Corporate social responsibility and economic growth in the mining industry

Abstract

This research provides insight into the effects of implementing Corporate Social Responsibility initiatives in the mining industry in the European context. In many cases, the strategy is not coincident for shareholders and stakeholders, and as a result, the mining activity could be jeopardized. Achieving socially responsible goals can be a challenging task to conduct. This study aims to examine the relationship between Corporate Social Responsibility (CSR) performance and the economic growth of European mining companies using fixed effects regression models in addition to content analysis. Data from 45 medium- and large-sized mining companies is analyzed from 2018 to 2021. The models were created to assess the relationship between the companies' economic and social responsibility performances. The findings of this paper confirm that Corporate Social Responsibility positively affects the economic growth of companies, including their profitability and firm value. Furthermore, the affecting CSR indicators are identified with respect to each economic indicator, with training, health & safety, and community development being the most common impacting indicators.