Use of a multiple capital framework to identify improvements in the CSR strategies of Australian resource companies

Abstract

Multiple capital or asset-based frameworks are a tool to help understand corporate contributions to sustainability. This study applied a six-capitals framework (financial, human, social, natural, built and cultural) to evaluate the local impacts and benefits of resource extraction within rural Australia. Data were captured from 25 resource companies located across three jurisdictions (two states and one territory).The study drew upon the concept of corporate social responsibility (CSR), including incorporating critical perspectives from both companies and stakeholders regarding the capacity of CSR programs to build capitals. This furthered understanding of the linkages between company practice and sustainability, including the capability of high-level strategic CSR to build multiple capitals simultaneously.The study showed that building capitals required strategic, grass-roots and collaborative approaches to CSR either through company programs or resources being divested to external stakeholders. Critical to enabling the building of capitals were well designed and flexible policy instruments at the company, local, regional and broader jurisdictional scales. The study also highlighted the importance of building community and stakeholder social and cultural capitals to underpin CSR programs and linkages to meet local aspirations.Overall, to address regional sustainability concerns, the study emphasized the need to consider CSR at a wider institutional perspective rather than the individual company level. The Australian cases highlighted significant gaps in capacity and therefore limited ability to achieve a net gain in capitals.