Resolute Mining forks out further $50 million to Mali for detained employees
The miner's top boss Terence Holohan and two other employees were released by Mali government, the company said in a statement on Nov. 21.
To reduce the risk of having a large project scuttled by local activists, Michael Porter says companies must move beyond community relations and start aligning business interests with local needs and priorities.
Porter is a professor at Harvard University and a leading authority on competitive strategy. He contributed to the FSG research report Extracting with Purpose, a year-long study released in October.
Porter says that just ad hoc filling of a community wants does not work.
“Investments based on community wish lists and attempts to placate the loudest voices in a community have led to ever-shifting community requests, unilateral projects that have little impact, prioritizing image over outcomes, and missed opportunities for business and community alignment,” writes Porter in the study’s forward.
Porter argues for a “shared value model”.
“Companies must tie community prosperity to the present long-term needs of the business in areas such as qualified labor pool, capable suppliers, and well-functioning community infrastructure.”
Read the report on how to align a resource businesses operations with the community.
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Image of Michael Porter by Yesicavaldez
