**5.3 Which factors should be raised above the industry's standard?**

Relative power from community members should be raised. Relative power is crucial in the trusting process. If the trusted party is within a position authority, there is a deviation towards trusting because he can authorize an individual who abuses his trust. On the other hand, if the trusted party has little or no position of authority, he becomes vulnerable to the other's party interests and would become less comfortable. Either way, prior to the dialogue table, community members did not have authority nor power. Once the dialogue table was settled, each participant had a vote. This means that a farmer from a rural village has the same power and authority that the other members, including the firm's agents and the president of the region.

Secondly, stakeholder representation on decision-making committees should be raised. The following strategy exhibits that mining firms are aware of stakeholder's interests. Within Quellaveco's project, one of the last consensuses was that a Participatory Monitoring Committee will be created and framed by key stakeholders, civilians and institutions from local and regional governments will be made to screen the ecological effect during activity to oversee the environmental impact during the firm's operations.

Thirdly, choice by agreement based methodology should be raised. Trust can be influenced by consensus, noticed. One of the government representatives at Quellaveco's project stated: "The norm stated that any agreement should be done through consensus. We were looking for a discussion council to understand each party's perspectives and to eventually join a consensus, not a voting session."

In the fourth place, transparency should be raised. Stakeholder's trust is increased by transparency; Expanding the stakeholder's trust, a business separates itself and develops. Among non-employee stakeholders, trust creates considerable cooperative behavior, lowering operational costs, improving business reputation, and recruiting and holding new clients and skilled workforce. Call this the transparency-trust agreement. Within Quellaveco's project, the firm's agent stated: "The meetings were available to people in general, so the press could be there at any second, and some meetings were broadcasted live".

*Corporate Social Responsibility Strategy to Raise the Value to the Community in the Mining… DOI: http://dx.doi.org/10.5772/intechopen.94475*

Finally, support should be raised. The advantages of participation are ascribed to bigger trust, more prominent sentiments of control, better firm identity, and bigger goals. In the end, it upgrades trust and adds to a feeling of proprietorship and dominance, improving the acceptance system and dedication. On inspiration and active involvement, individuals lessen resistance to change and intensify acceptance of and commitment to both changes and decisions. In any case, there were numerous members from various firms: Those who were against and those who were in favor of the project.

Withing Tintaya's case, an agent from the organization stated: "While the facilitator made a list of issues, everybody was questioned regarding their opinions on the issues. They conclude that there were four issues: human rights, land, sustainable development, and natural issues. Afterward, we asked each member which committee they would prefer to join."

## **5.4 Which factors should be created that the mining industry has never offered?**

"Create" didn't emerge in the interviews. Alternately, the following three concepts had emerged: share, compensate and enhance.

Share profits. Within Tintaya's project, the firm will annually share 3% of its profits with the community. Moreover, the firm created the "Tintaya Foundation" to finance community initiatives including technical training, irrigation, and different agricultural projects. With this accord, history was made since it was the first direct profit transfer from a mining firm towards a community in Peru.

Share norms of behavior. Trust cant be shaped without any previous foundation. Habitually, is created and evolved when two parties consistently agree to the equivalent moral and/or social norms and regulations. Within Tintaya's case study, an agent from the firm stated: "The facilitator had more vision than us since he did not take any parties side. Since the earliest encounter, he helped set up a few guidelines of conduct. This seemed to be ordinary, nearly ridiculous. The rules were stated as follows: Listen to each other, and respect everyone's opinion. Nonetheless, they were very useful". The equivalent occurred within Quellaveco's case: a participant created a guideline that established standards such as respect, transparency, equity, and participation.

Compensate by kindhearted concern. In both case study's, the firms created a Social Fund, established as a non-profit organization formed by organizations representing civilians, intending to be recipients of social responsibility expenses to be made by the firm and give an appropriate use of the money to accomplish regional development.

Enhance resemblance. We are tribal at our core, which is the reason individuals trust easily those who look alike to themselves. Similitudes may incorporate values, group identity, personality attributes. Within Tintaya's case study, the facilitator referenced: "We needed to create some systems and the proposal, which was agreed on by all, was to not leave a question unanswered. As a result, all the parties involved could express their purpose of existence clearly. Also, we felt that it would be a lot simpler for the firm to state its reason for existence and purpose. On the NGO's side, it was intriguing because they also explained their identity, partners, financial background, and their sole purpose and objective. This system shattered various tales. If tales are not shattered, you can't believe that the opposite party shares something with you. That is the most important lesson.

Enhance capability. The manager habitually evaluates capability upon the decision to trust or delegate authority to the individuals who work for them. Within

#### *Corporate Social Responsibility*

Tintaya's case study, a delegate from the NGO stated: "The community was not prepared for a negotiation. The community did not have a clue how to perfom upon arrival at the negotiation table to reach a solution". Additionally, a delegate from the firm referenced: "We are a mining firm with top professionals. This being said, an unevenness in dialogue resulted since the community did not have the same opportunities". Afterward, a leader of the community stated: "We decided as a group to search for assistance, so we could construct the capacity of the communities in how to participate in this type of dialogue. When this limit building was finished, the process starts managing easily".

Enhance leadership. Relationship – oriented leadership, which suggests a moral implication, has a positive connection with trust, and associations as to administration – trust relationship varies measurably. Within the Tintaya's case study, prior to the dialogue table, community members did not want the presence of the firm's general manager since they couldn't trust him. Hence, while the discussions were taken place at the Dialogue table, the firm assigned Paul Warner, a headquarter-based manager, a man who, as indicated by one delegate NGO, unmistakably had the power within the firm to follow through on his promises. Contrastingly, in Quellaveco's case study leadership was generated from the base since the Regional Government started a dialogue table including 27 local stakeholders.

Enhance the alignment of interests. Before an individual place her trust in another person, she cautiously gauges the question "How likely is this individual to assist my advantage?" Trust is a reasonable response when an individual's interests are aligned. In both cases, members had their interests, yet they found a common interest which was social development. For example, within the Tintaya's case study, a community representative stated: "We assembled a Development Table were we identified the community's social issues and attempt to discover a solution to them by working cooperatively".

Enhance predictability and integrity. Sooner or later within the trust decision, trusters ask: Within Quellaveco's case study, one of the community representatives stated: "The rule was as follows: If you had a commitment to do or a prior assignment to do it before entering to another understanding, do not let accumulate tasks. It implies we didn't proceed to a new agreement before verifying if the past ones were finished. At this point, we all did a colossal effort to consent with agreements and be reliable. Similarly, within the Tintaya case study, before the dialogue Table, there was distrust. A delegate from the community stated: "We had consistently imagined that mining firms would enslave us with their laws and procedures. That was our point of view. Deceival was the feeling shared at the first encounter".

Enhance the level of communication. Solid communication is crucial since trust is a relational concept. As anyone might expect, transparent communication frequently helps the decision to trust, whereas poor (or none) communication produces doubtfulness. When Tintaya's case study, before the dialogue table, zero communication was found between the organization and the community. Nevertheless, following the dialogue table, the level of communication increase.

In summary, six strategies are found: Elimination, Reduction, Raising, Compensating, Enhancing, and Sharing. See **Table 1**.

CSR, as value innovation, is created both its cost structure and its value proposition to the community. Cost reductions are made by removing and lessening the factors mining competes on such water resources (Quellaveco), environmental impacts (Quellaveco and Tintaya), and land (Tintaya). Community value is lifted by raising, compensating, enhancing, and sharing CSR elements the mining has roughly offered. See **Figure 1**.

*Corporate Social Responsibility Strategy to Raise the Value to the Community in the Mining… DOI: http://dx.doi.org/10.5772/intechopen.94475*


#### **Table 1.**

*CSR Strategies to reduce cost (Eliminate and Reduce) and raise value to community (Raise, Compensate, Enhance and Share).*

**Figure 1.** *CSR as value innovation.*
