Corporate Social Responsibility: Institutional Behavior Differences in Extractive Industry

Abstract

The developed countries’ institutional research undertaken on corporate social responsibilities (CSR) have shown a positive relationship between accessibility of financial related assets and CSR. Contentions that we classified as the Institutional Difference Hypothesis (IDH) drawn from the institutional writing, on the other hand, propose that institutional contrasts amid of developing and the developed economies are prone to result in diverse CSR propositions. Incorporating the rationale of IDH with understanding of knowledge from slack resource theory, we contend that there exists a negative relationship between fiscal resources accessibility and CSR investments for mining companies in Ghana, a sub-Saharan African developing economy. We utilize a well-protected data from the Ghana Investment Promotion Center (GIPC), Ghana Stock Exchange (GSE) and Ghana Chamber of mines (GCM) and find that Return on Ordinary Share, Return on Sales, and Net Profit were reliably connected with lower CSR disbursements. We highlight the ramifications of our discoveries for academics’ examination and corporate practitioners.

Corporate social responsibility and stakeholder engagement in Ghana’s mining sector: a case study of Newmont Ahafo mines

“…The CSR sector has developed significantly over the last years and lots of organizations have become more involved in helping society recently than before and CSR concerns have now been incorporated into all facets of company's activities (Ofori & Debrah, 2014). In the same direction as (Marfo et al, 2017;Ofori & Debrah, 2014), also stated that the idea of CSR is that businesses incorporate social and environmental issues into their business activities and actively engage with interested parties. In this current day, there is appeal on business entities to pursue social activities, as state alone cannot manage societal issues and this has influenced the adoption of the definition of CSR in the country (Amoako, 2017).…”

Corporate Social Responsibility (CSR): motivations and challenges of a Multinational Enterprise (MNE) subsidiary’s engagement with host communities in Ghana

“…And if they do, what happens to such monies? Is it bad management and governance, or poor investments by successive governments (Amoako, Marfo, et al, 2017;Barnieh, 2015;Boso et al, 2017;Marfo et al, 2017)? Nonetheless, from the 1990s up to now, there have been immense improvements in the contributions of the mining sector to the economy and the development of the entire country.…”

“…Nonetheless, from the 1990s up to now, there have been immense improvements in the contributions of the mining sector to the economy and the development of the entire country. These contributions have come in the areas of employment, taxes, and foreign exchange earnings (Barnieh, 2015;Barnieh & Ofori, 2016;Boso et al, 2017;Marfo et al, 2017;Nyuur, Ofori, & Amponsah, 2019).…”

“…Besides, its Ahafo operations began work in 2006 are the biggest and the first gold producer in Ghana (Boso et al, 2017). Newmont Ahafo Mines Ltd. is known for good CSR practices by the people of Ahafo and Ghanaians (Amponsah-Tawiah & Dartey-Baah, 2011; Marfo et al, 2017).…”

“…Prior studies exist on CSR practices and stakeholder engagement in the extractive mining organisations (Marfo, Amoako, Antwi, Ghansah, & Mohammed Baba, 2017), in response to the calls for mining companies operating in emerging economies to progressively account for stakeholder groups affected by their activities . However, the extant literature on CSR initiatives and stakeholder engagement is scanty, especially in emerging economies such as Ghana (Barnieh & Ofori, 2016).…”