Natural resources in developing countries do not grow in vacuum space. Government often not see people in natural resources site concessions since the government set the site in a table long way from where the people live. In fact, in a remote areas, it contains people wherever mostly you go as companies. The companies understands but mostly not really take social aspect into account. They do not consider them as an important factor in investment.
The thing changes when there is complain, demonstrations, protest, violence set by both parties in fighting the get rights on the resources, say palm oil plantation, or forest areas. It may be too late. But no, you have to deal with it. The cost to deal with social issues after company operating in the areas may way higher than if the company take social issues into account at the very early stage of planning.
If you deal with sustainable business you have to also consider developing sustainable livelihood for people around you. Sustainable livelihood is totally different with charity. Sustainable livelihood require collaboration and partnership between company and people. Company has to work togather to plan, develop and implement something that fit with people potential, resources and capacity. The purpose is to support them so that they can sustain their living. Social is dynamic thing. You do one thing at the time you may try to innovate. Human is full of dynamic. You have to explore social innovation.
By doing social innovation you may create environment for company to innovate and better growth and profits.
Good luck. To know more on social innovation in practice please contact me at dwirm@aksenta.com.
Dwi Muhtaman
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