Pitfalls and Pipelines - Philippine Indigenous Peoples Links
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Pitfalls and Pipelines - Philippine Indigenous Peoples Links

Pitfalls and Pipelines - Philippine Indigenous Peoples Links Pitfalls and Pipelines - Philippine Indigenous Peoples Links

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17.11.2014 Views

208 Pitfalls and Pipelines: Indigenous Peoples and Extractive Industries granted as a largesse by governments or companies. A government’s failure to issue domestic legislation is no excuse for not recognizing and upholding FPIC. It is not an optional gift that comes with socially responsible corporations. Full local community participation and strict observation of FPIC are the starting point for good practice. As far as documenting some of the lessons of this from an indigenous perspective, one of the most thorough handbooks is the North-South Institute’s Tipping the Power Balance. 10 Although not authored by indigenous peoples, it synthesises over 10 years’ work on the issue, and—being based on collaborative research—speaks with authority. It summarizes key lessons, responds to some common misunderstandings, and includes recommendations from affected communities that are a great starting point for affected communities. Figure 2: Best practice and key triggers for obtaining consent in the mining process Structure of a public company Shareholders Voting control (AGM) Dividends Interest Creditors Non-executive (exec) Board (led by Chair) (banks, etc.) Executive Management (led by CEO) Subsidiaries Source: NSI report, p. 26.

Chapter 2.4: Negotiations and Engagement with Companies 209 From the Non-Indigenous Perspective There is no shortage of material that has been written on best practice in the extractive industries, coming from either the industry, academics and/or NGOs. Both the mining industry and the oil and gas industry have produced handbooks in relation to indigenous peoples. In the case of the mining industry, it is the International Council of Mining and Metals (ICMM)’s “Good Practice Guide.” 11 For the hydrocarbon industry it is the International Petroleum Industry Environmental Conservation Association (IPIECA)’s “Indigenous Peoples and the oil and gas industry.” 12 It is also worth reviewing materials from the company that appears most transparent with its internal engagement policies, which is Anglo American with its “Socio-Economic Assessment Toolbox.” 13 To their credit, these publications have an enlightened rhetoric on issues dealing with indigenous peoples. They claim to have had some indigenous input, they accept a wideranging definition of indigenous, and all offer some solid, practical advice on respectful engagement. They stress both the necessity to comply with laws and good business practice, but also stress the competitive advantage for companies in getting good relations with indigenous peoples. They also contain industry examples of good practice, and—in the case of the ICMM—a Position Statement, with set of commitments. For any community facing an extractive project, the respective publication is worth reading to understand the latest industry perspective on the issues. Reading them is a reflection of the credit due to the indigenous movement, that the extractive industries have placed so much of their combined efforts to address the issue. It is of course likewise a reflection of the painful mistakes that have been made, and the leap required to ensure universal application of these fine words. One of the problems of implementation is that companies have tended to have an essentially “reductionist” attitude to social issues. Despite employing social scientists and anthropologists, 14 the nature of ensuring there is proof of compliance means that a “tick box” exercise is always preferred. One of

208 <strong>Pitfalls</strong> <strong>and</strong> <strong>Pipelines</strong>: <strong>Indigenous</strong> <strong>Peoples</strong> <strong>and</strong> Extractive Industries<br />

granted as a largesse by governments or companies. A government’s<br />

failure to issue domestic legislation is no excuse for<br />

not recognizing <strong>and</strong> upholding FPIC. It is not an optional gift<br />

that comes with socially responsible corporations. Full local<br />

community participation <strong>and</strong> strict observation of FPIC are<br />

the starting point for good practice.<br />

As far as documenting some of the lessons of this from an<br />

indigenous perspective, one of the most thorough h<strong>and</strong>books<br />

is the North-South Institute’s Tipping the Power Balance. 10<br />

Although not authored by indigenous peoples, it synthesises<br />

over 10 years’ work on the issue, <strong>and</strong>—being based on collaborative<br />

research—speaks with authority. It summarizes key<br />

lessons, responds to some common misunderst<strong>and</strong>ings, <strong>and</strong><br />

includes recommendations from affected communities that<br />

are a great starting point for affected communities.<br />

Figure 2: Best practice <strong>and</strong> key triggers for obtaining consent in the mining process<br />

Structure of a public company<br />

Shareholders<br />

Voting control (AGM) Dividends Interest<br />

Creditors<br />

Non-executive<br />

(exec)<br />

Board (led by Chair)<br />

(banks, etc.)<br />

Executive<br />

Management (led by CEO)<br />

Subsidiaries<br />

Source: NSI report, p. 26.

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