Stakeholder-related risks in the extractive sector have risen rapidly over the last two decades. Time and again, companies have experienced how negative environmental impacts - such as a spill from a tailings dam - can generate significant negative social impacts as well, for example on local community health and livelihoods. Local communities' reactions to these impacts can quickly escalate from complaints to protests and road blockades, raising the risks of the company or its security providers using heavy-handed tactics that can lead to even more serious impacts, such as injury or even deaths. This all-too-familiar situation has significant costs ? for the community of course, but also for extractive companies themselves.
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Categories: CSR Effectiveness Analyses