What does CSR mean for an Environmental Impact Assessment?

Ethical Sector
Ethical Sectorfounder, Ethical Sector en Ethical Sector
What does ‘corporate social
responsibility (CSR)’ mean for an
Environmental Impact Assessment?'
Vicky Bowman
Director, Myanmar Centre for Responsible Business
Myanmar Environmental Assessment Association Online webinar
24 May 2020
About me
 Director of Myanmar Centre for Responsible
Business (MCRB) since July 2013
 Mining company Rio Tinto: HQ lead on
transparency, human rights and resource
nationalism/resource curse issues
 Civil servant/Diplomat:
• Director of Global & Economic Issues
• UK ambassador to Myanmar 2002-2006
(and 2nd Secretary 1990-1993)
• European Commission, Cabinet of
Commission Chris Patten, External
Relations
• Press spokeswoman
 Married to artist Htein Lin
Founders:
Financial support from governments of:
• UK
• Norway
• Switzerland
• Netherlands
• Ireland
• Denmark
MCRB aims to provide a trusted and impartial platform
for the creation of knowledge, building of capacity,
undertaking of advocacy and promotion of dialogue
amongst businesses, civil society, governments,
experts and other stakeholders with the objective of
encouraging responsible business conduct throughout
Myanmar.
စီးပြားေီးး ရီးအဖြဲ႕းြဲအဖစ္းီး ေီး၊အဖရပြားြဲ႕ကးအဖြဲ႕းြဲအဖစ္းီး းအဖစအီးရ
ဖြဲ႕းြဲအဖစ္းီး ေီးဖၾကေီးအတေဝနးယူ အ
ရအး သေအစီးပြားေီးး ရီးရပြား နးီး ေီး်ားအ းရေပြာ္ေ၊အာ၊ ဗဟ
သတရရအး စရနးအရ္းီးး ကေ းီး၊အဖရ္းဖး သးီးအသ း ေီးး စရနးအ
ရ္းီးး ကေ းီး၊ စးဦီး စးြဲ႕ကးဖၾကေီး
း ်ားးီးး  းီး္အ အႇ းီး ႇ ေီး သြဲ႕စးး ပြာႈရေး စရနး း သ နး ေ နအ း ံတး း
တေဝနးယူ ႇရအး သေအစီးပြားေီးး ရီးအရပြား နးီး ေီးး ပြာႈးးနးီးရေး ရီး
ဖတးကးဖ ေီး ၏အယံၾက္း ႇကအအရရအး သေအ
သ ေသ တးကး သေအဖြဲ႕းြဲ႔ဖစ္းီး တစးရပြားအသြဲ႕စးး ပြာႈအ
ရေး စရနးအရ္းီးး ကေ းီးအရ္းရးယးြဲ႕းြဲအစ္းီးစြဲပြားသ္းပါသည္။
myanmar.responsible.business
www.mcrb.org.mm
No. 6.A Shin Saw Pu Rd, Ahlone, Yangon
Tel/Fax: 01 01-512613
My presentation
 ‘CSR’ စီးပြားေီးး ရီးရပြား နးီးၾကီး ေီး၏ ရူ ႇး ရီးတောနး
 Responsible business တေဝနးယူ ႇရအး သေစီးပြားေီးး ရီးရပြား နးီး
 Creating shared value ဖကအီးဖသ တးစးြဲး ဝဖသံီးစသစ းီး
 Social licence to operate ရူ ႇဖြဲ႕းြဲ႔ဖစ္းီး း ်ားေ းရးကးရနးစး းသပြာ ႇႇ
 Community development agreements (CDA)
 How are they connected to the EIA process, and public participation?
 Public participation during COVID-19 – some thoughts and questions
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က႑ရအကးသကးး ရေကး ႇ ေီးဖေီး း ရရေ်ားနးီးစစးသစ းီး
Sector Wide Impact Assessments (SWIA): း ရနံ း သဘောဓေတးး  းအ၊
စရီးသးေီးရပြား နးီး၊ ICT၊ သတရပြား နးီး၊ ်ားဖနးီး ( ူၾက းီး)
UN Guiding Principles on Business and Human Rights (2011)
စီးပြားေီးး ရီး း ရူ႔ဖစး းဖး ရီး ေီး်ားအ းရေ ရ းီး္နးဖး သစစံ ူ ေီး
State duty to
PROTECT
human rights
အ း ံး တေး၏
ရူ႔ဖစး းဖး ရီး ေီး
ကေကးယးရနး
တောနး
Policies ူားဒ ေီး
Law and
Regulation
ဥပြား ဒ
စ္းီး ဥးီး ေီး
Adjudication
စရ းစကးစသစ းီး
Corporate responsibility
to RESPECT human
rights စီးပြားေီးး ရီး
ရပြား နးီးၾကီး ေီး၏
ရူ႔ဖစး းဖး ရီး ေီး
း ရီးစေီးရအကးနေတေ ရနး တောနး
Act with due diligence to avoid
infringement းအစအကးနစးနေ ႇ ေီး၊
ဖစး းဖး ရီး စအီးး ြဲ႕ေကး ႇ ေီးကအ
း ရေ းၾကဥးရနး ႀကအတ း်ားနးီးစစး၊
ကေကးယးတေီးစီးသစ းီး ေီးရပြားး ်ားေ
း ်ားေ းရနး
Address impacts
သကးး ရေကးးအစအကး ႇ ေီးကအ
း သြဲ႕ရ းီးရနး
Access to REMEDY
သပြာနးရ္း း ကေ းီး းနးး ဖေ း
သပြာသပြာ းသစ းီး/ းအစအကး
နစးနေ ႇ ေီးဖေီး
ကစေီးသစ းီး ေီးကအ
ရကးရ းီး ႇ
Effective access for victims
းအစအကးနစးနေစြဲရသူ ေီးဖတးကး
းအး ရေကးး သေကစေီး ႇကအ
ရကးရ းီး ႇ
Judicial and non-judicial
တရေီးဥပြား ဒ၊
တရေီးရံီး း်ားအ းး သေ
နစးနေစကး ေီး ကစေီး ႇ/
တရေီးရံီး ေီး း ်ားအ းဘြဲသပြာ းပြာျပင္ပ၌
နစးနေစကး ေီး ကစေီး ႇ
Pillar 1. Governments Must Protect Human Rights
Myanmar Companies Act (2017)
Myanmar Investment Law (2016)
and Rules (2017)
Myanmar Environmental Conservation
Law (2016), Rules (2014), Standards
(2015) and EIA Procedure (2015)
And many other laws and byelaws and
notifications on labour, disability,
ethnic nationalities, land, pesticides,
water, safety, wildlife conservation,
cultural protection etc etc……. !
Sectoral laws: Mining, Oil and Gas,
Tourism etc
Pillar 2. Companies must respect human rights
Undertake human rights due diligence
းအစအကးနစးနေ ႇ ေီး၊ ဖစး းဖး ရီး စအီးး ြဲ႕ေကး ႇ ေီးကအ
း ရေ းၾကဥးရနး ႀကအတ း်ားနးီးစစး၊
ကေကးယးတေီးစီးသစ းီး ေီးရပြားး ်ားေ းရနး
Address human rights impacts
သကးး ရေကးးအစအကး ႇ ေီးကအ း သြဲ႕ရ းီးရနး
What is ‘responsible business’?
Responsible business means business conduct that works for the long-term
interests of Myanmar and its people, based on responsible social and
environmental performance within the context of international standards.
တေဝနးယူ ႇရအး သေအစီးပြားေီးး ရီးရပြား နးီးအ်ားအသည္မွာ စံခ်ိနစံစံႏႈနး ္ွားစ း ဖ္အ
တေဝနးယူ ႇရအး သေ ရူ ႇး ရီး းအသဘေဝပြာတးဝနးီးက း်ားအအ းရေ း ်ားေ းရးကးစကး ္ွား
ကအအး ရီးစေီးအရအကးနေကငသံုးး သ နး ေ အ း ံစမငင့္ လူထုး၏ း ရရ္းအဖကအီး
စီးပြားေီး ေီးဖတးကး ေဆွာင္ရကေသွာ စီးပြားေီးး ရီးရပြား နးီး
လုးပေဆွာင္ံႏႈ ေီးကအအ်ားအရအပြားသ္းပါသည္။
9
What Does A ‘Responsible Business’ Do?
10
ဥပဒေကို
ဒလေးစာေးလိုက်နာခြင်ေး
Respect the law
လာဘ်ဒပေးလာဘ်ယူမှု/
လဖက်ရည်ဖိုေး ဒပေးခြင်ေးမ ေး
မလိုပ်ဒ ာင်ခြင်ေး
Not pay bribes or tea
money
၎င်ေး၏ အလိုပ်သမာေးမ ာေးကို
ဒလေးစာေးခြင်ေး
Respect workers’ rights
၎င်ေး၏ Customer မ ာေးကို
တာဝန်ယူမှုရစာခဖင်
က် ံခြင်ေး
Treat customers
responsibly
အြန်ဒ ာင်ခြင်ေး
Pay taxes
အခြာေးစေးပာေးဒရေးလိုပ်ငန်ေး
မ ာေးကို တဝန်ယူမှုရ
စာ က် ံ န်ေးခြင်ေး
Treat other businesses
responsibly
သဘာဝပတ်ဝန်ေးက င်ကို
ဒလေးစာေးခြင်ေး
Respect the environment
လူအြင်အဒရေးကို
ဒလေးစာေးခြင်ေး
Respect human rights
ပင်လင်ေးခမင်သာမှုရခြင်ေး
Be transparent
သက် ိုင်သူမ ာေးနင်
ြ တ် က်ဒ ာင်ရက်ခြင်ေး
Engage with
stakeholders
What is corporate social responsibility (CSR)?
 CSR 1.0: Donations, Philanthropy
 CSR 2.0 : “The responsibility of enterprises for
their impacts on society” လူ အသိုင်ေးအဝိုင်ေးအဒပ
သက်ဒရာက်မှုမ ာေး အတက်စေးပာေးဒရေးလိုပ်ငန်ေးမ ာေး၏တာဝန် (EU
definition 2011)
 CSR 3.0 = ‘creating shared value’ (CSV)
ဖကအီးဖသ တးစးြဲး ဝဖသံီးစသစ းီး “business activity
which is good for profit, good for society” (Porter
and Kramer, Harvard Business Review 2011)
11
Creating Shared Value ‘CSV’
Creating Shared Value ဖကအီးဖသ တးစးြဲး ဝဖသံီးစသစ းီး is the
development of business strategies that are both profit making and
respond to social needs Focus on right kind of profits—profits that
create societal benefits rather than diminish them
A bank develops mobile
money services which
are accessible and
affordable for those
without access to bank
accounts.
A hotel trains and provides initial
support to local farmers to grow
vegetables safely, and buys them
for use in their catering. The
farmers sell the excess production
on the wider market.
A hotel trains local
young people in
English and hospitality
skills and offers all of
them jobs on
graduation
A company making
toothpaste and
soap runs a
nationwide
programme in
schools on
handwashing and
oral hygiene
So what does CSR mean?
 No single definition of ‘CSR’, and different understandings
 That’s why MCRB believes ‘CSR’ should NOT be used as a
term in Myanmar laws/regulations/contracts…………or in EIA
 Companies, regulators, communities and courts need clarity
about what is
 Obligatory/mandatory, a contractual and legal obligation
(including EIA, ECC)
 A choice, that’s good for business
 Responsible business conduct (RBC)
 Creating shared value (CSR3.0/CSV)
 Philanthropy (CSR1.0)
 Even philanthropy needs internal company governance to
ensure that donations do no harm and are not a cover for
corruption
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Compulsory:
Compliance i.e. obeying the law
ဥပဒေကို ဒလေးစာေးလိုက်နာခြင်ေး
Respect for human rights through
due diligence
လူအြင်အဒရေးကို ဒလေးစာေးခြင်ေး
Connected to business activity
Voluntary, requiring additional effort or budget
CSR3.0
Creating Shared Value
အက ေးအခမတ်ြွဲဒဝ
အသံိုေးြ ခြင်ေး
Inclusive Business
အမ ာေးပါဝင်အက ေး
ြံစာေးနိုင်သည် စေးပာေးဒရေးလိုပ်ငန်
Resource efficiency
အရင်ေးအခမစ်မ ာေးကိုအက ေး
ရစာအသံိုေးြ ခြင်ေး
CSR 1.0
Philanthropy
ပရဟတ
Disaster relief
သဘာဝ
ဒဘေးအနတရာယ်ကယ် ယ်ဒရေး
Sponsorship (which can be a
form of marketing)
စပန် ာ ဒ ာက်ြံမှု
Philanthropy
should also be
responsible, ‘do no
harm’ and respect
human rights
The Spectrum of Corporate (Social) Responsibility
2.0 – or Responsible Business Conduct
Company activities do not undermine
Myanmar government’s achievement of SDGs
e.g. corruption, pollution, causing conflict
Company activities proactively enhance Myanmar government’s
achievement of SDGs and promote enjoyment of human rights
e.g. job creation, training, promoting better health, inclusion
www.mcrb.org.mm
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Environmental Impact Assessment CSV (CSR 3.0) and philanthropy (CSR 1.0)
Compulsory, legal requirement to obtain legal licence to
operate e.g. Environmental Compliance Certificate,
Voluntary, builds trust to obtain/retain a ‘social licence to operate’. ရူ ႇဖြဲ႕းြဲ႔ဖစ္းီး
း ်ားေ းရးကးရနးစး းသပြာ ႇႇ May deliver business benefits (CSV/CSR 3.0) e.g. training,
development of local supply chain or for for branding (e.g sponsorship of local events) or
be purely philanthropic e.g. disaster relief (CSR 1.0)
Required by and undertaken on the instruction of
government
May not involve government at all, or may liaise with government, build shared
programmes e.g. health, education
Undertaken by experts (EIA consultants) on behalf of the
company who takes responsibility for submitting it
Should be managed by company’s community relations/social performance team
Must identify all potential negative impacts of the project
and project affected persons PAPs
Must analyse alternatives
Must propose costed measures to Avoid, Reduce,
Mitigate, Offset (part of human rights due diligence)
Voluntary company spending should not be used to mitigate negative social impacts of
project – this is a company legal obligation
Programmes might address pre-existing social issues (e.g. poor health, unemployment,
vulnerability), priorities identified through discussion with communities
Implementation cost depends on ultimate
commitments/legal requirements in ECC
Budget depends on what company can afford/wants to spend (unless there is a legal
requirement)
Based on obligatory consultation of project affected
persons and disclosure and different stages
Should be consulted on and agreed on with communities/stakeholders
Actions included in Environment (and Social)
Management Plan
Part of a ‘CSR/CSV/social investment’ strategy, subject to regular review and adaptation
by company and stakeholders. May formalise in Community Development Agreement.
EIA, EMP and 6 month monitoring reports to be published Transparency desirable (and useful for ‘branding’), e.g. information included in annual
sustainability report. For companies with an MIC Permit, it could be included in annual
report under Myanmar Investment Rule 196 on ‘how it has demonstrated its commitment
to carry out the Investment in a responsible and sustainable manner’
Undertaken over 1-2 years, pre-project Developed for the project lifetime – could be decades
Stakeholder Engagement, Consultation
and Disclosure in Myanmar
16
Compulsory legal requirement Voluntary activity
Consultation Disclosure Structured Unstructured
Consultation with
ဌေး နတအ းီးရ းီးသေီး
Article 5 of Protection
of Rights of National
Races Law (2015)
EIA Public
Consultation,
minimum 2 (IEE) or 3
(EIA) rounds
Project Summary for MIC Permits
Disclosure of draft EIA on
company website 15 days after
submitting to ECD
Publication of Six monthly EMP
Monitoring reports
If company has MIC Permit must
publish Annual Sustainability
Report Article 196 of 2017
Myanmar Investment Rules
Operational Grievance
Mechanism (OGM)
Community Development
Agreement (CDA)
Community
Investment/Creating
Shared Value Strategy
Stakeholder consultation for
Materiality reporting
Newsletters, websites,
Facebook
Noticeboards
Drop-in ‘shopfronts’ and
company offices in the
community,
Community liaison officers
https://www.dica.gov.mm/en/myindy/private-enterprises
https://www.woodside.com.au/our-business/myanmar
Is there a legal requirement for ‘2% CSR spending’ in Myanmar?
 NOT in the Myanmar Investment Law (MIC)
 Jan 2019 Gemstones Law (and Gemstones Rules) is the only
Myanmar law requiring companies to contribute to a ‘CSR’ fund to be
implemented by State/Region Government in line with guidance of
local MPs. Section 56: A permit holder shall:
a) Make serious efforts to minimise environmental impacts and negative
impacts of on socio-economic.
b) Carry out rehabilitation and reforestation at the time of mine closure.
c) Establish a fund for use for environmental conservation, health,
education, transport infrastructure and other development activities that
is not less than 2% of the investment amount, and provide the funds to
the State/Region government from the start of the project.
d) Implement activities (a), (b) and (c) in accordance with the Extractive
Industries Transparency Initiative and good international standards.
 Although Sagaing Government (and possibly other regional
governments) are requiring a 400,000 kyats ‘CSR Fund contribution’ to
issue artisanal and small-scale mining permits, this has no basis in
Union law (and does not appear to be in draft Sagaing Mining Law).
3 mining companies including
Wanbao claimed in 2016/17
EITI report to have mandatory
‘CSR fund requirement.
May be in their production
sharing contract.
Should ‘CSR’ be an EIA requirement?
In the view of MCRB, CSR (whether CSR 1.0, 3.0, CSV or details of community development should NOT
be included in an EIA because:
 Not a legal requirement: neither ‘community development’ (or ‘CSR’) are mentioned in Myanmar’s 2015
EIA Procedure or any other Myanmar law except 2019 Gemstones Law
 EIA is done by 3rd party EIA consultants, with expertise to identify the project’s negative impacts
 It would make the EIA process even more complex, both for ECD, consultants and investors.
 EIA/EMP should identify/address the potential negative environmental and social impacts of a project
 ECD/MONREC is not qualified or resourced to approve an appropriate Community Development Plan
or other forms of CSR1.0 or CSR 3.0
 Too many EIAs in Myanmar already try and present only the potential positives of a project, rather than
assessing the impacts according to the mitigation hierarchy
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What about Community Development Plans?
 Companies and communities can choose to formalize their cooperation in a Community Development Plan or
Agreement (CDAs) but:
 Community Development Plans should be designed and agreed directly between the company and the
local stakeholders. Government may be a participant
 Agreements should involve ongoing community company engagement to build trust
 They should easily be adapted based on lessons learned and community feedback, which is why they
should not be included in a government-company contract or Environmental Compliance Certificate, which
is hard to change
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 To facilitate benefit sharing, the Myanmar Parliament could
make % spend (of investment? revenue?) on community
development or CDAs compulsory for certain types of
investment (by size and/or sector) by:
 including this in amended Myanmar Investment Law or
sectoral laws
 Including this in production sharing contracts/investment
agreements (as for Letpadaung - $1 million p.a. and then
2% of net profit after production begins)
 But this requirement shouldn’t be invented as part of the EIA,
or applied unequally
Community Development Agreements in other countries
Obligation
• National legal obligation on companies to formally enter into a CDA.
• Papua New Guinea (Mining Act 1992);
• Mongolia (Rio Tinto, Oyu Tolgoi copper mine)
• Companies seeking access to Indigenous lands to negotiate the
conditions of access, or use, with the traditional custodians of that land –
a form of Free Prior and Informed Consent (FPIC)
• e.g. Australia (Native Title Act 1996), Canada (agreements with First
Nations)
Voluntary
• Significant previous conflict involving the company and local
communities. An agreement has been negotiated in an effort to resolve
these conflicts e.g. Tintaya copper mine Peru (BHPBilliton)
• Pursued to strengthen social licence to operate e.g. Ahafo gold mine,
Ghana (Newmont)
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Potential benefits of Community Development Agreeements
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Benefits for Communities Benefits for Company Benefits for Government
 Recognition of status as
traditional/customary owners
of the land
 Acknowledgement of impacts
 Compensation for damage,
disruption, changes
 Development benefits
 Greater clarity around
company commitments
 Greater security of access to
land and resources
 Greater clarity around
company obligations
 Reduced conflict and
company-community
disputes
 In Myanmar, supports
compliance with para 5 of
2015 Law on Ethnic
Nationalities and Myanmar
Investment Law
 Greater community
acceptance of investment
development
 Increased development
contributions from
companies, and possibility
for government to ‘leverage’
this
 Greater security for
generation of tax and royalty
revenues
Provides a framework for ongoing community-company engagement
Can incorporate EMP/ECC obligations
Structuring company-community relations through a
Community Development Agreement
23
• Community Development Agreement
• Community Development Initiatives
• Voluntary Agreements
• Indigenous Land Use Agreements
• Partnering or Partnership Agreements
• Community Contracts
• Landowner Agreements
• Shared Responsibilities Agreement
• Community Joint Venture Agreements
• Empowerment Agreements
• Exploration Agreements (Canada)
• Impact Benefit Agreements (Canada)
• Social Trust Funds (Peru)
• Benefits Sharing Agreements (Chile)
• Social Responsibility Agreements
• Participation Agreements
• Socio-economic Monitoring Agreements
• Cooperation Agreements (Mongolia)
(List adapted from the
World Bank’s “Mining
Community Development
Agreements - Practical
Experiences and Field
Studies”, 2010)
CDAs are best for long-term (eg > 20 years)
projects, involving natural resources
• Large scale mines or oil and gas
• Hydropower dams
CDA example: 2015 Oyu Tolgoi Cooperation Agreement
24
• Agreement between Oyu Tolgoi LLC and its partner communities in Mongolia
• Strong governance structure for Oyu Tolgoi and local communities to achieve more effective
cooperation and address mutual obligations
• Under the agreement, Oyu Tolgoi will make a contribution of US$5 million every year to a
Development Support Fund (DSF) – administered jointly between Oyu Tolgoi and the Community –
for community programmes and projects
• Sets out how the parties will work together towards sustainable development in important areas
such as:
• Water
• Environment
• Pastureland management
• Cultural heritage
• Tourism
• local business development and
• procurement.
CSV: building a local supply chain: cost or
benefit to the project proponent?
Example: CompanyX in
Kyaukphyu decides to use
a local SME construction
company to promote local
skills and labour, even
though it could get a
faster, better and cheaper
service from a Yangon
company
25
Costs in 2014
Yangon construction company tender: $10,000
Kyaukphyu construction company tender: $10,500
Additional staff effort needed to supervise/help Magwe company: $1,500
Total extra cost to Operations Budget of Company X in 2014: $2,000
Benefits to company X – ‘win-win’
• In 2016 and future the Kyaukphyu construction company
retenders and beats the Yangon company on cost and quality
• The experience of working with the Kyaukphyu construction
SME encourages other Kyaukphyu SMEs to enter the market,
increasing competition
• Company X can show that it has created 40 local jobs which
otherwise would have been filled by Yangon workers and
builds its ‘social licence to operate’ with the local community
Community benefits: companies buy from local suppliers,
they create ‘indirect’ and ‘induced’ economic impacts
26
Daewoo hires
Cho Supply
Kyaukphyu (CSK)
to supply
offshore meals
CSK
purchases
fish from
local
fishermen
CSK
purchases
vegetables
from local
farmers
CSK hires
local
construction
company
Farmers
purchase
‘longyi’
from local
store
Fisherman
gets a
haircut
Farmers
takes a
trishaw to
work
What else?
Construction
worker buys
a house for
his family
Worker
buys ‘shwe
yin aye’ for
his children
Fisherman’s
family visits
a ‘mohinga’
shop for
breakfast
Fisherman
goes to a
local
teashop
Farmer’s
family buys
groceries
from local
market
Direct Effects
Indirect
Effects
Induced
Effects
Legend
Companies can ‘create shared value’ by actively building local supply
chains. This will be better for the local economy
Social Licence to Operate ရူ ႇဖြဲ႕းြဲ႔ဖစ္းီး း ်ားေ းရးကးရနးစး းသပြာ ႇႇ
• Related to how much stakeholders like and
trust the company – especially community trust
• Cannot be written down on paper – so should
NOT be included in any laws
 To get a ‘social licence to operate’:
 First address negative impacts (EIA)
 Then increase positive impacts through
community development, employment
 Do no harm - not cause conflict between,
or within communities, or corruption
• Difficult to obtain
• Easy to lose:
• Letpadaung (maybe never had it)
• Volkswagen emissions scandal
• BP oil spill
27
28
ရူ ႇဖြဲ႕းြဲ႔ဖစ္းီး း ်ားေ းရးကးရနးစး းသပြာ ႇႇ
Gaining a ‘social licence to operate’ requires
 Listening to all important stakeholders’ views, not just those with the loudest voice
 Mutual respect and trust,
 Communication - stakeholder engagement
How? is more important than How Much?
Company personnel need to understand that
 Activities to gain social licence (e.g. support to local SMEs, training) may have an
upfront cost, but should generate longer term profit/benefit for the company,
making them sustainable and supported by top management
 All company employees (operations, procurement, safety) and all subcontractors
are responsible for gaining and retaining the companies social licence to operate.
 They are guests in the community and should observe a ‘code of conduct’
29
Respecting local culture
in remote sites
Source: Department of Environment, Land, Water and Planning,
energy.vic.gov.au
Role of
EIA and
EIA
consultant
Role of
company/
project
proponent
EIA/IEE public participation
32
International Association for
Public Participation IAP2 recently
published some advice on public
participation during COVID-19
(suited to Australia)
Ensuring public participation during
COVID-19 lockdown
Legal obligations in the EIA Procedure e.g. Article 61
As part of the EIA investigations, the Project Proponent
shall undertake the following consultation process:
a) timely disclosure of all relevant information about the
proposed Project and its likely Adverse Impacts to the
public and civil society through local and national media,
the website(s) of the Project or Project Proponent, at public
places such as libraries and community halls, and on sign
boards at the Project site visible to the public, and provide
appropriate and timely explanations in press conferences
and media interviews;
b) arrange consultation meetings at national, regional,
state, Nay Pyi Taw Union Territory and local levels, with
PAPs, authorities, community based organizations and civil
society;
c) consultations with concerned government organizations
including the Ministry, the concerned sector ministry,
regional government authorities and others; and
d) field visits for the Ministry and concerned government
organizations.
• UK has authorised ‘temporary publicity
requirements’ to replace physical display
of documents on site and in townhalls and
libraries newspapers, can be replaced by
electronic means e.g. website. Need to
inform PAPs/interested parties about
website through
• mailing lists
• social media such as Facebook and
Twitter
• local authority’s website
• local online newspapers
• informing local neighbourhood
forums and parish/town councils by
email
• informing local community, amenity
and environmental groups by email
• Deadlines: South Africa has legally
extended deadlines by length of lockdown
period
Digital engagement during COVID-19
What does CSR mean for an Environmental Impact Assessment?
This presentation will be available on our website
www.mcrb.org.mm
myanmar.responsible.business
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What does CSR mean for an Environmental Impact Assessment?

  • 1. What does ‘corporate social responsibility (CSR)’ mean for an Environmental Impact Assessment?' Vicky Bowman Director, Myanmar Centre for Responsible Business Myanmar Environmental Assessment Association Online webinar 24 May 2020
  • 2. About me  Director of Myanmar Centre for Responsible Business (MCRB) since July 2013  Mining company Rio Tinto: HQ lead on transparency, human rights and resource nationalism/resource curse issues  Civil servant/Diplomat: • Director of Global & Economic Issues • UK ambassador to Myanmar 2002-2006 (and 2nd Secretary 1990-1993) • European Commission, Cabinet of Commission Chris Patten, External Relations • Press spokeswoman  Married to artist Htein Lin
  • 3. Founders: Financial support from governments of: • UK • Norway • Switzerland • Netherlands • Ireland • Denmark MCRB aims to provide a trusted and impartial platform for the creation of knowledge, building of capacity, undertaking of advocacy and promotion of dialogue amongst businesses, civil society, governments, experts and other stakeholders with the objective of encouraging responsible business conduct throughout Myanmar. စီးပြားေီးး ရီးအဖြဲ႕းြဲအဖစ္းီး ေီး၊အဖရပြားြဲ႕ကးအဖြဲ႕းြဲအဖစ္းီး းအဖစအီးရ ဖြဲ႕းြဲအဖစ္းီး ေီးဖၾကေီးအတေဝနးယူ အ ရအး သေအစီးပြားေီးး ရီးရပြား နးီး ေီး်ားအ းရေပြာ္ေ၊အာ၊ ဗဟ သတရရအး စရနးအရ္းီးး ကေ းီး၊အဖရ္းဖး သးီးအသ း ေီးး စရနးအ ရ္းီးး ကေ းီး၊ စးဦီး စးြဲ႕ကးဖၾကေီး း ်ားးီးး းီး္အ အႇ းီး ႇ ေီး သြဲ႕စးး ပြာႈရေး စရနး း သ နး ေ နအ း ံတး း တေဝနးယူ ႇရအး သေအစီးပြားေီးး ရီးအရပြား နးီး ေီးး ပြာႈးးနးီးရေး ရီး ဖတးကးဖ ေီး ၏အယံၾက္း ႇကအအရရအး သေအ သ ေသ တးကး သေအဖြဲ႕းြဲ႔ဖစ္းီး တစးရပြားအသြဲ႕စးး ပြာႈအ ရေး စရနးအရ္းီးး ကေ းီးအရ္းရးယးြဲ႕းြဲအစ္းီးစြဲပြားသ္းပါသည္။ myanmar.responsible.business www.mcrb.org.mm No. 6.A Shin Saw Pu Rd, Ahlone, Yangon Tel/Fax: 01 01-512613
  • 4. My presentation  ‘CSR’ စီးပြားေီးး ရီးရပြား နးီးၾကီး ေီး၏ ရူ ႇး ရီးတောနး  Responsible business တေဝနးယူ ႇရအး သေစီးပြားေီးး ရီးရပြား နးီး  Creating shared value ဖကအီးဖသ တးစးြဲး ဝဖသံီးစသစ းီး  Social licence to operate ရူ ႇဖြဲ႕းြဲ႔ဖစ္းီး း ်ားေ းရးကးရနးစး းသပြာ ႇႇ  Community development agreements (CDA)  How are they connected to the EIA process, and public participation?  Public participation during COVID-19 – some thoughts and questions 4
  • 5. က႑ရအကးသကးး ရေကး ႇ ေီးဖေီး း ရရေ်ားနးီးစစးသစ းီး Sector Wide Impact Assessments (SWIA): း ရနံ း သဘောဓေတးး းအ၊ စရီးသးေီးရပြား နးီး၊ ICT၊ သတရပြား နးီး၊ ်ားဖနးီး ( ူၾက းီး)
  • 6. UN Guiding Principles on Business and Human Rights (2011) စီးပြားေီးး ရီး း ရူ႔ဖစး းဖး ရီး ေီး်ားအ းရေ ရ းီး္နးဖး သစစံ ူ ေီး State duty to PROTECT human rights အ း ံး တေး၏ ရူ႔ဖစး းဖး ရီး ေီး ကေကးယးရနး တောနး Policies ူားဒ ေီး Law and Regulation ဥပြား ဒ စ္းီး ဥးီး ေီး Adjudication စရ းစကးစသစ းီး Corporate responsibility to RESPECT human rights စီးပြားေီးး ရီး ရပြား နးီးၾကီး ေီး၏ ရူ႔ဖစး းဖး ရီး ေီး း ရီးစေီးရအကးနေတေ ရနး တောနး Act with due diligence to avoid infringement းအစအကးနစးနေ ႇ ေီး၊ ဖစး းဖး ရီး စအီးး ြဲ႕ေကး ႇ ေီးကအ း ရေ းၾကဥးရနး ႀကအတ း်ားနးီးစစး၊ ကေကးယးတေီးစီးသစ းီး ေီးရပြားး ်ားေ း ်ားေ းရနး Address impacts သကးး ရေကးးအစအကး ႇ ေီးကအ း သြဲ႕ရ းီးရနး Access to REMEDY သပြာနးရ္း း ကေ းီး းနးး ဖေ း သပြာသပြာ းသစ းီး/ းအစအကး နစးနေ ႇ ေီးဖေီး ကစေီးသစ းီး ေီးကအ ရကးရ းီး ႇ Effective access for victims းအစအကးနစးနေစြဲရသူ ေီးဖတးကး းအး ရေကးး သေကစေီး ႇကအ ရကးရ းီး ႇ Judicial and non-judicial တရေီးဥပြား ဒ၊ တရေီးရံီး း်ားအ းး သေ နစးနေစကး ေီး ကစေီး ႇ/ တရေီးရံီး ေီး း ်ားအ းဘြဲသပြာ းပြာျပင္ပ၌ နစးနေစကး ေီး ကစေီး ႇ
  • 7. Pillar 1. Governments Must Protect Human Rights Myanmar Companies Act (2017) Myanmar Investment Law (2016) and Rules (2017) Myanmar Environmental Conservation Law (2016), Rules (2014), Standards (2015) and EIA Procedure (2015) And many other laws and byelaws and notifications on labour, disability, ethnic nationalities, land, pesticides, water, safety, wildlife conservation, cultural protection etc etc……. ! Sectoral laws: Mining, Oil and Gas, Tourism etc
  • 8. Pillar 2. Companies must respect human rights Undertake human rights due diligence းအစအကးနစးနေ ႇ ေီး၊ ဖစး းဖး ရီး စအီးး ြဲ႕ေကး ႇ ေီးကအ း ရေ းၾကဥးရနး ႀကအတ း်ားနးီးစစး၊ ကေကးယးတေီးစီးသစ းီး ေီးရပြားး ်ားေ းရနး Address human rights impacts သကးး ရေကးးအစအကး ႇ ေီးကအ း သြဲ႕ရ းီးရနး
  • 9. What is ‘responsible business’? Responsible business means business conduct that works for the long-term interests of Myanmar and its people, based on responsible social and environmental performance within the context of international standards. တေဝနးယူ ႇရအး သေအစီးပြားေီးး ရီးရပြား နးီးအ်ားအသည္မွာ စံခ်ိနစံစံႏႈနး ္ွားစ း ဖ္အ တေဝနးယူ ႇရအး သေ ရူ ႇး ရီး းအသဘေဝပြာတးဝနးီးက း်ားအအ းရေ း ်ားေ းရးကးစကး ္ွား ကအအး ရီးစေီးအရအကးနေကငသံုးး သ နး ေ အ း ံစမငင့္ လူထုး၏ း ရရ္းအဖကအီး စီးပြားေီး ေီးဖတးကး ေဆွာင္ရကေသွာ စီးပြားေီးး ရီးရပြား နးီး လုးပေဆွာင္ံႏႈ ေီးကအအ်ားအရအပြားသ္းပါသည္။ 9
  • 10. What Does A ‘Responsible Business’ Do? 10 ဥပဒေကို ဒလေးစာေးလိုက်နာခြင်ေး Respect the law လာဘ်ဒပေးလာဘ်ယူမှု/ လဖက်ရည်ဖိုေး ဒပေးခြင်ေးမ ေး မလိုပ်ဒ ာင်ခြင်ေး Not pay bribes or tea money ၎င်ေး၏ အလိုပ်သမာေးမ ာေးကို ဒလေးစာေးခြင်ေး Respect workers’ rights ၎င်ေး၏ Customer မ ာေးကို တာဝန်ယူမှုရစာခဖင် က် ံခြင်ေး Treat customers responsibly အြန်ဒ ာင်ခြင်ေး Pay taxes အခြာေးစေးပာေးဒရေးလိုပ်ငန်ေး မ ာေးကို တဝန်ယူမှုရ စာ က် ံ န်ေးခြင်ေး Treat other businesses responsibly သဘာဝပတ်ဝန်ေးက င်ကို ဒလေးစာေးခြင်ေး Respect the environment လူအြင်အဒရေးကို ဒလေးစာေးခြင်ေး Respect human rights ပင်လင်ေးခမင်သာမှုရခြင်ေး Be transparent သက် ိုင်သူမ ာေးနင် ြ တ် က်ဒ ာင်ရက်ခြင်ေး Engage with stakeholders
  • 11. What is corporate social responsibility (CSR)?  CSR 1.0: Donations, Philanthropy  CSR 2.0 : “The responsibility of enterprises for their impacts on society” လူ အသိုင်ေးအဝိုင်ေးအဒပ သက်ဒရာက်မှုမ ာေး အတက်စေးပာေးဒရေးလိုပ်ငန်ေးမ ာေး၏တာဝန် (EU definition 2011)  CSR 3.0 = ‘creating shared value’ (CSV) ဖကအီးဖသ တးစးြဲး ဝဖသံီးစသစ းီး “business activity which is good for profit, good for society” (Porter and Kramer, Harvard Business Review 2011) 11
  • 12. Creating Shared Value ‘CSV’ Creating Shared Value ဖကအီးဖသ တးစးြဲး ဝဖသံီးစသစ းီး is the development of business strategies that are both profit making and respond to social needs Focus on right kind of profits—profits that create societal benefits rather than diminish them A bank develops mobile money services which are accessible and affordable for those without access to bank accounts. A hotel trains and provides initial support to local farmers to grow vegetables safely, and buys them for use in their catering. The farmers sell the excess production on the wider market. A hotel trains local young people in English and hospitality skills and offers all of them jobs on graduation A company making toothpaste and soap runs a nationwide programme in schools on handwashing and oral hygiene
  • 13. So what does CSR mean?  No single definition of ‘CSR’, and different understandings  That’s why MCRB believes ‘CSR’ should NOT be used as a term in Myanmar laws/regulations/contracts…………or in EIA  Companies, regulators, communities and courts need clarity about what is  Obligatory/mandatory, a contractual and legal obligation (including EIA, ECC)  A choice, that’s good for business  Responsible business conduct (RBC)  Creating shared value (CSR3.0/CSV)  Philanthropy (CSR1.0)  Even philanthropy needs internal company governance to ensure that donations do no harm and are not a cover for corruption
  • 14. 14 Compulsory: Compliance i.e. obeying the law ဥပဒေကို ဒလေးစာေးလိုက်နာခြင်ေး Respect for human rights through due diligence လူအြင်အဒရေးကို ဒလေးစာေးခြင်ေး Connected to business activity Voluntary, requiring additional effort or budget CSR3.0 Creating Shared Value အက ေးအခမတ်ြွဲဒဝ အသံိုေးြ ခြင်ေး Inclusive Business အမ ာေးပါဝင်အက ေး ြံစာေးနိုင်သည် စေးပာေးဒရေးလိုပ်ငန် Resource efficiency အရင်ေးအခမစ်မ ာေးကိုအက ေး ရစာအသံိုေးြ ခြင်ေး CSR 1.0 Philanthropy ပရဟတ Disaster relief သဘာဝ ဒဘေးအနတရာယ်ကယ် ယ်ဒရေး Sponsorship (which can be a form of marketing) စပန် ာ ဒ ာက်ြံမှု Philanthropy should also be responsible, ‘do no harm’ and respect human rights The Spectrum of Corporate (Social) Responsibility 2.0 – or Responsible Business Conduct Company activities do not undermine Myanmar government’s achievement of SDGs e.g. corruption, pollution, causing conflict Company activities proactively enhance Myanmar government’s achievement of SDGs and promote enjoyment of human rights e.g. job creation, training, promoting better health, inclusion www.mcrb.org.mm
  • 15. 15 Environmental Impact Assessment CSV (CSR 3.0) and philanthropy (CSR 1.0) Compulsory, legal requirement to obtain legal licence to operate e.g. Environmental Compliance Certificate, Voluntary, builds trust to obtain/retain a ‘social licence to operate’. ရူ ႇဖြဲ႕းြဲ႔ဖစ္းီး း ်ားေ းရးကးရနးစး းသပြာ ႇႇ May deliver business benefits (CSV/CSR 3.0) e.g. training, development of local supply chain or for for branding (e.g sponsorship of local events) or be purely philanthropic e.g. disaster relief (CSR 1.0) Required by and undertaken on the instruction of government May not involve government at all, or may liaise with government, build shared programmes e.g. health, education Undertaken by experts (EIA consultants) on behalf of the company who takes responsibility for submitting it Should be managed by company’s community relations/social performance team Must identify all potential negative impacts of the project and project affected persons PAPs Must analyse alternatives Must propose costed measures to Avoid, Reduce, Mitigate, Offset (part of human rights due diligence) Voluntary company spending should not be used to mitigate negative social impacts of project – this is a company legal obligation Programmes might address pre-existing social issues (e.g. poor health, unemployment, vulnerability), priorities identified through discussion with communities Implementation cost depends on ultimate commitments/legal requirements in ECC Budget depends on what company can afford/wants to spend (unless there is a legal requirement) Based on obligatory consultation of project affected persons and disclosure and different stages Should be consulted on and agreed on with communities/stakeholders Actions included in Environment (and Social) Management Plan Part of a ‘CSR/CSV/social investment’ strategy, subject to regular review and adaptation by company and stakeholders. May formalise in Community Development Agreement. EIA, EMP and 6 month monitoring reports to be published Transparency desirable (and useful for ‘branding’), e.g. information included in annual sustainability report. For companies with an MIC Permit, it could be included in annual report under Myanmar Investment Rule 196 on ‘how it has demonstrated its commitment to carry out the Investment in a responsible and sustainable manner’ Undertaken over 1-2 years, pre-project Developed for the project lifetime – could be decades
  • 16. Stakeholder Engagement, Consultation and Disclosure in Myanmar 16 Compulsory legal requirement Voluntary activity Consultation Disclosure Structured Unstructured Consultation with ဌေး နတအ းီးရ းီးသေီး Article 5 of Protection of Rights of National Races Law (2015) EIA Public Consultation, minimum 2 (IEE) or 3 (EIA) rounds Project Summary for MIC Permits Disclosure of draft EIA on company website 15 days after submitting to ECD Publication of Six monthly EMP Monitoring reports If company has MIC Permit must publish Annual Sustainability Report Article 196 of 2017 Myanmar Investment Rules Operational Grievance Mechanism (OGM) Community Development Agreement (CDA) Community Investment/Creating Shared Value Strategy Stakeholder consultation for Materiality reporting Newsletters, websites, Facebook Noticeboards Drop-in ‘shopfronts’ and company offices in the community, Community liaison officers
  • 18. Is there a legal requirement for ‘2% CSR spending’ in Myanmar?  NOT in the Myanmar Investment Law (MIC)  Jan 2019 Gemstones Law (and Gemstones Rules) is the only Myanmar law requiring companies to contribute to a ‘CSR’ fund to be implemented by State/Region Government in line with guidance of local MPs. Section 56: A permit holder shall: a) Make serious efforts to minimise environmental impacts and negative impacts of on socio-economic. b) Carry out rehabilitation and reforestation at the time of mine closure. c) Establish a fund for use for environmental conservation, health, education, transport infrastructure and other development activities that is not less than 2% of the investment amount, and provide the funds to the State/Region government from the start of the project. d) Implement activities (a), (b) and (c) in accordance with the Extractive Industries Transparency Initiative and good international standards.  Although Sagaing Government (and possibly other regional governments) are requiring a 400,000 kyats ‘CSR Fund contribution’ to issue artisanal and small-scale mining permits, this has no basis in Union law (and does not appear to be in draft Sagaing Mining Law). 3 mining companies including Wanbao claimed in 2016/17 EITI report to have mandatory ‘CSR fund requirement. May be in their production sharing contract.
  • 19. Should ‘CSR’ be an EIA requirement? In the view of MCRB, CSR (whether CSR 1.0, 3.0, CSV or details of community development should NOT be included in an EIA because:  Not a legal requirement: neither ‘community development’ (or ‘CSR’) are mentioned in Myanmar’s 2015 EIA Procedure or any other Myanmar law except 2019 Gemstones Law  EIA is done by 3rd party EIA consultants, with expertise to identify the project’s negative impacts  It would make the EIA process even more complex, both for ECD, consultants and investors.  EIA/EMP should identify/address the potential negative environmental and social impacts of a project  ECD/MONREC is not qualified or resourced to approve an appropriate Community Development Plan or other forms of CSR1.0 or CSR 3.0  Too many EIAs in Myanmar already try and present only the potential positives of a project, rather than assessing the impacts according to the mitigation hierarchy 19
  • 20. What about Community Development Plans?  Companies and communities can choose to formalize their cooperation in a Community Development Plan or Agreement (CDAs) but:  Community Development Plans should be designed and agreed directly between the company and the local stakeholders. Government may be a participant  Agreements should involve ongoing community company engagement to build trust  They should easily be adapted based on lessons learned and community feedback, which is why they should not be included in a government-company contract or Environmental Compliance Certificate, which is hard to change 20  To facilitate benefit sharing, the Myanmar Parliament could make % spend (of investment? revenue?) on community development or CDAs compulsory for certain types of investment (by size and/or sector) by:  including this in amended Myanmar Investment Law or sectoral laws  Including this in production sharing contracts/investment agreements (as for Letpadaung - $1 million p.a. and then 2% of net profit after production begins)  But this requirement shouldn’t be invented as part of the EIA, or applied unequally
  • 21. Community Development Agreements in other countries Obligation • National legal obligation on companies to formally enter into a CDA. • Papua New Guinea (Mining Act 1992); • Mongolia (Rio Tinto, Oyu Tolgoi copper mine) • Companies seeking access to Indigenous lands to negotiate the conditions of access, or use, with the traditional custodians of that land – a form of Free Prior and Informed Consent (FPIC) • e.g. Australia (Native Title Act 1996), Canada (agreements with First Nations) Voluntary • Significant previous conflict involving the company and local communities. An agreement has been negotiated in an effort to resolve these conflicts e.g. Tintaya copper mine Peru (BHPBilliton) • Pursued to strengthen social licence to operate e.g. Ahafo gold mine, Ghana (Newmont) 21
  • 22. Potential benefits of Community Development Agreeements 22 Benefits for Communities Benefits for Company Benefits for Government  Recognition of status as traditional/customary owners of the land  Acknowledgement of impacts  Compensation for damage, disruption, changes  Development benefits  Greater clarity around company commitments  Greater security of access to land and resources  Greater clarity around company obligations  Reduced conflict and company-community disputes  In Myanmar, supports compliance with para 5 of 2015 Law on Ethnic Nationalities and Myanmar Investment Law  Greater community acceptance of investment development  Increased development contributions from companies, and possibility for government to ‘leverage’ this  Greater security for generation of tax and royalty revenues Provides a framework for ongoing community-company engagement Can incorporate EMP/ECC obligations
  • 23. Structuring company-community relations through a Community Development Agreement 23 • Community Development Agreement • Community Development Initiatives • Voluntary Agreements • Indigenous Land Use Agreements • Partnering or Partnership Agreements • Community Contracts • Landowner Agreements • Shared Responsibilities Agreement • Community Joint Venture Agreements • Empowerment Agreements • Exploration Agreements (Canada) • Impact Benefit Agreements (Canada) • Social Trust Funds (Peru) • Benefits Sharing Agreements (Chile) • Social Responsibility Agreements • Participation Agreements • Socio-economic Monitoring Agreements • Cooperation Agreements (Mongolia) (List adapted from the World Bank’s “Mining Community Development Agreements - Practical Experiences and Field Studies”, 2010) CDAs are best for long-term (eg > 20 years) projects, involving natural resources • Large scale mines or oil and gas • Hydropower dams
  • 24. CDA example: 2015 Oyu Tolgoi Cooperation Agreement 24 • Agreement between Oyu Tolgoi LLC and its partner communities in Mongolia • Strong governance structure for Oyu Tolgoi and local communities to achieve more effective cooperation and address mutual obligations • Under the agreement, Oyu Tolgoi will make a contribution of US$5 million every year to a Development Support Fund (DSF) – administered jointly between Oyu Tolgoi and the Community – for community programmes and projects • Sets out how the parties will work together towards sustainable development in important areas such as: • Water • Environment • Pastureland management • Cultural heritage • Tourism • local business development and • procurement.
  • 25. CSV: building a local supply chain: cost or benefit to the project proponent? Example: CompanyX in Kyaukphyu decides to use a local SME construction company to promote local skills and labour, even though it could get a faster, better and cheaper service from a Yangon company 25 Costs in 2014 Yangon construction company tender: $10,000 Kyaukphyu construction company tender: $10,500 Additional staff effort needed to supervise/help Magwe company: $1,500 Total extra cost to Operations Budget of Company X in 2014: $2,000 Benefits to company X – ‘win-win’ • In 2016 and future the Kyaukphyu construction company retenders and beats the Yangon company on cost and quality • The experience of working with the Kyaukphyu construction SME encourages other Kyaukphyu SMEs to enter the market, increasing competition • Company X can show that it has created 40 local jobs which otherwise would have been filled by Yangon workers and builds its ‘social licence to operate’ with the local community
  • 26. Community benefits: companies buy from local suppliers, they create ‘indirect’ and ‘induced’ economic impacts 26 Daewoo hires Cho Supply Kyaukphyu (CSK) to supply offshore meals CSK purchases fish from local fishermen CSK purchases vegetables from local farmers CSK hires local construction company Farmers purchase ‘longyi’ from local store Fisherman gets a haircut Farmers takes a trishaw to work What else? Construction worker buys a house for his family Worker buys ‘shwe yin aye’ for his children Fisherman’s family visits a ‘mohinga’ shop for breakfast Fisherman goes to a local teashop Farmer’s family buys groceries from local market Direct Effects Indirect Effects Induced Effects Legend Companies can ‘create shared value’ by actively building local supply chains. This will be better for the local economy
  • 27. Social Licence to Operate ရူ ႇဖြဲ႕းြဲ႔ဖစ္းီး း ်ားေ းရးကးရနးစး းသပြာ ႇႇ • Related to how much stakeholders like and trust the company – especially community trust • Cannot be written down on paper – so should NOT be included in any laws  To get a ‘social licence to operate’:  First address negative impacts (EIA)  Then increase positive impacts through community development, employment  Do no harm - not cause conflict between, or within communities, or corruption • Difficult to obtain • Easy to lose: • Letpadaung (maybe never had it) • Volkswagen emissions scandal • BP oil spill 27
  • 28. 28
  • 29. ရူ ႇဖြဲ႕းြဲ႔ဖစ္းီး း ်ားေ းရးကးရနးစး းသပြာ ႇႇ Gaining a ‘social licence to operate’ requires  Listening to all important stakeholders’ views, not just those with the loudest voice  Mutual respect and trust,  Communication - stakeholder engagement How? is more important than How Much? Company personnel need to understand that  Activities to gain social licence (e.g. support to local SMEs, training) may have an upfront cost, but should generate longer term profit/benefit for the company, making them sustainable and supported by top management  All company employees (operations, procurement, safety) and all subcontractors are responsible for gaining and retaining the companies social licence to operate.  They are guests in the community and should observe a ‘code of conduct’ 29
  • 31. Source: Department of Environment, Land, Water and Planning, energy.vic.gov.au Role of EIA and EIA consultant Role of company/ project proponent
  • 32. EIA/IEE public participation 32 International Association for Public Participation IAP2 recently published some advice on public participation during COVID-19 (suited to Australia)
  • 33. Ensuring public participation during COVID-19 lockdown Legal obligations in the EIA Procedure e.g. Article 61 As part of the EIA investigations, the Project Proponent shall undertake the following consultation process: a) timely disclosure of all relevant information about the proposed Project and its likely Adverse Impacts to the public and civil society through local and national media, the website(s) of the Project or Project Proponent, at public places such as libraries and community halls, and on sign boards at the Project site visible to the public, and provide appropriate and timely explanations in press conferences and media interviews; b) arrange consultation meetings at national, regional, state, Nay Pyi Taw Union Territory and local levels, with PAPs, authorities, community based organizations and civil society; c) consultations with concerned government organizations including the Ministry, the concerned sector ministry, regional government authorities and others; and d) field visits for the Ministry and concerned government organizations. • UK has authorised ‘temporary publicity requirements’ to replace physical display of documents on site and in townhalls and libraries newspapers, can be replaced by electronic means e.g. website. Need to inform PAPs/interested parties about website through • mailing lists • social media such as Facebook and Twitter • local authority’s website • local online newspapers • informing local neighbourhood forums and parish/town councils by email • informing local community, amenity and environmental groups by email • Deadlines: South Africa has legally extended deadlines by length of lockdown period
  • 36. This presentation will be available on our website www.mcrb.org.mm myanmar.responsible.business