IDEAS home Printed from https://ideas.repec.org/a/wly/sustdv/v31y2023i1p125-137.html
   My bibliography  Save this article

Sustainability management and social license to operate in the extractive industry: The cross‐cultural gap with Indigenous communities

Author

Listed:
  • Olivier Boiral
  • Iñaki Heras‐Saizarbitoria
  • Marie‐Christine Brotherton

Abstract

This study aims to analyze the role of cross‐cultural differences between Indigenous communities and extractive organizations with regard to the sustainability measures these organizations employ. Although Indigenous communities are important stakeholders, especially in remote areas where extractive organizations are mainly located, these organizations' relationships with Indigenous communities have been overlooked in the literature on sustainability management. Drawing on a qualitative study based on 25 semi‐structured interviews with Canadian respondents, the findings show how cross‐cultural issues tend to create misunderstandings that can seriously undermine organizations' social license to operate and their initiatives for sustainability. Those issues—which include cultural differences in terms of connectedness with nature, spiritual and historical attachment to a specific territory, reliance on written documents, and conception of time—are analyzed through the lenses of practitioners with significant experience in the relationships between extractive organizations and Indigenous communities. This paper proposes measures to better manage this cross‐cultural gap. The study contributes to the literature on corporate sustainability by going back to the roots of this concept and by shedding more light on the importance of a specific category of stakeholders that tends to be overlooked in the managerial literature.

Suggested Citation

  • Olivier Boiral & Iñaki Heras‐Saizarbitoria & Marie‐Christine Brotherton, 2023. "Sustainability management and social license to operate in the extractive industry: The cross‐cultural gap with Indigenous communities," Sustainable Development, John Wiley & Sons, Ltd., vol. 31(1), pages 125-137, February.
    • Handle: RePEc:wly:sustdv:v:31:y:2023:i:1:p:125-137
    DOI: 10.1002/sd.2378
    as

    Download full text from publisher

    File URL: https://doi.org/10.1002/sd.2378
    Download Restriction: no
    File URL: https://libkey.io/10.1002/sd.2378?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Zurba, Melanie & Diduck, Alan P. & Sinclair, A. John, 2016. "First Nations and industry collaboration for forest governance in northwestern Ontario, Canada," Forest Policy and Economics, Elsevier, vol. 69(C), pages 1-10.
    2. Bice, Sara & Brueckner, Martin & Pforr, Christof, 2017. "Putting social license to operate on the map: A social, actuarial and political risk and licensing model (SAP Model)," Resources Policy, Elsevier, vol. 53(C), pages 46-55.
    3. Bruce Muir & Annie Booth, 2012. "An environmental justice analysis of caribou recovery planning, protection of an Indigenous culture, and coal mining development in northeast British Columbia, Canada," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 14(4), pages 455-476, August.
    4. Natalia Yakovleva & Diego Vazquez-Brust, 2012. "Stakeholder Perspectives on CSR of Mining MNCs in Argentina," Journal of Business Ethics, Springer, vol. 106(2), pages 191-211, March.
    5. Fraser, Jocelyn, 2021. "Mining companies and communities: Collaborative approaches to reduce social risk and advance sustainable development," Resources Policy, Elsevier, vol. 74(C).
    6. Lisa Calvano, 2008. "Multinational Corporations and Local Communities: A Critical Analysis of Conflict," Journal of Business Ethics, Springer, vol. 82(4), pages 793-805, November.
    7. Prno, Jason, 2013. "An analysis of factors leading to the establishment of a social licence to operate in the mining industry," Resources Policy, Elsevier, vol. 38(4), pages 577-590.
    8. Leena, Suopajärvi & Karina, Umander & Jungsberg, Leneisja, 2019. "Social license to operate in the frame of social capital exploring local acceptance of mining in two rural municipalities in the European North," Resources Policy, Elsevier, vol. 64(C).
    9. Kevin P. Kepore & Benedict Y. Imbun, 2011. "Mining and stakeholder engagement discourse in a Papua New Guinea mine," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 18(4), pages 220-233, July.
    10. Tobias Hahn & Frank Figge & Jonatan Pinkse & Lutz Preuss, 2018. "A Paradox Perspective on Corporate Sustainability: Descriptive, Instrumental, and Normative Aspects," Journal of Business Ethics, Springer, vol. 148(2), pages 235-248, March.
    11. Deanna Kemp, 2010. "Community relations in the global mining industry: exploring the internal dimensions of externally orientated work," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 17(1), pages 1-14, January.
    12. Costanza, Jennifer Noel, 2016. "Mining Conflict and the Politics of Obtaining a Social License: Insight from Guatemala," World Development, Elsevier, vol. 79(C), pages 97-113.
    13. Anju Seth & Howard Thomas, 1994. "Theories Of The Firm: Implications For Strategy Research," Journal of Management Studies, Wiley Blackwell, vol. 31(2), pages 165-192, March.
    14. Hilson, Gavin, 2012. "Corporate Social Responsibility in the extractive industries: Experiences from developing countries," Resources Policy, Elsevier, vol. 37(2), pages 131-137.
    15. Slack, Keith, 2012. "Mission impossible?: Adopting a CSR-based business model for extractive industries in developing countries," Resources Policy, Elsevier, vol. 37(2), pages 179-184.
    16. Tindana, P.O. & Rozmovits, L. & Boulanger, R.F. & Bandewar, S.V.S. & Aborigo, R.A. & Hodgson, A.V.O. & Kolopack, P. & Lavery, J.V., 2011. "Aligning community engagement with traditional authority structures in global health research: A case study from Northern Ghana," American Journal of Public Health, American Public Health Association, vol. 101(10), pages 1857-1867.
    17. François Maon & Adam Lindgreen, 2015. "Reclaiming the Child Left Behind: The Case for Corporate Cultural Responsibility," Journal of Business Ethics, Springer, vol. 130(4), pages 755-766, September.
    18. Holley, Elizabeth A. & Mitcham, Carl, 2016. "The Pebble Mine Dialogue: A case study in public engagement and the social license to operate," Resources Policy, Elsevier, vol. 47(C), pages 18-27.
    19. Tobias Hahn & Frank Figge, 2011. "Beyond the Bounded Instrumentality in Current Corporate Sustainability Research: Toward an Inclusive Notion of Profitability," Journal of Business Ethics, Springer, vol. 104(3), pages 325-345, December.
    20. David Schlosberg & David Carruthers, 2010. "Indigenous Struggles, Environmental Justice, and Community Capabilities," Global Environmental Politics, MIT Press, vol. 10(4), pages 12-35, November.
    21. Kemp, Deanna & Worden, Sandy & Owen, John R., 2016. "Differentiated social risk: Rebound dynamics and sustainability performance in mining," Resources Policy, Elsevier, vol. 50(C), pages 19-26.
    22. Prno, Jason & Scott Slocombe, D., 2012. "Exploring the origins of ‘social license to operate’ in the mining sector: Perspectives from governance and sustainability theories," Resources Policy, Elsevier, vol. 37(3), pages 346-357.
    23. Temper, Leah & Martinez-Alier, Joan, 2013. "The god of the mountain and Godavarman: Net Present Value, indigenous territorial rights and sacredness in a bauxite mining conflict in India," Ecological Economics, Elsevier, vol. 96(C), pages 79-87.
    24. Heledd Jenkins, 2004. "Corporate social responsibility and the mining industry: conflicts and constructs," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 11(1), pages 23-34, March.
    25. Mutti, Diana & Yakovleva, Natalia & Vazquez-Brust, Diego & Di Marco, Martín H., 2012. "Corporate social responsibility in the mining industry: Perspectives from stakeholder groups in Argentina," Resources Policy, Elsevier, vol. 37(2), pages 212-222.
    26. Prince Amoah & Gabriel Eweje, 2021. "Impact mitigation or ecological restoration? Examining the environmental sustainability practices of multinational mining companies," Business Strategy and the Environment, Wiley Blackwell, vol. 30(1), pages 551-565, January.
    27. Demajorovic, Jacques & Lopes, Juliana Campos & Santiago, Ana Lucia Frezzatti, 2019. "The Samarco dam disaster: A grave challenge to social license to operate discourse," Resources Policy, Elsevier, vol. 61(C), pages 273-282.
    28. Fordham, Anne Elizabeth & Robinson, Guy M. & Blackwell, Boyd Dirk, 2017. "Corporate social responsibility in resource companies – Opportunities for developing positive benefits and lasting legacies," Resources Policy, Elsevier, vol. 52(C), pages 366-376.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Hector Viveros, 2016. "Examining Stakeholders' Perceptions of Mining Impacts and Corporate Social Responsibility," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 23(1), pages 50-64, January.
    2. Veronica Devenin & Constanza Bianchi, 2018. "Soccer fields? What for? Effectiveness of corporate social responsibility initiatives in the mining industry," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 25(5), pages 866-879, September.
    3. Alberto Diantini & Salvatore Eugenio Pappalardo & Tim Edwards Powers & Daniele Codato & Giuseppe Della Fera & Marco Heredia-R & Francesco Facchinelli & Edoardo Crescini & Massimo De Marchi, 2020. "Is this a Real Choice? Critical Exploration of the Social License to Operate in the Oil Extraction Context of the Ecuadorian Amazon," Sustainability, MDPI, vol. 12(20), pages 1-24, October.
    4. Santiago, Ana Lúcia & Demajorovic, Jacques & Rossetto, Dennys Eduardo & Luke, Hanabeth, 2021. "Understanding the fundamentals of the Social Licence to Operate: Its evolution, current state of development and future avenues for research," Resources Policy, Elsevier, vol. 70(C).
    5. Wilson, Sigismond A., 2022. "Measuring the effectiveness of corporate social responsibility initiatives in diamond mining areas of Sierra Leone," Resources Policy, Elsevier, vol. 77(C).
    6. Yıldız, Taşkın Deniz & Kural, Orhan, 2020. "The effects of the mining operation activities permit process on the mining sector in Turkey," Resources Policy, Elsevier, vol. 69(C).
    7. António Mateus & Luís Martins, 2021. "Building a mineral-based value chain in Europe: the balance between social acceptance and secure supply," Mineral Economics, Springer;Raw Materials Group (RMG);Luleå University of Technology, vol. 34(2), pages 239-261, July.
    8. Haslam, Paul Alexander, 2021. "The micro-politics of corporate responsibility: How companies shape protest in communities affected by mining," World Development, Elsevier, vol. 139(C).
    9. Leena Suopajärvi & Karin Beland Lindahl & Toni Eerola & Gregory Poelzer, 2023. "Social aspects of business risk in the mineral industry—political, reputational, and local acceptability risks facing mineral exploration and mining," Mineral Economics, Springer;Raw Materials Group (RMG);Luleå University of Technology, vol. 36(2), pages 321-331, June.
    10. Wirth, Herbert & Kulczycka, Joanna & Hausner, Jerzy & Koński, Maciej, 2016. "Corporate Social Responsibility: Communication about social and environmental disclosure by large and small copper mining companies," Resources Policy, Elsevier, vol. 49(C), pages 53-60.
    11. Mercer-Mapstone, Lucy & Rifkin, Will & Louis, Winnifred & Moffat, Kieren, 2019. "Power, participation, and exclusion through dialogue in the extractive industries: Who gets a seat at the table?," Resources Policy, Elsevier, vol. 61(C), pages 190-199.
    12. Frederiksen, Tomas, 2018. "Corporate social responsibility, risk and development in the mining industry," Resources Policy, Elsevier, vol. 59(C), pages 495-505.
    13. Symeou, Pavlos C. & Zyglidopoulos, Stelios & Williamson, Peter, 2018. "Internationalization as a driver of the corporate social performance of extractive industry firms," Journal of World Business, Elsevier, vol. 53(1), pages 27-38.
    14. Fuisz-Kehrbach, Sonja-Katrin, 2015. "A three-dimensional framework to explore corporate sustainability activities in the mining industry: Current status and challenges ahead," Resources Policy, Elsevier, vol. 46(P1), pages 101-115.
    15. Brueckner, Martin & Eabrasu, Marian, 2018. "Pinning down the social license to operate (SLO): The problem of normative complexity," Resources Policy, Elsevier, vol. 59(C), pages 217-226.
    16. Kowalska, Izabela Jonek, 2014. "Risk management in the hard coal mining industry: Social and environmental aspects of collieries’ liquidation," Resources Policy, Elsevier, vol. 41(C), pages 124-134.
    17. Amoako, Kwame Oduro & Lord, Beverley R. & Dixon, Keith, 2021. "Narrative accounting for mining in Ghana: An old defence against a new threat?," Resources Policy, Elsevier, vol. 74(C).
    18. Badera Jarosław, 2014. "Problems of the social non-acceptance of mining projects with particular emphasis on the European Union – a literature review," Environmental & Socio-economic Studies, Sciendo, vol. 2(1), pages 27-34, March.
    19. Abdul–Wadood Moomen & Ashraf Dewan, 2017. "Probing the Perspectives of Stakeholder Engagement and Resistance Against Large‐Scale Surface Mining in Developing Countries," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 24(2), pages 85-95, March.
    20. Tuulentie, Seija & Halseth, Greg & Kietäväinen, Asta & Ryser, Laura & Similä, Jukka, 2019. "Local community participation in mining in Finnish Lapland and Northern British Columbia, Canada – Practical applications of CSR and SLO," Resources Policy, Elsevier, vol. 61(C), pages 99-107.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wly:sustdv:v:31:y:2023:i:1:p:125-137. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://onlinelibrary.wiley.com/journal/10.1002/(ISSN)1099-1719 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.