Mining Sector Csr Stakeholder Management: A Case Study of Chirano Gold Mines Limited, Ghana

Abstract

The concept of Corporate Social Responsibility is increasingly becoming popular in the 21st Century in both business and academic circles. In response to heightened global awareness of environmental sustainability and stakeholder rights, social legitimacy has become the bedrock for business survival, profitability and growth. This study sought to examine the stakeholder management approach practiced by the Chirano Gold Mines Limited in the Western Region of Ghana. The qualitative case study approach was employed for the study. The study purposively selected forty-two (42) key informants including officials of CGML, selected chiefs, selected officials of two regulatory bodies, and community members. The main instrument for primary data collection involved face-to-face in-depth interviews. The study found out that though CSR practice is not mandatory, it is required and desirable. Chirano Gold Mines Limited has Institutional arrangement for stakeholder engagement in CSR through the establishment of a Community Consultative Committee headed by a chief and Trust Fund Board. The company adopts a stakeholder engagement approach, involving three key strategies, which has prevented any potential confrontation from community members. The active involvement of stakeholders in CSR projects has rendered the mining environment a very congenial atmosphere to operate unlike other mining areas associated with rampant confrontation. Again, through the collaborative processes, the company has resolved various outstanding issues amicably which makes the community members wish the operations of the company prolong its operations in the area. In spite of the successes chalked in engaging community members in CSR activities, the study observes few challenges especially, the unavailability of NGOs and media to serve as referee in the process engagement process. From the preliminary findings of the study, the study concludes that effective stakeholder engagement in carrying out Corporate Social Responsibility provides a working relationship between mining companies and communities which provides the necessary platform to operate without major hindrances. There is a need to educate community members on activities of the company and to advocate the establishment of local NGOs and Media to facilitate the stakeholder engagement processes.