The Business Of Business Is Not Only Business: CSR In Peace And Security In Ghana

In recent years, Corporate Social Responsibility (CSR) has increasingly been exposed to political discourse. This is as the result of the social and environmental effects that emanate from corporate activities in contemporary times. There is no denying the fact that corporations are critical actors in the political, economic, social and cultural development of all countries. Besides providing goods and services, they are a source of livelihood for many and they pay taxes effectively to the government to carry out social interventions.

In North America, for instance, corporations, especially those in the extractive sector continue to play a leading role in economic growth and development. In 1993 for example, the extractive company’s contribution to the Peruvian economy was represented by $240 million paid in taxes to the government; $400 million spent on local purchases; $280 million in imported goods and accounted for over 11% of Gross Domestic Product (GDP) (Acheampong, 2004).

In Africa, the multinational corporations have had a significant impact on economic growth and development. In South Africa, for instance, gold mining companies alone contribute 27.4% in mineral revenues to the government and responsible for 56% of the country’s mine labour force (Mbendi Profile, 2005). Ghana, which is also Africa’s second most important producer of gold after South Africa has increased its contribution to gross foreign exchange earnings through the active role of the multinational corporations.

For instance, the companies registered under the Ghana Chamber of Mines (GCM) employ over 17,500 people (Ghana Chamber of Mine, 2012). Moreover, the latest economic and financial data released by the Central Bank of Ghana indicated that gold mining companies earned the Ghanaian government a revenue of 3.5 billion dollars in 2015 alone (Myjoyonline, 2016).

Notwithstanding the economic contribution of the multinational corporations, specifically mining companies, they are also bereft with challenges. Undisputedly, the negative environmental impact of surface mining, land alienation, poor compensation negotiations, forest destruction, water, air and land pollution, and importantly conflict between the companies and communities have caused heavy public criticisms against the companies. It is against this background that Agbesinyale (2003) observes the disagreement about the importance of the economic contribution of the mining companies in Ghana’s socio-cultural development.

In effect, the rampant public worries and displeasures against the companies at times develop into non-violent conflicts in the form of demonstrations, written threats to companies and withdrawal from the company’s engagements (Newmont Ghana Gold Limited, 2011). Consequently, following the violent conflict in 2005 over land rights between the large-scale mining companies and community members at Tarkwa in the Western region of Ghana, in which two people were killed and thirteen injured, the mining companies faced a massive public condemnation as not a good partner in development (Stickler, 2006), since there cannot be development without peace.

As Francis (2004) rightly puts, peace is a valuable public good and without peace, there cannot be development. Similarly, Quantson (2003) posits that peace is the basis for survival, stability, security and progress, hence no meaningful development can be achieved in the midst of lawlessness, confusion and chaos. Therefore, a discussion of the economic significance of the multinational corporations must address as its starting point the promotion of good governance, peace and security.

It is against this backdrop that mining companies in recent years are practising CSR, thereby providing social interventions (like the construction of schools, roads, hospitals, clinics, water sources, electricity and recreational facilities, creating employment etc.) as a stop gap measure against the social factors (lawlessness, tensions, conflicts etc.) that could hinder them from maximising profits.

In that regard, Amponsah-Tawiah and Dartey-Baah (2012) defined CSR as a strategic decision of an organisation to voluntarily act upon the social factors that have the potential of militating against the fulfilment of corporate goals. Although, CSR includes enhancing the social welfare and security of corporate staffs and their families, this article focuses only on the corporate responsibility in peace and security of the larger society. In other words, the social welfare and security of the greater number of people not part of the mining labour force.

Generally, companies in Ghana have begun using CSR as the basis for addressing the physical, social and the natural resource loss to promote community livelihood empowerment and to enhance company-community relations necessary for peace and security. According to Garvin, McGee, Smoyer-Tomic and Aubynn (2009), in Ghana, CSR is, thus touted as an effective way to ameliorate company-community disagreements at the micro level. The large-scale companies have played and continue to play pivotal role in peace and security in the country.

For instance, the Zoomlion Ghana Limited and the Jospong Group of Companies has provided a new elevator worth of $60,000 for the five-storey administration block of the Ghana Police Service Headquarters in Accra. The director of administration for Zoomlion Ghana, Mr Emmanuel Okomeng, said the provision of the elevator formed part of the company’s corporate social responsibility. He reiterate that his company was committed to collaborating with the security services to enhance peace and security in areas where most interventions are needed (Graphic Online, 2013).

Specifically, the Newmont Ghana Gold Limited (NGGL), one of the biggest multinational mining corporations in Ghana, located at the Asutifi North District in the Brong Ahafo region, continues to play a leading role in peace, security and development in the country via CSR. For example, since its operation in 2006, the company has undertaken diverse community development initiatives to increase access to potable water and sanitation facilities for twenty three thousand community people as a way of replacing the loss of quality water, without which could have generated into violent conflict. Again the company through its CSR has as well enhanced the capabilities of two thousand households in health, nutrition and education in its Asutifi North District mine (Newmont Ghana Gold Limited, 2005).

Significantly, NGGL continues to support the Ghanaian security services with protective and defensive logistics and equipment to enable them maintain peace and enhance security in the country. In 2009, NGGL handed over a 140,000-dollar transit housings to the District Police Command at Kenyasi number 1. Aside that, NGGL provides 120 litres of fuel to the Kenyasi number 1 and 60 litres of fuel to the Duayaw Nkwanta police stations per week (Boateng, 2009). The purpose of these supports is to foster crime prevention, and enhance peace and security in the district.

This is to say that, NGGL had accepted the fact that their negative activities on health, water quality and the social needs of the communities could slow peace and security. Hence, the Newmont Ahafo Development Foundation (NADeF), an office in charge of NGGL’s CSR in the Asutifi North District. NADeF is established to implement NGGL’s CSR projects to ensure that peace and security is prevailing in the communities.

Besides NGGL, a number of mining companies in Ghana have embarked on various social interventions aimed at maintaining peace and promoting security. For example, four mining companies in the Prestea Huni/Valley District, namely, the Golden Star Resources (GSR), AEL mining services, Rockshure International, Erdmac mining services, and Karibiana Pools also constructed a 40,000-Ghana-Cedi Police Check Point, constituting a charge office, two rest rooms, washrooms, electricity and mechanised borehole at Tintimhwe.

The aim of the facility is to enhance peace and security, and to curb the increasing robbery cases recorded in Tarkwa-Bogoso (All Ghana News, 2014). Furthermore, Roman, Hayibor and Agle (1999) in their meta-analysis of studies relating corporate social performance to corporate financial performance, found a trend suggesting that good CSR was, in fact, good for business financial performance, including promoting a peaceful atmosphere for business existence.

Obviously, the above claims show that the business of business is not only business. In spite of these efforts, there is limited information and no single comprehensive framework document on CSR in Ghana exists (Afrane & Adjei-Poku, 2013). Based on Afrane and Adjei-Poku’s observation, I recommend that key stakeholders and policy makers, including the Ghana Chamber of Mines, Ghana’s Mineral Commission, Non-Governmental Organisations (NGOs). And Trade Union Congress, Ghana’s Labour Commission, Ministry of Lands and Natural Resources, Ministry of Environment, Science and Technology etc. should work in partnership to draw a comprehensive policy framework regarding CSR and integrate it into Ghana’s business laws. With this, CSR will not be a voluntary action on the part of corporations, but a mandatory obligation.

Author: Abdul Karim Issifu (Senior Research Assistant/MPhil Candidate)

Affiliation: University of Cape Coast, Ghana-Institute for Development Studies

E-mail:[email protected]
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