Black gold, the scenic rim and the theory of the firm: implications of the exploration for coal and coal seam gas in the scenic rim of south east Queensland for the evolving theory of the firm

Black gold, the scenic rim and the theory of the firm: implications of the exploration for coal and coal seam gas in the scenic rim of south east Queensland for the evolving theory of the firm

The implicit social contract between Australian society, government and business does not provide an environment in which communities within the Scenic Rim of South East Queensland believe that their values and development desires are adequately protected. Consequently, the communities are insisting that their local values, particularly regarding the environment, good quality agricultural land and water, be recognised and respected by both governments and mining companies. This changing social contract has significant implications for: (i) the nature of the engagement between communities and mining companies that might result in a more equitable distribution of both the benefits and disadvantages of mining; and; (ii) the evolving theory of the firm. This change applies particularly to those theories that focus on the reasons for existence of corporations, their relationship with external stakeholders and the values placed on corporate resources.

The thesis is based on qualitative research into the values and development desires of communities and companies active within the Scenic Rim of South East Queensland and draws heavily on archival material available from both Australian and Queensland government sources. A model for evaluating the utility of theories of the firm is developed and twelve existing groups of theory are analysed. Few of the theories meet many of the criteria proposed in the model (particularly regarding tests of their validity and reliability) and characteristics of an enhanced theory of the firm applicable to all companies are identified.