Broadening the stakeholder base : Rio Tinto's business with communities programme

Developing long term Business with Community partnerships is becoming an increasingly strategic means of realising corporate citizenship, in one form or another. Many companies in Australia, and elsewhere, are rushing into this, often with disastrous results. One company which has been at the forefront of developing such partnerships, in ways to avoid some of the rushed disasters we are seeing right now, is Rio Tinto, with its Business With Communities Programme established for the last six years in Australia. At the heart of this programme is an approach to strategic corporate citizenship which has nothing to do with altruism, philanthropy or corporate generosity to the community. It is a serious exercise, driven by stakeholder dialogue, in building social capital in the communities in which Rio Tinto operates.

CRA/Rio Tinto in the 1990s : a decade of deunionisation

Given the scale of Rio Tinto's battles with the Australialn union movement during the roll out of its deunionisation program throughout its diverse miniing and manufacturing operations, there is much to be learnt from examining how the company first introduced its 'staff' employment system at its Tiwai Point smelter in New Zealand in 1991. Hamersley Iron in 1993, and at its Comalco-run Bell Bay and Weipa operations during 1994-96. More importantly, however, it is worth knowing why the company was so successful in deunionising previously 'soldered on' union territory. Though no doubt assisted by sympathetic legal, political and economic environments, it was ultimately the demonstrationl of managerial strength and determination, coupled with a hesitant union leadership, which led to the success of the company's deunionisation strategy. As the union movemenlt makes tenative steps to attract workers back to the fold, there are valuable lessons to be gained from analysing these momentous events which constitute such a transformational period in the history of Australian industrial relations.