4B.3 Management and resources

The level of human and financial resources allocated to contractor social management and the departments involved depends on the type and severity of the potential social and human rights impacts and risks associated with a contract. EPCM contracts require a more intense level of involvement of the social performance team than a transportation contract, for example.

For high-risk contracts, the social performance manager should participate in risk, impacts and opportunities identification; developing tender documentation and questions; assuring that social performance is appropriately weighted in the bid evaluation, assessing bids, developing and reviewing contract content; developing and approving the CSMP; and monitoring the implementation of social performance requirements.

The risk-assessment and sourcing process of contracts with less complex potential social and human rights impacts and risks, for example those where potential social and human rights impacts and risks have environmental and/or technical causes, can follow a more standardised approach that may not require significant involvement of the social performance team.

Responsibilities of the social performance team in labour-related issues in the supply chain differ by site. It is important that responsibilities are clarified to ensure effective coverage of labour-related issues in the sourcing process, contractual language, and monitoring of contract implementation. For example, the social performance team is typically not responsible for procuring local goods and services or for hiring local contractor workers. However, the criteria for what ‘local’ means and/or targets for local hiring can be developed by or in co-ordination with social performance teams, and subsequently used by the human resources and supply chain teams for the site’s hiring, sourcing, monitoring, and auditing processes.

Table 4B.3 outlines what roles and responsibilities in contractor social management typically look like; these, however, may differ by site.

Table 4B.3 Roles and responsibilities in contractor social management

COMPANY LEVEL	PERSON	ROLE
GROUP	Social Performance	Provide advice and support on how to meet required standards and international practice
GROUP	Supply Chain	Provide advice and support to ensure alignment with Supply Chain standards and processes Escalation point for contract related grievances and incidents in the supply chain as required
BUSINESS UNIT	Social Performance	Ensure contractor social management learnings are effectively communicated across the BU portfolio.
SITE	Social Performance	Develop site-specific criteria for socially material contracts. Screen for social materiality, as required. Input into the contractor social management process as required and depending on the scope of the contract and/or its associated potential social and human rights impacts and risks. Input may include: screen for social materiality, assessing potential social and human rights impacts and risks associated with the contract, defining specific social performance requirements for the scope of work, preparing tender documentation, specifying social KPIs and other requirements to be included in contracts, developing and/or approving the CSMP, contractor pre-mobilisation checking for social performance issues, contributing to contractor engagements and audits, and assisting in the closure of contracts. Provide advice and guidance to the company representative appointed to govern the contractor relationship, as well as to the end-user and to the contractor and their staff, on social performance requirements and expectations as required. Participate in incident investigations as required. Investigate grievances related to contractors as required. Develop definitions, criteria and/or targets for local procurement and local hiring.
SITE	Supply Chain	Screen for social materiality, as required. Prioritise local procurement. Monitor local procurement in the supply chain as required. Conduct local-procurement-related audits of the supply chain. Investigate local-procurement-related grievances and incidents in the supply chain as required. Negotiate contractual requirements with contractors. Site contractor management procedures developed and implemented in a manner consistent with applicable legislation and this guidance.
SITE	Legal	Develop contractual language.
SITE	Human Resources	Assess labour-related risks and impacts in the supply chain as required. Develop requirements and contractual language for labour-related issues in the supply chain. Monitor local hiring in the supply chain as required. Conduct labour-related audits of the supply chain. Investigate labour-related grievances and incidents in the supply chain as required.
SITE	Security	Develop contractual requirements for security contractors. Monitor security-related contractual requirements. Investigate security-related incidents and grievances as required.
SITE	S&SD	Develop contractual requirements for SHE-related issues. Monitor SHE-related contractual requirements. Investigate SHE-related incidents and grievances as required.
SITE	General Manager	Ensure that all individuals involved in contractor social management are properly trained, competent, and resourced to effectively carry out their respective roles. Ensure that contractor social management is regularly audited for compliance with legal requirements and this guideline.
SITE	End-user/requester	Ensure that technical specifications related to contractor requirements are provided to supply chain. Define performance requirements of contractors to supply chain. Support potential pre-tender briefings. Support performance monitoring of selected contractors.
SITE	Designated company representative	Ensure contractual obligations are implemented. Day-to-day management of the contractor relationship on site and adherence to the defined requirements and KPIs which may relate to social performance. Monitor contractor performance and ensure that any non-conformances or non-compliances are managed and addressed. This may include social performance issues. Ensure contractors have all the required permits and authorisations to complete their work and activities.

4B Contractor social management

4B Contractor social management