How to Avoid Conflict with Local Communities

How to Avoid Conflict with Local Communities

Alberto Fonseca August 30, 2010
To limit their conflicts with local communities, managers of multinational corporations (MNCs) must consider three interrelated factors: power inequality, perception gaps and cultural context. When these factors are properly managed, they can reduce tensions between MNCs and their neighbouring communities, thereby reducing opportunities for conflict. The author applies community engagement literature to identify managerial trends that can reduce conflict.



Implications for Managers

The proposed framework can help managers by identifying the underlying causes of conflicts with local communities. Corporate engagement programs can effectively address conflicts by empowering local communities and by increasing managers' awareness of community perspectives. Managers also need to understand key community strategies (e.g. protests, blockades, and other media-grabbing tactics) when managing conflicts. 

Implications for Researchers

Conflicts between MNCs and local communities have been studied in a limited way. The author provides a pioneering framework to understand the drivers of conflicts. Future work should test the framework's explanatory power. In light of the qualitative nature of the work, additional empirical studies are needed to address the effectiveness of each of the drivers and strategies. 


The study was based on a critical analysis of the literature regarding community engagement. The author defined the key concepts relevant to the analysis and structured the discussions around the three main factors that contribute to conflict.
Calvano, L. 2008. Multinational Corporations and Local Communities: A Critical Analysis of Conflict. Journal of Business Ethics, 82, 793-805.