Perry
CSR is an acronym for
Corporate Social Responsibility
In the context of developing countries, what critical non-economic requirement does CSR help extractive firms acquire and maintain to continue their operations successfully?
Social License to Operate ( defined as the trust and approval of local stakeholders, necessary to gain legitimacy and support to operate)
This type of old CSR approach focused mainly on one-sided giving rather than mutual development with communities.
Philanthropy-based CSR
What country is the focus of Osei-Kojo and Andrews’ study on CSR and extractivism?
Ghana
According to Osei-Kojo and Andrews (2020), CSR in Ghana’s extractive sector is closely tied to this industry, which plays a major role in the country’s economic development.
Mining industry
Amount made by Mine Investments in Ghana (%)
60 - 90%
What are the two types of responsibility that typically receive the highest emphasis from corporations, often reflecting a strong tradition of community support and immediate needs?
Economic responsibilities and philanthropic responsibilities
CSR is shifting toward this two-sided process that focuses on long-term improvement for people living where companies operate.
Community development
Which two industries does the article examine when studying corporate social responsibility?
The mining and oil industries
This term describes the gap between what corporations claim to do through CSR and how communities actually perceive their efforts
Gap between corporate statements and community perception
Challenges communities face (name 1)
Land loss
Health issues and pollution
Conflict and violence
Lack of long-term income opportunities
Weak monitoring of mining companies
Beyond “corporate philanthropy” describe two key roles that CSR is expected to play in addressing the challenges faced by host communities affected by extractive activities
Offset irresponsible corporate actions and fostering a closer relationship between firms and communities by building peaceful coexistence
Host communities in areas such as the Lake Victoria Zone in Tanzania have used these actions to threaten extractive projects
Community-driven threats to corporate stability or disruptions to extraction operations
What is an example of a CSR activity?
Schools, Scholarships, Boreholes and Training programs
One of the “dark forces” identified by Osei-Kojo and Andrews, this issue arises when departments within a corporation clash over who should handle CSR initiatives.
Conflicts with other departmental functions
Author argues for this to be a legal requirement
Sustainable Development License to Operate
Explain the key challenge that arises when multinational corporations assume the role of providing social infrastructure ( health, education facilities..) in communities where the government is failing to deliver these services.
Making communities dependent on the corporation rather than empowering them through capacity-building.
To shift toward community-development CSR, corporations may enter these agreements with local populations and invest in education, economic support, clean water, hospitals, and COVID PPE distribution
Contracts and long-term development investments with host communities
According to the authors, what is the main research question the study seeks to answer?
What explains the gap between companies' CSR claims and community perceptions of impact?
Among the four main factors undermining CSR, this one highlights the challenge of addressing the many and often conflicting demands of local populations.
High and diverse community expectations
Author recommendation for Real Change (name 2)
Stronger government regulation
Long-term planning for mine closure
Local job and business development
Education and skills programs to diversify local economies
Explain why traditional CSR models are frequently deemed ineffective or unsuccessful in promoting sustainable community development in resource-rich regions, despite significant corporate financial investment.
The primacy of business objectives and focused on fulfilling only the most minimal ethical obligations
One major risk of corporations taking a more active role in community development is this political consequence, along with concerns about entrusting extractive companies with environmental oversight.
Potential undermining of government authority and institutional instability
Name two of the four main “dark forces” identified in the study that undermine CSR in Ghana’s extractive sector. (Any two)
Misplaced or unsupported priorities
Voluntary nature of CSR
High and varying community expectations
Lack of inclusion
In their critical reflection, Osei-Kojo and Andrews argue that the real “curse” facing African countries is not CSR failure, but this deeper historical and structural condition.
Colonial legacy and the persistence of systems ill-suited to globalization