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SOCIAL MANAGEMENT OF MINING COMPANIES, FROM A PATERNALISTIC TO A MULTI-STAKEHOLDER STRATEGY

Por: Cesar Sáenz Acosta, profesor e investigador de la Universidad ESAN.


Abstract

The social conflict generated around mining projects and operations causes losses for companies and society as a whole. A world-class mining project with a capital expenditure of between US$ 3 billion and US$ 5 billion is estimated to lose up to US$ 20 million per week of production as a result of social conflict with its community (Frank and David, 2014). 

The causes of social conflicts are diverse and, therefore, it is necessary for companies to have an adequate prevention management and good relationship with their communities. 

The objectives of this paper are to present a tool for the diagnosis of social management and prevention of social conflict in companies, which will allow them to adequately manage their relationship with communities and their social management. 

This tool considers internal and external aspects of the social performance of a company, and allows to know the weaknesses and strengths of these aspects in order to create strategies to improve the relationship with communities. 

This study is the result of research on the causes of social conflicts in the mining sector in Peru, as well as prevention measures and lessons learned over two decades in the analysis of social conflicts in the mining industry.

This tool is designed for its practical use by companies to improve social management and includes all company areas, from the highest positions in the organization to operational and community relations personnel. 

This paper has been published in a leading international journal dealing with Corporate Social Responsibility and Environmental Management issues and has received the award as the best research paper of Revista Poder, Think Tank 2019, in the Rural Development category.


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