Framework for Stakeholders’ Relations in the Extractive Sector in Selected Mines in Cape Town

Jimmy Makoni () and Darlington Peter Onojaefe ()
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Jimmy Makoni: Central University of Technology
Darlington Peter Onojaefe: Cape Peninsula University of Technology

Acta Universitatis Danubius. OEconomica, 2020, issue 16(2), 214-226

Abstract: The extractive sector in South Africa has been through different stages of transformation exacerbated by slow economic growth, labour unrest, and policy uncertainty recently. It can be assumed that stakeholder relationship management framework can be a tool to engage, network and partner with different stakeholders with common developmental interests that seek to mitigate the transformational impact of the recently experienced policy uncertainty, slow growth and labour unrest. Within the framework of stakeholder relations, the extractive sector would benefit from the identification and management of partners’ interest with a relationship strategy that recognises group dynamics and prevailing social, economic and environmental context consistent with a transforming society that promotes good labour practices for sustained economic growth. Objective: This paper presents a framework to promote harmonisation of stakeholders’ interest within the extractive sector in Cape Town. The harmonised interest would enhance the understanding of group dynamic within the context of differences in stakeholders’ needs - as the nexus between stakeholders’ relations, sustained economic growth, social cohesion and environmental protection. This understanding provides the base to develop and present framework that offers a new approach to relationship management. Prior Work: Previous studies identified significant divergence between mining activities, stakeholders’ relations, and societal interest. Other studies identified benefits of stakeholders in different categories. Approach: Despite the differences of interest, perceived evidence of lack of stakeholder relations effectiveness were collected from 16 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. Results: The paper findings revealed mixed and varied respondents’ perceptions of stakeholder’s relations activities but less effective to harmonise stakeholders’ interest. Implications: This research provides insights to understanding stakeholder relationship management from a threedimensional perspective, namely: context, group dynamics, and implementation. Value: The value of this study was twofold: (1) determining the level of engagement needed for stakeholder relations to be effective and (2) presentation of stakeholders’ relation framework to support and promote extractive sector sustainability.

Keywords: Corporate Community Engagement; Extractive Sector; Context; Group Dynamics; Implementation Strategy (search for similar items in EconPapers)
Date: 2020
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