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This book addresses key aspects of corporate social responsibility (CSR) and explores them from a variety of perspectives in a case study on the Marange diamond mines in Zimbabwe. The business case of the Marange mines is presented to demonstrate the challenge of practicing social responsibility while considering and balancing the needs of a developing nation, environmental protection, community involvement and international business. Lessons learned from the case study will help business leaders and strategists in developing countries and multinational corporations to better understand and employ CSR principles so as to enhance sustainability and social impact. Further, the book provides a unique combination of academic, industrial and local approaches.



Opportunities and Pitfalls of Corporate Social Responsibility: An Introduction

Corporate Social Responsibility (CSR) is a particularly challenging activity in developing countries where institutional infrastructure is young or weak. The challenge is even more significant in the mining industry where very often multi-national corporations are operating within the geographic and national boundaries of developing countries. This volume addresses one example of this challenge by examining the role of government, industry and community as affected by the discovery and mining of diamonds in the Marange fields of Zimbabwe. It is hoped the closer examination of one case, the Marange Diamond Mines, will provide guidance to the implementation of CSR strategies in developing countries.
Shame Mugova

CSR Implementation Challenges: Analysing the Role and Behaviour of Stakeholders

Societies expect organisations to be ethical and honest in their business approach rather than conduct their affairs in such a way that key stakeholders of the business feel alienated. Conversely, the need to generate maximum return for shareholders contradicts the obligation placed on organisations to be socially responsible. While expectations of both the mining companies and stakeholders may vary depending on their interests, one thing that does not change is the company’s responsibility to fulfil its CSR mandate. The power and role of stakeholders in the efficacy or implementation of CSR agreements are a concern in the developing world in general and the Marange diamond mining project in particular. In this regard, it was important to analyse the role and behaviour of government, the community and the civil society (non-governmental organisations) and their impact on the Zimbabwe diamond sector in general and implementation of CSR activities in particular. The fragmented approach among different stakeholders in terms of enforcing CSR agreements is evident and as a result, it has provided room for mining companies to exploit both the government and the communities where mining operations are being conducted.
Steven Kayambazinthu Msosa

Exploring the Theoretical Basis for Stakeholder Protection in Corporate Governance

The paper seeks theoretical justification for the protection of company’s stakeholders under the general corporate law. This ordinarily raises the issue of corporate governance bordering on the questions as to whose interests a corporate entity should be run, and what the best interests of the company, presently entrenched in the company’s statute, entails. Finding answers to these questions demands the exploration of the corporate law theories that exert influences on the different models of corporate governance. The paper concludes that the important roles of the stakeholders to the success and sustainability of the corporate enterprise strongly justify their inclusion and the consideration of their interests at the same level as those of the shareholders under the corporate law.
Anthony O. Nwafor, Mandhlaenkosi Sibanda

The Socio-economic Impact of Corporate Social Responsibility on the Zimbabwe Mining Industry

The purpose of this study is to analyse the implementation of corporate social responsibility programmes by Marange mining companies to determine whether they mitigate negative social and environmental impacts and contribute to sustainable development in the communities in which they operate. Miners can become good corporate citizens for their stakeholders, communities and societies by adopting the concept of corporate social responsibility which has emerged as an increasingly crucial concept globally and has become an important part of the debate on sustainability. This study makes an important contribution to understanding of the Marange Diamonds corporate social responsibility (CSR) case study. Content analysis research methodology was adopted for this study. The contents of websites are examined since, being private, the companies are under no obligation to publish annual financial statements. Analysis is based on the impact of CSR and mining activities on quality, income (economy), education, and health of the communities. Several areas of CSR are open to diamond miners; these include ethics, law, employee health and safety, the environment, education, philanthropy, and economy. The study also demonstrated that challenges also exist in these areas: economic responsibility; employee health and safety; recruitment of qualified lecturers; legal responsibility; environmental responsibility; philanthropic responsibility; and ethical responsibility. The conclusion of this study is that mines in Marange in eastern Zimbabwe failed to take advantage of opportunities presented by CSR to manage both risks and their images as catalysts of sustainable development. Further conclusions are that CSR activities that temporarily satisfy short-term needs are to be avoided; CSR should include community participation to achieve adoption Miners should be proactive in identifying the nature of communities they move into and the dynamics arising therefrom and finally, CSR activities must be reported to avoid misunderstanding and to gain trust of all stakeholders.
John Davison Gondwe Nhavira

Corporate Social and Environmental Responsibility in the Diamond Supply Chain

The steadily rising global demand for luxury gems and the simultaneously growing attention of public opinion towards sustainability and corporate social responsibility (CSR) issues have been exerting an impact on the mining industry and have become a challenge for the diamond supply chain’s management. Multiple associations, the African Diamond Producers Association (ADPA), the International Diamond Manufacturers Association (IDMA), and the Responsible Jewellery Council (RJC), standards, and frameworks developed by the industry could constitute evidence of the progress made. This study, through an in-depth investigation, having explored the concept of corporate social responsibility in the mining industry, provides a detailed overview of sustainable supply chain management and proposes an examination of the initiatives currently being undertaken by the members of the RJC in their supply chain in the field of social and environmental responsibility. In this way, we offer an original conceptualization based on the viable system approach (VSA). The research outcome will help managers of the producing firms to identify important practices and to improve the environmental issues of traditional supply chain management through the adoption of sustainable supply chain management.
Nicola Cucari, Ewa Wankowicz, Mario Calabrese

Theory and Practice of Corporate Social Responsibility in a Developing Country Context

Corporate entities engage in business with a profit motive, but host communities suffer displacement, loss of livelihood, workplace hazards, environmental pollution, resources depletion and other such risks. These would be acceptable, if there is an overall betterment of life of local communities with an equitable distribution of wealth. The medieval practices of exploitation unmindful of consequences are out of place in modern capitalism. There is a growing realization that sustainable growth and success can be achieved by businesses only by recognizing social responsibilities and contributing to socioeconomic progress of host society and country. There is a paradigm shift in corporate accountability from ‘shareholders only’ to ‘all stakeholders’ with its evolution from philanthropy, charity, trusteeship, transparency, social accountability and sustainable business strategy to a responsibility. The concept and implementation of corporate social responsibility (CSR) differ much between developed countries and developing nations of Asia, Africa and South America. The diamond mining has deservingly earned a great deal of notoriety from looting, stealing, and reckless exploitation and ruining of host communities and countries. Terms like ‘blood diamonds‘ and’conflict diamonds‘ are the examples. This chapter attempts to explore, if cooperation, accountability, fair play and social values are incorporated in Zimbabwe’s Marange diamond fields, comparison of its record with that of other mining countries, examine the applicability of CSR of developed countries to developing nations, and drawing relevant conclusions and suggestions to enable developing countries bridge gaps in their CSR practices. It has been concluded that even the best endowed country in natural resources might remain poor with bad CSR practices, if resources are not properly managed.
Kameswari Peddada, Nawal Abdalla Adam

Labour Management Issues in Marange Diamond Mines

Corporate social responsibility (CSR) advocates for the rights and fair treatment of labour. Good CSR practices encompasses elimination of discrimination and abuse at work place. Employees are a form of stakeholder demand for CSR. The chapter reviews labour management issues in Marange Diamond Mines. The mines were centre for illegal mining, human rights abuses and unfair labour practices. There is need of labour laws to protect workers and fight the abuse of employee rights. Workers need knowledge and awareness of their rights so that they can demand CSR. Firms that satisfy employee demand for CSR benefit from increased worker loyalty, morale, and productivity. Strong labour institutions are required to ensure that employee codes, practices and laws are not violated by employers.
Blessing Kanyumba, Shame Mugova

‘The World Against Us’: The Vulnerable Group, Marange Diamond Mines and the Corporate Social Responsibility Question

Corporate Social Responsibility (CSR) has become one of the most hotly debated issues in the business world. The reason is that while some companies readily fulfill their obligations to society, others either under-declare their profits so as to keep back a substantial part of it, or fail to do so outright, despite reaping so much from their host communities. These obligations, as little as it may be, goes a long way in ameliorating the suffering, poverty and underdevelopment of the populations rendered vulnerable by the activities of the corporate world. These businesses and their co-conspirators, rather than fulfill their CSR, even extract more from the people by underpaying its labour force, subjecting it to unconducive mining environment, and promulgating dehumanizing and obnoxious policies. This deprives the people of their socio-economic, political and environmental rights, and exacerbates the conditions of these vulnerable populations, among which are women and children, girls, the elderly, the sick, and the malnourished. Against this backdrop, this study examines how the activities and inactivity of the Marange mines have affected these groups. This is carried out through the review of extant literature, online and telephone interviews, as well as local and international media reports. The study revealed, among other things, the issues of human right abuses which although the government and other stakeholders, including the international community, are aware of, there is lack of political will to address these issues, as a result of which there has been continual suffering among these vulnerable groups of people. Finally, the paper suggests some plausible ways of meeting this plethora of challenges.
O. O. Thompson, R. R. Aduradola, U. S. Odozor, O. G. F. Nwaorgu, A. S. Afolabi, A. O. Ade-Ibijola

Corporate Social Responsibilities: A Comparative Study of the DRC, Zimbabwe and South Africa

The Corporate Social Responsibilities (CSR) agenda in developing countries should be in sync with priorities and realities of the local context. With this background the present study examines the case of the Democratic Republic of the Congo (DRC), Zimbabwe and South Africa (SA). In discussing CSR in the three countries, the aim is to reflect on the state of CSR, identify shortcomings and recommend courses of action to improve the policy and practices of CSR in the respective countries. The chapter reviews CSR terrain in DRC, Zimbabwe and SA separately and then compares and contrasts in order to better clarify the construct. The focus is on the mining and mineral related organizations in the respective countries. The paper highlights the role played by respective governments in ensuring Small and Medium Enterprises (SMEs) as well as Multi-National Corporations (MNCs) abide by country-specific legislations and mining codes while enforcing CSR. Firms need to innovate and adapt CSR policies and practices to their context and the prevailing challenges and opportunities. The roles of institutional infrastructure, civil society and the community are discussed as key pillars to improve CSR practices. A systematic review of literature was used to analyze, reflect and understand specific CSR situations in the selected countries.
Byelongo Elisee Isheloke, Shame Mugova

Environmental Impact and CSR Responsibilities

Corporate social responsibility is a multidimensional concept consisting of economic, social, and environmental dimensions. In the pursuit of profit, organizations are expected to be responsible towards the environment. However, different sectors of the economy create different social contracts and societal expectations of corporate social responsibility. In recent times, environmental protection and sustainability are the major areas of policing especially in the extractive industry. Mining leads to environmental degradation viz. land, water and air pollution and reduction of arable land for agriculture. There is therefore a need to promote good environmental practices that encourage pursuing environmental sustainability. Balancing the use of natural resources and conservation is one of the major challenges facing businesses today. The Marange diamond mining project is not exceptional and this is evident in the number of complaints raised against the project. This chapter seeks to assess the environmental impact of the mining project and identify gaps during CSR implementation with particular reference to the environment. In this regard, it is imperative to ascertain whether CSR responsibilities placed on the organisation were fulfilled. Thus, comparisons will be made to other similar projects in the Sub-Saharan African region to ascertain their impact on the environment and level of compliance with CSR responsibilities.
Steven Kayambazinthu Msosa, Jeevarathnam P. Govender

Corporate Social Responsibility in Times of Economic Crises

In 2006 when diamonds were discovered in Zimbabwe in the eastern province of Manicaland the country was experiencing hyperinflation, unprecedented levels of poverty, high unemployment and deterioration of infrastructure such as roads. Zimbabwe is richly endowed with mineral resources which should be ideally an important contributor to sustainable growth and economic development of which, it is not the case. The country has not benefited from the extraction of its natural resources particularly the diamonds in Marange. Multinational companies (MNCs) from China repatriated profits and diamond revenue and have not contributed meaningfully to local development. The economic crises prevailing in Zimbabwe is a challenging business operating environment which makes it difficulty to budget for CSR. The economic crisis has presented mining firms with opportunities to solve community problems through CSR. The tough economic and social environment in Zimbabwe, provides an opportunity to assess the diamond mining firms commitment to corporate social responsibility principles and values. The chapter discusses CSR opportunities and pitfalls amidst the economic crisis and challenging times Zimbabwe is undergoing using the Marange Diamond mines as a case study.
Lucy Tambudzai Chamba, Shame Mugova

Is a Sustainable Development Affordable in Developing Countries? The Marange Diamond Fields Case

This paper arises from the author’ intention to study the impact of Social issues in Corporate Social Responsibility and to test the viability of Sustainable Development in less developed economies. Experts in the field have dedicated time and flow of words to the topic. In most cases, the scenarios of analysis have been European countries, which given their level of development have the natural conditions that allow emerging trends to evolve quicker than in developing economies. Focusing on European markets makes it possible to measure in a shorter time the impact they can have and the outcome they can produce. Developed economies and emerging ones go to a different pace. Here, because Corporate Social Responsibility and the Social element of the topic is less explored in emerging markets, the author has decided to study it. To better analyze this reality, the paper presents as case study what has been happening in Zimbabwe and in the Marange diamond mine in the last decades. The reason behind this choice is that local and international press, and many humanitarian organizations, have recorded events—trough the testimony of people living in the area—that are considered violations against human rights by most of the parties. Furthermore, the local government and the army have been deeply involved in the abuses against the local communities (Thornycroft, 2006; Krawitz, 2008; Irinnews, 2009, The Guardian, March 2016).
Angela Giovinco

A Conceptual and Ethical Approach to Corporate Social Responsibility in Africa’s Development Crisis: The Marange Experience

In developed economies, it is no longer much of a debate whether an organisation owes its host community social responsibility. Current discussion focuses on how to identify the specific and appropriate social engagements that are in line with the policies, goals and aspirations of a corporation, as it strives to impress its shareholders, meet customers’ needs, and remain afloat, in the face of stiff competition. Available evidence from literature shows that in the 19th century, and even from the earliest stirrings of the Industrial Revolution, business corporations readily appreciated the weight of their responsibility to society and responded accordingly; they ensured that their activities did not constitute hazard to the environment, and ploughed part of their profits into community development projects. Even in the 21st century, these corporate practices have not been the trend in Africa; yet the continent contributes about 25% of global natural resources. Rather, these resources are dispersed and consumed in other parts of the world, while Africa remains trapped in underdevelopment. This paper focuses on the vulnerable community of Marange, which has been at the receiving end of the diamond mining activities in Eastern Zimbabwe. In spite of the abundance of alluvial diamonds, which are considered as the most prized natural resource in the world, the Marange experience has been that of neglect of the environment, retrogression, servitude; bloodletting, abject poverty and permanent displacement of indigenous communities. The sources of data for this study were library and archival materials, as well as secondary (Internet) sources, which were subjected to critical analysis. Exploring the concept and nature of corporate social responsibility (CSR), the paper draws out the ethical implications of diamond mining activities of corporations for the social, economic and political development of Marange and its neighbouring communities.
U. S. Odozor, R. R. Aduradola, O. O. Thompson, E. O. Akintona

Constraints and Opportunities in the Mitigation of Adverse Environmental Impacts in Mineral Resources Harnessing—Some Marange Diamond Perspectives

Zimbabwe has a population of 15.4 million people in which 2.8 million of them live in extreme poverty. Since independence, the Zimbabwean government has implemented a plethora of populist macro and microprogrammes to deal with poverty. These have had differing success. Zimbabwean economy has been struggling to deal with poverty and foster community development for the past decades. Zimbabwean nominal gross domestic product in 2016 was pegged at $14.6 billion. The largest productive sectors in the economy were hotels and restaurants (13% of GDP), manufacturing (12% of GDP), agriculture (12% of GDP), transport and mining (11% of GDP) and mining (9% of GDP). Zimbabwe’s economy relies on interconnected activities in mining, agriculture and tourism. Between 2006 and 2009 diamonds were discovered in Chiadzwa ward in Marange area. On a macro level, the discovery of diamonds in Zimbabwe created an expectation that the economy will grow through job creation, infrastructure development, investment opportunities and improved livelihoods of the host communities. Prior to the discovery of diamonds in Chiadzwa, the local community economy was viewed as heavily dependent on animal rearing craft and farming drought-resistant crops and dependent on donor organisations for survival. Mining companies in Chiadzwa had a capacity to produce about US $600,000 worth of diamonds per week. With such great potential one expects that the diamond sales trickle to the local community and national level. CSR seems to offer a plausible solution to sustainable social development to disadvantaged communities. It is against this background that this chapter aims at critiquing perspectives of Corporate Social Responsibility (CSR) implementation in Chiadzwa where communities should be beneficiaries of mineral extractive activities. CSR may also help to improve the quality of life thus in a way combating poverty among the marginalised groups such as women, youth and children in the host communities. When correctly implemented, CSR is expected to positively impact on the host community. Evidence from the literature shows that CSR is largely voluntary and generally communities do not always benefit in the mining profitability in third world countries. This chapter recommends pathways state and non-state actors can pursue mandating mining companies to have practical sustainable CSR programmes when conducting mining operations and perform mandatory follow up studies after the mines have completed their operations. The CSR in the mining industry should be motivated by sustainable development rather than establishing legitimacy. Through CSR implementation expectations are that the host communities are protected from exploitation of their community resources which in turn advance equity of all marginalised groups particular women and children.
Lawrence Matenga, Takudzwa Lenard Mathende, Tatenda Goodman Nhapi

Opportunities and Pitfalls of CSR: A Summary

The present volume reviewed the CSR challenges evident in the specific case of the Marange Diamond fields. Although the problems continue at present, the examination of the case suggests avenues for improvement and further research. The roles of transparency, stakeholder engagement and supply chain management are worthy of more careful consideration and development. Finally, and perhaps most significantly, the whole notion of CSR could be econsidered from an Afro-centric, or at least non-Euro-centric, perspective. Doing so may result in CSR models that are most suitable and sustainable in the 21st Century.
Shame Mugova, Paul R. Sachs


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