2005 INDEPENDENT ANNUAL SURVEY OF COMMUNITIES 1 BHP BILLITON INDEPENDENT ANNUAL SURVEY OF...
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2005 INDEPENDENT ANNUAL SURVEY OF COMMUNITIES1
BHP BILLITON
INDEPENDENT ANNUAL SURVEY OF COMMUNITIES
Mine X, South America
2005
PREPARED FOR BHP BILLITON
BY GLOBESCAN INCORPORATED
Presented to CommDev M&E WorkshopDec. 5, 2006
By Rob Kerr, GlobeScan
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2005 INDEPENDENT ANNUAL SURVEY OF COMMUNITIES2
Introduction
• BHP Billiton’s corporate charter states that the company “is successful in creating value when the communities in which they operate value their citizenship.”
• BHP Billiton contracted with GlobeScan, a public opinion and stakeholder research firm to determine how much communities value the company.
• GlobeScan surveys the general populations in selected communities deemed to be affected by five BHP Billiton mines located around the world, including Mine X.
• For the first three years, surveying was done annually at each site. In the future, the plan is to survey at least once every two years.
• GlobeScan provides BHP Billiton management with a complete report on Mine X and an aggregate report covering the five sites.
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2005 INDEPENDENT ANNUAL SURVEY OF COMMUNITIES3
Methodology
• GlobeScan develops survey instrument and sample design and manages research.
• GlobeScan’s local research partner carries out the fieldwork in local language.
• 300 face-to-face interviews in the communities; 25-minutes.
• Random sampling of the general population: a random route for each interviewer; a systematic sample to select households and member of household.
• Sampling error of plus or minus 5.6 percentage points 19 times out of 20.
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2005 INDEPENDENT ANNUAL SURVEY OF COMMUNITIES4
Reasons for and Benefits of Surveying
• Determine whether the communities feel that they are better or worse off, and by how wide a margin, because of BHP Billiton’s operations and community programs.
• Reveal communities’ perceptions of the mine’s social, economic, cultural, and environmental impacts.
• Detect trends in perceived conditions, performance, etc.
• Help make the case for community programs.
• Help develop, focus, and assess community programs.
• Develop and refine communications programs.
• Develop key performance indicators (also with qualitative data).
• Sound advice to improve communities, as well as corporate performance and reputation.
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2005 INDEPENDENT ANNUAL SURVEY OF COMMUNITIES5
Selected Key Findings at Mine X in 2005
• Majorities view air quality, drinking water, and transportation as good; crime level, poverty, and availability of jobs as bad.
• Overall, 58 percent of residents say that their community is better off because of Mine X, up from 2004, but still below 2003.
• A majority think that Mine X has a very positive overall impact on the local economy, up 17 points compared to last year.
• Providing jobs is top choice for the most important economic benefit that Mine X should provide, followed by paying good wages.
• Majorities of residents perceive Mine X’s performance positively for being sensitive to local culture and traditions.
• Perceptions of Mine X’s overall commitment to environmental protection have declined significantly over past two years.
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2005 INDEPENDENT ANNUAL SURVEY OF COMMUNITIES6
Abbreviated Strategic Overview and Implications
• Mine X is trusted, has a good reputation, and is valued for its economic and socio-cultural contributions; but faces declining ratings for environmental performance.
• Mine X should consider pursuing environmental initiatives (e.g., water), given poor performance and importance of this area to reputation.
• Mine X could consider initiatives in other areas that are major shortcomings, namely contributing to local health care system and minimizing impacts on agriculture and livestock operations.
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2005 INDEPENDENT ANNUAL SURVEY OF COMMUNITIES7
Overall Community Conditions Compared with Five Years Ago
Average of Communities Surveyed, 2004-2005
The white space in this chart represents “DK/NA.”
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2005 INDEPENDENT ANNUAL SURVEY OF COMMUNITIES8
Most Serious Problems in Mine X Communities
Average of Communities Surveyed, All Mentions, 2004-2005
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2005 INDEPENDENT ANNUAL SURVEY OF COMMUNITIES9
Overall Impact on Mine X Communities
Average of Communities Surveyed, 2003-2005
The white space in this chart represents “DK/NA.”
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2005 INDEPENDENT ANNUAL SURVEY OF COMMUNITIES10
Mine X’s Perceived Environmental Performance
“Agree,” 2003-2005
*Asked only in port communities
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2005 INDEPENDENT ANNUAL SURVEY OF COMMUNITIES11
Best Ways for Mine X to Communicate with Population
All Mentions, Prompted, Average of Communities Surveyed, 2004-2005
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2005 INDEPENDENT ANNUAL SURVEY OF COMMUNITIES12
Drivers of Mine X’s Overall Performance Evaluation
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2005 INDEPENDENT ANNUAL SURVEY OF COMMUNITIES13
For further information, please contact:Rob Kerr, Vice PresidentGlobeScan [email protected]
Tel. +1.416.969.3086www.GlobeScan.com