13
2.3.1.2 Governance: Policies, Institutions and Processes
A broader examination of the governance environment was carried out in the light
of the important component of the classic SLF of policies, institutions and processes
(PIP) (Fig. 2.1). This component deals with the governance environment in which
livelihoods are constructed (Rakodi and Lloyd-Jones 2002, pp. 15–16). For the purpose of the research reported in this chapter, governance processes include the interactions between three stakeholders: government, the private sector (particularly
mining and exploration companies) and civil society (Minnery 2007). Thus, in
Fig. 2.2, this is labelled as the ‘Governance’ box.
The mainstream presentations of the SLF exhaustively discuss government and
community roles in developing sustainable livelihoods; however, they have little to
say about the private sector’s role (see, e.g. Rakodi and Lloyd-Jones 2002). The
research reported here emphasises the critical potential importance of the private
sector in the design of sustainable livelihood options for communities and in the
opportunities to reduce poverty in resource regions. The literature on mining emphasises that companies have a responsibility to contribute to other economic futures in
addition to mineral extraction that in fact they have a social responsibility (Hitch
et al. 2014). Some of the incentives for private mining companies to do this include,
but are not limited to, obtaining a ‘social licence to operate’, responding to international standards and regulatory frameworks and being accountable to their shareholders but also to their wider stakeholders (Freeman 1984). Companies’
contributions to community livelihoods differ according to the context and governance dynamics in which they are immersed (Franco and Robertson 2014; Franco
2014):
We do not implement initiatives different from mining because we do not have direct relationship with other sectors...we think that tourism or agriculture are sectors in which we do
not fit. For this reason we focus on education for mining. (Senior Corporate Representative,
Interview, October, 2012)
In addition, it was also found that if the improvement of local livelihoods is identified as a policy goal, then companies need both to be more active in support of this
and to be more accountable to communities. This will help communities enhance
their coping capacities, which will then enable them to overcome imminent
challenges posited by the expansion of mining and exploration projects. Research
shows that while corporate social responsibility agendas are vital to help communities design livelihoods relevant to their development aspirations, in practice such
agendas have serious constraints that challenge corporate efforts (Franco 2014). In
most cases these agendas for human capital/asset enhancement are top-down
approaches intended mainly to enhance human capital to attract and retain skilled
workers for the industry.
Nevertheless, mining and exploration companies can still play a stronger role
with the implementation of bottom-up and locally driven social responsibility agendas. Such approaches can become some of the main enablers for local development,
poverty mitigation and overall sustainability. Developing bottom-up (economically
2 SDG 1 No Poverty
2.3.1.2 Governance: Policies, Institutions and Processes
A broader examination of the governance environment was carried out in the light
of the important component of the classic SLF of policies, institutions and processes
(PIP) (Fig. 2.1). This component deals with the governance environment in which
livelihoods are constructed (Rakodi and Lloyd-Jones 2002, pp. 15–16). For the purpose of the research reported in this chapter, governance processes include the interactions between three stakeholders: government, the private sector (particularly
mining and exploration companies) and civil society (Minnery 2007). Thus, in
Fig. 2.2, this is labelled as the ‘Governance’ box.
The mainstream presentations of the SLF exhaustively discuss government and
community roles in developing sustainable livelihoods; however, they have little to
say about the private sector’s role (see, e.g. Rakodi and Lloyd-Jones 2002). The
research reported here emphasises the critical potential importance of the private
sector in the design of sustainable livelihood options for communities and in the
opportunities to reduce poverty in resource regions. The literature on mining emphasises that companies have a responsibility to contribute to other economic futures in
addition to mineral extraction that in fact they have a social responsibility (Hitch
et al. 2014). Some of the incentives for private mining companies to do this include,
but are not limited to, obtaining a ‘social licence to operate’, responding to international standards and regulatory frameworks and being accountable to their shareholders but also to their wider stakeholders (Freeman 1984). Companies’
contributions to community livelihoods differ according to the context and governance dynamics in which they are immersed (Franco and Robertson 2014; Franco
2014):
We do not implement initiatives different from mining because we do not have direct relationship with other sectors...we think that tourism or agriculture are sectors in which we do
not fit. For this reason we focus on education for mining. (Senior Corporate Representative,
Interview, October, 2012)
In addition, it was also found that if the improvement of local livelihoods is identified as a policy goal, then companies need both to be more active in support of this
and to be more accountable to communities. This will help communities enhance
their coping capacities, which will then enable them to overcome imminent
challenges posited by the expansion of mining and exploration projects. Research
shows that while corporate social responsibility agendas are vital to help communities design livelihoods relevant to their development aspirations, in practice such
agendas have serious constraints that challenge corporate efforts (Franco 2014). In
most cases these agendas for human capital/asset enhancement are top-down
approaches intended mainly to enhance human capital to attract and retain skilled
workers for the industry.
Nevertheless, mining and exploration companies can still play a stronger role
with the implementation of bottom-up and locally driven social responsibility agendas. Such approaches can become some of the main enablers for local development,
poverty mitigation and overall sustainability. Developing bottom-up (economically
2 SDG 1 No Poverty