The role of stakeholder dialogue: NGOs and foreign direct investments

Abstract

Purpose – This paper seeks to analyse the role of stakeholder dialogue, in particular with non‐governmental organisations (NGO), in connection with a foreign direct investment. Specific emphasis is placed on the NGOs' perspective on dialogue process.Design/methodology/approach – This paper focuses on a case of a pulp mill in Uruguay. It adds to previous research by focusing on the dialogue as a process and the NGO viewpoint in the conflict. The arguments of two key NGOs headquartered in Uruguay and Argentina are analyzed with particular emphasis on how the argumentation evolves in relation to stakeholder dialogue in the case.Findings – The case consists of two entirely different dialogue processes. The first process was conducted by the investing company as information providing and consultation. Despite a more thorough process in theory, the NGO argumentation shows deep mistrust in the second process conducted by the International Finance Corporation. Therefore, it is argued that, as the degree of prepar...