Mining companies seek to legitimize their operations by meeting societal and jurisdictional expectations. Failure to address social risks can harm local communities and disrupt mine-site operations, resulting in costs for the companies. Corporate Social Investment (CSI) refers to the voluntary contributions by companies to assist local communities address development expectations through private investments that legitimize corporate objectives. This study examines reported CSI values from a sample of 57 mining companies between 2011 and 2021. Panel data regression and difference tests are conducted using financial and categorical variables. Over the study period, CSI reporting witnessed a 30% increase and improved specificity of funding allocation. The regression results suggest empirical associations rather than causation between financial performance, particularly profit moving averages, and CSI. The membership of mining companies in the International Council on Mining & Metals, an industry association, was not found to have a significant effect on CSI when calculated as a percentage of profit but requires further research due to data limitations. The findings confirm a positive trend in CSI, however, inconsistencies in reporting within and across mining companies remain a primary constraint. Given the limitations, this study should serve as a starting point for future empirical research on mining industry corporate social investment.
| Identifer | oai:union.ndltd.org:bu.edu/oai:open.bu.edu:2144/49338 |
| Date | 25 September 2024 |
| Creators | Leeah, John Trevor |
| Contributors | Bell, Andrew |
| Source Sets | Boston University |
| Language | en_US |
| Detected Language | English |
| Type | Thesis/Dissertation |
| Rights | Attribution 4.0 International, http://creativecommons.org/licenses/by/4.0/ |
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