Controversial Adani Coal Mining Operation in Queensland: A Stakeholder Analysis

Cotemporary Accounting Issues

Table of Contents
Introduction......................................................................................................................................3
Explanation of Stakeholder Theory.............................................................................................3
Impact on stakeholders................................................................................................................4
Management of interest of the Stakeholders and indigenous community...................................8
Management of interest of Stakeholder group.............................................................................9
Conclusion.....................................................................................................................................10
References......................................................................................................................................11

INTRODUCTION
Adani Mining is the wholly-owned subsidiary of Adani Group. Adani Mining proposed
Carmichael Coal Mine in Queensland, Australia. It has been stated by Adani Group that this
mine would produce significant amount of coal, and it would be one of the largest coal mines in
Australia. However, the mine leads to immense controversy because of its claimed economic
benefit (Smith, 2017). The given study is based on evaluation of controversial Adani coal mining
operation in Queensland by considering this stakeholders interest supported by concept of
stakeholder theory. Further, community, employees, and government or regulatory authority are
three important stakeholders of company, how they affected by operations of Adani Group is
prescribed in this report. In addition to this, by considering the ethical viewpoint the manner of
management of interest of stakeholders and indigenous community is given in the report
supported by application of stakeholder theory.
Explanation of Stakeholder Theory
According to the Stakeholder theory, the main objective of the organization is to build value for
stakeholders, rather than shareholders. Stakeholders are anyone who is affected by interest of
organization (Jones, Harrison, and Felps, 2018). In other words, it can be said that any activity of
company which make impact on any person are considered as stakeholder of company such as
employees, supplier, political group, customers, competitors, trade association, communities and
many others (Jones, Wicks, and Freeman, 2017). In order to achieve the long term sustainable
growth of company, it is essential that company should consider the interest of its stakeholders.
Further, it assists in generation of productivity throughout the organization, such as if the
workers of company feel that they are being valued, then they work in a more productive

manner, which ultimately leads to the success of company (Miles, 2017). In addition, it provide
benefit of retention of employees as well as customers.
Moreover, investors also want to make investment in the sustainable company, which assists the
inflow of capital. Since, this theory is more focused on ethical consideration as compared with
financial benefit, by which reputation of company increases. Moreover, in the competitive
environment, by following stakeholder theory a company can remain in the industry by availing
several competitive advantages. It is the responsibility of company to treat all stakeholders in an
equal manner. (Andriof, and Waddock, 2017) The management of company should be in such a
way which provides benefit to all its stakeholders. Overall, it can be said that management of
company should take decision by considering the interest of stakeholders in the activities of
company.