The economic impact of corporate social responsibility on the development of indigenous communities: evidence from Ghana’s mining sector

Abstract

Purpose This study aims to examine the socio-economic and environmental impacts of mining activities as perceived by communities in Ghana, with data being drawn from primary and secondary sources. Design/methodology/approach A total of 90 community residents were interviewed, with 15 from each of the six selected different communities. Findings The findings revealed a positive perception that corporate social responsibility (CSR) practices of mining companies contribute to the development of mining communities in Ghana by creating jobs and generating income. However, it became clear that mining activities, particularly small-scale mining, create many social and environmental challenges as well. This includes land degradation, which reduces the fertility of community-owned land suitable for agricultural use. In addition, pollution of waterways and streams intensifies the plight of community residents living in mining areas. Originality/value Since 2011, the mining industry has invested between US$12m (in 2013) and US$44m (in 2011) in Ghana’s communities. The amount spent in 2019 was US$24m. The funds were spent by the industry in areas such as roads, education, health and electricity, among others. Still, it seems more effort is needed by the mining companies to harmonise the CSR practice and gain better impression by local people. In spite of the mining industry’s investment levels, more than half of the community respondents said it was insufficient. One-third of the respondents went as far as suggesting the mining companies had a negative impact on infrastructure improvement and community development.

Farmland Loss and Livelihood Effects: Diamond and Gold Mining Implications on Farmers’ Sustainability in Sierra Leone

“…This is a clear manifestation that mining activities have hindered the productivity of agricultural lands in the research communities. Similarly, results were manifested in a published article by Shubita et al (2023) that mining tailings like mercury, cyanide, inorganic oil, etc., are heavily deposited into soils, leading to low agricultural land productivity in the mining regions of Ghana. Furthermore, the results disclosed that the rice farmers earned a mean income of Le.843.04 (USD 38.32) a month from selling their produce, with revenue ranging from a minimum sum of Le.100 (USD 5.0) to a maximum of Le.…”

Integrating Education and Responsibility: Enhancing Carbon Neutrality through CSR, EnEd, and USR Synergies

“…The implementation of CSR varies across different geographical contexts, each presenting unique challenges and opportunities. Shubita, Ahmed, & Essel-Paintsil (2022) examine the dual impact of mining on indigenous communities in Ghana, showing both positive economic contributions through CSR and negative environmental effects. In Cameroon, Fofuh & Awolusi (2021) find that CSR is still emerging, with local corporations not fully addressing environmental concerns, indicating a gap in CSR practices in relation to environmental protection.…”