March 2005, International Alert
Oil, mining and natural gas companies often invest in conflict-prone societies – the nature of their business setting some limits on choice of risk profile. Most companies have no interest in exacerbating instability or violence, or otherwise becoming caught up in it. Experience shows however, that all too often they lack the skills and experience to avoid doing so.
Despite advances in political risk methodologies and environmental and social impact assessment (ESIA) standards, and the wider corporate social responsibility sphere, fundamental gaps in company practice remain.1 These include capacity to understand existing or potential conflict and its actors, causes and consequences accurately; and to grasp fully the spectrum of influence that a company’s investment may have on such conflict, directly, indirectly and at varying levels. Conflict-Sensitive Business Practice: Guidance for Extractive Industries aims to help close this capacity gap and results from several years’ research and development led by International Alert, a London-based peacebuilding non-governmental organisation (NGO).
The publication
Conflict-Sensitive Business Practice: Guidance for Extractive Industries consists of guidance on doing business in societies at risk of conflict for field managers working across a range of business activities, as well as headquarters staff in political risk, security, external relations and social performance departments. It provides information on understanding conflict risk through a series of practical documents, including:
- Introduction to conflict-sensitive business practice, including an overview of the regulatory environment for doing business in conflict-risk states
- Screening Tool for early identification of conflict risk
- Macro-level Conflict Risk and Impact Assessment tool
- Project-level Conflict Risk and Impact Assessment tool
- Special guidance on key Flashpoint Issues where conflict could arise at any point during a company’s operation.
Each section includes additional resources where company staff can find further useful data and analysis. The guidance as a whole is designed to mirror a basic project cycle for companies engaged in mining, oil and natural gas, but can be picked up at any particular point in the cycle. It is also designed to complement current industry best practice in social performance, political risk analysis and ESIA, adding in a ‘conflict lens’.
