Multinationals and Corporate Social responsibility in developing countries: The role of multinational mining companies in community development in Ghana

Abstract

The role of multinational companies in today‟s global economy, and their impact on host countries, cannot be overemphasised. As multinationals go abroad, a lot is expected of them from host countries in the areas of employment, taxation, and social investments. Today‟s multinational companies are judged not only in terms of financial performance but also with regards to the impact of their operations on the social wellbeing of host countries and communities. In recent times, host communities have become vociferous in demanding community development from foreign investors, thereby, making corporate social responsibility (CSR) a subject of public concern. This study critically examines the rationale behind corporate social responsibility in two multinational mining companies operating in Ghana (Goldfields and Newmont), reporting and analysing results from interviews with company managers as well as with host community representatives. The findings suggested a duality of motives in the companies‟ social investments; CSR is not about "doing good" because it is morally right, it has also become a tool used by companies to reduce uncertainty and enhance productivity in their operations.