Stakeholder trust in the Queensland CSG industry
Nicole Gillespie A , Carol J. Bond A , Victoria Downs A and Jonathan Staggs AUQ Business School
The APPEA Journal 56(1) 239-246 https://doi.org/10.1071/AJ15018
Published: 2016
Abstract
Stakeholder trust is pivotal to the social licence to operate and a source of competitive advantage for firms. While managing trust with stakeholders is recognised as a critical management competency and central to delivering coal seam gas (CSG) strategy, to date there has been little examination of stakeholder trust. This research examined the drivers and levels of trust in the CSG companies and industry from the perspective of core CSG stakeholder groups, and identified what stakeholders perceive to be critical for building and maintaining trust in the CSG industry.
With the support of four major CSG companies and the University of Queensland (UQ) Centre for Coal Seam Gas, in-depth interviews were conducted with 145 participants representing five stakeholder groups: landholders, community members, regional leaders, regulators, and employees. An online survey was subsequently developed and completed by 561 CSG stakeholders.
Analysis of the interview data revealed 11 key drivers of stakeholder trust and distrust. Seven drivers focused on how the CSG companies were perceived to operate in regard to: (1) integrity and transparency, (2) communication and interaction, (3) competence and efficiency, (4) community impact and contribution, (5) coexistence with landholders and the community, and having (6) a shared versus divergent identity, and (7) a positive versus negative comparative reputation. Four drivers focused on the broader CSG industry: (8) environmental concerns, (9) governance and regulation, (10) uncertainty and unpredictability of the industry, and (11) the power differential between CSG companies and stakeholders.
Analysis of the survey data revealed significant differences between stakeholder groups in the level and drivers of trust. On average, CSG employees reported high trust, regulators, community and regional leaders reported moderate trust, and landholders reported low trust. In contrast to a minority of employees, the majority of external stakeholders reported concerns over the environmental impacts of CSG and the effectiveness of governance and regulation, and perceived the industry to be unpredictable and too focused on the short term.
Stakeholder recommendations for enhancing trust and strategies for establishing a more resilient and trustworthy industry reputation are identified. Priority areas include: (1) building trust with landholders, (2) increasing the transparency with which companies share information, plans and regulatory compliance, (3) improving the effectiveness of CSG governance and regulation, and (4) addressing environmental concerns.
Dr Nicole Gillespie is Associate Professor in Management at The University of Queensland’s (UQ) Business School, and International Research Fellow at the Centre for Corporate Reputation at Oxford University. Nicole is an internationally recognised scholar on organisational trust. Presently, her research focuses on building and repairing organisational trust and managing stakeholder trust. Her work has appeared in leading journals including Academy of Management Review, Journal of Management, Journal of Applied Psychology, Sloan Management Review, and Business Ethics Quarterly. She has written commissioned research and case study reports on building and repairing trust for the Institute of Business Ethics in London (sponsored by PwC). Nicole has consulted to, and conducted research in, a range of private and public sector organisations, most recently Santos, Origin Energy, QGC, Arrow, Barclays Bank, UBS Bank, CSIRO, Royal Brisbane and Women’s Hospital, and the Australian Army. She is experienced in teaching MBA and customised executive programs, and is the recipient of five teaching excellence awards. n.gillespie@business.uq.edu.au |
Dr Carol J. Bond is a researcher and lecturer at the UQ Business School and the UQ Sustainable Minerals Institute. The majority of her work uses exemplars from the impacts of mining, UCG and petroleum resource development on communities in Australia and around the world. The industry projects Carol has worked on include contractor management, mine-water usage, mined land rehabilitation, and worker health and safety. Her research interests include: (a) analysing the ethical dimensions of social and environmental impacts of business practices; (b) developing mechanisms and regulations for community participation and engagement on large-scale earth resources projects; and, (c) enhancing corporate social responsibility by applying peacebuilding principles. Carol’s teaching and training background covers business ethics, leadership, sustainable development, human rights and business, and communication management at graduate and undergraduate levels. c.bond@business.uq.edu.au |
Victoria Downs holds a master’s degree in organisational psychology from UQ. She was involved as a researcher in the Stakeholder Trust in CSG project under the supervision of Dr Nicole Gillespie as part of her master’s dissertation. This experience became invaluable in shaping Victoria’s communication and project management skill set, which she has continued to expand in an international setting. Victoria presently works as an Account Manager within the Employee Support Solutions department of Morneau Shepell, a Canadian-based company and the world’s largest provider of employee assistance programs (EAP). Vdowns@shepell.com |
Dr Jonathan Staggs completed his PhD at the UQ Business School and contributed as a postdoctoral researcher on the Stakeholder Trust in CSG project. He presently supports the conduct of high-quality research at the Queensland Emergency Medicine Research Foundation. He also maintains a fractional appointment with the UQ Business School. Jonathan has research expertise in emergency medicine, and coal seam gas, as well as research and innovation policy. He is an experienced academic teacher in innovation, strategy, and management theory. Jonathan’s research and teaching expertise builds on empirical research, corporate work experience, and an MBA completed in 2004. j.staggs@business.uq.edu.au |
