138
Friedman’s work (1970) has been one of the most significant. It also undermined the
idea of social cohesion since they were fueled by corporate self-interest (Stilwell,
2006). Freidman’s work (1970) emphasizes the role of corporate governance to
increase shareholders’ investment returns but neglects the responsibility to develop
better relationships and collaboration between corporations and external stakeholders (Franco 2014). Friedman’s contributions therefore undermined the idea of social
cohesion since they were fueled by corporate self-interest (Stilwell 2006). The reaction against this neoliberal economic agenda led to local-level transformations that
encouraged private and public corporations to develop better relationships with
their stakeholders and look after their well-being (Beck 2007). However, with the
arrival of Japanese, Chinese, Canadian, and other international corporations in
Bolivia in the past years, Friedman’s neoliberal argument is becoming the norm.
Along with the proliferation of neoliberal policies driven in part by globalization,
the need to make mining actors more responsive to their external stakeholders and
establish collaborative relationships with them increased. In developing resource
economies, these responsibilities have increased not only for large multinationals
but also for small-scale miners who very often belong to disadvantaged
communities.
These governance shifts allowed miners, and the communities they belong to, to
become more active rather than remaining passive actors and foster closer relationships between the community and other stakeholders like governments, NGOs, and
the private sector. NGOs were involved in governance shifts which not only
increased NGOs’ responsibilities at the global and the local level in terms of public
service provision for community sustainability but also in terms of assistance to
governments to govern natural resources and to demand corporate accountability
(Bell and Hindmoor 2009; Edwards et al. 1999).
Influenced by NGOs, small-scale miners in Bolivia have embraced emerging
governance shifts through increased accountability. They have proactively initiated
collaboration processes with external stakeholders to propose a sustainable SSM
framework relevant for all. However, in informal conversations with miners, they
perceive they still remain in a critical position. They are not only accountable for
aligning with national and international governance precepts but are also pressured
to account for the well-being of their families who in most cases belong to disadvantaged communities. Miners instinctively follow global governance mandates on
social accountability. However, there is a limited understanding of the potential of
SSM and the opportunities this sector could bring for all stakeholders involved.
In the literature, scholars in the business ethics domain embraced recent governance changes and challenged neoclassical theories that neglected the role of external stakeholders in governance scenarios (Clarkson 1995; Freeman 1984; Gibson
2000; Tracey et al. 2005). One of the major representatives of this governance
approach was Freeman (1984) and his work on stakeholder theory. This theory
made room for new approaches like stakeholder collaboration and corporate social
responsibility. Freeman’s work posits the notion that corporations have social obligations and therefore need to engage with external stakeholders. In the mining sector, this idea has been recently corroborated by scholars who agree that companies
I. B. Franco et al.
Friedman’s work (1970) has been one of the most significant. It also undermined the
idea of social cohesion since they were fueled by corporate self-interest (Stilwell,
2006). Freidman’s work (1970) emphasizes the role of corporate governance to
increase shareholders’ investment returns but neglects the responsibility to develop
better relationships and collaboration between corporations and external stakeholders (Franco 2014). Friedman’s contributions therefore undermined the idea of social
cohesion since they were fueled by corporate self-interest (Stilwell 2006). The reaction against this neoliberal economic agenda led to local-level transformations that
encouraged private and public corporations to develop better relationships with
their stakeholders and look after their well-being (Beck 2007). However, with the
arrival of Japanese, Chinese, Canadian, and other international corporations in
Bolivia in the past years, Friedman’s neoliberal argument is becoming the norm.
Along with the proliferation of neoliberal policies driven in part by globalization,
the need to make mining actors more responsive to their external stakeholders and
establish collaborative relationships with them increased. In developing resource
economies, these responsibilities have increased not only for large multinationals
but also for small-scale miners who very often belong to disadvantaged
communities.
These governance shifts allowed miners, and the communities they belong to, to
become more active rather than remaining passive actors and foster closer relationships between the community and other stakeholders like governments, NGOs, and
the private sector. NGOs were involved in governance shifts which not only
increased NGOs’ responsibilities at the global and the local level in terms of public
service provision for community sustainability but also in terms of assistance to
governments to govern natural resources and to demand corporate accountability
(Bell and Hindmoor 2009; Edwards et al. 1999).
Influenced by NGOs, small-scale miners in Bolivia have embraced emerging
governance shifts through increased accountability. They have proactively initiated
collaboration processes with external stakeholders to propose a sustainable SSM
framework relevant for all. However, in informal conversations with miners, they
perceive they still remain in a critical position. They are not only accountable for
aligning with national and international governance precepts but are also pressured
to account for the well-being of their families who in most cases belong to disadvantaged communities. Miners instinctively follow global governance mandates on
social accountability. However, there is a limited understanding of the potential of
SSM and the opportunities this sector could bring for all stakeholders involved.
In the literature, scholars in the business ethics domain embraced recent governance changes and challenged neoclassical theories that neglected the role of external stakeholders in governance scenarios (Clarkson 1995; Freeman 1984; Gibson
2000; Tracey et al. 2005). One of the major representatives of this governance
approach was Freeman (1984) and his work on stakeholder theory. This theory
made room for new approaches like stakeholder collaboration and corporate social
responsibility. Freeman’s work posits the notion that corporations have social obligations and therefore need to engage with external stakeholders. In the mining sector, this idea has been recently corroborated by scholars who agree that companies
I. B. Franco et al.