Communities
Good community relations are as necessary for our business success as the effective management of our operations. This belief is at the heart of our overall approach to communities and is why we build good quality relationships with the people in the areas where we operate.
Wherever we operate, we seek to understand the social, environmental and economic implications of our activities so we can optimise benefits and reduce negative impacts, both for the local community and for the overall economy. We discuss mutual benefits and obligations with local governments and community representatives, and agree on the objectives that will secure long term results.
Our Communities work is guided by The way we work, Rio Tinto's global code of business conduct. Our Communities policy and standard provide the framework for the work, while guidance notes provide specific requirements in areas such as baseline communities assessment, consultation, social impact assessment, communities plans and compensation. We also refer to external policies such as the International Finance Corporation's standard and guidance on land acquisition and involuntary resettlement.
- Knowledge
- Engage
- Programmes
- Elements
- Results
In 2009 we established a five year target for Rio Tinto's global Communities work:
All operations have locally appropriate, publicly reported social performance indicators that demonstrate a positive contribution to the economic development of the communities and regions where we work, consistent with the Millennium Development Goals, by 2013.
Many of our operations already have community related targets in place; by the end of the target period we will ensure all operations formalise locally appropriate targets and publicly report performance to their local communities.
In 2010, Rio Tinto businesses supported nearly 2,900 socio-economic programmes covering a wide range of activities including health, education, business development, housing, environmental protection and agricultural development. Overall, we spent US$166 million on community programmes.
Of this sum, 53 per cent went directly to community programmes. A further 33.9 per cent or were direct payments into benefits receiving trusts associated with impact benefit agreements. Our management costs for these contributions were 13.1 per cent.
The bulk of our community investment, some US$25.3 million, was directed to education programmes; US$7 million was spent on health and HIV/AIDS, US$6.2 million on housing and US$9.2 million on community based environment programmes.
Some 62 per cent of our direct community contribution was in Australia/New Zealand where the bulk of our operations are found. Thirteen per cent was in the Africa/Europe region and 24 per cent in the Americas.
