Factors that affect adherence to corporate social responsibility guidelines and principles in South African junior mining companies

Abstract

The study aimed to assess and evaluate the extent to which Corporate Social Responsibility (CSR) principles and guidelines are adhered to in 6 South African junior mining companies. A report issued by the South African Chamber of Mines (2017) for the annual year 2015/2016 recommends that CSR guidelines and principles are vital for ensuring sustained growth, development and profitability in emerging and junior mining companies. CSR principles enable companies to adhere to business ethics, good leadership and good corporate governance principles. The study aimed to use quantitative and qualitative methods of data collection and analysis in the study. As part of the quantitative aspect of study, data was collected from 439 employees of junior mines by using a pre-tested, validated and structured questionnaire of study. As part of the qualitative aspect of study, data was collected from 12 officials who are responsible for CSR related activities in the 6 junior mines by conducting individual in-depth interviews by using a tape recorder. Interviews were later transcribed, coded and tallied. Quantitative data analysis was performed by using methods such as confirmatory factor analysis, ordered logit regression analysis and structural equations modelling. Qualitative data analysis was performed by using thematic analysis and triangulation. The study found that 52% of respondents were satisfied with the extent to which junior mining companies adhered to CSR guidelines and principles in the course of conducting routine mining operations. Adherence to CSR guidelines and principles was significantly influenced by 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