Companies Learn to Reach Out to Host Communities through IFC CommDev

Companies are recognizing the benefits of working collaboratively with host communities to maintain their “social license to operate." IFC CommDev partnered with the London School of Economics recently on a workshop that launched new training materials used to raise participation and improve local development outcomes.

IFC CommDev also partnered with Business Community Synergies and Ashridge Business School to host a workshop launching new training materials on Rights, Risk and Responsibility: MultidirectionalAccountability in the Extractive Industries. The materials explore the potential benefits and risks of taking a more participatory approach to corporate-community engagement and introduce a range of tools that can be used to raise levels of participation, build trust and improve local development outcomes.

The half-day workshop was co-sponsored by Chevron, Rio Tinto, Shell, and the BG Group, and attended by industry executives, experts, and non-profit partners in the extractive industries field.

The objective of the workshop was to deepen understanding of the business case and return on social investment for increased engagement and participation of communities and local government in community development planning. The learning module responds to industry demand and is intended to build the capacity for more participatory planning and monitoring among extractive companies, local communities, local governments, NGOs an donors. The materials profile a range of specific participatory tools, such as community scorecards, suggestion boxes, participatory budgeting, and co-monitoring initiatives, that have been successfully road-tested in many locations (Ghana, Peru, Madagascar, South Africa) and outline how they can be implemented and adapted to different situations/audiences.

Industry executives and experts were invited to pilot test elements of the training module through a series of innovative interactive exercises during the workshop. Industry representatives indicated that, while they strongly welcomed the learning materials on participatory tools, going forward three other elements are also required: leadership on the part of governments and multilateral institutions to press for the need for extractive industries to manage their relationships with communities well; help in better articulating the business case for participatory community relations in financial terms; and support for raising the level and reach of training on these issues within companies. IFC CommDev will continue to work with clients to ensure these requirements are met.