A social licence to operate: corporate social responsibility, local communities and the constitution of global production networks

Abstract

This article contributes to the theorization of the role of informal regulation (undertaken by leading firms) in the ongoing organization of global production networks. It does so through a qualitative case study of BHP Billiton's Ravensthorpe Nickel Operation (RNO) in the rural Shire of Ravensthorpe in Western Australia. This less tangible, and to date under-researched, dimension of global production networks is foregrounded through a focus on the corporate social responsibility strategy implemented by RNO in the service of achieving and/or demonstrating a broader 'social licence to operate'. This 'licence' functions -beyond the corporation -as a legitimated and legitimating multi-scalar mechanism through which to gain and maintain access to mineral resources and thus to establish viable and ongoing global production networks. Further, this informal regulation is shown to shape social relations and qualities of place conducive to competitive global mineral extraction and to facilitate the positioning of local communities and places in mineral global production networks.

The Role of Institutional Uncertainty for Social Sustainability of Companies and Supply Chains

“…The evident wealth of minerals in EMDE and the prominent role of the extractive industry in terms of country development can be evidenced in many regions (Sauer and Seuring 2019;Mayes 2015;Giurco and Cooper 2012). This case study is an example of the extractive industry's relatively good governance that contrasts the currently predominant research focuses on failed states and institutional voids (Hofmann et al 2018;Huq and Stevenson 2018;Jain et al 2017;Silvestre 2015).…”

“…We chose the mining sector as a fruitful example for this investigation because mineral commodities represent the original material of manufacturing processes around the globe. At the same time, the mineral sector's and related SCs' social licenses to operate are at stake due to a perceived imbalance among unsustainability and the achieved development at the mine sites (Hofmann et al 2018;Mayes 2015). Economic development is all too often accompanied by social tensions due to enclave building, low working standards and workers' living standards (Silvestre 2015;Lodhia and Hess 2014;Rajak 2012).…”

“…Mineral extraction and trade can be key pillars for community welfare through social upliftment (Huq et al 2016;Mayes 2015), but this positive impact is dependent upon the presence of strong institutions and their enforcement (Giurco and Cooper 2012;Solomon 2011). This holds especially true for mineral SCs, which often encompass multiple supplier tiers in numerous countries and contexts (Sauer and Seuring 2019;Young 2015).…”

Perception of pollution and arsenic in hair of indigenous living near a ferronickel open-pit mine (Córdoba, Colombia): Public health case report

“…As a public health measure, unpolluted potable water needs to be immediately supplied to the population, and an aqueduct needs to be built to ensure the treatment and supply of water having excellent quality. This is undoubtedly within the scope of the actions that can be taken by the multinational that manages the mine, in addition to others that have been implemented in other regions of the world 27 . The national health authorities were duly informed of this situation.…”

Social License to Operate and Adaptive Co-Marketing: Exchange, Social Capital and Community-Based Social Marketing

“…Numerous studies recognize that SLO should reflect a company's best practices but then do not go into any depth of what those practices are or should be [17][18][19][20][21]. This article argues that a social marketing perspective has potential to shed considerable light on SLO and, in particular the role of exchange and social capital in affecting relations between companies and different communities of interest.…”