A New Methodology for Managing Effective External Stakeholder Relationships
23 Pages Posted: 24 Jul 2006
Date Written: February 2007
A critical concern of any mining company today is its relationship with the different stakeholder groups impacted by the operational activity - communities, unions, vendors, local partners and competitors, local and federal governments, interest groups and non-government organisations. What ten years ago would have gone unnoticed, now, and even more so in the future, can drastically impact the profitability and even existence of a mining operation.
This paper describes the development and delivery of a new paradigm for creating effective external stakeholder relationships. We report on the actual measurable results of an integrated and highly complex initiative lead by Lonmin Plc. (Lonmin) and Landmark Education Business Development (LEBD) that significantly altered the nature of the relationship with the stakeholders.
Given the nature of the long-term investment required in a mining operation, any breakdowns or surprises in its relationship with external stakeholders brings with it the potential for major loss.
The transformation of executive and senior management and community leadership was required to enable them to be effective in managing this complex set of circumstances.
JEL Classification: L00, F00
Suggested Citation: Suggested Citation