LESSON
Lesson Learned: Strengthening Local NGOs in Areas Where Extractive Industries Operate
The project did not fully appreciate the complexity of the companies’ corporate social responsibility activities―which are patchy, sector-based, and influenced by the political climate in each extractive area. Nor did the project take into account how complex NGO and community based organization participation would be. Changes in corporate social responsibility governance will not come about without concerted advocacy on the part of civil society groups that come together with an understanding of challenges for society as a whole. The kinds of activities that NGOs engage in could be used to improve information to raise awareness about corporate social responsibility, facilitate dialogue, and promote advocacy skills to tackle performance on poverty issues.
Project Partner
Institute for Research and Empowerment
Project Description
The objective of the project was to enhance trust-building and cooperation among local government, nongovernmental organizations and extractive industries in Indonesia, by strengthening the capacity and credibility of NGOs as partners in corporate social responsibility (CSR) programs. The focus was on improving the ability of local NGOs to forge permanent partnerships with companies and local governments in CSR policy design and implementation.
The project was relevant, given the legal and fiscal requirements governing CSR, the degree of poverty in extractive areas, the lack of enforcement of CSR policies, and the lack of attention paid to civil society engagement and NGO involvement as direct benefits of CSR policies. However, the project risks and problems in terms of corporate and local government commitment were neither adequately identified nor addressed during the design and implementation phase.
Report
Evaluation Date
June 2013
Theme
Country