Corporate Social Responsibility in Times of Economic Crises

Abstract

In 2006 when diamonds were discovered in Zimbabwe in the eastern province of Manicaland the country was experiencing hyperinflation, unprecedented levels of poverty, high unemployment and deterioration of infrastructure such as roads. Zimbabwe is richly endowed with mineral resources which should be ideally an important contributor to sustainable growth and economic development of which, it is not the case. The country has not benefited from the extraction of its natural resources particularly the diamonds in Marange. Multinational companies (MNCs) from China repatriated profits and diamond revenue and have not contributed meaningfully to local development. The economic crises prevailing in Zimbabwe is a challenging business operating environment which makes it difficulty to budget for CSR. The economic crisis has presented mining firms with opportunities to solve community problems through CSR. The tough economic and social environment in Zimbabwe, provides an opportunity to assess the diamond mining firms commitment to corporate social responsibility principles and values. The chapter discusses CSR opportunities and pitfalls amidst the economic crisis and challenging times Zimbabwe is undergoing using the Marange Diamond mines as a case study.