Corporate social responsibility in the mining industry: an exploration of host-communities’ perceptions and expectations in a developing-country

2018 ◽  
Vol 18 (6) ◽  
pp. 1177-1195 ◽  
Author(s):  
Gideon Jojo Amos

Purpose The purpose of this paper is to explore how and what drives corporate social responsibility (CSR) in host communities of mining companies in developing countries. Design/methodology/approach To address this knowledge gap, this paper used Ghana as a test case and conducted 24 in-depth interviews with participants drawn from mining host communities. Findings The paper discovered that while CSR is broadly understood and encompasses six thematic categories in the mining host communities, there are emphases on philanthropic and environmental responsibilities. Contrary to the evidence found in other studies, this paper discovered that CSR rhetoric plays a more positive/significant role than so far explored in CSR research, as it incentivizes the host communities to push for the fulfilment of their CSR expectations and/or CSR initiatives proposed by mining companies. Research limitations/implications Quantitative studies are needed to strengthen the findings from the present paper. Practical implications Because developing countries share similar socio-economic and geo-political realities, the findings of this paper may be applicable not only for CSR advocates, but also for policy-makers in developing countries. Originality/value The paper provides new inputs from a developing country perspective to the current debate about the CSR performance of the extractive industry.

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Barry Ackers ◽  
Susanna Elizabeth Grobbelaar

Purpose Despite initially being lauded as a revolutionary approach for companies to account to all stakeholders, the shareholder orientation of the international integrated reporting (<IR>) framework gave rise to questions about whether integrated reports would still sufficiently disclose pertinent corporate social responsibility (CSR) information. This paper aims to investigate the extent to which the <IR> framework has impacted the CSR disclosures contained in integrated reports of South African mining companies. Design/methodology/approach The study deployed a mixed methods research approach, involving thematic content analysis of the CSR disclosures contained in the integrated reports of mining companies with primary listings on the Johannesburg Stock Exchange. The resultant qualitative data were subsequently analysed using a T-test of difference. Findings The study observes that the release of the <IR> framework appears to have had a limited impact on the CSR disclosures in the integrated reports of most companies included in the study. However, where significant differences were identified, the CSR disclosures of some companies were positively impacted after the release of the <IR> framework, whilst others were negatively impacted. Research limitations/implications As South Africa is acknowledged as a leader in the global <IR> movement, the paper’s observations have global relevance and suggest that the fundamental principles of <IR> should be reconsidered to improve the alignment with stakeholders’ information needs, as originally conceived. Originality/value Despite the shareholder orientation of the <IR> framework, the global mining industry is acknowledged as being at the forefront of implementing CSR interventions to mitigate the adverse impacts of their operations on stakeholders, supporting a stakeholder orientation. As the adoption of <IR> continues to gain traction around the world, this paper’s contribution is that it represents one of the few papers to use the global reporting initiative G4 indicators to specifically examine the impact of <IR> framework on the CSR disclosures on the South African mining industry, where both <IR> and CSR reporting are quasi-mandatory disclosure requirements.


2015 ◽  
Vol 57 (5) ◽  
pp. 367-372 ◽  
Author(s):  
Deepankar Sharma ◽  
Priya Bhatnagar

Purpose – This paper aims to examine the community development approaches of large-scale mining companies, with particular reference to how they may engender community dependency. Design/methodology/approach – The paper begins with a review of corporate social responsibility (CSR) in the mining industry, corporate community initiatives and the problem of mining dependency at a national, regional and local levels. Findings – It outlines some of the reasons why less-developed countries (LDCs) experience under-development and detrimental effects as a result of their linkages with industrialized countries. LDCs are not able to take advantage of advanced technology and management skills due to being relatively poor in capital and skills, and foreign technologies compete unfairly with and destroy local production techniques, creating a pool of unemployable “marginalized” people. Holder’s of investments in LDCs demand annual returns for continued support – profits are taken out of the country or guaranteed by tax concessions. Unwillingness of foreign firms to train local people to take over management positions. Originality/value – This paper explores how the need to address sustainability issues has affected communities, and whether community development initiatives have been effective in contributing to more sustainable communities.


2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Dawit Bahta ◽  
Jiang Yun ◽  
Md Rashidul Islam ◽  
Muhammad Ashfaq

Purpose The purpose of this paper is to examine corporate social responsibility (CSR) and its effect on small and medium enterprises’ (SMEs) innovation capability and financial performance from the perspective of a developing country. It also aims to explore the role of innovation capability as a mediating factor in the linkage between CSR and SMEs’ financial performance. Design/methodology/approach A questionnaire was distributed among managers/owners of the sampled companies. Using a data set of 402 Eritrean firms and partial least squares structural equation modeling, direct and mediating effects were tested. Findings The result reveals that CSR has a positive and significant effect on the financial performance and innovation capability of SEMs. Besides, innovation capability has a positive and significant effect on the business performance of SMEs. The result also supports a partial mediation effect of innovation capability on the association between CSR and firm performance. Practical implications The findings from this research could enhance the awareness of the entrepreneurs, researchers and policymakers on CSR-SMEs’ relationship and help understand the importance of CSR as a crucial driver mechanism for companies to become more innovative and competitive. Originality/value By empirically examining the relationship between CSR, innovation capability and performance in SMEs, this study contributes to the ongoing scholarly discussion on the linkage between CSR and financial performance. Also, to the best of the authors’ knowledge, no other study investigated the mediating role of innovation capability on the link between CSR activities and firms’ financial performance in SMEs from a developing country perspective, making substantial contributions to research in terms of theory, practice and policy.


2015 ◽  
Vol 11 (3) ◽  
pp. 605-621 ◽  
Author(s):  
Jose Ventura ◽  
Cesar Sandro Saenz

Purpose – The aim of the study is to propose a model for conducting socially responsible operations in the mining industry, thriving to reach and sustain world-class standards in regard to profitability and environmental sustainability. The model uses a framework built upon a set of best practices in social responsibility by some of the largest mining companies in Peru. Design/methodology/approach – The methodology adopted emphasizes the scrutiny of best practices among 92 initiatives undertaken by 10 companies – 5 large and 5 mid-sized companies as measured by the ratio “amount of investment” – which contributed most to prevent social conflict escalation. Data set received input from in-depth interviews to managers in charge of social affairs as well as from interviews to social constituents – beneficiaries and local authorities. Content analysis supported data processing and analysis of results. Findings – Main findings comprise the following: distinct schemes for managing social responsibility in dependence upon impact evaluation indicators were found, which help to organize three models for conducting mining operations: traditional mining, up-to-date mining, and sustainability-oriented mining; evidence of distinct pathways undergone by large- and mid-sized companies in their quest to up-scale their corporate social responsibility profile. Originality/value – Overall results from this study suggest the feasibility to modeling the social responsibility of mining companies in accordance to three dimensions – social, economic, and environmental – that draw from the analysis of best practices undertaken by large- and mid-sized companies.


2016 ◽  
Vol 24 (2) ◽  
pp. 274-290 ◽  
Author(s):  
Farveh Farivar ◽  
Brenda Scott-Ladd

Purpose This purpose of this paper is to investigate Iranian manager’s perceptions towards the use of online social networking (OSN) for improving corporate social responsibility (CSR) communication. Design/methodology/approach The websites and Facebook pages of 23 companies that had won National Excellence Awards for CSR were reviewed in 2011, and 15 managers from across these participated in a survey, to assess the extent these companies used online facilities to develop CSR practices. These interviews raised awareness of the potential of OSN, so company websites and Facebook pages were reviewed again in 2013 to assess changes to CSR and OSN practices. Findings Despite recognition for their high level of awareness and implementation of CSR practices analysis of the initial surveys indicated that OSN uptake among the respondent companies was poor in 2011. Managers saw little value in using OSN to promote and engage with CSR; however, the level of engagement and uptake had substantially increased by 2013. Originality/value This study is one of the first to evaluate the use of OSN to improve CSR in a developing country. The study examines managers’ perceptions of the effect of OSN on CSR. Findings suggest that once management became aware of the value of social networking, they used it to engage with stakeholders from the marketplace, community and workplace to promote their business and for CSR-related issues. This rapid uptake demonstrates how quickly OSN technology can be implemented once its potential is identified.


Subject Outlook for corporate social responsibility. Significance Through regulation or incentives, the public sector encourages private companies to channel resources into programmes with a societal benefit. These programmes reflect the company's value system as a social actor and are encompassed under the umbrella of corporate social responsibility (CSR). Traditionally, the decision to initiate CSR was within the company's purview. This is changing, as legislation incentivises private companies to develop corporate social investment (CSI) programmes, bringing benefits above those directly associated with core business activities. CSI is the actualisation of the company's CSR. Impacts The growing number of companies engaged in CSR will need to be supported by advisory services and financial guidance. In developing countries, more programmes will empower women as economic drivers and not merely as assistance recipients. As CSR matures in developing countries, the stakeholders' scope of activities will broaden to include policy and governance. CSI may increase the fragmentation of efforts, as bilateral and multilateral coordination among companies will take time and resources.


2015 ◽  
Vol 18 (4) ◽  
pp. 586-607 ◽  
Author(s):  
Nicholas Hill ◽  
Warren Maroun

This study examines the potential impact of industrial unrest and the outbreak of violence at Marikana on 16 August 2012 on the share prices of mining companies listed on the Johannesburg Stock Exchange (JSE) using an event methodology. Contrary to expectations, the Marikana incident does not appear to have had a widespread and prolonged effect on the South African mining sector. This may be the result of the strike action already having been discounted into the price of mining shares, implying that the market was only reacting to the unusually violent (but short-lived) protest. Alternately, the results could be indicative of investor confidence in the corporate social responsibility initiatives of the South African mining industry as a whole. This paper is the first to examine the potential impact of the Marikana incident on the share prices of mining companies listed on the JSE. It should be of interest to both academics and practitioners wanting to understand how share prices react to exogenous events. It is also relevant for corporate-governance researchers concerned with the relevance of social and governance practices in a South African setting. This research is faced with the limitations associated with most statistical research: that causality cannot be ascribed to tested relationships. Notwithstanding these limitations, it is argued that these findings are important, given the significant coverage of the Marikana incident and the ongoing debate on the need for corporate social responsibility.


2018 ◽  
Vol 8 (1) ◽  
pp. 106-123 ◽  
Author(s):  
William Coffie ◽  
Francis Aboagye-Otchere ◽  
Alhassan Musah

Purpose The purpose of this paper is to examine the effect of corporate governance and degree of multinational activities (DMAs) on corporate social responsibility disclosures (CSRD) within the context of a developing country. Design/methodology/approach Using the annual report of 33 listed firms spanning from 2008 to 2013, the authors employed content analysis based on an adapted index score of CSRD developed by Hackston and Milne (1996) as applied in similar studies (e.g. Deegan et al., 2002; Hassan, 2014). Guided by the authors’ hypotheses, the authors model quantity and quality of CSRD (two separate econometric models) as functions of multinational activity and corporate governance. Findings The results show that the DMA has a positive association with both quality and quality of CSRD. The results also show that certain corporate governance characteristics such as board size (quality and quantity) as well as the presence of a social responsibility sub-committee of the board (quality) have a positive relationship with CSRD. However, increasing the number of non-executive directors (NEDs) may not necessarily improve the quantity or quality of disclosure. Research limitations/implications The study is limited by theory and geography. Theoretically, the study is based on the legitimacy theory and feels compelled to reiterate the importance of considering alternative theoretical perspective in future research. Again the study is limited geographically as the investigation is based on Ghana only and the authors suggest that future research be extended to other countries. Practical implications This study is important as it demonstrates the importance of providing quality of CSRD to stakeholders when the board of a firm has a sub-committee responsible for corporate social responsibility. Originality/value The results of the study extend the literature on CSRD by demonstrating a new evidence on how the degree of firm’s multinational activities together with corporate government mechanism affects both quantity and quality of CSRD in the context of unchartered developing country. The results support the theoretical view that companies engage in CSRD in attempt to legitimize their operations based on the pressure exerted on them and the mechanism put in place to respond to those pressures.


2015 ◽  
Vol 6 (2) ◽  
pp. 166-189 ◽  
Author(s):  
Mohammed Ziaul Haque ◽  
Fara Azmat

Purpose – This paper aims to examine the state of corporate social responsibility (CSR) in labour-intensive industries in developing countries in the context of economic globalization. Using the ready-made garments’ (RMG) industry in Bangladesh as a case study, challenges and key issues relating to CSR are highlighted. Design/methodology/approach – The paper draws from the review of existing literature, and the content analysis of two leading newspapers in Bangladesh for a period of one year (July 2012-June 2013) to identify the key and contemporary issues related to CSR in the RMG industry. Findings – Findings identify the contemporary issues of concerns associated with CSR in the RMG industry, relating them to the debate on the applicability of Carroll’s CSR pyramid to developing countries. The findings suggest that non-compliance of CSR in labour-intensive industries is a function of the nature of economic globalization. The need for a stakeholder approach towards CSR for the profitability and sustainability of this industry is also highlighted. Practical implications – This paper makes contributions to two different but important interrelated discourses on CSR and economic globalization. It also provides insights into the complexity involved in CSR in labour-based export industries in developing countries and acts as a springboard for further research. Originality/value – The paper is the first to look at all major issues of concern regarding CSR in the RMG industry in Bangladesh. As Bangladesh is an exemplar of developing countries and RMG is a typical starter industry, the findings are generalizable to similar industries in other developing countries.


2015 ◽  
Vol 6 (1) ◽  
pp. 65-79 ◽  
Author(s):  
Kwesi Amponsah-Tawiah ◽  
Justice Mensah

Purpose – The aim of this paper is to set a baseline understanding of the corporate social responsibility (CSR) concept amongst the different stakeholders in the mining industry in Ghana and further examine their appreciation of issues of occupational health and safety. It explored the integration of issues of health and safety of employees into the broader CSR agenda through a stakeholder analysis. Design/methodology/approach – The study population comprised various stakeholders operating in the mining industry of Ghana. The purposive sampling technique was used in the selection of the organisations/institutions that participated in the study. In all, 35 people were interviewed, and the interview data were analysed using thematic-content analysis. Findings – The findings provide an insight into how the various stakeholders in the mining industry in Ghana understood the CSR concept and how they went about practising it. Appreciation of issues health and safety by the various stakeholders also received considerable attention. All the stakeholders equated CSR to community relations. In all the cases, respondents referred to the local community as their focal point when discussing the concept. Originality/value – On the basis of this paper, it appears that mining companies in Ghana have looked upon the concept as a strategic challenge and not as a series of high-profile initiatives aimed at ensuring a responsible business practice. This paper adds to the literature by providing a perspective on how CSR associates with health and safety.


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