creating shared value joanne farrell global head – health, safety, environment and communities
TRANSCRIPT
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About Rio Tinto
Europe
SouthAmerica
Australasia
Africa
Asia
NorthAmerica
Aluminium Copper Diamonds & MineralsEnergyIron ore
KeyMines and mining projects
Smelters, refineries, power facilities and processing plants remote from mine
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I will broadly address three points today
1 What is shared value and why it’s our approach
2 Our ingredients for success
3 Our challenges
Overview
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Shared value…
…can be defined as policies and operating practices that enhance the competitiveness of a company while simultaneously advancing the economic and social conditions in which it operates. Shared value creation focusses on identifying and expanding the connections between societal and economic progress.
SOURCE: Porter & Kramer 2011 ‘Creating Shared Value’ in Harvard Business Review
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The opportunities
Healthy communities
Operational progress
PartnershipBusiness
valueLocal jobs,
employment
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The potential costs
• Reputation impacts • Loss of value• Operational risk and delays • Fractured communities• Unemployment
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Banks Island, Canada
• Early stage diamond exploration programme
• Home to about 200 Innuvialuit people
• Early engagement raised importance of wildlife protection
• Wildlife monitoring programme established
• Two local people employed as monitors
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Quebec, Canada
Sponsorship of Saguenay-Lac-Saint-Jean symphony orchestra
Choir rehearsal, Jonquiere
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Sharing lessons learned
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•Build on past experiences•Lock in to business processes−Investment decision
making−Comprehensive post-
implementation reviews−Audit and assurance−Training and development−Human Resources
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Relationships
Agreement signing, Pilbara, Western Australia Jadar project, Serbia
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Challenges to realising the ambition
• Internal processes
•Perceptions
•Change
•Cyclical commodity market