Abstract
This paper offers evidence on the relevance of legitimacy theory for explaining changes in the frequency of corporate social responsibility (CSR) disclosures by South African platinum mining companies following violent strike action during 2012 at Marikana. The results show that all of the South African platinum mining companies provide additional information dealing specifically with the strike taking place at Marikana. This is more pronounced for the company directly involved in the incident. The research also finds evidence of a reaction to the social event by other companies in the South African Platinum Industry which alter the nature and extent of general CSR disclosures to maintain legitimacy. In this way, the study offers evidence in support of the relevance of legitimacy theory for explaining changes in CSR reporting. The findings of this study complement existing research which has ignored the South African market. Although there has been some work on legitimacy theory in the context of environmental disclosure by South African companies, the study is the first to examine a significant social event using legitimacy theory as the frame of reference.
Highlights
South Africa is one of the top global mineral producers with the mining industry contributing significantly to the country’s employment opportunities and gross domestic product (GDP) (De Villiers & Alexander, 2014; Chamber of Mines of South Africa, 2016)
This research provides initial evidence in support of the applicability of legitimacy theory in the reporting strategies being used by some listed South African platinum mining companies
The article expands on an earlier body of international research which shows how companies often respond to corporate social responsibility (CSR) challenges by increasing the extent of their non-financial disclosures in their annual or integrated reports (Patten, 1992; O’Donovan, 2002; Patten, 2002)
Summary
South Africa is one of the top global mineral producers with the mining industry contributing significantly to the country’s employment opportunities and gross domestic product (GDP) (De Villiers & Alexander, 2014; Chamber of Mines of South Africa, 2016). Mining operations go hand-in-hand with a number of social challenges, as highlighted by unprecedented strike action in the industry (Chinguno, 2013). 16 August 2012 saw the killing of an estimated forty four mine workers and the injury of at least seventy others in a strike at the Lonmin Plc’s (Lonmin) platinum mine in Marikana (Nkosi, 2012; Farlam, Hemraj & Tokota, 2015). This was the most violent labour demonstration witnessed since Apartheid (Bond & Mottiar, 2013).
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