CIB Mining Company
Constructive Engagement for Integrity:
Enhancing Social License to Operate of Mining Companies through Impactful Socio-economic Programmes
- Many development programmes routinely lose up to 25% of the project value to fraud, corruption and mismanagement
- Integrity shortcomings reduce the effectiveness of investment, and in socio-economic works such shortcomings may even induce social tensions.
- Classical approaches on programme accountability, including measures like Local Funds Agents and Audits, remains useful but they have shown their limit to reduce the leakage rate and the associated risks.
- Multifaceted approach of integrity building that combines constructive engagement with ICT tools.
- Community integrity builders leveraging key stakeholders in a collaborative problem-solving approach of the governance of public infrastructure and service delivery, through:
- Innovative performance measure, the Fix-Rate
- A methodology for social engagement called Community Integrity Building
- A smartphone app called DevelopmentCheck that makes real-time, transparent reporting of results on the ground possible.
For mining companies:
- Address the implementation challenge of the natural resource revenue transparency agenda: that public revenues from mining deliver development outcomes that improve the livelihoods of communities where mines are located.
- Reduce operational risks and assures compliance with the best principles of responsible mining.
- Make a signal contribution to the company’s social license to operate.
For local communities:
- Ensure they get the projects that were committed and budgeted to them by the government and investors.
Results and Value for Money
- With an investment of 1% for integrity, IVORARY I4D and its partners commit to reduce the fraud, corruption and mismanagement and to find local “fixes” for these problems.
- A reduction of these losses by 2% will already represent a 100% return on investment. A target of 2-20% is entirely realistic dependent on the context, but the 1% investment ratio would remain the same.
- Engaged key stakeholders through problem-solving approach tend to remain empowered and able to smartly react to community development issues.