The effects of CSR external and internal drivers on manager motivation and stakeholder relationships – exploring the pathways toward creating shared value

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.