Company-Led Approaches to Conflict Resolution in …

1 Company-LedApproaches toConflict Resolutionin the Forest Sectorby Emma WilsonThe Forests Dialogue (TFD) Research PaperA TFD PublicationNumber 42009 Company-Led Approaches to Conflict Resolution in the Forest SectorResearch PaperApril 2009A TFD PublicationThe Forests Emma WilsonTFD s PublicationsThe purpose of TFD s publications is to inform stakeholders about the initiatives and activities sponsored by more information on topics covered in this document, visit our website at AhmadWorld Wildlife Fund -IndonesiaGeorge AsherLake Taupo Forest Trust -New ZealandMohamed BakarrWorld Agroforestry CentreMarcus ColchesterForest Peoples ProgrammeGerhard DieterleThe World BankPeter GardinerMondiWilliam GinnThe Nature ConservancyJames Griffiths Co-LeaderWorld Business Council forSustainable DevelopmentPeter KanowskiAustralian National UniversityMatti KarjulaStora EnsoMikhail KarpachevskiyBiodiversity ConservationCenter - RussiaLars LaestadiusWorld Resources InstituteStewart

2 Maginnis Co-LeaderInternational Union forConservation of NatureJames MayersInternational Institute forEnvironment and DevelopmentCassie PhillipsWeyerhaeuser CompanyCarlos RoxoAracruz CeluloseAntti SahiConfederation of EuropeanPrivate Forest OwnersLiz SandlerAmerican Forest FoundationRoberto SmeraldiAmigos da Terra - AmazoniaBrasileiraKen StrassnerKimberly-ClarkWilliam StreetInternational Association ofMachinists and AerospaceWorkersJustin WardConservation InternationalEmmanuel Ze MekaInternational Tropical TimberOrganizationTFD s Steering Committee 2009 TFD s SecretariatGary DunningExecutive DirectorLisa O BrienAdministrative CoordinatorCover Photo CreditCenter photo: Duncan MacqueenContents | page 3 ContentsExecutive Summary4 Forest Enterprises and Conflict6 What is the Scope of the Paper?

3 9 What Norms and Standards are Relevant?11 National Legislation11 International Norms and Standards11 Free, Prior and Informed Consent12 Forest Certification14 Company Management Standards and Codes of Conduct16 Voluntary Industry Guidelines16 Project Finance Requirements18 What Tools and Techniques are in Use?21 Recognizing Rights22 Stakeholder Engagement27 Company Grievance Mechanisms32 Sharing Benefits and Ownership37 Monitoring and Evaluation40 What are the Limitations of Company-Led Mechanisms?42 Conclusions and Next Steps43 Rights and Responsibilities44 Meaningful Dialogue44 Company Management Systems45 Techniques and Technologies45 Monitoring and Evaluation46 Company Capacity Building46 Community Capacity Building47 Role of the Public Sector47 Appendix A: Respondents and Reviewers48 Appendix B.

4 Questionnaires49 Endnotes52 References59 AcknowledgementsThe author would like to thank The Forests Dialogue for the opportunity to engage in thisresearch and for the support and contacts provided in the course of the work; and colleagues atIIED and other respondents and reviewers listed in Appendix A. Particular thanks go to MarcusColchester, Gary Dunning, Marion Karmann, James Mayers, Duncan Macqueen, Cassie Phillips,Carlos Roxo and Kaisa Tarna-Mani. Any errors and omissions are the fault of the author Wilson is a senior researcher in the Sustainable Markets Group at the InternationalInstitute for Environment and Development.

5 Her research focuses on the ways that businessand investment can be directed towards sustainable development, locally and developed, but need to be tested and evaluated in order to have a broader need to ensure that their standards are also applied by their sub-contractors. It isbecoming increasingly important that subcontractors share in employment and range of mechanisms and flexible, locally tailored Approaches are required to addressconflicts. This poses a challenge to the development of industry-wide and company-widemechanisms, tools, standards and guidelines.

6 Solutions need to be designed for the localcontext and in close collaboration with local stakeholders (government, communities, localenterprises and civil society). However, this does not preclude the need for industry-widesharing of experience and knowledge, and the development and testing of broadly applicableprinciples and methodologies. Respondents noted the need for in-depth analysis of successful(and less successful) implementation of Conflict management tools and Approaches . They alsocalled for more robust and standardised monitoring and evaluation systems and indicators,adapted to local conditions.

7 Recommendations also included more participatory monitoring andindependent third party monitoring, building on emerging good practice in this is a lack of understanding and skills within many companies large and small todevelop and implement effective Conflict management procedures and processes, particularlyin relation to complex issues. Companies need to build up their human resources and considerhiring or working closely with more experts with specific social skills, includinganthropologists. Uncertainty about the costs and implications of Conflict managementapproaches can be addressed through pilot initiatives.

8 Community capacity building is requiredfirst of all to enable people to understand their rights, and secondly to use the range of toolsthat can help them defend their rights. This might include training, exchange visits, informationdissemination, workshops, school-based materials, and various communications media,including theatre, music and respondents expressed scepticism about the potential of Company-Led mechanisms tosignificantly improve Conflict situations in the majority of forests, as promoting suchmechanisms is only likely to influence companies that already want to do things also warned against assuming that voluntary company mechanisms for conflictresolution would be able to resolve conflicts that are rooted in long-running historical issuesaround land rights and poor governance.

9 To make a positive impact across the board,introduction of Company-Led mechanisms should be matched by parallel engagement withlegislative and regulatory agencies. There is a need for capacity building within governmentagencies to improve their understanding of fundamental Conflict -related issues and enhancetheir ability to contribute to just and lasting Summary | page 5 This discussion paper explores the potential for addressing Conflict in the forest sector throughthe use of Company-Led tools and mechanisms. A major Conflict issue for many is that ofrecognising and negotiating rights to land and resources.

10 conflicts also arise betweencompanies and communities or civil society organisations over conservation priorities,environmental pollution and benefit sharing. Norms and standards that influence companyefforts to develop their own Conflict Resolution mechanisms include certification standards,voluntary industry guidelines, project finance requirements and international norms. A keyconcept is that of free, prior and informed consent or FPIC, which is explored in this paper offers examples of tools and Approaches that are being employed by companies andnon-industry players working closely with companies to address Conflict -related issues.