Responsible business under adverse conditions: Dilemmas regarding company contributions to local development

• Published in: Business strategy & development 2018-03, Vol.1 (1), p.8-16
• Main Authors: Kolk, Ans, Lenfant, François
• Format: Article
• Language: English
• Subjects: communities; inclusive development; institutional voids; stakeholders; sustainable development; transparency
• ISSN: 2572-3170; 2572-3170
• DOI: 10.1002/bsd2.5

While literature on companies’ contributions to local development exists, little is known about the specific dilemmas encountered on the ground when operating under adverse conditions, and how transparency can be improved. Companies typically need to navigate through a complex web of relationships with local stakeholders and deal with large expectations from communities. This article sheds light on these topics, using gold mining in Mali as a case illustrative for other difficult settings in developing countries. We find that many companies show transparency in reporting on development projects funded, local employees hired, taxes paid and local purchases. Concurrently, what companies do seems less important than how they do it, and with whom. The article offers practical and theoretical insights into how (international) companies can derive value from fine‐tuning their contribution to development and adjusting their reporting, and also contributes to current debates about inclusiveness in the context of the United Nations Sustainable Development Goals.