Dr Steven Msosa, a postdoctoral fellow in the Faculty of Management Sciences, has teamed up with Dr Courage Mlambo, another postdoctoral fellow in the same faculty, and Shame Mugova, a Lecturer at Birmingham City University, United Kingdom, and also a Research fellow at Durban University of Technology, to publish a book. The name of the book is: Corporate social responsibility in developing countries: Challenges in the extractive Industry
Dr Msosa says his book examines corporate social responsibility theories and models in the context of developing countries. “The developing countries are among the poorest countries of the world, despite vast natural resources, says Dr Msosa. Dr Msosa states that the natural resources in the developing world “are mismanaged, proceeds are misappropriated, corruption and conflict are centered on resource control”. He says that Governments and Multinational Corporations (MNCs) are at the centre of the controversy of corporate social responsibility (CSR) in the affected countries. “Moreover, the lack of systems, procedures and legislation to enforce CSR has led to environmental degradation and a decline in business ethics and morality,” Dr Msosa says.
Dr Msosa also observed that companies in the extractive sector “frequently violate the rights of host communities by stealing resources, forcibly relocating people, and wreaking devastation on the environment to maximise profits”. Dr Msosa says that there are many unanswered questions about the responsibilities of key stakeholders such as governments, community leaders, and non-governmental organisations (NGOs), who are sometimes considered the last line of defense for protecting human rights and the welfare of society when there are no effective policing mechanisms in place to protect vulnerable communities.
Delving into the core of his book, Dr Msosa highlighted that the concept of social responsibility was extremely important in forming relationships between businesses and the communities in which they are located. He says that businesses can foster peaceful cohabitation with communities in their surrounding areas, using CSR activities. According to Dr Msosa, in the extractive industry, corporate social responsibility (CSR) can be a strategy to alleviate conflict among various stakeholders and meet their respective interests. He says that both social and economic forms of CSR are viable options for mediating resource disputes in locales rich in mineral deposits. Dr Msosa argues that projects with a social focus, such as building schools, health centres, entertainment centres, and water facilities, could reduce the number of fights between businesses and the people nearby. “To help mining towns, companies are also expected to provide the needed resources and infrastructure. It is necessary to have alternative livelihood initiatives available to keep the local communities’ economic lives going to maintain peaceful coexistence,” Dr Msosa says.
Dr Msosa has also said that multinational corporations have the potential to create a positive impact on society, and gain legitimacy in the eyes of their customers. Nonetheless, many questions remain about the morality of extractive industry companies’ practices, he says. CSR researchers and practitioners have an obligation to determine whether CSR activities are merely a public relations (PR) stunt designed to make the company look good to its stakeholders, or whether they are essential to the success of the business, he says. “Therefore, academics and professionals in underdeveloped nations should prioritise creating a sustainable business model to guarantee that funds go toward long-term community development,” concludes Dr Msosa.
Dr Msosa’s book was published Springer on 21 June 2023. Its target readers are academics, researchers and management professionals.
Contact Bheki Hlophe at Hlophe@mut.ac.za