Developing community based models of Corporate Social Responsibility

Abstract

In this article, grounded theory was used to develop models of Corporate Social Responsibility (CSR) that can generate benefits for communities impacted by the Australian resource sector. Interviews were conducted with community representatives who interacted with a range of resource companies located in three Australian jurisdictions. Separate conceptual models were developed for Indigenous communities with legislated land rights as opposed to local communities nearby resource development. This was because they had different priorities in terms of model elements. Indigenous people sought to maintain cultural and environmental values through CSR whilst accepting a need for some social change. These values were expressed in cases where legislative frameworks enabled their protection and sufficient resources were available, such as financial capital, policy commitments and stakeholder support. Local communities were seeking to maintain their viability and to ensure companies were accountable for their impacts. CSR in this context relied on company policy and the formation of voluntary partnerships which differed according to the organisation’s culture. In this paper, it is argued that participatory CSR provided a mechanism to express community values linking it to perceptions of empowerment and capacity to provide long-term value to communities. The study also helps identify where improvements can be made to the Australian resource sector.