An Analysis of CSR in Locally Owned Mining Companies in Zimbabwe

• In Event: Volunteering and the World of Work

Abstract

CSR can be defined as the actions by the organization, which they do as an appeasement to the negative actions of their business activities (International Standards Organization, 2010). When an organization is implementing CSR, it shows its recognition and respect to its stakeholders (Muthuri & Gilbert, 2011). An organization has a relationship with society and its stakeholders and the relationships influence the social responsibility of the organization. The expectations of society and other stakeholders may be different and it is the duty of the organization to ensure that it maintains all the relationships (Moratis, 2016). An organization needs to understand and consider CSR from the viewpoint of each group so that they will be able to meet their expectations (International Standards Organization, 2010).

To negate the negative effects associated with the extractive industry, the industry has been involved in local community development mainly through Corporate Social Responsibility (Mbilima, 2021). However, CSR activities seem more voluntary, and local communities do not appreciate the activities being implemented as there is no community engagement (Mandevere & Horne, 2021). Even though the industry has great potential to improve society, poor social and environmental performance has often been displayed resulting in debates and a negative reputation (Baba et al., 2021). Poor infrastructure often characterizes communities around the mining companies in Zimbabwe (Gamu et al, 2015). CSR for communities in some African countries like South Africa and Mauritius is no longer voluntary as companies are now required by the law to associate and develop the communities in which they work. Even in countries where legislation is weak Multinational Companies (MNCs) are normally governed by international standards and they tend to reciprocate what they do in other countries.

Following the enactment of different legislation many locals are now owning mining concessions in Zimbabwe (Mathende & Nhapi, 2017). In view of the government’s push to localisation of mining companies, the study sought to understand the extend to which local companies are participating in community development through Corporate Social Responsibility (CSR). The researcher used an exploratory research approach to gain a better understanding of how the locally owned companies are implementing CSR. A total of ten mining companies were purposively sampled from the largest locally owned mining companies. Primary data was collected from mining companies and the communities around them and qualitatively analysed using Atlas.ti.

The study concluded that there is no meaningful contribution made by mining companies through CSR as the legislation is unclear and not being enforced. The lack of formal structures has a negative impact on how local companies implement CSR as they end up engaging one group of people mostly the influential ones giving room for corruption. This has a negative impact on the collaborations between communities and mining companies. It is important for governments to enact and enforce legislation that encourages community development. The study contributed to the literature on how CSR contributes to community development, especially in the mining communities.

References

Baba, S., Mohammad, S., & Young, C. (2021). Managing project sustainability in the extractive industries: Towards a reciprocity framework for community engagement. International Journal of Project Management, 39(8), 887–901. https://doi.org/10.1016/j.ijproman.2021.09.002
Mandevere, M., & Horne, R. (2021). Academic Journals—African Journal of Business Management—Sustainability of CSR projects done by mining companies in Zimbabwe compared to South Africa. African Journal of Business Management. https://academicjournals.org/journal/AJBM/article-abstract/
Mathende, T. L., & Nhapi, T. G. (2017). Business and society: Determinants and experiences of Corporate Social Responsibility practices in Zimbabwean extractive industries from 2000-2015. Consilience, 17, 143–161.
Mbilima, F. (2021). Extractive industries and local sustainable development in Zambia: The case of corporate social responsibility of selected metal mines. Resources Policy, 74, 101441. https://doi.org/10.1016/j.resourpol.2019.101441

Author

• Melody Mandevere, Centre on African Philanthropy and Social Investment CAPSI