Guidance for business: what issues company should consider when communicating with the local community

January 18, 2024
UNDP Kyrgyzstan

In recent years, there has been an increase in interest in the concept of responsible business in Kyrgyzstan. Some companies are beginning to implement socially responsible practices in their operations, recognizing the importance of incorporating human rights, social responsibility and sustainability issues into their business operations.

The international organizations represented by the United Nations Development Program in Kyrgyzstan conducts a number of activities on the principles of responsible business conduct, provides advice and support to the business sector.

For a wider implementation of responsible business conduct in the country, it is necessary to strengthen the legal framework, create mechanisms to stimulate responsible business behavior on the part of the state, raise awareness and education of the business community and the population, and intensify interaction between business, government, civil society and other stakeholders. 

Despite the challenges and limitations, the implementation of the concept of responsible business in Kyrgyzstan is important for promoting sustainable economic and social development of the country, protecting human rights and creating a favorable environment for business and society as a whole.

Interaction with the local community is an important aspect of the successful implementation of business projects. Correct and effective communication with the residents of the project area can help prevent potential conflicts, build trust, gain support, and create a positive impact on the environment.

Key questions to consider when interacting with the local community about a planned business project: 

Employment and economic benefit

A business project can provide new employment opportunities for local residents and contribute to the development of the region's economy. It is important to discuss with the local community plans for job creation, development of local resources, and the contribution of the project to economic benefits for the local population.

Environmental impact

The planned business project may have various environmental impacts such as water resources, air pollution, noise and other aspects. It is important to pay attention to the environmental sustainability issues of the project and provide clear information about the measures taken to reduce the environmental impact.

Sociocultural aspect

The project may influence the social and cultural aspects of the local community, such as traditions, customs, lifestyle. It is important to show respect for the local culture and pay attention to the issues related to social inclusion and sustainable interaction with the local population.

Health and safety

The impact that an enterprise has on the health and safety of the local community, such as emissions, road safety, can become a stumbling block. It is important to consider multilateral issues related to monitoring and compliance with health and safety standards, to ensure transparency and openness in informing the local population about the measures taken to minimize risks.

Local community involvement

It is important to pay attention to the inclusion of the local community in decision-making processes on business project. This may include conducting consultations, open dialogues, hearings and other participatory mechanisms that will allow local residents to express their views, suggestions and concerns about the project.

Effective interaction with the local community in the planning and implementation of business projects is an important aspect of sustainable and socially responsible business. Focusing on key issues such as environmental impact, employment and economic benefits, socio-cultural aspects, health and safety, and community participation will build trust and support in the local community, reduce the risk of conflict and litigation, and improve sustainability and success of the business project in the long term.

Importance of feedback

In addition to actively listening to the views and concerns of the local community, it is also important to provide feedback and information on how the project will be implemented, what changes will be made and how possible problems will be solved. This will help build trust and openness with the local community.

Partnership and cooperation

Engagement with the local community should be based on partnership and cooperation, and not on a one-sided approach. This means the inclusion of the local community in decision making, joint planning and project implementation, in establishing long-term relationships based on mutual benefit.

Project longevity

Engagement with the local community should consider sustainability of the project in longer term. This may include measures to promote local community development, job creation, local infrastructure development, environmental protection and other aspects that contribute to the sustainable development of local communities.

Monitoring and evaluation

It is important to monitor and evaluate the interaction with the local community in the process of implementing a business project. This will help to evaluate the effectiveness of activities, adjust, and learn lessons for the future projects.

Specific steps before project planning

To ensure sustainable development and minimize the negative impact on the local community, companies must be socially responsible and conduct a community impact analysis before starting the implementation of planned projects.

The UN Guiding Principles on Business and Human Rights provide valuable guidance for businesses in planning and implementing projects to reduce negative impacts on communities and respect human rights. The main aspects that a business should consider based on the principles for responsible business conduct.

Implementation of operational consultations

Businesses should consult with the local community and stakeholders at the early stages of project planning. This includes providing information about the project, identifying potential risks and issues, and considering opinions and suggestions of the local community. Consultations should be transparent, inclusive of a wide range of stakeholders and take into account local cultural and linguistic characteristics.

Questions that businesses should ask themselves and find mechanisms to communicate with the local community to address them:

• What are the main problems/issues that members of the community may face in the relation to the company’s activities? 

• What organizations are most working to address these and other community issues? (e.g. farmer group, NGO, youth group, school committee, faith group, cooperative, etc.).

EXAMPLES OF QUESTIONS ASKED DURING COMMUNITY CONSULTATION:

INFORMING THE COMMUNITY

• Has the community been informed and consulted about the planned activities of the company, if so, when and by whom?

• Where did the consultations take place? What were the consultations about? How was the information provided?

LIVELIHOOD

• What are the main sources of income for people's lives?

• Can the company's activities change the way people live and incomes, and if so, how?

• How can the company's presence affect people's livelihoods, for example, people will get new jobs, the company's use of land will limit the ability of communities to farm, prices will rise due to the company's activities?

LAND ISSUES

• How do people use the land, e.g for agricultural purposes, for living, etc.?

• Has the company leased or bought land for its operations? At what price?

• If yes, was this land privately owned, or was it publicly owned land?

RESETTLEMENT

• Will there be relocation or displacement of people due to the company's activities? If so, how many people could potentially be resettled and where would they be resettled?

• If compensation is offered as part of the resettlement process, what exactly will be compensated and at what rates, e.g housing, land, crops?

• To whom will assistance and compensation be provided, e.g will all displaced persons be assisted or only some, if yes, to whom and why?

WATER AND ENVIRONMENT

• How can the company's activities affect the environment, such as noise, dust, vibration, deforestation, storage of toxic waste, and access to water?

• Are there examples of contamination, if so, what are they? Are the residents of the community concerned about their health?

SECURITY ISSUES AND CONFLICTS/PROTESTS

• Have there been any conflicts between the company and the community before, if so, when, in which regard and what happened? Was the conflict resolved, if so, how?

INTERNAL MIGRATION

• Are people expected to migrate to the area to work for the company, if so who and why, e.g people hoping to get a job?

• How are these new people integrating into the local community, are there any problems with this?

• Will the presence of these new people affect the availability of social services such as health care, educational facilities, or basic necessities?

EMPLOYMENT OF THE LOCAL POPULATION

• Is it planned to employ local people by the company, if so, who will they be, e.g their gender, skilled or unskilled people?

• Will people in the community benefit from the company's presence?

• Will children be involved in work related to the company? Does the company work to prevent child labor?

COMMUNITY DEVELOPMENT PROJECTS AND OPPORTUNITIES

• Does the company have community development projects? If yes, what are these projects and who implements them, for example, community members, company employees, local organizations?

• Have community members been consulted regarding such community development projects?

MANAGING COMPLAINTS

• Do people have complaints or concerns about the company's activities, and if so, what are they?

• How can people report their concerns or complaints to the company?

• Does the company have a grievance mechanism that people can access? Is this mechanism anonymous? Companies should establish mechanisms for handling and resolving disputes for local residents who may be affected by the project. These mechanisms must be accessible, transparent and effective, and the local community must be aware of how to use them. This may include the establishment of a public relations service, a hotline, the organization of public hearings, or the appointment of independent mediators.

In general, for a company at the level of its senior management, the following issues should be a subject of constant attention:

• How does the company usually communicate with the local population?

• Does the company have a stakeholder engagement plan?

• Who does the company consult with, e.g community members, non-governmental organizations, local authorities, etc.?

• How often does the company interact with different stakeholders?

Respect for cultural identity and the rights of indigenous peoples

Companies should take into account the cultural characteristics and rights of local residents if they live in the project area. This includes respecting and protecting their rights to land, water, forests and other resources, as well as respecting their traditions, customs and way of life. Businesses should engage in dialogue with local residents and include their opinion in the decision-making process regarding the project.

Social responsibility and transparency

Companies must operate with social responsibility and transparency, including open and honest communication with the local community, stakeholders and authorities. Report on their activities and their impact on the local community, including measures taken to reduce negative impacts and respect human rights.

In preparing this material, the methodological recommendations of the Danish Institute of Human Rights for assessing the impact of business on human rights were used.

This article is a part of an information campaign to promote human rights issues in the aspect of entrepreneurship in Kyrgyzstan within the framework of the UNDP project "Business and Human Rights" (B + HR), with the financial support of the Government of Japan.

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The United Nations Development Programme (UNDP) is one of the leading development organizations in Kyrgyzstan. Since 1993, we have been working in various areas, including inclusive development, environmental protection, crisis response, gender equality promotion, and collaborative efforts towards sustainable development goals.

Media Contact: Nurzhan Alymkanova, Communications Specialist, UNDP Nurzhan.alymkanova@undp.org