Corporate Social Responsibility of Mining Companies in Ghana: The case of Newmont Ghana Gold Limited at Ahafo

Abstract

It is perceived by many that communities in Ghana that host large scale mining activities are affluent and outpace several other communities in terms of socio-economic development. This seems not to be the case. This notwithstanding, mining companies have an obligation to fulfil towards the communities they operate within as part of their Corporate Social Responsibility (CSR). This necessitated an assessment of the Corporate Social Responsibility of Newmont Ghana Gold Limited at Ahafo in Ghana. This paper considered relevant literature pertaining to the subject matter, the views of community members within the mining enclave of Ahafo as well as that of Newmont Ghana Gold Limited. A sample of 180 respondents was chosen through a purposive sampling technique. Key personalities including an Assemblyman, a Youth Leader, and three resettled persons were interviewed. There was also a focused group discussion among community members. The study found out Newmont has not deviated from its CSR in the region.

Corporate social responsibility and financial performance nexus: Empirical evidence from Ghana

“…The results are in consonance with (Anlesinya et al, 2014;Ehsan & Kaleem, 2012;Khan & Tariq, 2017;Mansaray et al, 2017;Maqbool & Zameer, 2018;Menezes, 2019;Owusu, 2017;Tyagi, 2019;Xie et al, 2019). Hence, stakeholder theory and agency theory both support the idea that CSR has a favourable impact on business success.…”

“…It should be highlighted that Ghana's inconclusive CSR-financial performance nexus is similar to the worldwide scenario. While most previous studies (Adu, 2020;Hevi et al, 2018;Owusu, 2017) discovered a positive association, a few discovered a negative relationship (Marfo et al, 2015). This means that there is an empirical gap in the CSRfinancial performance nexus that needs to be addressed in the Ghanaian context, which is what this study aims to do.…”

“…Ghana has conducted a number of research to look into the connection between CSR and financial performance. For example, Owusu (2017) investigated the CSR-financial performance relationship utilising the Ghana Club 100 Members, whereas Hevi et al (2018) conducted a critical review of the CSR-Financial Performance link using Ghanaian Oil Marketing Companies.…”

“…The majority of earlier studies in Africa discovered a favourable connection between CSR and financial performance (Adu, 2020;Anlesinya et al, 2014;Gichohi, 2016;Gololo, 2016;Hevi et al, 2018;Mansaray et al, 2017;Muritala, 2013;Nyeadi et al, 2018;Owusu, 2017). However, the empirical literature shows that the CSR-financial performance link is not always positive; some previous studies in Europe, for example, found a negative relationship (Bråtenius & Melin, 2015;Johansson et al, 2015), while others in Asia found a negative relationship between CSR and financial performance (Hermawan & Mulyawan, 2014).…”