”Businesses should work closer with humanitarian organizations. What companies call new or emerging markets are often well-known for non-governmental organizations, who have valuable local and national knowledge gained over long periods of time. Hydro’s conscious work with social responsibility is now being expressed through its expectations in the local community as it enters into new projects in Brazil.”
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| Anne Kristin Sydnes (Photo: Norwegian Church Aid) |
Anne Kristin Sydnes, International Programs, Norwegian Church Aid 2008-2010
“The social responsibility of companies has been an important area for a long time in Norwegian Church Aid, which works with long-term development, crisis help and advocacy. Corporate social responsibility is part of this. Winning the fight against poverty assumes that economic and business development is helping to create jobs, and that this business development occurs properly. The way the business is run is most important,” says Anne Kristin Sydnes, who is a consultant for Norwegian Church Aid and engaged in projects which fall under the area of social responsibility.
She emphasizes that Norwegian Church Aid is following with particular interest Hydro’s expanded involvement in bauxite and alumina in Brazil. The company is moving from minority to majority owner in four companies, each in the state of Pará.
Sydnes has many years of experience in the area of corporate social responsibility, including six years with Statoil. She has worked for the United Nations on cooperation with business, and she also handled similar challenges previously as Norway’s Minister of Development.
Active contributor to development
”We have witnessed several interesting changes over time,” says Sydnes. “It is natural for companies to focus on their own bottom line. As part of this, they also try to avoid negative impact from their operations on society and the environment, and the results of this. But this perspective has grown too narrow. There is now broader understanding toward working to promote good ripple effects in society, both on the micro and macro levels. This is a very positive development, partly because it touches sensitive contexts with investments in the southern hemisphere.”
Do what is right
”There is a challenge in realizing and putting into practical action policy, ethical guidelines and risk management systems when operating in a new country. The context is new. We see that employees want their company to ‘do the right thing.’ This means a lot for motivation and recruitment and it is sensible in the risk perspective. Against a background like this, sharing knowledge is very important – and working with humanitarian organizations is extremely useful in such situations, for instance, when targeting good dialog with local interests.
”The people who live in regions with new industrial activity or in areas where their experience from such activity is negative, tend to have much anxiety and uncertainty around the changes that are going to come and whether any eventual damage can be remedied. Norwegian Church Aid has many years of experience working with local and national organizations. It has a network that represents people and players who participate in civil society and who can identify and contribute to good and acceptable solutions to dilemmas and conflicts of interest.”
Key to open dialogue
”Hydro’s extended engagement in Brazil is going to imply big challenges, but also good opportunities. Some Brazilian companies are extremely competent in exercising social responsibility, but many are weak, not least when it comes to openness and dialogue. And there is a pressing need for openness and dialog when industrial activity is closely tied to large environmental challenges, as in this case for Hydro in Brazil. But I also have to say that the picture is complex. Many express optimism when new companies come onto the scene with higher standards for environmental and social responsibility.
”Brazil is one of the main sectors for Norwegian investment today. By cooperating systematically with solid organizations in civil society, Norwegian companies will be able to demonstrate high standards in the area of environment and corporate social responsibility. I am convinced this will strengthen the competitive position of Norwegian companies in Brazil. It would be wise for Hydro to use organizations like Norwegian Church Aid as a broker, who, together with its own local partners, can organize stakeholder dialogue sessions, as an example. This would reduce risk and contribute to results that are in line with Hydro’s own principles and guidelines.”
Hard work wins out
”Hydro and other Norwegian companies have established principles and guidelines that attend to their social responsibility. The challenge lies in becoming better at finding the opportunities to carry out this work in practice. Working in the value chain – toward partners, suppliers and sub-suppliers – is an example. Much has been done to fight corruption, through laws and guidelines. But when it comes to meeting the local community, the question is all about behavior and values. Gaining knowledge about local conditions means that people need to leave their offices, listen and watch – and not least, to draw on the competence of the non-governmental organizations close to the problems in the local society. There is no ‘quick fix’ in this area. The way to win is through good and solid work,” says Sydnes.
(Anne Kristin Sydnes is a deputy member of Hydro’s Corporate Assembly)
