIBUTION
• PEER EDUCATION
• VOLUNTARY
COUNSELING AND
TESTING (VCT)
• WELLNESS PROGRAM
• MEDICAL REPATRIATION
PLACER DOME Slide 29
31. Current Community Program
• AWARENESS AND EDUCATION PROGRAMS
• MOBILE CLINIC
• CONDOM & FEMIDOM DISTRIBUTION
• PERIODIC PRESUMPTIVE TREATMENT (PPT)
• TREATMENT FOR SEXUALLY TRANSMITTED
INFECTIONS ( STI)
PLACER DOME Slide 31
33. And when HIV prevention doesn’t work
• What to do when people can
no longer work?
• They return to their villages
where there is little or no
support
• Families are overwhelmed
• Tremendous social and
economic impact
• Addressing it effectively is
too much for one company
PLACER DOME Slide 33
34. Industry Home Based Care
AIDS CAMPAIGN TEAM MINING
• TEBA INFRA-STRUCTURE
• TRAINING OF CARE GIVERS
• SUPPORT STRUCTURE –
QUALIFIED STAFF
• MONTHLY MEDICATION
• WORK WITH OTHER
STAKEHOLDERS (E.G.
TRADITIONAL HEALERS)
• WORLD BANK DEVELOPMENT
INNOVATION AWARD (US$100,000)
PLACER DOME Slide 34
36. INDUSTRY HOME BASED CARE RESULTS
(Year One)
Milestone Target Actual
Community Care
Supporters engaged 87 127
Community Care Training 87 123
People under Home
Based Care 696 801
THE PROJECT EXCEEDED TARGETS
IN EVERY AREA
PLACER DOME Slide 36
37. Overview of South Deep AIDS Programming
SOUTH DEEP Sustainable Development Department
On Mine Program Community Program
•Voluntary Counseling and testing HIV Negative
•Continue working
Wellness Program
Farm
Modified work program •Agricultural work / Environmental
Medical repatriation
Back to work or Re skilled
Home Based Care Benefits Care Positive
EC
HBC OPP
PLACER DOME Slide 37
38. But what happens to children and
families when the breadwinner
can’t work
PLACER DOME Slide 38
39. HIV/AIDS and Rural Areas
• HIV/AIDS is having a
monumental impact on the
socio-economic well being
of families throughout rural
Southern Africa
• Workers who used to
support extended families
of 10-20 people are
becoming too sick to work
and are coming home,
literally to die
PLACER DOME Slide 39
40. HIV/AIDS and Rural Areas
• Knowing that their family needs
the income and that there is little
medical care for them if they go
home, these workers are staying
on the job as long as possible
• In addition to the human tragedy,
this is having a severe impact on
business productivity
• There are solid business and
humane reasons to address this
problem
• But, economies of scale are
needed
PLACER DOME Slide 40
41. Where to next?
• The Care project piloted an effective
means of assisting rural families to
become economically active and has
an existing infrastructure and
management system in place
• Industry Home Based Care project
piloted a cost effective, fee for
service, program to support medically
repatriated workers and their families
PLACER DOME Slide 41
42. Our Vision for the Future
Care Positive Care Process
• Integrate the Home Based Care
project with the Care process and +
launch as a fee for service based
program to address the social and Home Based
economic impacts that AIDS is Care
having on rural families and
communities =
• Start with the mining industry but
design the infrastructure and Care Positive
management systems to enable
participation by other industries,
governments and donor community
stakeholders
PLACER DOME Slide 42
44. Summary and Discussion
• Case study of innovative developmental
CSR
• Demonstrate application of key CSR
principles
– CSR/Sustainability Policy
– Strategic interventions vs. shotgun
approaches
– Impact metrics vs. expense metrics
– Partnership strategies (financial,
operational, technical)
– Leadership and leverage
PLACER DOME Slide 44
45. Beyond the Paycheck
Placer Dome’s CSR Program in Southern Africa
Presented
by
Wayne Dunn
wayne@waynedunn.com
Corporate Social Responsibility and Business
Renaissance in Africa
Calgary, Canada June 2003
PLACER DOME