The design and development of appropriate regulatory mechanisms have attracted renewed attention in recent years. In particular, a shift towards voluntary self-regulatory mechanisms has been witnessed within many industries, such as the Australian mining and petroleum industries which have developed voluntary codes of conduct. This paper analyses the development of different regulatory forms and provides a brief comparative analysis of the two main voluntary codes of conduct used by the Australian mining and petroleum industries. In particular, the study focuses on (...) the integration of social sustainability elements within these frameworks that help contribute to solving issues such as coverage of human rights, approaches to employee and community relations, systems of stakeholder engagement, community consultation and public reporting. The study concludes that stakeholders have an important role to play in driving the introduction of voluntary regulation. This phenomenon can be traced back to how a company’s need to maintain its legitimacy, or social licence to operate, often motivates it to go beyond compliance. By providing a fuller understanding of factors driving the evolution of different regulatory mechanisms, this study has important implications for policy makers and practitioners interested in developing effective regulation. (shrink)

For more than three decades, business ethics has suggested and evaluated strategies for multinationals to address abject deprivations and weak regulatory institutions in developing countries. Critical appraisals, internal and external, have observed these concerns being severely constrained by the overwhelming prioritization of economic values, i.e., economism. Recent contributions to business ethics stress a re-imagination of the field wherein economic goals are downgraded and more attention given to redistribution of wealth and well-being of the weaker individuals and groups. Development ethics, a (...) lesser known field of normative enquiry, already offers nuanced justifications against economism which business ethicists can use in their current attempts to wean the field from old habits. (shrink)

Scholars of stakeholder management have long grappled with the question of how to communicate with stakeholders to enhance cooperation and reduce conflict. We build on insights from the literature on stakeholder dialog to highlight the importance of four elements of firm–stakeholder dialog processes: timing, valence, richness, and topicality of firms’ responses to stakeholder engagements. We demonstrate a link between these elements of the firm–stakeholder dialog process and changes in stakeholder cooperation or conflict with the firm, as well as contingent tradeoffs (...) among them. Specifically, we show that the relative importance of these elements is contingent upon stakeholder type and status. Government actors prioritize richness and topicality over timeliness and valence. Economic actors, by contrast, prioritize timeliness and valence. Civil society stakeholders prioritize timeliness, valence, and topicality over richness. Low-status actors across sectors deprioritize topicality and richness while high-status actors demand attentiveness to all four elements. (shrink)

This article analyses the ethics of how community engagement and dialogue as applied by a mining corporation in Chile led to erosion of the community’s psychological freedom despite being aligned with best practice. This article details how a mining company squeezed the psychological freedom of the community in order to obtain an agreement between the period of 2000 and 2016. The findings focus particularly on a 9-month period between 2015 and 2016 when the company undertook intense community engagement. The article (...) identifies six corporate action phases undertaken which curtailed the community’s psychological freedom as paying off local leaders; challenging via courts of law; co-opting community lawyers; prohibiting a key debate during dialogue; and remaining silent after failing to honour its own self-imposed rule. The findings label the company’s community engagement as contradictory; while it conducted transitional and transformational engagement in formal spaces, it also engaged in unethical strategies in the informal spaces of community engagement. The result was overall community consent and an even more fragmented community. This article finds that when it limits the psychological freedom of participants, who are already divided as a group, corporate–community engagement can be viewed as ethically problematic. Based on analysis of the literature and an empirical case analysis, this article contributes a test for assessing the ethics of CCE. (shrink)

Taking advantage of economic opportunities has led to numerous conflicts between society and business in various geographies of the world. Companies have developed social responsibility programs to prevent and manage these types of problems. However, some authors comment that these programs lack a strategic vision. Starting with the Working with People model, created for the field of rural development planning, this paper proposes a methodology to prevent the generation of social conflicts from business strategy: the territorial dimension. The proposal emphasizes (...) that local development support prevents the generation of social conflicts. Finally, an experience in Peru, a country that has been characterized in recent years by high economic growth and also by the presence of social conflicts that have stopped entrepreneurship is analyzed. (shrink)

Since the early 1990s, the extractive industries have increasingly valued corporate social responsibility in the communities where they operate. More recently, these industries have begun to recognize the importance of adapting CSR efforts to unique local contexts rather than applying a one-size-fits-all model. However, firms understand local context to mean culture and treat the physical properties of the host region—topography, geology, hydrology, and climate—as the exclusive purview of mineral geologists and engineers. In this article, we examine the organization of CSR (...) at two industrial-scale gold mines in Guatemala, owned by the same firm, which yielded starkly distinct levels of support among host community residents. We develop the idea of social terrain to convey the way in which the biophysical environment informs local social relations and imbues phenomena with particular social meanings. We argue that firms must account for social terrain in organizing for CSR. The literature struggles to provide guidelines for identifying and understanding stakeholders. Social terrain, we argue, can begin to bridge this gap between theory and practice. (shrink)