The Socio-economic Impact of Corporate Social Responsibility on the Zimbabwe Mining Industry

Abstract

The purpose of this study is to analyse the implementation of corporate social responsibility programmes by Marange mining companies to determine whether they mitigate negative social and environmental impacts and contribute to sustainable development in the communities in which they operate. Miners can become good corporate citizens for their stakeholders, communities and societies by adopting the concept of corporate social responsibility which has emerged as an increasingly crucial concept globally and has become an important part of the debate on sustainability. This study makes an important contribution to understanding of the Marange Diamonds corporate social responsibility (CSR) case study. Content analysis research methodology was adopted for this study. The contents of websites are examined since, being private, the companies are under no obligation to publish annual financial statements. Analysis is based on the impact of CSR and mining activities on quality, income (economy), education, and health of the communities. Several areas of CSR are open to diamond miners; these include ethics, law, employee health and safety, the environment, education, philanthropy, and economy. The study also demonstrated that challenges also exist in these areas: economic responsibility; employee health and safety; recruitment of qualified lecturers; legal responsibility; environmental responsibility; philanthropic responsibility; and ethical responsibility. The conclusion of this study is that mines in Marange in eastern Zimbabwe failed to take advantage of opportunities presented by CSR to manage both risks and their images as catalysts of sustainable development. Further conclusions are that CSR activities that temporarily satisfy short-term needs are to be avoided; CSR should include community participation to achieve adoption Miners should be proactive in identifying the nature of communities they move into and the dynamics arising therefrom and finally, CSR activities must be reported to avoid misunderstanding and to gain trust of all stakeholders.