Why VPs and how ?

[Stakeholders Roundtable on VPs in Nigeria]

(Excerpt from VPs Implementation Guidance Tools - IGT )

Why implement the VPs?

There are several reasons why implementation of the VP is important:

·         Reduction in production delays;

·          Maintenance of “Social License to Operate”;

·         Access to financing – for example, via Equator Principles financial institutions or the International Finance Corporation;

·         Mitigation of litigation risk;

·         Maintenance/enhancement of company reputation; and

·         Confidence in operating successfully in complex business environments.

What does it take to implement the VPs?

While there are clear benefits to employing the VPs, implementing them on the ground is rarely straightforward. The effective implementation of the VPs is facilitated by several key factors including:

Corporate mandate “from the top” – An explicit corporate-level commitment to respecting human rights is a key enabling factor that helps country and project-level staff effectively implement the VPs.

 Internal cooperation across departments / functions – Successful implementation of the VPs requires collaboration and cooperation between different corporate functions (e.g. security, community relations, governmental or external affairs, environment, etc.) or for smaller companies, alignment between individuals involved in those functions. It is impossible for one department or function (e.g. security) to implement the VPs successfully on its own.

Local community support as a key security measure – Seeking to achieve local community support (“social licence to operate”) is often one of the most important layers of security protection a company can possess. Similarly, alignment between community engagement activities and the security function is a critical component of VPs implementation.

Cooperation with external stakeholders – It is very difficult, if not impossible, for one company to successfully implement the VPs on its own without working with other stakeholders. Governments, NGOs, local communities and others all have a role to play in making VPs implementation work. 

I hope this is useful!

Jerry Nwigwe  (LITE Africa)