Power for the People: Sustainability and Stakeholder Engagement in the New Zealand Power Industry Jacqueline Nancy Louise Allen Faculty of Business and Law A thesis submitted to Auckland University of Technology in fulfilment of the requirements for the degree of Master of Philosophy April 2013 Table of Contents List of Figures ..........................................................................................................v List of Tables ......................................................................................................... vi List of Appendices ................................................................................................ vii List of Acronyms ................................................................................................. viii Glossary of Maori Terms .........................................................................................x Attestation of Authorship ....................................................................................... xi Acknowledgements ............................................................................................... xii Abstract ................................................................................................................ xiv Introductory Note ................................................................................................. xvi Section 1 Introduction ..............................................................................................1 Chapter 1: Sustainability Introduction ..................................................................................................3 What is sustainability and why should we care? .........................................4 Sustainability and human society.................................................................4 Sustainable development .............................................................................9 Sustainability, economics and the business community ............................18 Mechanisms in pursuit of sustainability ....................................................24 Conclusion .................................................................................................26 Chapter 2: The Stakeholder Concept Introduction ................................................................................................27 The stakeholder concept ............................................................................28 From concept to theory ..............................................................................30 Who are stakeholders? ...............................................................................35 What is at stake? ........................................................................................41 Why do businesses respond to stakeholders? ............................................42 How do businesses respond to stakeholders? ............................................45 Why do stakeholders participate? ..............................................................49 How do stakeholders participate? ..............................................................50 When do stakeholders participate? ............................................................53 What are the limitations of stakeholder theory? ........................................54 Networks ....................................................................................................57 i Conclusion .................................................................................................59 Chapter 3: The Sustainability Stakeholder Nexus Introduction ................................................................................................60 Stakeholders and sustainability ..................................................................61 Enlightened self-interest perspectives ........................................................62 Moral/ethical perspectives .........................................................................67 Criticisms of the stakeholder engagement for sustainability concept ........72 Conclusion .................................................................................................78 Section 2 Introduction ............................................................................................79 Chapter 4: Methodology and Method Introduction ................................................................................................80 Locating the researcher ..............................................................................80 The methodological mix ............................................................................82 The research orientation .............................................................................87 The conceptual landscape ..........................................................................92 Grounded theory approach .........................................................................92 Literature review technique ...................................................................... 95 Sample selection ....................................................................................... 97 Commencing fieldwork ............................................................................ 99 Data collection .........................................................................................102 Data processing and presentation.............................................................106 Data analysis ............................................................................................108 Conclusion ...............................................................................................109 Chapter 5: Research Context Introduction ..............................................................................................110 Aotearoa New Zealand ............................................................................110 Energy ......................................................................................................113 Electricity generation ...............................................................................115 Economic reform .....................................................................................119 Electricity generation and the environment .............................................122 The New Zealand regulatory environment ..............................................126 The three companies ................................................................................129 Contact Energy Ltd ..................................................................................130 Mighty River Power .................................................................................131 ii TrustPower ...............................................................................................132 Conclusion ...............................................................................................133 Section 3 Introduction ..........................................................................................134 Chapter 6: Power Generator A and its Stakeholders Introduction ..............................................................................................137 The logistics of stakeholder relationships ................................................137 Views from inside the company ..............................................................139 Views from outside the company ............................................................148 Iwi stakeholders .................................................................................149 Environmental stakeholders ...............................................................158 Community stakeholders ...................................................................166 Regulatory stakeholders .....................................................................172 Conclusion ...............................................................................................183 Chapter 7: Power Generator B and its Stakeholders Introduction ..............................................................................................184 The logistics of stakeholder relationships ................................................184 Views from inside the company ..............................................................187 Views from outside the company ............................................................194 Iwi stakeholders .................................................................................194 Environmental stakeholders ...............................................................198 Community stakeholders ...................................................................205 Regulatory stakeholders .....................................................................211 Conclusion ...............................................................................................217 Chapter 8: Power Generator C and its Stakeholders Introduction ..............................................................................................218 The logistics of stakeholder relationships ................................................218 Views from inside the company ..............................................................221 Views from outside the company ............................................................229 Iwi stakeholders .................................................................................229 Environmental