Managing community relationships, reputation and sustaining competitive advantage : The case of mining towns

An important issue currently facing the mining industry in Australia is the management and cost to the industry and other stakeholders of entry into and exit from towns and their communities. These costs can be environmental, social, economic, political or reputational. The ability of companies to engage the trust of communities, governments and investors is critical, and corporate reputation plays a significant role in this. For the industry to secure a long-term and sustainable future, it must have the technical, business and reputation assets to proceed in a cost-effective, environmentally acceptable and socially supportive way. The paper introduces the concepts of sustainability both at the corporate level and the regional town and community level. For the companies, there are important impacts on costs and efficiencies, an organisations ?license to operate?, shareholder value and the trade off between dealing with environmental and social issues through prevention or retrofit and corrective measures. However, for the mining industry, possibly the most important aspect of this study is the ability of companies to get access to new sites at competitive cost. For mining companies sustainability has moved from mineral and environmental resources, to a greater emphasis on economic sustainability and community capacity building.