The Sandvik Community Case Study: Exploring the characteristics of corporate-community collaboration with a focus on the South African mining industry

Abstract: The role of multinational corporations has become prominent in society and both high expectations and demands are placed on them to act accordingly. Furthermore, collaboration across sectors has also become increasingly important in order to address societal issues that no actor can solve alone. Relations between corporations and local communities have long been a topic of interest and concern due to their problematic nature. Hence, a Minor Field Study was carried out in South Africa to examine the relations between a Swedish supplier to the mining industry and local mining communities. Within this context, a qualitative case study was conducted with the aim of exploring the role of business in society and the possible value that can arise from corporate-community collaboration. Furthermore, an integrated model that brings forth the key elements of the theoretical frame was created to help understand and analyse the findings. The case study identifies the ways in which corporations and communities interact, as well as the factors that enable and prevent value arising from collaborations within the South African mining industry. The study also shows that the external environment, particularly in a developing country such as South Africa, greatly influences whether or not the environment is conducive to responsible business practices. The sources of value, potentially realized by both corporations and communities, are identified, while application of the integrated model provides managerial implications and best practice for the extraction of said value. Contributing to a wider body of research, this paper offers a number of questions and topics that provide the basis for further study.