Doing business and contributing to conflict prevention and development in Ghana

While some scholars argue that companies implement corporate social responsibility (CSR) for altruistic reasons, to gain an advantage over rivals in the industry, to enhance corporate reputation, and to be seen as ethical for addressing environmental and socio-economic difficulties, other scholars view CSR as unnecessary. These scholars argue that CSR initiatives adversely affect corporate profits. The understanding of this phenomenon remains incomplete, especially with the lack of empirical understanding about why corporate bodies execute CSR in spite of their primary goal of maximizing profits. To better understand this gap in knowledge, this case study of the Newmont Ghana Gold Limited (NGGL) ascertains why the company implements CSR in the mining communities they operate. This study contributes to the debates on CSR and the global call for businesses to address societal problems. Navigating the qualitative research approach and human-needs conflict theory, this study discovered that despite its voluntary application, failing to implement CSR would have prevented NGGL to have the social license to operate, and violent and nonviolent conflicts would have occurred. The study also found that CSR was implemented to address the fundamental needs of host communities adversely affected by mining. Together, these results suggest that CSR is treated as a conflict prevention and development initiative. Therefore, the study recommends that CSR be made mandatory.