1. Assistant Professor Dr. Aurangzeb Zulfiqar Khan Department of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan 1 What Makes Project Stakeholders Supportive and Adversarial?

2. Assistant Professor Dr. Aurangzeb Zulfiqar Khan Department of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan 2 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)

3. Assistant Professor Dr. Aurangzeb Zulfiqar Khan Department of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan 3 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)

4. Assistant Professor Dr. Aurangzeb Zulfiqar Khan Department of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan 4 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)

5. Assistant Professor Dr. Aurangzeb Zulfiqar Khan Department of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan 5 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)

6. Assistant Professor Dr. Aurangzeb Zulfiqar Khan Department of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan 6 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)

7. Assistant Professor Dr. Aurangzeb Zulfiqar Khan Department of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan 7 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)

8. Assistant Professor Dr. Aurangzeb Zulfiqar Khan Department of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan 8 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)

9. Assistant Professor Dr. Aurangzeb Zulfiqar Khan Department of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan 9 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)

10. Assistant Professor Dr. Aurangzeb Zulfiqar Khan Department of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan 10 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)

11. Assistant Professor Dr. Aurangzeb Zulfiqar Khan Department of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan 11 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)

12. Assistant Professor Dr. Aurangzeb Zulfiqar Khan Department of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan 12 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)

13. Assistant Professor Dr. Aurangzeb Zulfiqar Khan Department of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan 13 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)

14. Assistant Professor Dr. Aurangzeb Zulfiqar Khan Department of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan 14 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)

15. Assistant Professor Dr. Aurangzeb Zulfiqar Khan Department of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan 15 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)

16. Assistant Professor Dr. Aurangzeb Zulfiqar Khan Department of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan 16 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)

17. Assistant Professor Dr. Aurangzeb Zulfiqar Khan Department of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan 17 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)

18. Assistant Professor Dr. Aurangzeb Zulfiqar Khan Department of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan 18 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)

19. Assistant Professor Dr. Aurangzeb Zulfiqar Khan Department of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan 19 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)

20. Assistant Professor Dr. Aurangzeb Zulfiqar Khan Department of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan 20 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)

21. Assistant Professor Dr. Aurangzeb Zulfiqar Khan Department of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan 21 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)

22. Assistant Professor Dr. Aurangzeb Zulfiqar Khan Department of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan 22 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)

23. Assistant Professor Dr. Aurangzeb Zulfiqar Khan Department of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan 23 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)

24. Assistant Professor Dr. Aurangzeb Zulfiqar Khan Department of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan 24 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)

25. Assistant Professor Dr. Aurangzeb Zulfiqar Khan Department of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan 25 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)

26. Assistant Professor Dr. Aurangzeb Zulfiqar Khan Department of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan 26 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.

27. Assistant Professor Dr. Aurangzeb Zulfiqar Khan Department of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan 27 Project Stakeholder Options

28. Assistant Professor Dr. Aurangzeb Zulfiqar Khan Department of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan 28  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)

29. Assistant Professor Dr. Aurangzeb Zulfiqar Khan Department of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan 29 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)

30. Assistant Professor Dr. Aurangzeb Zulfiqar Khan Department of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan 30 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)

31. Assistant Professor Dr. Aurangzeb Zulfiqar Khan Department of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan 31 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)

32. Assistant Professor Dr. Aurangzeb Zulfiqar Khan Department of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan 32 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)

33. Assistant Professor Dr. Aurangzeb Zulfiqar Khan Department of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan 33 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)

34. Assistant Professor Dr. Aurangzeb Zulfiqar Khan Department of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan 34 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)

35. Assistant Professor Dr. Aurangzeb Zulfiqar Khan Department of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan 35 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)

36. Assistant Professor Dr. Aurangzeb Zulfiqar Khan Department of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan 36 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)

37. Assistant Professor Dr. Aurangzeb Zulfiqar Khan Department of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan 37  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)

38. Assistant Professor Dr. Aurangzeb Zulfiqar Khan Department of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan 38 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)

39. Assistant Professor Dr. Aurangzeb Zulfiqar Khan Department of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan 39 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)

40. Assistant Professor Dr. Aurangzeb Zulfiqar Khan Department of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan 40 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)

41. Assistant Professor Dr. Aurangzeb Zulfiqar Khan Department of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan 41 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)

42. Assistant Professor Dr. Aurangzeb Zulfiqar Khan Department of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan 42 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)

43. Assistant Professor Dr. Aurangzeb Zulfiqar Khan Department of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan 43 Case Studies: Use of Options by Project Stakeholders on Projects

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51. Assistant Professor Dr. Aurangzeb Zulfiqar Khan Department of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan 51 The Houston Chronicle, 9 th February 2008

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