The contribution of Letšeng Diamonds Mine Corporate Social Responsibility in the Mokhotlong district by Tšepo Hlojeng Submitted in fulfilment of the requirements in respect of the Master’s Degree of Development Studies in the Centre for Development Support in the Faculty of Economic and Management Science at the University of the Free State. Supervisor: Professor Lochner Marais Date: 27th January 2020 DECLARATION I, Tšepo Hlojeng, declare that the Master’s Degree research dissertation or interrelated, publishable manuscripts/published articles, or coursework Master’s Degree mini-dissertation that I herewith submit for the Master’s Degree qualification in Development Studies at the University of the Free State is my independent work, and that I have not previously submitted it for a qualification at another institution of higher education. Copyright © 2020 University of the Free State All rights reserved ii DEDICATION This thesis is dedicated to my late father Ntate Manama Vincent Hlojeng and my mother ‘Me Mateboho Vitalina Hlojeng. My parents will forever be my source of inspiration and love. Without them I would not have been the person I am today. They taught me that respect, humility, obedience, perseverance, prayer and hard work are very crucial instruments to success. iii ACKNOWLEDGEMENTS First and foremost, I will like to acknowledge my wife ‘Me Madelinga Moliehi Hlojeng, my two children Manama Vincent Hlojeng junior and Delinga Tamia Hlojeng for the wonderful support, encouragement and love that they showed me during the time of my studies. In addition, I will like to convey my gratitude to the following people: • My siblings for their support throughout my studies. They were always there for me whenever I needed their support. • My supervisor Professor Lochner Marais for his valuable academic knowledge, critical thinking and patience whenever things were difficult. • Letšeng Diamonds for awarding me the permission to use its CSR projects for my research. iv TABLE OF CONTENTS Declaration............................................................................................................................................. ii Dedication ............................................................................................................................................. iii Acknowledgements .............................................................................................................................. iv List of Tables ...................................................................................................................................... viii List of Figures ....................................................................................................................................... ix Chapter 1: Introduction ................................................................................................................... 1 1.1 Background information ......................................................................................................... 1 1.2 The Research ........................................................................................................................... 2 1.3 Problem Statement .................................................................................................................. 2 1.4 Aim and objectives of the study .............................................................................................. 3 1.5 Methods................................................................................................................................... 3 1.5.1 Introduction ..................................................................................................................... 3 1.5.2 Sources of data ................................................................................................................ 3 1.5.3 Data analysis .................................................................................................................... 3 1.5.4 Research design ............................................................................................................... 4 1.6 Defining the main concepts..................................................................................................... 4 1.6.1 Corporate social responsibility ........................................................................................ 4 1.6.2 Sustainable development ................................................................................................. 4 1.6.3 Social licence to operate .................................................................................................. 5 1.7 Layout of the study ................................................................................................................. 5 Chapter 2: Literature Review .......................................................................................................... 7 2.1 Introduction ............................................................................................................................. 7 2.2 CSR before 1950 ..................................................................................................................... 8 2.3 The 1950s ................................................................................................................................ 9 2.4 The 1960s .............................................................................................................................. 10 2.5 The 1970s .............................................................................................................................. 11 2.6 The 1980s .............................................................................................................................. 12 2.7 The 1990s .............................................................................................................................. 13 2.8 The post-2000s period ........................................................................................................... 14 2.9 CSR and social license to operate ......................................................................................... 19 2.10 Conclusion ............................................................................................................................ 21 Chapter 3: The mining industry in Lesotho and Letšeng Diamonds CSR Programme ........... 22 3.1 Introduction ........................................................................................................................... 22 3.2 CSR and Mining ................................................................................................................... 22 v 3.3 Legal and regulatory framework of mining in Lesotho ........................................................ 24 3.3.1 Mining Rights Act of 1967 ............................................................................................ 24 3.3.2 Precious Stones Act of 1970 .......................................................................................... 24 3.3.3 Mines and Mineral Act of 2005 ..................................................................................... 24 3.3.4 Mining and Mineral Policy of 2014 .............................................................................. 25 3.3.5 Kimberly Process Certification Scheme ........................................................................ 25 3.4 History of diamond mining in Lesotho ................................................................................. 26 3.4.1 Letšeng Kimberlite ........................................................................................................ 27 3.4.2 Kao Kimberlite .............................................................................................................. 28 3.4.3 Liqhobong kimberlite .................................................................................................... 29 3.6 CSR support with products or services that the company produces ..................................... 29 3.7 Letšeng Diamonds CSR programme .......................................................................................... 30 3.8 Synthesis ............................................................................................................................... 31 Chapter 4: Letšeng Diamonds CSR Projects analysis ................................................................. 32 4.1 Introduction ........................................................................................................................... 32 4.2 Conceptual framework .......................................................................................................... 32 4.2.1 Sustainability ................................................................................................................. 33 4.2.2 Social license to operate ................................................................................................ 33 4.2.3 Philanthropic support ..................................................................................................... 34 4.2.4 Stakeholder theory ......................................................................................................... 34 4.3 Project 1: Dairy Project ......................................................................................................... 34 4.3.1 Project description ........................................................................................................