Methodology for developing a stakeholder-based external affairs strategy

Successful relationships between mining companies and local stakeholders are now an essential part of the social contract of “doing business” (Prescott, 1995). The methodology presented in this paper is designed to assist mining companies in understanding and building relationships with diverse stakeholder groups. The methodology starts by recognizing that mining projects have a natural life cycle which can be used to identify when new external affairs strategies are required. In designing an external affairs strategy, the first step is to set objectives that are compatible with the overall objectives of the mining project. The management team then identifies the main stakeholder groups and seeks to understand the priorities and inter-relationships of the individual stakeholders. The result of this stakeholder analysis is an understanding of the Degrees of Influence of each of the stakeholder groups along with a relationship map which illustrates the strong interactions between stakeholders. The company is then prepared to take a proactive approach to building relationships with the primary stakeholders. This methodology was developed by BHP to assist with the federal government environmental approval process for the development of Canada’s first diamond mine. BHP has successfully used the methodology in three different phases of the NWT Diamonds Project and is now applying the methodology to mining and development projects around the world.