Seca Lanse fe Operate 1791 alta ith Cogs ‘ire ening oss ka opty fhe com- mmr’ prions, reper the commany Tages Fesposivenes, anda wlegess to sae decision making ‘on mater: of mal concer All ofthe, yrious po partons, conte to stakeholer perceos of leptin, ‘lb, and swore. ‘On te process of coming 0 bold shared goal and ison fo the future ental pating oneself inthe oer pa. (ys koe. Ths ean be lial, bt social capil from he ‘enna ource cen mae tmch ear tn Op overage ‘dh the muta perspective taking fete shared ea). Dynomism inthe Process ‘The evel of socal epi inthe e-saebolder rein Ships can Ducat Uvough the fe yee of te mie. Some the determining factors may be beyond te eat of ier fr Boh pate. More fen, tae actos of one o bth par esas or lower te love! etl capital, wih protale ‘fcr on the Teel of socal ens An example for a9 igure 17.26 provide grap representation of the anion of the sal cena forthe Sat Cristal project bere 14-year tine ered fom 1994 to 2008. Tay. San (Castalia lage zo, ead, eid ser mine in the aout. feo Allan of Balla, operated by Miaera San Cstobl {nS kin is 659% ohne by Apex Silver Mines Lemted $d 384 by Sumit Corporation The quality a th soil cease wa etna ntal rom stra document sn the experince of pets ho hed been presen troghost he Ife ofthe poet uring Basket of tis nd then ‘ried toe ntervews ith community member ‘Ascanbe seen Figure 726th quality of te elaion ship changed over men spose to vanous fits, Which nny be sutmarzd a follow with erence othe tune sid the grep trce inthe Hue 1. Rights othe mining concession are acguied by Mints, {Bolivar ming consulig em, which, together with errminson the eimai neseve te re, ublabesJomal legal satus and permission #0 ar Sto onthe grou The company rpiiy bls soi Teptioncy mith ical communty by proving info ‘mation and employment {Geologie instore of widespread minerdizaion ste ‘ented. Mines, an later ASC Belvi LDC (ASC), tr Apex Silver Mints Limited suber teat ad ‘cgted Mats, stp up a logue wits the comma iy and provides sen Beets. Socal and en ‘onmentl baseline sade fora envionment pet ssesmen ar ited 9 Cearinfeatoos of very age mineral syste te dem State hgh ling ASE bien at tm oh ‘edevelped inthe nea fine Accordingly, te come busy begin proces ofconmlation vith he Comment ‘f'n Crit aot the populton say rom the ‘inert deport ASC empower te comm o mat geese aspects ofthe felcation such ay Sletion fe ew tw sie, design of bouss apd instr, Sigil, and bone package. The communty eames ofc tha hey ae partners nae) te jet [ASC has he mineral depos, bat the commit bat given its and to make the mine posible, Negtintons rn with he sister communiy of Culpna fr tan for ‘healings iy. ‘Acomprehesive resetemeet agree i igual wit ‘hein Castcbal community Aland purchase agreement ‘Sreached with Calpe rat aches an le bh ‘The sommarity of San Catal lest to the new ‘bum toptber wih the colonial hare and cemetery. ‘The women, nb wer ngeyexcied rom te ego" {Uations and planing ete eocation, vice comple About the oases: They are ot what we waste.” CCipion reldats wart wo thnk hat tey have tae ha da The project thn uasfened by ASC t MSC. Tras ix ‘road ena the compury bas led deliver oncom hough the company hn obtained ecerary permit fo Ecos and operate amie, there are now doubts a fo the easily ofthe prey andthe company has dest= ‘aly reduced the nmber of employees, ‘he projet ls easily Weease of low met pices. (MSC closes all fed options The communis ae ffunted aod rat los Contac between te cmnpay nd the communis tacome inkequet The company ‘oman soncomplan wile lr of he rentleret eenmet Credit islet The projec rims eg ‘uci the minds of community members beau hey ‘tet the employment andthe beter ft hey hope wile Real the nod to sbilize and strengthen he rele ‘onshp with the common, he company ints & Doren of asiatance catered on employment fr oe People gneulue, and tours. Creat I ered Sth delivery of te prog. ‘Abighy snavaive progr to encourage toute ‘ancked Colina K' becomes heavily volved San (Cia ege to beaut it would ser tave the ine recy pen th commas sseame the on. ‘Srction fei” mine notte poten fr employ ‘ment during constrctn, [New muzagement i inal to supervise costeton ‘hat has no knee ofthe soc history of the com ‘oitnnt tothe commutes. Coot betwen he cx any andthe communis beaks dow sb he campy ‘rope metings withthe communities Ut invlve top ‘management The communist fel deere thd der franchise because of percepon ht hey are not being ‘Soyo wad wun srpymct sed ing ‘re nt being honored rei soe skoe se ‘inay, Despite employes: for sost al lecl people, Social ieptimacy dans away asthe commutes fel they have ben overlooked the cooeocion ae td ‘ommitents dating back to 1999 roma unflie ‘Thy il belief Whe” mine ard our the les of the paroerhp that existed atthe time ofthe Floeton of san Crab 1 conuctr opens a toad though community gardons uid ofthe sgreed tea of eonsructin operations For the community of CulpinaK, hs ia ep set Soil [epic compromised and community elton: Tape fora period with demonsrton snd conotatonWe SE Wining Engineering Handbook a Figs 173.6 The ups ond downs af sod capital ot Son Cael mine it the company. MSC is abet neste ete of "oeement tha alos work to cotinus an bogie ro ttcted proces of negotiation forthe segs fu tional nnd for mine insrectre fais, Clpnn K Femains at dstance ese of ring concer tt thy wile nverseyalfected by the talg ali, Maoagement comes to ecopaize the proses oss ented bythe dagedrelaonstip td takes ston 12 improve the station. The ompaty proposes te frm ‘on of «commun. baed proces forthe design and ‘management of sonmuniy- development progr, The onus see ths an oppotnty to ake ontel of ther ova fue and fel empowered A the sane tne, MSC begins an scelesed progam to comply witha ‘ior commiteats The commanites soe pages td fee reassured. Carsucton end tn mplymet is avaiable to sll Dislogut i etalished ‘vith Calin K bound the ae of ehmagenen of te {aligs Legiiey rept. ‘Amupagenen cam fr ppd tra th mine reps: ing the consucon testy which bongs sabi nd ‘uly esabistesb poutive dislogve with te come unites, All pie comamitnent have bon met ore ita wsible procs of being met An acess foal employment program. sr mitted Communtybased ‘lng for socal and ecoromis develope fee Sry. Creibity estore. MSC respnds to cocumunty concerns regarding the ‘management of tangs by forming» Jon montering foie with te comunity Exerc lmproverens se mae in San Crise ae Cupine Credit sengthened. Ar so-ovne of te mie, the communities make representations f9 te tains! ‘overeat topo of the company fn esonse fo ‘nemesis of ieeaed taxes and tents Of nasi. tin. Tat, however, ening eusive ‘With the mine operation nd the communities ily Involved inthe management of ther own developmen ‘ncollaboration with MSC an acl nd reins gover- tet there re cryindetone hat st col ery ‘tereltionsiy RELATIONSHIP BUILDING CHANGES BOTH SIDES The Fiction of “Community” as on Entity Uptothis pot, tie ere communi ba etn usd in ceed vy that ka Wey tht pane neti aed signs ‘purpose at doesnt svnye exit Many so-called comme sites ae realy agprepations of communes andlor Kip fd inerest group, However, he tact fhe soil Honse 'o operate presupposes at all he fame, cas, net ‘ose, and isttoons in geographic ares ave nivel st ‘Shred ison fer th iu ort ata agres-pon sto rors for ody This hind of cosine eguety ase. Isic cases, cas o be bit That i why ening sot lense to operate ten involves the company ia bul, ‘ck cail, alo known ay communy Balding, spac building. ad istitatonsrenphenne Insts, nd the companies item, veo ea how ‘outta inthe Kindo eam partnerships tht car f social license. Reeiocal, communis that want he tenets of prtcigatig in he rnmaream economy have To develop the socal seucre tat make they capable oe ing leptimats eed, nd retort social hese, Commoniies Not Qualified o ksue « Socal Ucense fe Operate ‘The Key to 2 community’ capcity to sae a meaning fl scial iene i he pte of saci capi tha a work stuctue, Without the rg pater of soc ea {a community cant sick oe conten though incviable changes noel pois, Companies want eee that refuces the rik of investing sn ming inant Figure 172-7A, B and Cilla three examples of fo ¢ofnmunities can have s sca apa network suc st makes them unlly tobe ape ofeung te scl eee topes tha companies want,Soci ices Operate Figare 172-7A shows 3 commanity wih severe lick fascial capital In hanno corer an setepte of out {bn do ota 19 each othe THs isthe ptm one Would ‘Spestinarepon afer aatural Garter ora Thee ay be eke of roups that ea wih each ote butoverthe wile opr enon, or eros athe akeoldes nthe ve, {hu i te communeation No one can speak forthe whole ‘seni, ad Greer the common can wile ie ‘er veveke social ens a procnd. In thi crams, cranes sully fallback on be lal ening press the maton level. Unfaitely, if the commun ese Siemly coms together nd net vos, ta ep ease Sinbecome woriese “Another common hindrance to being capable of euing ‘coca sense ie theexsence ofan ete that purports to Speak for overoue Se Figure 17278). The core has numer ‘ts elaons of bridging soil cpl to peripheral gree ‘Tie peripheral groups have ile socl capil among them sets Although dating with this kind of race ain [Etuvely convene tee are dangers ented tthe eles te legitinacy. Soo ele ae ofen tempts tp thet te interes send of the interests of the whole Coma ty Sometimes hey say i power by keeping everyone else Urged, enerat, o intimidated. Multinationals ten fall prey fo sieh groups when only the eles know the naive Fetgange of te company representatives, Often they bave en edvcated inte developed world aed kaow the mors Fovdoing sine nde compony's home rauiry Te ee triaay toy caste saci lice, bt one develope bs undersay, he abecions ofthe exloded grape cme tothe srfce. The company an feo be lmped togeiee ‘with eit as part of Meptinat and coro exabih treat, This, of course, calls the soci lense no gueston Figure 17270 shows another dyefuncona coma iy suucte Thee ples of boning Soil eat, but 103 confloed to Ughtatfacuone. To te ete ht ore {ust pak for everyone, beholden nthe leaders OF Telcos, be they mayors warlords lec ormembere of amen Beer th faction ste contin resting td “ssroyingallaoes i temps fo damunate the cae, there ‘never community wih enous cobeson Yo erate tt {hy socal coe wil be durable Te company can early be ‘dawn int the plc mcnntion, ether at «benevolent llofane cso oran en vilsn guna which anothe Diagnosing Community Readiness to Issue Cecianies tht wants si me lal ated to know the paler ofthe sail eal nthe network rom which they ‘Shee 1b ga the sol cee, Figure 17270 i the de secial capil strate for @ stkehlder network, Tis type Sfcommusty can make deshons ht cade everyone 2nd ‘hat wl woe fr enerone's beret lean san bein the ‘til forthe ong om tal a th exit ap. is pals to changing seumstances, Forney sca apt hes bse staid ite thre oughly in the sci scenes for more tan 15 yeas Ways fave been developed to chi sess ates tna nee ok, wheter thas pogrphic commu a wide ae ‘of sakebldes fat tocludesnaboeal goverment part ‘ten und lteratonal NGO. Te base apeoth iter ‘iw the atchldes shout fou arnt of Goce: (1) wn {hes eoocerne ere (2) which cher poops Gey coder ‘be sakcolder 5) the Gait of the relation ith te hap, td (2 be iy of tet lationship eth tbe Stakeholders. Data om nevis of his type provide Wel ‘oshded bss for Sukeholder engagement sae fending ‘onc ene, Wioys to Approoch Menifed Problems Altra map of he sos epi duct i be commit ‘Sathaed, i possible to deernse where the efor should be foeuted, fhe comms lock ke Figure 172.74 it ‘Secetry to sin wil ba communications song ups Tee commit looks ite Figare 17278, te fre ep ‘fo make comections wih he periphery groups abd comect, ‘hem with each ter. et fooks tke Figure 172-76 etfs ‘ovmrenthen the cove te mode git of les fom ‘Beh action mus wrk togetier on « oj long enou develop a sense of shared purpose hats community-wide Each community fas eve specie ies 2nd prob los that provide plenty of opptunies for bringing prone {ogeter Ofen the ia fo haste ting come totes and then detiing thos that cane aces Elaboration with he company. Wison and ison (2006) ‘ler tumerous examples of natives ht Bil socal cap ‘al These span dvr ree of operations fom secu to ‘String. Actives that build ss apt rly cst very ‘puch money. Unully ey simply involve reece fant from an approach Wat ignores or damager the company's {Sal ene oa appr that improve nd sce the Social cee. Sometimes ey actly redoce os as ocus ‘wheothe work to mprove the capacities focal supplies ce- ‘erasable oflowe-cont acl sources for goode an serces reviously inpared rm dbewbare Social License, Poverty eduction, end Sustainable Devel ‘The press of Helping » community acquire the balance ‘oF socia capital needed to sue «socal lense amountsv8 SNE Mining Enginaring Hondbook to strengthening the community 1 the point where it can be song, rlable partner in achieving whatever sls Ise Tor tle This pens to be the ame process tat community development spevaite fllew i ities to reduce poverty Social capital building sod alas: tag iniatives Rave heen show to ceduce Rover, Su 8s Figure 1727 indents, the pattern of sci cpl fas Seta cue 172.70) fe abo om song ‘Noi Iolton ofthe perghery" When these condone te met, communis can tenet from the pesene of ¢ ‘ational or imteroationl corportion, ‘The company tn {reat or broker links tothe lage economy ouside the comunity. Sach lnk ar caled inking socal capital (Qoceock 1958), Through aking soa capital, 4 com munity can gain acess a ove distant market for bo te {pods ends services (he, remitance income). Therefore, {Dining and ating s socal lieense employs the sae Sclofactivies tat promote soraiable community deve ‘pment. Both goals depend on srentiening the coma. ‘ty tothe post where can be a sub, omtned partes Sn development ities TOOLS AND GUIDELINES Connie se numerous tele a guidelines 1 be hem fo te things tat cam a socal cen Thewe tone fea ter bes felted io “crprate socal espns.” aus Taibo vaous more species like coupon, transpateey, the enviroment Lspeige (2003) reviewed Iandods of sich code, Tite of prints, and guidelines Sterovewed more than vo den of tho fa deal Some of them retrte mary ofthe pines dated shove, howe tt contain recomendations fr spf sep and sts wl ot aays work, Communes ad crams roo “aved to be smetbi to aty coe seal! progam Tat Iroty the more geal pipes mas ake pete vee ‘hosts recmendatas.Alough sme guidelines sod {oo vague to be praca, soul the nore speci ele ‘ens fat are eas pac becae fey ep aly sae Ceamstances bu oti ors Uma the scl {ual and plea namics of th individual Commun or arash ae negro ing projets ve fo Se demoed, and ons nd udelines ut be ape wo et the chamcterntr encore othe pound Exploration rates Forapioar, Ie Prince and Gut for Responsible Expiration posses by sh espa fad Deon ‘onion of Canat [DAC 200%) taper wie ‘Phe on lipe recs aml fr gol panos DAC 400s) sr naan eo gag lptnncy and cet ‘sy wh nn sommes Sd Rem serpateand 9 ‘onde! sol rae or pj tht nace ofa contacto, the ssf aman he tego el, ‘SSceoueussceuni bal oan co! a {esarhe erfomans Sno Soci Fava ‘Sthaabity of he lnenatnl Pounce Coron (Fat tke Wor a (FC 2) wn te Foote (EPs 2000) uel set of eles sed ye vest feat Whe nate pein te mig es th [FC sends ands sere acampayng aaa earl cn esemive prc xpath of edite eanee ‘0 miing projec: The IFC sends emphasize dare of Infomation, comuaton, papacy procses fine. ‘gation, ad decison mang Wi the comity snd the, ‘keholdes; clon an poten of vlmerte and ar alized groups respec for hs parcation he beste ‘Stamingz and so fry al of wh sre scons ht ean sete ‘octal egmacy and, peopel implemented, rey fethe onmpany and bene Base fo ing tsk ‘Mine Operation from Construction Through Posclosure Busines fer Social Respensibity 20038 and AccoustAby ‘nd Businee for Sait) Respsbliy (2002) povige cae Tories and ducsnon f the soil ewe tgee ith [rca advice on how asi eens may be aed “The utiles and guidlines of te Ieteratonal Cou on Mining and Meals (ICMM) provide spat of refrece the pata level for goes prtioe that ig squston of the soci iene (ICM 2003), Ineo, the ICM bat prepared series of goodie huodeoat hat of pr fea advice on foe munagemect of varius aspect of min ‘ng, inching social and comeaiy development A ic Ste time, ming asociatios in namber of conte ve ‘evelopd guidelines opzad to national logan Sct noms both Camda and Aarti, for example have {veloped sac tamer, ‘The Mining, Miners and Sorsinale Development ((eMSD) projet ented» porto of ntatives that sp. ‘ow sung and msintaining tsa esas snd ae ee [Fmining projects we to makes eoxbuton to sanble ‘evelopment (MMSD 2002). Te elude + Supporting people (ial expt) divesting in poop Abuman cpa, + Supporting ad strengthening exiting governance sue- ‘are (oct capita + Fitting coninioar (amen apt) an + Helin eel populations antpute and ake advantage tine developmect to improve testy Of He ‘efind by tem) bond the ie of the projet oF mine (Galaneing hen nd sei apa). ‘The MMSD projet ano created framework for wes lng a'misag projec contbtion to arable develop ‘et, wich seclader mater tit sx he tse to design project in way tat Rep nai the socal ene 0 pera (MSD 200) ’As with he evarpes shove, fl implementation of he rmcommandasagscotied in tes dovumens i wae ha te seostve to eel socal ad ealoal norms ean inf {toy ait pling and iting the sacl ces ‘General Guidelines for Al Typos of Businesses Ine developed word varius existing politcal forces ane taper to rete aad hoe governance repme to renal Iabration hs bur the emergence of some scans fo Tnfuerciag core behavior The infuace stele Ae ‘ch centred ona differen ret of salsa, (ne ofthe most portant stakeolder rope bas Been investors. The socal resonable iverinent tovenett ‘plies ovestmea seeing cer tha have ben promoted 1) the afocmeationed loose conltion. In 2007, tally ‘reed investment sesoaned fr USS lon mat Teaming endSoc ices to Operte 95 in Unted Stats and Europe alone Social nvestment Fru 2009 Promina! ang yee inthe sil avn eld include the Calvert Socal nex, the Do Joss Sura, Ides, the FTSEAGood Inde, sd KD Ban 400 Social Ine The same gemal intuence mectanisn has ben called into play wih lends. Tae IFC as develope Performance Sundaes on Socal and Evironment Sota, wih ie incomporated ito the Equator Pipes tat ave beet ‘opted by mata the major commercial beaks that nace tines. Companies seeking Brancing tut pat independent USstssmens of thei complane with these wands for Sil tnd enzonmesta performace. In toms of employes and supe, tere have beso campsign gas cil labor snd awesrbope The ILO bat ‘Seen very activ in eae fine ney sands ply 1m poernens, shih a tr are sppore to enforce tess ‘on companies to whom st rant ee, ‘The ILO 169 giver explet iosrctione to governments ‘ocasu tha indigenous people ae conse elas explore. Vion abd developmen of tal resources ao atc sare Unite beoaen comes from resource developaest Tis Seaventn has soon inden a orporte Seaver een ‘whore govemmens te weak oases teense nna ‘ral efeas. Te UNDRIP gies sn ehen stronger ncn {0 poversments fo aban the conn of indigenous people ‘before any exploration or developmen of miner eso, ‘cotter apo i centre om conser skal x Gree and social responsible sonromer movements ily focus on specie product lees The "ity gle" and “blood diamonds" empign arsed doo ie ine nls indaty “The development of hes infec canes ba incladed the emergence of gener codes sod stusdrds that spell ot ‘whut is expected of companies These expectation provide ‘steal guidance egsding bow to tam a toc cent, Popular ves apd Standards that apy fall indie include toe AAIOIO, he Clatl Reporing Ini (GR and the venerable Une Nations Univeral Declrwon ‘aman Rip (UNGA 104), "The AAIOGO was developed by the Instat fr Soci and Ethical AccountAbity (AcoumtAby 200), conte tt cheeks athe framework for mplenenting changes inn femmpny abd esearte srrance proses tht venies the empasys adberence "The OR eal with standards for transparent reporting 02 soxfsanil mses The toe revel vetton mis developed With put rom hosed f compan fom all pare ofthe ‘word comprebesve chee tat was ftended 0 ‘ply tall indus. (GR! 200) To help mining companies ‘luce the brdesarmepaperwore he [CMM ba isd {ude for focusing onthe par ofthe GR tat are slevet o [s susanaie development prciples CMM 2005, SUMMARY The finden tis for building relasontips between tuning projet and commune ar the values ta parmeate Ueto of the company Thess incl + Resp’ nd inhsivenes 1 Trampareney ad hey 1 Listening and empathy, + Responsiveness and promise Keeping + Goodwil care and protecting the interns ofthe other a + Charen principio ston ‘These are “sof” atibtes that macy aisng company personel find leu io work wit ce hey se no e= Eble to guamfation inthe sane way ay eaginering tn ‘counting. Neverthela, they ae hay fo te erst of ong, sublerelatorsipe and in many aye pall the "buts of usta perromal relatos fends a Indeed, aiacinge ACKNOWLEDGMENTS. ‘The authors tank Apex Silver fr pean to present he ‘story ofthe Sun Cristobal rjc; uan Maman, avis Diez de Medina and Marga de Cao for proving te infor ‘mation on wich the grape story was rt contac and ‘he unknown commty members wo verte the Gta The Shorea show ledge te oppor snd nll ent ‘tons of Susan Toyee and Mytim Cabrers tat edt ie ‘cognition a soca Toptimacy, reli. aad tat a he ‘orate componente scene ope REFERENCES AccouiAbiliy, 2009, AAIGOD Serie. wermaccounailiy ‘rg, Accessed September 203 ‘Acct abity and Business fr Sot Responsibility, 2008, Busines) and Economic Development. Mining. Sector Report. Londons San Fania AsoousA DS aod Bustos for Socal Resonshy Ade, PS. and Kon, SW 2002 Soil capi: Prospects fora ew concep dead Manage Rey 21():17-40. Barney, JB, Weight Mt and Rech, Je 200, The retcarec based ie ofthe fst fen yeas alt 1991 J atone 21662568 Bebington Ay Conon, My Corba W, O'Shasghessy. Hy and Wiliams M.207_ Mining Development in Peru Leon: Pet Support. Grup. ie prspponto lrgublrchivelsons 120himl. Aesered Soper 2008 ‘Busines for Socal Responsiity: 2008 Minera! Disguite Report. Expul agen San Franco Busines or Soci Responsbiy. Business for Socal Responsibly, 2008 The Social “iene 1 Operate San Prasclco Businss for Social Responebiiy. Deephose, DLy and Sucka, MLC. 2006. Legiimacy in ‘raizationl stuns, Te Sage Honk of ‘Organza atintonlom Eady R.Greeomood Olver K Sali and Soy Oxford, UR Sage Det, J. ahd Nevo, K. 2005. Predicting coe atonal Teel of soca rt Gib pte or Norse exception: tla? Bur Sociol Ro 21(8)311 327 EDRs (Equator Piciples Func lsittions). 2006. The Equator Principles: 4 Financial Indurry Benchmark for Dawrminng, dsesing ond Managing Social ard nironmentl Risk ie Project Pane. wo eguaar incipls com. Accased September 2009. ‘Gadsby, and Hoge, A 2008 Managing Environmental ‘and Socal Consens for Mining. Nef accompany ‘Short cours Roy Roads Universi, Vier, BEtoh Camb Jane, 2008