An Integrated Multi-Criteria Approach To Enhancing The Business Value Of Community Investment At Mine Sites

This paper addresses the question ?What constitutes the right level of investment in community goodwill?? Mining companies are still grappling with this subject even though the business case for community investment has been accepted at a general level, as a strategy for competitive differentiation, risk mitigation and a desire to deliver - and to be seen to deliver - a ?net benefit? to affected communities. Gaining senior management commitment to long term social projects, by definition characterized by uncertainty and complexity, is made easier if projects are shown to benefit the site?s strategic goals. Case study research amongst mining companies, including interviews with social investment decision-makers, has assisted in developing a SI-DAT (Social Investment Decision Analysis Tool), a decision model for evaluating social projects in order to create value for both the company and community. Multi-criteria decision analysis techniques integrating business planning processes with social impact assessment have proved useful in assisting mining companies think beyond seeking access to required lands and peaceful relations, to how they can meet their business goals and contribute to regional development.