csr in the apec mining sector · reflect the views of apec, aim-rvr csr center, and are without...

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CSR in the APEC Mining Sector Training Program Design Management Teaching Cases APEC Human Resources Development Working Group Capacity Building Network May 2011

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Page 1: CSR in the APEC Mining Sector · reflect the views of APEC, AIM-RVR CSR Center, and are without prejudice to Member’s ... PT INCO and the Karonsie Dongi Group …………………………

CSR in the APEC Mining Sector Training Program Design

Management Teaching Cases

APEC Human Resources Development Working Group

Capacity Building Network May 2011

Page 2: CSR in the APEC Mining Sector · reflect the views of APEC, AIM-RVR CSR Center, and are without prejudice to Member’s ... PT INCO and the Karonsie Dongi Group …………………………

Disclaimer

“The views expressed in this report are the opinions of the authors and do not necessarily reflect the views of APEC, AIM-RVR CSR Center, and are without prejudice to Member’s rights and obligations under the APEC.”

APEC Project No. HRD 03/2009A Prepared by: Asian Insitute of Manage-Ramon V del Rosario Sr. Center for Corporate Social Responsibility 4/F ACCM Bldg, Benavidez corner Trasierra Streets Legaspi Village, Makati City, Philippines Telefax: (632) 752-1208 Email: [email protected] Website: http://www.rve.aim.edu Prepared for APEC Secretariat 35 Heng Mui Keng Terrace Singapore 119616 Tel: (65) 68919 600 Fax: (65) 68919 690 Email: [email protected] Website: www.apec.org © 2011 APEC Secretariat APEC#211-HR-03.1 ISBN 978-981-08-8501-4

Page 3: CSR in the APEC Mining Sector · reflect the views of APEC, AIM-RVR CSR Center, and are without prejudice to Member’s ... PT INCO and the Karonsie Dongi Group …………………………

TABLE OF CONTENTS

PART TWO:

2.1 Training Program Design ………………………………………………… 2.1 – 2.9

2.2 Management Teaching Cases

1. SMI and the Blaans: Allies Towards Sustainable Development …………………………. TC 1 - 1-14

2. PT INCO and the Karonsie Dongi Group ………………………….. TC 2 - 1-10

3. Rebuilding Trust: The Rapu-Rapu Experience ……………………. TC 3 - 1-11

4. Antamina Mining Fund ………………………………………………. TC 4 – 1-13

5. Multi-site Implementation of CSR …………………………………. TC 5 – 1-16

Page 4: CSR in the APEC Mining Sector · reflect the views of APEC, AIM-RVR CSR Center, and are without prejudice to Member’s ... PT INCO and the Karonsie Dongi Group …………………………
Page 5: CSR in the APEC Mining Sector · reflect the views of APEC, AIM-RVR CSR Center, and are without prejudice to Member’s ... PT INCO and the Karonsie Dongi Group …………………………

Asia-Pacific Economic Cooperation

Page 6: CSR in the APEC Mining Sector · reflect the views of APEC, AIM-RVR CSR Center, and are without prejudice to Member’s ... PT INCO and the Karonsie Dongi Group …………………………
Page 7: CSR in the APEC Mining Sector · reflect the views of APEC, AIM-RVR CSR Center, and are without prejudice to Member’s ... PT INCO and the Karonsie Dongi Group …………………………
Page 8: CSR in the APEC Mining Sector · reflect the views of APEC, AIM-RVR CSR Center, and are without prejudice to Member’s ... PT INCO and the Karonsie Dongi Group …………………………
Page 9: CSR in the APEC Mining Sector · reflect the views of APEC, AIM-RVR CSR Center, and are without prejudice to Member’s ... PT INCO and the Karonsie Dongi Group …………………………
Page 10: CSR in the APEC Mining Sector · reflect the views of APEC, AIM-RVR CSR Center, and are without prejudice to Member’s ... PT INCO and the Karonsie Dongi Group …………………………

AN

NEX

2.1

: TRA

ININ

G P

ROG

RAM

DES

IGN

D

ay 1

D

ay 2

D

ay 3

D

ay 4

D

ay 5

Page 11: CSR in the APEC Mining Sector · reflect the views of APEC, AIM-RVR CSR Center, and are without prejudice to Member’s ... PT INCO and the Karonsie Dongi Group …………………………

CSR Framework

Source: Alfonso, Herrera and Roman, 2010

BUSINESS CONTEXT

Responsiveness

Effectiveness

Page 12: CSR in the APEC Mining Sector · reflect the views of APEC, AIM-RVR CSR Center, and are without prejudice to Member’s ... PT INCO and the Karonsie Dongi Group …………………………

Integrating Social Performance

Business Context

Mission andCore Values

Current Enterprise

Assets & Competencies

SHAREHOLDER VALUE

Footprint & Stakeholders

SOCIAL VALUE

Social Assets

Sustainability and Social Values

Source: Herrera, 2008

StrategyEngine

HW SW

LW

Herrera, 2009

Page 13: CSR in the APEC Mining Sector · reflect the views of APEC, AIM-RVR CSR Center, and are without prejudice to Member’s ... PT INCO and the Karonsie Dongi Group …………………………

Responsible Business

PhilosophyStrategyOperationsOwnershipStructureIndicatorsEvaluation

Little

Total

Form

al S

truc

ture

& P

roce

ss

AwarenessUnderstandingInvolvementEngagementCommitment

Weak StrongCulture of Responsibility

Weak

Balanced

StrategicAdvantage

Herrera, 2010

Page 14: CSR in the APEC Mining Sector · reflect the views of APEC, AIM-RVR CSR Center, and are without prejudice to Member’s ... PT INCO and the Karonsie Dongi Group …………………………

INTEGRATING CSR

CONTEXT

Issues, Objectives, Priorities

CSR Strategy

Elements & Implementation

Stakeholders: Concerns, Issues, Influence

Macro Environment

Corp Giving; Compliance; Value

Chain Mgt.; Strategy; Full Embed

Communication, Giving, Engagement, Partnering and

Collaboration

Evaluation

ContentContextActor

Process

COH

EREN

CE

Consistency of Policies, Accountabilities, Incentives

Players, owners, accountabilities, indicators

BusinessFootprint

Business Situation& Values

Herrera, 2010

Page 15: CSR in the APEC Mining Sector · reflect the views of APEC, AIM-RVR CSR Center, and are without prejudice to Member’s ... PT INCO and the Karonsie Dongi Group …………………………
Page 16: CSR in the APEC Mining Sector · reflect the views of APEC, AIM-RVR CSR Center, and are without prejudice to Member’s ... PT INCO and the Karonsie Dongi Group …………………………
Page 17: CSR in the APEC Mining Sector · reflect the views of APEC, AIM-RVR CSR Center, and are without prejudice to Member’s ... PT INCO and the Karonsie Dongi Group …………………………

Asia-Pacific Economic Cooperation

Page 18: CSR in the APEC Mining Sector · reflect the views of APEC, AIM-RVR CSR Center, and are without prejudice to Member’s ... PT INCO and the Karonsie Dongi Group …………………………
Page 19: CSR in the APEC Mining Sector · reflect the views of APEC, AIM-RVR CSR Center, and are without prejudice to Member’s ... PT INCO and the Karonsie Dongi Group …………………………

TC1-1

Page 20: CSR in the APEC Mining Sector · reflect the views of APEC, AIM-RVR CSR Center, and are without prejudice to Member’s ... PT INCO and the Karonsie Dongi Group …………………………

TC1-2

Page 21: CSR in the APEC Mining Sector · reflect the views of APEC, AIM-RVR CSR Center, and are without prejudice to Member’s ... PT INCO and the Karonsie Dongi Group …………………………

TC1-3

TC1-3

Page 22: CSR in the APEC Mining Sector · reflect the views of APEC, AIM-RVR CSR Center, and are without prejudice to Member’s ... PT INCO and the Karonsie Dongi Group …………………………

TC1-4

Page 23: CSR in the APEC Mining Sector · reflect the views of APEC, AIM-RVR CSR Center, and are without prejudice to Member’s ... PT INCO and the Karonsie Dongi Group …………………………

TC1-5

Page 24: CSR in the APEC Mining Sector · reflect the views of APEC, AIM-RVR CSR Center, and are without prejudice to Member’s ... PT INCO and the Karonsie Dongi Group …………………………

TC1-6

Page 25: CSR in the APEC Mining Sector · reflect the views of APEC, AIM-RVR CSR Center, and are without prejudice to Member’s ... PT INCO and the Karonsie Dongi Group …………………………

TC1-7

Page 26: CSR in the APEC Mining Sector · reflect the views of APEC, AIM-RVR CSR Center, and are without prejudice to Member’s ... PT INCO and the Karonsie Dongi Group …………………………

TC1-8

Page 27: CSR in the APEC Mining Sector · reflect the views of APEC, AIM-RVR CSR Center, and are without prejudice to Member’s ... PT INCO and the Karonsie Dongi Group …………………………

TC1-9

- - - - -

Page 28: CSR in the APEC Mining Sector · reflect the views of APEC, AIM-RVR CSR Center, and are without prejudice to Member’s ... PT INCO and the Karonsie Dongi Group …………………………

TC1-10

Page 29: CSR in the APEC Mining Sector · reflect the views of APEC, AIM-RVR CSR Center, and are without prejudice to Member’s ... PT INCO and the Karonsie Dongi Group …………………………

TC1-11

Page 30: CSR in the APEC Mining Sector · reflect the views of APEC, AIM-RVR CSR Center, and are without prejudice to Member’s ... PT INCO and the Karonsie Dongi Group …………………………

TC1-12

Page 31: CSR in the APEC Mining Sector · reflect the views of APEC, AIM-RVR CSR Center, and are without prejudice to Member’s ... PT INCO and the Karonsie Dongi Group …………………………

TC1-13

Page 32: CSR in the APEC Mining Sector · reflect the views of APEC, AIM-RVR CSR Center, and are without prejudice to Member’s ... PT INCO and the Karonsie Dongi Group …………………………

TC1-14

Page 33: CSR in the APEC Mining Sector · reflect the views of APEC, AIM-RVR CSR Center, and are without prejudice to Member’s ... PT INCO and the Karonsie Dongi Group …………………………

TC2-1

FIGURE 1: PT INCO’S OPERATIONS

Page 34: CSR in the APEC Mining Sector · reflect the views of APEC, AIM-RVR CSR Center, and are without prejudice to Member’s ... PT INCO and the Karonsie Dongi Group …………………………

TC2-2

Page 35: CSR in the APEC Mining Sector · reflect the views of APEC, AIM-RVR CSR Center, and are without prejudice to Member’s ... PT INCO and the Karonsie Dongi Group …………………………

TC2-3

Page 36: CSR in the APEC Mining Sector · reflect the views of APEC, AIM-RVR CSR Center, and are without prejudice to Member’s ... PT INCO and the Karonsie Dongi Group …………………………

TC2-4

Page 37: CSR in the APEC Mining Sector · reflect the views of APEC, AIM-RVR CSR Center, and are without prejudice to Member’s ... PT INCO and the Karonsie Dongi Group …………………………

TC2-5

-

- -

-

-

-

-

Page 38: CSR in the APEC Mining Sector · reflect the views of APEC, AIM-RVR CSR Center, and are without prejudice to Member’s ... PT INCO and the Karonsie Dongi Group …………………………

TC2-6

Page 39: CSR in the APEC Mining Sector · reflect the views of APEC, AIM-RVR CSR Center, and are without prejudice to Member’s ... PT INCO and the Karonsie Dongi Group …………………………

TC2-7

Page 40: CSR in the APEC Mining Sector · reflect the views of APEC, AIM-RVR CSR Center, and are without prejudice to Member’s ... PT INCO and the Karonsie Dongi Group …………………………

TC2-8

Page 41: CSR in the APEC Mining Sector · reflect the views of APEC, AIM-RVR CSR Center, and are without prejudice to Member’s ... PT INCO and the Karonsie Dongi Group …………………………

TC2-9

Page 42: CSR in the APEC Mining Sector · reflect the views of APEC, AIM-RVR CSR Center, and are without prejudice to Member’s ... PT INCO and the Karonsie Dongi Group …………………………

TC2-10

1

Page 43: CSR in the APEC Mining Sector · reflect the views of APEC, AIM-RVR CSR Center, and are without prejudice to Member’s ... PT INCO and the Karonsie Dongi Group …………………………
Page 44: CSR in the APEC Mining Sector · reflect the views of APEC, AIM-RVR CSR Center, and are without prejudice to Member’s ... PT INCO and the Karonsie Dongi Group …………………………
Page 45: CSR in the APEC Mining Sector · reflect the views of APEC, AIM-RVR CSR Center, and are without prejudice to Member’s ... PT INCO and the Karonsie Dongi Group …………………………
Page 46: CSR in the APEC Mining Sector · reflect the views of APEC, AIM-RVR CSR Center, and are without prejudice to Member’s ... PT INCO and the Karonsie Dongi Group …………………………
Page 47: CSR in the APEC Mining Sector · reflect the views of APEC, AIM-RVR CSR Center, and are without prejudice to Member’s ... PT INCO and the Karonsie Dongi Group …………………………
Page 48: CSR in the APEC Mining Sector · reflect the views of APEC, AIM-RVR CSR Center, and are without prejudice to Member’s ... PT INCO and the Karonsie Dongi Group …………………………
Page 49: CSR in the APEC Mining Sector · reflect the views of APEC, AIM-RVR CSR Center, and are without prejudice to Member’s ... PT INCO and the Karonsie Dongi Group …………………………
Page 50: CSR in the APEC Mining Sector · reflect the views of APEC, AIM-RVR CSR Center, and are without prejudice to Member’s ... PT INCO and the Karonsie Dongi Group …………………………
Page 51: CSR in the APEC Mining Sector · reflect the views of APEC, AIM-RVR CSR Center, and are without prejudice to Member’s ... PT INCO and the Karonsie Dongi Group …………………………
Page 52: CSR in the APEC Mining Sector · reflect the views of APEC, AIM-RVR CSR Center, and are without prejudice to Member’s ... PT INCO and the Karonsie Dongi Group …………………………
Page 53: CSR in the APEC Mining Sector · reflect the views of APEC, AIM-RVR CSR Center, and are without prejudice to Member’s ... PT INCO and the Karonsie Dongi Group …………………………
Page 54: CSR in the APEC Mining Sector · reflect the views of APEC, AIM-RVR CSR Center, and are without prejudice to Member’s ... PT INCO and the Karonsie Dongi Group …………………………
Page 55: CSR in the APEC Mining Sector · reflect the views of APEC, AIM-RVR CSR Center, and are without prejudice to Member’s ... PT INCO and the Karonsie Dongi Group …………………………
Page 56: CSR in the APEC Mining Sector · reflect the views of APEC, AIM-RVR CSR Center, and are without prejudice to Member’s ... PT INCO and the Karonsie Dongi Group …………………………
Page 57: CSR in the APEC Mining Sector · reflect the views of APEC, AIM-RVR CSR Center, and are without prejudice to Member’s ... PT INCO and the Karonsie Dongi Group …………………………
Page 58: CSR in the APEC Mining Sector · reflect the views of APEC, AIM-RVR CSR Center, and are without prejudice to Member’s ... PT INCO and the Karonsie Dongi Group …………………………
Page 59: CSR in the APEC Mining Sector · reflect the views of APEC, AIM-RVR CSR Center, and are without prejudice to Member’s ... PT INCO and the Karonsie Dongi Group …………………………
Page 60: CSR in the APEC Mining Sector · reflect the views of APEC, AIM-RVR CSR Center, and are without prejudice to Member’s ... PT INCO and the Karonsie Dongi Group …………………………
Page 61: CSR in the APEC Mining Sector · reflect the views of APEC, AIM-RVR CSR Center, and are without prejudice to Member’s ... PT INCO and the Karonsie Dongi Group …………………………
Page 62: CSR in the APEC Mining Sector · reflect the views of APEC, AIM-RVR CSR Center, and are without prejudice to Member’s ... PT INCO and the Karonsie Dongi Group …………………………

MINING CANON 50% of Income tax

10%

District of Mining

Operations

Province of Mining

Operations

Department of Mining

Operations

25% 40%

Investment Projects

25%

Regional Government

Regional Government

National Universities

80% 20%

Source: Ministry of Energy and Mining

Page 63: CSR in the APEC Mining Sector · reflect the views of APEC, AIM-RVR CSR Center, and are without prejudice to Member’s ... PT INCO and the Karonsie Dongi Group …………………………
Page 64: CSR in the APEC Mining Sector · reflect the views of APEC, AIM-RVR CSR Center, and are without prejudice to Member’s ... PT INCO and the Karonsie Dongi Group …………………………
Page 65: CSR in the APEC Mining Sector · reflect the views of APEC, AIM-RVR CSR Center, and are without prejudice to Member’s ... PT INCO and the Karonsie Dongi Group …………………………

DISTRICT OF SAN MARCOS

PORT PUNTA LOBITOS

Page 66: CSR in the APEC Mining Sector · reflect the views of APEC, AIM-RVR CSR Center, and are without prejudice to Member’s ... PT INCO and the Karonsie Dongi Group …………………………

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Page 68: CSR in the APEC Mining Sector · reflect the views of APEC, AIM-RVR CSR Center, and are without prejudice to Member’s ... PT INCO and the Karonsie Dongi Group …………………………
Page 69: CSR in the APEC Mining Sector · reflect the views of APEC, AIM-RVR CSR Center, and are without prejudice to Member’s ... PT INCO and the Karonsie Dongi Group …………………………
Page 70: CSR in the APEC Mining Sector · reflect the views of APEC, AIM-RVR CSR Center, and are without prejudice to Member’s ... PT INCO and the Karonsie Dongi Group …………………………
Page 71: CSR in the APEC Mining Sector · reflect the views of APEC, AIM-RVR CSR Center, and are without prejudice to Member’s ... PT INCO and the Karonsie Dongi Group …………………………
Page 72: CSR in the APEC Mining Sector · reflect the views of APEC, AIM-RVR CSR Center, and are without prejudice to Member’s ... PT INCO and the Karonsie Dongi Group …………………………
Page 73: CSR in the APEC Mining Sector · reflect the views of APEC, AIM-RVR CSR Center, and are without prejudice to Member’s ... PT INCO and the Karonsie Dongi Group …………………………
Page 74: CSR in the APEC Mining Sector · reflect the views of APEC, AIM-RVR CSR Center, and are without prejudice to Member’s ... PT INCO and the Karonsie Dongi Group …………………………
Page 75: CSR in the APEC Mining Sector · reflect the views of APEC, AIM-RVR CSR Center, and are without prejudice to Member’s ... PT INCO and the Karonsie Dongi Group …………………………
Page 76: CSR in the APEC Mining Sector · reflect the views of APEC, AIM-RVR CSR Center, and are without prejudice to Member’s ... PT INCO and the Karonsie Dongi Group …………………………
Page 77: CSR in the APEC Mining Sector · reflect the views of APEC, AIM-RVR CSR Center, and are without prejudice to Member’s ... PT INCO and the Karonsie Dongi Group …………………………
Page 78: CSR in the APEC Mining Sector · reflect the views of APEC, AIM-RVR CSR Center, and are without prejudice to Member’s ... PT INCO and the Karonsie Dongi Group …………………………
Page 79: CSR in the APEC Mining Sector · reflect the views of APEC, AIM-RVR CSR Center, and are without prejudice to Member’s ... PT INCO and the Karonsie Dongi Group …………………………
Page 80: CSR in the APEC Mining Sector · reflect the views of APEC, AIM-RVR CSR Center, and are without prejudice to Member’s ... PT INCO and the Karonsie Dongi Group …………………………
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