Globally companies have been operating in communities and as a result, a variety of strategies have been initiated by the organizations aimed at addressing community’s needs, the environment and corresponding business requirements. These organizations’ operations have significant impact on societies and the natural environment, due to their impact they are being called upon to take Corporate Social Responsibility (CSR).  Corporate social responsibility (CSR) has grown in significance and has been a subject of debate since the 1950s [1]. The concept of CSR has varied definitions both in theory and in practice [2]. Carroll provides a wider view of the concept by defining it as “the conduct of a business so that it is economically profitable, law abiding, ethical and socially supportive.  According to Ismail CSR is the strategies corporations or firms conduct their business in a way that is ethical and society-friendly which means, it involves a range of activities such as working in partnership with local communities, socially sensitive investment, developing relationships with employees, customers and their families, and involving in activities for environmental conservation and sustainability [1]. Ocran (2011) see CSR more specifically business identifying its stakeholder groups and incorporating their needs and values within the strategic and day-to-day decision-making process.  To him companies integrate social and environmental concerns in their business operations and interact with their stakeholders on voluntary basis. Corporate social responsibility concept is also seen as a social contract between organizations and the communities in which they operate according to [3, 4]. CSR in Africa recently gained heightened interest due to high levels of inequalities and poverty among countries challenged with sustainable development [5, 6]. In these countries, CSR has become intensified among local communities and the general public. CSR is gaining momentum among organizations in poor countries [7] and increasingly in African contexts and enterprises [5] partially due to social legislation that is apparently less comprehensive and poorly enforceable. CSR in Africa is critical and controversial [8]. Critical due to the magnitude of expectations for business, unique ways different societies express the relationship between business and society, then controversial because those who have thought deeply about why businesses exist or what purpose they have within society do not agree on the answers. Diverse conceptualization and operationalization of CSR in Africa has led to concept abused misunderstood and misused because of plethora of CSR synonyms such as corporate responsibility, corporate accountability, corporate ethics, corporate citizenship, sustainability, stewardship, triple bottom line, corporate governance, social and environmental obligations, corporate social investment and responsible business etc.  In African regions and countries, the level of economic and social development greatly influences the nature and form of CSR. Earlier studies on CSR generally have provided little attention to African unique situations [9, 5]. Looking at CSR in the context of Africa, the concept can be defined as commitment of organization/firms to economic, social, legal and environmental rights, and responsible outcomes for sustainability. In Ghana, the concept is seen as building capacity for sustainable livelihoods, respecting cultural differences and finding business opportunities in building the skills of employees, the community and government [10] and CSR activities are spearheaded by large scale multi-nationals such as large scale manufacturing, telecommunication and mining companies specifically MTN, Valco, Newmont, Goldfields, Samartex and AngloGold. In exploring the nexus of CSR and its influence on local development, a discussion on community engagements and participation becomes eminent [11]. Highlight the gap between corporate programmes and local needs and further asserts that programmes without appropriate mechanisms to integrate grass root participation will struggle to meet local needs. Frynas in addressing the reasons CSR initiatives fail to meet needs of communities identifies lack of participation in community development projects, a “top-down” orientation that characterises the formulation of CSR initiatives and the lack of broad consultation [12]. In the Ghanaian context, corporate social responsibility is growing in the mining industry, with a significantly greater section of the gold mining industry engaged in some form of CSR [13]. Indigenes of mining communities have often felt exploited by mining corporations [14, 15) because the required benefits of mining have not been handed back to the community [16]. It is in this light that this research seeks to contribute to the growing body of knowledge and explore the local communities’ needs of the people in the Birim North Districts, a mining area in the Eastern region of Ghana.

Corporate social responsibility is referred to as pro-social corporate endeavours [17] or corporate social performance [18]. It has traditionally been conceptualized rather broadly as the managerial obligation to take action to protect and improve both the welfare of society as a whole and the interest of organizations [19]. CSR practice has received wide acceptance in society and the corporate world, as a way to conduct business [20]. This places an obligation on corporations to undertake initiatives that yield socially desired objectives.  CSR has changed over the years to bring more relevance in the decision making of corporations, due to the heightened demands of society on corporations to be more responsible. Stakeholders have considerable accessibility to information and information sharing through different media on the activities of corporations. This situation has increased the demands of stakeholders on corporations to be more socially responsible, especially in an era where market growth is faster and stakeholders possess the flexibility and mobility to move between different firms [21]. “Negative CSR associations can have a detrimental effect on overall product evaluations, whereas positive CSR associations can enhance product evaluations" [22]. According to Archie [23] a firm’s pyramid of CSR starts with economic responsibilities and continues with legal, ethical, and discretionary responsibilities respectively. However, what was ethical or even discretionary in Carroll’s model is becoming increasingly necessary today because of the changing environment within which businesses operate and because the ethical responsibilities are more likely to stand on a par with economic and legal responsibilities as fundamental for business success [24]. The principles of CSR were based on accountability, transparency and sustainability. CSR involves strategies adopted by communities to demand corporate accountability [25]. This rests on the premise that a proper engagement of various stakeholders is a panacea to the success of community-based plans for corporate accountability. Frynas is of the view that accountability goes beyond making unfulfilled promises. CSR requires commitment to accountability by all leaders, individuals, organizations, stakeholders, customers, and community members [12]. A variety interconnected factors affect the efficacy of corporate accountability. These intertwined relationships and its link to accountability are represented in the work of Dolan [26]. Whellams [27] identified that CSR initiatives are mainly in the form of education, health, sanitation and quality of life. According to [27], CSR has a generally desirable effect on the affected communities. In Ghana [28] asserts that organisations are involved in various types of CRS in the areas of education and sponsorship of events, however he notes the absence of a comprehensive framework that define the boundaries of CSR activities in Ghana. Corporate management seem however to be shifting focus from corporate philanthropy to activities that meet the diverse needs of host communities. Furthermore [29] note that CSR projects which are premised on the provision of education comprise the dominant form of CSR activity in Malaysia. This ranges among others from student school enrolment to schooling expenses. Corporate social responsibility research in Africa in general is limited [30]. In Ghana, variety of policies, laws, practices, and initiatives exist to provide a framework for corporate social responsibility, but no comprehensive corporate social responsibility documents or policies are present in the country [31, 32, 14]. Studies regarding corporate social responsibility in Ghana, suggest that management and organizations play a key role in either corrupt or ethical business practices [33, 34]. The indigenous community and organizations needed to partner to integrate corporate social responsibility within social exchange of Ghanaian industry [30]. According to Kuada and Hinson [35] local organizations are motivated by social considerations for the community, consistent with social exchange theory. The environment of Ghana may influence corporate social responsibility practices. Andrews [30] assessed the presence of a gap in Ghana between industry stakeholders including the transnational companies, the domestic government, and the indigenes benefiting directly from the resources. Corporate social responsibility may provide an avenue through which to address this gap [30, 33, 36] suggested, corruption within the system may influence corporate social responsibility initiatives. Typical situations in which business ethics are challenged in the Ghanaian economic sphere included (a) when an organization applied for business information and permits; (b) when an organization competed for business contracts and financing; and (c) when an organization dealt with tax authorities [36, 37] assessed the corporate social responsibility activities among four Ghanaian organizations namely, two cocoa bean exporters, one multinational mining organization, and one large multinational bank. In all, 81 senior and middle-level employees in the head offices of the organizations participated by responding to the survey. The analysis revealed several insights regarding corporate social responsibility in these Ghanaian organizations. The majority of participants (74.07%) noted their organization had a corporate social responsibility policy in place, but only 55% noted the policy was very effective [33]. Approximately 17% of participants noted the policy was either somewhat effective or not effective. Many participants (69.16%) noted management played a key role in promoting corporate social responsibility, with important management activities including allocating funds (49.83%), implementing projects (24.36%), ensuring positive outcomes (12.35%), developing corporate social responsibility plan (8.87%), and motivating staff to participate in corporate social responsibility activities (5.49%) [33]. More than half of participants noted the allocation of funds to socially responsible behaviors. Policies were insufficient and 24.47% of participants noted corruption and mismanagement existed regarding corporate social responsibility funds. A gap in Abugre’s [33] is that participants were members of the organizations living in the largest city in Ghana, rather than indigenes of mining affected communities, who might have more knowledge about the effects of corporate social responsibility initiatives in these industries, especially the mining industry. Extending Abugre’s [33] findings, Abugre and Nyuur [37] conducted a study among a larger variety of organizations in Ghana. In total, 300 managers were randomly selected, both foreign and local. Organizations were private and public, and spread across multiple business sectors. Abugre and Nyuur’s [37] findings were slightly more positive than Abugre’s (2014) regarding the picture of corporate social responsibility. For example, 90.2% of participants reported their organizations were committed to corporate social responsibility. Among private companies, responses of “very committed” (28.52%) and “somewhat committed” (21.25%) comprised a larger percentage of responses (49.77%); than within public companies (40.43%; “very committed” 27.48%; “somewhat committed” 12.95%); wherein the government owned more than 51% of shares [37]. Common corporate social responsibility activities included providing resources, such as financial assistance and buildings, to the communities, employing indigenes, sponsoring programs, offering scholarships to students, making quality products, increasing shareholders’ profits, undergoing ethical operations, and following regulations on their industries. In Abugre’s [37] study, employees noted that managers were often corrupt or inept in their corporate social responsibility efforts. Local and foreign firms may also have significantly different motivations that make the understanding of corporate social responsibility problematic within Ghana [35]. Kuada and Hinson [35] analysis on foreign and local companies in Ghana, on whether locality influenced corporate social responsibility practices revealed that foreign firms emphasized the economic outcomes of their corporate social responsibility activities more than local firms. However, the results did not provide clear evidence of significant differences in the corporate social responsibility actions of local and foreign firms. Motivation for foreign firms also differed, suggesting that foreign companies completed corporate social responsibility primarily because of legal requirements, whereas local firms considered social implications more in their decision-making [38]. The socially oriented corporate social responsibility practices of the local firms were consistent with cultural expectations in Ghana; expecting those with extra resources to support the less privileged members of the society [35]. Solomon [15] recommended that, indigenes as members of managerial staff could help propel corporate social responsibility activities in the mining industry.

To establish institutional stakeholders’ influence on corporate social responsibility practices, Quartey and Quartey [34] used multiple embedded case study analysis and interviewed 30 Ghanaian managers in high-risk industries. Results revealed that institutional stakeholders influence managers’ understanding of corporate social responsibility practice [34]. This influence altered how high-risk industries measure corporate social responsibility to meet their stakeholders’ expectations in corporate organizations. The attitudes of investors in the organizations fundamentally swayed managers’ perceptions of corporate social responsibility, and beliefs in turn affected corporate social responsibility practices within the organization. Because corporate social responsibility initiatives from within the organization are most effective, according to Andrews [30], and because managers have significant influence on corporate social responsibility behaviors [33], Quartey & Quartey’s [34] research revealed that potential perceptions of corporate social responsibility interfering with profit could hinder corporate social responsibility within Ghanaian industries, such as gold mining organizations.

Andrews [30] recommended that targeting the community and locally run companies may be the best avenue for increasing corporate social responsibility compliance. Andrews [30] qualitative study in April 2011 on assessing individuals living in Cape Three Points in the Western Region of Ghana regarding their expectations and perceptions from the oil find and organizations’ corporate social responsibility revealed that, the wealth of the oil reserve were a huge socioeconomic blessing. Andrews [30] argued for corporate social responsibility as a grassroots-oriented process, noting that corporations whose work affected the surrounding communities had a crucial responsibility toward these communities. The findings of the study suggested corporate social responsibility initiatives could benefit immensely from organization and citizen led grassroots efforts towards corporate social responsibility.

Sackey et al. [36] analysis on secondary data obtained from two streams of interviews conducted in Ghana from July to October 2009 and January to February 2011 among a wide range of businesses established that one of the reason why the mineral authority and resources commission were unable to regulate the operations of some small-scale mining operations was lack of available information about the companies. According to Sackey et al. [36] this lack of information could be one of the reasons why some of the companies do not commit to some of the corporate social responsibility regulations in the country. Sackey et al. [36] recommended that additional protocol is needed to check the fulfillment of the various existing corporate social responsibility regulations in Ghana. Sackey et al. [36]’s solution would most likely be effective for foreign companies based on the legal motivation, as revealed in Kuada and Hinson’s [35] research. For local companies, understanding the benefit to the community may be enough, but companies may perceive that corporate social responsibility would interfere with the profitability of their organization. The corporate environment in Ghana is very diverse.

Macconachie and Hilson [11] identify the gap between local needs and corporate programmes. They further observed that the objective of CSR interventions has shifted towards the pressure of yielding to global performance standards leading to undesirable developmental outcomes which cause further fragmentation and inequality at the local level. They further note that though CSR has and continues to receive much scholarly and corporate attention and expenditure, there is not sufficient evidence to suggest that CSR actually yields substantial benefits to the host communities. Again Banks et al, (2013) in a community development study of communities around four large mines in Papua New Guinea, observed CSR programmes as inflexible and mostly without any bearing on the needs of its intended beneficiaries; and as a result, inefficient in its capacity to enhance human development. 

They therefore suggest that corporations should pursue greater involvement in project identification, design, monitoring and evaluation in their pursuit of community development. They also observe that CSR in Papua New Guinea was characterised by a top-down orientation mainly motivated by corporate decisions and was highly disconnected from the needs of communities in the mining affected areas. They conclude that locally formulated community led initiatives were more likely to yield substantial benefits to local communities. Mutti et al [39] note that the implementation CSR stifles the capacity of local communities to utilize their knowledge and skills to prioritise their own needs. This results in poor understanding of the local context and reinforces the view that CSR has little effect on reducing poverty and improving environmental management; and as a result, CSR has little effect on community welfare. They conclude that CSR programmes are far removed from local community interest and fail to utilise community inputs.

The study was conducted in Birim North District of the eastern region of Ghana in 10 communities namely; Ntronang, Afosu, Adausena, Obohemaa, Mamanso, Old Abirem, Amanfrom, New Abirem, Yayaso and Hweakwae (Figure 1).

Figure 1: A map of Ghana showing the study communities (Ntronang, Afosu, Adausena, Obohemaa, Mamanso, Old Abirem, Amanfrom, New Abirem, Yayaso and Hweakwae).

This District was carved out from the former Birim District Council in 1987. It shares borders with Kwahu West Municipal to the North, west by Asante Akyem South and Adansi South Districts; south by Akyemansa District, and to the east by Atiwa and Kwaebibirem Districts. The district has a population of 78,907 which represents 3.0 percent of the region’s total population [40]. The District has large deposits of gold in the Southern part around Ajenjua Bepo surrounded by Ntronang, Afosu, Adausena, New Abirem, Yayaso and Hweakwae communities. Annually, it is estimated that an amount of 500,000oz of gold will be mined over the next 15 years with an 8.5Mtpa processing plan [41]. A mixed method was employed for the research since it examines communities’ needs and CSR payments. The benefit of the mixed methods lies in the fact that it appropriately eliminates the biases inherent in other methods and thus offers triangulation as a means of seeking convergence across qualitative and quantitative methods [42]. To address the research questions, the case study approach was used to draw insights from community stakeholders of Birim North and the Newmont mining company which operates within this community. The case study focused on the mining affected communities of the Birim North district whose livelihoods have been impacted by mining operations and seeks to build insights into their needs and their level of satisfaction with the outcomes of CSR payments.  Survey research design was used to discover the inter-relationship between variables. Questionnaires were used to gather information from respondents and also semi-structured interviews were conducted for key stakeholders. An interview guide was designed to generate predetermined questions that adequately satisfy the demands of the study. Again, data obtained from inhabitants through field survey provided useful assistance in gaining further insights into the social dynamics of the study communities.The population for this study included all the ten (10) beneficiary communities and two hundred (200) respondents were selected from the ten (10) beneficiary communities using simple random sampling for the quantitative study involving the use of questionnaire. Due to the careful selection process, the study sample represents the overall population required for the study. Ten (10) Focus Group Discussions (FGDs) were conducted in the ten major mining areas on specific issues. Each group was made up of five (5) to eight (8) people, totaling seventy-five (75). Further, a total of 25 representatives of stakeholder groups were selected for the key informant interview using the purposive sampling techniques (10 chiefs, 5 respondents from NMGL and 10 respondents from the Birim North District Assembly). In all, a total of 300 respondents were sampled for the research.

Demographic Characteristics of Respondents

Out of the 200 beneficiary communities’ total respondents for the study, 57% were males whiles only 43% of them were females. Among these respondents, 50% of them were single, 45.5% were married, 2% divorced and 2.5% widowed. The modal age class of the survey was youthful ranging from 30-40 representing 45.5% of the respondents (Table 1).

Table 1: Demographic characteristics of respondents.

Source:  Field Survey, (2018).

CSR Payments by the Mining Company (Newmont)

From the key informant interviewed from the mining company disclosed that education, health, agriculture, water and sanitation, enterprise development, livelihood programs and infrastructural developments were the main mining company thematic areas in the CSR frameworks.  It was noted that there were standing committees that meet at regular intervals usually quarterly and annually on CSR investments. The areas of investment considered in such meetings included educational infrastructure, health infrastructure, water and sanitation, livelihood programs among others. These were the broad thematic areas enumerated by the mining company as their CSR frameworks and funds committed annually.  In all these, both District Assembly and beneficiary communities were not left out signifying that the District Assembly will thrive to ensure the sustainability of such projects because it complements its effort in the provision of these facilities. Also, a sense of ownership of the CSR projects is assured by both District Assembly and beneficiary communities.

Beneficiary Communities’ Needs

Study communities stated their needs include employment opportunities (32%), educational and health facilities (30%), quality road networks (16%), community library (12.5%), teachers’ quarters (5.5%) and portable drinking water (4%) (Figure 2).

Figure 2: shows communities’ needs.

Participants during FGD were of the notion that, some of negative environmental conditions such as land degradation, air and water pollution, vibration from blasting, solid and liquid waste disposal etc were a threat to the ecosystem and livelihoods of the communities and if care is not taken, ecosystem sustainability will not be achieved.

The Extent to Which CSR Payments Have Met the Needs of Communities

More than half of the total respondents revealed that, CSR payments have satisfactorily met the needs of affected communities where only 47% also stated that these payments have highly satisfied their needs. Only 2% of the respondents indicated that CSR payments to communities have not satisfactorily met their needs in any way. Among the communities, respondents from Obohemma, Mamanso and Ntronang all revealed that payments have met their needs in a small extent. A 9×3 contingency chi-square tests between study communities and the extent CSR payments have met community’s needs showed statistically significant relationship (x2 = 44.596a ; df = 16; p = 0.000 for n=200). The implication is that; respondents feel that CSR payments have adequately met their needs (Table 2).

Table 2: Cross tabulation of study communities and extent CSR payments have met the needs of the communities.

Source: field survey, (2018), n=200, p=0.05.

Furthermore, in terms of resettlement, it came to light during FGD that, affected individuals have become poor because the areas offered for resettlement is unable to support their livelihoods. This sentiment was premised on the notion that the initial payment packages appear attractive. However, payments lacked the capacity to ensure

The long term up keep of beneficiary families. One participant indicated that;

“Initially when we look at the building and the environment you are happy about the resettlement but when we moved in and started confronting the problem of how to sustain our family and that everything must be paid for, then you begin to feel disappointed” (Participant FGD, Yayaaso, 2018).

Again, according to participants in Focus Group Discussion (FGD), monies allocated to the Traditional Authorities (TA), Chiefs and the District Assembly (DA) from the Mineral Development Fund (MDF) are not used for the intended purposes. DA claims that they are governed by the local government laws and cannot be compelled by anyone in terms of usage of the monies for specific purpose such as developmental activities in the affected mining areas. Also, in registering discontent with the use and management of mineral royalties some FGD participants felt mineral royalties were paid as bribes to buy the silence of the District Assembly over certain perceived infractions. Further, another participant during the FGD commented on the use of royalties that,

“mineral royalties are free monies used by the assembly to cover up issues; used to satisfy political motives but not to benefit people affected by mining activities” (Participant FGD, Adausena,2018).

Gender of Respondents and the Extent to Which CSR Payments Have Met the Needs of Communities

The 2×3 cross tabulation and contingency chi-square tests between respondents’ gender and the extent to which CSR payments have met the needs of communities reveals that, there is a significant relationship existing between gender and respondents’ perception about the needs of the communities (X2 = 8.564a ;   df =4; p = 0.014 < 0.05 for n= 200). The result indicates gender is important in determining the extent to which CSR payments meet communities’ needs (Table 3).

Table 3: Cross tabulation and Chi-Square test on Gender of respondents and the extent CSR payments have met the needs of communities.

Demographic Characteristics of Respondents

The high percentage of male respondents was mainly because of the fact that the males were the majority of heads of the households. Active involvement of men in the study indicates that males are seen mostly in the forefront of local development. Furthermore, it can be concluded that majority of respondent fall within the youthful age bracket which also constitute the economically active section of the population. This therefore suggests that their livelihoods are most likely to be adversely affected by the activities of extractive industries.

CSR Payments by the Mining Company (Newmont)

From the data gathered from the interviews conducted on CSR payments by the company revealed these broad thematic areas (education, health, agriculture, water and sanitation, enterprise development, livelihood programs and infrastructural developments) as the company’s CSR frameworks. This buttresses what Abugre [33] revealed that most organizations have their corporate social responsibility payments policy in place. The above thematic areas of the CSR framework as identified by the mining company is seen as thus of great importance if pursued with all the attention and dedication.  As noted by MMSD [43] the activities of mining companies cause social tension, resulting in damage to livelihoods, environment and community and land title disputes among others that should at least ameliorate the consequent effects of the mining activities on the socio-economic wellbeing of the people in the District.

Beneficiary Communities’ Needs

Data gathered from respondents indicated that the most pressing needs of the beneficiary communities constituted employment opportunities, health and educational infrastructure. Vibration from blasting resulting in cracking of buildings and, generation of a lot of noise; presented various threats to communities and especially because of processes they go through in order for the company to address their issues. It was realised it takes a lot of time for the company to assess the cost of the damage and even when the damage has been assessed; company undertaking the necessary action to remedy the problem constitute another significant delay. This supports the views of Ofori and Ofori [44] that identify some mitigating factors confronting mining affected communities to include mining related diseases, conflicts, increasing unemployment, noise pollution, land pollution, water pollution, destruction of eco-system and other social menace like prostitution.

Further, the apparent demand for employment opportunities is stressed by Obara and Jenkins [45] in their study that explains the limited ability of mining firms to generate enough employment opportunities in host communities. This is attributed to the highly mechanized nature of the mining industry which creates little space for human labour. According to Frederick, (2006) businesses have a responsibility to concentrate efforts in ten major fields: economic growth and efficiency, education, employment and training, civil rights and equal opportunity, urban renewal and development, pollution abatement, conservation and recreation, culture and the arts, medical care, and government relations.

Extent to Which CSR Payments Have Met the Needs of Communities

Results of the study show a significant relationship between CSR payments and community needs. However, majority of respondents indicated that the payments of the mining company have met the expectations of the beneficiary communities to a very small extent. Furthermore, issues of compensation and resettlement were identified during the Focus Group Discussion and participants were of the view that the mining company gave insufficient compensation to affected individuals in the mining communities which has rendered most of these people much impoverished as a result of low-paid compensations.

The findings suggest general satisfaction of communities with CSR payments however in the specific area of resettlement packages; there is high discontent with what they receive from mining companies. This gives an indication of the extent of dissatisfaction participants had concerning insufficiency of CSR payment. Again, a lack of regulation concerning how monies allocated to institutional stakeholders i.e. DA’s and traditional authorities should be applied has left the application of such funds to the discretion of these institutional stakeholders who in the view of the respondents tend to misapply these funds This underscores the lack of regulation on the specific use of mineral royalties and thus creates room for unfavourable discretional powers in its disbursement. These findings are in line with the views of Mutti et al. [39] who take a skeptical position on the implementation of CSR and describe it as patronising and paternalistic.

Haalboom [46] affirms these findings when he notes the uncertainty surrounding the capacity of CSR to adequately address the gab of social and environmental concerns as the investment of multinational mining in developing countries increases. Erzurumlu and Erzurumlu [47] in a Central American gold mining case study emphasise the importance of designing community development projects that calls for the involvement of communities from the beginning of extractive projects. They share the view that current efforts at community development have been fruitless because of community’s lack of participation in decision making. In their model they advocate the recognition of vulnerable groups, a design approach with focus on the people, and other factors including community engagements, and a collaborative monitoring and evaluative process.

This study investigated local community’s needs and corporate social responsibility payments from large scale gold mining company in Birim North District, Ghana. It was revealed the ultimate need was employment followed by educational health facilities, quality road networks, community library, teachers’ quarters and portable drinking water. Also, the study in assessing the ability of CSR payments to address community needs showed that more than half of community respondents believed payments have met communities’ needs to a very small extent.

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