• Extractive industries
• Diamonds
• Mining
• Oil

Extractive industries

This is a guide for companies working in the extractive industries, particularly in the oil and gas sectors and provides basic conflict management advice and guidance. Its objective is to save time, to protect resources and reputations, and to enhance the safety of employees and of the communities in which they do business.

The guide presents tools for risk assessment and risk management in conflict settings, including:

• conflicts between companies and local communities which are directly related to the presence and operations of the companies themselves
• wider social and political conflicts in which companies are not directly involved but which are very likely to impact on companies operating in such conflict environments

Part one covers risk assessment - potential risks, community impacts, and reputation and ethical dilemmas companies might encounter when seeking to invest in geographic regions of conflict, and when planning new investments in countries where companies have existing operations. This involves a three-step approach:

• traditional risk assessment – identifies whether and where conflict is likely within a geographic or political area, and if it is ongoing, post conflict, or potential conflict
• conflict analysis - identifies the nature and causes of the conflict
• conflict impact assessment (CIA) - identifies how investments or corporate activities will affect the potential or existing conflict and vice versa

Part two covers risk management - practical guidance on how to manage conflict in ways that do not compromise ethics and reputation, or contravene national laws and international norms and standards. Risk management approaches include:

• ‘do no harm’ in operations - looking at how corporate policies and practices affect the dynamics of a conflict, such as, recruitment, compensation and security
• ‘do something’ – investing in the company’s front-line and backup conflict management capacities; increasing conflict sensitivity of operations and of community outreach projects; and establishing early warning systems for areas prone to violent conflict
• ‘do something ++” - building external conflict management capacity, such as, supporting local and national conflict management resources; providing training; funding study tours to regions where successful conflict management has been achieved; and providing funding and/or technical assistance to national and/or international conflict resolution efforts

The guide suggests that these steps, when undertaken effectively, can assist companies to avoid costly mistakes by alerting them to existing or emerging conflict issues and by informing both investment decisions and successful conflict management strategies.

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