the practice of stakeholder colonialism-1

8/6/2019 The Practice of Stakeholder Colonialism-1

http://slidepdf.com/reader/full/the-practice-of-stakeholder-colonialism-1 1/13

Romulo D. Tagalo, M.M.

College Instructor

Business Ethics

S.B. Banerjee,, Corporate Social Responsibility,the Good, the Bad and the Ugly, (2007) Ma., USA



� Primary Stakeholders - employees,customers and investors

- salient in the currentpolitical economy

� Secondary Stakeholders - aregroups who are not engage in

direct economic exchange with thebusiness

- general public, communities,activist groups, business supportgroups, and the media



Descriptive Stakeholder Theory: the Firms

Perspective



� Indigenous communities - are adversely affected by corporate activity

- face severe social &environmental problems arising from extractiveindustries in their lands

�The basis of the stakeholder legitimacy is problematic &tends to be framed from the perspective of the businessfirm, which limits understanding of the more complexdynamics of organization stakeholder relationships,

especially if the stakeholder groups have very differentsocial, cultural, political & economic agencies thanindustry.



�R ights of Indigenous Nations recognizes theurgent need to respect & promote the inherentrights & characteristics of the Indigenous Nation

� The social, cultural , economic &environmentalimpacts on the indigenous communities have beendevastating.

�

Traditional relations have broken down, sacredsites been destroyed, communities been displaced& patterns of indigenous life been disrupted.

� Indigenous communities are the receivers of

consultation, that is, that Aboriginal people arefrom time to time talked to about the decisionsarrrived.



� Indigenous participation often means a

dilution of their land rights & a continuationof colonial control.

� Strategies used by mining Companies in Australia:

* Insolate any indigenous group or individual who is a traditional owner and focuscompany efforts in making a deal with them.

* Ignore indigenous land councils whereverpossible



*Discredit advisers used by indigenous

groups and any scientific evidenceproduced by outsiders* Invoke the national interest &economic security * Offer to employ employable

Aborigines.



�There seems to be a public recognition by some

mining companies that interactions withindigenous communities need to change.� This change involves recognizing the rights of indigenous communities as legitimate stakeholder

in the business with whom continuous consultationis needed.� Partners in resource development assumes twothings: first, both parties are relatively equal in

their power and access to resources and, second, allindigenous communities are in favor of mining ontheir lands.



� Economic self-sufficiency and removal of

welfare dependency are the aims of governmentand corporate policies toward indigenouscommunities.

� In some cases, admittedly a minority,indigenous stakeholders have been able to

leverage resources from NGOs and buildinternational networks to promote theircases.



* These public responsibilities are defined andframed by Western principles of legitimacy,

principles that are inimical to indigenousstakeholders in the first place.

�The public-private dichotomy of stakeholder

representation does not legitimize indigenousinterests; instead it serves to regulate indigenous ways of living.

� The decision to mine was motivated by theeconomic gains to the nation and legitimize by promoting indigenous participation indevelopment despite its deleterious effects.



�It would involve examining how knowledge andtheory development in the field constitutessocial relations between different stakeholdersand perhaps even set the ground for a differentset of conditions, which in turn needs to becritiqued.

�The normative justification stakeholder theory masks the instrumental and economicapproaches and, instead of challenging andchanging power and control structures incorporations, stakeholder theory ends upreinforcing existing structures.



* The crises in these examples of

conflict and portrayed as crises of corporate reputation that need to beaddressed rather than the plight of the stakeholders who suffer the mostdamage.



E very operation shall try to understand andinteract positively and constructively withits local communities. We set out to build

enduring relationships with our neighborsthat are characterized by mutual respect,active partnerships, long-termcommitment, to arrive at an understanding

of what we can do for mutual benefit andthen to secure implementation of agreedobjectives.

the practice of stakeholder colonialism-1

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