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How can business owners and community regulate the relationship between them (Australia)

Sometimes, companies operate in the proximity of communities or on land that is property of a community. Activities can cause nuisance and sometimes threaten safety and health.



What challenges does it focus on?

Establishing a way to regulate the relationship between business and community in Australia.

Short summary

Companies often have activities on the property of a community (for example, mining and extraction, industrial or manufacturing activities), like

  • constructions activities, for example of a highway or a business centre;
  • construction and maintaining of a factory or power plant;
  • research or exploratory works, etc.

This can affect the interests of people from local communities, or affect the environment. For example, noise, dust, industrial waste and change of surroundings may disturb people. Or it endangers their health and safety, lowers the price of their land.

It helps if there is a general agreement between the business and local communities. That regulates activities and defines what procedures are followed in case of any dispute.

In Australia in cases of procurement contracts, councils of local governments (as intermediaries between business and community) promote the economic and social wellbeing of their communities. For that purposes they sign a contract with business entity willing to work in the community. 

view full explanation

The contract between the local council and the business may provide different kinds of social procurement, such as:

  • employing local workers;
  • employing economically disadvantaged & socially marginalised constituents;
  • using local sub-contractors;
  • sponsoring or supporting community groups or sporting teams;
  • using local suppliers for materials; and
  • showing a commitment to corporate social responsibility (for example, treating employees fairly and respectfully).

Research evidence

The rule is mentioned on this website.

Related best practices

Best practices