Does mining company-sponsored community development influence social licence to operate? Evidence from private and state-owned companies in Chile

Martinez, Carla and Franks, Daniel M. (2014) Does mining company-sponsored community development influence social licence to operate? Evidence from private and state-owned companies in Chile. Impact Assessment and Project Appraisal, 32 4: 294-303. doi:10.1080/14615517.2014.929783


Author Martinez, Carla
Franks, Daniel M.
Title Does mining company-sponsored community development influence social licence to operate? Evidence from private and state-owned companies in Chile
Journal name Impact Assessment and Project Appraisal   Check publisher's open access policy
ISSN 1461-5517
1471-5465
Publication date 2014-06-24
Sub-type Article (original research)
DOI 10.1080/14615517.2014.929783
Open Access Status Not Open Access
Volume 32
Issue 4
Start page 294
End page 303
Total pages 10
Place of publication Abingdon, Oxfordshire, United Kingdom
Publisher Taylor & Francis
Language eng
Abstract This research compares corporate-sponsored community development (CD) and social legitimacy at two co-located mining operations in Chile (one private and one state owned) to explore the contribution of CD to social licence to operate. The research identifies that varied approaches to corporate-sponsored CD and its outcomes have the potential to either enhance or undermine social licence to operate, but that the relationship between the mine and community, the presence of negative environmental and social impacts, and social development associated with the core activities of the mining project are more significant factors affecting legitimacy. The research used a methodology that consisted of a review of corporate sustainability reports and corporate policies, and qualitative interviews with community leaders, local government and corporate community relations professionals (n = 38). The research found that the approaches to CD undertaken by the private and the state-owned company differed. Pre-selection of community investment parameters and the absence of participatory spaces were found to limit local community co-ownership of projects and positive attitudes towards the corporation. Our findings indicate that community representatives expect the negative social and environmental impacts of development to be addressed before investing in other areas of development. The presence of social development outcomes from mining projects was found to be a necessary, but insufficient factor in achieving community legitimacy and social licence to operate.
Keyword Community development
Community relations
Extractive industries
Impact assessment
Social licence to operate
Q-Index Code C1
Q-Index Status Confirmed Code
Institutional Status UQ

Document type: Journal Article
Sub-type: Article (original research)
Collections: Centre for Social Responsibility in Mining Publications
Official 2015 Collection
School of Social Science Publications
 
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Citation counts: TR Web of Science Citation Count  Cited 4 times in Thomson Reuters Web of Science Article | Citations
Scopus Citation Count Cited 6 times in Scopus Article | Citations
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Created: Wed, 09 Jul 2014, 22:57:19 EST by Dr Daniel Franks on behalf of Centre for Social Responsibility in Mining