Abstract:
The economic role of mining in South Africa dates back to the 1800s when coal,
diamonds and gold were discovered, and platinum later in 1924, with mining having
played a pivotal role in the socio-economic evolution of South Africa. Noting the
history of apartheid and a plethora of other challenges, the mining industry has little
to show in terms of transforming the industry and creating economic and social value
for the host communities. Corporate Social Responsibility policies were introduced
in an effort to link economic benefits to social benefits, thus creating win-win
outcomes for all stakeholders. Despite these efforts, the stakeholders are of the view
that the mines are not doing enough, hence the social capital with the surrounding
communities remains low.
The purpose of this research was to explore the effects that internal and external
drivers of CSR have on mine management motivations for the choice of CSR projects
and how these choices are interpreted by the primary stakeholders. Further, the
study also explored the antecedents to the operationalisation of Creating Shared
Value in the context of South African mining companies and their surrounding
communities, having an appreciation of what the sources of conflict are. The study
found that management motivation and organisational strategies are influenced by
both the internal and external driver, with varying degrees depending on the senior
executive priorities. The primary stakeholders and mine management are in conflict
and the current relationships are non-value creating and collaboration is nonexistent.
Moreover, the study also showed that though there is conflict and the
perception is negative, there are steps that can be taken to address the relational
issues identified.
As a contribution to the building of CSR-CSV transitioning theory, a conceptual
framework was presented, covering the importance of sensing the environment to
aid the development of context relevant strategies. The framework further highlights
the transitional elements that strategists can use to develop value creating
relationships with their legitimate primary stakeholders. Emphasis is given to
engagement, collaboration and feedback as key elements to building value creating
relationships, which in turn aid the creation of shared value and sustainability of
business and communities.
