The following statements are extracts from the websites of the mining company, BHP Billiton:

Community

Our position

We play an important role in developing economies and improving standards of living. As part of making a valuable contribution as community partners, we seek meaningful long-term relationships that respect local cultures and create lasting benefits. Where possible, we employ local people, purchase local goods and services and support broader regional and national economies by paying taxes and royalties.

Through a collaborative approach, we work with communities to identify social needs and existing resources through which we can build our social investment. We then partner with appropriate organisations to deliver community projects, using a strong and consistent process to monitor progress and performance.

Our priorities

• Indigenous Peoples
• Human Rights
• Social Investment
• Stakeholder Engagement
• Our approach to actively supporting communities

Understanding communities

• Defining host community boundaries
• Identifying stakeholders
• Conducting social baseline studies
• Assessing social impacts and opportunities
• Understanding the local human rights context and associated impacts
• Working with local people to identify and secure Indigenous cultural heritage

Comprehensive planning

• Stakeholder Engagement Management Plan
• Human Rights Management Plan
• Complaints and grievance mechanisms
• Social Investment Framework
• Community Development Management Plan
• Local Procurement Plan

Source: https://www.bhp.com/community/our-approach

Required

Explain the strategic approach of BHP Billiton with regards to its management of relationships with its communities from the perspective of: (a) legitimacy theory; and

(b) stakeholder theory. (10 marks)