A Study of Factors that Affect Compliance with Corporate Social Responsibly in South African Junior Mining Companies

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Letshitshi Toby Maleejane

Abstract

The research work was carried out to assess and evaluate the degree of adherence to corporate social responsibly (CSR) guidelines in 6 junior mining companies in South Africa (A. M. Thabazimbi Mine, Boipelo Mining, Waterfall Resources, Li Coal Resources, Ingwenya Mineral Processing and Assen Iron Ore Mine (PTY) Ltd). The degree of adherence to corporate social responsibility (CSR) guidelines was measured based on a composite measure proposed by Amor‐Esteban, Galindo‐Villardon and Garcia‐Sanchez (2020: 1914-1936). The survey was carried out by administering a questionnaire to 439 participants working in the 6 mining companies and by conducting personal interviews with 12 officials working in the same mining companies. Data was gathered by using quantitative and qualitative techniques. As such, 439 employees of the 6 junior mining companies completed a self-administered questionnaire, whereas 12 officials were interviewed as part of the study. The study found that 52% of respondents were satisfied with the extent to which junior mining companies adhered to corporate social responsibility guidelines and principles in the course of conducting routine mining operations. Results obtained from structural equations modelling showed that the level of adherence to CSR guidelines and principles in the 6 junior mining companies that were selected for the study is significantly influenced by the following 3 predictor variables. These factors were the ability to produce better products by adhering to CSR guidelines and principles, a track record of helping out local communities, and the promotion of awareness about good deeds. Similar results were obtained from personal interviews.

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