ASSESSING CORPORATE SOCIAL RESPONSIBILITY AND SUSTAINABILITY OF MINING COMPANIES IN THE EAST AKIM MUNICIPALITY

Abstract

The activities of small scale mining (SSM) companies have come under great scrutiny in Ghana due to bad public image and perception, threatening the sustainability of the sector. The study therefore assessed the extent of corporate social responsibility (CSR) and sustainability adherence by SSM companies operating in the East Akim Municipality. The study further investigated the extent of CSR existence in the organizational policies of SSM companies, analyzed the pattern of CSR practices of SSM companies, ascertained the extent of CSR practices effects on the organisational performance of SSM companies and examined the extent of CSR practices effects on the livelihood of residents of the East Akim Municipality. A conceptual framework was constructed for the study based on the Pyramid Model and the Stake Holders Theory. Employing a four-stage sampling processes consisting of purposive, proportionate, accidental and systematic random sampling techniques and the use of descriptive cross-sectional survey design, 229 respondents were selected from three mining communities, three licensed mining companies operating in the communities, the Mineral Commission, the Environmental Protection Agency and the East Akim Municipal Assembly. Descriptive statistics and content analysis were employed for the data analysis through the help of statistical package for social sciences (SPSS) version 21. The study discovered that all the studied mining companies incorporate some level of CSR practices in their operations, even though only one company has written document guiding its CSR practices. The study recommends that the Government through a Legislative Instrument (LI) should empower the District Assemblies to undertake the processing, issuance and renewal of small scale mining license. This will encourage many miners who refuse to go for operating permit because of delay in issuance and bureaucracy to do so, thereby helping to better regulate the sector.