Framework for Stakeholder Relations in the Extractive Sector in the Western Cape


  • Jimmy Makoni
  • Darlington Peter Onojaefe


Corporate Community Engagement; Extractive Sector; Context; Group Dynamics; Implementation Strategy


South Africa’s mining sector has been going through a rough spell in recent years. A framework to support stakeholder relations engagement initiatives and approaches have become an imperative. Undoubtedly, effective management of stakeholder relations promotes the success and sustainability of the extractive industry. Measures to transform the South African economy and the mining sector in particular, are constrained by stakeholder relationship ineffectiveness which undermines stakeholder activities of mining companies. This paper sought to develop a framework for stakeholder relations in the extractive industry. It is hoped that recent adversarial relations would benefit from a framework that offers a new approach to relationship management. Previous studies identified that there is significant divergence between mining activities in general and community development in particular. The studies further identified that the real benefits of stakeholder relations may not be easily expressed in a from a single lens view if desired benefits are to be achieved. Evidence of perceived ineffective stakeholder relations were collected from sixteen employees selected using purposive sampling from eight participating companies in Cape Town. A sequential mixed methods approach was adopted. This approach entailed collecting qualitative data using in-depth interviews on the 16 employees and quantitative data from 384 respondents using online LimeSurvey. The paper findings revealed mixed and varied respondents’ perceptions of stakeholder’s engagement initiatives. This research provides insights to understanding stakeholder relationship management from a three dimensional perspective, namely: context, group dynamics, and implementation. The value of this study was twofold. First, it was able to determine the level of engagement needed to enhance stakeholder relations. Second, it managed to a present an engagement framework that is hoped to enhance stakeholder relations in South Africa’s extractive industry.


Alonso, G. (2014). Barrick gold and CSR. Dynamics of Canadian extractive capitalism in Peru.
Andriof, J.; Waddock, S.; Husted, B. & Rahman, S. S. (2017). Unfolding stakeholder thinking: theory, responsibility and engagement. Routledge.
Bansal, P. & Song, H. C. (2017). Similar but not the same: Differentiating corporate sustainability from corporate responsibility. Academy of Management Annals, 11(1), pp.105-149.
Bell, E.; Bryman, A. & Harley, B. (2018). Business research methods. Oxford university press.
Bendell, J. (2017). Terms for endearment: Business, NGOs and sustainable development. Routledge.
Botha, N. (2017). Stakeholders blast Mining Charter as underhanded, 19 JUN 2017,
Bryson, J. M. (2018). Strategic planning for public and nonprofit organizations: A guide to strengthening and sustaining organizational achievement. John Wiley & Sons.
Carroll, A. & Buchholtz, A. (2014). Business and society: Ethics, sustainability, and stakeholder management. Nelson Education.
Carroll, A. B. (1979). A three-dimensional conceptual model of corporate performance. Academy of
management review, 4(4), pp. 497-505.
Carroll, A. B. (1991). The pyramid of corporate social responsibility: Toward the moral management of organizational stakeholders. Business horizons, 34(4), pp. 39-49.
Carroll, A. B. & Buchholtz, A. K. (2015). Corporate citizenship: social responsibility, responsiveness, and performance. Classics of Organization Theory, pp. 439.
Charles Jr, O. H.; Schmidheiny, S. & Watts, P. (2017). Walking the talk: The business case for sustainable development. Routledge.
Coolican, H. (2017). Research methods and statistics in psychology. Psychology Press.
Cooper, S. (2017). Corporate social performance: A stakeholder approach. Routledge.
Crane, A. & Matten, D. (2016). Business ethics: Managing corporate citizenship and sustainability in the age of globalization. Oxford University Press.
Creswell, J. W. & Clark, V. L. P. (2017). Designing and conducting mixed methods research. Sage publications.
Dutot, V.; Lacalle Galvez, E. & Versailles, D. W. (2016). CSR communications strategies through social media and influence on e-reputation: An exploratory study. Management Decision, 54(2),
Epstein, M. J. (2018). Making sustainability work: Best practices in managing and measuring corporate social, environmental and economic impacts. Routledge.
Forsyth, D. R. (2018). Group dynamics. Cengage Learning.
Freeman, R. E. & Reed, D. L. (1983). Stockholders and stakeholders: A new perspective on corporate governance. California management review, 25(3), pp. 88-106.
Frynas, J. G. & Stephens, S. (2015). Political corporate social responsibility: Reviewing theories and setting new agendas. International Journal of Management Reviews, 17(4), pp.483-509.
Grant, R. M. (2016). Contemporary strategy analysis: Text and cases edition. John Wiley & Sons.
Grayson, D. & Hodges, A. (2017). Corporate social opportunity: Seven steps to make corporate social responsibility work for your business. Routledge.
Grayson, D. & Jane, N. (2017). Corporate responsibility coalitions: The past, present, and future of alliances for sustainable capitalism. Routledge.
Groenewald, Y. (2017). Chamber to challenge new mining charter in court 15/06/2017.
Harrison, J. S.; Freeman, R. E. & Abreu, M. C. S. D. (2015). Stakeholder theory as an ethical approach to effective management: Applying the theory to multiple contexts. Revistabrasileira de gestão de negócios, 17(55), pp. 858-869.
Hopkins, M. (2016). The planetary bargain: corporate social responsibility comes of age. Springer.
Joseph, C.; Gunawan, J.; Sawani, Y.; Rahmat, M.; Noyem, J. A. & Darus, F. (2016). A comparative study of anti-corruption practice disclosure among Malaysian and Indonesian Corporate Social
Responsibility (CSR) best practice companies. Journal of Cleaner Production, 112, pp. 2896-2906.
Koep, L. (2017). Investigating industry expert discourses on aspirational CSR communication. Corporate Communications: An International Journal, 22(2), pp. 220-238.
Lindlof, T. R. & Taylor, B. C. (2017). Qualitative communication research methods. Sage publications.
Mathende, T. L. & Nhapi, T. G. (2017). Determinants and Experiences of Corporate Social
Responsibility Practices in Zimbabwean Extractive Industries from 2000-2015. Business and Society, 17(1): pp. 143-161.
Mathews, C. (2017) Digging Into Trouble Analysis: Zwane’s mining charter lunacy. 22 June 2017
Mazutis, D. D. & Slawinski, N. (2015). Reconnecting business and society: Perceptions of authenticity in corporate social responsibility. Journal of Business Ethics, 131(1), pp. 137-150.
McKay, D. (2017). Mining Charter 3 may not see light of day in 2017 May 12. 2017
McLennan, C. L. J.; Becken, S. & Moyle, B. D. (2017). Framing in a contested space: Media reporting on tourism and mining in Australia. Current Issues in Tourism, 20(9), pp. 960-980.
Nuer, A. T. K. (2015). Exit strategies for social venture entrepreneurs. Wageningen University.
Payne, S. L. & Calton, J. M. (2017). Towards a managerial practice of stakeholder engagement:
Developing multi-stakeholder learning dialogues. Unfolding stakeholder thinking, pp. 121-135. Routledge.
Pigato, M. & Tang, W. (2015). China and Africa: Expanding economic ties in an evolving global context ,Vol. 2. Washington DC: World Bank.
Scherer, A. G.; Rasche, A.; Palazzo, G. & Spicer, A. (2016). Managing for political corporate social responsibility: New challenges and directions for PCSR 2.0. Journal of Management Studies, 53(3), pp. 273-298.
Schwartz, M. S. (2017). Corporate social responsibility. Routledge.
Sekaran, U. & Bougie, R. (2016). Research methods for business: A skill building approach. John Wiley & Sons.
Shabana, K. M.; Buchholtz, A. K. & Carroll, A. B. (2017). The institutionalization of corporate social
responsibility reporting. Business & Society, 56(8), pp.1107-1135.
Spiegel, S.; Keane, S.; Metcalf, S. & Veiga, M. (2015). Implications of the Minamata Convention on Mercury for informal gold mining in Sub-Saharan Africa: from global policy debates to grassroots implementation? Environment, development and sustainability, 17(4), pp. 765-785.
Swami, V. & Bankar, S. (2016). A Study on Impact of CSR Practices Adopted by Water Purifier Manufacturers for Building their Brands in Pune City. International Journal of Engineering and
Management Research (IJEMR), 6(2), pp. 385-393.
Thibaut, J.W. (2017). The social psychology of groups. Routledge.
Tiller, E. (2017).108 (105-120) Mining and Human Rights’ in O’Callaghan &Graetz. Mining in the
Asia-Pacific: Risks. Challenges and Opportunities. Geordan Graetz. Springer International Publishing
AG 2017. T. O’Callaghan, G. Graetz (eds.)
Venkatesh, V.; Brown, S. A. & Sullivan, Y. W. (2016). Guidelines for conducting mixed-methods research: An extension and illustration. Journal of the Association for Information Systems, 17(7), p. 435.
Warner, M. & Sullivan, R. (2017). Putting partnerships to work: Strategic alliances for development between government, the private sector and civil society. Routledge.
Wood, D. J. (1991). Social issues in management: Theory and research in corporate social performance. Journal of Management, 17(2), pp. 383-406.
Yakovleva, N. (2017). Corporate social responsibility in the mining industries. Routledge.
Zandvliet, L. & Anderson, M. (2017). Getting it right: making corporate-community relations work. Routledge.