Mikaela 2015

© University of Cape Coast https://erl.ucc.edu.
gh/jspui
UNIVERSITY OF CAPE COAST
AN ASSESSMENT OF THE CORPORATE SOCIAL
RESPONSIBILITY POLICIES AND ACTIVITIES OF GOLDEN STAR
(WASSA) LIMITED
HAMZA MIKAELA
2015
Digitized by Sam Jonah Library

© University of Cape Coast https://erl.ucc.edu.gh/jspui
UNIVERSITY OF CAPE COAST
AN ASSESSMENT OF THE CORPORATE SOCIAL RESPONSIBILITY
POLICIES AND ACTIVITIES OF GOLDEN STAR (WASSA) LIMITED
BY
HAMZA MIKAELA
Dissertation submitted to the Department of Accounting and Finance of the
School of Business, University of Cape Coast, in partial fulfillment of the
requirements for the award of the master of Business Administration (General
Management)
OCTOBER, 2015

DECLARATION
Candidate’s Declaration
I hereby declare that this dissertation is the result of my own original research
and that no part of it has been presented for another degree in this University
or elsewhere.
Candidate’s Signature………………………… Date……………...
Name: Hamza Mikaela
Supervisor’s Declaration
I hereby declare that the preparation and presentation of this dissertation
were supervised in accordance with the guidelines on supervision of
dissertation laid down by the University of Cape Coast.
Supervisor‘s Signature………………………… Date……………..………….
Name: George Tackie

ABSTRACT
Mining companies in Ghana receive criticism from inter alia the
media, civil society organizations, Governments and non-governmental
organisations (NGOs) for not properly responding to the challenge of
corporate social responsibility (CSR) to compensate for the negative effects of
their activities in host communities. Although some mining companies plan
and prosecute CSR policies and projects to improve their public image and
increase economic opportunities and improve social welfare of people living
in mining communities, these are perceived to be inadequate. This study
examined CSR activities undertaken by Golden Star (Wassa) Limited.
Using a purposive sampling technique, the researcher sampled 100
respondents and used mixed research methods including observations,
administration of questionnaires and conduct of interviews, data on GSWL’s
CSR activities in its catchment communities were gathered and analysed. The
results were discussed and the study findings were arrived at. It was found that
GSWL has CSR policies that shape its social responsibility activities and serve
as workable set of criteria for assessing and benchmarking its CSR
achievement in its catchment communities. GSWL maintains good relations
with the communities it operates in by its CSR activities. However challenges
were found to impede the implementation of CSR policies.
It is recommended that GSWL’s implementation of CSR policies and
projects with the catchment communities should take a wider participatory
approach of involving local associations, chiefs, and opinion heads. CSR
projects should be carried out by GSWL with the local community to promote
collaboration and increase local learning and knowledge transfer.
ii

ACKNOWLEDGEMENTS
My profound and special gratitude goes to my lecturers and particularly
my supervisor, George Tackie, who has been of great help and always worked
towards the best output for this dissertation, and all the workers of Golden Star
Wassa Ltd I express my gratitude.
This work would not have been fruitful if not for the great support from the
Community Relation Department of Golden Star Wassa Limited (GSWL),
especially the Superintendent Mr. Zacharia Issah, and Mr. Haneef Keelson
who took the pain upon themself to organise the data for this dissertation, I
really appreciate your assistance.
My family deserves special thanks for their valueless contribution to my
education, upbringing and my life in general. Hajia Fatimatu Ahmed, Late
Father, my lovely wife, Adizatu Iddrisu, my children Aliyu Anderson Tijani,
Fatimatu and Baraka, and to my entire family, siblings, I love you all so much;
my love for you will never end.
Finally, to my friends and group members particularly Rebecca
Arhinfu, Emmanuel Yobe Kombat, Joyce Lamptey, Kwesi Frimpong, Diana
Kusi, Irene Mbro, Forster Donkor, Wisdon Kpongorn, Lawrence who have
been supportive in one way or the other during this dissertation, I thank you
all.
iii

DEDICATION
This dissertation is dedicated to my entire Family.
TABLE OF CONTENTS
iv

Content Page
DECLARATION ii
ABSTRACT iii
ACKNOWLEDGEMENTS iv
DEDICATION v
TABLES OF CONTENTS vi
LIST OF TABLES ix
LIST OF FIGURES x
CHAPTER ONE INTRODUCTION 1
Background to the Study 1
Statement of the Problem 4
Objectives of the Study 6
Research Questions 6
Significance of the Study 6
Scope of the Study 7
Limitations of the Study 8
Organization of the Study 8
CHAPTER TWO REVIEW OF RELATED LITERATURE 9
Introduction 9
Corporate Social Responsibility: Developments and Definitions 9
The Concept of Corporate Social Responsibility and Related Concepts 11
Theories to Explain Corporate Social Responsibility 12
Legitimacy Theory of Corporate Social Responsibility 13
Stakeholder Theory of Corporate Social Responsibility 13
Economic Theory of Corporate Social Responsibility 14

Environmental Theories of Corporate Social Responsibility 15
Corporate Social Responsibility in Africa 16
Challenges and Limitations of CSR Implementation 17
Corporate Social Responsibility (CSR) in the Mining Sector in Africa 18
Measures Corporate Social Responsibility (CSR) 20
CHAPTER THREE METHODOLOGY 23
Introduction 23
Research Design 23
Profile of Golden Star (Wassa) Limited and the Study Area 24
Population of the Study 27
Sample and Sampling Method 28
Sources of Data 28
Data Collection Methods 28
Field Work and Ethical Consideration 30
Data Analysis 31
CHAPTER FOUR RESULTS AND DISUSSIONS 33
Introduction 33
Corporate Social Responsibility Policies of Golden Star (Wassa) Limited 33
CSR Activities Undertaken by GSWL in its Catchment Communities 38
Satisfaction with GSWL’s CSR in Catchment Communities 47
Demographic Profile of Respondents 48
Gender of Respondents 49
Level of Education of Respondents 49
Employment Status of Respondents 50
Views of Respondents in Various Categories of CSR Activities 51
vi

Employment and Local Economic Development 51
Provision of Alternative Livelihood Opportunities 53
Relationship between GSWL and its Catchment Communities 54
Challenges of GSWL CSR Practices in the Catchment Communities 55
CHAPTER FIVE SUMMARY, CONCLUSION AND
RECOMMENDATIONS 56
Introduction 56
Summary 56
Conclusions 58
Recommendations 59
Suggested Areas for Future Research 61
REFERENCES 62
APPENDIX 76
LIST OF TABLES
vii

Table 1: Number of Students from Local Communities on the Scholarship
Scheme 42
Table 2: Gender of Respondents 49
Table 3: Level of Education of Respondents 50
Table 4: Employment Status 51
Table 5: Employment and Local Economic Development 52
Table 6: Provisions of Alternative Livelihood Opportunities 53
Table 7: Relationship between GSWL and its Catchment Community 54
viii

LIST OF FIGURES
Figure 1: Location of Akyempim on the Ghana Map 26
Figure 2: Golden Star’s Three-Tier Community Engagement Plan 36
Figures 3: Subriso Community Centre 40
Figure 4: Akyempim 6 Unit Classroom Blocks 41
Figure 5: Ningo Teachers Quarters 41
Figure 6: Water Boozer 44
Figure 7: Dust Monitoring 44
Figure 8: Mpohor Market 45
Figure 9: Akyempim Aqua Privy 46
Figure 10: Mpohor WC Toilet Facility 46
ix

CHAPTER ONE
INTRODUCTION
Background to the Study
Corporate enterprises perform business activities to create value and
make profit for their owners as well as deliver other benefits to stakeholders.
They are value-driven, performance-driven, and stakeholder-driven (Maignan
& Ralston, 2002). Corporate enterprises seek to make profit because they have
to survive and remain as going-concerns, succeed and achieve competitive
advantages and ultimately maximize shareholder wealth.
However, as crucial as their profit motivations may be, corporate
enterprises must consider wider social, ethical and environmental concerns in
their business decisions and operations. They must have a commitment
towards sustaining the people and the environment in which they operate. This
is because business depends upon society (Joyner & Payne, 2002) and the
environment in which it operates.
CSR is a modern business concept which attempts to capture the
necessity for corporate enterprises’ to behave in socially responsible ways in
their business environment. CSR has been proved to have significant impact
on organization’s economic and financial performance (Luo & Bhattacharya,
2008). Thus CSR is a key component of corporate strategy of most corporate
enterprises. Some corporate enterprises are incorporating social responsibility
as an important aspect of corporate management (Swaen & Chumpitaz, 2008).
In Africa, CSR is one way corporate enterprises can impact
communities and environments in which they work. With CSR corporate
enterprises can make meaningful contributions to improving governance,

ethical, labour, environmental and economic conditions of communities in
African countries in which they operate while remaining sensitive to
prevailing religious, historical and cultural contexts (Visser, 2007). CSR is
associated with multinationals, which, given their vast wealth compared to the
poverty of African countries and communities in which they operate, can have
meaningful impact on communities in ways governments may not be able to
do (Kim, Lee, Lee & Kim, 2010). It is believed that CSR is also a way big
corporations can counteract negative perceptions indigenous people have
about their business activities (Klin et al. 2010). This is true of multinationals
companies involved in mining activities in mineral rich countries of Africa.
In countries of Africa endowed with mineral resources, mining is the
economic activity many multinational enterprises engage in. Mining activities
bring economic gains to mining companies, communities and countries.
However, in exploiting mineral resources it is important that the activities
corporate enterprises engage in be profitable, contribute to the socio-economic
development of the communities endowed with the mineral resources, and be
environmentally sustainable as well (Kennedy, 1997). CSR is one way mining
companies can compensate for their social and environmental impacts and
perceived exploitation of mineral resources in local communities (Hamann &
Kapelus, 2004). Most mining companies are using CSR to remain in good
standing in the public eye and secure a ‘license to operate’. Some corporate
enterprises use CSR for ‘greenwashing’ or mere window-dressing. However
others are genuinely making impact with CSR policies projects in Africa.
In Ghana there appears to be grave concerns in the mining industry.
Many stakeholders are demanding ethical, social and environmental

responsibility from mining companies (Amponsah-Tawiah & Dartey-Baah,
2011) given that mining companies are perceived to be achieving profits at
great environmental and social costs to people, communities and the country
as a whole. There is no comprehensive policy framework and institutional
body to regulate mining companies and monitor their CSR policies and
activities. The scattered laws and policies that touch on CSR of mining firms
are uncoordinated and not effective. Individuals, advocacy groups, private and
public agencies seeking to hold mining companies responsible for the effects
of their activities and poor social responsibilities usually encounter difficulties
in doing so because of the absence of CSR laws.
Since no national CSR policy presently exists in Ghana, it is assumed
that mining companies in Ghana have their individualized concepts of CSR. It
is perceived that the CSR policies and practices of most mining companies in
Ghana are primarily meant to promote their own legitimacy in business than,
in a much wider sense, lead to the improvement of social welfare and
sustainable environment. Mining companies’ CSR practices depend on
individual perceptions of responsibility and their role in the communities in
which they operate. CSR activities are based on mining companies’ initiatives.
Golden Star Resources Ltd, incorporated on May 15, 1992, is an
international gold mining and exploration company producing gold in Ghana.
The Company owns controlling interests in several gold properties in
southwest Ghana. Golden Star Resources claims that CSR is one of the core
values that guide its business activities and relationships. This study is on the
CSR policies and practices of Golden Star Resources in communities in the
Wassa District of the Western Region of Ghana where it has operations.

Statement of the Problem
Mining activities in Ghana bring economic gains to mining companies,
local communities and the country. However there are social, ethical and
environmental concerns of mining activities in Ghana. The exploration,
extraction and processing of mineral resources are activities widely regarded
as one of the most environmentally and socially disruptive undertakings by
business (Peck & Sinding, 2003). Social disruptions are about the change in
social structures and systems of communities in which mining activities take
place. Mining activities have permanent, harmful, irreparable, and irreversible
effect on the environment leading to events such as heat waves, droughts, and
floods. Many of the environmental disasters in mining areas in Ghana are
leading to growing public concern about the activities of mining companies.
Mining companies in Ghana receive criticism from inter alia the
media, civil society organizations, Governments and non-governmental
organisations (NGOs). They are accused of not properly responding to the
challenge of corporate social responsibility (CSR) to compensate for the
negative effects of their activities in host communities. Mining communities in
Ghana as custodians of mineral resources have unmet expectations of mining
companies that operate in their communities. Although some mining
companies plan and prosecute CSR policies and projects to improve their
public image and increase economic opportunities and improve social welfare
of people living in mining communities, these are perceived to be inadequate.
Golden Star (Wassa) Limited (GSWL) has as one of its core values as
a mining company a commitment to be socially responsible in its catchment

communities. In an effort to fulfil its corporate social responsibilities GSWL
has over the years executed many projects geared towards improving the
livelihood of people living its catchment communities and the sustainability of
the environment. However there are still concerns about the operational
activities of GSWL in its mining communities. This is set against a
background in which mining companies are already under considerable
pressures arising from intensified media coverage of their activities. Interest
groups, civil society organizations, government, private think tanks and other
public institutions as well meaning citizens of Ghana express concern about
the state of affairs in some mining areas in the Western Region of Ghana given
frequent reports of perceived over exploitation and mismanagement of mineral
resources, low standard of living and poor economic and social development
of mining communities in these areas. Notable Civil societies concerned with
CSR in the mining sector including Ghana Extraction Industries Transparency
Initiative (GHEITI), civil society groups and Wassa Association of
Communities Affected by mining [WACAM], constantly complain about
mining activities that have deprived many communities of their livelihoods.
Undoubtedly, for all types of business, how a company is viewed and
evaluated by stakeholders is likely to have a major impact its operations and
interactions with its stakeholders and is, therefore, a matter of significant
managerial interest. It is not known what GSWL’s CSR policies are and its
activities although its claims one of its core values as a mining company is the
commitment socially responsible action in its catchment communities. Thus
this study sought to examine GSWL’s CSR policies and activities in
communities in the Wassa District of the Western Region of Ghana.

Objectives of the Study
The study sought to assess Golden Star (Wassa) Limited’s CSR
policies and activities in its catchment communities. Specifically is sought to:
1. Assess the nature of Golden Star (Wassa) Limited’s CSR policies.
2. Identify activities undertaken by GSWL in its catchment communities
to fulfil its CSR policies.
3. Ascertain stakeholder’s level of satisfaction with GSWL’s CSR
policies and activities in the catchment communities.
4. Identify challenges GSWL faces in implementing its CSR Policies.
Research Questions
To meet the objectives of the study, the following questions were
specifically required to be addressed
1. What is the nature of Golden Star (Wassa) Limited’s CSR policies?
2. What activities are undertaken by GSWL in its catchment communities
in fulfilment of its CSR policies?
3. What is the level of stakeholder’s satisfaction with CSR policies and
activities of GSWL in the catchment communities?
4. What challenges constrain GSWL from implementing its CSR
Policies?
Significance of the Study
This study focused on CSR policies and activities of GSWL in
Ghana’s mining industry. Thus the study will help stakeholders see what

GSWL’s CSR policies and activities are and how whether they are successful
in when working together with their catchment communities. CSR is viewed
as an integral part of GSWL’s operations and an instrument for improving the
communities they operate in. It has made clear the level of success as well as
challenges in the implementation of its CSR policies and activities.
Thus this study has unveiled the scope for GSWL to get together to
partnerships with other stakeholders, experts, stakeholders and governments in
a way that can influence the achievement of community development goals.
The study represents a significant step forward in understanding the
principles and practices of social responsibilities as partner in its catchment
communities. It contributes to CSR literature and suggests areas where future
studies could consider. This will help to overcome the limitations of the
present and previous studies and improve CSR practices in the mining sector.
Scope of the Study
Scope is an integral part of any research endeavour as it helps identify
and refine issues, establish analysis criteria, and explore possible alternatives
and their probable effects on the results of the study. Scope is useful to
determine if issues are specifically related to the proposed study. The study
took place in the Wassa District of the Western Region of Ghana. It focused
on GSWL CSR policies and activities. This was to help empirically assess
how GSWL’ CSR policies were being put into practice and how this is helping
achieve business profitability and community development objectives.

Limitations of the Study
The study was limited primarily by the methods, data quality and
analysis employed. The data was primarily qualitative and the data collection
procedures involved the use of perceptual measures. The researcher relied on
the respondents’ assessment of the issues being investigated in explaining the
results of the study. The researcher encountered difficulties in collecting data
as some of the people were not ready to participate in the study. Despite these
limitations, this study was successful in meeting its objectives.
Organization of the Study
The study is organized into five chapters. Chapter One deals with the
introduction which comprises background to the study, statement of the
problem, objectives of the study and research questions, significance of the
study, limitations and delimitations of the study. Chapter Two focuses on the
literature review. The definition and evolution of the concept and definitions
of CSR and issues relating to it were reviewed. Chapter Three is the
methodology employed for the study. It discusses the research design,
approach and methods as well as the population and sampling procedures of
the study. Chapter Four is the results and discussion of the study arranged
under key themes drawn from the analysis of data based on the research
objectives. Chapter Five presents the summary of the findings, conclusions of
the study and recommendations as well as suggested areas for future research.

CHAPTER TWO
REVIEW OF RELATED LITERATURE
Introduction
This chapter is the review of literature. The concept of CSR and other
related concepts and theories are reviewed in an integrated way to provide a
theoretical framework for the study. Empirical literature is reviewed to give
substance to theories. This review helps situate the study in literature.
Corporate Social Responsibility (CSR): Developments and Definitions
In the closing decades of the twentieth century and the early decades of
this century corporate social responsibility has emerged as the new buzz word
in business and society. CSR has gained currency in use and has become part
of business policies and practices up to a point where it is seen as the latest
management alternative (Guthey, Langer & Morsing, 2006). Although
considered a relatively new concept in business appearing in the literature only
in the last few years, the demands for socially responsible actions by corporate
has been around since commerce began (Asongu, 2007). CSR is not a
relatively new concept but is an old one.
In modern times, the concept of social responsibility of businesses was
first mentioned by Shelton in 1924 (Chen & Wang, 2011). However it is
argued that the modern era of CSR began in the 1950s with Bowen‘s (1953)
publication of Social Responsibilities of the Businessman. Bowen (1953)
defined the social responsibilities of businessmen as “... the obligations of
businessmen to pursue those policies, to make those decisions, or to follow
those lines of action which are desirable in terms of the objectives and values

of our society”. The concept has evolved and its definition has undergone
developments with increase in its use. The concept came into common use in
the early 1970s with the rise of multinational corporations on the global
economic and business landscape. Since then the concept of CSR has
dominated business, academic, political and social debates resulting in
multiple definitions of it in company policy documents, political documents,
academic papers and civil society organizations’ documents among others.
Attempts made to define the concept have been many. In general
corporate social responsibility (CSR) entails a set of standards by which
organisations can impact their environment with the potential of creating
sustainable development (Helg, 2007). Ullmann (1985) described CSR as “the
extent to which an organization meets the needs, expectations, and demands of
certain external constituencies beyond those directly linked to the company’s
products/markets” (p. 543). It refers to the “obligations that companies have to
integrate environmental and social parameters into their modus operandi and
long-term development policies” (Swaen & Chumpitaz, 2008, p. 7). Moir
(2001) defined CSR as: “the continuing commitment by business to behave
ethically and contribute to economic development while improving the quality
of life of the workforce and their families as well as of the local community
and society at large” (p.18). CSR are “practices that improve the workplace
and benefit society in ways that go above and beyond what companies are
legally required to do” (Vogel, 2005, p. 2).
All the definitions mentioned above agree that CSR is about corporate
behaviour ethically and sustainably for the benefit of all stakeholders in
10

society. Stakeholders are any groups or individuals who can affect or are
affected by the achievement of the organization‘s objectives (Freeman 1984).
Although there have been many attempts to define the concept of CSR,
a consensus has yet to be reached as to its standard definition. CSR is still
elusive in theory and a consensus has yet to be reached on how it should be
universally defined. CSR is an ethical concept that is gaining currency and
ascendency in use. However, since there is little consensus on what CSR
means, there is a cause for concern. Owing to varying definitions the concept
of CSR has led to the emergence of a variety of practices (Freeman 1984).
The Concept of Corporate Social Responsibility and Related Concepts
A plethora of concepts have emerged to express the role and
responsibilities of business in society including Business Ethics, Corporate
Citizenship, Corporate Social Investment, Sustainability, Corporate
Environmental Management, Business and Society, Business and
Globalisation, Stakeholder Management and Governance (Matten & Moon,
2004). Given its multidimensional nature and relative onset, CSR is
considered the catchall phrase for all these well-known constructs. Thus the
concept of CSR encompasses many dimensions of business activity ranging
from the ethical, social, to economic to the environmental. CSR is in essence a
collaborative of business and societal ideals. It is viewed as the relationship of
business organisations with society as a whole, and the need for organisations
to align their values with societal expectations (Atuguba & Hammond, 2006).
Given its multifaceted nature, CSR is related to some of the
fundamental questions of human rights, labour, the environment and
11

corruption. Although it is used synonymously with other concepts according
to Matten & Moon (2008) “CSR is an umbrella term overlapping with some,
and being synonymous with other, conceptions of business-society relation”.
Thus while it is acknowledged that CSR overlaps with other concepts and that
these concepts have informed and shaped its development, it must be noted
that it represents a far bigger business-society dynamic and goes beyond these
concepts; combining essential understanding of each concept and extending its
reach to include far more areas than each of them. The International Standards
Organization (ISO) sees CSR as ‘a balanced approach for organizations to
address economic, social and environmental issues in a way that aims to
benefit people, communities and society’.
CSR is still in popular use, even though competing, complementary
and overlapping concepts are all vying to become the most accepted and
widespread descriptor of the field. CSR has become an established umbrella
term which embraces both the descriptive and normative aspects of business-
society relations, places an emphasis on businesses’ profitability as well as its
accomplishment of its social responsibility policies, practices and activities.
Theories to Explain Corporate Social Responsibility
Theories of CSR are frameworks that try to organize knowledge to
explain activities of CSR policies and activities. CSR activities of
organizations are underpinned by theories that have been developed overtime.
Some of these theories help to explain social disclosures pattern by
organisations (Cooke & Haniffa 2005). These theories are reviewed below.
12

Legitimacy Theory of Corporate Social Responsibility
Legitimacy theory is whereby corporate social disclosures are
motivated by the corporate need to legitimise activities (Hogner, 1982). This is
where corporate management will react to community expectations (Guthrie &
Parker, 1989). Thus, companies carry out activities that are acceptable by the
community. This implies that companies will be cautious to ensure their
activities and operations are acceptable to the community (Wilmshurst & Frost
2000). CSR can be used to appease some of the concerns of members of
communities and also as a proactive legitimation strategy to obtain continued
inflows of capital and to please ethical investors (Cooke & Haniffa 2005).
Stakeholder Theory of Corporate Social Responsibility
The “stakeholder theory begins with the assumption that values
(ethics) are necessarily and explicitly a part of doing business” (Freeman
Wicks & Parmar, 2004, p.364). The stakeholder theory was popularized by
Freeman (1984) who sees the firm as a series of connections of stakeholders
that the managers of the firm attempt to manage. He defined a stakeholder as
“any group or individual who can affect or is affected by the achievement of
the organization's objectives” (p. 46). The main proposition of the stakeholder
theory is that corporations have more extensive duties to key stakeholder
groups like employees, communities, customers, suppliers, and society as
whole, than is strictly required by law. Murray and Vogel (1997) state that the
way the firm is viewed and evaluated by stakeholders underlies all subsequent
interactions. Stakeholders, acting either formally or informally, individually or
13

collectively, are a key element in the firm’s external environment that can
positively or negatively affect the organisation (Murray & Vogel 1997).
Fontaine, Haarman, and Stefan, (2006) pointed out, “The definition of
a stakeholder, the purpose and the character of the organization and the role of
managers are very unclear and contested in literature and has changed over the
years” (p4). Gibson (2000) for example, argue that shareholders are but one of
a number of important stakeholder groups. “In the same way that a business
owes special and particular duties to its investors…it also has different duties
to the various stakeholder groups” (Gibson, 2000, cited in Heath & Norman,
2004, p.2). Heath & Norman (2004) argue that this idea of “shareholders as
just another stakeholder group” is not one that underlies corporate law in most
market economies. In corporate law, shareholders are given preeminent status
as the owners of the firm. Shareholders have the right to treat the firm as a
vehicle to maximize the return on their investment. Heath and Norman (2004)
argue that “Stakeholder theorists have underestimated the extent to which
shareholder interests and shareholder control are crucial to furthering the
interests of other stakeholders of the firm” (p2).
Economic Theory of Corporate Social Responsibility
Another theory that explains CSR activities is the economic theory.
This theory associates CSR and financial performance by taking consideration
of cost-related advantages, market advantages and reputation advantages
(Chamhuri & Wan Noramelia 2004). CSR is said to improve the company’s
profitability and financial performance (Van der Laan, Van Ees & Van
Witteloostuijn, 2008) create customer loyalty (Mandhachitara & Poolthong,
14

2011), and enhance firm reputation (Chen & Wang, 2011) and contribute to
the continuing health and growth of business (CCPA, 2000). Carroll’s pyramid
of CSR, (that are, economic, legal, ethical and philanthropic) depicts, that
economic category as the foundation upon which all others rest and then built
upward through legal, ethical, and philanthropic categories. Carroll (1979)
argues that without economic responsibility, it would be impossible to take
other responsibilities. Carroll (1999) insists that economic viability is
something business does for society. Lord Sieff, a former chairman of Marks
& Spencer plc stated that: “Business only contributes fully to a society if it is
efficient, profitable and socially responsible” (cited in Moir, 2001, p.5).
Environmental Theories of Corporate Social Responsibility
Environmental theories of CSR concern theories that try to explain the
environmental implications of the company‘s operations, products and
facilities; eliminate waste and emissions; maximize the efficiency and
productivity of its resources; reward for externalities and minimize unethical
practices that might adversely affect the enjoyment of the country‘s resources
by future generations. Environmental theories emphasize the preservation and
conservation of natural resources such as conducting recycling activities, noise
reduction action plan to pursue noise improvement initiatives, water and
process treatment and compliance with authority regulations and requirements.
Many enterprises recognized the importance of their responsibilities towards
the environment and take them seriously by setting targets for continually
improving their performance. In the global economy, where the internet, the
news media and the information revolution shed light on business practices
15

around the world, companies are more frequently judged on the basis of their
environmental stewardship. Corporate organisations need to be sensitive to
happenings in their environment and ensure sustainable practices since these
contribute to the wellbeing of the citizenry (Gibson, 2000).
Corporate Social Responsibility in Africa
CSR involves businesses identifying their stakeholder groups and
incorporating their needs and values within the strategic and day-to-day
corporate decision-making process, thus a means of analyzing the inter-
dependent relationships that exist between businesses, the economic systems
and the communities within which they are operating. Academics and
practitioners are increasingly focusing their attention on CSR, because of its
significant impact on organization’s economic and financial performance (Luo
& Bhattacharya, 2008). In Africa, the definition and understanding of CSR is
fraught with assertions that the concept is a ‘western-imposed agenda’ (Visser
& Tolhurst, 2010). According to Visser and Tolhurst (2010, p.1) “In the vast
majority of Africa’s 53 countries, CSR is still in its infancy. At worst, it is
regarded with suspicion as an agenda of the North imposed on countries of the
South. At best, it is embedded within the African context and used to address
the continent’s economic, social and sustainable developmental challenges.”
Africa’s diverse social and cultural context influences attitudes towards
CSR (Klins, Van Niekerk, & Smit, 2010). Amponsah-Tawiah & Dartey-Baah
(2011) observed differences in CSR between countries in Africa and those in
the West and concluded that in Africa, CSR can be understood within the
context of seven key drivers namely; cultural tradition, political reforms,
16

socio-economic priorities, governance gaps, market access, international
standards and stakeholder activism. Therefore organizations must consider the
unique cultural, socio-economic, and political contexts of African countries
and the needs of their respective communities before formulating and
implementing CSR programmes.
The assumption is that CSR is largely a western phenomenon is not
far-fetched since CSR is a practice most likely to be found in countries with
globally-active companies, democratic political structures, and active civil
society organizations (Baskin, 2006). Most African countries lack the proper
political and governance structures and active civil society to ensure CSR
practices. There are therefore arguments that the poor regulatory and
institutional context explains corporate irresponsibility and complicity in
Africa or influences social, economic and environmental performance of
firms. However, CSR practice is gaining roots in Africa and interest in CSR is
growing due to growing interest in Africa as a continent in the face of
globalization, rise in foreign direct investment and international trade. The
assumption is that companies that trade more with westernized countries might
be expected to raise their levels of CSR (Muthuri & Gilbert, 2011). However,
CSR scholarship as well as literature in Africa are little and rudimentary.
Challenges and Limitations of CSR implementation
CSR policies, strategies and programmes indicate the level of
commitment of an organisation to its social responsibility ideals. However
companies face challenges and limitations as they implement CSR. These
usually relate either to political issues or to organisational-level concerns and
17

at societal level result from embedded cultural practices. McGraw (2005)
considers the biggest challenge in the field of CSR implementation to be the
development of leaders for a sustainable global society. According to this
author, the challenge will be to develop leaders for a sustainable global society
by encouraging imagination and the accomplishment of a positive change. The
literature reveals that while there is much talk of what companies should do,
information on, and analysis of what companies are actually doing in practice
(and process) is lacking (Blum-Kusterer & Hussain 2001, p.1). Lack of
government control and involvement is highlighted as a major challenge in
addition to the unwillingness of companies to engage in CSR activities.
Corporate Social Responsibility (CSR) in the Mining Sector in Africa
The mining, oil and gas industries have by far the most advanced CSR
programs in Africa, due in large part to the negative image they receive in the
press. Many countries in Africa have extensive mineral resources. Ghana is
endowed with rich natural resources including bauxite, diamonds, gold and
manganese. Ghana’s mineral endowment potential is well known
internationally and documented (Keatley, 1992). In Ghana, mining is in two
types; large scale and small scale. Large-scale mining is conducted as surface
mining by big mining companies, producing gold, diamonds, bauxite and
manganese. Historically, the mining sector has brought important economic
gains to both mining companies and local communities.
The Ghana Extractive Industries Transparency Initiative (GEITI),
established after the launch of the Extractive Industries Transparency Initiative
(EITI) by the Prime Minister of the UK at the World Summit on Sustainable
18

Development in September 2002 has as its core principles of transparency and
accountability. It serves as an avenue for promoting CSR in the extractive
industry. It is evident from the above that CSR in Ghana has just started with
large scale multi-national companies especially those operating in the
extractive industry leading the path (Tawiah & Baah, 2011).
In the mining sector CSR refers to a company’s voluntary actions to
either reduce the negative impacts of mining or to improve the living
conditions of the local communities where they operate. Voluntary actions are
those that go beyond legal obligations and binding contracts (Anon, 2012).
CSR programmes of mining companies tend to focus on community initiatives
because the economic, social and environmental impacts of their operations
are basically felt greatest at the local level. Maintaining a license to operate is
a constant challenge. Other business reasons why mining companies undertake
CSR activities (Jenkins & Obara, 2008) include: obtaining competitive
advantages, receiving and maintaining a stable working environment,
managing external perception and maintaining good reputation among others.
In Ghana the large scale mining companies, which are members of the
Ghana Chamber of Mines (GCM), have set up Trust Funds to ensure adequate
funding for their social investment activities. CSR programmes consist of
investments in infrastructure, investments in building social capital, and
investments in building human capital. Most mining companies concentrate
their CSR activities in the areas of education, health, alternative livelihood
programmes and income generating activities. Also reforestation, alternative
energy supplies, and vocational training for mining communities are just a few
of the ways the mining industry demonstrates CSR (Anon, 2012).
19

In Ghana, critics of mining companies have called on the Government
of Ghana (GoG) to hold the mining companies accountable instead of being an
accomplice in an act that exploits the country’s mineral resources and creates
death traps for the people instead of liberating them from hunger, illiteracy,
vulnerability and other social problems (Boon & Ababio, 2009).
Measures Corporate Social Responsibility (CSR)
CSR is a multi-faceted construct. It evolved from Bowen‘s (1953)
early work on the social responsibility of the businessman and Davis‘s (1973)
essay on the pros and cons of CSR; to Carroll‘s (1979) CSR model of
economic, legal, ethical, and discretionary domains; to Wartick & Cochran‘s
(1985) addition of “issues management”; to Wood‘s (1991) seminal,
multilevel, theoretical framework of the principles, processes, and outcomes of
CSR. Rowley (1997) advanced the thinking to include a network perspective
on stakeholder management as part of Wood‘s CSR model.
The most used approach to CSR disclosure measurement consists of
content analysis of annual reports, letters to shareholders, 10Ks, and a number
of other corporate disclosures to the public as surrogates of CSR. Content
analysis is employed to compare units of text against particular CSR themes in
order to draw inferences about the organization‘s underlying social
responsibility performance (Abbott & Monsen 1979).
A second approach to measuring CSR is the use of ratings such as
Fortune magazine ratings of a corporation’s responsibility to the community
and environment (Fombrun & Shanley 1990). Another rating include Kinder,
Lydenberg, Domini (KLD) ratings (Berman, Wicks, Kotha, & Jones, 1999).
20

On variables that are included in most measures include; employee relations,
the natural environment, product quality, treatment of women and minorities,
and community relations). Although these 5 dimensions are the ones most
commonly used in CSR research, no empirical evidence has been presented to
support the inclusion of these 5 dimensions over any others.
In this study the researcher focused on alternative livelihood
opportunities, the natural environment and community development. Thus the
researcher collected information regarding community relations, economic
livelihood opportunities, and environment issues. The instruments for data
collection were used to solicit information on the sort of improvements that
have taken place in the lives of the people living in that area as a result of the
company’s activities in the area. The researcher gathered data on social,
economic and environmental effects of activities of the company in the area.
The reason the researcher used this self-developed measure of
corporate social responsibility in the study is because in Ghana there are no
academically or practically acceptable social responsibility ratings like in
foreign countries exist in Ghana. Although the Environmental Protection
Agency has its meaner, this offers a generic approach to measuring CSR and is
flawed in the way it majors on only environmental concerns and does not
consider social, ethical and community context and individual differences,
views and experiences which shape peoples dispositions toward CSR
activities. The researcher defined CSR to enable participants understand it and
developed context-specific interview guide, and self-rating questionnaire to
measure the perception of people in the community about GSWL’s CSR
activities. These helped the research to comprehensively evaluate the
21

perception of GSWL’s CSR activities in communities grounding such
evaluations in the views and experiences of the people themselves.
22

CHAPTER THREE
METHODOLOGY
Introduction
This chapter is the methodology that was used in investigating the
research problem. The researcher discusses the research design, profile of the
company, the study area, population, sampling, data collection and analysis.
Research Design
This study employed a descriptive research design the study sought to
describe the conditions persisting in the study area and the CSR activities of
GSWL in the area. An attempt was made to describe the nature of CSR
practices and processes that are going on, or trends that are developed (Best &
Kahn, 1998). The descriptive study design was used as the study was non-
interventional and sought to describe the problem without any manipulation.
Based on the descriptive design, a case study approach was used.
Robinson (2002, p.178) defines case study as a “strategy for doing research
which involves an empirical investigation of a particular contemporary
phenomenon within its real life context using multiple sources of evidence”.
Since it was impractical and extremely expensive to study the CSR activities
of all mining companies, the researcher concentrated on GSWL. The aim of a
case study was to “generate an intensive examination of a single case” and
then “engage in a theoretical analysis” as posited by Bryman (2004, p.52). The
case study strategy was suitable as this study dealt with issues in-depth using
multiple data. Stake (1995) observed that case study research is concerned
with investigating the nature and complexity of a particular case in depth.
23

Profile of Golden Star (Wassa) Limited and the Study Area
Golden Star Resources Ltd, incorporated on May 15, 1992, is an
international gold mining and exploration company producing gold in Ghana,
West Africa. The Company also conducts gold exploration in other countries
in West Africa and in South America. Golden Star owns controlling interests
in several gold properties in southwest Ghana. Through a 90% owned
subsidiary, Golden Star (Bogoso/Prestea) Limited (GSBPL), it owns and
operates the Bogoso/Prestea gold mining and processing operations
(Bogoso/Prestea) located near the town of Bogoso, Ghana. Through another
90% owned subsidiary, Golden Star (Wassa) Limited (GSWL), Golden Star
Resources Ltd owns and operates the Wassa gold mine located approximately
35 kilometers east of Bogoso/Prestea in southwest Ghana. The property
includes several open-pit mines, the nominal 3.0 million ton per annum CIL
Wassa plant with its crushing and grinding circuits, a fleet of mining
equipment, a tailings storage facility, ancillary facilities, including an
administration building, a warehouse, a maintenance shop, a stand-by power
generating facility and an employee residential complex.
The Wassa Mine was discovered and developed in the late 1990’s by a
joint venture between Glencar Mining plc, Moydow International Mines Inc.
and the Government of Ghana. The mine was developed in 1998 at a capital
cost of about $43 million as a conventional open pit operation followed by
heap leaching. Gold production commenced in January 1999 with a mine life
of six years. However, gold recoveries from the heap leach were slower and
lower than expected resulting in a negative impact on the project's production,
cash costs and cash flow. Consequently in 2001, the secured lenders to the
24

project enforced their security over the project and agreed to sell Wassa Mines
to Golden Star. Wassa was redesigned as a conventional Carbon-In-Leach
(CIL) milling operation and since 2005 the mine has been a successful
operation (Anon, 2013b).
GSWL also owns and operates the Hwini-Butre and Benso mines
located 80 and 50 kilometers, respectively, south of Wassa. In 2008, Benso
mining operations commenced to provide a source of high grade ore to the
Wassa processing plant and in 2009, mining operations at Hwini-Butre also
commenced to provide even higher grade ore to the Wassa mill (Anon,
2013a).
Golden Star (Wassa) Limited (GSWL) practices owner mining but
uses the services of other contractors when the need arises. GSWL conducts
its operations using the conventional open pit methods. A two shift system
(night and day) is used with operators working for five days and two days off
for day shift and three days off for night. Each of these shifts use excavators,
graders, water cat, dump trucks, bulldozers and drill rigs for the operations.
The mine has four excavators manufactured by Liebherr, twelve Caterpillar
777D and four 773F dump trucks, three Atlas Copco drill rigs, two Cubex 560,
two Pantera Dp 1500i.
GSWL operations cover a number of communities. The Akyempim
community is located approximately 2 km from Golden Star’s Wassa
processing facility and several of GSR’s active open-pit mines. While
Akyempim has remained one of the mineral resource rich communities of the
country, it is not among the best developed communities in Ghana.
Akyempim is an interesting community to consider as a research area owing to
25

the fact that gold mining has existed for some period and whiles one would
expect that it would be among the best developed communities in the country
this is not the case. Golden Star (Wassa) Limited (GSWL) has for some time
now been priding itself with being socially responsible and also making the
Akyempim community better off than how it was before. It is the perceived
that the Akyempim communities do not feel the same way. The choice of the
study was influenced by these conflicting perceptions. Figure 1 shows the map
of Ghana and Western region indicating the location of Akyempim.
Figure 1: Location of Akyempim on the Ghana Map
Source: GSWL Policy Documents, 2013.
The Awunakrom community is located near Golden Star’s Father
Brown operations. The Father Brown pit is one of Golden Star’s most
important ore bodies for the Wassa operations. Togbekrom is a local
community in our Wassa catchment area. Due to the proximity of the
community to the operation’s tailings storage facility — and to enable the
development of an adjacent facility — Gold-en Star initiated resettlement
negotiations with the community. The pro-cess culminated in 2012, with a
26

new site constructed equipped with 215 residential units, schools, churches, an
early childhood education centre, and a community centre (among others).
Benso is located approximately 5 km south of Golden Star’s Benso
mine site, which is the former site of many of the company’s open pits. Other
communities within close proximity to Benso include the villages of Ningo
and Subriso. Benso, Ningo and Subriso are part of GSWL’s operations.
The choice of the communities in Wassa Distrist in the Western
Region was to help the researcher understand perspectives shared by people in
those communities as an opportunity to gather local knowledge on GSWL’s
CSR policies and activities and identify the improvement or otherwise in the
social, environmental and economic lives of the people in the study area.
Population of the Study
According to Baumgartner, Strong, and Hensley (2002), the population
is the focus of a researcher’s effort. Sekeran (1990) defines population as the
entire group of people, events or things of interest that the researcher wishes to
investigate. The target population for the study comprised officers of GSWL,
individual members of communities in the study areas, chiefs and traditional
authorities, experts from advocacy groups and public agencies among others
since these people are aware and affected by activities of GSWL. It was not
possible to know the size of the population of the study given that there is no
statistics on the different groups that formed the population of the study.
27

Sample and Sampling Method
A sample is a set of items or individuals or units, selected from a larger
aggregate or population from which information is to be obtained. The
sampling technique used was convenient sampling technique this involved
selecting as many people who could provide the information needed. In all ten
(10) officers of GSWL, six (6) Community Consultative Committee (CCC)
members, ten (10) Community Mines Consultative Committee (CMCC)
members, eight (8) government officials and sixty six (66) members of the
community were included in the sample of the study.
Sources of Data
Both primary and secondary sources of data were used for the study.
In-depth Interview, questionnaires and observation were used in collecting the
primary data while the secondary data were also sourced from the company
policy documents, annual publications, information from the internet and
GSWL’s Community Relation Department on CSR practices and activities
with regard to their assessment in the catchment communities including
Akyempim, Old Subri, Nsadweso, Kubekro, Togbekrom, and Dwabeng.
Data Collection Methods
The researcher made close observation of the economic activities and
development of the people in the communities. Photos to serve as snapshots of
these activities and development were taken to serve as my main source of
data. Document and text analyzing has to deal with taking a critical look at
some relevant written materials as well as internet materials that may be
28

available for the area of research. Interviews in qualitative research could be
either unstructured or semi-structured. In order to develop know the policies,
activities and practices of GSWL, the researcher carried out a thorough
content analysis of the corporate social responsibility (CSR) reports published
by the company. Content analysis is defined as a method of codifying text into
different groups depending on selected criteria (Weber, 1990). This research
method commonly used to assess social and environmental disclosures of a
company is content analysis (Milne & Adler, 1999).
Questionnaires were also administered to members of the
communities. The first part of the questionnaire solicited information about
respondent’s demographic background including gender, educational
background, among others. The second part asked respondents about how they
feel or think about an issue relating to GSWL’s CSR activities in their
communities. On a five-point, Likert type scale, respondents were asked to
choose one outcome from a range of five indicating their feeling.
Questionnaires were suitable because they were less time consuming to
complete and analyze and provided an opportunity for obtaining unanticipated
perspectives on issues (Easterby-Smith, Thorpe & Lowe, 2002, p.133).
Seeking answers to some research questions required not only
describing relationships between variables, but also examining the experiences
of people. Thus the researcher conducted in-depth interviews with residents of
each community to find out respondents’ experiences of CSR activities in their
communities. Bryman (2004, p.323) acknowledges that with semi-structured
interviews, the researcher may have an interview guide and follow it to some
29

extent. Semi-structured interview is also a bit flexible and makes room for the
researcher to change the style of the interview if it becomes necessary.
Interviews took from 30 minutes to 2 hour, but with the majority in the
40-50 minutes range. Apart from the interviewing members of communities,
the researcher also interviewed some workers of the GSRL, which included
senior staff and junior staff. The senior staffs comprise the workers in top
management positions; in the high income bracket, while the junior staffs are
those in low management and other positions and in the low income bracket.
Members of the Community Consultative Committee (CCC) set up by the
GSRL to be a liaison between the company and the community as far as the
concerns of the communities and the social responsibilities of the company are
concerned were also interviewed to gather data.
Field Work and Ethical Consideration
The field work for this research was done within a period of twelve
weeks. It involved the conduct of interviews, analysis of documents,
administration of questionnaires and non-participatory observations. There
were ethical considerations. Well (1994) defined ethics of research in terms of
code of behaviour appropriate to researchers in the conduct of research.
Babbie (2005) on his part considered ethics of research to concern the methods
employed in data collection. To meet ethical standards in collecting data for
this research, the researcher ensured that data collected was of high quality
and that ethical guidelines were strictly followed. The researcher avoided the
situation of unethically obtaining data without going through proper legal and
administrative procedures. The researcher asked permission from management
30

of GSWL to do the research. The researcher ensured that in the administration
of the questionnaire and conduct of interviews, the consent of all participants
was sought. Participants were fully informed of the essence of the research
and had right to withdraw from the study at any time if they chose to do so.
The privacy of respondents was upheld. The researcher ensured that their
responses obtained were used for academic purposes only.
Data analysis
In analysing data, the main task was to understand the case through
teasing out relationships, probing issues and aggregating the data categorically
(Stake, 1994). Stake (1994) advocated thematic approach to data analysis
where themes and patterns are developed from the data collected based on the
research questions. The major challenge was how to organise data in a
sensible framework so that it can be interpreted from a holistic and objective
point of view and act as a guide for answering the research questions.
In this study, the nature of responses warranted thematic analysis of the
data collected. A level of measured but subjective interpretation was applied in
analysing responses to the questionnaire which were closed-ended questions.
In the course of processing and interpreting the available data, it became
evident that although CSR is conceptually embedded in GSWL’s business
domain, it is implemented within a broader social, economic and political
context of different communities. Therefore CSR activities are contextually
shaped. The boundaries and possibilities of CSR are therefore not exclusively
determined by business but by the interaction of business and society.
31

Statistical Package for Social Sciences (SPSS) was used to process the
data. Results are presented in pie charts and tables to aid discussions.
32

CHAPTER FOUR
RESULTS AND DISCUSSIONS
Introduction
This chapter presents the results and discussions of the study. Through
observations, document analysis, administration of questionnaires and conduct
of interviews, data on GSWL’s CSR policies and activities in its catchment
communities were gathered and analysed. The results are presented and
discussed with reference to previous findings and theories which serve as
evidence in support of or in contradiction to the results of the present study. In
the case of interviews, extracts of responses to questions are incorporated as
evidence. To preserve privacy and uphold confidentiality, generic terms like
‘senior staff’, among others are used in place of personal names.
Corporate Social Responsibility Policies of Golden Star (Wassa) Limited
The first objective of the study sought to find out GSWL’s CSR policies;
that is the set of principles which inform and guide the design and
implementation of corporate social responsibility strategies of the company.
By reviewing GSWL’s policy documents the researcher gathered that Golden
Star Resources, the parent company of GSWL, is committed to being a part of
communities in which it operates by maintaining and building strong
relationships with members of the communities based on mutual respect and
recognition of each other’s rights, together with an active partnership and long
term commitment to the betterment of the communities. This was found to be
true of GSWL which is a subsidiary of Golden Star Resources. The researcher
33

found Golden Star Resources has a written CSR policy document which
stipulates its principles and practices of CSR in catchment communities.
The following elements are included in its CSR Policy;
 Ensure leaders and managers are committed to creating a culture that
makes community relations and protection of human rights an integral
part of the short and long term operations and performance
management systems;
 Implement policies on ethical conduct and human rights;
 Provide training to employees and contractors so that they understand
community obligations and objectives and the need to build and foster
strong links with community partners as a fundamental part of our
business;
 Wherever appropriate and feasible, set operating standards that
exceeds relevant laws and regulations and international protocols of
which Golden Star is a signatory;
 Respect the social, economic and cultural rights of indigenous people;
 Engage in accurate, transparent and timely two way consultation to
discuss short and long-term plans to address the concerns of the
partners;
 Develop lasting relationships built on mutual trust and respect so as to
reach agreed objectives and shared involvement;
 Share success by partnering with third party stakeholders in
appropriate and sustainable community development programs;
34

 Develop long-term alternative economic and capacity building
projects to provide enduring social and economic benefits from
operations;
 Regularly review and audit performance on community relations and
human rights matters relative to policies and standards; and publicly
report performance on community relations and human rights matters.
The researcher found that Golden Star Resources, in order to implement
its CSR policies set up a development fund called the Golden Star
Development Fund Foundation (GSDFF) which accumulates funds purposely
to finance CSR activities in its catchment communities. It is stated in the
company’s Corporate Social Responsibility Report, 2013, that:
“Our mines have a finite life. Therefore, to provide the opportunity for longer-
term benefits from our operations, we established the Golden Star
Development Foundation (GSDF), which is funded with US$1 for every ounce
of gold produced plus 0.1% of pre-tax profit. The GSDF funds a variety of
community projects, including health, education, and community
infrastructure initiatives that are selected by local Community Mine
Consultative Committees (CMCC) that represent our 80,000+ local
stakeholders.” (GSR, CSR Report, 2013).
Some officers of GSWL who were interviewed on this issue disclosed
that apart from using the GSDFF to finance its CSR activities, GSWL also has
a policy which allows it to finance its CSR activities from its own coffers.
This is how one officer puts it:
35

“... There are GSDFF-assisted projects (projects funded from the
development fund) and GSWL-assisted projects (projects directly funded from
the company’s own coffers outside the foundation fund). This shows the
commitment GSWL makes to ensure that it funds its CSR policies...”
The researcher also found that the design and implementation of CSR
policies involves collaborative effort of many individuals and groups. As a
partner of choice GSWL laid down structures to engage with local
stakeholders in order to report and communicate on its business and address
the needs of communities. The means by GSWL’s CSR policies and activities
are conveyed to stakeholders include regular dialogue with stakeholders –
including but not limited to public meetings, open houses, and sensitization
forums – is central to understanding key issues and concerns related to its
operations, and, in turn, help realize sustainable solutions suitable to multiple
stakeholders. GSWL has a three-tier engagement plan shown in Figure 2.
Figure 2: Golden Star’s Three-Tier Community Engagement Plan
Su stai n ab l e
M an age me n t
Te am
CMCC – C M C C- CMCC- CMCC-

W assa B e n so Mpohor P re tse a
M e e ts M e e ts M e e ts M e e ts
Qu arte rl y Qu arte rl y Qu arte rl y Qu arte rl y
C C T- CCT – CCT – CCT –

Wassa B e n so Mpohor P re tse a
Si te s (6 ) Si te (3 ) Si te (4 ) Si te (2 )
M o n th l y M o n th l y M o n th l y M o n th l y
Source: GSWL Policy Documents, 2013.
36

The first tier is a sustainable management team which is part of the
company. The second tier is the Community Consultative Committees (CCCs)
and Community Mine Consultative Committees (CMCCs), the main conduits
for GSWL’s ongoing dialogue with local stakeholders. It is stated in GSWL’s
CSR, 2013, Report that: “The CMCCs are made up of local community
leaders and they serve as the focal point for our community partnerships
allowing communities to select the types of projects they see as important for
the development of their communities”. Comprised of some 211
representatives of local communities, these bodies convene regularly to
communicate on Golden Stars plans and operations in addition to being
primary channels of communication for community concerns. The community
affairs superintendent is the chairman of CMCC plus representatives from the
district assembly and all assembly members at each site including Wassa,
Benso and Mpohor. Meetings are held quarterly to discuss community
development issues and strategize how to implement development projects.
The third tier is the CCT in each community whose members include the
chief, chief farmer, youth representatives, appointee-religious leader, assembly
member, women’s leader and committee chairman. Meetings are held monthly
in each of the following communities: Wassa, Mpohor, Benso and Pretsea, to
discuss community concerns of GSWL operations and CSR activities.
The researcher interviewed executives of GSWL to find out what
informed its CSR policies. It was found that both internal drivers and external
drivers informed the company’s CSR policies including;
1. Self regulation (Companies’ perception of benefit for itself and
communities and driven by instrumental, strategic, altruistic reasons)
37

2. Governmental regulation (i.e. compliance with the laws e.g. laws and
policies on mining, the Ghana Business Code 2006, etc. compelled it to
adopt CSR policies)
3. Civil/Social regulation. (NGO activism e.g. Community pressure
forced the company to formulate CSR policies.)
International regulation (international conventions, codes of conduct
and industry best practice; Growing adoption rates of ISO 14001)
The finding that community pressure and pressure from international
laws informed the company’s CSR policy confirms Waddock (2004) finding
that public pressure has been changing corporate behaviour of organizations.
The finding that the perception of the company which shaped its CSR policies
is consistent with the research findings of Tina (2002) who found that CSR
has become a corporate strategy for many companies to improve their brand.
From what was found, GSWL’s CSR policies provide a useful and
workable set of criteria for assessing and benchmarking its activities.
CSR Activities Undertaken By GSWL in its Catchment Communities
The second objective of the study sought to find out activities undertaken
by GSWL in its catchment communities in fulfilment of its CSR policies. To
find answers to questions asked under this objective, the researcher first
reviewed GSWL company documents to discover CSR activities undertaken.
It was found that GSWL concentrates on key areas in its activities including:
Social Cohesion and Community development, Education and School Care,
Health, Environmental protection and Economic Empowerment and Enterprise
38

Development and infrastructure improvement. Some of the major milestone
CSR activities that have been undertaken so far are highlighted below.
Community Development Initiatives
Many CSR activities with community-wide benefits have been
undertaken by GSWL in an effort to meet its CSR policies. Major community
activities undertaken by GSWL, it was found in GSWL’s CSR Annual Report,
2013, is the construction of community centres. It is stated in the report that:
“Community centres were built at Bondaye, Chujah, and Kwame
Niampah in the Bogoso area and Nsadweso and Awunakrom in the Wassa
area. Each is equipped with an office, store room, electrical access, and
seating. A 300-seat community centre was also built at Pretiat as part of the
Awunakrom resettlement project... The community centres serve as an
important social amenity for local residents as the venue for events such as
weddings, engagements, and graduations as well as the location for
stakeholder consultation sessions. In 2013, the construction costs for the
community centres totalled US$0.33M” (GSR, CSR Report, 2013).
As part of the non-participatory observation approach adopted in this
study, the researcher visited and viewed all the community centres built by
GSWL for its catchment communities to serve as multipurpose halls and
centres for the following: funeral gatherings, wedding receptions, meeting
grounds, get-together occasions, naming ceremonies, church conventions and
among other uses. Figure 3 is the picture of Subriso Community Centre.
39

Figure 3: Subriso Community Centre
Source: Field Survey, 2014.
Education and School Care
In fulfilment of CSR policies in its host communities, GSWL built a
number of schools in its catchment communities to help provide quality
education. It stated in its CSR Annual Report, 2013, that: “Since 2007, Golden
Star has built 6 schools (via the GSDF), provided bussing to school for 7
communities, paid scholarships to over 580 students and subsidised
educational expenses for some 3,000 other students each year” (GSR, CSR
Report, 2013). To substantiate these claims made by GSWL in its CSR
Report and as part of the non-participatory observation approach adopted in
this study, the researcher visited and viewed some of the school buildings
GSWL built for catchment communities to serve as centres of learning. Figure
4 is the picture of a 6 Unit Classroom Block for the Akyempim Community.
40

Figure 4: Akyempim 6 Unit Classroom Blocks
It was found that, apart from classroom blocks, teachers quarters have
also been built by GSWL in fulfilment of CSR activities in its catchment
communities to serve as motivations for teachers to stay in the community to
teach. Figure 5 is the picture of Teachers Quarters in Ningo Community.
Figure 5: Ningo Teachers Quarters

41

Scholarship Awards
In was also gathered that apart from the classroom blocks and teachers
quarters built by GSWL, the company has a scholarship and awards scheme to
support the brilliant but needy children in its catchment communities and as
makes other corporate donations and educational assistance to schools within
its catchment areas. GSWL has had about 118 students on its scholarship
scheme since 2008 who receive GH¢250.00 for boarding school or
GH¢160.00 as day students to help them through senior high school education.
Table 1 shows the distribution of students on the scholarship scheme.
Table 1: Number of Students from Local Communities on the Scholarship
Scheme
Communities Number On The Scheme
Akyempim 17
Kubekro 9
Akosombo 3
Togbekrom 6
Nsadweso 16
Old Subri 17
Brofoyedur 5
Ateiku 1
Anyinabrem 1
Environment
CSR activities undertaken by GSWL relating to the environment centre
on the prevention of pollution, waste management, road maintenance and dust
42

suppression and control and corporate strategies towards climate change,
biodiversity and resource security. As part of its commitment to controlling
pollution Golden Star (Wassa) Ltd (GSWL) routinely embarks on both
internal and external road maintenance both within and around its six
catchment communities. This is to ensure that roads between and within
catchment communities are good to ply by both workers and indigenes to
avoid any incidents or accidents from occurring due to bad road conditions .
In addition to road maintenance, GSWL has put in place measures to
effectively ensure that dust generated from its activities is very much
suppressed. The dust comes from: roads (within its catchments communities
as well as haul roads and access roads within the company); pit operations
(blasting, drilling, and movement of vehicles) and plant processing site
(movement of vehicles, processing machines (mill, crushers, and conveyors).
The researcher observed that to control the dust, GSWL has big water
boozers to carry out effective watering exercises within its catchment
communities and around, and on its haulage roads. There are also boozers at
plant site to do effective watering to suppress the dust that emanate from the
mill, conveyors, vehicle movement and crushers. There are also boozers at the
pit site to suppress dust from drilling, blasting and excavation activities.
The health, safety and environment manager of the company said that
“GSWL has a monitoring team which carries out routine (monthly) dust
monitoring to make sure dust in the atmosphere is not above EPA standards.”
Figure 6 and 7 are pictures of GSWL’s water boozers and dust
monitoring.
43

Figure 6: Water Boozer Figure 7: Dust Monitoring
Source: Field Survey, 2014. Source: Field Survey, 2014.
Market places
Management of GSWL in collaborative efforts of one of its three tier
engagement plan, the Community Mines Consultative Committee (CMCC)
has put in place a system such that each year a community benefits a major
project from the company’s Development Fund. Since the commencement of
this rotational benefit package, no community has made a request for a market
place. A survey shows that most communities have an existing market and so
they rather place priority on other infrastructural facilities. Nonetheless,
assistance has been rendered to Mpohor community by filling and leveling
their marketplace. This initiative was to reclaim a flooded area at the market
which affected market activities. It made people unwilling to patronize to go
to the place after heavy down pours because the place becomes flooded. After
44

GSWL’s interventional initiative, activities are very lively at the market place
with no apprehension for flooding. Figure 8 shows a picture of the project.
Figure 8: Mpohor Market
Places of conveniences
To assist its catchment communities, GSWL has provided a number of
toilet facilities to this effect. Meanwhile, construction of places of convenience
is on-going in some communities such as Nsadweso, Awunakrom and that of
Kubekro is yet to be initiated. This is shown in figures 9 and 10.
45

Figure 9: Akyempim Aqua Privy Fig. 10: Mpohor WC Toilet Facility
Source: Field Survey, 2014. Source: Field Survey, 2014.
Electricity
With respect to provision of electricity to catchment communities, a
number of communities are currently enjoying the benefits of Golden Star
electrification project since 2008 including Akyempim, Nsadweso, Kubekro,
New and Old Subri and Ateiku. According to GSWL’s CSR Report, 2013;
“Community electrification rates increased from 54% in 2007 to 59% in 2009.
Through the GSDF, we have provided access to electricity or supported its
distribution to residents in Prestea, Mbease Nsuta, and Akyempim
(communities with some 40,000 residents), as well as 3 school blocks, a
community clinic and our resettlement communities”
46

Medical Supplies
As part of its Corporate Social Responsibility to be a partner of choice,
GSWL assists its catchment communities beyond educational and or
developmental activities by making donations of medical supplies to help
health facilities deliver quality health care to members of the communities.
“Through an ongoing partnership with Project C.U.R.E., Golden Star and the
GHS continued to distribute medical supplies (valued at approximately
US$0.4M to local communities in 2013). This was all made possible by
contributions from the GSDF/CMCCs” (GSR, CSR Report, 2013).
It is clear that GSWL has a clear CSR policy and has a set of programmes
and projects going on or haven been completed in the study area as evidence
of this policy in practice. It is however clear that more could be done in the
study area. It was gathered that since GSWL is undertaking these CSR
activities based on their initiatives and probably in competition with other
firms but not in compliance with CSR regulations of the government (since
there are yet to be very clear-cut policies on CSR for the mining sector). Thus
GSWL picked and chose projects which suit their policies and may not be
beneficial to the members of communities in which those projects take place.
Satisfaction with GSWL’s CSR Activities in its Catchment Communities
CSR activities undertaken by GSWL in communities it is operating may
be initiatives that bring satisfaction to people or not. The third objective of the
study sought to find out the level of people’s satisfaction with GSWL’s CSR
activities in their communities. This was more of an impact assessment of its
47

CSR policies; an assessment of the direct and indirect consequences of
GSWL’s CSR activities in its catchment communities. It was also a form of
independent verification; a process of independent review to provide
assurance that GSWL’s report of its CSR activities represents reality on the
ground as felt and seen by the people in the communities. This will help us
know the differences in what CSR policies and activities GSWL has provided
and what the communities expected. The reason is that it is the people in these
communities that can best judge the success of GSWL’s CSR activities.
To achieve this objective a survey was conducted by administering
questionnaires. Of a total of 100 questionnaires 66 people in the catchment
communities including Akyempim, Old Subri, Nsadweso, Togbekrom,
Kubekro and Dwabeng, completed and returned them. This was to determine
the perception of members of communities of GSWL CSR activities.
Demographic Profile of Respondents
The demographic characteristics give a general overview of the study
population within which the sample for the study was drawn. The purpose is to
bring context and understanding to the responses of participants and help
readers appreciate their unique perspectives of issues GSWL’s CSR activities.
The first section of the questionnaire helped to obtain demographic
information about the respondents. Demographic variables analysed include;
gender of respondents, age of respondents and length of stay in the study area.
48

Gender of Respondents
Results of data analysed on gender of respondents show that 62.1% of the
respondent were male while 37.9% of respondents were female. The age
distribution of respondents is displayed in Table 2.
Table 2: Gender of Respondents
Education Frequency Percent

Male 41 62.1
Female 25 37.9
Total 66 100
Source: Field Survey, 2014
The gender distribution of respondents would have a bearing on the
responses they gave since gender determines employment or alternative
livelihood opportunities that are expected among other things.
Level of Education of Respondents
Results of the analysis of information on the level of education of
respondents show that 12.1% of the respondents had no formal education,
majority of the respondents, 39.4%, had Middle School Living Certificate
(MSLC), Junior Secondary School or Junior High School level education,
6.1% had either Advanced level (A-level) or General Certificate of Education
(GCE), 13.6 % of respondents had a Senior Secondary School or Senior High
School education. 28.8% of respondents had a tertiary level education. Table 3
shows the distribution of the level of respondents’ education.
49

Table 3: Level of Education of Respondents
Response rating Frequency Percent

No Formal Education 8 12.1
MSLC/JSS/JHS 26 39.4
A-Level/GCE 4 6.1
SSS/SHS 9 13.6
Tertiary 19 28.8
Total 66 100
From the results presented in Table 3, it is clear that a majority of the
respondents, 39.4%, had Middle School Living Certificate (MSLC), Junior
Secondary School or Junior High School level education. This was followed
by those with a tertiary level education. Respondents’ educational level is very
important in their perception of CSR activities. A respondent’s educational
level could influence his/her expectation and or satisfaction of CSR activities.
Employment Status of Respondents
Results of the analysis of information on the employment status of
respondents show that 21.2% of the respondents are unemployed, majority of
the respondents, 16.7%, of respondents are mine workers, 6.1% of respondents
were galamsey workers, 13.6% are farmers, 10.6% of respondents are self-
employed and 31.8% of respondents are government workers. Table 4 shows
the distribution of the level of respondents’ education.
50

Table 4: Employment Status
Response Frequency Percent
Unemployed 14 21.2
Mine Worker 11 16.7
Galamsey Worker 4 6.1
Farmer 9 13.6
Self-employed 7 10.6
Government Worker 21 31.8
Total 66 100
Views of Respondents in Various Categories of CSR Activities
The views of respondents about GSWL’s CSR activities in its catchment
communities including Akyempim, Old Subri, Nsadweso, Togbekrom,
Kubekro and Dwabeng were gathered on various issues to help determine the
satisfaction of members of these communities about GSWL’s CSR activities.
The various categories of CSR activities surveyed include; employment and
local economic development, provision of alternative livelihood opportunities
and the relationship of GSWL with its catchment communities.
Employment and Local Economic Development
On whether GSWL’s CSR policies have led to employment openings and
significant local economic development and social enterprise development in
its catchment communities, 63.6% of respondents said there is significant
economic development while 30.3% said there is no significant economic
51

development. About 6% of the respondents had no idea about this. The results
are displayed in Table 5.
Table 5: Employment and Local Economic Development
Yes 42 63.6
No 20 30.3
No idea 4 6.1
Total 66 100
The results shown in Table 5 substantiate the statement made by Golden
Star in its 2013 Report that: “One of the principal benefits of our operations is
the employment that is generated for the local, regional, and national
economies. In 2013, Golden Star employed over 2,300 direct workers
resulting in over US$54M in paid wages. This is in addition to the spin-off
employment that is created as a result of our operations. GSR implements a
local hiring policy aiming to ensure that employment opportunities are filled
by local citizens as much as possible... Employment remains a top priority and
concern for local stakeholders. This is especially true among youth, given the
high level of youth unemployment and a rapidly growing population.
Therefore, Golden Star works to further enhance employment opportunities
and income-generating activities above and beyond its direct and indirect
workforce. In addition to expanding the local skills pool and providing
income-generating activities in the short to medium term, skills are acquired
by local citizens that will outlast the presence of the mines. Economic
development and diversification are al-so created, which further helps to
52

reduce the reliance of local communities on the economic activities created by
Golden Star — both now and in the future.”
Provisions of Alternative Livelihood Opportunities
On the whether provisions of alternative livelihood are made by GSWL
in its catchment communities, 45.5% of respondents said there is significant
economic development while 45.4% said there is no significant economic
development. About 9% of the respondents had no idea about this. The results
are displayed in Table 6.
Table 6: Provisions of Alternative Livelihood Opportunities
Yes 30 45.5
No 30 45.4
No idea 6 9.0
Total 66 100
The results on the provisions of alternative livelihood made by GSWL in
its catchment communities are mixed with 45.5% of respondents saying there
is significant economic development and another 45.4% saying there is no
significant economic development. It is clear that GSWL’s claims may be far-
fetched. It claims in its 2013 Annual CSR Report that:
“Initial sustainable livelihoods initiatives were conducted from 2004 to 2005
as part of our Sustainable Alternative Livelihoods Project (SALP). The
programme consisted of several pilot projects, including aquaculture projects
in mined-out pits, poultry farming, sericulture, and an oil palm project. The
53

programmes were initiated by GSR’s Community Affairs Departments, and in
the case of the oil palm project, in conjunction with the Minerals
Commission.”
Relationship between GSWL and its Catchment Community
With regard to relationship between GSWL and its catchment
communities, 63.6% of respondents said there is a good relationship between
GSWL and its catchment communities while 30.3% said there is no good
relationship between GSWL and communities. About 6% of the respondents
had no idea about this. These results are displayed in Table 7.
Table 7: Relationship between GSWL and its Catchment Community

Yes 40 60.1
No 24 36.4
No idea 2 3.0
Total 66 100
These results confirm GSWL’s claims that it is committed to being a part
of communities in which it operates by maintaining and building strong
relationships with members of the communities based on mutual respect and
recognition of each other’s rights, together with an active partnership and long
term commitment to the betterment of the communities.
54

Challenges of GSWL CSR Practices in the Catchment Communities
The third objective of the study sought to find out the challenges
GWSL’s faces in its catchment communities in implementing its CSR
policies. Thus the researcher interviewed management of GSWL what the
identified challenges in their CSR practices in the catchment communities and
results of analysis of data gathered on these questions are revealing. It was
realised that the CSR policies are good on paper. However their
implementations in catchment have not been without a few challenges. The
company stated in its 2013 Report that:
“Although the projects showed initial promise, most of them encountered
many challenges. Technical issues, limited market demand for some products
(e.g. silkworm products), and a lower than expected level of interest among
local residents pre-vented the projects from becoming sustainable in the long
term. There-fore, Golden Star decided to refocus its efforts in order to achieve
more positive and sustainable results.”
The researcher gathered that factors that were found to hinder GSWL’s
CSR policy implementation in its catchment communities include:
1. Organisational specific internal challenges: e.g. lack of resources; low
management commitment and support; limited local knowhow
2. Regulatory challenges: i.e. lack of, weak, or unenforceable regulation;
lack of governmental capacity; no explicit governmental incentives for
CSR.
3. Societal over expectation; and the problem of determination of CSR
priorities, among various communities.
55

CHAPTER FIVE
SUMMARY, CONCLUSIONS AND RECOMMENDATIONS
Introduction
This chapter presents the summary, conclusions and recommendations of
the study. In the summary section, the researcher gives an overview of the
study and provides a summary of key findings of the study. This research
work was conducted to achieve certain objectives by answering some research
questions. The conclusions section is based on the results and findings in
relation to the objectives and questions of the study. Some recommendations
are put forward to improve the policy and practice of internal auditing in the
organizations studied. Suggestions are also given for future research.
Summary
This study sought to examine the CSR policy and activities of GSWL in
its catchment communities. The study was undertaken not only to fulfil
academic demands but also out of interest of how profit and public good work
together. The first chapter laid the foundation of the study. It discussed the
problem of the study, set clear cut objectives to be achieved by the study and
outlined reasons why this study is significant. In the second chapter the
researcher reviewed the related literature. Chapter three discussed the
methodology of the study including sample selection and provided a
framework for data analysis. Chapter four was the presentation of results and
discussions. This chapter is the summaries of findings of the study according
to the research objectives. Findings are summarized below.
56

1. The first objective sought to assess the nature of Golden Star (Wassa)
Limited’s CSR policies. From the results of the data gathered on this
objective, it was found that GSWL’s has policies which shape its CSR
activities and serve as workable set of criteria for assessing and
benchmarking its CSR achievement in its catchment communities.
2. The second research objective sought to identify activities undertaken
by GSWL in its catchment communities to fulfil its CSR policies. It
was found that GSWL in fulfilment of its social responsibility has
undertaken many activities in the areas of community development,
building of recreational centres, school facilities and school care,
electricity, road maintenance, market places, and places of
convenience, employment opportunities and dust monitoring.
3. The third research objective sought to ascertain people’s level of
satisfaction with GSWL’s CSR policies and activities in the catchment
communities. It was also found that the relationship between GSWL
and communities in the catchment areas is very cordial.
4. The fourth research objective sought to identify challenges GSWL
faces in implementing its CSR Policies. It was found that some
challenges impede the implementation of CSR policies undertaken by
GSWL in its catchment communities.
57

Conclusions
From the findings, it can be concluded that the study finds evidence of
GSWL’s CSR activities in its catchment communities. GSWL is an important
part of the communities in which they operates. Management of GSWL shows
long-term commitment to CSR and maintains good relations with the
communities it operates in. Specifically the following conclusions related to
the study objectives can be made.
1. GSWL has a strong CSR focus. It has a policy that sets forth the scope
of its operational activities and CSR. This is in consonance with the
findings of Fox et al (2002) who revealed that companies must provide
a framework which will encourage business activities and minimize
social and negative impacts on communities that they operate.
2. GSWL has no one-size-fits-all approach in pursuing its CSR policy in
all communities. Each has unique characteristics and circumstance and
offers a unique context that requires the company to vary its CSR
activities and practices in each community towards implementing its
CSR policy in that community.
3. The CSR activities undertaken by GSWL in communities demonstrate
how it is fulfilling its CSR policies as a tool in creating a positive
picture about themselves to the general public while reducing the
problems that confront the society.
4. On the bases of the findings on the challenges of practices the
researcher concludes many challenges impede the implementation of
CSR policies is the greatest challenge of GSWL. It is however heart-
58

warming, GSWL is showing leadership and commitment in its CSR
activities even in the face of these challenges.
Summing up all the conclusions and putting all the findings together, it is
clear that, GSWL has a comprehensive CSR policy and its CSR practices are
good although they can be improved. In principle, GSWL seem to be
contributing something back to the society but the worry here is that these
projects and policies could not be said to be enough to ensure the sustainable
development of the people living in the community. Most of the time, the
company formulates its own development and environmental policies and then
informs the people about their intentions and the need for the community to
support them. The leaders who are supposed to be the mouth piece of these
people have been ‘bought’ into the circles of the company and thus they have
become lame ducks. The community is left with little choice but to accept
whatever that the company would decide on. Thus there exists perceived
ineffectiveness in their policies and there are challenges to the implementation
in the catchment communities. Thus, these conclusions point to the need for
more effective implementation to promote proper CSR practices.
Recommendations
Based on the conclusions, the following recommendations are made to
improve CSR policies and practices of Golden Star Wassa Limited (GSWL).
Successful implementation of CSR policies and projects with the
catchment communities should take a wider participatory approach of
involving local associations, local chiefs, and religious heads. These groups
should form a working group with the Sustainable Management Team to
59

sensitize members and agree terms. As a result open forums should be
organised at least twice a year so that the voice of the people in the catchment
communities can be directly heard.
The amount that goes into the Golden Star Development Fund (GSDFF)
be reviewed and increased to help fund more developmental projects due to an
increase in population of the catchment communities.
GSWL needs to train its staff well to be able to successfully face the
challenge of implementing CSR policies. A responsible and active team is
needed to engage members of communities well to assist in implementing
their CSR strategies effectively; therefore, GSWL must do more training.
Instead of the scholarship scheme being awarded to brilliant but needy
students in the catchment areas to leave to study in other communities with
better schools, at least one school in each community should be improved to a
model school status for the total improvement of educational opportunities in
these communities and not just few pupil who are selected to benefit from
awards and scholarship schemes. Also the scholarship scheme should be
tailored to incorporate brilliant but needy student from everywhere and not
selected communities in the catchment areas alone. This will provide equal
opportunities to those communities where mineral resources are not available.
GSWL must always follow up on reports to check that projects being
implemented are done properly. Standards and assessments should be the
number one priority. Wherever possible, CSR projects should be carried out
by GSWL with the local Community. This promotes collaboration and
increase local learning and knowledge transfer partnership.
60

Routine monitoring and evaluation can be built into GSWL’s CSR
policies in the form of CSR Committee agendas, CSR implementation
progress and through a Community Annual Review where the key questions
become, “have we achieved what we set out to achieve? If not, why not? And
what are we doing to improve our performance next time around?”
Suggested Areas for Future Research
This research is limited because it involves only one case study. Thus it
has limited generalisability. Future research should extend the scope to other
mining companies in the Wassa District to help gain a broader perspective of
the entire mining activities and CSR policies in the area to see how their CSR
practices differ from the organization studied.
61

REFERENCES
Abbott, W. F., & Monsen, J. R. (1979). On the measurement of corporate
social responsibility: Self-reported disclosure as a method of
measuring corporate social involvement. Academy of Management
Journal, 22, 501-515
Amponsah-Tawiah K. & Dartey-Baah K. (2011). Corporate Social
Responsibility in Ghana. International Journal of Business and Social
Science, 2, 107-112.
Anon (2003). Public Policy for Corporate Social Responsibility. World Bank
Institute Series on Corporate Social Responsibility, Accountability and
Sustainable Competitiveness, Accessed: 25th April, 2014.
Anon (2012). Corporate Social Responsibility in Mining Sector, A win-win
Situation. www.fraserinstitute.org, Assessed: 5th February, 2014.
Anon (2013a). Final Report. www.gsr.com/wassa, Accessed: 25th February,
2014.
Anon (2013b). History Mining Operations. www.gsr.com, Accessed: 25th
February, 2014.
Anon (2013c). The Ghana Chamber of Mines Code of Conduct.
http://www.ghanachamberofmines.org/site/docs, Accesses: 9th
February, 2014.
Anderson, V. (2009). Research Methods in Human Resource Management
(2nd ed). CIPD London.
62

Asongu, J. J. (2007). Innovation as an argument for corporate social
responsibility. Journal of Business and Public Policy, 1(3), 1–21.
Atuguba, R. & Dowuona-Hammond, C. (2006). Corporate Social
Responsibility in Ghana. Friedrich Ebert Foundation, Ghana, p.118.
Babbie, E. (2005). The Basics of Social Research (3rd ed.). Thomson
Wadsworth, Belmont, CA.
Baskin, J. (2006). Corporate Responsibility in Emerging Markets. Journal of
Corporate Citizenship, 24: 29-47
Baumgartner, T. A., Strong, C. H., & Hensley, L. D. (2002). Conducting and
reading research in health and human performance (3rd ed.). New
York: McGraw-Hill.
Boon, K. E. & Ababio, F. (2009). Corporate Social Responsibility in Ghana:
Lessons from The Mining Sector. Proceedings of IAIA 2009
Conference of the International Association for Impact Assessment and
Human Well-Being, Fargo, USA, 16 - 22 May, 2009, pp. 1 - 5.
Berman, S.L., Wicks, A.C., Kotha, S. & Jones, T.M. (1999). Does stakeholder
orientation matter? The relationship between stakeholder management
models and firm financial performance. Academy of Management
Journal, 42, pp. 486–506.
Best, J. W., & Kahn, J. V. (1998). Research in education. Englewood Cliffs,
NJ: Prentice Hall Inc.
63

Blum-Kusterer, M. & Hussain, S.S. (2001). Innovation and corporate
sustainability: an investigation into the process of change in the
pharmaceutical industry. Business Strategy and the Environment, 10,
300–316.
Bowen, H. (1953). Social Responsibilities of the Businessman. New York:
Harper.
Brammer, S. & Pavelin, S. (2004). Voluntary social disclosure by large UK
companies. Business Ethics: A European Review, 13(2/3), 86–99.
Brannen, J. (1992a). Combining qualitative and quantitative approaches: an
overview in Brannen, J. (ed.) Mixing methods: qualitative and
quantitative research, Avebury, Aldershot, pp 3-37.
Brenner, M. (1985). Intensive interviewing, in Brenner, M., Brown, J. and
Canter, D. (eds) The research interview: uses and approaches,
Academic Press, London, pp 147-62.
Brown, R. B. (2006). Doing Your Dissertation in Business and Management:
The Reality of Researching and Writing. London. Sage Publications
Ltd.
Bryman, A. & Bell, E. (2003). Business Research Methods. New York.
Oxford University Press Inc.
Bryman, A. (2004). Social research methods (2nd ed.). New York: Oxford
University Press Inc.
64

Bryman, A., & Bell, E. (2011). Business Research Methods (3rd ed.). New
York. Oxford University Press Inc.
Carroll, A.B. (1979). A three-dimensional conceptual model of corporate
social performance. Academy of Management Review, 4, pp. 497–505.
Carroll, A.B. (1991). The pyramid of corporate social responsibility: toward
the moral management of organizational stakeholders. Business
Horizons, July–August, 39–48.
Carroll, A.B. (1999). Corporate social responsibility: evolution of a
definitional construct. Business and Society, 38, 268–295.
Carroll A. B. (2000). A Commentary and an Overview of Key Questions on
Corporate Social Performance. Business & Society, 39, (4), 466-478.
Chamhuri S. & Wan Noramelia, M. (2004). Corporate Social Responsibility
(CSR), Costs for R&D and Financial Performance in Developing
Countries: Case Study in Malaysia, The 2004 Corporate Social
Responsibility and Environmental Management Conference
Chen, H., & Wang, X. (2011). Corporate social responsibility and corporate
financial performance in China: An empirical research from Chinese
firms. Corporate Governance, 11(4), 361–370.
Clement-Jones, T. (2005). Bottom line issue or public relations exercise? In J.
Hancock (Ed.), Investing in corporate social responsibility: A guide to
best practice, business planning and the UK’s leading companies (pp.
5–13). London: Kogan Page.
65

Commission of the Europeans Communities (2001). Promoting a Europeans
Framework for Corporate Social Responsibility. Green Paper,
Brussels, 1 - 13.
Commission of the European Community. (2004). What do we understand by
CSR? Final Report: European Multi-stakeholder Forum on CSR.
Retrieved from http://europa.en.int/forum/info/data/en_CSR. Accessed
on June 21, 2012.
Cooke, T. E., & Haniffa, R. (2005). The impact of culture and governance on
corporate social reporting. Journal of Accounting and Public Policy,
24(5), 391-430.
Cooke, T. E., & Haniffa, R. (2005). The impact of culture and governance on
corporate social reporting. Journal of Accounting and Public Policy, 24(5),
391-430. 10.1016/j.jaccpubpol.2005.06.001
Crowther, D., & Aras, G. (2010). Corporate social responsibility: Part 1 –
Principles, stakeholders and sustainability. Copenhagen: Ventus.
CSR Magazine. (2005). Special report: CSR in business schools. CSR
Magazine. July 4–14.
Creswell J. W. (2008). Educational research: Planning, conducting, and
evaluating quantitative and qualitative research. Upper Saddle River,
NJ: Pearson/Merrill Education.
Crewswell, J.W. (2009). Research Design: Qualitative, Quantitative, and
Mixed Methods Approaches (3 rd ed.). SAGE Publications Inc.
66

Davis, K. (1973). The case for and against business assumption of social
responsibilities. Academy of Management Journal, 16, 312-322
Easterby-Smith, M., Thorpe, R. & Lowe, A. (2002). Management Research:
An Introduction (2nd ed.). London. Sage Publications Ltd.
Erickson, P. & Kovalainen, A. (2008). Qualitative Methods in Business
Research. Sage Publications.
Fombrun, C. & Shanley, M. (1990). What’s in a name? Reputation building
and corporate strategy. Academy of Management Journal, 33: 233-
258.
Fontaine, C., Haarman, A., & Stefan, S. (2006). The stakeholder theory.
Summer issue: 18-26
Fox, T., Ward, H. & Howard, B. (2002). Public Sector Roles in Strengthening
Corporate Social Responsibility: A Baseline Study. Corporate
Responsibility for Environment and Development Programme. The
World Bank.
Freeman, R.E. (1984). Strategic Management: A Stakeholder Approach.
Pitman, Boston, MA.
Freeman, R. E., Wicks, A.C., & Parmar, B. (2004). Stakeholder Theory and
The Corporate Objective Revisited. Organization Science.
Gibson, R. (2000). Encouraging Voluntary Initiatives for Corporate Greening:
Some Considerations for More Systematic Design of Supporting
Frameworks at the National and Global Levels. Voluntary Initiatives
67

Workshop, United Nations Environment Programme,
www.uneptie.org/outreach/vi/reports/encouraging_voluntary_initiative
s. (accessed November 7, 2014).
Gill, J. & Johnson, P. (2002). Research Methods for Managers (3rd ed.).
London, SAGE Publications Ltd.
Gil Estallo, D. A. M. F., Giner de la Fuente, & Griful-Miquela, C. (2007). The
importance of corporate social responsibility and its limits.
International Advances in Economic Research, 13(3), 379–389.
Greening, D. W., & Turban, D. B. (2000). Corporate social performance as a
competitive advantage in attracting a quality workforce. Business and
Society, 39(3), 254–280.
Goffman E. (1967). Interaction Ritual. Pantheon Books. New York.
Gray, E. D. (2009). Doing Research in the Real World (2nd ed.). Sage
Publications. Thousand Oaks, California.
Griffin, J.J. and Mahon, J.F. (1997). The corporate social performance and
corporate financial performance debate. Business & Society, 36, p. 5.
Grix, J. (2010). The foundations of research (2nd ed.). Palgrave Macmillan,
London.
Guthey, E., Langer, R., & Morsing, M. (2006). Corporate social responsibility
is a management fashion. So what? In M. Morsing, & S.C. Beckmann
(Eds.), Strategic CSR communications (pp. 39-60). Copenhagen,
Denmark: DJOF Publishing.
68

Guthrie, J. and Parker, L.D. (1989). Corporate social reporting: a rebuttal of
legitimacy theory. Accounting and Business Research, 19, 76, 343-52.
Jenkins, H. & Obara, L (2006). Land Use dispute in Ghana’s Mining
Communities: Developing Sustainable Strategies. Centre for Business
Relation, Relationship, Accountability, Sustainability and Society,
Cardiff University, 55 Park place, Cardiff, CF 103 AT, United
Kingdom, 56 pp.
Jenkins, H. & Obara, L. (2008). Corporate Social Responsibility (CSR) in the
Industry: The Risk of Community Dependency. Centre for Business
Relation, Relationship, Accountability, Sustainability and Society, 23,
55-56.
Joyner, B. E., & Payne, D. (2002). Evolution and Implementation: A Study of
Values, Business Ethics and Corporate Social Responsibility. Journal
of Business Ethics, 41 (4), 297-311.
Hamann, & Kapelus, P. (2004). Corporate social responsibility in mining in
southern Africa: Fair accountability or just greenwash. Development,
47(3), 85–92.
Hogner, R.H. (1982). Corporate Social Reporting: Eight Decades of
Development at US Steel. Research in Corporate Performance and
Policy, 4, 243 – 250.
Hatcher, M. (2002). New corporate agendas. Journal of Public Affairs, 3(1),
32–38.
69

Hay, R. & Gray, E. (1974). Social responsibilities of business managers.
Academy of Management Journal, March, 135–143.
Heath, J., & Norman, W. (2004). Stakeholder Theory, Corporate Governance
and Public Management. Available:
http://www.springerlink.com/content/r7u0180368jh1165 Accessed:
12/09/2014.
Helg, A. (2007). Corporate social responsibility from a Nigerian perspective.
Masters Thesis. Handelshogskolon VID Goteborgs Universiteit.
Hopkins, M. (2003). The Planetary Bargain. London: Earthscan.
Keatly J, (1992). An introduction to Environmental Economics (2nd ed.).
McGraw-Hill Publishers Boston, Massachusetts.
Kennedy, D. (1997). Mining, Murder and Mayhem: The Impact of the Mining
Industry in the South. Social and Environmental Impact of Mining in
the Third World, Third World Resurgence, 93, 738/1/97.
Kim, H. R., Lee, M., Lee, H. T., & Kim, N. M. (2010). Corporate social
responsibility and employee–company identification. Journal of
Business Ethics, 95(4), 557–569.
Klins, U., Van Niekerk J.H., & Smit, A. (2010). The World Guide to CSR: A
Country-by-Country Analysis of Corporate Social Sustainability and
Responsibility. In W. Visser, Tolhurst N. (Eds). Greenleaf Publishing.
Kristin Hvideberg, T. (2007). Collective actions for poverty reduction and
empowerment in Chiapas, Mexico. Master thesis. University of Agder.
70

Latour, B. (2005). Reassembling the Social: An Introduction to Actor-
network-theory. Oxford University Press, Oxford.
Luo, X., Bhattacharya, C. B., (2006). Corporate social responsibility, customer
satisfaction, and market value. Journal of Marketing, 70 (4), 1-18.
Maignan, I., & Ralston, D. A. (2002). Corporate social responsibility in
Europe and the U.S.: Insights from businesses' self presentations.
Journal of International Business Studies, 33, 497-514.
Mandhachitara R., & Poolthong, Y. (2011). A model of customer loyalty and
corporate social responsibility. Journal of Services Marketing, 25/2,
123-124.
Matten, D., & Moon, J. (2004). Corporate social responsibility education in
Europe. Journal of Business Ethics, April.
Matten, A., Moon, D., & Siegel, D. (eds). The Oxford Handbook of Corporate
Social Responsibility. Oxford: Oxford University Press, pp. 19–46.
Milne, M. & Adler, R. (1999). Exploring the reliability of social and
environmental disclosures content analysis. Accounting, Auditing and
Accountability Journal, 12, 237-256.
Moir, L. (2001). What do we mean by Corporate Social Responsibility?
Available at: http://www.emerald-library.com/ft Accessed: 16/09/2014
Morgan, G. & Smircich, L. (1980). The Case for Qualitative Research.
Academy for Management Review, 5(4), 491-500.
71

Murray, K., & Vogel, C.M. (1997). Using a hierarchy of effects approach to
gauge the effectiveness of corporate social responsibility. Journal of
Business Research, 38, 141–159.
Muthuri, J., & Gilbert, V. (2011). An institutional analysis of corporate social
responsibility in Kenya. Journal of Business Ethics. 98 (3): 467-483.
Mwingyine, E. (2012). ‘‘Analysing the Causes and Effect of Equipment
Downtimes on a Gold Processing Plant for Optimisation - A Case
Study at Golden Star (Wassa) Limited’’, Unpublished BSc Project
Report, University of Mines and Technology, Tarkwa, 39 pp.
Orlitzky M., Schmidt F. L., & Rynes S. L. (2003). Corporate Social and
Financial Performance: A Meta-analysis, Organization Studies, 24(3):
403–441.
Peck P., & Sinding K. (2003). Environmental and social disclosure and data
richness in the mining industry. Business Strategy and the Environment
12: 131–146.
Robinson, C. (2002). Real World Research (2nd ed.). Blackwell Publishing
UK.
Rowley, T. J. (1997). Moving beyond Dydactic Ties: A Network Theory of
Stakeholder Influences. Academy of Management Review 22(4): 887-
910.
Saunders, M., Lewis, P., & Thornhill, A. (2009). Research Methods for
Business Students (5th ed.). FT. Prentice Hall.
72

Sekaran, U. (1990). Research Methods for managers: A Skill-building
Approach. John Wiley & Sons: New York Weber 1990.
Stake, R. E. (1995). The Art of Case Study Research. Thousand oaks, CA:
Sage Publications Inc.
Swaen, B. H., & Chumpitaz, V. G. (2008). Stated intentions and purchase
behavior: A unified model. International Journal of Research in
Marketing, 27(4), 356-366.
Trochim, W. M. K (2006): Non probability sampling. web center for social
research methods URL:
http://www.socialresearchmethods.net/kb/sampnon.php [accessed 17th May
2014].
Ullmann, A. (1985). Data in search of a theory: A critical examination of the
relationship among social performance, social disclosure, and
economic performance. Academy of Management Review, 10,
540–577.
Van der Laan, G., Van Ees, H. & Van Witteloostuijn, A. (2008). Corporate
social and financial performance: an extended stakeholder theory and
empirical test with accounting measures. Journal of Business Ethics,
79, 299-310.
Visser, M. E., & Both, C. (2005). Shifts in phenology due to global climate
change: The need for a yardstick. Proceedings of the Royal Society B:
Biological Sciences, 272(1581), 2561–2569.
73

Visser, W. (2005). Revising Carroll’s CSR Pyramid, an African perspective:
African Poverty and Stagnation is the greatest tragedy of our time,
Commission for Africa.
Visser, W. (2007). Revisiting Carroll’s CSR Pyramid: An African perspective.
In A. Crane & D. Matten (Eds.), Corporate social responsibility: Three
volume set (pp. 195–212). London: Sage.
Visser, W., & Tolhurst, N. (2010). The world guide to CSR: A country-by-
country analysis of corporate sustainability and responsibility.
Sheffield, UK: Greenleaf Publishing Limited.
Vogel, D. (2005). The Market for Virtue. Washington, D.C.: Brookings
Institution Press.
Wartick, S.L., & Cochran, P.L. (1985). The evolution of the corporate social
performance model. Academy Management Review, 10:758-769.
Wilmshurst, T. D. & Frost, G. R. (2000). Corporate Environmental Reporting:
A Test of Legitimacy Theory. Accounting, Auditing & Accountability
Journal, 13, (1), 10 – 26.
Winston, B. E., & Ryan, B. (2008). Servant leadership as a humane
orientation: Using the GLOBE study construct of humane orientation
to show that servant leadership is more global than western.
International Journal of Leadership Studies, 3(2), 212–222.
Wood, D.J. (1991). Corporate social performance revisited. Academy of
Management Review, October, pp. 691–718.
74

Yin, R. (1984). Case study research: design and methods. Beverly Hills,
Calif.: Sage Publications.
Yin, R. K. (2003). Case Study Research: Design and Methods (3rd ed.).
Thousand Oaks: California. Sage Publications Inc.
Zadek, S. (2000). Doing Good and Doing Well: Making the Business Case for
Corporate Citizenship. Research Report 1282-00-RR. New York: The
Conference Board.
75

AN ASSESSMENT OF THE CORPORATE SOCIAL
RESPONSIBILITY POLICIES AND ACTIVITIES OF GOLDEN STAR
(WASSA) LIMITED
Serial Number……………………….
Dear Sir/Madam,
This questionnaire is to gather data on the corporate social responsibility policies and
activities of Golden Star (Wassa) Limited in its mining communities in partial
fulfilment of the requirement of the Master of Business Administration (General)
degree programme. You are assured that your responses will be treated as
confidential. This data collection is for academic purposes only. Please be confident
to provide candid responses. Thank you for your co-operation.
Section A: Socio-Demographic Profile of Respondents
(Please tick (√) the appropriate response)
1. Sex Male Female
2. Age of respondent….…………………………………………………………….
3. How long you have stayed in your locality. Less than 1 year [ ] 1-3 years [ ] 4-
6 years [ ] 7-10 years [ ] above10 years [ ]
4. What is your level of education? No formal education [ ] M.S.L.C/J.S.S/J.H.S
[ ] A. Level/ G.C.E [ ] S.S.S/S.H.S [ ] First Degree [ ] Post Graduate [ ]
5. What is your current employment status? Unemployed [ ] Mine employee [ ]
Galamsey Worker [ ] Farmer [ ] Government Worker [ ]
76

Identification of CSR Projects
6. Has there been a significant development in your community through the
corporate social responsibility initiatives of GSRL? Yes [ ] No [ ] Have no
idea [ ]
7. Are benefits to the community equally enjoyed? Yes [ ] No [ ] Have no
idea [ ]
8. Are provisions made for alternative livelihood programmes for the community?
Yes [ ] No [ ] Have no idea [ ]
9. Do you think GSWL’s alternative livelihood programmes should be
encouraged or aborted? Yes [It should be encouraged] No [It should not
be encouraged]
10. What are your reasons for your answer in (9) above?
………………………………………………………………………….
………………………………………………………………………….
Perception of CSR Projects
11. Is there any good cooperation/relationship between GSWL and the community?
Yes [ ] No [ ]
12. What past and current projects have been under taken by GSWL?
77

Indicate from the table below:
Excellent Very Good Good Fair Poor
Scholarship
Awards
Good Drinking
Water
School Care
Roads
Maintenance
Market Places
Places of
Convenience
Electricity
Hospitals
Employment
Opportunities
Recreational
Centers
Dust
Monitoring and
suppression
Donations (in
cash or kind)
Impact of CSR Projects
13. What are some of the projects you expect the company to do for the community
in terms of fulfilling its corporate social responsibilities? Please mention and
give reasons.
i .......................................... ii …………………………..
78

iii .......................................... iv ……………………….….
v .......................................... vi
14. Does the company involve your community leaders in decision making?
15. Give reasons for your answer in (13) above?
………………………………………………………………………….
………………………………………………………………………….
16. Suggest ways the company can involve your community in decision making?
………………………………………………………………………….
………………………………………………………………………….
17. Has there been any dramatic change in the norms and practices of your
community as a result of its operations.
18. Give reasons for your answer in (15) above?
…………………………………………………………………………..
…………………………………………………………………………..
Thank You.
79

Mikaela 2015

Uploaded by

Document Informationclick to expand document information

Copyright:

Available Formats

Mikaela 2015

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Mikaela 2015

Uploaded by

Copyright:

Available Formats

© University of Cape Coast https://erl.ucc.edu.

UNIVERSITY OF CAPE COAST

AN ASSESSMENT OF THE CORPORATE SOCIAL

RESPONSIBILITY POLICIES AND ACTIVITIES OF GOLDEN STAR

Digitized by Sam Jonah Library

UNIVERSITY OF CAPE COAST

AN ASSESSMENT OF THE CORPORATE SOCIAL RESPONSIBILITY

POLICIES AND ACTIVITIES OF GOLDEN STAR (WASSA) LIMITED

Dissertation submitted to the Department of Accounting and Finance of the

School of Business, University of Cape Coast, in partial fulfillment of the

requirements for the award of the master of Business Administration (General

Digitized by Sam Jonah Library

Candidate’s Signature………………………… Date……………...

Name: Hamza Mikaela

I hereby declare that the preparation and presentation of this dissertation

were supervised in accordance with the guidelines on supervision of

dissertation laid down by the University of Cape Coast.

Supervisor‘s Signature………………………… Date……………..………….

Name: George Tackie

Digitized by Sam Jonah Library

Mining companies in Ghana receive criticism from inter alia the

media, civil society organizations, Governments and non-governmental

organisations (NGOs) for not properly responding to the challenge of

corporate social responsibility (CSR) to compensate for the negative effects of

their activities in host communities. Although some mining companies plan

increase economic opportunities and improve social welfare of people living

in mining communities, these are perceived to be inadequate. This study

examined CSR activities undertaken by Golden Star (Wassa) Limited.

Using a purposive sampling technique, the researcher sampled 100

respondents and used mixed research methods including observations,

administration of questionnaires and conduct of interviews, data on GSWL’s

as workable set of criteria for assessing and benchmarking its CSR

achievement in its catchment communities. GSWL maintains good relations

with the communities it operates in by its CSR activities. However challenges

were found to impede the implementation of CSR policies.

It is recommended that GSWL’s implementation of CSR policies and

projects with the catchment communities should take a wider participatory

approach of involving local associations, chiefs, and opinion heads. CSR

collaboration and increase local learning and knowledge transfer.

Digitized by Sam Jonah Library

My profound and special gratitude goes to my lecturers and particularly

Wassa Ltd I express my gratitude.

Community Relation Department of Golden Star Wassa Limited (GSWL),

really appreciate your assistance.

My family deserves special thanks for their valueless contribution to my

education, upbringing and my life in general. Hajia Fatimatu Ahmed, Late

Father, my lovely wife, Adizatu Iddrisu, my children Aliyu Anderson Tijani,

my love for you will never end.

Finally, to my friends and group members particularly Rebecca

Arhinfu, Emmanuel Yobe Kombat, Joyce Lamptey, Kwesi Frimpong, Diana

Digitized by Sam Jonah Library

This dissertation is dedicated to my entire Family.

Digitized by Sam Jonah Library

CHAPTER ONE INTRODUCTION 1

Background to the Study 1

Statement of the Problem 4

Objectives of the Study 6

Significance of the Study 6