Host communities’ infrastructural development expectations of multinational mining companies in Ghana’s mining industry

ABSTRACT

This paper, through an ethnographic research approach, examines the infrastructural development expectations that host communities have of multinational mining companies (MNMCs) and how these expectations influence corporate-community relationships in two of Ghana’s mining districts. Using data triangulation from multiple stakeholder perspectives, two MNMCs ranked among the ten best corporate social responsibility firms in the world are studied to explore how and why these expectations impact corporate-community relationships. Theoretically, the paper argues that the Ubuntu philosophy (culture) of the rich sharing their wealth with the underprivileged in society influences community expectations. These expectations, in turn, affect social legitimacy of companies. It therefore emphasizes the need to consider the informal context when using institutional and stakeholder theory to examine corporate social responsibility (CSR) in African countries. By this, the paper contributes to the reorientation of stakeholder theory from a firm-centric to community-centric focus. Managerially, the paper suggests that multinational companies coming to Africa’s mining communities need to understand this cultural norm and set aside enough resources to provide infrastructure projects in host communities to enhance corporate-community relations.

KEYWORDS:

• corporate social responsibility (CSR)
• multinational mining companies (MNMCs)
• host communities
• stakeholder theory
• institutional theory
• Ubuntu

Disclosure Statement

No potential conflict of interest was reported by the authors.

Additional information

Notes on contributors

Stanford Nartey

Stanford Nartey is a lecturer in Management at the Ghana Institute of Management and Public Administration, Ghana (GIMPA). He obtained his PhD in Management from the Hull University Business School in the UK. He also holds an MBA in Management from Hull University. His research interests are in the areas of Management, Organizational Behavior in Society, CSR & Community Relations, and Business Strategy.

Franklyn A. Manu

Franklyn A. Manu is a Professor of Marketing and International Business at the Ghana Institute of Management and Public Administration, Ghana (GIMPA). He holds a PhD in Business Administration from the Stern School of Business, New York University, USA. His research interests are in the areas of Corporate Social Responsibility, African Business Environments, and Marketing Strategy.