The Corporate-Led Stake-Fund Innovation as Alternative Policy Framework for the Mining Sector in the Global North and Global South: A Case Study of Four Large-Scale Mining Companies in USA and Ghana.

Abstract

Corporate Social Responsibility (CSR) has been scholarly discussed from the perspectives of zero-sum (cost) and positive-sum (profitability) to business in the mining sector. The study explored stakeholders’ experiences of CSR initiatives during production and post-mining life in the host communities, CSR funds (CSRF) mechanisms, its governance and management structure, and multistakeholder co-created funds, and co-management as alternative innovation model for community led-development to the traditional CSR approach notable in the sector. The research study used a qualitative approach, without human subjects interview, based on secondary materials and case studies of four large-scale mining companies from the Global North and Global South - Resolution Copper Mining (USA), Nevada Gold Mines (USA), Newmont Ahafo Gold Mine (Ghana) and AngloGold Ashanti Obuasi Mine (Ghana) - to gain understanding of the larger social phenomenon. The study identified lack of multistakeholder co-created funds and co-management policy framework in the mining sector; mining companies are sole CSR funders of community foundations and trust funds; variability of CSR funding, governance and management mechanisms; gaps in the structured participatory governance and management mechanism partly due to vertical power dynamics obliquing transparency and accountability; government incentives and establishment of trust funds as a permitting condition drive CSR and sustainability practices; voluntary CSR approach being adopted in Ghana and USA; stakeholder value approach as business sustainability case, environmental and social harm; strong stakeholder engagements and grievance mechanism impact mining companies’ CSR and sustainability practices; and mining companies’ alignments with applicable national laws and international standards which are fragmented and loosely enforced. Recommendations were made for the industry stakeholders for considerations to address the CSRF limitations with an alternative policy model..