Corporate Social Responsibility Agreements Model for Community Development: The Case of Golden Star (Bogoso/Prestea) Limited and its Mine Local Community

Abstract

In Ghana, community development is regarded by mine local communities as the most important aspect of Corporate Social Responsibility (CSR), to the extent that often community development is perceived to be a statutory responsibility of mining companies. Consequently, mine local communities demand for more and more, sometimes prohibitively expensive, contributions towards community development. The inability of mining companies to meet all the demands often leads to unsavoury relation between mining companies and their host communities with concomitant adverse effect on mining operations. This constitutes a business risk that needs to be addressed properly by shifting from the earlier practices of making voluntary contributions towards community development to making sustainable community development an integral part of the mining business. This paper presents the evolutionary strategic models, with differing principles and action plans, used by Golden Star (Bogoso/Prestea) Limited (GSBPL) over the years to manage the development of its Bogoso/Prestea Mine Local Community (BPMLC), videlicet from a poor Philanthropic Community Assistance Model (PCAM) to an improved but ineffective Community Driven Assistance Model (CDAM) and eventually to the current effective, successful CSR Agreements Model (CSRAM).  The paper also highlights the lessons learnt from the negotiation process that led to formulation of the CSRAM as well as the benefits and successes resulting from its implementation and the challenges. It is concluded that mutual understanding, tolerance, transparency, trust, commitment and accountability are key to the successful management of CSR and community development.

Keywords: Social Responsibility, Agreements Model, Mining Communities