The execution of corporate social responsibility strategies for "community" benefit: A case study of the South African mining industry and host communities in King Cetshwayo District (KwaZulu-Natal)

• Main Author: Mbanjwa, Fani Lucky
• Other Authors: Sarr, Mare
• Format: Dissertation
• Language: English
• Published: University of Cape Town 2017
• Subjects: Development Finance
• Online Access: http://hdl.handle.net/11427/25171

The mining industry in South Africa has been involved in communities for many decades. Mining companies found themselves in the 'spotlight' for the conditions linked to the migrant labour system they adopted. Similarly, it is important to note that mining in South Africa is the major contributor to the GDP and plays an important role in economic growth and community development, given the country's legacy of mineral resources. To deal with the negative perception of mines, the mines responded by trying to mend their tarnished images through engaging in various CSR-linked initiatives, although such initiatives are seen as mere philanthropic acts by the affected communities; in this case, the Dube, Mbonambi, Mkhwanazi and Sokhulu (DMMS) communities in Richards Bay, KwaZulu Natal. Consultation needs to begin before any mine development takes place, not after the mine has begun operating, which is often the case. The persistent problems within the Richards Bay Minerals (RBM) vicinity are viewed by the DMMS communities as those that the company gives salience to without consideration of the communities' needs. Genuine CSR policies must be implemented and be updated according to needs of the surrounding communities, to avoid bias and to be seen to be doing well to the community while in actual fact the programmes are not sustainable. The research which was conducted using a qualitative methodology had a total of 16 respondents taking part. The study was conducted using the interview technique. Some of the key findings included that fact that respondents were unhappy with the numbers of community members who were employed at RBM's mining operations. The community members also felt that the mining company had not invested adequately in community projects. In order to address the challenges the company is facing with the DMMS communities, some of the respondents suggested that job opportunities should be awarded to the communities on a proportional basis depending on the size of the community. The respondents also suggested that more people from the host communities should be given jobs at RBM. Some of the recommendations that have been made in order to address the challenges RBM has been facing with its host communities include conducting a study in order to understand the host community better in order to better structure its CSR projects aimed at benefitting the DMMS communities. The other recommendation is frequent engagements with the community members regarding CSR project plans.