The Frontier of Social MediaThe business of sustainability How is Social Media Evaluation Used? 10...

The business of sustainability

Prepared for:

The Frontier of Social MediaMining & Social Risk

The business of sustainability

6%

3%

6%

35%

3%

6%

6%

23%

35%

42%

No details available

Technical challenges

Revenue sharing

Commercial issues

Adverse weather

Health & Safety

Land Access

Permitting issues

Environmental concerns

Lack of social acceptance

Causes of delay*

Extreme weather

Less than a third of mining projects were delivered on schedule

6

Mining project delays (2008 – 2012)

*Does not sum to 100% due to multiple causes of delays

Non technical causes

30%

24%

46%

0% 50%

Delivered onschedule

No delayreported,project inprogress

Delayed

Other causes

Source: ERM Analysis

The business of sustainability

Risk Defined

3

$Social Business Risk

(SBR)Unacceptable

Acceptable

Business Social Risk(BSR)

High $

Low $

The business of sustainability

Social Risk Conceptual Model

4

Information

Media

Interest Group Politicians

Communication(SBR)

BSR

Mining Company

The business of sustainability

Social Media Network

5

The business of sustainability

Language is the basis for Understanding Risk

6

Topics, posts, hashtags, re-tweets, videos, likes, shares, public comments etc.

The business of sustainability

Risk Psychology Determines Project Acceptance

7

Risk Culture• Compatibility with

cultural • Compatibility with

visions of ideal community

• Compatibility with personal identify

Risk Characteristics• Probability of occurrence• Inequality of impacts• Probability of long-term

impacts• Controllability of impacts• Complexity/unknown

/uncertain impacts• Permanency of impacts• Level of impact

(catastrophic?)• Vulnerability• Exposure• Degree of personal harm• Cumulative effects

Risk Feelings• Stigma• Involuntary risk• Affect heuristic• Dread

Institutional Trust• Transparency• Competency• Reliability• Care• Honesty• Fairness

The business of sustainability

Risks are Not Linear

8

Trust

Risk 1 Acceptability

Risk 2 Acceptability

Risk 4 Acceptability

SBR

Risk 3 Acceptability

Project A

BSR

The business of sustainability

Social Risks are not Geographically Constrained

9

The business of sustainability

How is Social Media Evaluation Used?

10

• Develop and implement a targeted and context-informed strategy to minimize Business Social Risk

• Monitor changes in social media to determine if how effective the strategy is

• Integrate into existing public affairs programs

• Achieve Goal: Lower a business’ social risk due social opposition and concern

The business of sustainability 11

Thank You

Erik CarlsonSenior Project Manager(612) 347-7115erik.carlson@erm.com