June 2002, Randy Gossen, Nexen, Errol Mendes | University of Ottawa
The goal of this Business Guide for Conflict Impact Assessment and Risk Management is to aid companies in developing strategies that minimize the negative effects and maximize the positive effects of investing in areas of conflict or potential conflict. It aims to aid companies in developing strategies that minimize the negative effects and maximize the positive effects of investing in areas of conflict or potential conflict, particularly at two critical stages: pre-investment and pre-operational stage, and operational stage. To this end, The Business Guide contains: (1) an introduction to and a matrix of risk assessment and management questions to be asked, and decisions to be made, during the above two stages; (2) a detailed stakeholder analysis designed to identify key stakeholders, their interests and their relation to the company, and suggest types of activities the company could develop to engage these stakeholders; (3) impact assessments in the areas of human rights, international humanitarian law, labor, and the environment.
In this sense, it can assist corporations, especially small and medium-sized enterprises in promoting the basic conditions for successful investment such as transparency, socio-political stability, the rule of law and respect for all stakeholders involved in corporate activities. It can also help managers determine when underlying tensions and conflicts might escalate to violent confrontations between groups or communities; and ensure that their actions and decisions do not exacerbate them. Even in areas with great potential for business growth, mismanagement of actual or possible conflict environments can undermine a company's license to operate, damage its corporate reputation, threaten its investment, and place its personnel and facilities at risk. The ultimate aim of this Business Guide is to help companies contribute to a sustainable business environment in their countries of operation and to contribute positively to conflict prevention and peace building.
