A critical view of the contribution of Corporate Social Responsibility (CSR) to improving the economic and social profile of mining communities in South Africa

Abstract

Corporate Social Responsibility (CSR) includes many elements. Among them, the uplifting of communities is the most common one. The context for this consideration of CSR is the unrest and discontent in the communities surrounding companies carrying out mining operations in South Africa. Desktop evidence is considered to show how mining companies affect surrounding communities in which they carry out their activities under the banner of CSR. A number of communities close to South Africa mines are confronted with socio-economic issues of poor health, including poverty, unemployment and housing inadequacy. These socio-economic problems are some of the reasons that contributed to the mass strike action that hit the Rustenburg platinum belt on the 16th of August 2012. The hypothesis of this treatise is that this strike was in part the failure of CSR. The drive of this research was to critically review the exercise of CSR by selected mining companies, and the impact they had on socio-economic challenges facing surrounding communities. The following research questions were addressed by desktop analysis: What are the socio-economic challenges facing the mining communities surrounding the mines? What are the sustainable development opportunities for the mining communities? What are the steps taken by South African mining firms to address these challenges and opportunities facing the communities? A qualitative method was used to address these questions. It is found that CSR policies can be used to overcome social and economic challenges, such as poverty, health, and education in mining communities, especially in less developed nations. However, in South Africa there is lack of commitment from the mining companies with regards to alleviating the socio-economic challenges local communities face. Due to insufficient consultation with the local communities, mining companies focus their attention on initiatives they choose. This choice may be the construction of clinics, classrooms and housing, whereas the local community may prefer they add the negative impacts on the environment as a result of mining activities, other businesses and their health. The conclusion drawn from this evidence is that the CSR practiced by mining companies operating in South Africa is inadequate. Many South African mining companies brand themselves as good corporate citizens, but have little positive and substantive evidence to show for their CSR efforts. It is recommended that there be greater accountability and involvement of the communities in CSR programs designed and implemented by mining companies operating in South Africa.