Figure 1 – Conceptual model of Corporate Diplomacy Actions 2.1. Managerial Decisions and Diplomacy Actions The model proves that senior management decisions have a direct impact on 'Corporate Diplomacy Actions.' These actions should not be confused with traditional social responsibility or philanthropy. Rather, they are strategic initiatives designed to align company interests with the critical needs of stakeholders. The study identifies key dimensions: ● Infrastructure Improvement: The use of corporate capabilities to strengthen community infrastructure (road, water, and energy networks) ● Job Creation: Labor practices that generate a direct economic impact within the area of influence. ● Participation of the Community: Mechanisms that grant communities involvement in some form or another, and direct interests in the development and outcomes of projects, fostering co-operation in the development, and reducing adversarial dynamics between operators and local populations. ● Quality of Contact: Engagement processes that validate and ensure community participation. ● Quantity of Contact: The frequency and regularity of interactions between management and community members, which builds trust and ensures that diplomatic actions are perceived as sustained commitments rather than isolated gestures. 2.2. Legitimacy as an Intangible Asset The result of these actions is legitimacy, defined as the social acceptance the organization earns from community members. The statistical model confirms that this variable is what ultimately has a favorable impact on business performance. Without legitimacy, transaction costs (conflicts, blockades) become infinite, rendering any project unfeasible, regardless of the quality of the mineral deposit. 13
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