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The role of employee capacity building in reducing mining company-community conflicts in Peru Garcia Vasquez, Magaly Janeth 2011

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THE ROLE OF EMPLOYEE CAPACITY BUILDING IN REDUCING MINING COMPANY-COMMUNITY CONFLICTS IN PERU  by Magaly Janeth García Vásquez  B.Eng., Universidad de Lima, 2007  A THESIS SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE DEGREE OF  MASTER OF APPLIED SCIENCE in The Faculty of Graduate Studies (Mining Engineering)  THE UNIVERSITY OF BRITISH COLUMBIA (Vancouver) April 2011  © Magaly Janeth García Vásquez, 2011  ABSTRACT Based on expenditure, Peru is the third destination worldwide in exploration. Peru is also the world’s leading producer of silver, second in copper and zinc, and sixth in gold. However, mining conflicts in Peru have spread considerably over the last decade. The Peruvian government has not been able to successfully promote the benefits of the industry to local communities, nor has it been able to effectively address grievances. Mining companies will need to explore new initiatives to acquire and retain the social license to operate, as well as strengthening the social capital needed to keep mining in a country with proven mineralogical riches and a historic mining culture. This research project explores the opinions and experiences surrounding a resource often overlooked by companies: the human resource. In order to gather information regarding initiatives to improve company-community relations, more than 30 surveys were conducted among professionals working at mines in the Peruvian mining industry. This research project also explored the effectiveness of training mining personnel in community affairs as an initiative to improve relations with local communities. The results showed that mining company employees acknowledge that they play an important role in the development of company-community relations. They consider that the deterioration of such relations may also originate in the way employee-community relations are managed. The research also showed that employees are willing to develop capacities to effectively interact with local communities. Mining company employees provided their recommendations in order to contribute to success in a location where cultural differences have not been properly considered. Finally, participants also expressed their opinions regarding organizational cultures and the impact of management commitment (or lack thereof) on community affairs.  ii  PREFACE This research was conducted by the author under the supervision of Dr. Dirk van Zyl professor of the Norman B. Keevil Institute of Mining Engineering, University of British Columbia. It was approved by the UBC Behavioural Research Ethics Board on April 6th, 2010. Certificate number H10-00259.  iii  TABLE OF CONTENTS Abstract ......................................................................................................................... ii Preface .......................................................................................................................... iii Table of Contents ......................................................................................................... iv List of Tables ............................................................................................................... vii List of Figures ............................................................................................................ viii List of Abbreviations.................................................................................................... ix Acknowledgements ....................................................................................................... x Dedication .................................................................................................................... xi Chapter 1.  Introduction ............................................................................................ 1  1.1  Overview ................................................................................................................. 1  1.2  Research Question and Objectives .......................................................................... 1  1.3  Thesis Outline .......................................................................................................... 2  Chapter 2.  Literature Review ................................................................................... 3  2.1  Peru: a Mining Country ........................................................................................... 3  2.2  The New Era of Peruvian Mining............................................................................ 5  2.3  2.4  2.2.1  Sustainability and Sustainable Development in Peru ...................................... 5  2.2.2  Corporate Social Responsibility ...................................................................... 8  Mining Conflicts in Peru and the Triangle of Actors .............................................. 9 2.3.1  The Peruvian Government ............................................................................. 12  2.3.2  The Local Communities ................................................................................ 14  2.3.3  The Mining Companies ................................................................................. 15  Mining Companies and Company-Community Conflicts in Peru......................... 16 2.4.1  The Cost of Conflicts: the Mining Company Perspective ............................. 16  2.4.2  Mining Employees as the Company-Community Link ................................. 19  2.4.3  Literature Review Summary .......................................................................... 22  Chapter 3.  Research Approach .............................................................................. 23  3.1  Rationale behind Research .................................................................................... 23  3.2  Research Approach ................................................................................................ 23  iv  3.2.1  Theoretical Framework or Interpretative Paradigm: Critical Theory ............ 24  3.2.2  Design and Strategy of Inquiry: Constructivist Grounded Theory ................ 25  3.2.3  Method of Data Collection: Interviews ......................................................... 25  3.2.4  Data Analysis: Critical Discourse Analysis and Content Analysis ............... 28  3.2.5  Triangulation or Validation ........................................................................... 29  3.3  Experiences ............................................................................................................ 29  3.4  Data Limitations .................................................................................................... 30  3.5  Research Approach Summary ............................................................................... 31  Chapter 4.  Survey Results ...................................................................................... 33  4.1  Profile of the Participants ...................................................................................... 33  4.2  Employees Rate the Overall Company–Community Relationship ....................... 35  4.3  Views on the Roots of Mining Conflicts ............................................................... 36  4.4  Ensuring the Appropriate Personnel: the Employee Perspective .......................... 38  4.5  Training as an Initiative for Improving Employee – Community Interactions ..... 42  4.6  4.5.1  If Yes, What Would Be the Training Needed? .............................................. 44  4.5.2  If No, What Would Be an Effective Initiative? ............................................. 46  Current Training in Mining Companies ................................................................ 47 4.6.1  Rating the Current Training Programs .......................................................... 48  4.6.2  Improving Current Training Programs .......................................................... 49  4.7  Views on Improving Employee – Community Relations through Training ......... 51  4.8  Additional Comments of Participants.................................................................... 53  4.9  Survey Results Summary....................................................................................... 54  Chapter 5. 5.1  Discussion ............................................................................................ 55  Major Themes Emerging from data ....................................................................... 55 5.1.1  Ethics ............................................................................................................. 56  5.1.2  Interpersonal Relationships ........................................................................... 58  5.1.3  Corporate Culture .......................................................................................... 59  5.1.4  Conflict Management .................................................................................... 61  5.1.5  Local Community Culture ............................................................................. 61  5.1.6  Local Community Capacity Building and Community Development .......... 62  5.1.7  Community Relations Department ................................................................ 63 v  5.2  Summary Recommendations for Implementation of Research Outcomes ............ 65 5.2.1  Employee Capacity Building ......................................................................... 65  5.2.2  Additional Approaches for Reducing Company-Community Conflicts ....... 67  Chapter 6.  Conclusions and Recommendations for Further research.................... 70  6.1  Conclusions of the Study ....................................................................................... 70 6.1.1  Conclusion from Literature Review .............................................................. 70  6.1.2  Conclusion from Research Approach ............................................................ 70  6.1.3  Conclusion from Survey Results ................................................................... 71  6.1.4  Conclusion from Discussion .......................................................................... 71  6.1.5  Research Question and Objectives ................................................................ 72  6.2  Recommendations for Future Research ................................................................. 73  6.3  Final Thoughts ....................................................................................................... 74  Chapter 7.  References ............................................................................................ 76  Appendix 1: Survey in English and Spanish ............................................................... 85 Appendix 2: Ensuring the Appropriate Personnel ...................................................... 93 Appendix 3: Training as a Potential Initiative .......................................................... 102 Appendix 4: If No, What Would Be an Effective Initiative?.................................... 106 Appendix 5: If Yes, What Would Be the Training Needed? .................................... 108 Appendix 6: Current Training in Mining Companies ............................................... 114 Appendix 7: Recommendations to Improve Current Training ................................. 116 Appendix 8: The Potential of Training ..................................................................... 120 Appendix 9: Additional Comments .......................................................................... 126  vi  LIST OF TABLES Table 2-1: Position of Peru in World Production Ranking ................................................. 4 Table 2-2: Socio-Environmental Conflicts Registered by the Ombudsman Office.......... 10 Table 2-3: Socio-Environmental Conflicts by Department in December 2010 ................ 11 Table 2-4: Principal Projects Involved in Socio-Environmental Conflicts....................... 12 Table 4-1: Departments and Number of Participants Included in the Study .................... 33 Table 4-2: Potential Topics for a Training Program ......................................................... 44 Table 5-1: Descriptors and Categories Assigned .............................................................. 55 Table A2-1: Ensuring the Appropriate Personnel ............................................................ 93 Table A2-2: Ensuring the Appropriate Personnel- Spanish .............................................. 97 Table A3-1: Training as an Initiative to Improve Employee–Community Interactions . 102 Table A3-2: Training as an Initiative to Improve Interactions - Spanish ....................... 104 Table A4-1: If No, What Would Be an Effective Initiative? .......................................... 106 Table A4-2: If No, What Would Be an Effective Initiative? - Spanish .......................... 107 Table A5-1: If Yes, What Would Be the Training Needed? ........................................... 108 Table A5-2: If Yes, What Would Be the Training Needed? - Spanish ........................... 111 Table A6-1: Current Training in Mining Companies ..................................................... 114 Table A6-2: Current Training in Mining Companies - Spanish ..................................... 115 Table A7-1: Recommendations to Improve Current Training ........................................ 116 Table A7-2: Recommendations to Improve Current Training - Spanish ........................ 118 Table A8-1: The Potential of Training ............................................................................ 120 Table A8-2: The Potential of Training - Spanish ............................................................ 123 Table A9-1: Additional Comments ................................................................................. 126 Table A9-2: Additional Comments – Spanish ................................................................ 128  vii  LIST OF FIGURES Figure 2-1: Worldwide Nonferrous Exploration Budgets by Region ................................. 3 Figure 2-2: Exploration Budgets for the Top Ten Countries, 2009 .................................... 4 Figure 2-3: Employee Interface ........................................................................................ 21 Figure 4-1: Distribution of Departments Included in the Study ....................................... 34 Figure 4-2: Years of Experience in the Peruvian Mining Industry ................................... 34 Figure 4-3: Rating of the Overall Company-Community Relationship ............................ 35 Figure 4-4: Level of Agreement with Root of Conflict 1 ................................................. 37 Figure 4-5: Level of Agreement with Root of Conflict 2 ................................................. 37 Figure 4-6: Level of Agreement with Root of Conflict 3 ................................................. 38 Figure 4-7: Level of Agreement with Statement in Question N°6 ................................... 39 Figure 4-8: Training as One of the Most Effective Initiatives .......................................... 42 Figure 4-9: Existing Training in Community Related Issues ........................................... 47 Figure 4-10: Rating the Effectiveness of the Existing Training Programs ....................... 48 Figure 4-11: Rating of the Potential of Training............................................................... 51 Figure 5-1: Themes Emerging from Data ......................................................................... 56  viii  LIST OF ABBREVIATIONS APCSG: Adjuntía para la Prevención de Conflictos Sociales y la Gobernabilidad BNA: Business News America CFP: Corporate Financial Performance CSP: Corporate Social Performance CSR: Corporate Social Responsibility EDC: Export Development Canada EIA: Environmental Impact Assessment ICMM: International Council on Mining and Metals IFC: International Finance Corporation IISD: International Institute for Sustainable Development LC: Local Community MEG: Metals Economic Group MINEM: Ministerio de Energía y Minas del Perú MINPERU: Minería del Perú MMSD: Mining, Minerals and Sustainable Development NGO: Non-Governmental Organization OCMAL: Observatorio de Conflictos Mineros de América Latina SPDA: Sociedad Peruana de Derecho Ambiental WBCSD: World Business Council for Sustainable Development WCED: World Commission on Environment and Development  ix  ACKNOWLEDGEMENTS This thesis would not have been possible without the help and support of a number of people to whom I am sincerely grateful. First of all, I would like to express my deep and sincere gratitude to my supervisor Dr. Dirk van Zyl for providing me with this tremendous opportunity. His invaluable mentoring, assistance and support in this study and in my journey as a graduate student from beginning to end gave me the confidence to remain committed to my goals during even the most challenging moments. I also feel extremely fortunate to have had the opportunity throughout my life to listen to the stories of professionals in the Peruvian mining industry. Those experiences, especially those recounted by my father, who has been in the industry for more than 30 years, inspired me to include in this document the valuable opinions of mining professionals. I am deeply grateful to all the professionals in the Peruvian mining industry who agreed to participate in this study. It is my hope that their views and recommendations will lead to initiatives for the prevention of the conflicts that are posing a growing threat to the viability of the mining industry in our country. I would also like to express my warm and sincere thanks to my advisory committee: Dr. Michael Hitch, Dr. Scott Dunbar and Dr. Myriam Cabrera. Their insight and experience have benefited this study tremendously. Thanks to my dearest parents Francisco and Bertha for their love and invaluable support; my siblings for their patience, guidance and encouragement. Thanks also to the Lukits family for their caring, understanding and never-ending support. Without them all I would have never gotten this far. I am forever grateful to my friends at the UBC Mining Department, to my latin crew  and to the circulo de confianza. My special thanks to all of them for their friendship, humour and support. I feel grateful to have them in my life. Last but not least, I would like to thank Juan Carlos Lanao for always having believed in me. I keep you in my heart and your memory has given me the strength to never give up. x  DEDICATION A mis padres  xi  CHAPTER 1.  INTRODUCTION  1.1 Overview In Peru, the third worldwide destination in exploration based on expenditure, mining conflicts have spread considerably over the last decade (APCSG, 2011). The Peruvian government has not been able to successfully promote the benefits of the industry to local communities, nor has it been able to effectively manage emerging conflicts. Local communities have forced companies to withdraw a number of projects and some communities have even mistakenly resorted to violent acts to express their opposition. Most large mining companies, as stated on their web pages, are implementing initiatives to build better relationships with neighbouring communities. However, reports affirm that tensions with local communities have also been affected by the way employees interact with local community members (Kuramoto, 2004; Arellano, 2008; Elizalde et al, 2009; Lafuente, 2009). Mining employees play an important role in obtaining and retaining the social license to operate. They also constitute a key feedback source of information (Freeman and Miller, 2009). Professionals working at mines in the Peruvian mining industry, in different departments and from different organizational levels, were interviewed to explore the effectiveness of training for mining personnel as an initiative to improve employeecommunity interaction. Only mining employees were consulted, with the aim of also exploring other recommendations presented by mining employees, such as companycommunity links.  1.2 Research Question and Objectives Based on the concept of mining employees as the company-community link and key sources of information, and under the hypothesis that mining employees recognize that poor employee-community interactions contribute to the escalation of tension, this research sought to answer the following question:  1  According to mining employees working in the Peruvian mining industry, Is training of mining personnel one of the most effective initiatives to improve interaction between mining employees and local community members? The objectives of this research were: •  To determine if Peruvian mining employees consider that the relationships between mining companies and local communities have been affected by the way mining employees interact with local community members.  •  To gather information about the initiatives (if any) mining employees consider mining companies could develop to improve relations with local communities.  •  To determine if Peruvian mining employees consider training of mining personnel an effective initiative to improve relations with local communities.  1.3 Thesis Outline Chapter Two provides a literature review about mining conflicts in Peru and focuses on mining employees as a company-community link. Chapter Three describes the methodology used to gather information from professionals in the Peruvian mining industry. Chapter Four brings together the study outcomes and presents the comments of participants, while Chapter Five presents a discussion of the major themes that emerged during the analysis of the responses. Chapter Six concludes the thesis by listing conclusions and presenting recommendations for future work. Finally, references cited in this document are listed and appendices are provided containing details regarding data and analysis in this study.  2  CHAPTER 2.  LITERATURE REVIEW  2.1 Peru: a Mining Country Today’s mining industry must satisfy society’s simultaneous demands for profitability, environmental protection and social justice. At the same time, mining must also face the economic, technological and social challenges posed by the remote and sometimes almost inaccessible allocation of scare resources. In 2009, worldwide exploration budgets totalled US$7.32 billion, US$5 billion less than in 2008 (MEG, 2010). The global economic crisis marked the largest one-year decline in exploration budgets in the past 20 years. All regions experienced decreases in exploration allocations. However, Latin America remained the most popular exploration destination (Figure 2-1), a position held since 1994 due to its proven mineralogical riches (MEG, 2010). Pacific/ Southest Asia 6% United States 7%  Latin America 26%  Australia 13%  Africa 15%  Rest of World 17% Canada 16%  Figure 2-1: Worldwide Nonferrous Exploration Budgets by Region after (MEG, 2010:5)  Globally, only ten countries (Figure 2.2) accounted for 67% of the total 2009 Exploration Budget (MEG, 2010). Peru ranked third worldwide but was the top destination for exploration in Latin America, capturing 25% of investment in the region (MINPERU, 2010).  3  Canada 16% Other countries 33% Australia 13%  South Africa 3% Brazil 3%ChinaChile 4% 5%  Peru 7% Mexico 5%  United States Russia 6% 5%  Figure 2-2: Exploration Budgets for the Top Ten Countries, 2009 after (MEG, 2010:6)  During the 1990s Peru privatized its mining sector with the assistance of the World Bank and the International Monetary Fund. The Peruvian mining industry has become one of the largest in the world. The variety of mineral products (Table 2-1) has transformed mining into the main driver of Peruvian economic growth. In 2009, total mining exports surpassed US$16 billion (ProInversion, 2010), amounting to 61% of the country’s total exports. Table 2-1: Position of Peru in World Production Ranking (MINEM, 2010)  Mineral Silver Zinc Tin Lead Gold Copper  Global 1 2 3 4 6 2  Latin America 1 1 1 1 1 2  Peru currently hosts 14 member companies of the International Council on Mining and Metals (ICCM). This association is comprised of the world’s largest mining companies. This is the highest concentration of large mining companies in any country (Oxfam America, 2009). Anglo American, Barrick, BHP Billiton, Freeport McMoran, Gold Fields, Newmont,  4  Rio Tinto, Teck Resources, Vale and Xstrata are some of the large international mining companies operating in the country. According to the Ministry of Energy and Mines (MINEM - Ministerio de Energía y Minas), between 1990 and 2007, Peru received US$12.35 billion in mining investments. However, in 2009 alone mining investment was US$2.7 billion, 61.6% more than in 2008. During 2010, investment is expected to reach US$3 billion (WordPress, 2010) due to expansion at several existing mines, around 36 exploration and expansion projects, and over 100 junior companies working primarily on exploration (Conger, 2008). For the future, the Ministry has estimated US$35 billion in mining investments over the next five years (MINEM, 2010). The outlook for the Peruvian mining industry appears very optimistic. However, as stated by Jose Miguel Morales, head of the 9th International Gold Symposium, held in Peru in May 2010, although Peru currently ranks third worldwide in exploration investment and sixth in gold production - with almost US$400 million spent each year in gold exploration – “the numbers could be even higher were it not for the social conflicts that have arisen” (MercoPress, 2010).  2.2 The New Era of Peruvian Mining 2.2.1  Sustainability and Sustainable Development in Peru  Since the 1960s, when worldwide environmental consciousness began to grow, the idea of organizations’ responsibilities towards society has evolved. Today, mining companies are required to incorporate into their activities long-term planning of environmental, social and economic issues in an effort to comply with commonly discussed notions of sustainability and sustainable development. In 1987, The Brundtland Commission Report defined sustainable development as: “development that meets the needs of the present without compromising the ability of future generations to meet their own needs” (WCED, 1987:43). For the mining industry this definition by itself represents an enormous challenge, due to the extractive nature of its activities and its dependence on non-renewable resources.  5  Hilson and Murck (2000), in the document “Sustainable Development in the Mining Industry: Clarifying the Corporate Perspective”, completed a review of proposed definitions of sustainable development in mining. The document concluded that literature providing perspectives on how mining can be sustained from generation to generation, through conservation (prolonging longevity of reserves) and increased recycling of minerals and metals, fails to outline how a mine can contribute to sustainable development (Hilson and Murck, 2000). The authors consider that an operating mine is a temporary project that will function only as long as it is economically viable. Thus, Hilson and Murck (2000) indicate that the definition should integrate both key industrial environmental and socioeconomic issues into any analysis. Meanwhile, the International Institute for Sustainable Development (IISD); through the Mining, Minerals and Sustainable Development (MMSD) project, has stated that mining can only contribute positively to sustainability if human and ecosystem well-being are maintained or improved (MMSD, 2002). According to Eggert (2000), mining companies are called upon to facilitate the creation of mineral wealth, assure mineral development in an economically and socially efficient manner, and seek a fair distribution of benefits, promoting activities intended to create self-sustaining projects. In literature, the concepts “sustainability” and “sustainable development” are often used interchangeably. Eggert (2009) tried to establish a contrast between the two concepts. He proposed that sustainability should be considered a one-dimensional criterion where one consideration is implicitly or explicitly prioritized. Either: • environmental sustainability - maintaining the ability of the environment to provide life-sustaining services, • economic sustainability - sustaining or enhancing human living standards, or • social and cultural sustainability - accepting that involved parties should share the benefits of mining activities. Sustainable development, on the other hand, should be seen as a multi-dimensional goal that simultaneously seeks to sustain and enhance environmental quality, humaneconomic living standards and equitable distribution of the benefits of development (Eggert, 6  2009). Gibson (2005) argued that the idea of integrated sustainable development represents an ambitious goal given the tensions between economic goals and ecological or social imperatives, and between immediate and longer term gains. James (1999) considered that the mining industry would be measured by sustainable development standards and affirmed that in order to contribute to environmental, economic and social value companies must involve stakeholders in the development of projects “earning their trust, allowing them to share in the creation of economic value and obtaining their consent to the decisions reached” (James, 1999:91). Veiga et al. (2001) discussed the notion that the contribution of the mining industry to Sustainable Development exists only through the development of sustainable communities which might realize a net benefit from the introduction of mining that lasts through the closure of the mine and beyond. Gibson (2005) adds that the limited period of economic viability presented by mining projects must serve as a bridge to a more sustainable future, through the support of new economic activities that might strengthen the foundation for viable and durable livelihoods after mine closure. The Peruvian mining industry has embraced the concepts of sustainability and sustainable development. Environmentally, the industry in Peru has experienced dramatic change since 1990, when reforms to the institutional and environmental legal framework were implemented. There now exists laws regulating Environmental Impact Assessments (EIA), mining environmental liabilities and mine closure plans; as well as guidelines regarding environmental quality standards and corporate social responsibility (MINEM, 2010). Economically, Peru focuses its attention on poverty alleviation, in contrast with developed countries, which focus on the reduction of ecological footprints. Boutilier (2009a) proposes that this discrepancy is the reason why it is sometimes overlooked that people in developing countries, like Peru, actually value the jobs offered by mining companies. Nevertheless, Peruvian society is divided between people who accept the contribution of mining, through the creation of job opportunities and the construction of basic infrastructure, and those people who question the benefits of the industry. This division stems from the fact that most of the mining communities in Peru have experienced social problems linked to mining activities, such as local unemployment, delinquency, prostitution and alcoholism (Kuramoto, 2004). 7  2.2.2  Corporate Social Responsibility  Corporate Social Responsibility (CSR) has become a fundamental approach through which organizations engage in business. Friedman’s description of CSR, “to use resources and engage in activities designed to increase profits” (Friedman, 1970:1), has been broadly questioned. However, despite its emergence as a key business topic, a universally agreed definition has eluded corporations and researchers (Cetindamar, 2007). The World Business Council on Sustainable Development (2000:10) defined CSR as: “the commitment of business to contribute to sustainable economic development, working with employees, their families, the local community and society at large to improve their quality of life”. CSR involves voluntary activities usually comprised of environmental and social initiatives intended to diminish the impacts related to business activities. Porter and Kramer (2006) considered that CSR programs can be justified under: •  a moral obligation,  •  a sustainability concern by ensuring that future societal costs do not outweigh immediate economic gains, or  •  a strategic investment necessary to enhance company reputation and obtain/retain the social license needed to operate. CSR policies work at different levels in organizations “beginning at the individual level  and the accountability of individual employees and managers, to the responsibility of corporations to their employees and the communities at large” (Berkley and Watson, 2009: 275). CSR programs can be a rallying point for organizational identification and employee commitment (Maignan et al., 1999; Brammer et al., 2007). The financial merit of CSR has also been broadly discussed. There has been a great deal of research analyzing the relationship between Corporate Financial Performance (CFP) and Corporate Social Performance (CSP). CSP is described as a summary of the aggregate social posture of the company and focuses on the overall social performance of the company at a particular point in time (Barnett, 2007). Recently, Lee et al. (2009) stated that even if an organization experiences positive impacts on reputation, brand and workforce attraction  8  (Guerard, 1997; Herremans et al., 1993; Grieg-Gran, 2002; Derwall et al., 2005) these benefits would contrast with the costs incurred to improve social or environmental performance (Langbein and Posner, 1980; Aupperle et al., 1985; Knoll, 2002). The findings supported Ullmann’s (1985) position that due to the number of different variables between CSP/CFP, it cannot be assumed that a direct relationship exists. A direct economic benefit for the incorporation of CSR programs has been difficult to determine. However, the adaptation of ethical standards has become central to multinational corporations (i.e. mining companies), given that policies in place (or those not in place) in particular geographic regions could influence perceptions of organizational intent and sensitivity (Berkley and Watson, 2009). Porter and Kramer (2006) added that the development of appropriate and site specific CSR policies in mining companies is a leadership decision that can turn CSR from a perceived cost or charitable deed into a source of opportunity and competitive advantage. This is especially true in Peru, where mining conflicts have spread considerably, as described in the next section.  2.3 Mining Conflicts in Peru and the Triangle of Actors Mining projects are more vulnerable than other industrial projects as they are tied to a specific geographic space. In this sense, McGregor and Malhotra (2001) affirm that maintaining good relations with neighboring communities has become a necessity rather than an option. Mining companies that do not engage in a meaningful dialogue with communities impacted by mining will risk public scrutiny, project delays or closures and even violent conflicts (Handelsman et al., 2003). Differences in objectives and positions between mining companies and communities can generate tensions and frictions that eventually lead to permanent protests and confrontations (Tanaka et al., 2007). In Peru, conflicts have spread considerably over the last decade. Some of the social issues associated with the development of those conflicts are: unfulfilled expectations for employment and benefits, land acquisition and resettlement impacts, inadequate communication during the licensing process, regulations, lack of local capacity for  9  negotiation and management, and the perception of mining as a polluting activity (The World Bank, 2005; Oxfam America, 2009) 1. The Adjuntía para la Prevención de Conflictos Sociales y la Gobernabilidad (APCSG) is an agency under the auspices of the Peruvian Ombudsman Office. The APCSG is dedicated to the prevention of social conflicts and publishes a monthly report of the conflicts encountered in the country. To show the proliferation of social conflict in Peru, Table 2-2 presents the number of socio-environmental conflicts during the month of December in the last five years. Socio-environmental conflicts are defined as conflicts between communities and companies that extract natural resources (APCSG, 2011). Table 2-2: Socio-Environmental Conflicts Registered by the Peruvian Ombudsman Office after (APCSG, 2011) Year  Conflicts  Active  Latent  2006  20  *  *  2007  37  *  *  2008  93  56  37  2009  124  90  34  117  86  31  2010  *Not detailed by the agency  As seen in Table 2-2, the number of socio-environmental conflicts associated with extractive companies has increased in the last few years. The number indicated per year accounts for both active conflicts and latent conflicts. Active conflicts are defined as social conflicts that have been expressed by any third party or through formal or informal public complaints. Latent conflicts are defined as social conflicts apparently hidden or inactive, where confrontations have not occurred yet or have stopped for a considerable time (APCSG, 2010). In December 2010, 86 conflicts were active while 31 were considered latent. In its monthly report, the Peruvian Ombudsman Office also presents a summary of socioenvironmental conflicts by department (Table 2-3). The APCSG only reports conflicts and does not present an analysis of the factors behind such conflicts.  1  The author tried to compare and contrast the statements of these organizations with other published documents about mining conflicts in Peru. However, there is very little literature available, particularly from an industry perspective.  10  Table 2-3: Socio-Environmental Conflicts by Department in December 2010 after (APCSG, 2010)  Socio-environmental Conflicts by December 2010 Department  Active  Latent  By Region  Amazonas Ancash Cajamarca La Libertad Loreto Piura San Martín  3 8 8 1 5 4 1  5 4 1  Northern Peru 41 Active: 31 Latent: 10  Tumbes  1  Pasco Lima Junín  4 5 4  1 4 2  Huánuco  1  Central Peru 21 Active: 14 Latent: 7  Tacna Puno Moquegua Madre de Dios Ica Huancavelica Cuzco Ayacucho Arequipa  3 9 2 2 2 4 8 3 4  Apurímac  4  1 1 2 1 1 4 2 2  Southern Peru 55 Active: 41 Latent: 14  Table 2-3 presents the number of conflicts (active and latent) per department and region encountered by the APCSG in December 2010. The majority of conflicts encountered in December 2010 occurred in southern Peru, specifically in the department of Puno. On its webpage, the international mining NGO Observatorio de Conflictos Mineros de America Latina (OCMAL) provides 2 a database of the major conflicts they are ongoing in each Latin  2  At: http://www.olca.cl/ocmal/  11  American country. Table 2-4 presents the list of the principal projects, according to OCMAL (2011), currently dealing with mining conflicts in Peru. Table 2-4: Principal Projects Involved in Socio-Environmental Conflicts after (OCMAL, 2011) Project  Company  Department  Region  Alto Chicama Pierina La Zanja Rio Blanco Yanacocha Antamina Toromocho La Oroya Quellaveco Antapite Chumbivilcas Cuajone  Barrick Barrick Buenaventura Monterrico Metals Newmont, Buenaventura Teck, BHP, Xstrata, Mitsubishi Co. Chinalco DOE RUN Anglo American Buenaventura Hochschild Mining Southern Cooper  La Libertad Huaraz Cajamarca Piura Cajamarca Huaraz Junín Junín Moquegua Huancavelica Cuzco Moquegua  Toquepala Tia Maria Tintaya Las Bambas  Southern Cooper Southern Cooper Xstrata Xstrata  Tacna Arequipa Cuzco Cuzco  North North North North North North Central Central South South South South South South South South  The development and operation of a mine in Peru involves many groups that can be directly or indirectly affected by the project. However, most conflicts involve three fundamental actors: the Peruvian government, local communities and mining companies. 2.3.1  The Peruvian Government  Ideally, governments should establish appropriate legal and regulatory frameworks that assure the fair distribution of the benefits of the mining industry while avoiding environmental damage and social disruption (Boutilier, 2009a). The Peruvian government, through the Ministry of Energy and Mines (MINEM) (2010), promotes its commitment to: •  environmental stewardship,  •  conservation of bio-diversity and protected areas,  •  respect for institutions, communities and cultures, 12  •  open discussion and transparency,  •  employment that gives priority to local people and suppliers. However, in May 2008, when the Ministry of the Environment was created, the  Peruvian government exempted mining from the responsibilities of the new governmental institution. The Ministry of Energy and Mines kept the role of both promoter of mining investments and enforcer of social and environmental regulations. This perceived conflict of interest, in addition to ineffective conflict management and a virtual absence of legitimate political representation at the local level, caused company-community disputes to develop rapidly into violent confrontations (PERU: Land Legislation Leads to Ethnic Violence, 2009). The Peruvian government faces constant complaints regarding environmental concerns. It has been criticized as being primarily focused on preventing social conflicts only as a way to protect future mining investments (Tanaka et al., 2007). There are also concerns about the redistribution of mining revenues. At the sub-national level there is limited capacity to invest the “canon minero” (Arellano, 2008). The canon minero, or mining royalties, refers to the 50% of mining taxes that by law must be returned to the region where the taxes were generated by mineral extraction 3. Arellano (2008) argues that this case of the Peruvian redistribution of mining revenues represents a new historical form of the resource curse, where the curse has been relocated to sub-national levels. The regulations behind the canon minero have resulted in violent conflicts. In November 2008 in the southern Peruvian cities of Moquegua and Tacna, clashes between police and protestors resulted in three deaths. The conflict started when, under a proposed mining reform, Tacna was to receive a reduced share of the revenues received from the Toquepala project. Toquepala is a copper project owned by Southern Copper Corporation and located between Tacna and Moquegua. The following year, in June, 20,000 protestors blocked the roads to Moquegua and took 48 police officers as hostages (Oxfam America, 2009). During the protests mining activities were deliberately not affected. The local  3  Information on canon minero at: http://www.minem.gob.pe/descripcion.php?idSector=1andidTitular=2909  13  communities made a clear statement of their determination to confront an organization, in this case the Peruvian government, when an agenda does not match community interests. 2.3.2  The Local Communities  Within Peruvian society there is a perception of mining as a polluting activity. Largescale mining generates relatively few jobs compared to the agricultural activities traditionally developed in the Peruvian countryside (Kuramoto, 2004). Mining benefits are expected to reach communities through government programs in charge of redistributing mining revenues. Still, local communities complain about experiencing few benefits from mining activities (Oxfam America, 2009). Local governments have not been able to effectively spend the money distributed through the canon minero. Nor have communities been able to develop a vision that allows them to invest mining revenues wisely. Many communities lack trusted advisors, while experts from central government may not be considered reliable either, with communities often equally reluctant to partner with the government (EDC, 2008). Local communities search for other ways to negotiate directly with mining companies. Unfortunately, some communities have opted to block mining projects and have turned to violence to force a dialogue (Caballero, 2009). Local communities have also opted to implement referendums to reject mining projects. In 2003 for example, in the local referendum held in the department of Piura (northern Peru), over 93% of the residents of Tambogrande forced Manhattan Minerals to depart from their lands (Muradian et al., 2003). In September 2007, the exploration activities of Monterrico Metals in Piura’s highland provinces of Ayabaca and Huancabamba were also rejected by 90% of the votes cast (Bebbington and Williams, 2008). At the Rio Blanco project (also in northern Peru), owned now by the Chinese company Zijin Metals, communities protested over the potential effects of the proposed copper mine on their production of organic coffee and fruit (Crabtree, 2010). Once more, in September 2007 local governments and community members organized a referendum in which the project was rejected. The following year, at the copper project La Granja in the department of Cajamarca (northern Peru), Rio Tinto was forced to reduce project development due to community 14  concerns regarding the potential pollution of local water sources (PERU: Rio Tinto Suspends Peru Construction After Protest, 2008). Rio Tinto found itself in the difficult position of dealing with a huge legacy of fear and mistrust. 2.3.3  The Mining Companies  Mining companies have made mistakes in their relationships with local Peruvian communities. In Tambogrande, Manhattan Minerals tried unsuccessfully to operate in areas considered by local communities as non-viable for mining given their potential for agricultural exports (i.e. limes and mangos) and domestic food production (Muradian et al., 2003). In the end, after a series of errors in communication and several years of protests, the company was forced to withdraw. However, during the last four years, there has been a significant presence of artisanal mining in the region which has caused the contamination of local water sources and has affected the production of limes and mangos (SPDA, 2010). Mining companies in Peru have provided local communities with infrastructure, education and health services. However, Herz et al. (2007) consider that most mining organizations need to strengthen the relationship shared with local communities and in many respects regain the trust lost due to past mistakes. In 2000 for example, in the department of Cajamarca (northern Peru) a contractor’s truck transporting mercury from the gold mine Yanacocha (owned by Newmont and the national company Buenaventura) spilled 151 kg of metallic mercury over 42 km of road in Choropampa (Veiga and Hinton, 2000). This incident, added to unmet expectations, damaged the relationship between Yanacocha and the local communities (Elizalde et al., 2009). Later in 2004, when the company tried to expand its operations into Cerro Quilish, local communities protested, forcing the company to scale back operations and ultimately to withdraw from that project (Herz et al., 2007). The majority of company-community disputes are related to tenure and land ownership or environmental and economic concerns. However, authors (Lafuente, 2009; Elizalde et al., 2009; Kuramoto, 2004; Arellano, 2008) claim that in a number of situations the derogatory and discriminatory attitudes of company employees have exacerbated tensions between companies and local communities. In the “Community Relationships Review: Yanacocha Mine” prepared for Newmont Mining Company in 2009, researchers concluded that many 15  conflicts between the company and the local communities can also be attributed to the arrogant attitudes of employees (Elizalde et al., 2009). It was stated that - according to local residents - since the beginning of operations, the attitudes of management and employees were not compatible with the customs of local populations. Too often, there is a deep misunderstanding between communities and mining companies in Peru (EDC, 2008). Cultural differences have not been properly taken into consideration. Most of the mining companies operating in Peru have their headquarters in developed countries. Differences in values and norms have generated cultural conflicts with Andean communities which, according to Gouley and Kuramoto (2007), have different ways of understanding concepts like labor, environment, weather or land. Cabrera (2005) considers that companies need to engage communities differently and avoid the losses that can be caused by not accounting properly for social issues. To date, the literature review has attempted to present a general view of the current reality of the Peruvian mining industry. However, this research is focused on a mining industry perspective. The following sections will explore the cost of conflicts for companies, and discuss possible initiatives for mining organizations for the reduction of tension and the strengthening of relationships with local communities.  2.4 Mining Companies and Company-Community Conflicts in Peru 2.4.1  The Cost of Conflicts: the Mining Company Perspective  Conflicts between mining companies and local communities are constantly emerging. Mining conflicts affect companies in different ways, especially since communication technologies have facilitated the immediate scrutiny of mining activities around the globe (Szablowski, 2002; James, 1999). The Tangible and Intangible Costs of Conflict The social conflicts originating around mining projects cause different losses to all the stakeholders involved in the development of a mine. The Peruvian government faces the expenses caused by the destruction of infrastructure and assumes the cost of police and 16  military activities (Cabrera, 2005). Local communities reject potential development opportunities and the image of Peru is affected, thereby impacting the attraction of future foreign investment. Mining companies in particular assume significant costs. As unmet expectations, disagreements and concerns lead to the development of conflicts, mining companies face potential (but almost certain) economic losses when complaints and grievances are not addressed in a timely manner and tensions evolve into violent conflicts (Herz et al., 2007). The presence of community protests near mine sites affects companies directly. The delay in operations causes immediate quantifiable costs. The decrease of shipped production impacts stock market share values and causes extra expenditure on specialized personnel recruitment, such as consultants, lawyers and security personnel (Cabrera, 2005). Companies can be affected by mining conflicts at any stage of the life of a mine. The unsuccessful negotiations undertaken by Manhattan Minerals during the proposed development in Tambogrande cost the company $61 million (Oxfam America, 2009). In May 2005, BHP Billiton assumed daily losses of $1 million when local communities caused the suspension of activities at the Tintaya mine (Cabrera, 2005). Yanacocha, on the other hand, had to pay $16 million for the Choropampa incident (Veiga and Hinton, 2000) and lost the opportunity to expand into Cerro Quilish, where 3.7 Moz (BNA, 2004) of proven and probable gold reserves could have contributed to the assets of the company. In addition to the quantifiable costs caused by the development of conflicts around mining projects, companies also face the impacts that these events have on corporate image (Cabrera, 2005; Botin, 2009). The overall insecurity perceived also leads to an increased number of environmental and socially related claims, creates uncertainty about land tenure, delays the approval of permits and challenges access to new resources (Botin, 2009). Local communities, along with regulators and other stakeholders, have the option to confer or deny companies the social license to operate, which is basically granted based on company performance (Department of Resources, Energy and Tourism: Commonwealth of Australia, 2008). Mining conflicts can quickly impact the acquisition/retention of the social license to operate and can cause the loss of social capital. Boutilier (2009a) defines social capital as the 17  intangible asset that links companies and communities, which is ideally based on solidarity, cooperation, transparency and trust. Boutilier (2009b:406) also affirms that “even if takes up company resources [to build social capital] it takes less than dealing with uninformed, dysfunctional or cultural-shocked communities”. Assessing the Costs of Conflict Today, mining companies are required to comply with international standards and requirements such as the Equator Principles, an international voluntary code developed by the financial industry to encourage consideration of social and environmental issues when financing a project (Macve and Chen, 2010). Adherence to these principles requires proof of the development and implementation of management plans for environmental and social impacts in accordance with the standards of the International Finance Corporation (IFC). Planning and timely interventions are essential to make these management plans auditable and cost effective. Snashall (2010) considers that the increased complexity of mining projects calls for a renewed focus on the management of non-technical risks. Social disruptions are strategic risks that can potentially impact the long-term viability of the project (Department of Resources, Energy and Tourism: Commonwealth of Australia, 2008). Mining companies need to identify and quantify social risks. Quantification should lead companies to an effective risk management scheme that ensures that the wellbeing of employees and society are not compromised and that the financial performance and reputation of the mining company are protected, together with the social license to operate (Department of Resources, Energy and Tourism: Commonwealth of Australia, 2008). Mining companies have the choice to either manage threats in a timely fashion or react to them. In the case of non-technical risks, such as social conflicts, Cabrera (2005) affirms that assessing the cost of conflict is already a mechanism for preventing conflict. However, in addition to quantifying the risk, mining companies need to develop initiatives to properly address social risks at an early stage of the project, thereby reducing the likelihood of costly delays (Snashall, 2010).  18  2.4.2  Mining Employees as the Company-Community Link  Mining conflicts in Peru have spread over the last decade (APCSG, 2011). Cabrera (2005) affirms that to manage emerging conflicts in Peru, the participation of all actors (government, companies and communities) is required. The Peruvian government, at local and national levels, needs to strengthen its capacities, increase its accountability and transparency, and assume the responsibility of promoting the development of local communities (Kuramoto, 2004; EDC, 2008). Mining companies, on the other hand, need to put in place initiatives to strengthen company-community relationships. In Peru, most of the large and international mining organizations operating in the country, such as Newmont, Barrick, Buenaventura, Southern Copper or Free-Port McMoran, have already developed CSR policies and programs to support local communities or provide them with information about environmental and economic reports 4. However, the remote nature of mining heightens the significance to the surrounding communities of the actions of the mining organization, particularly the interaction between mining employees and local communities. Employee-Community Interactions Mining conflicts emerge due to various economic, environmental and social concerns related to the development of new mining projects. However, Arellano (2008) states that there are other motivations behind conflicts surrounding existing mines. The author points out that when mining companies evaluate expansion projects, local communities prepare a different negotiation process (Arellano, 2008). The companies’ need for additional land and water in expansion projects appears to communities as an opportunity to become active actors and to claim the fulfilment of previous promises. The renegotiations that follow will be affected by the community’s sense of grievance regarding previous land transfer agreements and economic demands. Nonetheless, Arellano (2008) adds that community experiences with the derogatory behaviour of managers, miners and other mining actors will also have an impact.  4  As stated in the web pages of the companies mentioned.  19  Kuramoto (2004) suggests that mining companies tend to overlook the fact that the deterioration of relationships with communities can originate from the way relationships are conducted at the individual level. Poor communication, misguided policies and organizational failures can degrade the corporate reputation, affect the credibility of the organization and ultimately the social license to operate can be eroded (Lafuente, 2009). Botin (2009) affirms that the social license to operate ultimately depends on individual ethics, and that the behavior of the employees will usually be considered as a reflection of the ethics of the company as a whole (Botin, 2009). However, Export Development Canada (2008) considers that it is also important for leaders of organizations to get involved in building personal relationships with local communities. On the matter of management and leadership, Nord and Fuller (2009) added that if organizational leaders encourage employees to work for small gains in socially responsible actions, and to take action where and when the opportunity to strengthen the relationship occurs, gradually major beneficial outcomes may result. Rees (2009), in the Report of International Roundtable on Conflict Management and Corporate Culture in the Mining Industry, concluded that company staff needs to interact with communities and that commitment at the top and middle management levels is required. The report affirms that, overall, managers do not recognize the links between conflict management and company reputation and social license, and that community relations functions in mining companies often find themselves marginalized. The report concluded that to change the panorama “at root, the answer seems to be in focusing on getting the right skillsets and giving the right training” (Rees, 2009:10). Hilson and Murck (2000) add that for a mine to operate according to organizational goals of sustainability, the personnel need to be educated. Ednie (2004) argues that mining employees need the necessary assistance to develop the skills required to work with and share knowledge with people from different cultures and backgrounds. Meanwhile, Freeman and Miller (2009) concluded that any aspect of Human Resources Management will have a direct or indirect impact on the reputation of the company and the perception of communities regarding the company.  20  Mining Employees as Sources of Information Mining employees play an important role in the obtaining and retaining of the social license to operate (Freeman and Miller, 2009). Poor employee-community interactions can exacerbate the tensions between companies and local communities (Kuramoto, 2004; Arellano, 2008; Elizalde et al., 2009; Lafuente, 2009). However, mining employees also adopt the role of cultural interpreters. A deeper understanding of the employee base (usually locally hired) can result in a better understanding of the community itself (Kapelus, 2002). This is especially important in Peru where acknowledgement of cultural differences is critical for mining companies (Gouley and Kuramoto, 2007). Mining employees constitute key feedback sources of information (Freeman and Miller, 2009). Botin (2009) represented graphically Freeman and Miller’s concept of mining employees as the link between companies and communities (Figure 2-3). Mining employees can potentially provide companies with opportunities and information needed to strengthen company-community  relationships  and  improve  employee-community  interactions.  However, in Peru, opinions of mining employees on the matter have not been previously recorded.  Figure 2-3: Employee Interface after (Botin, 2009:145) based on (Freeman and Miller, 2009) 21  2.4.3  Literature Review Summary  The Peruvian mining industry is one of the largest in the world. However, the proliferation of company-community conflicts could limit the long-term viability of the Peruvian mining industry. Mining conflicts have increasingly emerged over the last decade, involving the Peruvian government, local communities and mining companies. Local communities oppose the development of mining projects due to various economic, environmental and social concerns. The Peruvian government has not been able to effectively redistribute to local communities the economic benefits generated by the mining industry. Mining companies operating in Peru have made mistakes in their relationships with surrounding communities and are now required to comply with notions of sustainability, sustainable development and corporate social responsibility. Nevertheless, there is too often a deep misunderstanding between communities and mining companies in Peru. Companies need to engage communities differently and develop initiatives to strengthen companycommunity relationships that have also been affected by the way mining employees interact with local community members. Mining employees need the necessary assistance to develop the skills required to work with and share knowledge with people from different cultures and backgrounds. Any aspect of Human Resources Management will have a direct or indirect impact on the reputation of the company and the communities’ perception of the company. Mining employees play an important role in obtaining and retaining the social license to operate. Even when poor employee-community interaction might have exacerbated the tensions between companies and local communities, mining employees represent the link between mining companies and local communities and constitute a key feedback source of information. Mining employees can potentially provide companies with opportunities and information needed to strengthen company-community relations and improve employeecommunity interaction. However, in Peru opinions of mining employees regarding companycommunity conflicts have not been previously recorded.  22  CHAPTER 3.  RESEARCH APPROACH  3.1 Rationale behind Research This research aimed to explore some of the factors behind the conflicts that are continuously emerging between mining companies and local communities in Peru. The literature review showed that there are three actors involved during the development of conflicts in Peru: the Peruvian government, local communities and the mining companies. The researcher explored the problem from a mining industry perspective. She considers that while mining companies do not have authority over the Peruvian government or local communities, mining companies can try to change what might be wrong inside their own organizations and which might be contributing to the development and escalation of tensions. In an effort to find company initiatives that could build better relationships with local communities, the researcher began by exploring just one of the sources of the escalation of tensions: poor employee-community interaction. In the Peruvian mining industry, poor employee-community interaction has affected company-community relations. The researcher sought to determine the effectiveness of training to improve employee-community interaction. However, this research included only the opinions of mining employees in an effort to also explore the opportunities presented by mining employees as the link between mining companies and local communities. Through a qualitative approach, the researcher aimed to reach a better understanding of mining conflicts in Peru and to gather recommendations about company initiatives that could improve company-community relationships.  3.2 Research Approach For this research, a qualitative approach was selected. This research gathered and explored the opinions of mining employees regarding the initiatives they consider necessary for improving employee-community interaction, and mining company-community relations in Peru. A qualitative approach provided the researcher with detailed narrative descriptions and an in-depth analysis of complex human and cultural experiences (Tashakkori and Creswell, 2008; Castro et al., 2010). Qualitative methods, especially in human resources 23  research like this, reflect external realities that are situational and culturally specific, searching for an overall understanding of what is contextually unique and why (Kiessling and Harvey, 2005). 3.2.1  Theoretical Framework or Interpretative Paradigm: Critical Theory  A theoretical or interpretive framework refers to the “basic set of beliefs that guide action” (Guba, 1990:17). Research is interpretive and is guided by the researcher’s “set of beliefs and feelings about the world and how it should be understood and studied” (Denzin and Lincoln, 2000a:19). A critical theoretical framework involves the application of these principles and values in research, in order to make judgments for the purpose of producing practical, reasonable knowledge and bringing positive change (Seiler, 2006). Critical theory in organizational studies seeks to create workplaces where members have the opportunity to contribute to the production of systems that meet society’s needs and lead to the development of all (Ogbor, 2001). Critical theories apply to multiple fields of research. A critical theory must be explanatory, practical and normative (Horkheimer, 1982). Critical theory seeks to explain what is wrong with current social reality, identify the actors to change it and provide both norms for criticism and achievable goals for social change (Bohman, 2010). This research explored factors behind mining conflicts in Peru. Three actors are recognized as involved during the development of conflicts in Peru: the Peruvian government, local communities and the mining companies. The researcher explored the problem only from a mining industry, perspective in an effort to define company initiatives that could build better relations with local communities. This research explored the role of employee capacity-building in reducing companycommunity conflicts. Lappe and DuBois (1994) described capacity building as the enhancement of problem solving. The researcher aimed to interview mining employees based on her belief -supported by the literature- that mining employees are the link between companies and communities, and that based on their experience they can provide recommendations to promote a change in the current mining reality. The researcher sought to gather recommendations and also to formulate her own, in the belief that the mining industry 24  can contribute to the development of Peru and that mining companies should try to change what is within their ability to change. 3.2.2  Research Design and Strategy of Inquiry: Constructivist Grounded Theory A critical theory or paradigm allows the researcher to design research in a flexible way.  The strategy of inquiry comprises the skills, assumptions and actions that the researcher uses in moving from a paradigm and a research design to the collecting of data (Denzin and Lincoln, 2000b). The strategy of inquiry selected for this research is a constructivist grounded theory. A grounded theory approach is inductive and explanatory. Through grounded theory a researcher seeks to tell a story about people, social processes and situations, and to understand what is happening and how players manage their roles (Glaser and Strauss, 1976; Charmaz, 1983; Glaser 1992, 1994; Strauss and Corbin, 1998). A constructivist approach in grounded theory recognizes that the narrowing of research questions and the creation of coding and categories emerges from the interactions of the researcher within the field and primary sources (Charmaz, 2000). Grounded Theory and the Researcher In a constructivist approach, the integration of data into a critical framework reflects what and how the researcher think, and what they do about collecting and analyzing data (Charmaz, 2000). It is therefore important to detail the background of the researcher. The author of this thesis belongs to a mining family that has always been actively involved in the development of mining projects in Peru. She has also worked at a large mining company in Peru. The author is proud of being Peruvian and deeply values her culture. She also considers herself fortunate to have had the opportunity to experience the benefits that the mining industry can provide to a developing country. 3.2.3  Method of Data Collection: Interviews  The application of structured interviews was chosen as the method to collect data. In structured interviewing, the researcher asks the same series of pre-established questions to all the key informants. Structured interviews or surveys include a limited set of response 25  categories with some open-ended questions (Fontana and Frey, 2000). Open-ended questions provide in-depth descriptions. The analysis of descriptions can show patterns and common themes which might corroborate previous findings and published literature. It can also determine factors that explain discrepancies which might occur (Berkowitz, 1996). To explore the opportunities presented by mining employees, only professionals working at mines in the Peruvian mining industry were selected as key informants. Mining employees are the link between companies and communities. They can potentially provide recommendations about feasible initiatives to reduce the escalation of company-community tensions. Critical theorist Habermas (1979) claims that it is the interpersonal situation experienced (in this case employee-community) which provides the necessary context for informed opinion. Interview Details As part of the research approach, a questionnaire with 14 questions was prepared. The complete questionnaire has been attached as Appendix 1, in both English and Spanish. The first three questions were included to determine the profile of the participants (department, years of experience and position). Participants were then asked to rate the overall relationship between their company and local communities. In order to provide a better understanding of the Peruvian mining industry, the statements made in March 2009 by Oxfam America in a report entitled “Mining Conflicts in Peru: Condition Critical” about the roots of conflict were included (Appendix 1 – question Nº5 and Nº6). Participants were asked to express their level of agreement with three statements about the three fundamental actors involved during the development of tensions: the Peruvian government, local communities and the mining companies. Participants were given different options to indicate their level of agreement with the statements made in this report, which has been widely publicized by the media. The statements were included to introduce a discussion regarding the relationship between poor employee-community interactions and the escalation of tensions.  26  In the next question participants were also asked if, for the purpose of strengthening relations with communities, training of mining personnel would be one of the most effective initiatives to improve employee-community interaction. Participants who selected training as one of the most effective initiatives were encouraged to comment on the kind of training they consider is needed. Those participants who did not consider training as one of the most effective initiatives were encouraged to comment on other potential effective initiatives to improve the interaction between mining employees and local community members. After evaluating the effectiveness of training, participants were asked about current training programs in community issues at their companies. Mining employees were required to rate the training (if existent) and provide recommendations to improve those training programs. Finally, participants were asked about the extent to which they believed training of mining personnel could improve overall employee-community relations. Selection of Key Informants The method of the study was to gather the opinions and recommendations of mining employees concerning mining conflicts in Peru and company-community issues. Only professionals (with a university degree or technical qualification) working in the Peruvian mining industry were contacted. The opinions and recommendations of employees without a university degree or a technical qualification (e.g. locally hired from local communities) are also an important source of information and should be considered in further studies. As this study was developed without the collaboration of any mining company or any visit to mine sites, it was difficult for the author to contact such employees. Mining companies do not publish the contact information of their staff. The researcher was able to obtain electronic mail addresses due to her personal background. Professionals known to the researcher or to family members were contacted to collect information from different mine sites, departments, and organizational levels. Some of the professionals initially contacted also suggested other professionals known to them to also participate in the study. As part of the requirements of the UBC Behavioral Research Ethics Board, an initial contact letter previously reviewed and approved by the board, was sent to potential 27  participants in the Peruvian mining industry, inviting them to participate in the study. Details of the study were included in the initial contact letter. It was explained to participants that if they agreed to participate, an interview would be arranged and be conducted over the telephone, and that it would last between 20 and 30 minutes. Potential participants were given the certainty that all data would remain confidential. 3.2.4  Data Analysis: Critical Discourse Analysis and Content Analysis  Grounded theorists want to understand social experiences. They seek to identify categories and concepts that emerge from data and understand their interrelationships (Palmquist, 1999; Ryan and Bernard, 2000). The interviews provided the data for this research and a critical discourse analysis helped define those concepts and categories needed to better understand the conditions behind the problem. Critical discourse analysis seeks to describe, interpret, analyze and critique social life reflected in text (Luke, 1997). It not only describes discourse structures, but tries to explain them (van Dijk, 2000). Through a critical discourse analysis it was possible to identify descriptors, categories and concepts that emerged from data collected through structured interviews. Meanwhile, a content analysis helped to organize those categories in an order. Content analysis is a data reduction technique that compresses large volumes of data into fewer categories using explicit rules of coding (Berelson, 1952; Holsti, 1969; Weber, 1990; GAO, 1996; Ryan and Bernard, 2000; Krippendorff, 2004; Stemler, 2001). Content analysis includes a wordfrequency count and assumes that the words or descriptors (including their synonyms) which are mentioned most often are the ones that reflect the greatest concerns (Stemler, 2001). There are a number of different software packages available to facilitate content analyses, such as NVivo or ATLAS.ti. Their use is dependent on the extent of the data as well as the context of the investigation. However, in grounded theory, computer-assisted analysis has been criticized, and it has been said (Coffey et al., 1996; Lonkila, 1995) that mechanical operations are no substitute for personal interpretative analysis. Therefore, given the number of participants who agreed to be part of the study (only 32) the decision was made not to use qualitative analysis software.  28  The information obtained from fixed or closed-ended questions was organized in tables, analyzed by the question number and, where possible, histograms were prepared. The inflexibility of closed-ended questions allowed the comparison of responses. On the other hand, some comments made by participants in open-ended questions are included in Chapter 4. It was considered important to include all the comments in English and Spanish in the Appendixes (5 to 12), given that the opinions and experience of professionals in the Peruvian Mining Industry have not been included in any previous study. The detailed content analysis applied to organize the major themes that emerged during the analysis of responses is included in Appendix 13 and summarized in Chapter 5. 3.2.5  Triangulation or Validation  Triangulation seeks to explain the complexity of human behavior by studying it from more than one standpoint (Cohen and Manion, 1986: 254). However, triangulation can also represent a means to a more detailed understanding of a situation (Altrichter et al., 2008: 147). As discourses can be interpreted differently by people with different backgrounds and knowledge, a single interpretation does not exist, but an adequate interpretation is possible (Wodak and Ludwig, 1999). For this research, structured interviews were used to gather information for the study and were then compared with primary data and existing literature as a mean to validate the data.  3.3 Experiences The complete survey was sent with the letter of initial contact, knowing in advance that, generally, professionals would not agree to participate in the study if they were not sure about the nature of the research, the questions, and the real time they were willing to take for the interview. Since the beginning of the research it was acknowledged that the approach of the research would face the limitation of potential participants not finding the topic interesting if it was not directly related to their area of expertise. Questionnaires were to be conducted through interviews in Spanish. However, participants preferred to complete the questionnaire in their own time. Potential participants were asked to reply to the survey electronically and then return it to the researcher. Only 4 29  surveys were completed as a telephone interview. Participants preferred to be sent the interview in Word or PDF and they would return it later with their responses. This method of data collection allowed the study to reach more professionals as they were able to complete the questionnaire in their own time without scheduling a meeting. It provided some straight forward responses. However, the researcher considers that an interview could have provided an opportunity to gather detailed stories that would have provided a deeper understanding of current challenges in the Peruvian mining industry. It was important to gather information from employees from different organizational levels. However, it was difficult to assure the participation of many managers with extensive experience in the industry. Many electronic mails were sent hoping for a response, with no success in some cases. Some of the professionals who responded to the emails and agreed to participate in the study suggested sending the survey to other professionals in their network. In particular, contacts at environmental departments from different mine sites suggested other professionals from their same area of expertise who might also complete the survey. The surveys from seven new contacts from environmental departments who decided to participate in the study were also included in the analysis. Some of the professionals contacted opted to directly forward the email to professionals at community relations departments with a copy of the message to the researcher, even when it was explained that the participation of professionals from different departments was desired. Some of these professionals at community relations departments decided to participate and their responses were also included in the study.  3.4 Data Limitations As many respondents opted to complete the questionnaire in their own time and return it later, the researcher did not have the option to interact with respondents and ask them to clarify their answers if needed. Nevertheless, the main limitation of this study is the translation. As the author of this document is Peruvian, the results of the surveys were translated and summarized in this document in an effort to accurately represent the views and  30  comments of the respondents. However, due to cultural differences, on occasion the intensity of comments or impressions is inevitably lost in translation. As part of the specifications and requirements of the UBC Behavioral Research Ethics Board; it was stated in the initial contact letter sent to potential participants that the purpose of the study was: “to determine, based on the opinion and experience of professionals working in the Peruvian mining industry; if training of mining personnel is one of the most effective initiatives to improve the interaction between mining company employees and members of local communities in Peru”. The provision of information could have skewed the results. As some of the participants were known to the researcher, their answers might be subject to a bias. The responses gathered in this document reflect only the opinions of mining employees with a university degree or technical qualification. The researcher did not have the opportunity to contact locally hired personnel (especially from local communities) without these qualifications. In some cases, participants suggested other professionals under their supervision who could also complete the survey. Some professionals agreed to participate in the study but as this was a suggestion coming from their managers, this could have affected their rating of the overall performance of the company. The number of completed surveys was low and conclusive claims cannot be made. The responses capture biases associated with the opportunity to fill out the survey only once and are subject to personal moods and thoughts, and interpretation of the survey questions at that particular time. The interpretations of interview data are also inevitably subject to the personal biases and experience of the researcher.  3.5 Research Approach Summary The study was centered on mining employees as the link between companies and communities. It was decided to contact mining employees (i.e. from different departments and positions) working in the Peruvian mining industry as key sources of information about mining conflicts in Peru.  31  A questionnaire was prepared as part of the research approach. The aim of the questionnaire was to obtain a Peruvian mining industry perspective on mining conflicts and the potential effects of employee-community interaction in the deterioration of companycommunity relationships. The evaluation of the effectiveness of training programs for mining personnel was included. This was based on the recommendations for mining companies found in the literature review, but also as a way to promote discussion on potential initiatives by mining companies to strengthen company-community relationships and avoid the escalation of tensions. A lack of interest in studies related to social and community issues on the part of professionals was observed. Sending the survey together with the initial contact letter made it more likely that a response would be received from the participants. Indeed, demonstrating from the start that the survey would not take much time to complete helped the study, but it also offered disadvantages, as some people contacted preferred to forward the invitation to colleagues at the community relations department, even when it was clearly stated that the participation of employees from every department was solicited. Surveys allowed the compilation of valuable information. The unplanned change in the approach of the research, from oral to written surveys, allowed the involvement of more participants, as they were able to manage their own schedule. Written answers were shown to be direct and honest, but during an interview participants might have shared more thoughts and experiences.  32  CHAPTER 4.  SURVEY RESULTS  Thirty-two professionals of the Peruvian mining industry agreed to participate in the study. These professionals are part of the staff of eight mine sites: four in northern Peru, one in central Peru and three in the south of the country. The mine sites included in the study have been developed by ten mining companies with an international presence.  4.1 Profile of the Participants The study includes the opinions and experiences of eight professionals from administrative departments including: human resources, finance, logistics, communications and business development and planning (table 4-1); six professionals from operations (including five employees working in mining/production and one geologist), eleven professionals from environmental departments and seven from community relations. For the analysis of responses, each participant was identified by a number, thereby ensuring the confidentiality expressed in the initial contact letter. Table 4-1: Departments and Number of Participants Included in the Study  Department 1 Business Development and Planning Human Resources 1 Administration Finance 1 Logistics 2 Communications 3 Production/ Operation 5 Operations Geology 1 Environmental 11 Community Relations 7 Total 32 The noticeable presence of professionals from environmental and community relations departments (Figure 4-1) is related to the factors mentioned in section 3.4. Participants initially contacted (especially from environmental departments) suggested other professionals at their department who might also complete the survey. As it was difficult to engage participants in the study, the surveys from the new contacts who decided to participate were also included in the analysis. In some cases, invitations to participate were directly forwarded 33  to professionals at the community relations department of the company. Some of these professionals decided to participate and their responses were also considered in the study.  Number of particpants  Departments included in the study 12 10 8 6 4 2 0  Series1  Administration  Operations  Environmental  Community Relations  8  6  11  7  Figure 4-1: Distribution of Departments Included in the Study  In question Nº2 (Appendix 1) participants were required to provide the number of years that they have been working in the Peruvian mining industry. The responses were classified in 3 different ranges (Figure 4-2). The initial aim was to gather the opinions of more managers with extensive experience in the industry. However, it was difficult to contact middle and upper managers or ensure their participation. Years of Experience Number of Participants  16 14  15  12 10  10  8 6  7  4 2 0  [0-5>  [5-10>  More than 10  Figure 4-2: Years of Experience in the Peruvian Mining Industry  In question Nº3 (Appendix 1) participants were asked to determine if their position required employees to report directly to them or not. Sixteen participants responded that they 34  have employees reporting to them and sixteen that they do not have personnel under their responsibility. An extensive classification such as senior management, upper management or front-line employee was not included, as each company operating in the country has its own way of identifying a position, in accordance with specific organizational cultures.  4.2 Employees Rate the Overall Company–Community Relationship Participants were asked to rate the overall relationship between the company and the local communities, specifying “local communities” as the communities located near mine infrastructure (mines, plants, buildings and along transportation routes of mines). Participants were given the option to rate the overall company-community relationship as excellent, good, average, poor or bad (Appendix 1 – question Nº4). Most of the participants identified the relationship between their company and the surrounded communities as average (Figure 4.3).  Overall company-community relationship 20 18 16 14 12 10 8 6 4 2 0 Series1  Excellent  Good  Average  Poor  Bad  0  11  18  3  0  Figure 4-3: Rating of the Overall Company-Community Relationship  35  4.3 Views on the Roots of Mining Conflicts To gather information about mining conflicts in Peru, it was decided to make reference in question Nº5 to the report published in March 2009 by Oxfam America (Appendix 1). The name of the publisher was not directly mentioned to avoid biases (many participants could consider this NGO as an organization opposed to mining activities). The question was introduced as: “In March 2009, an international relief and development organization published a document called “Mining Conflicts in Peru: Condition Critical”. The publication indicated that there are 3 main roots of the conflicts in Peru. Please indicate your level of agreement with the next statements…” Participants were required to choose their level of agreement with three (3) quotes extracted from the report (Appendix 1 – question Nº5). Five options from “strongly agree” to “strongly disagree” were given. The three quotes or “roots of conflict” given in question Nº5 were directly linked with each of the three principal actors confronted during the development of conflicts: the Peruvian government, local communities and the mining companies. The statements regarding the roots of conflict were included to introduce a discussion on the effect of employee-community interaction in the escalation of tensions, as well as to introduce a discussion on current or potential mining company initiatives for the management of company-community conflicts. Participants were not required to explain their responses to question Nº5. However, at the end of the survey respondents were given the option to express any additional comment. In the first quote included in question Nº5, it was stated that (according to an international relief and development organization) “local communities experience few benefits from mining revenues” (Appendix 1 – question Nº5). Participants were required to select their level of agreement with this statement. The results are presented in figure 4-4.  36  "Local communities experience few benefits from mining revenues" Number of Participants  12 10 8 6 4 2 0  Series1  Strongly Agree  Agree  Neutral  Disagree  Strongly Disagree  4  11  5  11  1  Figure 4-4: Level of Agreement with Root of Conflict 1  The analysis of responses showed that the same number of participants (11) who agreed with the statement that local communities experienced few benefits from mining revenues disagreed with the same quote. For the next statement, root of conflict 2, professionals were required to select their level of agreement with a statement that criticized the performance of the government (including national, regional and local) during mining conflicts (Appendix 1 – question Nº5). Figure 4-5 shows the results.  Number of Participants  “The Peruvian government lacks the capacity to regulate the industry, manage local conflicts, and redress grievances” 20 15 10 5 0  Series1  Strongly Agree  Agree  Neutral  Disagree  Strongly Disagree  12  19  1  0  0  Figure 4-5: Level of Agreement with Root of Conflict 2  Out of the 32 people interviewed 97% of participants either agreed (19) or strongly agreed (12) with the statement. Only one participant from an Environmental department 37  qualified the same statement as neutral. Finally, the third quote, or root of conflict Nº3, referred to the responsibilities of mining companies in the development of conflicts with local communities. Participants were required to select their level of agreement with the statement made by Oxfam America suggesting that mining companies have made serious mistakes in their relationships with local communities (Appendix 1 – question Nº5). The summary of responses is represented in Figure 4-6.  Number of Participants  “Mining companies have made serious mistakes in their relationships with local communities” 18 16 14 12 10 8 6 4 2 0  Series1  Strongly Agree  Agree  Neutral  Disagree  Strongly Disagree  10  16  5  1  0  Figure 4-6: Level of Agreement with Root of Conflict 3  Sixteen participants (50%) agreed with the statement. Ten out of the 32 mining employees consulted expressed they “strongly agree” with the quote. Five people held a neutral opinion and only one participant from a Communication department disagreed with the statement. As mentioned before, to limit the scope of the research participants were not required to explain their responses to question Nº5. However, subsequent questions did encourage respondents to share their experiences and comments.  4.4 Ensuring the Appropriate Personnel: the Employee Perspective For the next question of the survey, question Nº6, the study also made reference to the same publication prepared by Oxfam America (see Appendix 1). The question was introduced to participants, commenting that the same organization that made the statements in question Nº5 also provided urgent recommendations for the Peruvian government, mining companies, international donors and civil society to break the cycle of conflict. Also included 38  among the recommendations for mining companies was the suggestion by the international relief and development organization that companies should: “Ensure that appropriate personnel are in place. In a number of situations, the attitudes of company employees have exacerbated the tensions between companies and local communities. Companies should screen employees to ensure that they hire only those who are fully committed to building positive relationships with communities. This is particularly important for personnel who deal directly with communities on a regular basis”. Participants were asked to select their level of agreement with the statement. The same scale as in the previous question was used (Appendix 1 – question Nº6). The results are represented in Figure 4-7.  Number of Participants  "Ensure that appropriate personnel are in place" 16 14 12 10 8 6 4 2 0 Series1  Strongly Agree  Agree  Neutral  Disagree  Strongly Disagree  15  13  3  1  0  Figure 4-7: Level of Agreement with Statement in Question N°6  The quote in question Nº6 was included to promote discussion on the effect that employee-community interaction might have in the escalations of tensions. It was considered that employees could react defensively and argue that mining personnel are not responsible for company-community conflicts. However, 15 participants strongly agreed with the quote, while another 13 also agreed with the statement. This was the only quote that the majority of participants “strongly agreed” with. Participants were also requested to briefly explain their answer.  39  Appendix 2 presents the comments made by the participants to explain their answers in question Nº6. The reader is encouraged to review the comments. The comments gathered show that the majority of participants recognize that employees are the link between the company and local communities. One participant affirmed: "All the employees in the mining units, in one way or another, frequently interact with local communities. They represent an "individualized image" of the company". (Participant from Community Relations Department, 4 years of experience)  The importance of interpersonal relationships was discussed. As stated by a participant: "The relationships with the communities are based on the perceptions these communities have of the company. That perception is developed based on their direct experiences with mining employees". (Participant from Environmental Department, 3 years of experience)  Comments also included the importance of the appropriate treatment offered to communities. Though one participant mentioned the case of contractors and explained that employees from outsourcing companies also need fair treatment. It was mentioned many times that appropriate behaviour and positive attitudes are required to build better companycommunity relationships and, also, that knowledge of and respect for the culture, traditions and idiosyncrasies of the surrounding communities are essential for building better relationships with local communities and to avoid feelings of rejection towards mining companies. Even when in question Nº6 the majority of participants strongly agreed with the statement, seven people answered the question as if the statement were only applicable to personnel at community relations departments. It was explained that the problem is related to inadequate recruitment of employees for these positions. It was suggested that for positions at community relations departments, professionals from the areas of influence should be hired. It was also claimed that community relations departments must include qualified personnel who understand the thoughts and habits of the surrounding communities, have adequate communication skills, and are capable of effectively engaging with communities. On the 40  issue of the qualifications needed by professionals at community relations departments, one respondent commented: "I agree that companies should hire people with skills to deal and engage with communities effectively. Those people are an important and basic component of the relationships with the communities. However, this does not mean hiring people who will always agree with the demands of the communities. We need people who can handle these cases and have the courage to say NO to unfounded requests". (Participant from Environmental Department, 10 years of experience)  Another participant added: "The task of dealing with local communities should be assigned to qualified personnel in Community Relations. It should not be improvised since it has caused irreparable mistakes in the past. Often there is no adequate recruitment for this department. Some employees hold arrogant attitudes that impede communication and promote conflicts". (Participant from Communications Department, 1 year of experience)  On the other hand, a participant from a community relations department refuted these views mentioning that: "Mining companies still need to internalize the concept that the relationships with the communities and the attention to social policies are not only the responsibility of the Community Relations Department but of the entire organization". (Participant from Community Relations Department, 7 years of experience)  Comments were also made regarding problems of organizational cultures and attitudes of the top management. It was suggested that supervisors and managers should have the capacity to negotiate with communities, and the social skills needed to successfully manage conflicts. Only three participants mentioned that the problem lays with other stakeholders, such as the Peruvian government and its inability to effectively promote mining benefits, the local communities and their complaints about the distribution of benefits, and the disinformation campaigns faced by mining companies but originated by political groups and NGOs.  41  4.5 Training as an Initiative for Improving Employee – Community Interactions Is training of mining personnel one of the most effective initiatives to improve the interaction between employees of the mining company and members of the local communities? Based on the success that the implementation of training programs has had in addressing concerns such as safety, health or equipment maintenance; in the next question (Appendix 1 – question Nº7) participants were asked if, for the purpose of strengthening relations with communities, training of mining personnel would be one of the most effective initiatives to improve employee-community interactions. The question was not stated as “is training the most effective initiative?” to avoid leading participants in their answers and to leave the opportunity to gather information about other potential initiatives for the improvement of employee-community interactions and the strengthening of companycommunity relations. Twenty-four (24) or 75% of the respondents considered training of mining personnel as one of the most effective initiatives to improve employee-community interactions (Figure 4-8). Is training as one of the most effective initiatives? No 25%  Yes 75%  Figure 4-8: Training as One of the Most Effective Initiatives  Respondents were required to explain the reasons why they considered training should or should not be the initiative undertaken by mining companies to avoid the escalation of tensions. Statements are listed in Appendix 3. The codes of the participants who chose not to make a comment were excluded. 42  Overall, employees commented that training is necessary to build capacities, and to promote values, ethics and appropriate behaviour. It was mentioned that training can promote employee commitment and raise awareness of the fact that mining activities need to be undertaken in collaboration with the community and in order to achieve mutual benefits. It was explained that through training, employees would be able to effectively interact and negotiate with local communities and would be able to explain mining activities, beginning with exploration, to their members (thereby avoiding the development of high and unrealistic expectations). One participant added: "Training is essential. Explorers are the first ones to be in contact with local communities. Therefore, they must be able to give basic explanations about the exploration work. Moral behaviour must be impeccable, respect and honesty must be demonstrated. Local communities have strengths and weaknesses that personnel must be aware of, in order to develop a better company-community relationship". (Participant from Geology Department, 22 years of experience)  Other participants remarked that training is essential not only for those working in community relations departments, but for all employees who interact daily with local communities, including contractors. "Community relations are also affected by employees' behaviour. Their behaviour should be aligned to the community relations policy of the company. Initiatives of mining companies should not only include the areas directly involved, but the entire company". (Participant from Logistics Department, 10 years of experience)  However, it was also argued that training should also be provided to the surrounding communities as a way to build capacities in different issues. On the other hand, respondents who did not consider training as one of the most effective initiatives to improve employeecommunity interactions claimed that: "…training (understood as seminars and courses) does not have the same impact as actions in the field. Training should be in the field, building relationships directly". (Participant from Environmental Department, 11 years of experience)  43  It was stated that training would be effective only if applied, if experiential (not technical) and if focused on internalizing values. Strong comments were also included affirming that training does not apply to interpersonal relationships and that training is an initiative focused on improving the image of the company and not the company-community relationships. 4.5.1  If Yes, What Would Be the Training Needed?  What would be the training needed by the mining personnel to improve the interaction between employees of the mining company and members of the local communities? For those participants who considered training as one of the most effective initiatives to improve employee-community interactions; question Nº9 (Appendix 1) encouraged them to comment on the kind of training that they consider, based on their opinion and experience, is needed to strengthen the relationships between mining employees and local communities. Information gathered in this question has been detailed in Appendix 5. Table 5-2 summarizes the topics which participants consider should be included in a training program for mining personnel. Table 4-2: Potential Topics for a Training Program  Topics for training  Codes of ethics: Reinforce appropriate behaviour and attitudes.  Cultural Awareness and Sensitivity  Effective communication, cross-cultural communication and communication for development.  Promote organizational culture and values  Explain mining activities  Promote environmental policies, community relations policies and corporate social responsibility  Negotiation strategies and conflict management  Social skills  Leadership  44  The comments showed that it is acknowledged that mining employees need to recognize the importance of building positive relationships with local communities. As affirmed by a participant, there are very good professionals in mining. However, poor interaction is harming company-community relationships as many conflicts in mining are occurring at an individual level. Respondents recommended training related to ethics, attitudes, values and appropriate behaviour. It was added that companies need to: "Develop codes of ethics and promote more interaction with the communities. Emphasize that even if community members are not technically skilled people (but often working in specific jobs under the guidance of mining employees), they are not people to take advantage of. In the end, local communities have the last word in granting the social license to operate. Their treatment should be fair from the first contact". (Participant from Environmental Department, 5.5 years of experience) "…in addition to training, workshops should be implemented to strengthen human capacities (values) and emotional intelligence. Many of the conflicts in mining occur at an individual level. Support and encouragement at a personal level is needed" (Participant from Communications Department, 1 year of experience)  Participants recommended that training should be focused on developing emotional intelligence encouraging fair treatment and tolerance towards others and promoting positive interactions with local communities. The need to promote topics related to community relations, corporate social responsibility, and environmental management among all employees was also expressed. Nevertheless, it was also suggested that training should consider the culture, needs, feelings, interests, traditions and perspectives of the community. Participants mentioned the importance of capacity building in topics related to crosscultural communication (to effectively transfer ideas and messages), conflict management and negotiation strategies. The importance of encouraging skills such as leadership was also considered. One participant mentioned that companies should encourage volunteering to work with communities. However, it was commented that training should also be given to local communities to increase awareness about responsible mining activities, and to help 45  them build capacities that could strengthen company-communities relationships through positive interpersonal relationships. 4.5.2  If No, What Would Be an Effective Initiative?  What would be an effective initiative to improve the interactions between employees of the mining company and members of local communities? Those participants that did not consider training as one of the most effective initiatives were encouraged to comment on other potential effective initiatives to improve employeecommunity interaction (Appendix 1 - question Nº8). The different initiatives recommended by participants are listed in Appendix 4. Participants recognized that besides the need to urge the Peruvian government to promote and ensure community development, companies also need to implement initiatives that could help strengthen their relationships with local communities. Many participants who did not consider training as an effective initiative mentioned that companies should promote respect for the culture of surrounding communities. It was expressed that to avoid conflicts, companies need to demonstrate trustworthiness, fulfilling the promises made during company-community negotiation processes. On the issues of negotiation and conflict management, one participant commented that companies should: "Improve levels of communication when dealing with complaints and claims... Be transparent and not make promises that cannot be met". (Participant from Environmental Department, 10 years of experience)  As an alternative initiative it was suggested that companies should promote employee engagement in community development, particularly through volunteering. As a reflection, it was affirmed that in order to be more effective, initiatives should involve both company and community and develop relationships of mutual cooperation. Mining companies should work with the community in the development of plans that address community needs. "A major initiative is to promote the engagement of different areas of the company in the development of the communities. E.g.: the construction of a school. Participating actively in this task, I believe, creates more awareness and creates a bond with the community". 46  (Participant from Finance Department, 2 years of experience)  Finally, it was also suggested that it would be important to promote community visits to the mine site, promote responsible mining activities and provide support to local communities through the transfer of key technical knowledge (ex. environmental concepts).  4.6 Current Training in Mining Companies After evaluating the effectiveness of training to improve employees-community interaction, participants were asked if their companies were currently providing training to mining personnel to improve the interaction between employees of the mining company and members of local communities (Appendix 1 – question Nº10). The results are presented in figure 4-9. The majority of the participants (22 out of 32) indicated that their companies are currently providing training to mining personnel to improve employee-community interaction. It is worth mentioning that in some cases, participants from the same mining company disagreed on whether or not there was a training program in place. Based on further investigation and personal experience it can be mentioned that some companies in Peru offer orientation sessions that include community related issues. These workshops could have been considered by some participants as “training programs” which could explain the difference in opinion among employees from the same company. Does the company provide training in community related issues? Not sure  5  No  5  Yes  22 0  5  10  15  20  25  Figure 4-9: Existing Training in Community Related Issues  47  Participants who affirmed that their company provided a training program were requested to specify the kind of training mining personnel received (Appendix 6). It was stated that training includes topics related to community relations, corporate social responsibility, and codes of ethics. In some companies participants affirm that they are provided with information about local community social and political structure and that there are also initiatives in place to promote capacity building in issues such as leadership, effective communication, conflict management and negotiation strategies. It was mentioned that training related to community issues is included in the initial induction session and that in general training programs are focused on promoting respect towards local communities and their traditions. The kind of training currently implemented in mining companies appears to be adequate, given that the topics included in these programs are also the ones which participants selected as necessary. However, participants were also asked to rate current training and give recommendations on changes that should be considered. 4.6.1  Rating the Current Training Programs  Those participants who affirmed that their companies have a training program in place were asked to rate the effectiveness of that training to improve the interaction between employees of their company and members of the surrounding communities (Appendix 1– question Nº11). The scale given for the rating and the results obtained are presented in Figure 4-10.  Number of Participants  Effectiveness of the existing training programs 10 9 8 7 6 5 4 3 2 1 0  Series1  Excellent  Good  Average  Fair  Poor  1  9  8  1  3  Figure 4-10: Rating the Effectiveness of the Existing Training Programs 48  The results show that participants believe the training provided by mining companies is good or average, overall. However, it should be remembered that four people from community relations departments and one from communications rated the training as good. These opinions should be considered as potentially in conflict, given the fact that in some companies those professionals are actively involved in the development and implementation of such programs. On the other hand, it should also be considered that the study includes the opinions of employees working under the supervision of participants initially contacted. This situation could have affected their overall rating of the performance of the company. 4.6.2  Improving Current Training Programs  In the next question, participants were given the opportunity to express their recommendations to improve the current training programs provided by mining companies (Appendix 1 – question Nº12). Appendix 7 details the advice given by participants to mining companies. Among the recommendations, it was mentioned that companies need to pay attention to the subjectivity with which conflicts and community relations may have been presented. It was expressed that often the people in charge of training come from different contexts and are not actually aware of the reality of the communities. Content was considered too rigid, and it was advised that training should be flexible and applicable to local realities. It was mentioned that training programs lack continuity and that companies should: "Show more results that could be obtained from good relationships between companies and communities, as a form of motivation". (Participant from Finance Department, 2 years of experience) "Make it more experiential. With the assistance of the Community Relations department, each area should be in charge of a community development project. Each department would then rotate its personnel to see how each project is being developed. It is extremely important to understand the community, but it is equally important that communities understand mining  49  activities. Therefore, they should also visit the mine. Only from mutual understanding can a horizontal communication can be achieved". (Participant from Environmental Department, 11 years of experience)  It was also stated that the problem was still rooted in the lack of employee commitment to social issues and the inappropriate attitudes of some employees towards local community members. The importance of management commitment to community related issues was highlighted. One participant suggested that: “Training should be given by each of the heads of the different departments of the mining unit. It is necessary to engage the heads of each department to demonstrate a commitment at all levels”. (Participant from Community Relations Department, 4 years of experience)  It was also stated that, as a way to create awareness in mining employees, companies need to promote the Social Responsibility and Resource Management policies developed in the areas of influence. Despite the current Codes of Ethics adopted in almost all companies, employees continue to refer to the need for broad training that includes human aspects such as attitudes, values and social skills. The need for reinforcing interaction with the communities has been repeated through different questions. Participants also suggest that mining employees should get involved with the local culture and its traditions. "In my experience, I would reinforce the interactions with the communities. Engage employees with the local culture, customs and festivals. A better understanding of how the community works and lives would make employees have more consideration and respect towards the entire community and its members". (Participant from Environmental Department, 5.5 years of experience)  On the other hand, it was suggested that training must be more experiential, through the organizing of visits to local communities and by involving employees in community development projects. Nevertheless, it was equally suggested that training should also be provided to community members and their leaders. It was considered that it is also important for communities to understand mining activities and to have the opportunity to visit the mine.  50  4.7 Views on Improving Employee – Community Relations through Training In question Nº13 participants were asked about the extent to which they believed that the training of mining personnel could improve overall employee-community relations (Appendix 1 – question Nº13). Five options were presented ranging from “to a very great extent” to “to no extent at all”. Results have been summarized in figure 4-12.  Number of Participants  To what extent could training improve the relationships 18 16 14 12 10 8 6 4 2 0  Series1  To a very great extent  To a great extent  To some extent  To a very little extent  To no extent at all  9  17  5  1  0  Figure 4-11: Rating of the Potential of Training  The results show that the majority of participants consider training for mining personnel could improve relationships with local communities to a great extent. Participants affirmed mining companies in Peru need to implement initiatives to avoid the escalation of tensions. Despite the ratings given to overall company-community relationships and training programs, respondents suggested that changes are still needed (Appendix 8). Comments included responses that affirmed conflicts will continue to emerge while governmental institution do not meet expectations or while pre-existing factors are not managed. However, it was recognized that mining employees must be active actors in the day-to-day strengthening of company-community relationships. "Mining employees must understand that they are part of the balance that must exist between the company and communities. They must be active actors in the daily improvement of relationships". (Participant from Operations Department, 5 years of experience) 51  As stated by a participant, mining employees are “in the eyes of the local people, the face of the company”. It was acknowledged that arrogant attitudes and inadequate behaviour of employees can affect company-community relationships. One respondent affirmed: "If personnel are adequately trained in values and respect, they will start recognizing local communities as complementary to the development of mining activities and not as an obstacle". (Participant from Operations Department, 3 years of experience)  Two comments reflected the discrepancy in opinions noticed throughout the analysis of responses. While one participant affirmed that all mining employees need training as interaction between community members and technical staff is often more frequent and of greater impact than community interaction with specialized personnel, another participant clarified that training is only needed for employees who are required to interact with local communities. As in previous questions, participants commented on the need to stay in touch with local communities through visits and fieldwork; and on the importance of helping employees understand the local reality through training. It was also mentioned that adequately trained personnel could recognize the potential of local communities as strategic partners for the development of mining activities. To mining companies, participants suggested that effective grievance mechanisms, ongoing dialogue and transparent negotiations should always be in place. It was suggested also that: "Training could help develop appropriate stakeholder management work and reach a better understanding of the social context of the operations. This will encourage the implementation of better strategies for preventing crises and managing conflicts". (Participant from Community Relations Department, 7 years of experience)  Nevertheless, participants considered that community members also need support through training to avoid been influenced by people with personal agendas. Finally, it was mentioned that training could give a "human face" to large mining corporations, as long as it is not an initiative designed only to improve the image of the company.  52  4.8  Additional Comments of Participants The last question of the survey was included to let participants express any additional  comment or recommendation (Appendix 1). The comments gathered in question Nº14 are listed in Appendix 9. The additional comments included reflections on the effect of daily interaction on the escalation of tensions. The need for appropriate recruitment was discussed. As mentioned by a participant, there are many outstanding people in mining companies but the fundamental problem remains that of human capacities. It was suggested that it is necessary to internalize the concept of respect for the culture, traditions and social aspects of the local communities. It was added that conflicts are also originated by the ineffective redistribution of mining royalties by the Peruvian government, and by the lack of organization of local communities (or the personal interests of some of their leaders). However, it was considered that training, not only for employees but for community members, could give communities the tools to redefine their needs and be able to aspire to real benefits. The importance of community capacity building was considered in the comments, but also the need to recognize the valuable resources of communities so that ultimately both the companies and communities could cooperate with each other. "The relationships between mining companies and local communities are based on human relations that should be based on respect. Mining companies must not lose track of where they want to go or what they want to do regarding their participation in the development of the community. Often, mining companies mistakenly believe "they have all the solutions". Communities have many valuable resources (tangible and intangible) that can be much more effective in the process of finding solutions for many of the company-community problems". (Participant from Community Relations Department, 7 years of experience)  Finally, it was recommended that it be recognized that cases are site specific and that initiatives should be applicable to a specific local reality. As stated by a participant: "There are no fixed solutions or magic recipes. What works in a given context can be disastrous in another". (Participant from Environmental Department, 15 years of experience) 53  4.9 Survey Results Summary The majority of respondents considered that the Peruvian government lacks the capacity to regulate the industry, manage local conflicts, and redress grievances. Participants also agreed that mining companies have made serious mistakes in their relationships with local communities, and acknowledged that in order to reduce conflicts personnel must be committed to building positive relationships with communities. Participants recognized the responsibility of employees in the escalation of tensions and accepted training as a valid initiative to build the capacities needed to improve employee-community interaction. However, participants suggested that modifications are needed to existing training. Participants recommended that companies should focus on broad training, including human aspects such as attitudes, values and social skills. Training must be flexible, applicable to local realities, evaluated periodically and must be supported by the top management. Training must also be more experiential, encouraging employees to get involved with the local culture and with community development projects. However, respondents considered it is also equally important to provide training to local communities and build capacities in community members and their leaders. However, overall 30% of the participants who answered the survey considered that the task of building good relationships with local communities applied only to those at the community relations department, because, in their view, they are the only ones who interact with local community members.  54  CHAPTER 5.  DISCUSSION  5.1 Major Themes Emerging from data Mining employees who agreed to participate in the research were asked to respond to questions about mining conflicts, employee-community interactions, company initiatives and the potential of training to improve employee-community interactions. To reach a better understanding of mining conflicts in Peru, and to determine initiatives to strengthen company-community relations, a critical discourse analysis and a content analysis of the data survey was applied. Through critical discourse analysis it was possible to recognize descriptors and define categories or themes emerging from the text. The major themes that emerged during the analysis of responses were organized through a content analysis based on the words (including synonyms) frequently mentioned in the comments. For example words like values, attitudes or behaviour were selected as descriptors and classified under the category “ethics”. Similarly, six other categories were determined. Categories were interrelated. Most of the time, each comment included different descriptors and belonged to more than one category. Table 5-1 details some of the descriptors used for each category defined. Table 5-1: Descriptors and Categories Assigned Descriptor Values, attitudes, behaviour, arrogance  Category Ethics  Interact, deal, communicate, talk, explain, listen, social skills  Interpersonal Relationships  Community Relations Department: role, performance, challenges, recruitment, personnel, qualification  Community Relations Department  Organizational Culture and Values, Top Management Performance, Policies, Leadership, Motivation  Corporate Culture  Conflict management training, negotiations, communication, transparency, dialogue  Conflict Management  Community culture, traditions, traditional knowledge, local reality, festivals, local resources  Local Community Culture  Community training and capacity building, community development, development plans, local capacities  Local Community capacity building and development  55  The process of category identification and counting of the number of occurrences helped to organize the themes that emerged from the data. All the comments made by participants are included in Appendix (3 to 9). Figure 5-1 represents the results of the content analysis.  Content analysis: Major themes Ethics  52  Interpersonal Relationships  48  Corporate Culture  44  Conflict Management  28  Local Community Culture  21  L.C. Capacity Building and Development  20  Community Relations Department  18 0  10  20  30  40  50  60  Count  Figure 5-1: Themes Emerging from Data  The numbers shown in the figure are the result of the analysis of 153 comments. Almost every comment made by participants referred to one or more of the categories selected. The following sections of this chapter will present a summary discussion of the major themes that emerged. Some selected quotes from respondents are also included. 5.1.1  Ethics  The overall analysis of responses showed that the majority of participants referred to the importance of ethics in the development of good company – community relationships. Even when all of the companies included in the study have published their Code of Ethics in their webpage, respondents still discussed the importance of reminding mining employees that appropriate behaviour is required. "There are many outstanding people in mining companies, both intellectually and professionally, but the fundamental problem remains in the human capacities. These  56  professionals often forget that local communities also deserve respect and have the right to be heard. Conflicts usually originate at a personal level". (Participant from Communications Department, 1 year of experience)  Surveys  demonstrated  that  the  professionals  interviewed  acknowledge  that  relationships with local communities have been affected by the behaviour of employees. Participants recognized that inappropriate behaviour and derogatory attitudes of the personnel could have created feelings of rejection towards mining companies, thereby impeding effective company–community communications and promoting conflicts. It was suggested that the attitudes of employees towards local community members should be reconciliatory, with some degree of empathy.  Participants also commented on the  importance of promoting fairness for local community members and recognized that the quality of treatment offered can define company-community relationships. The importance of creating relationships based on respect, honesty and trust was highlighted. One participant mentioned that appropriate treatment and behaviour should also apply towards contractors, suggesting that employees from outsourcing companies may also feel marginalized. Many responses throughout the questionnaires remarked on the importance of promoting the culture and traditions of the local communities among mining personnel. However, it was mentioned that in some cases a change in attitude has occurred in some local community members when, as locally hired personnel, they experience economic wealth for the first time. Mining employees who participated in the survey agreed that training would be a valid initiative to improve employee-community interactions. However, it was argued that an effective training program for mining personnel should include topics related to appropriate behaviours, attitudes and values. "Mining personnel must be trained in human relations, reinforcing values like honesty. The staff of the leading companies in mining operations should have the proper psychological profile to perform in diverse cultural settings. There are very good professionals in mining explorations and operations but they interact poorly with the villagers, harming companycommunity relationships". 57  (Participant from Geology Department, 22 years of experience)  On the subject of ethics in the Peruvian mining industry a participant concluded: "Those working for a mining company (directly or indirectly) are, in the eyes of the local people, the face of the company. Instilling values is not easy, they must be cultivated. It is a long-term task but it is the best way to achieve lasting results". (Participant from Environmental Department, 15 years of experience)  5.1.2  Interpersonal Relationships  The professionals from the Peruvian mining industry who participated in the study acknowledged that many conflicts have occurred at an individual level. They also recognized the importance of interpersonal relationships in the development of positive companycommunity relations. "Interpersonal relationships are the link for the community-mine relation. A bad relationship can mean the eventual onset of a conflict, and also deterioration in communication". (Participant from Environmental Department, 2 years of experience)  It was commented that mining employees represent an “individualized image” of the company. And therefore, they must be active actors in the daily improvement of relationships with the communities impacted. "Relationships with the communities are based on the perceptions these communities have of the company. That perception is developed based on their direct experiences with mining employees". (Participant from Environmental Department, 3 years of experience)  As explained in the previous chapter, 30% of the participants answering the survey considered that the task of building good relationships with local communities applied only to those in community relations departments. Nevertheless, the rest (and majority) of respondents recognized that, in order to strengthen company-community relationships, the entire mining work force must assume the responsibility of effectively interacting and communicating with local community members. 58  "The interaction of the communities with technical staff is often more frequent and of greater impact than the interaction with the specialized personnel (Public Relations or Community Relations). Guidelines for effective interactions with local communities can strengthen the strategy of the company". (Participant from Logistics Department, 10 years of experience)  It was suggested that interactions with local community members are affected by inappropriate attitudes, cultural differences, and lack of the communication skills required for engaging in effective dialogue. Even when one professional suggested that training does not apply to interpersonal relationships; the majority of participants considered that training in interpersonal skills (assertive communication, negotiation strategies, conflict management, intercultural communication, etc.) can improve employee-community interaction. It was also suggested that this training could help mining personnel to effectively promote the company’s social and environmental policies. 5.1.3  Corporate Culture  The survey sent to mining employees included issues related to company-community conflicts and initiatives to improve the interaction between mining employees and local communities. When discussing reasons for the escalation of tensions, it was noticed that participants commented on the effects of corporate culture on the deterioration of companycommunity relationships. "The issue is the culture of the organization, the values and attitudes that emanate from the top management and a chain of power that only focuses on immediate results, and not on the medium and long term consequences. Even the best and most committed people cannot perform well if they operate in an environment that is expected to blindly comply with the orders given, if the truth is concealed by reports, if what it is expected of those in touch with the local people is more obedience and less sense". (Participant from Environmental Department, 15 years of experience)  All the companies included in the study have developed codes of ethics and CSR policies (according to their web pages). Nevertheless, participants indicated that there is still a lack of commitment from employees to actively translate those policies into actions. It was 59  mentioned that in addition to better recruitment policies, it is still necessary to promote among mining personnel the importance of working collaboratively with local communities to ensure successful mining activities. "Mining employees must understand the importance of good relations with the communities. This should be repeated incessantly until it becomes part of the values of the company and of the employees themselves". (Participant from Environmental Department, 3 years of experience)  It was stated that it is necessary to increase employee awareness about responsible mining activities as well as current environmental and social policies. One participant also added that motivation is needed, and that to this end companies should promote the benefits that can be obtained from good company-community relations. Many participants agreed that mining personnel training could address these concerns. However, it was stated that the development of any initiative will need the collaboration of the heads of the departments. It was suggested that the top management has not shown much commitment on strengthening company-community relationships. One participant added that there is also a lack of team work within companies. "Mining companies still need to internalize the concept that relationships with communities and the attention to social policies are not only the responsibility of the Community Relations Department but of the entire organization". (Participant from Community Relations Department, 7 years of experience)  Similarly, while discussing implementations and changes for current training programs, Peruvian mining employees commented that companies still need to support and encourage their workforce at a personal level. Even if leadership was not repeatedly mentioned, it was suggested that companies should encourage their personnel to stay in touch with surrounding communities, through visits and even volunteer activities within the community. It was added that these initiatives could promote horizontal company-community relations and reduce conflicts.  60  5.1.4  Conflict Management  Mining employees who participated in the study commented that sources of mining conflicts include lack of institutional capacities, ineffective redistribution of mining royalties and active opposition of NGOs and political groups. Even though, participants agreed that in order to build positive relationships with surrounding communities, mining companies must promote dialogue and have appropriate grievance handling mechanisms in place. "It should always be a priority to improve relations with local communities. Their claims must be addressed in a timely manner, always thinking of finding a balance between what they expect from us and what we need from them as a community". (Participant from Environmental Department, 2 years of experience)  Mining employees commented on the importance of managing community expectations properly, and promoting policies that benefit both companies and local communities. It was mentioned that negotiations must be transparent and that promises should not be made if they cannot be met. Participants also indicated that companies need managers with the necessary skills to effectively negotiate with communities. However, participants recognized that many conflicts in mining occur at an individual level, and suggested that conflict management should also occur at an individual level. When asked about topics that should be included in a training program for mining personnel, a participant stated: "Many topics, but maybe the most important one: conflict management". (Participant from Environmental Department, 3 years of experience)  The majority of the respondents considered that companies should train their entire work force in conflict management. Other respondents also recommended including assertive communication, particularly cross-cultural communication, in the training. 5.1.5  Local Community Culture  The totality of mining employees who completed the survey commented on the cultural differences that exist in Peru between mining company personnel and local community 61  members. It was suggested that companies should promote the culture and traditions of the local communities among mining employees. It was mentioned that knowledge of and respect for the culture, traditions and idiosyncrasies of surrounding communities could lead to the building of better relations. On this issue, one participant mentioned that it is necessary to: "…engage employees with the local culture, customs and festivals. A better understanding of how the community works and lives would make employees have more consideration and respect towards the entire community and its members". (Participant from Environmental Department, 5 years of experience)  Another professional added: "…it is necessary to stay in touch with local communities through visits and fieldwork. It is also necessary to engage in workshops to better understand their reality. What is not known and understood cannot be loved". (Participant from Business Development and Planning, 10 years of experience)  To accomplish a better understanding of the local reality, participants suggested visits to the communities and/or training to raise awareness of the needs, feelings, interests and perspectives of the community. It was mentioned that recognition of the valuable resources (tangible and intangible) of the communities and acknowledgement of the strengths and weaknesses of the communities can contribute to the development of better relations. 5.1.6  Local Community Capacity Building and Community Development  Participants agreed that the Peruvian government must assume its responsibility to promote and ensure community development. However, many respondents indicated that mining companies also need to play an active role in community capacity building, by providing training in different areas and in community development, and by helping the community define and achieve needed development plans. Regarding the impact of mining activities on the socioeconomic and cultural organization of local communities, respondents considered that companies should provide support to the communities directly impacted through training in different skills. It was 62  suggested that through this initiative, added to the transfer of key technical knowledge (ex. environmental concepts) and community visits to the mine site, companies could achieve a better understanding of local communities. "By achieving an efficient means of communication and earning trust; better relations and development opportunities can be created, allowing community members to express themselves and also preventing them from being manipulated by those with personal  agendas". (Participant from Environmental Department, 3 years of experience)  Similarly, other respondents commented on the importance of providing direct support to community members; especially to prevent them from being influenced by people with personal economic or political agendas. "Many times the misunderstood interests of the communities are actually nothing other than the political interests of bad leaders who use people for their own benefit. The company should not only focus on training its own staff but also on training local community members. This could give the communities the tools required to redefine their needs and be able to aspire to real benefits". (Participant from Logistics Department, 10 years of experience)  For the long lasting development of local communities, mining employees argued that, in collaboration with the communities, companies need to create the development plans those communities need. However, it was suggested that companies should also promote the engagement of mining personnel with community development. "A major initiative is to promote the engagement of different areas of the company in the development of the communities. Ex: the construction of a school. Participating actively in this task, I believe, creates more awareness and creates a bond with the community". (Participant from Finance Department, 2 years of experience)  5.1.7  Community Relations Department  Mining employees from different companies and departments were invited to participate in this study. Among the 32 professionals that completed the survey, 7 belonged 63  to Community Relation Departments. Based on the comments of the rest of the participants, it was noted that views on the expectations regarding community relation departments in the Peruvian mining industry were divided. Some respondents were critical, suggesting that community relations departments should include qualified personnel capable of understanding the thoughts and habits of the local community, and with the adequate communication skills (including being able to speak Quechua 5). It was argued by some that there is no adequate recruitment of Community Relations personnel. It was also suggested that professionals hired for these positions should have the skills needed to successfully interact with communities, and should be able to manage expectations carefully without agreeing to requests that have not been properly evaluated. "I agree that companies should hire people with skills to deal and engage with communities effectively. Those people are an important and basic component of relationships with communities. However, this does not mean hiring people who will always agree with the demands of the communities. We need people who can handle these cases and have the courage to say NO to unfounded requests". (Participant from Environmental Department, 10 years of experience)  Another respondent mentioned that, in his opinion, some of the personnel at the Community Relations department adopt derogatory attitudes towards local community members. One participant added that often the people in charge of the training come from different cities and are not fully aware of the reality of local communities. A professional from a Communications department tried to explain the internal challenges existing at the Community Relations department. He stated that: "Community Relations Departments are integrated by multidisciplinary teams that provide different visions of the same social reality. This is good as long as it is possible to get various proposals for action. Yet, without a common basis of understanding (from the sociological  5 Aboriginal Peruvian language  64  and anthropological perspective, for example) these different points of view may no longer represent an advantage but a challenge". (Participant from Communications Department, 4 years of experience)  On the other hand, professionals from the Community Relations department expressed in different ways that they often feel marginalized by the rest of the company. A participant from this department concluded: "Mining companies still need to internalize the concept that the relationships with the communities and the attention to social policies are not only the responsibility of the Community Relations Department but of the entire organization". (Participant from Community Relations Department, 7 years of experience)  5.2 Summary Recommendations for Implementation of Research Outcomes This research confirmed the concept presented by Freeman and Miller (2009) that mining employees are key feedback sources of information who play an important role in the acquisition and retention of the social license to operate. Based on the responses of mining employees who participated in the study, on further examination of the results (i.e. based on emerging themes) and on the researcher’s own experience, the following are recommendations for mining companies to strengthen employee-community interaction and reduce tensions in Peru. 5.2.1  Employee Capacity Building  The research shows that mining employees consider training of mining personnel as one of the most effective initiatives to improve employee-community relations. Mining employees consider that having guidelines for effective interaction with local communities can strengthen company-community relations. Some of the topics suggested (e.g. code of ethic, conflict management, effective communication, cultural awareness) have already been implemented in some current training programs for mining personnel. Nevertheless, further examination of the responses shows that a change of approach in capacity building programs is needed.  65  The training for mining personnel required in mining companies is not one solely understood as sessions or lectures guided by specific modules. Training programs should be flexible and applicable to local realities. It is also important that the people responsible for developing and implementing the training are fully aware of the reality and culture of the local communities. Training programs should raise awareness among mining personnel that the attention to the relationships with local communities involves the entire organization and not only the community relations departments. As mentioned by respondents, mining employees represent the image of the company. They are the link between the company and the communities. Poor interactions and inappropriate behaviour or attitudes can deteriorate the overall company-community relationship. Training programs should advise employees on the importance of good company-community relations to ongoing mining operations. Discussions about employee-community interactions and guidelines for effective interactions should not only be included in induction processes for new employees. It should be an ongoing task designed to achieve lasting results. Support, commitment and further work under the supervision of top and middle managers are necessary. Managers are required to lead by example, demonstrating to employees under their supervision that appropriate behaviour towards local community members is part (ideally) of the culture of the organization. Mining companies need to actively promote respect for the culture and traditions of the areas of influence. Companies also need to promote among employees the environmental and social policies implemented by the company. Mining personnel (very often members of the local communities) should ideally be able clarify and promote these policies within their community. Mining employees discussed the importance of “experiential” training where employees are encouraged to engage in activities that strengthen relationships with local communities. It was suggested that employees should be encouraged to visit the communities, participate in volunteer activities within the community and engage with the local culture. These initiatives were not suggested as tasks that should be required of mining personnel. It was suggested that mining companies should bear these initiatives in mind so activities can be organized especially for those who want to actively participate in the development of local communities. 66  5.2.2  Additional Approaches for Reducing Company-Community Conflicts  Strengthening employee-community relationships through capacity building can be one of the mechanisms for reducing conflict. However, mining companies should also consider the following recommendations in the development of strategies or plans of action taken to manage/reduce tensions with local communities in Peru. Cross-Functional Collaboration A clear division was noticed during further analysis of responses. Comments showed that some professionals from community relations departments considered themselves to be excluded from the rest of the company. Meanwhile, professionals from other departments were of the opinion that the recruitment process for personnel in the community relations departments does not always result in selection of personnel open to developing successful interdepartmental relationships. The effectiveness of recruitment processes for personnel at these departments was not explored in this research. However, the overall analysis of responses suggested that companies should improve the levels of communication and feedback processes between departments. Lack of communication between departments (i.e. among operations and community relations) and lack of teamwork can affect the development of mining operations and the overall strategy of the company. Social Policies Companies need to pay attention to the effect of certain social policies on companycommunity relations and consider more flexible plans of action. For example, in specific cases where employees may consider that they could/should provide assistance to local community members while on company time. In previous discussions with professionals of the Peruvian mining industry, professionals commented on situations where they consider that company policies where affecting the perceptions that communities have of the mining company. It was explained that, for example, when they were driving through the mine site an elderly member from the community would ask them for a ride to the next town when 67  noticing that there was space in the vehicle provided by the company. A number of professionals from different locations told the researcher that they had to refuse the request of the elderly person because of company policies and that they were then strongly criticized by other community members. At many mines safety policies state that non-employees cannot ride in company vehicles. Current arrangements with insurance companies state that in case of accidents, non-employees will not be covered by the company’s insurance. While this policy is valid, there are specific cases where employees consider that they should be able to make exceptions. Experiences like the one described generate concerns in some mining employees and among communities. Mining employees should be able to openly discuss these situations with the company in an effort to find a better approach in these specific cases. Most importantly, these experiences should be discussed so there is a broader understanding of the problem at managerial levels. Conflict Management and Negotiation Processes For improved conflict management, mining employees recommend that companies implement appropriate grievance mechanisms and improve communication processes (internal and external) when dealing with community complaints and claims. Mining employees suggested that conflict management should be included in the training programs for mining personnel. Mining personnel should be aware of the grievance mechanisms implemented by the company and should realize the importance of building positive relationships with communities. However, negotiation processes must still rely on assigned managers together with community relations personnel. In general, managers have a better understanding of the immediate, medium and long term planning of the mining operations and community relations personnel have a better understanding of the community political structure and needs. During negotiation processes, mining companies should carefully evaluate the requests of the communities and should not make promises that cannot be met. Appropriate management of community expectations is needed to avoid resentment as a result of unfullfilled promises. These resentments can  68  generate conflicts during further negotiations and can delay/frustrate company plans for future exploration and expansion. Local Community Development and Capacity Building Mining employees considered that it is important to understand the community culture and expectations but that it is equally important that communities understand mining activities. Local community members should also have the opportunity to visit the mine. The company should not only focus on training its own staff but also on training local community members, increasing awareness regarding responsible mining activities and providing support for the transfer of key technical knowledge such as environmental protection. Initiatives related to community capacity building can create opportunities to engage in company-community dialogue. During those interaction sessions, company representatives and community members could have a time and space to informally discuss other topics of mutual interest. It was suggested that better company-community communication processes can allow community members to express themselves, redefine their needs and can also prevent them from being manipulated by people with specific political and personal agendas. Finally, mining employees commented that companies should work with the community in the development of plans that address community needs. There should be joint participation by the company and community in projects related to community development. Local communities should consider these projects as their own. Therefore, local communities should also assume responsibilities for the successful implementation of those projects. Furthermore, local governments should also be engaged in the processes. Responsibilities should be assigned to all stakeholders.  69  CHAPTER 6.  CONCLUSIONS AND RECOMMENDATIONS FOR  FURTHER RESEARCH 6.1 Conclusions of the Study 6.1.1  Conclusion from Literature Review  Mining conflicts in Peru have spread considerably over the last decade. Basically, mining conflicts involve confrontation between three actors: the Peruvian government, local communities and the mining companies. The Peruvian government has not been able to successfully redistribute mining royalties to local communities, nor has it been able to effectively redress grievances. Many local communities oppose the development of mining projects. Mining companies need to strengthen company-community relations affected by poor employee-community interaction. To this end, training of mining personnel in community affairs issues could improve relations with local communities. Mining employees play an important role in obtaining and retaining the social license to operate. They also constitute a key feedback source of information. However, the literature review showed that there are no studies including the views of professionals of the Peruvian mining industry on mining conflicts and initiatives to reduce conflicts in Peru. 6.1.2  Conclusion from Research Approach  Valuable information was gathered through interviews. The application of a critical discourse analysis and a content analysis allowed the identification and organization of the major themes that emerged during the analysis of responses. A qualitative approach provided a better understanding of the relationship between mining employees and local communities in Peru. The major limitations of this research included the translation of the data gathered and the biases of the key informants and of the researcher herself. The unplanned change in the method of data collection, from interviews to written surveys, allowed the involvement of more participants as they were able to manage their own schedule. However, participants could have shared more thoughts and experiences during an 70  interview. On the other hand, sending the survey together with the initial contact letter made it more likely that a response would be received from the participants. However, it also offered disadvantages as some professionals contacted preferred to forward the invitation to colleagues at the community relations department. Even when stated that the participation of employees from different departments was solicited. 6.1.3  Conclusion from Survey Results  Mining employees considered that the Peruvian government lacks the capacity to regulate the industry, manage local conflicts, and redress grievances. Mining employees also considered that mining companies have made mistakes in their relations with local communities and acknowledged that in order to reduce conflicts, mining personnel must be committed to building positive relationships with local communities. Mining employees recognized the effect of poor employee-community interaction in the escalation of tensions and considered training as one of the most effective initiatives for building the capacities needed to improve employee-community interaction. However, participants suggested that existing training programs need modifications. Participants recommended that companies should focus on broad training that includes human aspects such as attitudes, values and social skills. Training must be flexible, applicable to local realities, evaluated periodically and must be supported by top management. Training should also be more experiential, encouraging employees to get involved with the local culture and with community development projects. Nevertheless, informants considered that it is also equally important to provide training to local communities and build capacities among community members and their leaders. 6.1.4  Conclusion from Discussion  Mining employees can provide companies with opportunities and information needed to strengthen company-community relations. Mine employees acknowledge the importance of ethical employee-community relationships and the impact of cultural differences in the development of those relationships. Flaws in organization culture, inadequate policies and the lack of personnel commitment to community related affairs affect company-community 71  relations and contribute to the escalation of tensions. Training in conflict management is needed. However, mining companies should also promote the development of the impacted communities and collaborate on the capacity building of local community members. Finally, it was noted that views on the expectations regarding community relations departments in the Peruvian mining industry are divided. 6.1.5  Research Question and Objectives  The objectives of this research were: •  To determine if Peruvian mining employees consider that the relationships between mining companies and local communities have been affected by the way mining employees interact with local community members.  •  To gather information about the initiatives (if any) mining employees consider mining companies could develop to improve relations with local communities.  •  To determine if Peruvian mining employees consider training of mining personnel an effective initiative to improve relations with local communities. A qualitative approach was taken to meet the research objectives. Thirty two structured  interviews were conducted among professionals working at mines in the Peruvian mining industry. Mining employees that agreed to be interviewed considered that: •  Relationships between mining companies and local communities have also been affected by the way mining employees interact with local community members.  •  Mining companies could develop and implement initiatives to improve relations with local communities. These initiatives include: improving negotiation processes, communication processes (internal and external), ensuring that grievance mechanisms are in place, promoting local culture and engaging managers in community affairs. For the third objective, this research sought to answer the following specific question:  72  According to mining employees working in the Peruvian mining industry, is training of mining personnel one of the most effective initiatives to improve interaction between mining employees and local community members? The analysis of responses concluded that: Yes, training of mining personnel is one of the most effective initiatives to improve interaction between mining employees and local community members. Respondents considered that companies should focus on broad training, including human aspects such as attitudes, values and social skills. Training must be flexible, applicable to local realities, evaluated periodically and must be supported by the top management. Training must also be more experiential, encouraging employees to get involved with the local culture and with community development projects.  6.2 Recommendations for Future Research This research addressed a number of issues with respect to the effect of employeecommunity interaction on the development of tensions and the potential of training as an initiative to reduce the escalation of tensions in Peru. Further research is required to develop detailed implementation strategies for the appropriate training program. For future research on potential initiatives to reduce the escalation of tensions in Peru, the opinions and recommendations of other stakeholders of the mining industry, such as community members, NGOs or government representatives, is needed. Within the companies, it is also important to explore in more detail the opinions of locally hired personnel, as they are the ultimate link between companies and communities. In another study including different departments of the company, the support of a mining company will be needed. Any mining project is specific and will face its own limitations and opportunities. To determine effective initiatives to strengthen relationships with local communities, the commitment of the entire organization (not only community relations departments) is required. Companies will need to engage top and middle managers  73  to ensure their participation. The assistance of experts for a detailed codification of the data gathered will also be necessary. For the specific improvement of an existing training program, valuable opinions and recommendations from employees, for that specific project, can be gathered if confidentiality is guaranteed. It also needs to be explained in advance that the aim is to collect their recommendations to deal with a situation that can affect the project. Focus groups should be implemented to discuss topics and initiatives among people from the same level of the organizational structure. Opinions and comments could be concealed if supervisors and managers are present during the discussion. On the other hand, the views and opinions of the top management alone will also provide companies with valuable information. It could also reveal the organizational changes that may be needed to ensure that those in positions of power set the appropriate examples.  6.3 Final Thoughts Mining organizations recognize that community engagement is essential for the successful development of a mining project. It is also acknowledged that plans for community development can only prosper if community members define their own needs and get directly involved in the development and implementation of the projects. Similarly, the responses gathered in this study suggest that employee engagement and an active participation of mining personnel in the development of initiatives could also be important. If engaged in the process, mining personnel could also be the source of opportunities to strengthen company-community relations. If companies discuss the challenges presented at an employee-community level with the mining personnel, mining employees could provide valuable information to companies and help organizations determine the necessary changes. This approach could also have an impact on their commitment and motivation at the time of implementing any initiative to improve company-community relations. Some professionals who participated in the study suggested that employees should actively participate in the task of building better relationships with communities. This study includes the opinions and recommendations of many young professionals in the Peruvian  74  mining industry. In order to strengthen company-community relations, some of them proposed visits to the communities, volunteer activities in the community and experiential training. These employees demonstrate enthusiasm, willingness and energy to implement changes in the Peruvian mining industry. If properly guided and advised, these professionals and others with the same outlook could develop the leadership required to enable mining companies to build better company-community relations.  75  CHAPTER 7.  REFERENCES  Altrichter, H., Feldman, A., Posch, P., and Somekh, B. (2008). Teachers Investigate their Work; an Introduction to Action Research Across the Professions. Second edition. London: Routledge. APCSG (2010). 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Retrieved December 21, 2010, from http://revistaminera.wordpress.com/2010/03/11/inversion-minera-enperu-se-recuperara-en-2010/  84  APPENDIX 1: SURVEY IN ENGLISH AND SPANISH Improving the interactions between mining company employees and local communities in Peru - A mining industry perspective 1. Please indicate the department where you work: ………..……….. 2. How many years have you been working in the Peruvian mining industry? …………. 3. Please indicate if your position level requires: Employees reporting to you. No employees reporting to you. 4. How would you qualify the overall relationship between the company and the local communities? Please consider only the communities located near mine infrastructure (mines, plants, buildings and along transportation routes of mines).  Excellent Good Average Poor Bad 5. In March 2009, an international relief and development organization published a document called “Mining Conflicts in Peru: Condition Critical” 6. The publication indicated that there are 3 main roots of the conflicts in Peru. Please indicate your level of agreement with the next statements: 5 = Strongly Agree 4 = Agree 3 = Neutral 2 = Disagree 1 = Strongly disagree Roots of Conflicts in Peru “Local communities experience few benefits from mining revenues”. “The Peruvian government lacks the capacity and political will to regulate the industry, manage local conflicts, and redress grievances”. “Mining companies have made serious mistakes in their relationships with local communities”.  6  Document published by Oxfam America in March 2009. conflicts-in-peru-condition-critical.pdf  5  4  3  2  Available at: http://www.oxfamamerica.org/files/mining-  85  1  6. The same publication also provides urgent recommendations for the Peruvian government, mining companies, international donors and civil society to break the cycle of violence and conflict in Peru’s mining sector. Among the recommendations for mining companies it is suggested that companies should: “Ensure that appropriate personnel are in place. In a number of situations, the attitudes of company employees have exacerbated the tensions between companies and local communities. Companies should screen employees to ensure that they hire only those who are fully committed to building positive relationships with communities. This is particularly important for personnel who deal directly with communities on a regular basis”. Please indicate your level of agreement with the last statement: Strongly agree Agree Neutral Strongly Disagree Disagree Please briefly explain your answer. ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------7. Training has already proven its effectiveness to address mining companies´ concerns in safety, health and equipment maintenance. For the purpose of strengthening relationships with communities: Do you consider training of mining personnel one of the most effective initiatives to improve the interactions between employees of the mining company and members of the local communities? Yes. No.  Please continue with question N° 9 Please continue with question N° 8  Please briefly explain your answer. ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------8. What would be, in your opinion and based on your experience, an effective initiative to improve the interactions between employees of the mining company and members of the local communities? Please briefly explain your answer. ---------------------------------------------------------------------------------------------------------86  -----------------------------------------------------------------------------------------------------------Please continue with question N° 10 9. What would be, in your opinion and based on your experience, the training needed by the mining personnel to improve the interactions between employees of the mining company and members of the local communities? Please briefly specify. ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------10. Does the company provide any kind of training for the mining personnel to improve the interactions between employees of the mining company and members of the local communities? Yes. Please briefly specify. ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------No. Please continue with question N° 13 Not sure. Please continue with question N° 13 11. How would you rate the effectiveness of that training to improve the interactions between employees of the mining company and members of the local communities? Excellent Good Average Fair Poor 12. What would you add or change to the training? ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------13. To what extent do you think training of mining personnel could improve the overall employee-community relations? To a very great extent To a great extent To some extent To a very little extent To no extent at all 87  Please briefly explain your answer ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------14. Do you have any additional comments? -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------  Thank you for your participation in this survey.  88  Mejorando las interacciones entre empleados de la compañía minera y las comunidades locales en Perú – Una perspectiva de la Industria Minera  1. Por favor indique a que área de la empresa pertenece:………..………………………… 2. ¿Cuántos años lleva trabajando en la industria minera peruana?...……………………… 3. Por favor indique si: Tiene empleados a su cargo (no incluye practicantes). No tiene empleados a su cargo 4. ¿Cómo calificaría en general la relación entre la compañía y las comunidades locales? Considere sólo las comunidades ubicadas cerca de las infraestructuras de la compañía (minas, plantas, edificios y a lo largo de las rutas de transporte).  Excelente Buena Regular Deficiente Mala 5. En Marzo del 2009, una agencia internacional de desarrollo y ayuda humanitaria publicó el documento: “Conflictos Mineros en el Perú: Condición Crítica” 7. Este documento indica que son 3 las raíces principales de los Conflictos en el Perú. Por favor indique su valoración sobre los siguientes enunciados: 5 = Totalmente de acuerdo 4 = De acuerdo 3 = Ni de acuerdo ni en desacuerdo 2 = En desacuerdo 1 = Totalmente en desacuerdo Raíces de los Conflictos en Perú “Las comunidades locales perciben escasos beneficios provenientes de la actividad minera”. “El gobierno peruano podría tener mayor capacidad y voluntad política para regular la industria minera, manejar constructivamente los conflictos locales, y administrar reclamos”. “Las compañías mineras han cometido en ocasiones graves errores en su relación con las comunidades locales”.  5  4  3  2  7  Documento publicado por Oxfam América en Marzo del 2009. Disponible en: http://www.oxfamamerica.org/files/miningconflicts-in-peru-condition-critical.pdf  89  1  6. En el mismo documento se ofrecen urgentes recomendaciones al gobierno peruano, a las compañías mineras, a los donantes internacionales y a la sociedad civil para así quebrar el ciclo de violencia y conflicto en el sector minero en el Perú. Entre las recomendaciones para las compañías mineras se indica que las compañías deben: “Asegurar que cuentan con personal adecuado. En una serie de casos, las tensiones entre compañías y comunidades locales han empeorado debido a las actitudes de empleados de las compañías. Éstas deben seleccionar a su personal para asegurar la contratación sólo de empleados que estén plenamente comprometidos con la construcción de relaciones positivas con las comunidades. Ello es particularmente importante en el caso de personal que trata directamente con las comunidades de manera cotidiana”. Por favor indique su valoración sobre el párrafo anterior. Totalmente de acuerdo De acuerdo Ni de acuerdo ni en desacuerdo En desacuerdo Totalmente en desacuerdo Por favor explique brevemente su respuesta. ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------7. La capacitación de empleados - como método para mejorar aspectos relacionados a temas como salud, seguridad o mantenimiento de equipos, entre otros - ha demostrado ya su efectividad en la industria minera. Para el fortalecimiento de las relaciones con las comunidades: ¿Considera usted la capacitación del personal minero una de las iniciativas más efectivas para mejorar las interacciones entre los empleados de la compañía minera y los miembros de las comunidades locales? Si. No.  Por favor continúe en la pregunta N° 9 Por favor continúe en la pregunta N° 8  Por favor explique brevemente su respuesta. -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------  90  8. ¿Cuál sería, en su opinión y basado en su experiencia, una iniciativa efectiva para mejorar las interacciones entre los empleados de la compañía minera y los miembros de las comunidades locales? Por favor explique brevemente su respuesta. ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------Por favor continúe en la pregunta N° 10  9. ¿Cuál sería, en su opinión y basado en su experiencia, la capacitación necesaria para el personal minero a fin de mejorar las interacciones entre los empleados de la compañía minera y los miembros de las comunidades locales? Por favor especifique brevemente. ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------10. ¿La compañía brinda algún tipo de capacitación al personal minero con el fin de mejorar las interacciones entre los empleados de la compañía minera y los miembros de las comunidades locales? Sí. Por favor especifique brevemente. ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------No. Por favor continúe en la pregunta N° 13 No estoy seguro. Por favor continúe en la pregunta N° 13 11. ¿Cómo calificaría dicha capacitación en relación a su efectividad para mejorar las interacciones entre los empleados de la compañía minera y los miembros de las comunidades locales? Excelente Buena Regular Deficiente No efectiva 12. ¿Qué agregaría o cambiaría de dicha capacitación? -----------------------------------------------------------------------------------------------------------91  -----------------------------------------------------------------------------------------------------------13. ¿En qué medida considera que la capacitación del personal minero pueda mejorar la relación general empleado-comunidad? En medida significativa En gran medida En alguna medida En poca medida En ninguna medida Por favor explique brevemente su respuesta. ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------14. ¿Desea hacer algún comentario adicional? ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------Gracias por participar en esta encuesta.  92  APPENDIX 2: ENSURING THE APPROPRIATE PERSONNEL Table A2-1: Ensuring the Appropriate Personnel Code  1  2  3  4  5  Question 6 – Comments Environmental, Agree: "The issue is the culture of the organization, the values and attitudes that emanate from the top management and a chain of power that only focuses on immediate results, and not on the medium and long term consequences. Even the best and most committed people cannot perform well if they operate in an environment that is expected to blindly comply with the orders given, if the truth is concealed by reports, if what is expected of those in touch with the local people is more obedience and less sense". Environmental, Strongly Agree: "Interpersonal relationships are the link of the community-mine relation. A bad relationship can mean the eventual onset of a conflict and also a deterioration of the company-community communications". Human Resources, Neutral: "The problem is not the interaction between communities and mine workers. The problem is that the Government does not promote properly the development, progress and growth originated by the mining industry in the country". Environmental, Strongly Agree: In my experience, I have seen good and bad relationships. Yet, you always remember the bad experiences. I’ve seen… for example, that employees from a recognized mining company behave with arrogance and therefore are seen as "cocky" people. Their behaviour originates feelings of rejection and even dislike against the mining company. I imagine this reaction [of society] is not originated by envy but by the lack of humility of that kind of employees". Community Relations, Strongly Agree: "The quality of treatment with the local communities is central to the type of relationship that will be generated. Many times people that have to deal directly with local community members underestimate their condition as farmers and mistreat them, avoiding the development of fair relationships". Environmental, Agree:  6  "I agree that companies should hire people with skills to deal and engage with communities effectively. Those people are an important and basic component of the relationships with the communities. However, this does not mean hiring people who will always agree with the demands of the communities. We need people who can handle these cases and have the courage to say NO to unfounded requests".  93  Table A2-1: Ensuring the Appropriate Personnel Code  Question 6 – Comments  7  Finance, Agree: "The attitude towards local communities should be reconciliatory and have some degree of empathy. It is important that the personnel designated to deal with these communities behave accordingly in order to achieve positive results".  8  Operations, Strongly Agree: "In Peru, people believe that mining pollutes; especially based on bad management decisions taken in the past. To change that perception, it is necessary that the personnel at the community relations department understand the thoughts and habits of the local communities; clarify their doubts and generate trust in modern mining which has a serious commitment with the environment".  9  Environmental, Agree: "Mining personnel should respect the culture and traditions of the local communities and understand their needs. Mining personnel should have a recognized social sensibility".  10  Community Relations, Strongly Agree: "All the employees in the mining units, in one way or another frequently interact with local communities. They represent an "individualized image" of the company".  11  Geology, Strongly Agree: "The professionals and staff dedicated to exploration activities have not previously considered the socio-cultural level of the commoners. Employees used to consider them useless therefore abused them psychologically. Now that the media has reached these communities, local members realize the abuse and mistakenly react with violence".  12  Logistics, Strongly Agree: "A supervisor of operations, mining, processing or management is not adequately trained to affront conflicts with communities as people who do field studies of community needs and know the profile of the leaders. Many errors occur because untrained people agree to requests that have not been properly evaluated. Later on it is difficult to build an agreement and establish a constructive relationship with the community".  13  Communications, Neutral: "I think we should consider the other side of the relationship. Local communities are organized by elite groups that perform according to specific interests which do not necessarily pursue the common good. Similarly, we must not forget that mining companies face an ongoing disinformation campaign (run by political groups or NGOs) that affects the image of the mining sector".  94  Table A2-1: Ensuring the Appropriate Personnel Code  Question 6 – Comments  14  Environmental, Agree: "A positive attitude and the knowledge of the idiosyncrasies of the surrounding communities can always build better relationships".  15  Environmental, Agree: "The staff should include professionals from surrounding communities as those are the people mostly interested in developing a fair company-community relationship".  16  Environmental, Strongly Agree: "The relationships with the communities are based on the perceptions these communities have of the company. That perception is developed based on their direct experiences with mining employees".  17  Environmental, Agree: "The Community Relations department should be led by professionals from the areas of influence. They must have adequate communication skills and should be able to speak the native dialects that sadly, have always been underestimated".  18  Environmental, Agree: "Mining personnel must know the reality and the idiosyncrasy of the local communities".  19  20  21  22  23  Business Development & Planning, Strongly Agree: "This way we will be able to accomplish the objectives stated in the Health and Safety, Environmental, Community Relations and Human Rights Policies". Environmental, Strongly Agree: "Unfortunately, it is true. It is necessary to improve the management of community expectations, and the effects of increased job benefits on people that have never experienced economic benefits before": Operations, Strongly Agree: "I think so. People working in a mining company must know how to deal not only with the people of the communities but also with the people of outsourcing companies. Their commitment should be with the communities and with the company they work for". Operations, Strongly Agree: "Many times the way employees interact with other people is a bit impolite and aggressive. This creates discontent in the local communities which this is reflected by acts of violence at every level". Operations, Strongly Agree: "If the staff is engaged with communities it will be easier to maintain good relations and reduce conflicts".  95  Table A2-1: Ensuring the Appropriate Personnel Code  Question 6 – Comments  25  Community Relations, Agree: "Mining companies still need to internalize the concept that the relationships with the communities and the attention to social policies are not only the responsibility of the Community Relations Department but of the entire organization".  26  Communications, Agree: "Companies must hire managers with many social skills including the capacity to negotiate with communities, in an effort to minimize the socio-economic conflicts in Peru".  27  28  29  30  31  32  Community Relations, Strongly Agree: "Daily interactions should not only involve communications between colleagues. A good company-community relationship is important to benefit the common goals considering that both parties can either benefit or be harmed by bad relationships". Community Relations, Agree: "Because if we do not have the appropriate human capital, useless are the efforts made to improve mining - community relations". Communications, Agree: "The task of dealing with local communities should be assigned to qualified personnel in Community Relations. It should not be improvised since it has caused irreparable mistakes in the past. Often there is no adequate recruitment for this department. Some employees hold arrogant attitudes that impede communication and promote conflict". Community Relations, Neutral: "It is not only about having a staff committed to building positive relationships with communities. In fact that is the first requirement in this type of work. Tensions with local communities are also originated by the distribution of mining benefits. It is also the responsibility of the communities. We can not only blame the company ". Logistics, Agree: "Mining employees represent the image of the company. Therefore, they should demonstrate ethics, morals, and should respect the culture of the local communities". Community Relations, Strongly Agree: "Indeed, the lack of social awareness of the top management and their limited understanding of the Peruvian campesino reality, make it difficult to reach an understanding and to achieve a successful management of conflicts".  96  Table A2-2: Ensuring the Appropriate Personnel- Spanish Code  1  2  3  4  5  6  Question 6 – Comments Environmental, Agree: "El tema pasa por la cultura de la organización, por los valores y actitudes que emanan de la Alta Dirección, por una cadena de mando que no se fije solo los resultados, sino en las consecuencias de mediano y largo plazo de los mismos. Las personas más idóneas y comprometidas pueden no tener un buen desempeño si realizan sus actividades en un entorno en el que se espera que cumplan a ciegas con las órdenes dadas, si las verdades son maquilladas en los reportes, si lo que se espera de quienes están en contacto con las poblaciones del entorno es más obediencia y menos sentido común". Environmental, Strongly Agree: "Las relaciones interpersonales son la bisagra de la relación comunidad mina. Una mala relación puede significar el eventual inicio de un conflicto, como el mal funcionamiento de la comunicación". Human Resources, Neutral: "El problema no es la interacción entre las comunidades y los trabajadores mineros, sino que el gobierno no difunde correctamente el desarrollo, progreso y crecimiento como país a los pobladores". Environmental, Strongly Agree: "En mi experiencia he visto buenas y malas relaciones; sin embargo, uno siempre recuerda las malas experiencias, he visto...por ejemplo, que los empleados de una conocida empresa minera se comportan de manera altanera incluso en la ciudad..., lo que ocasiona que sean vistos como personas “creídas” y generan hacia la minera un sentimiento de rechazo, incluso de tirria, supongo no por envidia sino por la falta de humildad de estas personas en su comportamiento". Community Relations, Strongly Agree: "La calidad del trato con los habitantes de las poblaciones del entorno de las operaciones mineras es fundamental en el tipo de relacionamiento que se genera. Muchas veces hay personas que se encargan de las relaciones directas con las comunidades que no tienen trato, y tratan mal a los pobladores subestimando su condición de campesinos y no generando las oportunidades de relaciones equitativas". Environmental, Agree: "De acuerdo con seleccionar en las compañías a personas con capacidades de manejo y trato hacia las comunidades, porque son ellos un componente importante e inicial de la relación con las comunidades. Sin embargo, esto no significa de buscar a personas que quieran estar completamente de acuerdo con las exigencias, quejas y reclamos de las comunidades, sino de saber manejar estos casos y ser capaces de también mostrar valentía para decir que NO a pedidos infundados".  97  Table A2-2: Ensuring the Appropriate Personnel - Spanish Code  Question 6 – Comments  7  Finance, Agree: "La actitud ante las comunidades debe ser conciliadora y con cierto grado de empatía. Es importante que el personal designado a tratar con las comunidades tenga estas cualidades para obtener resultados positivos tanto para la empresa como para la comunidad; siempre buscando el beneficio de ambos".  8  Operations, Strongly Agree: "En el Perú la gente cree que la minería contamina, y con mucha razón por malos manejos que se han dado en el pasado, romper ese paradigma requiere de personal de relaciones comunitarias que interactúe con la población, entienda sus pensamientos y costumbres, aclare dudas y genere confianza en la minería moderna, la cual tiene un compromiso serio con el medio ambiente".  9  Environmental, Agree: "El Personal debe saber respetar usos, costumbres y entender las necesidades de la población. Debe tener una reconocida sensibilidad social".  10  Community Relations, Strongly Agree: "Todo el personal de las unidades mineras de una u otra forma frecuentemente interactúa con las comunidades locales, es decir es una “imagen individualizada” de la empresa".  11  Geology, Strongly Agree: "Los profesionales y empleados dedicados a la actividad de exploración minera, no han considerado el nivel socio cultural de los comuneros, considerando a estos torpes para realizar trabajos encomendados y ha habido maltrato psicológico. Ahora que los medios de información llegan a los pueblos gracias a la tecnología y progreso del país, los comuneros saben que han venido siendo maltratados y ahora reaccionan de manera impropia y abusiva".  12  Logistics, Strongly Agree: "Algún supervisor de operaciones, mina, procesos, administración, no está debidamente capacitado para afrontar conflictos con las comunidades como si lo estarían personas que hacen estudios de campo de las necesidades de las comunidades así como del perfil de los líderes y sus intereses. Muchos errores se dan porque las personas no capacitadas ceden a pedidos no evaluados correctamente y cuando tratan de frenar la ola de pedidos ya es demasiado tarde para establecer una relación constructiva con la comunidad".  98  Table A2-2: Ensuring the Appropriate Personnel - Spanish Code  Question 6 – Comments  13  Communications, Neutral: "Pienso que debe considerarse el otro lado de la relación. En..., por ejemplo, el concepto social de comunidad no existe en términos generales. Los centros poblados y caseríos se organizan por grupos de poder que responden según sus intereses específicos que no necesariamente obedecen al bien común. Del mismo modo, no hay que olvidar que las empresas mineras enfrentan una permanente campaña de desinformación manejada por grupos políticos u ONGs que capitalizan esos intereses específicos antes mencionados para ofrecer mensajes que afectan la imagen del sector minero".  14  Environmental, Agree: "La calidad humana y el conocimiento de la idiosincrasia de las comunidades del entorno permiten establecer mejores relaciones siempre".  15  Environmental, Agree: "El personal deben ser profesionales de la zona de influencia de la mina, pues esas personas son las más interesadas en que su comunidad y la mina lleven una relación de cooperación y no de aprovechamiento por ambas partes".  16  Environmental, Strongly Agree: "Las relaciones con las comunidades se basan en la percepción que estas tiene de la mina, y esa percepción comienza con la gente con la que tienen más contacto".  17  Environmental, Agree: "Las áreas de relaciones comunitarias sobre todo deben de ser lideradas por personas profesionales de las áreas de influencia directa o indirecta, que tengan buenas actitudes de comunicación esto incluye hablar las lenguas maternas de la mayoría de la población, porque aun en varios países como el nuestro existe departe de pobladores costeños un rechazo o discriminación hacia los pobladores de la sierra".  18  Environmental, Agree: "El personal debe de conocer la realidad e idiosincrasia de las comunidades".  19  Business Development & Planning, Strongly Agree: "Porque de esta manera vamos a poder cumplir con nuestra política de salud, seguridad industrial, medio ambiente, relaciones comunitarias y derechos humanos".  20  Environmental, Strongly Agree: "Lamentablemente, es cierto. Se debe mejorar el tema del manejo de las expectativas por parte de la comunidad y el manejo de las ganancias mineras y comodidades del trabajo que muchas veces llega a operadores o personas que no han tenido estos ingresos antes".  99  Table A2-2: Ensuring the Appropriate Personnel - Spanish Code  21  22  23  25  26  27  28  29  Question 6 – Comments Operations, Strongly Agree: "A mí me parece que sí, que las personas que trabajan en una empresa minera tienen que saber tratar no solo a la gente de las comunidades sino también a la gente de contratas de la empresa. Y que el compromiso sea con las comunidades y con la empresa para la cual trabajan". Operations, Strongly Agree: "Muchas veces la forma de interactuar del personal que labora en minería, es un poco tosca y agresiva, esto crea estigmas y anticuerpos en la población que se refleja en actos de violencia en todo nivel". Operations, Strongly Agree: "Si se tiene personal que se involucre con la comunidad será más fácil mantener buenas relaciones y los conflictos se reducirían". Community Relations, Agree: "Falta todavía que las empresas internalicen el concepto de que la relación con la comunidad y la atención a las políticas sociales, no son responsabilidad exclusiva de las áreas funcionales de Relaciones Comunitarias sino, son transversales a toda la organización". Communications, Agree: "Las Compañías en primer lugar deben contratar a su personal de dirección con muchas capacidades; como la capacidad de negociación con las comunidades y tratar de minimizar los conflictos socioeconómicos en el Perú". Community Relations, Strongly Agree: "La interrelación diaria debe ir más allá de comunicación entre compañeros de trabajo, es importante el buen relacionamiento entre empresa y miembros de comunidad para beneficiar los objetivos conjuntos considerando que ambas parten pueden salir beneficiadas o perjudicadas con malos relacionamientos". Community Relations, Agree: "Porque si no se tiene el capital humano idóneo, de nada sirven los esfuerzos que se hagan por mejorar las relaciones minería – comunidad". Communications, Agree: "El trato con las comunidades locales debe estar asignado a personal calificado en relaciones comunitarias, que sea capacitado profesionalmente, no improvisados que causan errores a veces irrecuperables. Muchas veces no se observa la adecuada selección; hay mucha gente acomplejada que asume postura de grandeza que impide la comunicación y propicia el conflicto".  100  Table A2-2: Ensuring the Appropriate Personnel - Spanish Code  Question 6 – Comments  30  Community Relations, Neutral: "No se trata de tan sólo contar con personal comprometido con la construcción de relaciones positivas en las comunidades, de hecho es el primer requisito para incorporar a este personal en este tipo de trabajo; las tensiones parten también por los intereses que se generan por los recursos que puede brindar la actividad minera directamente a las comunidades, es también un tema de las comunidades, no podemos sesgar los conflictos hacia un solo lado".  31  Logistics, Agree: "Los empleados de las compañías mineras son la imagen de la empresa por lo tanto deben ser empleados con ética y moral y respetar las costumbres de las comunidades cercanas la actividad minera".  32  Community Relations, Strongly Agree: "Efectivamente, la falta de sensibilidad social de los funcionarios claves y su escasa comprensión del modo de ser del hombre-comunero peruano, empeoran las cosas y son los principales obstáculos para llegar al entendimiento y para lograr una gestión exitosa del conflicto".  101  APPENDIX 3: TRAINING AS A POTENTIAL INITIATIVE Table A3-1: Training as an Initiative to Improve Employee–Community Interactions Code 3  5  7  10  11  12  13  Question 7 – Comments Human Resources, No: "Training does not apply to interpersonal relationships". Community Relations, Yes: "To begin with, mining operations must hire only qualified personnel for positions at the community relations department. Then, mining companies should be very careful during the analysis of the communities' internal relationships processes. They must not fall in the "quick fixes" game. Relationships must be created based on respect and trust". Finance, No: "I believe it is a way, but it may not be the most effective one". Community Relations. Yes. "Through training we are able to show the mechanisms we use when interacting with the communities". Geology, Yes: "Training is essential. Explorers are the first ones to be in contact with local communities. Therefore, they must be able to give basic explanations about the exploration works. Moral behaviour must be impeccable, respect and honesty must be demonstrated. Local communities have strengths and weaknesses that staff must know to be able to develop a better company - community relationship". Logistics, Yes: "Community relations are also affected by employees' behaviour. Their behaviour should be aligned to the community relations policy of the company. Initiatives of mining companies should not only include the areas directly involved, but the entire company". Communications, Yes: "Community relations departments are integrated by multidisciplinary teams that provide different visions of the same social reality. This is good as long as it is possible to get various proposals for action. Yet, without a common basis of understanding (from the sociological and anthropological perspective, for example) these different points of view may no longer represent an advantage but a challenge".  14  Environmental, Yes: "Training focused on community relations will always be important as it will improve the "WIN - WIN" negotiation strategies".  15  Environmental, Yes: "Informed people always face problems in a better way, and if they eventually have to interact with local communities, they will be able to do it effectively".  102  Table A3-1: Training as an Initiative to Improve Employee–Community Interactions Code  Question 7 – Comments  18  Environmental, Yes: "Mining activities remain unknown for many people".  19  Business Development & Planning, Yes: "Through training, employee commitment can be achieved":  20  21  22  23  24  27  28  29  31  32  Environmental, No: "Because training (understood as seminars and courses) does not have the same impact as doing things in the field, training should be in the field, building relationships directly". Operations, Yes: "Employees will be more aware that mining activities need to be done in collaboration with the community in order to get mutual benefit". Operations, No: "If training is at a technical level, no. What is needed is a training focused on internalizing values and identities that go beyond theory". Operations, No: "This initiative is focused on improving the image of the mining industry and not company-community relationships". Operations, Yes: "It makes possible to build capacities. However, mining companies should also provide support to the communities directly impacted through training in different areas". Community Relations, Yes: "We are currently working on that." Community Relations, Yes: "Yes but only if training takes into account the ethical factor. At the community relations department we are a multidisciplinary team with different perspectives and methods to deal with emerging conflicts. Conflicts are always case specific". Communications, Yes: "Training is effective only if it is applied. I think that what matters is to be able to apply the knowledge". Logistics, Yes: "Staff continuously trained will interact more effectively with the local people. It is a good initiative to have in mind". Community Relations, Yes: "Training is essential not only for those working at community relations departments, but for all employees that interact daily with local communities, including contractors".  103  Table A3-2: Training as an Initiative to Improve Interactions - Spanish Code 3  5  Question 7 – Comments Human Resources, No: "La capacitación no aplica para relaciones personales". Community Relations, Yes: "Para empezar las operaciones mineras deben contratar a personal idóneo para las posiciones de relaciones comunitarias, luego las compañías mineras deben ser muy acuciosos en el análisis de los procesos de interrelacionamiento que tienen con las comunidades, no caer el en juego del “apaga incendios” y no generar relaciones basadas en el respeto y confianza".  7  Finance, No: "Creo que es un camino pero quizás no el más efectivo".  10  Community Relations. Yes: "Mediante las capacitaciones mostramos los mecanismos mediante los cuales interactuamos con las comunidades".  11  12  13  14  15  18  Geology, Yes: "La capacitación es fundamental, son los exploradores los primeros en tener contacto con las comunidades y tienen que estar capacitados para explicar a los comuneros sobre los trabajos de exploración. El comportamiento moral debe ser impecable, mostrando respeto y honestidad con los comuneros. Las comunidades tienen virtudes y defectos que deben de ser conocidos por el personal de la empresa minera para tener una mejor relación Comunidad - Empresa". Logistics, Yes: "La relación con la comunidad incluye también el comportamiento adecuado de los empleados, alineado a la política de la empresa de relaciones con la comunidad. El esfuerzo de la empresa no solamente debe incluir a las áreas involucradas sino a toda la empresa en su conjunto". Communications, Yes: "Los equipos de relaciones comunitarias son multidisciplinarios lo que deviene en visiones diversas de una misma realidad social. Esto es bueno en la medida que se pueden obtener distintas propuestas de intervención; no obstante, sin una base de común entendimiento (desde la perspectiva sociológica y antropológica, por ejemplo) estas visiones diversas pueden dejar de convertirse en una ventaja para tornarse en una dificultad". Environmental, Yes: "La calidad humana y el conocimiento de la idiosincrasia de las comunidades del entorno permiten establecer mejores relaciones siempre". Environmental, Yes: "Siempre las personas con mayor conocimiento enfrentan los problemas de mejor manera, y si alguna vez les toca el interactuar con la comunidad sabrán salir adelante". Environmental, Yes: "Muchos pobladores desconocen las actividades mineras". 104  Table A3-2: Training as an Initiative to Improve Interactions - Spanish Code 19  20  21  22  23  24  27  28  29  31  32  Question 7 – Comments Business Development & Planning, Yes: "A través de una capacitación podemos lograr ese compromiso de parte del empleado". Environmental, No: "Porque la capacitación (entendida como seminarios y cursos) no es lo mismo que hacer las cosas en el campo. El entrenamiento debe ser en el campo construyendo esas relaciones.". Operations, Yes: "Lo que pasa que el trabajador tomara conciencia de lo que realiza en el trabajo y que no lo puede hacer solo si no con la comunidad desarrollando un trabajo mancomunado en donde saben que los dos serán beneficiados". Operations, No: "Si la capacitación es a nivel técnica no, hace falta una capacitación e internalización de valores e identidades que vayan más allá de la teoría". Operations, No: "Esta mejora está orientada a mejorar las relaciones de la industria minera, no de las relaciones comunidad minería". Operations, Yes: "Si mejoran la capacidad personal por que podrán demostrar y fortalecer sus habilidades. Por parte de la empresa minera debería haber más apoyo social a las comunidades de impacto directo, mediante capacitaciones y cursos de capacitación en diferentes áreas.". Community Relations, Yes: "Actualmente se viene trabajando". Community Relations, Yes: "Sí, siempre y cuando en estas capacitaciones se tenga en cuenta el factor ético., en el caso del área de relaciones comunitarias somos un equipo multidisciplinario, por lo que tenemos diferentes perspectivas y maneras de tratar los conflictos que se presenten". Communications, Yes: "La capacitación es efectiva de acuerdo a la evaluación que se haga de ella. Creo que es importante el saber aplicarla más que escucharla". Logistics, Yes: "El personal con continua capacitación va responder mejor a las condiciones de interacción con los pobladores por lo tanto es una muy buena herramienta para tener en cuenta". Community Relations, Yes: "La capacitación es fundamental, no solo para los que trabajan en las áreas de relaciones comunitarias sino para todos los trabajadores de la empresa que establecen una relación cotidiana con las comunidades e incluso para las contratas.  105  APPENDIX 4: IF NO, WHAT WOULD BE AN EFFECTIVE INITIATIVE? Table A4-1: If No, What Would Be an Effective Initiative? Code  Question 8 – Comments  2  Environmental, No: "Even when this training involves society, provides knowledge related to good business practices and builds confidence, initiatives must be bi-directional to be more effective".  3  Human Resources, No: "Visits to the mine site. Provide information about the production process and the considerations currently taken on safety and environmental issues to protect the employees and the environment".  6  Environmental, No: "Improve levels of communication when dealing with complaints and claims. Provide support for the transfer of key technical knowledge such as environmental concepts. Be transparent and not make promises that cannot be met".  7  Finance, No: "A major initiative is to promote the engagement of different areas of the company in the development of the communities. E.g. the construction of a school. Participating actively in this task, I believe, creates more awareness and creates a bond with the community".  20  Environmental, No: "Propose a Win - Win negotiation model for communities. For many communities mining is their only option. That is not a negotiation. It should be part of the government's responsibilities to create local opportunities. Propose market mechanisms to the company-community relationship so that there is a supplier and a customer. The paternalistic model has given poor results to mining".  22  Operations, No: "Promote respect for the cultural, physical, social and political environment of the areas of influence. Training in values, I think, is the starting point of any relationship either between employees, communities or between company and communities".  23  Operations, No: "Company-community relations must be seen as "cooperation - integration" relationships where parties collaborate with each other, taking into account that the socioeconomic and cultural organization of the community has been modified".  30  Community Relations, No: "Create together with the community, the development plans that the community needs".  106  Table A4-2: If No, What Would Be an Effective Initiative? - Spanish Code  Question 8 – Comments  2  Environmental, No: "Si bien involucran a la población, brindan conocimientos relacionados a las buenas prácticas operativas y generan confianza; las medidas más efectivas para mejorar estas interacciones deben ser de naturaleza bi-direccional".  3  Human Resources, No: "Visitas a la mina, informando el proceso productivo y los cuidados que se tienen en seguridad y medio ambiente para cuidar al trabajador y no afectar al medio ambiente".  6  Environmental, No: "Mejorar los niveles de comunicación en la atención de las quejas y reclamos. Apoyar en el entendimiento de algunos aspectos técnicos claves como conceptos de medio ambiente. Hablarles claro, sin rodeos ni hacer promesas que no puedan ser cumplidas".  7  20  22  23  30  Finance, No: "Una iniciativa importante es el de promover la participación directa de las distintas áreas en actividades de desarrollo de las comunidades. Por ejemplo; la construcción de un centro educativo, participar activamente de ese hecho creo que crea más conciencia en el trabajador que una capacitación y crea un lazo con la comunidad". Environmental, No: "Proponer un modelo de negociación Win – Win para las comunidades. Ahora ellas no negocian, porque la minería es su única alternativa. Eso no es negociación. Se debe crear más oportunidades y esa es una labor que compete al estado. Proponer mecanismos de mercado a esta relación, de modo que se trate de un proveedor y un cliente. El asistencialismo ha dado pésimos resultados en el modelo minero". Operations, No: "Promover el respeto por el medio ambiente cultural, físico, social y político de las zonas donde la compañía tiene influencia. Capacitación en valores, creo que es el punto de partida para empezar cualquier relación ya sea entre empleados de la compañía, entre la comunidad o entre la compañía y la comunidad". Operations, No: "Hay que ver la relación comunidad minería como una relación de cooperación – integración en el que ambas partes se nutren la una de la otra y en la que la organización socioeconómica y cultural de la comunidad ha sido modificada". Community Relations, No: "Crear juntos el proceso de desarrollo que la comunidad requiere".  107  APPENDIX 5: IF YES, WHAT WOULD BE THE TRAINING NEEDED? Table A5-1: If Yes, What Would Be the Training Needed? Code  1  4  5  8  Question 9 – Comments Environmental, Yes: "There are things that go beyond what training can and should provide. E.g. genuine respect and tolerance towards others. It is hard to explain abstract concepts in simple words. Everything begins with a basic relationship where trust is essential. It would not be a bad idea to cultivate emotional intelligence. It could help in many circumstances". Environmental, Yes: "Develop codes of ethics and promote more interactions with the communities. Emphasize that even if community members are not technically skilled people (but often working in specific jobs under the guidance of mining employees); they are not people to take advantage of. In the end, local communities have the last word in granting the social license to operate. Their treatment should be fair since the first contact". Community Relations, Yes: "Work on assertive communication (which means respecting the other and effectively transferring ideas and messages) and on project development and management. There is a lack of team work in the industry. Everyone believes their idea is the best, although not necessarily. It would be better to work from a perspective of identifying common opportunities". Operations, Yes: "Training related to attitudes and behaviour. Also encourage volunteering jobs in the community".  9  Environmental, Yes: "Interpersonal relationships, negotiation strategies and conflict management".  10  Community Relations, Yes: "Topics related to the Environmental Policies and the Corporate Social Responsibility of the company".  11  12  Geology, Yes: "Mining personnel must be trained in human relations, reinforcing values like honesty. The staff of the leading companies in mining operations should have the proper psychological profile to perform in diverse cultural settings. There are very good professionals in mining explorations and operations, but they interact poorly with the local community members harming the overall company-community relationship". Logistics, Yes: "It should be part of the community relations policy of the company, and should be included in the recommendations for the personnel. The training should consider the needs, feelings, interests and perspectives of the community".  108  Table A5-1: If Yes, What Would Be the Training Needed? Code  Question 9 – Comments  13  Communications, Yes: "Training in local culture and cross-cultural communication. Also training in communication for development".  14  Environmental, Yes: "Many topics, but maybe the most important one: conflict management".  15  16  17  18  19  21  24  25  26  Environmental, Yes: "Training topics should be: 1. respect for local community culture and 2. Equal treatment for community members and mine personnel". Environmental, Yes: "Mining employees must understand the importance of good relationships with the communities. This should be repeated incessantly until it becomes part of the values of the company and of employees themselves". Environmental, Yes: "Effective communication training - both for communities and employees - for them to be able to engage in dialogue, learn from each other, gain trust and improve their relationship". Environmental, Yes: "Increase awareness about mining activities". Business Development & Planning, Yes: "Training based on organizational and individual values, development of interpersonal skills, leadership, conflict management and effective communication". Operations, Yes: "Mining personnel is not trained to live in community. That is why they cannot develop good relationships. Mining personnel should be in direct contact with local communities in order to learn what to do and how to interact with them". Operations, Yes: "Training will promote the development of employees at a personal level". Community Relations, Yes: "It is very important to work on aspects related to personal development. In our case we try to focus on promoting the culture and values of the company". Communications, Yes: "Employees must have three basic skills: personal, professional and obviously, experience. Only then employees that interact with local communities will be able to promote and/or manage policies that benefit both company and community".  109  Table A5-1: If Yes, What Would Be the Training Needed? Code  Question 9 – Comments  27  Community Relations, Yes: "In many mining companies there is a large percentage of unskilled employees with no experience and a high degree of illiteracy. Based on this reality, it is essential to develop training programs to build capacities".  28  Community Relations, Yes: "Staff should be trained in multiculturalism, leadership, values and communication".  29  31  32  Communications, Yes: "I believe that in addition to training, workshops should be implemented to strengthen human capacities (values) and emotional intelligence. Many of the conflicts in mining occur at an individual level. Support and encouragement at a personal level is needed" Logistics, Yes: "Training will have to include topics related to Community Relations, Environmental Management and Human Resources". Community Relations, Yes: "Some topics that I will consider important for training sessions are: Intercultural Communication, Communication for Development, Corporate Social Responsibility and Conflict Management".  110  Table A5-2: If Yes, What Would Be the Training Needed? - Spanish Code  1  4  5  8  9 10  11  12  Question 9 – Comments Environmental, Yes: "Hay cosas que van más allá de lo que una capacitación puede y debe brindar, el genuino respeto al interlocutor y tolerancia hacia sus ideas es una de ellas. Una de las cosas más difíciles es explicar en palabras simples conceptos abstractos, todo parte de una relación humana, sin confianza no se llega a ninguna parte, no sería mala idea cultivar la inteligencia emocional, ayudaría en muchas circunstancias". Environmental, Yes: "Códigos de comportamiento y mayor interacción con las comunidades, haciendo énfasis en que si bien no son personas técnicamente capacitadas (y que quizás estén bajo el mando de algún empleado en trabajos específicos) no son personas de las cuáles se deban aprovechar. Finalmente ellos tienen la última palabra para dar la licencia social a los proyectos mineros y el trato con ellos desde el primer contacto debe ser igualitario". Community Relations, Yes: "Trabajar sobre comunicación asertiva (que implica respetar al otro y transmitir eficientemente las ideas y mensajes) y sobre el tema de gestión de actividades y proyectos de desarrollo, falta mucho de eso en el sector, cada quien cree que su idea es la mejor cuando no necesariamente eso es así, sino que sería mejor trabajar desde una perspectiva de identificación de oportunidades conjuntas". Operations, Yes: "Las relacionadas con temas de actitud y comportamiento. Motivar temas de voluntariado dentro de la comunidad". Environmental, Yes: "Relaciones interpersonales, negociaciones y manejo de conflictos". Community Relations, Yes: "Temas relacionados al manejo ambiental y social de la empresa". Geology, Yes: "El personal minero tiene que ser capacitado en relaciones humanas, reforzar los valores de honestidad. El personal de las empresas mineras destacadas en las operaciones mineras debería tener un perfil psicológico apropiado para desenvolverse en un medio Comunal diverso. Existen muy buenos profesionales en la exploración y operación minera, pero su trato con los comuneros es incorrecto y perjudicial para las relaciones empresa-comunidad". Logistics, Yes: "Debería enmarcarse en la política de relaciones comunales de la empresa, y en las recomendaciones de las áreas o personas involucradas tomando en consideración las necesidades, sentimientos, intereses y perspectiva de la comunidad".  111  Table A5-2: If Yes, What Would Be the Training Needed? - Spanish Code 13  Question 9 – Comments Communications, Yes: "Formación en cultura local y diálogo intercultural, capacitación en comunicación para el desarrollo".  14  Environmental, Yes: "Varios temas, pero uno de ellos y de repente el más importante: el manejo de conflictos".  15  Environmental, Yes: "Los temas de capacitación deben ser: 1. El respeto a la cultura de las comunidades aledañas a las minas 2. Igualdad de trato personal de mina y comunidad".  16  Environmental, Yes: "Hay que hacer que todos los empleados de la mina entiendan la importancia de una buena relación con la comunidad, repetirlo hasta el cansancio y hacer que forme parte de los valores de la empresa. Y que cada uno de los empleados asuma como suyos estos valores".  17  Environmental, Yes: "Se pueden emplear cursos de comunicación efectiva, tanto a pobladores de comunidades como a los trabajadores para que comiencen a tener un mejor manejo de los diálogos entablados, conocerse más, entrar en confianza y poder cambiar el clima de vecindad".  18  19  21  24  25  Environmental, Yes: "Conocimiento sobre las actividades mineras". Business Development & Planning, Yes: "Una capacitación basada en los valores como organización e individuo, desarrollo de habilidades interpersonales, liderazgo, desarrollo de conflictos y comunicación efectiva". Operations, Yes: "El personal minero no se encuentra capacitado para vivir en comunidad, es por ello que no pueden tener buenas relaciones con las demás personas, pero lo que se haría es que estos estén en contacto directo con ellos para poder saber qué hacer, y como actuar con ellos". Operations, Yes: "La capacitación ayudara al desarrollo personal de cada trabajador". Community Relations, Yes: "Es muy importante trabajar los aspectos relacionados al desarrollo personal. En nuestro caso buscamos difundir mucho lo referido a la cultura organizacional y valores".  112  Table A5-2: If Yes, What Would Be the Training Needed? - Spanish Code  26  27  28  29  31  32  Question 9 – Comments Communications, Yes: "Los empleados deben tener tres capacidades básicas: formación, educación y experiencia, obviamente; ahora las áreas que tengan relación con las comunidades, estarán en la capacidad de difundir y/o gestionar políticas de bien común para ambas partes". Community Relations, Yes: "Actualmente en el ámbito que venimos trabajando en muchas de las empresas mineras, encontramos un gran porcentaje de mano de obra sin calificar con preparación básica de pico y palana y con un alto grado de analfabetismo; bajo esta realidad es fundamental trabajar en programas de capacitación que ayude a desarrollar capacidades". Community Relations, Yes: "Se debe capacitar al personal en temas de multiculturalidad, liderazgo, valores y comunicación". Communications, Yes: "Creo que además de las capacitaciones se deben aplicar talleres de fortalecimiento humano, de desarrollo de capacidades, inteligencias múltiples, incluso de valores; muchos de los problemas con la minería son factor persona, entonces se necesita un trato psicológico de apoyo y fortalecimiento. Esa es una manera de asegurar la efectividad en su quehacer" Logistics, Yes: "Los temas de capacitación tendrían que ver mucho con el tema de relaciones comunitarias, medio ambiente y recursos humanos". Community Relations, Yes: "Algunos temas que considero importantes para tales ciclos de capacitación son: Comunicación Intercultural, Comunicación para el Desarrollo, Responsabilidad Social y Gestión de Conflictos".  113  APPENDIX 6: CURRENT TRAINING IN MINING COMPANIES Table A6-1: Current Training in Mining Companies Code 2  6  7 9  13  17  19 20 21  22  25  27  30  Question 10 – Comments Environmental: "Code of ethics, information about local, social and political structure, etc." Environmental: "Yes, as set in corporate policies. It includes aspects like respect towards communities and their traditions". Finance: "It is part of the corporate policy and is included in the initial induction given to any person hired by the company". Environmental: "Negotiations and Community Relations". Communications: "In coordination with the communications management, the social responsibility management is developing a training based on communication for development and communication skills". Environmental: "There is a workshop that teaches how to improve communication and feedback processes between areas. This could be applied when interacting with communities. However, the same training should also be provided to local communities". Business Development & Planning: "The company offers supervisors a leadership training program that includes modules about effective communication and conflict management". Environmental: "During the initial induction process" Operations: "Companies have a new perspective about these issues and have begun to work on it". Operations: "There are lectures about Corporate Social Responsibility, but they are not effective enough given the background of the mining industry in the country". Community Relations: "We have been working on the development of leadership skills aimed precisely at improving working relationships". Community Relations: "Training about our behaviour in daily interactions with peers, community members and society". Community Relations: "Relationship management, conflict management, negotiation, and regarding local culture, health, education and development".  114  Table A6-2: Current Training in Mining Companies - Spanish Code 2  6  Question 10 – Comments Environmental: "Códigos de conducta, información de la estructura social y política, etc.". Environmental: "Si, si esto está establecido en su política de responsabilidad social o política corporativa, esto puede ser difundido entre los trabajadores. En ella se incluyen aspectos como respecto a las comunidades y sus costumbres".  7  Finance:"Esta dentro de su política y es parte de la inducción inicial a cualquier persona que ingrese a la empresa".  9  Environmental: "Negociaciones y relaciones comunitarias".  13  17  19  20 21  22  Communications: "En coordinación con la Gerencia de Comunicaciones, la Gerencia de Responsabilidad Social viene desarrollando un proceso de capacitación en comunicación para el desarrollo y de mejora de habilidades comunicacionales". Environmental: "Existe un taller que enseña a tener mejor comunicación y retroalimentación entre áreas, uno puede aplicar esto a las comunidades, lo que falta son estos mismos cursos a las comunidades". Business Development & Planning: "La compañía tiene un programa de desarrollo de habilidades de liderazgo para los supervisores donde se incluyen módulos de comunicación efectiva, desarrollo de conflictos, liderazgo, etc.". Environmental: "En la inducción a la labor minera" Operations: "Las compañías mineras están con una nueva visión sobre esto es por ello que han empezado a trabajar en ello". Operations: "Realiza charlas de responsabilidad social, pero éstas son insuficientes dados los antecedentes de las actividades mineras en el país".  25  Community Relations: "Venimos trabajando intensamente programas de desarrollo de estilos y competencias de liderazgo justamente tendientes a mejorar las relaciones laborales".  27  Community Relations: "Capacitaciones acerca de nuestro comportamiento en el interactuar diario entre compañeros, miembros de nuestra comunidad y sociedad".  30  Community Relations: "Desde el manejo de relaciones humanas, manejo de conflictos, negociación, sobre la cultura local, salud, educación, desarrollo, etc.".  115  APPENDIX 7: RECOMMENDATIONS TO IMPROVE CURRENT TRAINING Table A7-1: Recommendations to Improve Current Training Code 2  4  6  7  Question 12 – Comments Environmental, Average: "Encourage all of those involved in the project to engage in activities that enforce horizontal and egalitarian relationships with the local communities". Environmental, Average: "In my experience, I would reinforce the interactions with the communities. Engage employees with the local culture, customs and festivals. A better understanding of how the community works and lives would make employees have more consideration and respect towards the entire community and its members". Environmental, Poor: "Visits to the communities and attitudes towards local communities’ members. Help employees internalize the local culture". Finance, Average: "Show more results that could be obtained from good relationships between companies and communities. This as a form of motivation".  9  Environmental, Average: "Promote the Social Responsibility and Resource Management (mainly water and soil) developed in the project’s areas of influence, as a way to create awareness in employees"  10  Community Relations, Good: "Training should be given by each of the heads of the different departments of the mining unit. It is necessary to engage the heads of each department to show a commitment at all levels”.  17  Environmental, Poor: "Training should also be provided to community members and its leaders".  19  Business Development & Planning, Good: "Training effectiveness should be monitored through periodic updates".  20  Environmental, Average: "Make it more experiential. With the assistance of the Community Relations department, each area should be in charge of a community development project. Each department would then rotate its personnel to see how each project is being developed. It is extremely important to understand the community, but it is equally important that communities understand mining activities. Therefore, they should also visit the mine. Only from a mutual understanding, a horizontal communication can be achieved".  116  Table A7-1: Recommendations to Improve Current Training Code 21  22  23  Question 12 – Comments Operations, Good: "I think that there is still a lack of commitment". Operations, Average: "The partiality with which conflicts and community relations are perceived. Often the people in charge of the training come from different contexts and are not actually aware of the community’s reality". Operations, Fair: "The attitudes of employees".  25  Community Relations, Good: "It often lacks continuity and further work under the supervision of managers".  26  Communications, Average: "There should be more interactions between company and communities to minimize social conflicts and improve the relationships".  27  Community Relations, Good: "Involve also the families of our fellow miners. The behaviour of family members affects the image of the company. We often neglect the family causing serious social problems".  28  Community Relations, Poor: "Contents are too rigid. Training must be flexible and applicable to local realities".  29  Communications, Average: "A broad training that includes human aspects like attitudes, values and social skills".  31  Community Relations, Good: "I would focus more on issues related to Community Relations and Human Resources".  117  Table A7-2: Recommendations to Improve Current Training - Spanish Code 2  4  6  7  9  10  17  19  20  Question 12 – Comments Environmental, Average: "Fomentar participación en actividades de relacionamiento, horizontales y en iguales condiciones para todos los involucrados en el proyecto". Environmental, Average: "En mi experiencia yo reforzaría el tema de interacción con las comunidades, involucrándolos no sólo en temas laborales sino también conocer sus costumbres, su cultura, sus festividades. El entender mejor como funciona y vive una comunidad, integrándolas como parte de las costumbres de los empleados haría que se tenga una mayor consideración y respeto hacia la comunidad en su totalidad como a sus integrantes". Environmental, Poor: "Visita a las comunidades y trato hacia las personas de la comunidad. Interiorizar la cultura de las comunidades en los empleados de la compañía". Finance, Average: "Mostrar más resultados que se podrían obtener de una buena relación entre la industria minera y las comunidades .Como un tipo de motivación". Environmental, Average: "Difusión de los resultados de la línea Base Social y gestión de recursos (agua y suelo principalmente) en el área de influencia del proyecto para mejorar toma de conciencia de los empleados" Community Relations, Good: "Que la capacitación sea dada por cada uno de los Jefes o responsables de las diferentes áreas de la unidad minera a su personal, de tal forma que se busque un involucramiento de las “cabezas” de cada departamento y de esta forma se vea como un compromiso a “todo nivel" Environmental, Poor: "Estas capacitaciones también deben dirigirse a las comunidades y sus representantes". Business Development & Planning, Good: "Se debe realizar un seguimiento a través de una actualización periódica respecto del entrenamiento recibido". Environmental, Average: "Hacerla más vivencial. Encargar a cada área un proyecto de desarrollo comunitario con la asistencia del área de RRCC. Cada área rotaria su personal para ver cómo va el proyecto. Es sumamente importante entender a la comunidad, pero es igualmente importante que la comunidad entienda la labor minera y por ello ellos deben visitar la mina. Solo desde un mutuo entendimiento puede salir una comunicación de igual a igual".  118  Table A7-2: Recommendations to Improve Current Training - Spanish Code 21  22  23  25  26  27  28  29  31  Question 12 – Comments Operations, Good: "Yo creo que a las personas les falta el compromiso, y eso es lo que falla aún". Operations, Average: "La forma parcial de percibir los conflictos y las relaciones con la comunidad, muchas veces quienes capacitan no conocen la realidad de las comunidades porque proviene de otro contexto". Operations, Fair: "Las actitudes de los trabajadores". Community Relations, Good: "Muchas veces lo que falta es continuidad y mayor trabajo con la supervisión de mando medio". Communications, Average: "Debe haber más interacción entre compañía y comunidad, para minimizar conflictos sociales y mejorar la relación". Community Relations, Good: "Involucrar también a las familias de nuestros compañeros mineros, el comportamiento de la familia juega un papel importante de la imagen del trabajador minero, se da el caso que trabajamos mucho con el trabajador y muchas veces descuidamos a la familia, lo que nos ocasiona problemas sociales serios". Community Relations, Poor: "Los contenidos, son muy rígidos, las capacitaciones deben ser flexibles y adaptarse a la realidad local". Communications, Average: "Una capacitación integral, que incluya la parte humana, la actitud, los valores, las cualidades y la capacidad efectiva en su objetivo". Community Relations, Good: "Le daría más importancia a los temas de relaciones comunitarias y recursos humanos".  119  APPENDIX 8: THE POTENTIAL OF TRAINING Table A8-1: The Potential of Training Code  Question 13 – Comments  1  Environmental, To a great extent: "Those working for a mining company (directly or indirectly) are, in the eyes of the local people, the face of the company. Inculcate values is not easy. This is a long-term task but it is the best way to achieve lasting results".  2  Environmental, To some extent: "Conflicts will remain essentially a negotiation approach originated by political administrative gaps"  5  Community Relations, To a great extent: "In the day-to-day it is easy to lose perspective and take opportunities for granted. Opportunities that otherwise could improve the relationships with the communities and could also redirect the focus of community relations department."  6  Environmental, To a great extent: "Employee-community interactions are usually given during working hours".  7  8  9  Finance, To some extent: "I believe it is a way but it is not the only one and should not be the only one". Operations, To a great extent: "Mining employees must understand that they are part of the balance that must exist between company and communities. They must be active actors in the daily improvement of relationships". Environmental, To a very great extent: "The political situation of the country and the neighbouring countries has a strong influence on the communities. Communities are many times easily influenced by people with specific political and personal interests".  10  Community Relations, To a great extent: "Mining personnel (many times members of the local communities) should promote in their community the environmental and social policies implemented by the company".  11  Geology, To a very great extent: "I believe values are acquired at home, but can be reinforced with training as part of the professional development".  12  Logistics, To a very great extent: "The interactions of communities with technical staff are often more frequent and of greater impact than the interactions with the specialized personnel (public relations or community relations). Guidelines for effective interactions with local communities can strengthen the strategy of the company. Better recruitment policies could also be beneficial".  120  Table A8-1: The Potential of Training Code  Question 13 – Comments  14  Environmental, To a great extent: "It should always be a priority to improve the relationships with the local communities. Their claims must be addressed on time. Always thinking on finding a balance between what they expect from us and what we need from them as a community".  15  Environmental, To some extent: "It is important to note that training must be directed only for the personnel working directly with local communities and not for all employees. Some of them never leave the mine and have almost no contact with the communities".  17  18  19  20  21  22  Environmental, To a very a great extent: "By achieving an efficient way of communication and earn trust; better relationships and development opportunities can be created. These opportunities will allow community members to express themselves and will also prevent them from being manipulated by people with personal agendas". Environmental, To a great extent: "The more the mining activity is understood, fewer conflicts will emerge". Business Development & Planning, To a great extent: "However, it is necessary to stay in touch with local communities through visits and field work. It is also necessary to engage employees in workshops to better understand the community reality. What is not known and understood cannot be loved". Environmental, To some extent: "There are pre-existing factors that will need more than training": Operations, To a very great extent: "Because communities would want to work hand in hand with mining companies and there would not be conflicts". Operations, To a very great extent: "If personnel are adequately trained in values and respect, they will start recognizing local communities as a complement for the development of the mining activities and not as an obstacle".  23  Operations, To some extent: "Training is always given to get a benefit for the company and not for the community".  24  Operations, To a great extent: "Dialogue and negotiation must be the most important link between companies and communities".  25  Community Relations, To a great extent: "When working on improving the capabilities or technical skills of employees, we get positive results by transmitting a message of excellence, growth and self-improvement. When working on the "soft" aspects such as interpersonal skills, values and so on, we improve the intercultural relations within the company and promote bonding". 121  Table A8-1: The Potential of Training Code 26  28  29  Question 13 – Comments Communications, To a great extent: "This would ensure a more harmonious society and good image to foreign investments". Community Relations, To a very great extent: "If staff is properly trained, better company-community relationships will be accomplished". Communications, To a great extent: "Poor information and ineffective training are great sources of conflict. The best way to avoid these conflicts is through efficient communication. That associated with the miners' emotional stability and their willingness to reconcile, understand and help without arrogance".  31  Logistics, To a very great extent: "It would help a lot. Yet, it would also be necessary to evaluate training for community members. A good company-community relationship also depends on them".  32  Community Relations, To a very great extent: "Training could give at best, a "human face" to large mining corporations. It could help develop an appropriate stakeholder management work and reach a better understanding of the social context of the operations. This will encourage the implementation of better strategies for preventing crises and managing conflicts".  122  Table A8-2: The Potential of Training - Spanish Code  1  2  5  6  7  8  9  Question 13 – Comments Environmental, To a great extent: "Todos los que laboran para una empresa minera, directa o indirectamente, son a los ojos de la población local el rostro de la empresa, inculcar valores no es fácil, deben ser cultivados, es una tarea de largo plazo, pero es la mejor manera de lograr resultados duraderos". Environmental, To some extent: "Los conflictos seguirán siendo esencialmente una negociación que nace en los vacíos político-administrativos". Community Relations, To a great extent: "Cuando uno está en el día a día a veces pierdes la perspectiva de las cosas y da por ciertas muchas cosas que pueden significar un recurso importante en el mejoramiento de las relaciones con las comunidades y el enfoque de trabajo desde relaciones comunitarias". Environmental, To a great extent: "Muchas veces la interlocución entre trabajadores y personas con la comunidad es dada durante la operación de una empresa". Finance, To some extent: "Creo que es un método pero no el único y no debe ser solamente el único". Operations, To a great extent: "El personal minero debe entender que forma parte del equilibrio que debe existir entre la comunidad y la empresa minera por lo cual deben ser miembros activos para mejorar día a día las relaciones entre ambos". Environmental, To a very great extent: "La situación política del país y de los países vecinos tiene una fuerte influencia en el comportamiento de las comunidades, que son fácilmente influenciables por gente que los utiliza por sus credos políticos o por intereses personales".  10  Community Relations, To a great extent: "El personal minero (muchas veces comunero) debe ser el difusor hacia su comunidad de las prácticas ambientales y sociales de la empresa".  11  Geology, To a very great extent: "En principio creo que los valores se van adquiriendo desde casa, pero pueden reforzarse con la capacitación como parte del desempeño profesional, laboral".  12  Logistics, To a very great extent: "La interacción del personal minero muchas veces es más frecuente y de mayor impacto que la del personal especializado (relaciones públicas o comunitarias) de la empresa. Lineamientos relacionados al trato con las comunidades pueden consolidar la estrategia de la empresa con las comunidades. Asimismo, políticas de incorporación de personal podrían ser beneficiosas".  123  Table A8-2: The Potential of Training - Spanish Code  14  15  17  18  19  20  21  22  23  24  Question 13 – Comments Environmental, To a great extent: "Siempre debe ser prioridad mejorar en gran medida la relación con las comunidades. Debe interesarse por sus reclamos y atenderlos a tiempo, siempre pensando en buscar un equilibrio entre lo que ellos esperan de nosotros y los que nosotros necesitamos de ellos como comunidad". Environmental, To some extent: "Es importante señalar que las capacitaciones deben ser para el personal que trabaja directamente con las comunidades y no con el íntegro del personal de mina, pues algunos de ellos jamás salen de mina y no tienen contacto con las comunidades". Environmental, To a very a great extent: "Al tener una forma eficiente de comunicarse, desterrando prejuicios y entrando en confianza con los pobladores se puede generar mejores relaciones y oportunidades de desarrollo. Haciendo que la mayor cantidad de gente de las comunidades pueda expresarse se evita también que sean manipulados por ciertas personas con intereses meramente personales". Environmental, To a great extent: "Mientras más se entienda la actividad minera, menos conflictos". Business Development & Planning, To a great extent: "Sin embargo, es necesario establecer contacto con la comunidad a través de visitas, trabajo en campo, participación en talleres, de manera que puedas entender mejor la realidad de la situación. Lo que no conoces y entiendes, no lo amas". Environmental, To some extent: "Hay factores preexistentes que van a necesitar más que capacitación". Operations, To a very great extent: "Porque las comunidades van a querer trabajar de la mano con la minería y no habría conflictos". Operations, To a very great extent: "Si se capacita al personal adecuadamente con formación sólida en valores y respeto se va a lograr que los trabajadores vean en los pobladores a un complemento en la realización de sus actividades y no una limitación para su desempeño". Operations, To some extent: "Las capacitaciones siempre se dan en función a un beneficio para la compañía más no para la comunidad". Operations, To a great extent: "Dialogo y negociación es lo más importante entre ambas partes".  124  Table A8-2: The Potential of Training - Spanish Code  25  Question 13 – Comments Community Relations, To a great extent: "Cuando se trabaja en la mejora de las competencias o habilidades técnicas de los trabajadores, se obtiene resultados positivos por que se transmite un mensaje de superación, crecimiento y mejora de autoestima. Al trabajar en los aspectos más “blandos” o de habilidades interpersonales, de valores etc., contribuimos a mejorar las relaciones interculturales dentro de la empresa y a promover mayores lazos".  26  Communications, To a great extent: "Se lograría una sociedad más armoniosa, y buena imagen para la inversión externa".  28  Community Relations, To a very great extent: "Si hay un personal bien capacitado habrá mejores relaciones".  29  Communications, To a great extent: "La deficiente información y capacitación es una gran fuente de conflictos. La mejor manera de contrarrestar los problemas es a través de una eficiente comunicación; ello asociado a la seguridad emocional de los trabajadores mineros y la disposición de conciliar, comprender y ayudar, sin prepotencia".  31  32  Logistics, To a very great extent: "Ayudaría mucho, pero valdría la pena evaluar también el hecho de capacitar a los pobladores de las comunidades ya mucho depende ellos una buena relación EmpresaComunidad". Community Relations, To a very great extent: "La capacitación podría darle, en el mejor de los casos, un “rostro humano” a las grandes corporaciones de la industria extractiva minera. Puede contribuir a desarrollar un adecuado trabajo de Stakeholders Management y monitorear el contexto social de las operaciones para plantear las mejores estrategias, con el objetivo de prevenir crisis y gestionar adecuadamente el conflicto".  125  APPENDIX 9: ADDITIONAL COMMENTS Table A9-1: Additional Comments Code 1  2  5  6  9  12  Question 14 – Comments Environmental: "There are no fixed solutions or magic recipes. What works in a given context can be disastrous in another". Environmental: "Mining companies are not the only ones to blame for the conflicts. Conflicts often arise due to stakeholders' internal problems (ex. lack of coordination)". Community Relations: "The relationships between mining companies and local communities are based on human relations that should be based on respect. Mining companies must not lose track of where they want to go or what they want to do regarding their participation in the community development. Many times mining companies mistakenly believe "they have all the solutions". Communities have many valuable resources (tangible and intangible) that can be much more effective in the process of finding solutions for many of the companycommunity problems". Environmental: "If employees get to internalize the concept of respect to the culture, traditions and social aspects of the local communities; a good company-community relationship could be achieved. However, everything must start from the development and implementation of a clear Social Responsibility Policy based on transparency". Environmental: "In the country (with regard to question N°5) there are excellent regulations for the sector. However, communities have not directly gotten any benefit due to the government`s ineffective management and redistribution of mining royalties. The government also fails to promote a social ambience where respect between company and communities is assured and damage to third parties (i.e. by road blockages) is avoided". Logistics: "Many times the misunderstood interests of the communities are actually nothing other than the political interests of bad leaders who use people for their own benefit. The company should not only focus on training its own staff but also on training local community members. This could give the communities the tools to redefine their needs and be able to aspire to real benefits".  126  Table A9-1: Additional Comments Code  15  19  21  22  Question 14 – Comments Environmental: "The major cause of the poor mining - community relationships is the little success of mining companies when choosing appropriate professionals for community relations departments. This department usually provides the communities with gifts, prizes and handouts, spoiling them. The projects related to the communities should be of mutual participation where the communities can feel these projects are theirs". Business Development & Planning: "The relationship between mining companies and local communities is complex. It requires a complete and integrated analysis regarding their interactions. Training is not enough, but it is a first step". Operations: "Miners and communities should be working together so they can both benefit". Operations: "Companies, despite their area of influence, should consider the legitimacy of the local communities as a support for the mining activities".  29  Communications: "There are many outstanding people in mining companies, both intellectually and professionally. Yet, the fundamental problem remains in the human capacities. These professionals often forget that local communities also deserve respect and have the right to be listened. Conflicts are usually originated at a personal level".  32  Community Relations: "I believe the topic of the survey, training, is very important. Yet, it should be complemented by another important issue, that of recruitment. As indicated in question 6, companies in charge of the selection of community relations personnel often apply the same methodology use for recruiting other professionals like engineers, managers, doctors, anthropologists, sociologists and communicators. Community relations personnel should have different skills and abilities, plus experience and academic preparation. These employees should be recruited as part of a competence management model, which in Peru is still to be built".  127  Table A9-2: Additional Comments – Spanish Code  Question 14 – Comments  1  Environmental: "No existen soluciones fáciles ni recetas mágicas, lo que puede funcionar en determinado contexto puede ser catastrófico en otro".  2  Environmental: "Las mineras no son las únicas culpables en los conflictos mineros. Los conflictos nacen muchas veces de problemas internos de los actores como descoordinaciones internas".  5  Community Relations: "Que las relaciones entre el sector minero y las poblaciones vecinas se fundamentan en las relaciones humanas, que deberían estar sustentadas en el respeto, y en que las empresas mineras no pierdan de vista a donde quieren ir o que quieren hacer respecto a su participación en las comunidades. Muchas veces el sector minero asume roles “de que tiene todas las soluciones” y eso no es así, las comunidades tienen recursos valiosos (tangibles e intangibles) que pueden llegar a ser mucho más efectivos en el proceso de abordar las soluciones a muchas de las problemáticas comunitarias".  6  Environmental: "Si se llegase a interiorizar el concepto de respecto a la cultura, tradiciones y aspectos de vida social de las comunidades en los trabajadores de las empresas, esto puede generar un apoyo en lograr una buena relación entre comunidad-empresa. Sin embargo, todo debe de partir desde el establecimiento y aplicación de un política clara de responsabilidad social y transparencia hacia las comunidades".  9  Environmental: "En el país (con respecto a la pregunta 5), hay una excelente normatividad para el sector. Sin embargo, los beneficios a las comunidades no llegan de manera directa por la falta de decisión política del Estado para corregir la distribución de los tributos de la industria de manera que parte de ellos llegue directamente a las comunidades. Por otro lado, el Estado es débil para mantener una situación social donde prime el respeto entre las partes y con terceros que se perjudican muchas veces sin ser parte del conflicto (ej. toma de carreteras)".  12  Logistics: "Muchas veces los intereses no entendidos de las comunidades pasan por ser intereses políticos de algunos malos líderes que utilizan a la población para su propio beneficio. El trabajo de la empresa no solamente debe enfocarse en capacitar a su propio personal sino también en capacitar a la población de las comunidades para que logreen reestructurar sus necesidades y puedan aspirar a mejores beneficios".  128  Table A9-2: Additional Comments – Spanish Code  15  19  21  22  29  32  Question 14 – Comments Environmental: "Solo resaltar que el gran problema de las malas relaciones entre las comunidades y las mineras peruanas es el poco acierto que tienen las empresas mineras en elegir a los profesionales a cargo de las relaciones comunitarias. Una vez en los cargos solo se dedican a otorgar de regalos premios y de más limosnas a las comunidades, mal acostumbrando a la población. Todos los trabajos con las comunidades deberían ser de mutua participación donde los pobladores sientan que estos trabajos son suyos". Business Development & Planning: "Las relaciones entre empresas mineras y comunidad son complejas. Es necesario un análisis integral y completo respecto de sus interacciones, no es suficiente la capacitación pero es un primer paso". Operations: "Que las personas deben estar trabajando en conjunto para que todos salgan ganando, tanto los mineros como los de las comunidades". Operations: "Las actividades mineras cuales quiera que sea su ámbito de influencia no deben dejar de lado la legitimidad de la población como respaldo a sus actividades". Communications: "Existe mucha gente capaz en conocimientos y profesión dentro de la empresa minera; pero el problema fundamental es su capacidad humana, se olvidan de que tratan con personas, que también merecen respeto, atención y escucha. Los problemas generalmente son por personas". Community Relations: "Considero que el tema abordado es muy importante, el de la capacitación, pero debe ser complementado con otro asunto no menos trascendente, el de la selección de personal, tal como se indica en el enunciado de la pregunta 6. Muchas veces las compañías encargadas de tal selección para el área de relaciones comunitarias (los head hunters), aplican la misma metodología para toda clase de profesionales que van a las otras áreas de la empresa, como los ingenieros, administradores, médicos, antropólogos, sociólogos, comunicadores, etc. Los funcionarios de relaciones comunitarias deben tener una serie de habilidades, capacidades y destrezas especiales, además de la experiencia y preparación académica, que deben aplicar en su desempeño diario. Tales funcionarios deberían ser seleccionados en el marco de un modelo de gestión de competencias, que en el caso del Perú aún está por construirse. Allí hay una veta de investigación muy rica".  129  

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