How to be a socially-responsible real estate developer

Written by Posted On Friday, 14 July 2017 02:14

Question. How will a real estate developer use a social impact assessment tool to address public conflict and win support for the project?

Answer. The incontrovertible goal of using a social impact assessment tool is to ensure that the social impact assessment of the real estate development is carried out in conjunction with social scientists and relevant stakeholders in a problem-solving process that will take account of the culture and values of the existing community. The problem-solving process will be carried out with the assistance of a professional facilitator, so that conflicting interests are resolved fairly. The interests of all relevant stakeholders will be considered fairly in a modus operandi that will have an impact on the final decision. Social impact assessment is considered to be less definitive, scientific, and conclusive but it is more of an input into a discussion. In light of this the social impact assessment of a real estate development will be carried out in conjunction with representatives of groups likely to be adversely affected by the real estate development in the region. When the public is involved in the social impact assessment process, it promotes transparency and this builds trust between all the decision making agencies. The inclusion of the public mitigates the occurrences of future conflicts.

Question. How would you scope and run a SIA for a real estate development?

Answer. The process of scoping involves the setting of a time frame and the setting of geographical boundaries for a social impact assessment of the proposed project. Scoping for social impact assessment is quite different from scoping for environmental impact assessment. The scale of the networks through which social impact occurs is wide as compared to the narrow scale that is set for studying the environmental impact of the proposed project. With social impact assessment, the decisions are non objective. This implies that even social scientists cannot confidently give required boundaries for the project. A far-sighted measure to deal with the non objective judgements in a fair way is to bring on board the relevant groups who will be affected by the social impact of the real estate development in a problem-solving process. By involving these groups at the initial stage of scoping will ensure that the dimensions of impact, the time frame, the range of projects and the geographical boundaries are chosen in a way that fairly reflects the interests of all stakeholders.

Question. How would you organize the roles and responsibilities of the various parties?

Answer. The social impact assessment process will involve all relevant stakeholders in a problem-solving process such that stakeholder interests are fairly represented in a way that will have an impact on the final outcome. A facilitator will be included to make sure that every stakeholder is given a fair opportunity to communicate their interest. The social impact assessment tool commences with scoping, where time frame and geographical boundaries are set. Option generation examines a no build option, the proposed build project and the modified project. The next step is the specification of the dimension of impact. Scaling and weighting of impacts becomes the next step. Forecasting is the last but one step. Choosing among the possible options given the likely impact is the last step.

In using social impact assessment tool in conjunction with relevant stakeholders, the goal is to receive information from all relevant stakeholders that are involved. Through negotiation, groups that will be affected by the proposed project will have their needs fairly met. By making a decision in conjunction with regulators, social scientists, local and regional stakeholders on the social impact of the proposed project, all stakeholder interests will be fairly represented in a way that will affect the final decision. The occurrences of future public conflict are mitigated when the interest of the public is fairly represented and considered.

Credit: Urban and Environmental Planning, Massachusetts Institute of Technology

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Alexander Ayertey Odonkor

Alexander Ayertey Odonkor is a chartered economist and a chartered financial analyst with expertise in real estate finance and investment . Alexander completed a professional education in electronic trading in financial markets from the New York Institute of Finance. He holds a postgraduate certificate in real estate development from the Massachusetts Institute of Technology. He is a fellow of the Global Academy of Finance and Management. He has a stellar international experience in financial programming and policies from the International Monetary Fund.

www.alexanderayerteyodonkor.com

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