NGO hails Anglo American's SEAT process as 'an international best practice'
22 November, 2007
Corporate responsibility NGO, Business for Social Responsibility, has completed an evaluation of Anglo's Socio-Economic Assessment Toolbox (SEAT), and found that SEAT allows Anglo to contribute more effectively to sustainable development.
- New BSR Report Evaluates Anglo American's Socio-Economic Assessment Toolbox
- Public report finds that SEAT enables Anglo to contribute more effectively to sustainable development
SAN FRANCISCO – November 6, 2007 – Business for Social Responsibility (BSR) has published a public report detailing findings of its independent third-party evaluation of Anglo American plc's Socio-Economic Assessment Toolbox (SEAT).
Launched in 2003, SEAT has been implemented at more than 55 Anglo American operations globally and more than 350 personnel have been trained on its usage.
BSR was commissioned by Anglo American to determine the impact of SEAT implementation on stakeholder relationships, internal management of social issues and on community development initiatives. BSR compared SEAT to analogous processes at Anglo American's peers in mining, as well as to relevant industry and external voluntary norms and standards, to assess Anglo American's efforts to align SEAT with leading international practices.
The organization conducted nearly 75 interviews with approximately 200 people including academics, local and regional governments, host community members, implementing partners and industry groups. BSR staff members also travelled to Anglo American operations in Chile (Chagres and El Soldado) and South Africa (Anglo Coal's Isibonelo and New Denmark sites), as well as to Mondi Business Paper's Mkhondo Forestry Operation.
BSR assessed the results of the interviews and synthesized its findings into a set of recommendations for Anglo American to enhance future implementation of SEAT. Separately, BSR also produced a public report. Among its key conclusions, BSR noted the following:
- SEAT provides effective guidance for managing sustainable development in the mining industry. Anglo American is not alone in recognizing the value of engaging stakeholders and proactively addressing their key concerns and issues. However, SEAT appears to offer a comprehensive level of detail and guidance for identifying and addressing socioeconomic impacts. Since BSR's evaluation was completed, an updated version has launched that streamlines a number of tools while offering an even greater level of guidance.
- Management responses align with sustainable development priorities; too early to properly gauge long-term benefits. Many of the formal management responses are still at an early stage of implementation so it was difficult for most stakeholders to readily judge Anglo American's contributions to long-term sustainable community development. That said several Anglo American operations have achieved a marked shift from “philanthropy” to “strategic social investment.” For instance, as a result of the SEAT process in Chile, a large enterprise development programme is being implemented with a local NGO that aims to benefit 6,000 small businesses through the provision of loans and other support by 2010.
- Implementation has positively impacted community perception. There appears to be a strong correlation between active engagement and positive community perceptions. The ability of Anglo American operations to influence stakeholder perception appears to be a function of how the company engages its stakeholders and whether it enables them to participate in the design and implementation stages of the SEAT process.
“Overall we believe the updated version of SEAT, which addresses many of the findings that emerged over the course of BSR's assessment, will continue to enable Anglo American to make a strong contribution to sustainable development,” said Doug Bannerman, project manager at BSR. “We are pleased, for instance, that SEAT has become a mandatory internal company process -- a decision that more strongly reflects Anglo American's commitment to managing the company's social and economic impacts at the local level.”
“We applaud the announcement by Anglo American CEO Cynthia Carroll at BSR's Annual Conference that the company will share its method and key learnings with others by making SEAT available on its website,” added Aron Cramer, BSR president and CEO. “This decision represents transparency with a purpose: to make a significant contribution by enabling other companies – regardless of sector – to achieve more positive stakeholder relationships, more effective management of social issues, and better community development impacts.”
About BSR
Since 1992, Business for Social Responsibility (BSR) has been
providing socially responsible business solutions to many of the
world's leading corporations. Headquartered in San Francisco and
with offices in Europe, China and Hong Kong, BSR is a nonprofit
business association that serves its 250 member companies and other
Global 1000 enterprises. Through advisory services, convenings and
research, BSR works with corporations and concerned stakeholders of
all types to create a more just and sustainable global economy. For
more information, visit www.bsr.org
About Anglo American
Anglo American is one of the world's largest mining and natural
resource groups. With its subsidiaries, joint ventures and
associates, it is a global leader in platinum group metals and
diamonds, with significant interests in coal, base and ferrous
metals, and industrial minerals. The Group is geographically
diverse, with operations in Africa, Europe, South and North
America, Australia and Asia.