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12 Mai 2014

Rachel Davis & Daniel Franks; Harvard Kennedy School; Shift; Univ. of Queensland (Australia)

[PDF] Costs of Company-Community Conflict in the Extractive Sector

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This study...explores the full range of costs to extractive companies from failing to prevent or mitigate conflict with local communities around their operations. Through 45 in-depth confidential interviews, an analysis of 50 publicly available cases and fieldwork in Peru, the report investigates the most frequent, greatest, and most often overlooked costs of conflict. Co-Authored by Shift's Rachel Davis, and Daniel Franks from the Centre for Social Responsibility in Mining, University of Queensland, the research shows that extractive companies generally do not identify, understand and aggregate these costs in a way that could help them attract the attention of senior management or the Board. The research also shows that while environmental impacts such as pollution often trigger conflict, there are typically underlying economic and social issues that relate to the quality of the relationship between the company and local communities, which if left unaddressed, may make conflict more likely.

Part of the following timelines

New report on costs of company-community conflict in extractive sector

Shift analyses rise in reporting requirements for companies in wake of release of UK’s Financial Reporting Council "Guidance on Strategic Reporting"

Vedanta Resources lawsuit (re Dongria Kondh in Orissa)