A developmental paradox? The “dark forces” against corporate social responsibility in Ghana’s extractive industry

Abstract

In order to reduce environmental degradation and contribute more to wider sustainable development efforts, mining and oil companies in Ghana undertake different projects in affected communities, such as building schools and providing scholarships, as part of their corporate social responsibility (CSR). Yet, evidence from recent studies suggests that the outcomes of these practices are mixed in terms of improving the livelihoods of people. This situation raises the question: what account for the disparity between companies’ CSR activities and perceptions of affected communities? Drawing upon interview data with stakeholders from the mining and oil sectors of Ghana, the paper explores the perceived factors that undermine the contribution of CSR toward developmental efforts in affected communities. The results show that misplaced priorities and duplication of projects on the part of companies, high expectations from affected communities, and inadequate involvement of beneficiaries are among the factors that undermine CSR in Ghana. These findings contribute to extant literature that underscore the dichotomy between CSR and development.