CSR in the Middle East & North Africa

CSR in the Middle East & North Africa is dynamic and exciting.  It is built on centuries of Islamic tradition and principles and evolving rapidly to meet the business reality of the 21st century.

I was recently interviewed on CSR in the Middle East and North Africa and thought my responses might be interesting for some.  The transcribed interview is below.

For any that are interested in CSR in this region you will want to take in the ta’atheer MENA Social Impact and CSR Forum in Dubai (May 22-25, 2016).   I will be Chairing the Summit and delivering two post-summit bootcamps.

If you are interested there is a 20% discount available for my blog readers.  Contact me for details

Do you agree that the term CSR is outdated and the region is now moving towards sustainable social impact? 

CSR, Sustainability, Social Responsibility, Social Impact and other phrases are all attempts to put words and phrases around society’s increasing expectations on the role of business in society (and society’s increased ability to impose those expectations on business). 

None of the words and phrases are able to perfectly capture this phenomena, this evolving reality in the space where business meets society.

I’m not convinced that focusing on the language is terribly helpful (although it isn’t unhelpful).  To me, what is more important is focusing on how societal and shareholder value can be efficiently created in the space where business meets society.

In your opinion, what is Social Impact Investment and how would you explain it’s context in the Middle East?

Middle East CSR/Social Impact Investing is evolving from pure charity and philanthropy to more strategic approaches which include Social Impact Investing and increased consideration for linkages with business and shareholder value.

My understanding of the phrase and the drivers of the discussion is that it has more to do with the growing realization that simple charity and philanthropy doesn’t fully meet society’s evolving expectations of business, nor does it fulfil business’ responsibility to its shareholder to use business resources in the interests of the business.

For many Middle Eastern businesses CSR and Social Impact Investing are evolving from the more traditional Zakat and Sadaqah [while Zakat is obligatory, Sadaqah is voluntary]

Zakat, Sadaqah and other societal support has traditionally taken more of a philanthropic or charitable approach; a transfer of money and resources from business to social needs and issues with limited attention to sustainable impact or business value.  That is changing.

Middle Eastern businesses are feeling the financial pressures that are the reality of recent years.  They are dealing with margin and profit squeezes and reduced amounts of discretionary capital.  At the same time many now have global project and ownership partners that are questioning the traditional philanthropic and charitable spending.

Society expects business to be engaged with key societal issues.  Business has to learn to meet these expectations in ways that integrate business and societal value.   Social Impact Investing, as well as more strategic approaches to CSR are approaches that enable better alignment of societal and business interests.

But, this should not be taken to mean that philanthropy and charity are wrong.  Just that they need to be looked at in a broader, value-focused context that considers societal and shareholder value and impact as well as sustainability.

What are the latest 3 trends you are seeing in how organisations are adopting sustainability and social impact in the region?

• Growing awareness of the need for more strategy and focus on results, rather than simply supporting projects and programs
• Tensions between partners as family owned businesses engage with international partners and investors who have more focus on linking CSR and Social Impact investing to business interests
• Increasing use of partners and collaborators including from civil society, governments and international interests

What is the role of social entrepreneurship in the social impact space? 

It’s all about social entrepreneurship.  It is about innovation and motivation to be more efficient at creating, delivering and capturing value.  In this case it is societal value.

Social entrepreneurship helps to identify and lead new opportunities and helps to make old opportunities more efficient.

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For any that are interested in CSR in this region you will want to take in the ta’atheer MENA Social Impact and CSR Forum in Dubai (May 22-25, 2016).   I will be Chairing the Summit and delivering two post-summit bootcamps.

Canadian Oil Sands Energy: Time for Bold Action

A 50% reduction in carbon intensity and climate impact?  

Why not?

It is time to stop tinkering at the margins and let’s set bold goals to get Canadian Oil Sands energy to market AND make it palatable in our increasingly carbon and climate focused world.

Canadian Oil Sands are one of the world's largest petroleum reserves, and the only major reserve located in a politically stable region.  A major investment in improving the carbon/climate impact would pay dividends to Alberta, Canada and the world for decades.

We’ve seen that no matter how loud governments cheer for the project, or how friendly they make environmental rules, the pipelines just don’t seem to get approved.  Climate change and carbon are increasingly important to society.  Dirty energy, as the oil sands have been branded, can expect increasing opposition and challenges at every step, from inside Canada and globally

This won’t change anytime soon.  Unless the oil sands industry embraces carbon and climate issues and takes them head on.  And, with the economic malaise Canada and Alberta is in, and provincial and federal governments poised to make strategic interventions, this is a perfect time.

It is time for industry and both levels of government to come together and accept and finance the challenge of making oil sands energy acceptable to a carbon conscious public.

A good starting point is to determine the carbon, GHG and climate impact intensity of the industry today.  There seems to be a lot of confusion and misinformation around this issue so let’s clear it up.  Whatever the number is, let’s know it and let’s accept that it has to improve.  A lot.  A real, real lot.

How can it be improved?  I don’t know, but I know it can’t be improved and won’t be improved unless industry and government come together, commit to improving it and invest heavily to achieve that commitment.

What would happen if they agreed to cut the carbon, GHG and climate impact intensity of oil sands industry by 50% in 5 years?   It would be a huge step forward in gaining (or regaining) a global social license for the industry.

Canadian scientists, engineers, universities and research facilities would be resourced and motivated to develop new technology and processes that would not only apply to the oil sands but would have impact across other industries and sectors struggling to reduce their impact. 

New technology and solutions would be developed by Canadians and could be applied in other industries and other sectors, supporting Canadian business and carbon management.  Canada would continue moving away from its former status as a climate change laggard.

What would it cost to cut impacts by 50%?  I don’t know.  Billions I guess.  But, what is the alternative.  The public and markets won’t get less interested in the environmental impact.  Pipeline permits won’t magically appear. 

I suspect that if Industry and government doesn’t take this issue head on with a BHAG (Big Hairy Audacious Goal) that they all embrace, we will see much of the energy from oil sands remain untouched, costing the provincial and national economy far more than it would cost to take the challenge head on.

So, let’s just do it.  Embrace a 50% reduction in the climate impact of the oil sands industry by 2022.

Canadian Oil Sands are one of the world's largest petroleum reserves, and the only major reserve located in a politically stable region.  A major investment in improving the carbon/climate impact would pay dividends to Alberta, Canada and the world for decades.

Social Value Brand

Social Value Brand (SVB)

Businesses today are increasingly expected to deliver some sort of social value in addition to shareholder value, or, at the very least, to not create harm to society.

Whether they realize it or not, whether they actively manage it or not, pretty much all companies with market, financial or human resource connections to Europe and North America have a Social Value Brand or SVB

This is true whether they are a mining company operating in remote jungles, a high performing Consumer Goods Company, a globally recognized service sector brand or even a professional sports league.  It is also true for entire industries.

You might ask, what is a Social Value Brand?  It is simply how your company or industry is perceived in relation to creating value for society as well as value for shareholders.

You might also ask, how important is a Social Value Brand?  For some it is quite important actually.

For all it is more important today than it was ten years ago, and will be more important in five years than it is today.

If attracting top talent to your company is important, the fact that 73% of Americans want to work for a company that is doing social good should move SVB up your priority list.

If you are a mining company your SVB can be the difference between being able to operate and being shut down through loss of permits, or even by direct community activism.  Some jurisdictions actually require a community vote to support development of a mine.  Are you ready for that?

If you are a consumer goods company your global supply chain is likely fraught with labour force, human rights, environment, health and safety and other potential issues that you are working hard to manage. Complex issues in long and complex supply chains. 

Sudden events like fires, factory collapses, sub-contractor screw-ups, or something out of the blue can suddenly put negative pressure on your SVB and impact sales and relationships.  A carefully nurtured SVB can provide a reputational capital reserve that can give your market facing brand some resilience to these inevitable situations.

If you are a globally recognized service brand your Social Value Brand can give you a strategic edge in attracting and retaining talent.  And, SVB development activities can provide valuable professional development opportunities for your team.

And professional sports leagues?  Yes, social value brand is an emerging issue there too.  Look at the heat football has taken over how it managed domestic violence issues with players, or how concussions and other safety issues are becoming increasingly important, or violence in hockey, or environmental impact of sporting events.  SVB issues are increasing in importance, and catching the attention of key leaders and decision makers.

With the growing importance of social value brands you would think that management of them would also be of increasing importance.  You would be right, but you would likely be surprised at some low-hanging opportunities that are there for the taking.

Here are some examples that I think are ripe for action…

Nike’s SVB Opportunity

Take a company like Nike, a clear global leader in athletic apparel and athletic performance gear.  Nike actually creates a lot of social value every day.

Nike is a huge supporter of community sports and youth sports.  Nike also supports aspiring and accomplished athletes who themselves provide incredible amounts of volunteer support to youth and sports and charitable causes.

Together these actions create a lot of latent social brand value, but little seems to be invested in developing it so that Nike’s publics and constituencies recognize the social value that Nike helps foster.

You may ask, why is this important?  People buy Nike for athletic performance and the star power of its athletes.  True.  On the margins a strong SVB may help drive some sales, but likely not much.

But, what about when a supply chain issue develops and suddenly global attention is focused on labour, or safety or human rights practices of some obscure contractor in Nike’s supply chain (remember Nike and the child labour issues of the 90s). When the sh*t hits the fan a strong SVB can provide the reputational capital that will limit market impact and facilitate speedy recovery.

What is ironic is that with all the social good that Nike is creating already it would likely take little additional effort and cost to develop a robust SVB.

NHL’s SVB Opportunity

The National Hockey League has taken a global leadership position in sustainability management and reporting.  The league and its franchises are actively and progressively managing their environmental footprint.  The league recently produced a strong sustainability report. (see a short analysis of it here)

At the same time the league, its franchises and players are producing social value in many ways. 

Whether it is the league’s work with Cancer, LGT issues or a range of other important social causes and issues, or the individual franchises support to a range of community causes and charities, or the work of individual players and their support to youth, minor hockey, charity and development, there are many valuable social impacts emanating from the NHL and its teams and players.

Yet, despite the success of its sustainability report and the significant societal impacts, the League and its franchises are doing little to develop a strong social value brand from all the social value creation work it is doing.

Extractive sector SVB opportunities

The mining and petroleum industries were actually early achievers in social value creation! 

Yes, they do have a legacy of negative social value impacts (and some continue to this day).  But, today companies and major industry associations are making major progress on social value creation.

Examples abound of progressive community engagement and development, whether it is Uranium emining giant Cameco and it’s leadership to facilitate a half billion dollar annual business activity Indigenous Peoples in northern Saskatchewan, or Golden Star’s efforts to support family level palm oil businesses in Ghana, or Placer Dome’s leadership that ‘changed the social face of the South African mining industry’ (see Analysis and Stanford Case Study here).

For the most part the extractive sector is quite accomplished at maximizing local/project level social value brand impacts from its investments and operations.  On an industry level organizations like ICMM (website), CIM, PDAC and others are working to create industry wide SVB.

A closer examination though will reveal that few companies are proactively building their SVB at the corporate level where it could provide increasing value in financing, employee recruitment and retention and other key areas.

Conclusion

Similar stories can be told for other industries.  There are many social value brand opportunities where much of the work is already done and paid for.

As societal pressure for social value creation increases you can expect businesses and industries to pay increasing attention to their Social Value Brand. 

Some will use it as a differentiator in markets, others for employee recruitment and retention and others will use it more like an insurance against impacts of mistakes that are pretty much inevitable.

However it is used, Social Value Brand is something that tomorrow’s leaders will pay more attention to than today’s, and today’s leaders that do pay attention and get their SVB right will have improved paths to success, today and tomorrow.

CSR Skills: What you need and why

CSR Skills: What you need and why

What skills and attributes are most helpful for someone working in (or wanting to work in) the growing field of corporate social responsibility?

I’m asked this question often so thought I would share some thoughts in a post. 

As always, these are my thoughts.  Don’t expect them to be comprehensive and do expect some to be surprising and maybe even controversial.   

Some might suggest that there is another set of more traditional skills that are important.  I wouldn’t disagree, but would argue vehemently that the skills below are as or more important.

For all my writings, teachings and doings the whole idea (always) is to facilitate change by conveying information and stimulating thinking and doing.  

You have more answers inside you than you realize.  And you won’t find them if you just read, nod and agree.  Think.  If you agree, why?  If you disagree, why?  And, most importantly, what will you do differently?

Most of the skills below are not just good for CSR. They apply across business and in life generally.

1.       Value-think

CSR is all about value (so is business!).  Always.  Knowing how to think about value in all its dimensions is key.  Understanding and differentiating value will help you to create value-alignment across interests.

Click here for slides and video on stakeholder engagement from a recent CSR Masterclass

2.       Stakeholder-think

CSR is all about stakeholders (so is business!).  Always.  Knowing how to identify stakeholders and think about their interests (value) in all its dimensions is key.  Understanding and differentiating stakeholders and their value will help you to create value-alignment across interests.

Click here for slides and video on stakeholder engagement from a recent CSR Masterclass

3.       Alignment-think

CSR is all about meeting the interests (value) of others, in a way that also meets the interests of your business and/or project.   This skill is sort of like strategic empathy, knowing how to understand the position and interests of key stakeholders (the what’s in it for them part) and being creative in looking at ways that your business/project can help them and serve your own interests at the same time.

4.       Communication

Communication is a critical skill for CSR (and so many other areas).  Clear, concise, other-interest focused (and interesting!) communications can be invaluable in developing, implementing and managing CSR projects.  This applies to speaking, writing, social media and all other forms of communications.

*other-interest focused – make sure to practice communication that connects with the interests of those you are communicating with.  Communicate about the self-interest of others and their ears will perk up and their minds will engage.  Communicate about your interests and their minds will likely wander to their own interests.

Ask yourself, ‘why would they listen/read/engage your communication’.  If you don’t have a clear answer your communication is likely ineffective.

5.       Know business

CSR is all business, so you need to Know Business to be effective.  Too often CSR is done as no-business and all philanthropy.  Not good.

In the same way as you need to be able to understand and meet the needs of stakeholders, you also need to know how to understand and meet the needs of your business or project.

And, while you are at it

6.       Know business-speak

Know how to communicate to your internal colleagues and stakeholders (and then do it!).  If you can’t make a strong internal business case for your CSR plan and project how do you expect to develop a strong internal support base.

And, if you don’t have a strong internal support base be prepared to be isolated, marginalized and the first funding to be cut when things get tough.

Build your business case and learn how to communicate it to key internal stakeholders and constituents.  You must be able to clearly define and communicate the internal business case (often by department – e.g., what’s in it for Human Resources?  For Finance?  For operations?, etc.).

If you can’t, then you either haven’t thought about it hard enough, or you are pursuing sub-optimal projects and priorities.  In either case you are not effectively optimizing value.

7.       Zero-sum Be Gone

CSR is about creating and increasing value, not simply redistributing value.  One of the most valuable skills you can develop is to learn to systematically think beyond zero-sum.

Learn how to win by helping others to win too.

8.       Innovation

Innovation is critical.  Put on a value lens and learn to think inside, outside and around the box.  Ask yourself questions that start with; What if? Would this? What about? Could we?

Better than asking yourself, surround yourself with colleagues and stakeholders who can ask you those questions, and be open enough to hear them and know that these questions may help to unlock new value.

Creative alignment and value creation is often found through innovation.

9.       Think Pain Points

What are the pain points?  What does that have to do with CSR?  Pain points are just that.  It is what keeps your CEO awake at night.  Threats, weaknesses, obstacles, challenges, the sorts of things that business has to address to survive and thrive.

CSR should be one of your business’s strategic tools for addressing pain points.  Not that CSR will solve all pain points, but that it may solve some.

A key skill for a successful CSR practitioner is to know and understand the pain points that are keeping your C-Suite team awake at nights, and to think strategically about how CSR may help address some of them.

And then have the communication and know-business skills to be able to use CSR to address key pain points.

I did a keynote at the CSR Saudi Arabia Summit recently that discusses CSR and Pain Points as part of integrating societal value in your core business.  You can see the slides here

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There are many other skills that will help you to break into CSR work or to be better at it.  You can find many lists (much more traditional than my nine-point list).

But, I think you will do well to think about and try and master these nine.  They will help to make you more effective and more valuable, at CSR and in other areas.

What makes a CSR Strategy Strong?

I recently did a short interview on What makes a CSR Strategy strong and thought the transcript below might be interesting.   It has a few thoughts and comments along with links to other articles and posts that I have authored.

CSR is all about value.  Value for shareholders and society.  The closer a CSR Strategy sticks to that principle the stronger the strategy is.  And, the more value it produces for both

1. What makes a CSR strategy strong?

Alignment of interests.  Sharing of value created and responsibility for creating it. 

The real key to a successful strategy is that it drives a process that will consistently and systematically identify, nurture and develop those areas where shareholder and stakeholder interests can align.  It must also do it in a way that doesn’t put all the responsibility on the company.  If there is to be shared value there must be shared responsibility for it to be sustainable

For more on this see:

• http://www.slideshare.net/waynedunn/csr-in-eight-self-serving-steps
• http://www.slideshare.net/waynedunn/smarter-csr-budgets-connecting-value-to-budget-in-8-steps
• and others at https://www.linkedin.com/today/author/26188639

1. What do most companies consider business-wise and customer-wise when creating a CSR strategy?

I’m hesitant to comment on what most consider.  I’d rather comment on what I think they should consider.

Unfortunately, companies often take a paternalistic approach and execute CSR in a way that suggests it is about giving and transferring value from the company to other stakeholders rather than finding the spaces where collective self-interest can create aligned interests and giving shareholders and stakeholders direct and personal motivation

CSR = creating, capturing & sharing value in the space where business meets society. Here is a link to a blog post that expands on this a bithttp://bit.ly/ZGpHJN  

1. What are main challenges to creating a strong CSR strategy?

• Stakeholder attitudes and beliefs that CSR is something that should be done to and for them, rather than something they have responsibility to help create and do
• Company attitudes and beliefs that CSR is something they do to and for stakeholders, rather than a way to create value for shareholders and stakeholders
• Altruistic angel approach – not acknowledging self-interest – seehttps://www.linkedin.com/pulse/article/20141104111540-26188639-don-t-be-an-altruistic-angel-be-upfront-about-what-s-in-it-for-you
• Attitudes of the key players, inside the company and in the stakeholder constituency
• Not getting internal stakeholders onboard. Seehttps://www.linkedin.com/pulse/article/20140930095149-26188639-seven-proven-ways-to-get-colleagues-on-board-with-sustainability-and-corporate-responsibility

CSR Training: Seven strategies to make it work for participants

CSR: Teaching, learning, practicing

Executive training programs can be boring, dull and virtually useless.  Or they can be dynamic, career altering, fun and productive.

Here are some thoughts on how we can make CSR Training work better for participants.

How do we learn to do CSR Better?

What do we mean by ‘doing CSR Better’?

Different people have different answers to these questions.  I’ll share mine with you, but encourage you to seek other answers and opinions too.  In CSR, diversity rocks!

Let’s take the second question first.   What is ‘doing CSR Better’?

For me it is all about value, always, every time.  CSR is about creating and aligning value; value for shareholders and value for stakeholders.  In ways that is not zero sum.  It is done through the integration of resources, strategy, time, etc.

With this perspective we do CSR better by creating more value for any given level of inputs and by optimizing value created against inputs like time, money, opportunity cost, etc.

So, how do we learn to do that?

Notice that I said how do we learn to that and not how do we do that.  You can see numerous posts on how to do CSR here.

This post will discuss what I know about teaching and learning CSR; knowledge built over decades of doing CSR and several years of developing and delivering CSR training to executives and leaders worldwide.

1.     Diversity is key.  By its very nature CSR is about working with diverse interests and developing common ground and value-alignment.  Successful CSR programs involve internal and external stakeholders with a ‘what’s in it for them’ approach.

 

Diversity of participants and faculty is key to successful CSR training programs

Having different industries as well as diverse sectors (private, public, NGO, community, government, international organization, etc.) and geographic diversity adds a lot of value to CSR programs.  So too does having a range of functions and positions at the learning table. 

Participants have the chance to learn and understand the viewpoints and perspectives of others.  For example a case study on stakeholder engagement is much richer when you have project field staff, corporate executives, community representatives, government officials, multi-lateral institutions and others at the same table.  They learn from and with each other.

This can be invaluable as people go back to their own organizations to design, manage and implement CSR programs

Exception – when training is integrated with organizational and project level CSR strategy it can be beneficial to have a more homogenous internal group involved.  But, even in that type of situation there are advantages to bringing in others for some components.

2.     Blend of theory and practice.  All theory makes for a boring learning experience and people dis-engage.  All practical doesn’t provide the theoretical framework that can help participants know material and concepts in a way that makes it easy to apply them.

Ideally a session will involve a lecture that discusses theory, frameworks and big picture perspectives and looks at how they are applied in real-world situations.

This is then followed with a group exercise and/or role-playing scenario where participants get to learn from and with each other and apply the theory and frameworks to a realistic simulation.

3.     Faculty Diversity – learning from the same person day after day after day gets boring.  And it limits the perspectives that participants are exposed to. 

I’ve found that participants learn more and retain more when they are taught by a diverse faculty that includes practitioners, private and public sector executives, NGO leaders and others.  While this isn’t always practical, especially for shorter programs, it is important to bring as much diversity as possible to the Faculty Team.

4.     Certified Training Conferences – traditional executive programs provide a structured learning across a range of tightly managed subject areas.  They promote personal development and, often, theoretical understanding of issues and concepts.

Industry conferences are more dynamic, have a range of speakers and facilitate dynamic networking and a state of the industry knowledge.

Over dozens of CSR training events I’ve found that a blend of executive training and industry conferences produces the most meaningful learning and is the best way to equip participants to hit the ground running right after the program.

We have developed a methodology we call Certified Training Conferences – that integrates the structured learning and personal development of traditional Executive Programs with the dynamic networking, variety of presenters, industry knowledge and diversity of international conferences.

5.     Certified Training Conferences bring together a global group of executives and managers from industry, NGOs, development agencies and international organizations to learn with and from each other in a dynamic, interactive and highly social setting.

6.     Testing ideas and driving the CSR bus – Participants are much better able to apply the learnings from a CSR training program when they have a chance to engage in testing ideas and driving the CSR bus through group-work sessions and scenario/role playing activities.

These provide them with the opportunity to put theory into practice in a non-threating, risk-free and supportive environment.  When coupled with broad group diversity these practical and hands-on components can be one of the most valuable aspects of a high-level CSR training program.

7.     Follow-up support – nobody can retain everything from a training session.  Invariably a few weeks or months later a situation will arise and the participant will remember that something similar was covered in the program but either cannot recall the specifics, or simply wants to get feedback and guidance on it.

It is important that participants are encouraged to network with each other after the program and also that they have access to faculty and/or program leaders for a period of time after the session has ended.

It is also helpful to have an online forum or vehicle for sharing of ideas and asking questions.

These are some of the elements that I’ve found can help turn a CSR training program into a life and career changing event.  By using these methods the CSR Training Institute has been able to achieve very high participant satisfaction ratings with over 80% of participants rating our programs as one of the top three training programs they have ever taken.  You can see what our participants have to say in their own words here.

If you are interested in learning more about CSR Training please contact me.  If you are interested in upcoming programs you can check out the links below or go to our website.

Advanced Masterclass in CSR Strategy & Management – Nov 1-6, Accra, Ghana

Register here

CSR Bootcamp for Executives & Leaders (2 days)  – Oct 9-30, Accra, Ghana

Register here

This time it IS in my Backyard! I'm a Stakeholder, not an International Expert

This time It IS in my backyard!  Can I practice what I preach?

Originally published on Triple Pundit - http://www.triplepundit.com/2015/08/time-backyard-can-practice-preach/

Looking out from my backyard near the proposed site of a major LNG facility

I’ve spent 25+ years working with major extractive projects around the world, helping them to engage and collaborate with local communities and address local concerns, to earn and maintain a ‘social license’ and align community and shareholder interests.  Over seventy-five projects in dozens of countries all over the world.  Suddenly one is in my backyard.

Last week a major LNG project was announced for my backyard, 2 ½ miles from my home on Vancouver Island in Canada and right beside where I love to catch prawns and crabs with my little boat.  

Major resource project.  In my backyard.

It is a partnership between an Indigenous Tribe, the Malahat First Nation and Steelhead LNG of Vancouver.  The project is a floating LNG platform to liquefy natural gas for export to global markets. It is planned for Indigenous owned land just down the shore from my home of nearly 20 years. See project description here.  On the surface it seems an ideal example of an Indigenous/non-indigenous business partnership; strategic and impactful.

But, for me, suddenly I am not the ‘international expert’ but one of the ‘local stakeholders’.  And already I am being bombarded with outrageous ‘facts’ seeking to ensure I oppose the project.  It is different, but somehow still the same.

Here is what I know (or don’t know, as the case may be).

Certainty?  Are you kidding?  Despite the claims and the certainty of opponents and proponents, we don’t know the social, environmental or even economic impacts with any degree of certainty. They will become known as things move forward.  An informed, vigorous and comprehensive discussion is necessary in order to know if this project makes social, economic and environmental sense.

The Malahat Tribe is economically marginalized and deserves better.  The Status Quo is not fair.   Surrounded by non-indigenous people who are relatively comfortable economically, the Malahat First Nation has 80% unemployment and has somehow been excluded from much of the economic opportunity that has occurred around them over the past 100 years.

The Malahat Nation created a huge socio-economic development opportunity for themselves, they deserve a chance to see if it can be developed in an acceptable way.

Steelhead LNG is impressive.  For some time I’ve admired how Steelhead has engaged and consulted First Nations and developed collaborative partnerships and mechanisms for ensuring local benefit and value from Steelhead’s LNG projects. 

Not just sideshow value, but meaningful upside participation and long-term value creation.  It is impressive.  They have integrated Corporate Social Responsibility into their core business strategy.  I was so impressed that I have had Steelhead’s CEO address one of my Corporate Social Responsibility programs.

Opposition helps make the project better.  No project comes out of the gate without room for improvement.  The probes, queries and analysis of investors makes the financial and business model stronger. 

Similarly, social and environmental opponents and criticism help to identify opportunities to improve social impacts and environmental performance.

My son picking out a small octopus as he helps with the prawn catch

Social, environmental and economic optimization will not happen without opposition.  Smart companies and projects find ways to engage with opponents and improve projects.

Viability.  There is no way the project should proceed if it can’t demonstrate financial, social and environmental viability and risk management.  Fortunately our system has processes (financial markets and regulatory structures) that force demonstration of viability and risk management.

Straight truths are rare.  Hyperbole, balderdash and pure bullsh*t are more common.  From opponents and proponents. 

This project won’t solve all the social and economic woes of the Malahat Tribe (nobody has said directly that it will).  It also won’t, as the Anti-everything crowd so quickly claimed, bring Fracking to Vancouver Island or make Saanich Inlet bathtub warm. 

We need discussion informed by truths.  No single project will solve decades of economic marginalization. Fracking happens at the drill hole, not where gas is liquefied.  And, I’m sure science can find a better use for the heat energy by-product of liquefaction than warming up Saanich Inlet.

We can’t afford to get it wrong.  The process needs to work and inform how/if we can develop it safely. We can’t afford mistakes.  We need it to be the best it can be.  We can’t afford mistakes environmentally (I want my grandchildren and their grandchildren to be able to catch prawns and enjoy the Saanich Inlet).  We can’t afford mistakes economically. 

We don’t know.  So relax.  At this stage we have very few facts and know little.  Too much certainty is a sign of a closed mind and swallowing (or promoting) misinformation. We have a regulatory process that is quite good.  A lot better than what many countries have.

 

Getting ready to head out to lift prawn traps near the proposed LNG project site.

Only with an informed, vigorous and comprehensive debate will we learn if this project makes social, environmental and economic sense.

The world needs energy.  Natural gas is far from the worst form of energy available (would you rather the world used unregulated coal?).  Let’s have the process inform us and the discussion and the eventual decision on whether and how the project might proceed.

I know I plan to try and stay as curious, as engaged, as open as possible, and to be as wary as possible of the questionable ‘facts’ that will undoubtedly flow from those who enter the process with closed minds and unmovable positions.

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Wayne Dunn is President & Founder, CSR Training Institute and Professor of Practice in Corporate Social Responsibility, McGill University.  He has worked on nearly 100 projects spanning the globe and industry sectors.

You can sign up for the CSR Training Institute newsletter here and read more from him here.

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