The present study sought to determine the nature of benefits accruing to rural communities from mining companies' CSR projects in Moses Kotane Local Municipality of North West Province. It was revealed that CSR projects improved water infrastructure in addition to being used to build and renovate schools and clinics.
INTRODUCTION
- Background
- Statement of the Research Problem
- Research Questions
- Research Objectives
- Theoretical Framework of the Study
- Operational Definitions of Key Terms and Concepts
- Benefits
- Corporate social responsibility
- Rural communities
- Surrounding rural communities
- Mining
- Outline of the Dissertation
This calls into question the efforts made by the mining companies to improve the socio-economic condition of the surrounding rural communities. This may explain why the nature of benefits derived from mining CSR projects is not well understood.
LITERATURE REVIEW
- Introduction
- Contribution of Mining Industry to Socio-economic Development
- Tax payments
- Employment creation
- Local procurement
- Project infrastructure
- Community investment projects
- Socio-economic Dimensions of Mining Activities
- Unemployment rate
- Demand on community infrastructure and social services
- Impact on the health of surrounding communities
- Loss of agricultural land
- Increase in demand for goods and services
- Mining Industry Corporate Social Responsibility (CSR)
- Drivers of mining CSR initiatives
- Characteristics of corporate social responsibility projects
- Corporate Social Responsibility legislative framework
- Mining Industry CSR Reporting
- Summary of Literature Review
Mining companies practice local procurement to contribute to the economic and social development of the communities in which they operate. Mining companies focus on project implementation and not on measuring and understanding the result achieved (Salazar et al., 2012).
RESEARCH METHODOLOGY
- Introduction
- Description of the Study Area
- Research Design
- Population and Sampling Procedures
- Data Collection Methods and Techniques
- Secondary data collection
- Primary data collection
- Data Analysis
- Limitation, Reliability and Validity
- Limitations
- Reliability and validity
- Ethical Considerations
The purpose of the site visits was to physically see the status of implemented CSR projects in the study area. Young people were included in the study because media information showed that they were very strongly against mining companies' failure to improve the socio-economic condition of the surrounding communities.
CHARACTERISTICS AND PERCEIVED SOCIO-ECONOMIC BENEFITS OF
Introduction
Profile of the Studied Communities
- Mothlabe community
- Sefikile community
- Ramokokastad community
- Mokgalwaneng community
They fall under the local administration of the Bakgatla ba-Kgafela Traditional Council, which controls the village. Communities of Mothlabe have been involved in a land battle with the Bakgatla ba Kgafela Traditional Council since mining began next to the village in 2008. It is one of the oldest villages, hosting one of the oldest Anglo American Union Section mining operations.
There are no mining activities taking place within the village, but they are surrounded by four operating mines, namely Anglo American Almondbult and Union Division, Pretoria Portland Cement Beestekraal and Northam platinum mines. Anglo American Almondbult and Union Section and Northam platinum mines are located approximately 45 km from the village.
Results
- Socio-demographic Characteristics of the Respondents
- Characteristics of community infrastructure CSR projects
- Community infrastructure perceived benefits
An interview with the municipality's IDP manager revealed that the type of community infrastructure CSR initiatives implemented by mining companies tends to depend on the priorities of the municipal IDP. This section examines the characteristics of four community infrastructure projects implemented through collaboration between municipality and mining companies. Community members at the study sites indicated that they were not consulted by the municipality and mining companies during project planning.
For example, some of the water infrastructure projects carried out by MKLM in collaboration with mining companies are known to have been carried out by the municipality. Communities have become increasingly concerned that mining companies are not adequately implementing community infrastructure projects to address water shortages (Ledig community leader, 28 October 2016; Motlhabe Community Leader, 21 September 2016).
Discussion
Second, community members are unhappy with the failure of community infrastructure projects undertaken to create employment opportunities. There is a belief among communities that community water infrastructure projects have benefited mining companies more than communities. The most important CSR partnership has been between mining companies and the local municipality in the local infrastructure projects.
Document analysis has shown that most of the mining companies' infrastructure projects were carried out in collaboration with the local municipality. The various community infrastructure projects implemented in each community have also led to the creation of job opportunities for the communities.
Conclusions
This is a sign that all stakeholders must play their part if the community's infrastructure is to provide the development it needs. Most of the jobs created were of a temporary nature because the jobs under the community development projects were not sustainable. However, community members employed in infrastructure projects have acquired skills that increase their employability potential.
Although mining companies implement various CSR initiatives, they often do not understand community needs and rely entirely on needs identified by local municipalities, which sometimes do not meet community requirements (Lane et al., 2015). It was revealed during the interview that some of the infrastructure projects prioritized by the mines are not what the local communities want.
Introduction
Results
- Education and training CSR activities
- Health Care Support CSR activities
- Perceived benefits of education and training CSR activities
- Perceived Benefits of Health Care Support CSR Projects
Mining companies in partnership with the North West Department of Education (DOE) have improved school infrastructure in the area. In all communities sampled, mining companies implemented education CSR projects in the form of infrastructure improvement. Mining companies funded the construction and renovation of clinics in Ledig, Motlhabe, Sefikile and Ramokokastad.
Less than 20% of household respondents from three villages, namely Ledig (18%), Mokgalwaneng (7%) and Motlhabe (0%), reported having benefited from mining companies' CSR initiatives that support health. These are believed to be the main reasons why local communities feel they have not benefited from mining companies' health CSR projects.
Discussion
Education and health CSR initiatives improved services which the mining companies say are open to all members of the communities and not just employees. Analysis of responses showed that community members are satisfied with education and health infrastructure when mining companies build it from scratch rather than renovating existing buildings. For example, the community complained about lack of medicines and needed staff in clinics refurbished by mining companies, which is the government's responsibility.
The communities are of the opinion that the mining companies should intervene in these matters to avoid that the implemented projects are unusable. Mining company officials have argued that it is not their responsibility to hire staff and provide medicine.
Conclusions
This has been observed in Ramokokastad and Sefikile, where mining companies have built clinics from scratch, and as results, more than 50% of respondents agreed that they have benefited from the projects. In communities where mining companies have renovated and expanded existing structures, the majority of respondents complained that the projects had no impact on their lives. Based on interview data, it appears that local communities would have been satisfied if mining companies built new clinics and schools.
Interestingly, the mining companies whose representatives were interviewed blamed the communities for demanding things that were not part of their responsibility. This is due to the lack of coordination between the Ministry of Health, the municipality and the mining companies.
CHARACTERISTICS AND PERCEIVED BENEFITS OF MINING INDUSTRY
- Introduction
- Results
- Characteristics of Livelihoods Related CSR Activities
- Perceived Benefits of Livelihoods Related CSR Activities
- Discussion
- Conclusions
The data collected indicates that local entrepreneurial training and support was a significant part of the mining companies' livelihood-related CSR initiatives at MKLM. Lack of transparency in mining companies' bidding system was another reason why local communities believe they did not benefit. There is documentation that mining companies at MKLM have implemented various livelihood-related CSR initiatives.
Local community members were not adequately trained to take ownership of the project and manage it without interference from the mining companies. Finally, mining companies implemented projects without consulting the local communities that are the beneficiaries of these initiatives.
PERCEPTION OF THE SURROUNDING COMMUNITIES ON CSR
- Introduction
- Results
- Respondents positive perception of mining companies’ corporate social
- Respondents negative perception of mining companies’ corporate social
- Discussion
- Conclusions
The majority of respondents expressed dissatisfaction that job opportunities created by CSR projects were temporary. The majority of respondents (55%) indicated that they strongly disagree that mining CSR projects provided local communities with entrepreneurial training and support. The results showed that local communities perceive CSR projects as not promoting entrepreneurship in the area for the benefit of society.
The construct "mining CSR projects are set up without consulting local communities" scored the highest average figure of 3.94. Almost half of the respondents strongly disagreed (22%) and disagreed (22%) that CSR projects from mining have small benefits.
COMMUNITY AWARENESS AND SATISFACTION LEVEL FROM MINING
Introduction
Results
- Community consultations on Mining CSR initiatives
- Communication and Awareness on Mining CSR initiatives
- Benefits Satisfaction
Despite the distribution of these community newsletters, many community members are still uninformed about the CSR activities of mining companies. Despite the distribution of the community newsletter to ordinary members of the Motlhabe community, almost half of the household respondents (44 %) are still unaware of any community development projects implemented by the mining companies. Combining all villages, 60% of household respondents were aware of CSR projects implemented by mining companies in their communities, while forty percent of household respondents are unaware of implemented CSR projects.
The findings showed that community awareness of the CSR projects of mining companies is still not satisfactory. The arrival of mining companies was seen as a tool for socio-economic development of the community due to the high unemployment rate.
Discussion
Conclusion
However, it was noted that two mining companies have taken initiatives to publish newsletters and newspapers to inform the local communities. Lack of awareness and poor communication and information sharing between mining companies, municipalities and tribal councils with local communities has resulted in low service satisfaction. Although this study acknowledges that while it is important for mining companies to consult with the local municipality and traditional leadership to legitimize the process, ordinary members of the community who are the beneficiaries must have the opportunity to provide input.
Introduction
The results showed that most of the implemented projects are still dependent on mining companies for survival. The respondents also indicated that the local community members who were the beneficiaries of these projects were not authorized by the mining companies to run the projects themselves. The results showed that local communities from the sampled population have a negative perception of mining CSR activities.
The findings of the study show that some community members are not aware of mining CSR projects implemented by mining companies in their communities. This study found that mining companies and municipalities have designed most projects without involving local communities.
Recommendations
According to the above summary, the objectives of this study were achieved and the study contributed to the available knowledge on the benefits of CSR projects for rural communities. The respondents' negative perception of the implemented projects shows that the local communities are not satisfied with the benefits derived from the projects. Local communities should be allowed to determine the projects to be implemented in their communities.
Due to the limited awareness among the rural communities of MKLM about the benefits that can be obtained from CSR projects, the mining companies and the local municipality are making more efforts to educate and inform about the positive impact of CSR initiatives. Mining companies should also consider CSR projects that will enable local communities to reduce community dependency. e) Monitoring and evaluation of CSR projects should be carried out.
Limitations of the Study
- Recommendations for Further Research
The Changing Role of Governments in Corporate Social Responsibility: Drivers and Responses Business Ethics: A European Overview. No more sunscreens, please': Experiences of corporate social responsibility in remote Australian mining communities. Corporate social responsibility activities of mining companies: The views of the local communities in Ghana.
Available from: http://www.ai.org.za/wp-content/uploads/download/2011/11/No-15.- Mining-and-Corporate-Social-Responsibility.pdf. THE BENEFITS THAT THE RURAL COMMUNITIES RECEIVE FROM THE SOCIAL RESPONSIBILITY PROJECTS OF THE MINING INDUSTRY CORPORATION IN THE LOCAL MUNICIPALITY OF MOSES KOTANA OF THE NORTH-WESTERN PROVINCE.
