The Study Of The Differences In Behavior And Performance Of Corporate Social Responsibility:Evidence From The Mining Industry In Ghana

The research has sought to move the discussion from the why aspects to aligning the why with the what/how aspect of CSR. Thus in order to provide vital information for the mining Industry and the government of Ghana to assist in developing a sustainable CSR policies, this study endeavors to bridge the crevice by examining the differences of behavior and performances of mining companies’ Corporate Social Responsibilities in Ghana from the views of multiple stakeholders, comprising:media, government agencies, communities and Civil society organizations (CSO). There are five main objectives that this research seeks to investigate; the first was to explore the external manifestation of CSR behavior among mining companies, and the second was to examine the differences in CSR mechanisms among mining companies in Ghana, The third objective was to explore the factors influencing CSR behavior among mining companies in Ghana, the forth sought to explore the determinants of corporate social irresponsibility, and finally being to make policy recommendation for the industry and government to strengthen CSR mechanisms and initiatives enforce by law. The decision for taking up this research focused on mining firms to comply, create and manage a portfolio of corporate social responsibilities policies. Moreover, the study has sought to understand how institutional differences and behavior compete among specific companies CSR choices to provide tangible evidence of managing responsibly.In order to achieve the research objectives, a comprehensive literature review from secondary data and primary data for quantitative and qualitative analysis has been used to give an overview of how CSR is put into different behavioral performances in the extractive industry. The study adapted mix data approach by administered 800 questionnaires to the mining communities with 760 respondents. In all about 120 companies, listed and non-listed mining companies in the country were targeted for the survey. Two different sets of questionnaires were designed for the communities and the companies for the study. The data was first tested to proof its validity before using for the study by using SPSS version 20. Subsequently, the application of an econometrics models:the simple linear model, multiple linear regression and the Fitted Logistic Regression Model, Pearson Chi-square and Analysis of Variance (ANOVA) were used to analyze the data. In addition, secondary source of a well-protected data from the Ghana Investment Promotion Center (GIPC), and Ghana Stock Exchange (GSE) were utilized for the study. This study consolidates internal and external viewpoints to look at the heralds of corporate social and ecological irresponsible behavior. As far as internal elements, we concentrate on the degree to which a firm joins corporate social responsibility (CSR) into its corporate strategy and the level of company commits resources into R&D for consumer oriented product development. As for external determinants, I concentrated on market sector costs forces and government agencies responsible for local governance corruption. The hypothesis I developed have been tested by utilizing unique survey data of the 120 companies for five years study thus 2010-2015, and the data gathered from the host communities.Results of the analyses concerning the differences in behavior of the mining companies indicate that the companies undertake the same social interventions as a mode of CSR but at the different behavioral levels. The outcomes demonstrate that consolidating corporate social responsibility into business strategy and putting resources into R&D both foresee less socially or ecologically irresponsible behaviors by companies. Conversely, pressures from costs and corruptions within the government settings associate with an increase probability of irresponsible social and ecological behaviors of companies. It was also found that Return on Ordinary Share, Return on Sales, and Net Profits were reliably connected with lower CSR disbursements. The study suggested that consciously aligning CSR initiatives (what) with appropriate mechanisms (how) will allow the corporations to efficiently and effectively pursue their CSR objectives and arguably create sustained impact. The developed countries’ institutional research done on corporate social responsibilities (CSR), have shown a positive relationship between accessibility of financial related assets and CSR. A contention that is classified as the Institutional Difference Hypothesis (IDH) drawn from the institutional writing, on the other hand, propose that institutional contrasts amid of developing and the developed economies are prone to result in diverse CSR propositions. Incorporating the rationale of IDH with understanding of knowledge from slack resource theory contended that there exists a negative relationship between fiscal resources accessibility and CSR investments for mining companies in Ghana. The study has identified the health care intervention as one of the key manifestations of corporate social responsibility and there is no significant difference between the five companies that were identified. Similarly the study noted that corporate social responsibility among the mining communities is also largely seen in terms of intervention in education. This is because the study has noted that partnerships on the other hand have a negative relationship with CSR involvement and this is significant. The research designed a mechanism for evaluating prospective policy holders and determining their risk factors which will help the mining companies to determine the appropriate CSR for their host communities.The study recommends suggestions for CSR policy formulation from the designing stage to the implementation to avoid future misperceptions. It’s about time the mining companies in Ghana see the country as place to site their value enhancing activities such as gold refining to further create employment avenues for the people. The government of Ghana would have to legislate to bear on the gold mining companies by making some of these facts available to the people so that the people can have pre-information about their profits. The community people should be encouraged to seek accountability from their representatives on the CSR committee’s setup by the mining companies. Periodic reports should be made to the people by their representatives so that they are made aware of what the gold mining companies are doing for them. In addition, the study provide new research approach for related issues in extractive industry’s CSR research and expand the application of the logistic regression model to cover a wider period and area for example Africa for social science research.