Engagement with stakeholders around key industry topics such as revenue transparency, human rights, water resources and community development is an integral part of how we conduct our business. We believe that effective stakeholder engagement can help reduce sustainability-related risks and enhance our efforts to achieve an overall positive contribution to society. The objective of our stakeholder engagement efforts is to cultivate and maintain networks of relationships and integrate feedback into our business planning.
In late 2011, we hired an external firm specializing in stakeholder engagement to review our practices from international to local operating levels. With this assistance, we are developing procedures to improve our approach to stakeholder identification and interaction. This effort will continue to include community members, NGOs, socially responsible investors and analysts, labor representation, sustainability initiatives, employees and governmental organizations.
Example Stakeholder Group Interaction Regarding Key Sustainability Challenges |
Artisanal Mining |
Academia |
Conduct research and baseline studies of artisanal mining networks |
Customers |
Site-level customer audits regarding product control at TFM |
Governments |
Communications regarding security-related risks, including promotion of the Voluntary Principles on Human Rights |
Local Community (including artisanal miners) |
Education programs in communities regarding risks associated with mercury use |
Community Engagement and Development |
Academia |
Arizona State University Lodestar training program for community capacity-building |
Foundations/Trust Funds |
Funding, governance and sustainable investment decision support |
Governments |
Engagement with the Company regarding long-term capacity building in education, healthcare and economic development |
Local and Regional Communities (including Indigenous Peoples) |
Development of a Native American Engagement Program in the U.S. focused on economic development, water resources, women’s initiatives and educational opportunities |
Investment Community |
Briefings on our social development programs |
Workforce |
Hiring and training local community members, including prioritization of indigenous peoples |
NGOs |
Active participation and social commitments through groups such as the Clinton Global Initiative |
Suppliers |
Identification and development of local suppliers |
| Corruption |
Governments |
Promotion and implementation of the EITI |
Workforce |
Anti-corruption training and awareness programs |
Suppliers |
Communications on expectations of proper business conduct |
Energy and Greenhouse Gases |
Governments |
Coordination on renewable energy opportunities, including a significant hydropower project in Indonesia |
NGOs |
Active participation in the Carbon Disclosure Project (CDP) since reporting year 2006 |
Suppliers |
Coordination on technological advances in mobile and stationary equipment used in metals mining and processing |
Health & Safety |
Governments |
Interaction with regulators, including operational inspections |
NGOs |
Implementation of the ICMM’s Fatality Prevention Initiative |
Workforce (including unions) |
Workforce training and outreach regarding safety performance expectations |
Labor Relations |
Governments |
Engagement and coordination with governmental bodies regarding status and resolution of labor disruptions |
Investment Community |
Updates via teleconferences, webcasts and in-person meetings |
Local Community |
Communications regarding impacts of labor unrest in local communities, including impacts to community funding mechanisms and programs |
Workforce (including unions) |
Ongoing engagement regarding schedule, wages, benefits, worker conduct and safe workplaces |
Public Health |
Governments |
Engagement regarding long-term capacity building for local and regional healthcare services and infrastructure |
Local Community |
Communications regarding health risks and provision of healthcare services |
NGOs |
Formal partnerships to implement local public health programs |
Workforce |
Communications regarding health risks in areas where we operate |
Security and Human Rights |
Customers |
Engagement regarding product control at TFM, including site-level sustainability audits |
Governments |
Engagement regarding security and human rights training/socialization of Company policies and programs with government bodies and government-provided security |
Local Community |
Human Rights training and communications regarding grievance mechanisms |
Investment Community |
Program updates via teleconferences, meetings and email information exchange |
NGOs |
Active promotion and involvement in the Voluntary Principles on Security and Human Rights |
Workforce (including security contractors) |
Human Rights training programs and communications regarding grievance mechanisms |
Tailings and Waste Rock Management |
Governments |
Engagement regarding regulatory obligations and closure planning |
Investment Community |
Correspondence via teleconferences, meetings and information exchange particularly regarding controlled riverine tailings management at PTFI |
NGOs |
Active participation in organizations such as INAP |
Water Impacted |
Governments |
Engagement regarding regulatory obligations and long-term projects to protect or enhance water quality |
Local Community |
Coordination on projects to protect or enhance access to clean water for populations near our operations |
NGOs |
Active participation in the CDP Water Disclosure since reporting year 2010 |
Water Supply |
Governments |
Coordination with the Company on strategies concerning long-term water supplies |
Local Community |
Engagement with Community groups, including indigenous peoples, on mutually beneficiation and long-term options for water supplies |
NGOs |
Active participation in the CDP Water Disclosure since reporting year 2010. |
The table below is a broader presentation of our engagement activities with stakeholder groups.
Stakeholder Groups |
Typical Areas of Interest |
Typical Methods of Engagement |
Communities |
Communities near our operations have important needs and interests associated with our operations. |
• Employment opportunities
• Economic development
• Education
• Health and safety
• Environmental protection
• Mine closure |
• Public community engagement forums (e.g., Community Partnership Panels)
• Community Liaison Officer programs
• Formal governance structures of community trust funds
• Media placements
• Specific meeting requests |
Customers |
We sell our copper products primarily to smelters, wire and cable fabricators, and brass mills. Gold is primarily sold as a component of our copper concentrate. We sell molybdenum to steel mills and specialty markets. Cobalt from our Tenke Fungurume operations is sold to specialty markets. |
• Quality products
• Delivery commitments
• Regulatory compliance
• Product stewardship
• Sustainability programs |
• Daily interactions with our sales group
• Customer satisfaction surveys
• Operations tours
• Product information sheets
• Supply chain sustainability surveys |
Employees and Contractors |
At December 31, 2011, we employed a diverse workforce of approximately 31,800 employees and 27,800 contractors across our operations. |
• Health and safety
• Operational change
• Workforce management
• Alignment with local community interests
• Training and career development |
• Health and safety programs and initiatives
• Timely site-level dissemination of Company news and events
• Two-way communications with supervisors and management
• Direct home mailings
• Principles of Business Conduct hotline
• Company intranet |
Governments |
We work with governments at national, regional and local levels. |
• Resource access
• Environmental protection
• Taxes and royalties
• Economic development
• Water rights and supply
• Workforce development |
• Interaction with Company management
• Regulatory processes and requirements
• Governmental representation at stakeholder engagement forums
• Participation in trade associations |
Indigenous Peoples |
We engage with the indigenous Papuans in Papua, Indonesia; Native Americans in the United States; and the communities of Alto Loa (Chile’s First People). |
• Human rights
• Land rights
• Partnerships
• Education
• Employment and career development
• Cultural heritage |
• Local leadership by tradition or election
• Training and dialogue
• Workshops and meetings
• One-on-one interactions
• Community development programs
|
Non-governmental Organizations (NGOs) |
We interact regularly with NGOs (international and local) focused on a broad range of sustainability topics. These groups frequently include development agencies, educational institutions, civic organizations, environmental protection groups and groups interested in issues related to human rights. |
• Health and safety
• Economic development
• Human rights
• Environmental performance
• Corporate governance
• Ethics |
• Formal partnerships
• Research and studies
• Inquiries and requests for information
• Project proposals |
Shareholders and Financial Community |
We regularly work with institutional investors, securities analysts, socially responsible investment (SRI) analysts, lenders, rating agencies and the financial media. |
• Financial performance
• Corporate governance
• Access to capital
• Environmental performance
• Health and safety
• Human rights
• Business risk |
• Public news releases and presentations
• Public filings with the Securities and Exchange Commission
• Public presentations to the investment community
• Communications between our Sustainable Development department and SRI analysts
• Annual meeting of stockholders/solicitation of proxies
• Sustainability reporting
• Corporate Social Responsibility surveys |
Suppliers |
Our suppliers range from local businesses near our operations to large, international companies. |
• Supplier requirements
• Long-term business relationships
• Agreement terms |
• Contract administrators
• Community development representative interaction with local businesses
• Entrepreneurial programs |
Unions |
Employees at certain operating sites are represented by unions according to applicable agreements. |
• Wages and benefits
• Work schedule
• Health and safety
• Job security |
• Communications with labor representation on workforce related topics per agreements |
