Corporate social responsibility in gold mining, a model for Klerksdorp gold mines

Abstract

This research study is an investigation into Corporate Social Responsibility (CSR) in the mining sector and the contribution by the mining organisations towards the social development of the communities in the Klerksdorp area. CSR is a global phenomenon and has different implications for developed and developing economies. In South Africa, CSR is driven mainly by the government towards economic redistribution of resources mostly to previously excluded groups by the apartheid regime through different pieces of legislation. The purpose of this research study is to assess the role CSR activities in gold mines in the Klerksdorp area by examining CSR awareness, purpose, implementation gap and impact. A qualitative research method that employed purposive and snowball sampling techniques were applied in selecting a three-tier sample of managers (decision-makers), employees (decision-implementors) and community leaders (beneficiary representatives). Data was collected from the sample using semi-structured interviews and subjected to thematic analysis. The data coalesced into four relevant themes of CSR: awareness, purpose, implementing gaps and impact. CSR awareness among stakeholders of the gold mining companies in Klerksdorp was found to be very low skewed in favour of the decision-makers in companies. CSR construct remains relevant with a purpose to create harmony and sustainability between the company and the community from which it operates. The policy approach by mining companies that relies on budgets and funding CSR from profits is not consistent with the strategic role of CSR. The community expectations and needs cannot be budgeted accurately, so funding CSR from remnant profits sends an adverse after-thought signal. A gap is, therefore, inherent in the current policy prescriptions for CSR. Little positive impact has been realised by both the mining companies and the community in Klerksdorp. A three-step CSR framework is recommended to develop CSR awareness, repurposing CSR activities and closing CSR implementation gaps towards attaining the ultimate goal of delivering impact and value to the company and the community.