Corporate Community Engagement Framework on Stakeholder Relations in the Extractive Sector in the Western Cape, South Africa

Abstract

The extractive sector in South Africa has been experiencing severe and injurious turbulence, with a serious knock-on effect for the country’s entire economic performance. Meaningful engagement and healthy stakeholder relationships could be a remedy for this turbulence. Effective management of stakeholder relations brings stability and promotes success and sustainability for the sector. Measures to transform the South African economy continue to be constrained by stakeholder relationship ineffectiveness which undermines the Corporate Community Engagement (CCE) activities of mining companies. This paper posits that the varied perceptions of CCE effectiveness present an opportunity for a modified or new framework to better manage stakeholder relations in this sector. Data were collected through an exploratory sequential mixed method approach; namely, qualitative data using in-depth interviews on (n=16) purposefully selected employees from (n=8) participating CCE companies and quantitative data employing a Lime Survey on (n=384) randomly selected residents where the extractive companies are located. Albeit that the findings revealed mixed and varied respondent perceptions, a high premium is placed on direct community involvement and beneficiation as the cornerstone of a CCE framework and activities. This paper proposes the CCE framework for policymakers to foster stability, and create mutually beneficial co-existence, efficiency and sustainable engagement within the extractive industry.