TY - JOUR
T1 - Community Risk Management by Mining MNEs
T2 - Managing Local Communities in Armenian Mining
AU - Taarup-Esbensen, Jacob
AU - Movsisyan, Suren
PY - 2019
Y1 - 2019
N2 - Using field work from the Armenian mining sector, we explore how MNEs practice community risk management. We start by conceptualising communities as communities of place (CofP), directly impacted by mining activities but have few resources, and communities of interest (CofI), as outsiders with an interest in mining projects and the resources to create uncertainty about the mine. We argue that community risk is a precursor to financial, political and cultural risks and that both CofP and CofI can expose the mining MNE to risks, either individually or in unison. We find that mining MNEs focus on mitigating community risks in the initial phases of the mine project, when the impact on the CofP is perceived to be lowest. Our interpretation is that the objective of the risk management practice is to commit resources to CofP for as long as there is a possibility that they will form partnerships with CofI.
AB - Using field work from the Armenian mining sector, we explore how MNEs practice community risk management. We start by conceptualising communities as communities of place (CofP), directly impacted by mining activities but have few resources, and communities of interest (CofI), as outsiders with an interest in mining projects and the resources to create uncertainty about the mine. We argue that community risk is a precursor to financial, political and cultural risks and that both CofP and CofI can expose the mining MNE to risks, either individually or in unison. We find that mining MNEs focus on mitigating community risks in the initial phases of the mine project, when the impact on the CofP is perceived to be lowest. Our interpretation is that the objective of the risk management practice is to commit resources to CofP for as long as there is a possibility that they will form partnerships with CofI.
KW - Community risk
KW - Mining MNE
KW - Armenia
KW - Liability of outsidership
KW - Communities of place
KW - CofP; Communities of interest
KW - CofI
KW - Community risk
KW - Mining MNE
KW - Risk management
KW - Armenia
KW - Liability of outsidership
KW - Communities of place
KW - CofP
KW - Communities of interest
KW - CofI
U2 - 10.1504/IJBG.2019.10022554
DO - 10.1504/IJBG.2019.10022554
M3 - Journal article
SN - 1753-3627
VL - 23
SP - 120
EP - 138
JO - International Journal of Business and Globalisation
JF - International Journal of Business and Globalisation
IS - 1
ER -