Indigenous Engagement Strategies: Lessons from Platinex & De Beers

1 Indigenous Understanding Case Study Adhil Mohamed Navas (2313778) University Canada West Business 601: Ethics, CSR, and Business Analysis Jack Smith 24 January 2024

2 Indigenous Understanding Case study Dealing with Indigenous communities poses a critical challenge for businesses, requiring thoughtful stakeholder management strategies. This analysis critically evaluates the stakeholder management approaches of Platinex Inc. and De Beers Inc. in dealing with Indigenous communities and aims to determine which approach is more effective for Sitka Home Equities Inc. (SHE) when engaging with Indigenous stakeholders. Also highlights concerns such as indigenous engagement, economic benefits, environmental impact, and communication transparency. SHE Inc. plans to build a high-tech, state-of-the-art light industrial park in the Vancouver Island area, midway between Duncan and Nanaimo. The selected location was originally taken from the Stz’min’us First Nation (SFN) ancestors. The family owning the site is returning it as part of a treaty settlement between British Columbia and SFN, at a lower market value. SFN has similar plans for development, creating an opportunity for collaboration to establish a win-win situation. Platinex's approach demonstrated a lack of effective Indigenous engagement, leading to legal disputes and opposition. The company did not prioritize substantial economic benefits for Indigenous communities, contributing to heightened opposition. Additionally, Platinex's inadequate consideration of environmental concerns exacerbated tensions with Indigenous communities, and poor communication further strained relations. De Beers, on the other hand, proactively engaged with Indigenous communities through the negotiation of Impact Benefit Agreements (IBAs). These agreements addressed cultural, economic, and environmental concerns, demonstrating a commitment to long-term relationship building. The IBAs provided structured economic benefits, incorporated environmental

3 protection measures, and showcased transparency in communication through over 100 community meetings. Considering the concerns raised and the analysis of both approaches, De Beers' method emerges as superior for SHE Inc. when dealing with Indigenous stakeholders. The structured IBAs, commitment to environmental responsibility, transparent communication, and community- oriented agreements position De Beers as a more effective model for sustainable stakeholder engagement. Building a strong, long-term relationship is a major factor in dealing with stakeholders. Platinex failed to achieve this by not keeping the community informed and not following the development protocols, which led to a series of issues and broke their trust (Siebenmorgen, n.d., Slide 27), whereas De Beers invested time in building long-term relationships through comprehensive agreements (Siebenmorgen, n.d., Slide 38). Economic benefits are also another factor to be negotiated and must be achieved in favour of both parties. Another factor is environmental responsibility and obtaining proper certification and agreement from all the nations around. De Beers' IBAs were community-oriented, addressing specific needs and concerns (Siebenmorgen, n.d., Slide 45). Having proper communication and transparency helps in maintaining the relationship. De Beers' transparent communication and extensive community meetings built trust (Siebenmorgen, n.d., Slide 56). Having a structured agreement and following it is another factor. IBAs legally bind De Beers to fulfill commitments, ensuring accountability. Also, respecting their culture acts as a factor. De Beers' approach showed cultural sensitivity by considering Indigenous traditions and values. Resolving the issues and conflicts pro-actively is another important factor, which Platinex failed to do so and incurred heavy financial losses (Siebenmorgen, n.d., Slide 31). On the other hand, De Beers proactively addressed conflicts,

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4 preventing escalated disputes. De Beers involved communities in decision-making, fostering a sense of ownership and adapting to each community's unique needs, showcasing flexibility. While De Beers' approach is robust for engaging with Indigenous stakeholders, challenges may arise with stakeholders not covered by IBAs. Legal agreements may have limitations, diverse stakeholder interests could conflict, compliance with governmental regulations may pose challenges outside the IBAs, and external groups like NGOs may have different expectations. De Beers' strategy for managing stakeholders, especially with Indigenous populations, provides SHE Inc. with a thorough and practical model. De Beers' strategy is legally binding, transparent, and focused on the community, which makes it an excellent starting point for building enduring connections and sustainable development. It is important to acknowledge that although this methodology is highly appropriate for interacting with Indigenous stakeholders, it might not encompass all stakeholders. Thus, additional approaches might be required to achieve a comprehensive approach to stakeholder management.

5 References Siebenmorgen, P. (n.d.). Community Case Studies: Mineral Development and Community Relations in Kitchenuhmaykoosib Inninuwug (K.I.) First Nation and the James Bay Coastal First Nations. University of Guelph Publishing.

Indigenous case study - Adhil Mohamed Navas - 2313778

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