Corporate Social Responsibility in South Africa and Ghana: a Comparison of Successes, Failures and Futures in a “Developed” and an “Undeveloped” African Country

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Corporate Social Responsibility in South Africa and Ghana: a comparison of successes, failures and futures in a “developed” and an “undeveloped” African country Few industries affect the social, economic and environmental sectors to the extent that the mining industry does. As minerals development expanded, so the international awareness of its impacts grew. Mining-related legislation, both internationally and nationally, has evolved significantly in the past two decades, actively aimed at ensuring Corporate Social Responsibility (CSR), where companies are held accountable for their actions.In developing countries like South Africa and Ghana that are heavily dependent on gold trade and the associated international investment, the…show more content…
In 2002 the goal for black ownership in the mining sector was set at 26% within 10 years (Fig, 2005). BEE was particularly important in the mining sector, as in order to obtain mining rights, businesses had to meet the requirements of a BEE ‘scorecard’. A number of principles have been introduced to target human rights, a major CSR concern in SA. These include Voluntary Principles on Human Rights and Security and the OECD Risk Awareness Tool for Multinational Enterprises in Weak Governance Zones (Hamann, 2009). Another important milestone was the Kings Report, released in 2002, which outlined the CSR requirements for companies, including “recogniz[ing] that stakeholders such as the community in which the company operates, its customers, its employees and its suppliers amongst others need to be considered when developing the strategy of a company” (Visser, 2005). It also requires that businesses report annually on their social, transformation (including BEE), ethical, safety, health and environmental management policies. A positive and innovative spinoff of the King’s Report was the introduction of a Kings Index on the Johannesburg Stock Exchange. Companies are required to meet the criteria of the King’s Report in order to list with the JSE, providing a fiscally competitive incentive to adopt CSR principles (Dale, 2005). This progressive legislation forms the beginnings of

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