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The Political Economy of Corporate Social Responsibility in the Resource Sector in Western Australia. A Case Study of the Proposed James Price Point LNG Precinct

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Resource Curse or Cure ?

Part of the book series: CSR, Sustainability, Ethics & Governance ((CSEG))

Abstract

Over the last few years, there has been increased emphasis placed on the “right way” of doing business involving transparent and ethical interactions with communities of interest. The global resource industry is regarded as the one of the primary champions and leaders of this corporate social responsibility (CSR) movement. Increasingly, however, its credibility within the industry is being challenged by the existence of conflict and confrontation and accusations of company misdemeanours that can surround resource development projects globally. For Western Australia’s resource sector, the liquefied natural gas precinct recently proposed at James Price Point in the Kimberley is a prime example. The aim of this chapter is to take a critical assessment of the relations and practices that define interactions between industry, government and community spheres, as a way to make sense of the conflict that surrounds this project. The analysis is informed by theories of governmentality and spatiality, which captures the ‘spaces of CSR’ framework discussed in this chapter. The argument is presented that resource development projects in Western Australia are shaped and defined by a series of historical, political, institutional, economic and social forces, prevailing values and assumptions and also relations of power. This is shown to play out in the contest surrounding the LNG precinct. As a consequence, the practice of CSR in the resource industry is shown to be more complex, problematic and dynamic than is suggested within broader CSR scholarship.

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Notes

  1. 1.

    By the end of April, Woodside had further announced a shareholder dividend (totalling approximately A$500 million) as a result of this decision; they had also agreed to limited compensation payment to Native Title holders of about A$18 million, pointing out that the full package was contingent on the project going ahead. The state government, for its part, is still considering compulsory acquisition of the land from Native Title holders under the terms of the agreement (about A$30 million).

  2. 2.

    To illustrate their determination: the Environmental Protection Authority’s (EPA) recommended approval of the project in 2012 was endorsed in spite of the withdrawal of all but one EPA member from deliberations due to conflicts of interest. After the first Notices of Intention to Take were overturned by the Supreme Court in 2011 and a subsequent resolution by the Goolarabooloo claimants to withdraw from the GJJ and lodge their own claim—a direct result of internal conflict over the JPP precinct—new notices for compulsory acquisition were quickly issued, partly in order to validate the earlier agreement.

  3. 3.

    Interview with Broome resident as a part of Wesley’s doctoral research in 2011.

  4. 4.

    For instance, Dr Anne Poelina, a traditional owner in the Kimberley, has argued that “Traditional Owners throughout the Kimberley have been building a sustainable local economy around culture and conservation industries” (Hyman 2010).

  5. 5.

    These articles show that over the years a significant number of studies and inquiries have highlighted continuing social problems in Aboriginal communities despite government-led programs to intervene. An internal report commissioned by former Prime Minister Kevin Rudd indicated that the $3.5 billion a year that have been devoted to 232 programs to support Aboriginal people had not been effective (Wright 2011).

  6. 6.

    Consideration of ‘social surroundings’ under the Environmental Protection Act is limited by precedent to impacts directly associated with physical/biological environment.

  7. 7.

    Interview with a Western Australian senior public servant for Wesley’s doctoral research in 2011.

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Authors and Affiliations

  1. Curtin Business School, Curtin University, Bentley, WA, Australia

    Anthea Wesley

  2. School of Built Environment, Curtin University, Bentley, WA, Australia

    Diana MacCallum

Authors
  1. Anthea Wesley
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  2. Diana MacCallum
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Correspondence to Diana MacCallum .

Editor information

Editors and Affiliations

  1. Institute for Social Sustainability, Murdoch University, Perth, West Australia, Australia

    Martin Brueckner

  2. Faculty of Health Sciences, Curtin University, Perth, West Australia, Australia

    Angela Durey

  3. John Curtin Inst. of Public Policy, Curtin University, Perth, West Australia, Australia

    Robyn Mayes

  4. Curtin Business School, Curtin University, Perth, West Australia, Australia

    Christof Pforr

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Wesley, A., MacCallum, D. (2014). The Political Economy of Corporate Social Responsibility in the Resource Sector in Western Australia. A Case Study of the Proposed James Price Point LNG Precinct. In: Brueckner, M., Durey, A., Mayes, R., Pforr, C. (eds) Resource Curse or Cure ?. CSR, Sustainability, Ethics & Governance. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642-53873-5_4

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