Assistant Professor Dr. Aurangzeb Zulfiqar Khan Department of Management Sciences, COMSATS Institute...

Assistant Professor Dr. Aurangzeb Zulfiqar KhanDepartment of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan 1

What Makes Project Stakeholders Supportive and Adversarial?


Many projects, particularly of

the infrastructure type, re-

quire large substantial

amounts of labour. In poorer

communities where job

opportunities are scarce,

unemployment usually high

and the regional economy is

structurally weak, projects

may be the only source of

income for large numbers of

local people.

Why are Project Stakeholders Supportive?(Economic Considerations)


Projects do not require

human resources only – they

also often require material

resource inputs in the form of

raw materials and semi-

finished products as well as

services to be provided on-

site. Projects can hence

boost local businesses, gene-

rating a stream of income

extending over a part or

whole of the project duration.

Why are Project Stakeholders Supportive?(Economic Considerations)


Some projects have a long

lasting impact on the com-

munities in which they are

undertaken – and, for

projects which are

considered highly desirable

such as theme parks, the

locationing of offices of major

corpora-tions and large

shopping malls, this may

reflect in an increase in

property value over time.

Why are Project Stakeholders Supportive?(Financial Considerations)


Some projects may have a

long-term desirable impact in

terms of the volume of in-

vestment which they attract

to (and generate within) the

community after their com-

pletion. For example, a pro-

ject to set up a vocational

training institute in a town

may prompt prompt small

and medium-sized busines-

ses to settle there.

Why are Project Stakeholders Supportive?(Financial Considerations)


Tourism is big business – and

tourists like to flock to places

which offer opportunities for

fun, sightseeing and recrea-

tion, and which may be uni-

que in some sense.

Tourism is the prime source

of earning for many destina-

tions and projects which can

„facilitate“ it often generate

widespread support.

Why are Project Stakeholders Supportive?(Business from Tourism)


There are many projects

which, on completion, can

offer stakeholders access to

an improved standard of

living in terms of access to a

larger and better range of

goods and services.

Projects which fall under this

category include shopping

malls, commercial plazas,

cinemas and entertainment

halls.

Why are Project Stakeholders Supportive?(Standard of Living)


Many projects generate

support among stakeholders

simply because they are con-

sidered important for the de-

velopment of the local com-

munity in which they are

undertaken or for the wider

community at large. An

example is the Beijing Olym-

pic Games 2008 which gene-

rated tremendous support

among the Chinese people.

Why are Project Stakeholders Supportive?(Acknowledgement)


People oppose projects be-

cause they fear possible con-

fiscation of property and

eviction from ancestral villa-

ges, townships and settle-

ments, and forcible

relocation or resettlement in

unfamiliar places which offer

relatively fewer economic

opportunities and where

promised com-pensation is

inadequate or fails to

materialize over time.

Why are Project Stakeholders Adversarial?(Apprehension)


A major documented cause

for concern among stake-

holders in the context of

some projects (such as the

construction of nuclear power

stations and factories) is the

ensuing loss of their property

value caused by the nature

of the projects being under-

taken in proximity. Research

studies have determined the

magnitude of loss in cases.

Why are Project Stakeholders Adversarial?(Economic Losses)


Stakeholders may oppose a

project because they expect

it to have a negative econo-

mic impact on themselves

and/or their community over

time. For example, they may

anticipate an increase in the

prices of goods and services,

and increase in rents which

in particular would affect

economically less well off

persons.

Why are Project Stakeholders Adversarial?(Perceived Negative Economic Impact)


A review of numerous pro-

jects worldwide reveals a

common issue of great con-

cern – pollution. This can de-

spoil atmospheric, soil, water

and acoustic environments,

resulting in severe health

hazards for individuals and

communities and visual de-

gradation of pristine settings.

Large-scale chopping of trees

is also widely opposed.

Why are Project Stakeholders Adversarial?(Pollution)


Many stakeholders are acute-

ly conscious of the adverse

and long-term impact which

projects may have on the

ecological systems (fauna

and flora) of their area or on

a broader scale and oppose

them on this ground. Power-

ful stakeholders include the

globally active environmen-

talist organizations Green-

peace & Friends of the Earth.

Why are Project Stakeholders Adversarial?(Damage to Ecological Systems)


Projects of the construction

type often cause traffic con-

gestion and a higher risk of

automobile accident and

personal injury as the project

gets underway. Many stake-

holders do not want the per-

sonal inconvenience, excite-

ment, and stress caused over

a prolonged period of time by

having a construction site in

close proximity.

Why are Project Stakeholders Adversarial?(Traffic Headache)


Many stakeholders oppose

projects for the simple rea-

son that the project owners

are outsiders to the commu-

nity. For example, there has

been much criticism of MNCs

projects in some developing

countries, with fears of an

„alienation“ of cultural

values, norms and traditions

being voiced.

Why are Project Stakeholders Adversarial?(Cultural Xenophobia)


Some stakeholders may be of

the opinion that there is no

genuine need for undertaking

a project - in other words -

they sincerely believe that

the project serves no pur-

pose and is in effect a waste

of resources, or that it is

based on a „contrived“ need

and is actually designed to

benefit the project owners at

their expense.

Why are Project Stakeholders Adversarial?(Suspicions About Need for Project)


Many projects are underta-

ken without thoroughly ana-

lyzing the stakeholder com-

munity and engaging them

with respect to their con-

cerns. Some stakeholders

may resent not having been

adequately consulted and/or

informed prior to the pro-

ject‘s initiation and hence

may not endorse it as they

may have otherwise done.

Why are Project Stakeholders Adversarial?(Frustration Over Lack of Consultation)


Occasionally the media re-

ports about heavy-handed

methods used by project

owners and allies to get the

project done. This may en-tail

verbally or physically

intimidating stakeholders

who oppose the project, and

in some documented cases

can include more serious

forms of violence like abduc-

tion and murder.

Why are Project Stakeholders Adversarial?(Use of Strong-Arm Tactics)


Some projects such as dam

and road construction extend

over a large space and may

cause damage to precious

cultural or archeological

assets at places which were

once of historical significance

and happen to be located at

or in proximity of the project

construction sites. Stakehol-

ders have documented many

such cases worldwide.

Why are Project Stakeholders Adversarial?(Concern For Cultural Assets)


Large projects may require

the influx of project employ-

ees from outside the commu-

nity. Ocasionally, tensions

between the „imported“

stakeholders working on the

project and the community

where the project is located

may arise over diverse

issues, one of which are

incidents of crime committed

by the outsiders.

Why are Project Stakeholders Adversarial?(Crime Fear)


It has been observed on

many projects that stake-

holders are put off by the

reputation, policies and prac-

tices of the organization(s)

which are undertaking the

project. This is especially

true, for example, on pro-

jects in which large oil and

mining companies are invol-

ved in developing countries.

Why are Project Stakeholders Adversarial?(Image of the Project Owner)


Some projects which gene-

rate considerable opposition

may find it difficult to find a

place where they can be im-

plemented. Some stakehol-

ders may be concerned that

allowing controversial pro-

jects to be set up in their

community may tarnish their

reputation in other communi-

ties given the negative pub-

licity about the projects.

Why are Project Stakeholders Adversarial?(Negative Publicity)


Most people tend to be con-

tent with their way of life as

long as it meets all their

basic needs and wants and

offers a comfortable environ-

ment. As projects go hand in

hand with change, and be-

cause the consequences of

the change cannot always be

accurately envisioned, stake-

holders may be hesitant to

support the project.

Why are Project Stakeholders Adversarial?(Attitude to Change)


9/11 changed our world,

pushing security to the fore-

front of our concerns. Stake-

holders may apprehend with

increasing intensity the

potential dangers inherent in

the pursuit of certain project

such as nuclear power sta-

tions, chemical factories and

even infrastructure projects

stemming from the threat of

terrorism (or just accident).

Why are Project Stakeholders Adversarial?(Security Concerns)


Numerous intra- as well as

interstate conflicts plague

our world. In war-ravaged

coun-tries such as

Aghanistan and Iraq, relief

and reconstruc-tion projects

are underway on a grand

scale. Many of the projects

and their staff have over time

been targetted by insurgents

who are opposing and

seeking to destabilise the

state.

Why are Project Stakeholders Adversarial?(Civil Strife Situations)


Video Case Study: Chad-Cameroon Pipeline(Review of Project Stakeholder Issues and Concerns)

This insightful 25 minute video made by the environ-mentalist organization Friends of the Earth docu-ments the ‚broken promi-ses‘ by the oil companies implementing the project, the project financers and governments of Cameroon and Chad toward the ex-ternal stakeholders of this project which is one of largest infrastructure pro-jects undertaken to date in Africa.


Project Stakeholder Options


Non-cooperation Enlisting media support to generate negative

publicity) Exerting pressure on other stakeholders to oppose

the project Boycotts Lobbying politicians and legislators Petitioning Litigation

Influencing Projects: Stakeholder Options(Institutional, Political and Legal Options)


At the very least an actively

adversarial stakeholder can

be expected to adopt a non-

cooperative stance towards

the projects, for example, by

refusing to sell goods and

services to the project imple-

mentors, refusing to work on

the project, not providing in-

formation which could facili-

tate it and withholding need-

ed support for the project in

the relevant forums.

Influencing Projects: Stakeholder Options(Non-Cooperation)


The Media is a powerful

opinion-shaper – and a con-

venient means for mobilizing

support for or against a pro-

ject if a convincing case can

be made. Adverse media

coverage – even if based on

misinformation - can cause

serious complications for the

project, making it (at the

very least) expend resources

unnecessarily on correcting

stakeholder perceptions.

Influencing Projects: Stakeholder Options(Enlisting Media Support)


Stakeholders are not isolated

entities but can under cir-

cumstances form „alliances“

with other stakeholders to

promote their objectives

which may include opposing

a project or some aspects of

it.

As individuals, stakeholders

may be in a position to exert

little influence but, collective-

ly, they may be a powerful

force to be reckoned with.

Influencing Projects: Stakeholder Options(Influencing Other Stakeholders)


Politicians and legislators are

powerful forces which can

obstruct the course of pro-

jects.

In many documented cases,

stakeholders have success-

fully mobilized political and

legislative support to oppose

projects.

Influencing Projects: Stakeholder Options(Lobbying Politicians and Legislators)


Among the many options

stakeholders have at their

disposal to influence the

course of a project is the use

of boycotts. These may take

the form of refusing to supply

inputs for the project during

the implementation phase or

refusal to purchase the goods

and services which will be

available once the project is

completed and enters its

operational phase.

Influencing Projects: Stakeholder Options(Boycotts)


Petitions are an active and

highly overt means of show-

ing public opinion against a

project.

Petitions have been used in a

number of different contexts,

such as infrastructure pro-

jects and projects where the

private-sector wants to de-

velop schemes in localities.

In some instances, petitions

have prevented the imple-

mentation of projects.

Influencing Projects: Stakeholder Options(Petitions)


Litigation is a powerful tool

which stakeholders can use

to influence projects.

As all projects function in a

legal environment, litigation

is especially useful when the

law leaves room for discre-

tionary interpretation and

where projects exhibit notice-

able shortcomings in regard

to the implementation of the

laws which they are required

to follow.

Influencing Projects: Stakeholder Options(Litigation)


In some instances, project

stakeholders can resort to

the option of denying official

recognition for a project or its

owner as a means of

modifying it or causing its

abandonment. A recent

example in this regard was

UNESCO‘s threat to strike the

German city of Dresden off

its heritage list to prevent the

construction of a bridge

across the River Elbe.

Influencing Projects: Stakeholder Options(Withdrawal of Recognition)


Verbal threats against project personnel Blockading project construction sites, facilities and

logistic supply routes Violent rallies and demonstrations, and strikes

against the project Acts of Violence: Rioting, arson, targeted sabotage,

vandalism and other scare tactics Criminal Acts: Abduction, assault, injuring and

murder of project personnel

Influencing Projects: Stakeholder Options(The Resort to Illegal Options)


One of the „milder“ illegal

options which stakeholders

have at their disposal for in-

fluencing projects is to direct

verbal threats against project

personell. The threats may

hint, directly or indirectly, at

some action that may hap-

pen at a future point in time

and which may result in phy-

sical and/or material damage

to the project and the people

working for it.

Influencing Projects: Stakeholder Options(Verbal Threats)


Another highly overt means

of showing opposition to-

wards (or support for) a pro-

ject is to organize public

rallies and demonstrations

with large media coverage.

Through such events, a com-

mon sentiment is conveyed

which other external forces –

for example, political forces -

may seek to exploit for self-

benefit at the expense of the

project.

Influencing Projects: Stakeholder Options(Rallies and Demonstrations)


Project construction sites,

facilities and supply routes

are often subject to physical

blockades by project stake-

holders with a view to pre-

venting supplies from reach-

ing them and consequently

causing both a delay as well

as increase in cost to the

project, besides intimidating

the project personell. Violent

clashes and injuries and

deaths may occur as a result.

Influencing Projects: Stakeholder Options(Blockades)


Criminal acts may assume

many different forms, inclu-

ding violence which is direc-

ted against property, such

as, the systematic sabotage

of project sites, facilities and

machinery, rioting with the

intention of vandalizing and

pilferage of project resour-

ces, and arson attacks. Such

actions can delay the project

and frighten the owners into

abandoning it completely.

Influencing Projects: Stakeholder Options(Violent Acts Against Property)


Stakeholders may, in some circumstances, indulge in criminal acts such as assaulting, injuring, abducting or even murdering project personnel in order to prevent the implementation of certain projects.

Stakeholders may resort to such extreme measures because they perceive the project as representing the interests of the state, with which they may be in prolon-ged armed conflict, or out of desperation because they have no other option to prevent the project which they perceive as an existential threat.

Several incidents of premeditated and recurring violence against project staff have been documented in crisis regions around the world in recent years, for example, in energy projects undertaken in the Nigerian Oil Delta, in (re-) construction and social development projects in Afghanistan, Pakistan and Iraq, and in the strife-torn island of Jolo in the Phillippines.

Influencing Projects: Stakeholder Options(Violent Acts Against People)


Case Studies:

Use of Options by Project Stakeholders on Projects


The Houston Chronicle, 9th February 2008

Assistant Professor Dr. Aurangzeb Zulfiqar Khan Department of Management Sciences, COMSATS Institute...

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