Corporate community engagement (CCE) in Zimbabwe's mining industry from the Stakeholder Theory perspective

Abstract

Mineral extraction is one of the key drivers of Africa’s economies and is also one of the largest industries in the world. In many African countries, including Zimbabwe, mining contributes to profound parts of the economy and remain the engine for economic growth. In recent years, and following the continual exploitation of minerals, mining companies have been scrutinized as a major cause of social, environmental, and economic problems faced mainly by communities at the margins. In this regard, mining companies are widely perceived to be prospering at the expense of adjacent communities, who are the primary recipients of the externalities, mainly negative, from mining operations. Due to incongruent stakeholder interests conflicts have erupted given the peculiar case of the extractive industries in Zimbabwe. Having realised the differences among stakeholder interests over minerals, in the extractive industry the study sought to answer this question: how is CCE understood by different stakeholders? And how is CCE measured by the same stakeholders?. The focus of the study is to evaluate the meaning of CCE from multiple stakeholders in the extractive industry in Zimbabwe; and to analyse how CCE is measured by identified stakeholders. In order to satisfy the stated objectives, the study employed mixed research method. This study revealed similarity in understanding of CCE and its usefulness amongst the different stakeholder groups. Of cognitive importance is the realisation by stakeholders on the need for proactive communities and corporate investment into community for effective partnerships. Collaboration, empowerment, inclusion, trust and organisation emerged to be the major facilitators for CCE. The study presents operative CCE according to the obligations and expectations of stakeholders. Having realised that mining industries are particularly susceptible to conflict between stakeholders, the study suggests proactive desire to mitigate these conflicts through CCE in the mining industry. In this respect, community development, peace and stability and strong economy are the major outcomes of effective CCE. The study recommends participation of resource owners in planning, implementing, monitoring and evaluation as well as dividends sharing of mining projects as advocated for by the CCE Model. It is also recommended that the adoption of the CCE Model will ensure a sustainable and harmonious coexistence between the predominantly capitalistic mining concerns and the resource owners and solve part of the current impasse to business and community development.