It used to be the case that the value of a gold mine was based on three variables: the amount of gold in the ground, the cost of extraction, and the world price of gold. Today, I can show you two mines identical on these three variables that differ in their valuation by an order of magnitude.
Why? Because one has local support and the other doesn‘t.
In this article, the authors take a valuation approach to ascertaining the impact of stakeholder engagement on the value of mining companies. The authors posit that stakeholder engagement (and lack thereof) can be empirically related to company value. For those of us for whom algebra is a long forgotten art, some of the methodology may be a little esoteric; however, this emphasis also provides strength to the CSR business case, which has often been criticised for focusing on qualitative rather than quantitative data.
H/T to Peter Bruce
Image credit: Uncle Kick-Kick