public relation strategy and claim that companies do not intend to really benefit local populations (Hamann and Kapelus, 2004). To others, CSR programs divest profits from a company’s shareholders and diminish efficiency of the market economy (Garriga and iStockphotos MelÊ, 2004). It is therefore important to explore why mining companies engage in CSR practices.
CSR from the companies perspective: CSR is good for business Historically, the mining sector has brought important economic gains to both mining companies and local communities. The main economic benefit for locals was an increase in employment opportunities (World Bank and International Finance Corporation, 2002). However, in the past two decades the mining sector has become more technologically intensive and it requires fewer unskilled workers (World Bank and IFC, 2002). Since local communities do not see as many direct benefits from the mining industry as they used to, they are now challenging and opposing mining projects more frequently. Furthermore, increased environmental concerns have also contributed to resistance to mining activities.
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