Denver, CO, August 19, 2016 --(PR.com
)-- Trubshaw Cumberlege, Ltd., a leading social risk consulting firm, today announced that is has compiled the world’s most comprehensive empirical dataset on social conflicts between companies and communities. The dataset includes 1,010 social conflicts from 112 countries involving 1,028 companies, providing an unparalleled look into an emerging risk landscape that is costing companies billions of dollars every year. In March 2016 alone, 69 social conflicts tracked in the dataset had quantifiable financial costs of US$9.3 billion. In April 2016, 75 conflicts tracked had quantifiable costs of US$5.5 billion.
Although social conflict has become a significant material risk to companies, most are not adequately addressing it. “We still see too many companies that either believe its too expensive or they just apply a one-size-fits-all approach to mitigating social conflict risk across their project portfolios. This is the mindset we are trying to change,” Cumberlege explained.
Trubshaw Cumberlege began building its dataset in November 2014 to understand how social conflict differs across industries and countries, and most importantly, to measure the true cost of social conflict to companies. “We can now do this. One of the advantages of the dataset is that we can actually show our clients how the drivers of social conflict differ across industries and locations, and that once they arise, they also manifest themselves very differently,” said Sean Cumberlege, a Trubshaw Cumberlege Director.
The dataset builds on academic work that has provided persuasive evidence of a clear link between social risk and material financial costs to projects. For example, a joint study between academics at Harvard Kennedy School and Shift Project garnered considerable industry attention when it concluded that delays caused by social conflict lead to financial costs averaging $20 million per week for mining projects valued at between $3 and $5 billion. Whereas that study was based on interviews with professionals in the extractive industry and case analysis of 50 projects worldwide, Trubshaw Cumberlege has mapped 1,010 social conflicts. “This dataset makes a compelling financial case for adequately addressing social risk in order to avoid challenges by stakeholders due to real or perceived impacts on social, cultural, and environmental issues,” said Cumberlege.
“The dataset shows that engaging with stakeholders and addressing their concerns is good for business and that the small upfront investment it takes to do this effectively is dwarfed by the costs of a protracted conflict down the road,” said Cumberlege. “We also believe that the dataset shows that if social conflict risk is dynamic across industries and geographic locations, then efforts to minimize it ought to be too.”
Convincing companies to fully appreciate social conflict risk is just one of Trubshaw Cumberlege’s goals. “Our experience shows that the companies that address stakeholder concerns in the planning and feasibility stage of any operation are not only in a better position to minimize social conflict, but also in a better position to minimize social and environmental impacts, avoid human rights risks, and create genuine and lasting value to all stakeholders through meaningful and impactful corporate social responsibility efforts. It’s here that the rubber meets the road.”
About Trubshaw Cumberlege, Ltd.
Trubshaw Cumberlege is a social risk consulting firm that creates value and competitive advantage for clients by improving performance on environmental, social and governance issues that are strategically important to the business. We focus on assessing risk in complex environments using an innovative fusion of data analysis and human intelligence, and then help our clients mitigate these risks in a manner that also generating positive externalities for local communities and international stakeholders.
For more information contact:
Sean Cumberlege, Director
Press Kit: www.trubshaw.co/presskit