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

Abstract

PurposeThis 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/approachA total of 90 community residents were interviewed, with 15 from each of the six selected different communities.FindingsThe 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/valueSince 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.