Power asymmetric relationships between mining firms and community stakeholders : what works and what does not? The case of the South African mining industry

Abstract

The study presents observations and analyses of, and conclusions about, how relationships between mining firms and their stakeholders’ function under conditions of power asymmetry. Power is an important dimension of stakeholder relationships yet remains understudied in the literature; power asymmetry is inherent in relationships, including stakeholder relationships. However, if asymmetry is not effectively addressed, it can engender conflicts or schisms, with stakeholders experiencing unfair and inequitable assessment and promotion of their interests by mining firms. Addressing this demands that both parties engage with each other in ways that promote joint interests and proactively address power asymmetry. One strategy is to develop specific mechanisms and frameworks to promote these joint interests. This study presents a perspective on how stakeholder relationships currently work in the mining industry in South Africa, where power asymmetry is prevalent, and how they can work better. The findings derive from three case studies, with data assembled through interviews with both stakeholders and mining firms. Based on this, the study proposes a novel engagement framework within which the relationship can function optimally, and which stakeholders can apply to assert and leverage their power during engagements. The research thus contributes to theorising an understudied area and proposes an innovative engagement framework for handling power asymmetry to benefit both stakeholders and mining houses.