Turtle Talk

From the Proceedings of the National Academy of Sciences.

Here (pdf):

In this report we investigate company–community conflict and its role in the regulation of sustainability performance in the extractive industries. We estimate the cost of conflict to com- panies and identify conflict as an important means through which environmental and social risks are translated into business costs and decision-making. The paper clarifies the relationship between the environmental and social risk experienced—and interpreted—by local communities, and the business risks experienced—and interpreted—by corporations. Findings reveal that, at least for the case of the extractive industries, these two types of risk can co-constitute each other. The central importance of corporate strategy and behavior for sustainability science is highlighted.

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Timing in the Project Cycle. When conflict occurs within the project cycle it has a significant influence on how companies respond to it. Conflict early in the cycle is more likely to lead companies to withdraw from an investment (which may imply reduced social and environmental impact, or may also mean the transfer of impacts to another location) and to consider fundamental re- design of the project. When conflict occurs later in the project cycle, companies are more likely to adapt the design or add on social responsibility activities, the latter of which provides impact compensation rather than impact reduction.