Mechanisms of change: Stakeholder Engagement in the Australian Resource Sector through CSR

Abstract

AbstractThe study sought to draw new perspectives on how corporate social responsibility (CSR) is shaped and created within the resource sector. The study focused on examining the role of external stakeholders in influencing the CSR strategies implemented by Australian resource companies. Data were gathered by semi‐structured interviews with key stakeholders involved with 25 resource companies located in South Australia, Western Australia, and the Northern Territory.Consistent with sociological theories of CSR, stakeholders such as business and community leaders, non‐government organizations (NGOs), and government employees were able to influence CSR by empowering communities to participate in CSR, bridging cultural divides between companies and communities, and linking companies to key society standards. This was facilitated by the expression of personal ethical values and knowledge sets by stakeholders and where relevant those of their organization.A range of stakeholders were active agents of change, bringing in new ideology, skills, and expertise, and, at times, challenging existing corporate practice. This process was underlined by relationship building and trust. Stakeholders effectively introduced higher ethical values to concepts of public accountability, environmental sustainability, and social justice in line with personal and organizational ethics.The study also identified factors which promoted stakeholder influence and gave stakeholders power within CSR. This included a range of institutional‐level factors such as regulatory and legal frameworks, company policy, and cultures, but also interpersonal skills and abilities of the individuals involved.The study highlights the strategic benefits of stakeholder involvement in CSR within the Australian resource sector and discusses implications for the broader resource industry. Copyright © 2018 John Wiley & Sons, Ltd and ERP Environment