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How to make change management happen in the most effective way

Many things can put your business at risk, including changes to your organisation, people or technology. The current pandemic has put many businesses under unprecedented pressure, and some even teetering on the brink of survival. Crises like this quickly turn change...

Future-ready part 2: Diversity – an essential ingredient for a future-ready organisation

In his seminal 1937 essay, “The nature of the firm,” the economist and eventual Nobel laureate Ronald Coase argued that corporations exist to avoid the transaction costs of the free market. Yet with transaction costs plummeting (spurred by rising connectivity)...

Future-ready part 1: What does a future-ready business look like in the new normal?

The pressure to change had been building for years. Well before the COVID-19 pandemic, senior executives routinely worried that their organisations were too slow, too siloed, too bogged down in complicated matrix structures, too bureaucratic. What many leaders feared,...

Organisation Design: Restructuring or Reshuffling to enable Strategy

Customer expectations are not just changing; they are exceeding the ability of a business to deliver on time. They are looking for alternatives, with more emphasis on experience and convenience. To keep up, companies are evolving their offering to meet the...

How to fill the gap between Strategy and Execution

Organisations are great at setting their strategy and identifying their goals, but they fall short when it comes to their operating model review and redesign, the key component that enables the strategy and drives the achievement of goals. Operating models consist of...

Culture PART 2: The role of leaders in a culture shift

In the previous article in this series we examined the effect of COVID-19 on an organisation’s culture. Now, we turn the focus onto the role of leadership and technology in leveraging culture. When an organisation decides to change its culture – be it planned or...

Culture PART 1: Did COVID-19 signal the end for hierarchical organisations?

According to the Organisation for Economic Co-operation and Development, human capital is defined as: “the knowledge, skills, competencies and other attributes embodied in individuals or groups of individuals acquired during their life and used to produce goods,...

Meet MAC’s Executives: Karina Jardim, Senior Executive

“Exceptionally talented consultant” “An absolute pleasure to work with” “Driven by a desire to see people grow” If you know Karina Jardim, you know that these phrases used to describe Karina ring undoubtedly true. She is a name that is valued to every MACer, whether...

Thriving in the Age of Digital Adoption: Embracing the Workforce Ecosystem (part 2)

In the first part of this series, we looked at how the fears of technological innovation are resulting in an unproductive resistance toward modernisation, even as it gains extraordinary pace in 2021. We also delved into the importance of a growth mindset in allowing...

Thriving in the Age of Digital Adoption: Overcoming the Fear of AI (part 1)

“What if artificial intelligence takes over my job? What if I become redundant?” Every one of us has experienced technology encroaching on our lives, more and more so with each year that passes. It appears that technological innovation is a certainty that is only...



Mac Consulting

Socio-Economic Impact Assessment

SOCIO-ECONOMIC IMPACT ASSESSMENT

The Mineral and Petroleum Development Act (Act No 28 of 2002) is one of many regulations developed to transform the mining and production industries in South Africa. The Act requires the submission of a Social and Labour Plan (SLP) by mining/production organisations as a pre-requisite for granting of rights that ensure effective transformation within the industries.

The SLP requires applicants to develop comprehensive Human Resources Development Programmes, Mine Community Development Plans, Housing and Living Conditions Plans, as well as Employment Equity Plans to save jobs and manage downscaling or closure. SLP programme implementation aims to ensure socio-economic development, by promoting employment and advancing social and economic welfare of all South Africans.

To monitor progress made by the industries, according to their SLP, a Socio-Economic Impact Assessment (SEIA) should be conducted every 3-5 years. This assists implementation teams in fulfilling their mandate to manage the organisation’s social investment into initiatives aimed at creating sustainable communities.

CONDUCTING A SOCIO-ECONOMIC IMPACT ASSESSMENT IN THE MINING INDUSTRY

MAC Consulting was appointed by one of South Africa’s largest and foremost black-empowered resource companies to conduct the SEIA for them at one of their operations. This was to determine and capture the significance of the contribution of the mine and Socio-Economic Development (SED) projects on the host community. The aim was to follow a structured, inclusive and rigorous approach, focused on ensuring that:

  • The agreed elements of the SEIA were comprehensively and professionally completed
  • Appropriate stakeholder engagement and involvement was achieved
  • Ownership of the initiative and outcomes resided with the organisation

Stakeholder Engagement was aligned with the AA1000 Stakeholder Engagement Standard and use was made of the relevant principles provided by the company’s Socio-Economic Assessment Toolbox (SEAT). MAC drew from best practices such as the International Fund for Agricultural Development’s (IFAD’s) Multidimensional Poverty Assessment Tool (MPAT), to draft assessment questionnaires for internal and external stakeholders.

The method to conduct the assessment within the community consisted of three phases, with an underlying element of project management and communication, which continued throughout the engagement.

PHASE 1

In Phase 1, MAC engaged with multiple key internal stakeholders to determine expectations of the project and to gather relevant information for the initial desktop review research process. MAC also worked with the organisation’s project representatives to develop the detailed project plan and to commence with the scheduling of key events, such as the initiation of the survey period.

Using the information gathered, questionnaires were developed and uploaded into an online survey tool to enable the easy facilitation of the interview process and accuracy of data capturing whilst conducting the interviews with various stakeholders.

PHASE 2

The Phase 2 objective was to gather, collate and interpret information focusing on inputs required for the development of the SEIA report and the definition of the impact, opportunities and risks.

A small team of local graduates were recruited and capacitated to conduct and collate the community stakeholder survey process. This contributed to overcoming potential language barriers and enabled constructive engagements. It also provided skills development and a work experience opportunity for the youth.

An assessment of the previous and current SED Projects was conducted with stakeholders. This allowed the team to: identify strengths and gaps of the projects with regard to meeting their objectives and the needs of the community; capture lessons learnt that will be informative for future plans and projects; and to make recommendations in the SEIA report, giving insight into associated strategies. More than 350 stakeholders from various stakeholder groups were interviewed during this phase of the project.

PHASE 3

The final phase involved consolidation and analysis of the information gathered during the interview and research processes into a final SEIA report. This report focused on identifying key impacts, opportunities and socio-economic risks and providing recommendations to inform the SLP and SED projects going forward, as well as recommending associated strategies for the business.

The SEIA will assist in enabling the Community Development team to fulfil their mandate to manage the organisation’s social investment in initiatives to create sustainable communities through proactive engagement, deep understanding of societal needs and regulations and application of best practices.

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