ABSTRACT
This chapter explores the costs of social issues, with a focus on the opportunities for cost savings or financial benefits that can be realised through partnership approaches to managing the issues. Specific reference is made to the measurement, from a business perspective, of the costs and benefits of partnering. There is increasing evidence to suggest that corporate social responsibility initiatives can minimise the negative impacts and risks of social issues. Partnerships involving working alongside government, civil society and local communities are seen as, potentially, an effective and efficient strategy to address complex social issues together with local environmental problems. Local community opposition can cause costly delays in production, permits being challenged, increased inspection by officials, interruption to the smooth running of the project and even termination of production. Local staff dissatisfaction, as a result of social concerns, can lead to antagonism, strikes and even rioting, which in turn can lead to productivity losses and human resource management problems.
