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CSR Communication: a Study of Multinational Mining Companies in Southern Ghana

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CSR Communication: a Study of Multinational Mining Companies in Southern Ghana CSR Communication: A Study of Multinational Mining Companies in Southern Ghana Joe Prempeh Owusu-Agyemang, MPharm, MBA & MRes 2017 Submitted in fulfilment of the requirements for the degree of Doctor of Philosophy at the Business Department, Kingston University, London. Supervisors: Dr Fatima Annan-Diab Dr Nina Seppala i Abstract In recent years, there has been significant interest in communication on Corporate Social Responsibility (CSR) (Tehemar, 2012; Bortree, 2014). Yet, it is impractical to assume a one- size-fits-all definition for CSR (Crane and Matten, 2007; Walter, 2014). Therefore, this becomes an important area for research as CSR communications play a vital role in any CSR strategy in the business world, more especially in Ghana. Consequently, a good CSR communication can address the increasing cynicism about CSR when it is done effectively (Du et al., 2010; Kim and Ferguson, 2014). While a body of research exists about CSR communication at a theoretical level (Brugger, 2010; Schmeltz, 2012), there is a lack of empirical research investigating the topic in a particular policy and cultural content (Emel et al., 2012). The aim of this study was to address the limited research on CSR communication in Ghana. It empirically investigated whether the CSR dimensions (Triple Bottom Line) and effective CSR message components are positively linked with CSR stakeholder’ approval. The effects of individual characteristics including education and gender were also tested on the relationships. The study integrates insights from stakeholder theory (Vaaland et al., 2008; Wang, 2008) supported by both legitimacy theory (Perk et al., 2013) and institutional theory (Suddaby, 2013) to explain the planned base for CSR communication. A cross-sectional survey with 817 responses was used. This consisted of government-local-authority officials, mining company employees and host community officials from multinational mining companies (AngloGold Ashanti Limited, Ghana Bauxite Company Limited and Ghana Manganese Company Limited) operating in areas of southern Ghana. A quantitative survey analysis was employed to test the relationships through multiple regression analysis. One of the contributions pertains to the introduction of constructs of social, environmental and economic bottom lines to form a new, easy-to-remember acronym, the ‘SEE’ element in the CSR message contents. The results also make a contribution to knowledge by indicating that CSR message dimensions positively affect the way stakeholders approve mining companies’ CSR communications. Additionally, there were clear education and gender differences amongst stakeholders in accepting and approving companies’ CSR messages in Ghana. Furthermore, divergent stakeholders prefer different CSR message channels, and that certain CSR message contents are important for a particular stakeholder group. ii Declaration I declare that the composed thesis and the work in it are my own. The work has not been submitted for any other degree or professional qualification apart from as specified by the Kingston University, London. Signature: ………………… Date: 2017. Materials to be published from this work: Corporate Social Responsibility Communication in Ghana: The Impact of Education on CSR Message’s Triple Bottom Line. The Role of Gender in Corporate Social Responsibility Communication: A Study of Multinational Mining Companies in Ghana. Communicating Corporate Social Responsibility: The Stakeholder Differentiation in Ghanaian Perspective. iii Acknowledgement I dedicate this thesis to my family and friends who have given me invaluable support and encouragement during my PhD experience. Their continued encouragement inspired me and made a significant contribution to my successful completion of the Doctorate degree. I am also thankful to my supervisors; Dr Fatima Annan-Diab (Business School, Kingston University, London) and Dr Nina Seppala (University College, London) who supported and guided me throughout the process of my research. I have benefited and learnt a lot from their expertise in CSR. This acknowledgement would be incomplete without mentioning Dr Chris Hand (Business School, Kingston University, London) and Professor Arthur G. Money who supported and guided me through the thesis analysis and writing up. As statistics formed a major part of my research, I always needed support from these two experts in that area. They were always there whenever I needed their help in the course of the programme. I owe a debt of gratitude to multinational mining companies including AngloGold Ashanti Ltd, Ghana Bauxite Company Ltd and Ghana Manganese Ltd and their employees. I am also indebted to all the individuals such as government-local-authority and host-community officials who answered the questionnaires during the study’s data collection. I am most grateful for their assistance. Finally, as PhD work is a laborious task and needs a lot of assistance from my cohort of colleagues at doctoral level, many thanks go to my friend and course mate, Hameed with whom we worked together during the programme. iv Table of Contents Chapter One: Thesis Introduction……………………………………………………….. 1 1.1 Introduction………………………………………………………………... 1 1.2 Background of the Study………………………………………………….. 2 1.3 Rationale for the Study……………………………………………………. 3 1.4 Overview of the Mining Industry in Ghana……………………………….. 5 1.5 Problem Statement………………………………………………………… 7 1.6 Purpose of the Study………………………………………………………. 8 1.6.1 Research Gaps…………………………………………………………….. 8 1.6.2 Research Aim …………………………………………………………….... 9 1.6.3 Research Objectives……………………………………………………….. 10 1.7 Overview of the Methodology…………………………………………….. 12 1.8 Research Justification and Contribution…………………………………... 13 1.8.1 Theoretical Contributions…………………………………………………. 13 1.8.2 Empirical Contributions………………………………………………….... 14 1.9 Structure of the Thesis…………………………………………………….. 15 1.10 Conclusion………………………………………………………………… 19 Chapter Two: The Concept of CSR and Sustainability………………………………… 20 2.1 Introduction……………………………………………………………….. 20 2.2 CSR: Different Terminologies…………………………………………….. 21 2.2.1 CSR: Early Definitions……………………………………………………. 23 2.2.2 CSR: Current Definitions…………………………………………………. 24 2.3 Benefits of CSR…………………………………………………………… 26 2.3.1 Employees…………………………………………………………………. 26 2.3.2 Community………………………………………………………………... 27 2.3.3 Government……………………………………………………………….. 28 2.4 CSR: The Debate………………………………………………………….. 28 2.4.1 The Case in Favour of CSR……………………………………………….. 29 2.4.2 The Case Against CSR……………………………………………………. 30 2.4.3 Corporate Citizenship……………………………………………………... 31 2.4.3.1 Citizenship: The Seven Dimensions………………………………………. 31 2.4.3.2 Global Corporate Citizenship……………………………………………... 33 2.4.3.3 Corporate Citizenship Dimensions………………………………………... 34 2.5 Sustainability………………………………………………………………. 37 2.5.1 Social Bottom Line………………………………………………………... 41 2.5.2 Environmental Bottom Line………………………………………………. 41 2.5.3 Economic Bottom Line……………………………………………………. 42 2.6 Sustainability Paradigms…………………………………………………... 43 2.6.1 Technocentrism……………………………………………………………. 44 2.6.2 Ecocentrism………………………………………………………………... 44 2.6.3 Sustaincentrism……………………………………………………………. 44 2.7 Integrating CSR and Sustainability………………………………………... 44 2.8 Mining and Sustainability in Ghana………………………………………. 45 2.8.1 Mitigating Social Challenges……………………………………………… 48 2.8.2 Mitigating Environmental Challenges…………………………………….. 50 2.8.3 Mitigation Economic Challenges………………………………………….. 50 2.8.4 Governance: The Role Host Government…………………………………. 51 2.9 CSR Regulating Guidelines and Code of Conducts………………………. 52 v 2.9.1 International Voluntary Code of Conducts………………………………... 52 2.9.1.1 OECD Principles of Corporate Governance………………………………. 53 2.9.1.2 UN Global Compact………………………………………………………. 54 2.9.1.3 Global Reporting Initiative………………………………………………... 54 2.10 Mining Policy and Legislation in Ghana………………………………….. 55 2.11 Sustainability Indicators…………………………………………………… 58 2.11.1 Internal Factors……………………………………………………………. 58 2.11.2 External Factors…………………………………………………………… 58 2.12 Measurement of CSR Message Content Metrics..………………………… 59 2.12.1 Social Message Metrics………………………………………………….. 60 2.12.2 Environmental Message Metrics………………………………………… 60 2.12.3 Economic Message Metrics……………………………………………… 60 2.13 Conclusion…………………………………………………………………. 61 Chapter Three: CSR Communication……………………………………………………. 63 3.1 Introduction………………………………………………………………... 63 3.2 CSR Communication Objectives………………………………………….. 64 3.3 Challenges of CSR Communication………………………………………. 65 3.3.1 The Information Source…………………………………………………… 66 3.3.2 The Timing……………………………………………………………….... 66 3.3.3 The Audience……………………………………………………………… 67 3.3.4 CSR Communication Channels……………………………………………. 68 3.3.5 CSR Communication Message Content…………………………………… 68 3.3.6 CSR Communication Cultural Context……………………………………. 70 3.4 The Power-Interest Matrix………………………………………………… 71 3.5 CSR Communication Models……………………………………………... 73 3.5.1 Stakeholder Information Model…………………………………………… 73 3.5.2 Stakeholder Response Model……………………………………………… 74 3.5.3 Stakeholder Involvement Model…………………………………………... 74 3.6 Sustainability and Communication………………………………………... 75 3.7 CSR Communication in Mining Industry…………………………………. 76 3.8 Communication Legislation in Ghana…………………………………….. 77 3.8.1 NCA Functions……………………………………………………………. 78 3.8.2 Powers of the NCA………………………………………………………... 79 3.9 Conclusion…………………………………………………………………. 79 Chapter Four: CSR in Mining Industry………………………………………………….. 81 4.1 Introduction………………………………………………………………… 81 4.2 Mining: An
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