Corporate Social Responsibility and Human Capital Development in Mining Host Communities
Keywords:
Corporate Social Responsibility; Extractive Industries; Human Capital; PLS-SEM; Resource-Based Theory
Abstract
This study examined the influence of corporate social responsibility (CSR) practices on community-level human capital development in mining host communities in Tanzania. While existing human capital research in the mining sector has largely focused on workforce preparedness and organisational productivity within mining firms, comparatively limited attention has been directed toward the role of CSR in supporting broader community capability development. Informed by Resource-Based Theory and CSR-development literature, the study conceptualised CSR as an external investment mechanism for community-level human capital formation. A quantitative cross-sectional research design was adopted using primary survey data collected from mining host communities in the Geita, Mara, and Kagera regions. Data were obtained through structured household interviews involving 332 valid respondents selected through stratified random sampling. CSR practices were modelled across four dimensions - economic, legal, ethical, and philanthropic - and analysed using Partial Least Squares Structural Equation Modelling (PLS-SEM). The findings indicate that CSR practices do not contribute uniformly to community-level human capital development. Legal, ethical, and philanthropic CSR practices demonstrated positive and statistically significant effects, whereas economic CSR practices showed a positive but statistically insignificant effect. Philanthropic CSR practices emerged as the strongest predictor, highlighting the important contribution of voluntary investments in education, vocational training, health services, youth empowerment, and community development programmes. The findings further suggest that governance-oriented, ethical, and community-focused CSR interventions contribute more effectively to strengthening local capabilities than purely economic-oriented CSR initiatives. The study contributes to CSR and extractive-industry literature by extending understanding of CSR beyond philanthropy and corporate legitimacy toward its developmental role in supporting community-level human capital formation. The findings also provide practical insights for mining companies, policymakers, and development stakeholders seeking to design capability-oriented CSR strategies that strengthen community resilience and promote sustainable development in mining host communities.
References
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Barney, J. B. (2018). Why resource‐based theory’s model of profit appropriation must incorporate a stakeholder perspective. Strategic Management Journal, 39(13), 3305–3325. https://doi.org/10.1002/smj.2949
Bonilla Mejía, L. (2020). Mining and human capital accumulation: Evidence from the Colombian gold rush. Journal of Development Economics, 145, 102471. https://doi.org/10.1016/j.jdeveco.2020.102471
Branco, M. C., & Rodrigues, L. L. (2006). Corporate social responsibility and resource-based perspectives. Journal of Business Ethics, 69(2), 111–132. https://doi.org/10.1007/s10551-006-9071-z
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Carroll, A. B. (1991). The pyramid of corporate social responsibility: Toward the moral management of organizational stakeholders. Business Horizons, 34(4), 39–48. https://doi.org/10.1016/0007-6813(91)90005-G
Carroll, A. B., & Brown, J. A. (2018). Corporate social responsibility: A review of current concepts, research, and issues. In Corporate Social Responsibility (pp. 39–69). Emerald Publishing Limited. https://doi.org/10.1108/S2514-175920180000002002
Carroll, A. B. (2021). Corporate social responsibility: Perspectives on the CSR construct’s development and future. Business & Society, 60(6), 1258–1278. https://doi.org/10.1177/00076503211001765
Dmytriyev, S. D., Freeman, R. E., & Hörisch, J. (2021). The relationship between stakeholder theory and corporate social responsibility: Differences, similarities, and implications for social issues in management. Journal of Management Studies, 58(6), 1–30. https://doi.org/10.1111/joms.12684
Frolova, V., Dolina, O., & Shpilkina, T. (2020). The role of financing in the development of human capital of mining industry: Modern trends under uncertainty. E3S Web of Conferences, 174, 04025. https://doi.org/10.1051/e3sconf/202017404025
Gillo, I., Bilame, O., & Anthony Assenga, E. (2023). Corporate social responsibility practices: Insights from North Mara gold mine, Tanzania. International Journal of Research in Business and Social Science (2147- 4478), 12(6), 79–90. https://doi.org/10.20525/ijrbs.v12i6.2795
Greer, C. R., Lusch, R. F., & Hitt, M. A. (2017). A service perspective for human capital resources: A critical base for strategy implementation. Academy of Management Perspectives, 31(2), 137–158. https://doi.org/10.5465/amp.2016.0004
Hair, J. F., Black, W. C., Babin, B. J., & Anderson, R. E. (2010). Multivariate data analysis (7th ed.). Pearson Education.
Hair, J. F., Black, W. C., Babin, B. J., & Anderson, R. E. (2019a). Multivariate data analysis (8th ed.). Cengage.
Hair, J. F., Hult, G. T. M., Ringle, C. M., & Sarstedt, M. (2017). A primer on partial least squares structural equation modeling (PLS-SEM) (2nd ed.). Sage.
Hair, J. F., Risher, J. J., Sarstedt, M., & Ringle, C. M. (2019b). When to use and how to report the results of PLS-SEM. European Business Review, 31(1), 2–24. https://doi.org/10.1108/EBR-11-2018-0203
Hair, J. F., Hult, G. T. M., Ringle, C. M., & Sarstedt, M. (2022). A primer on partial least squares structural equation modeling (PLS-SEM) (3rd ed.). Sage.
Hilson, A., Hilson, G., & Dauda, S. (2019). Corporate social responsibility at African mines: Linking the past to the present. Journal of Environmental Management, 241, 340–352. https://doi.org/10.1016/j.jenvman.2019.03.121
Hitt, M. A., Biermant, L., Shimizu, K., & Kochhar, R. (2001). Direct and moderating effects of human capital on strategy and performance in professional service firms: a resource-based perspective. Academy of Management Journal, 44(1), 13–28. https://doi.org/10.2307/3069334
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Isacowitz, J. J., Schmeidl, S., & Tabelin, C. (2022). The operationalisation of corporate social responsibility (CSR) in a mining context. Resources Policy, 79, 103012, 1 – 7. https://doi.org/10.1016/j.resourpol.2022.103012
Ivic, A., Saviolidis, N. M., & Johannsdottir, L. (2021). Drivers of sustainability practices and contributions to sustainable development evident in sustainability reports of European mining companies. Discover Sustainability, 2(1), 17. https://doi.org/10.1007/s43621-021-00025-y
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Kemp, D., & Owen, J.R. (2019). Establishing the foundations for effective social performance in the global mining industry. Centre for Social Responsibility in Mining, Sustainable Minerals Institute, The University of Queensland.
Kemp, D., & Owen, J. R. (2022). Corporate social irresponsibility, hostile organisations and global resource extraction. Corporate Social Responsibility and Environmental Management, 29(5), 1816–1824. https://doi.org/10.1002/csr.2329
Kiowi, L. O. (2022). Human resources practices and employees quality of life in Tanzania mining industry: A qualitative study. Journal of Human Resource &Leadership, 6(2), 89–105. https://doi.org/10.53819/81018102t2083
Kotsantonis, S., & Serafeim, G. (2020). Human capital and the future of work: Implications for investors and ESG integration. Journal of Financial Transformation, 51, 115–130. https://www.capco.com/-/media/CapcoMedia/Subfolder-Unsorted/Capco-2/PDFs/Journal-51/Journal-51WebArticle3Kotsantonis.ashx
Latif, K. F., & Sajjad, A. (2018). Measuring corporate social responsibility: A critical review of survey instruments. Corporate Social Responsibility and Environmental Management, 25(6), 1174–1197. https://doi.org/10.1002/csr.1630
Maliganya, W., & Bengesi, K. M. K. (2023). Compliance of large-scale mining companies to regulatory framework for sustainable mining: A case of Buzwagi gold mine, Kahama District, Tanzania. Business Excellence and Management, 13(3), 73–96. https://doi.org/10.24818/beman/2023.13.3-06
Maliganya, W., Bengesi, K. M. K., Mbota, M. M., & Bulengela, G. (2023). Corporate social responsibility and the challenges of the regulatory environment in the Tanzanian mining sector. In S. K. Msosa, S. Mugova, & C. Mlambo (Eds), Corporate Social Responsibility in Developing Countries (pp. 157–173). Springer International Publishing. https://doi.org/10.1007/978-3-031-27512-8_10
Mbilima, F. (2021). Extractive industries and local sustainable development in Zambia: The case of corporate social responsibility of selected metal mines. Resources Policy, 74, 101441. https://doi.org/10.1016/j.resourpol.2019.101441
Mining Act 2019 Cap 123 s.4 (1), s. 105 (1) and s. 105 (2) (Tanzania)
Mpofu, Q., & Nemashakwe, P. (2023). The adequacy of human capital for the fourth industrial revolution era in the mining industry in Zimbabwe. International Journal of Social Science Research and Review, 6(8), 67–78. https://doi.org/10.47814/ijssrr.v6i8.1419
Msosa, S. K., & Mugova, S. (2023). Corporate social responsibility challenges in the extractive industry: An introduction. In S. K. Msosa, S. Mugova & C. Mlambo (Eds.), Corporate Social Responsibility in Developing Countries: Challenges in the Extractive Industry, (pp 1-14), Springer. doi.org/10.1007/978-3-031-27512-8_10
Muhirwa, F., Shen, L., Elshkaki, A., Hirwa, H., Umuziranenge, G., & Velempini, K. (2023). Linking large extractive industries to sustainable development of rural communities at mining sites in Africa: Challenges and pathways. Resources Policy, 81, 103322. https://doi.org/10.1016/j.resourpol.2023.103322
Oatley, T. H. (2019). International political economy (Sixth edition). Routledge Taylor and Francis Group.
Owen, J. R., Kemp, D., & Marais, L. (2021). The cost of mining benefits: Localising the resource curse hypothesis. Resources Policy, 74, 102289, 1–7.
Rela, I. Z., Awang, A. H., Ramli, Z., Rusdan, M., Mappasomba, M., & Nikoyan, A. (2020a). Conceptual model of corporate social responsibility impact on community well-being. Entrepreneurship and Sustainability Issues, 8(2), 311–323. https://doi.org/10.9770/jesi.2020.8.2(18)
Rela, I. Z, Awang, A. H., Ramli, Z., Taufik, Y., Md Sum, S., & Muhammad, M. (2020b). Effect of corporate social responsibility on community resilience: Empirical evidence in the nickel mining industry in Southeast Sulawesi, Indonesia. Sustainability, 12(4), 1395, 1–17. https://doi.org/10.3390/su12041395
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Published
2026-08-06
How to Cite
Josiah Shuli, N., Aloyce Shayo, F., & Alfred Matoka, C. (2026). Corporate Social Responsibility and Human Capital Development in Mining Host Communities. International Journal of Social Science Research and Review, 9(8), 136-154. https://doi.org/10.47814/ijssrr.v9i8.3549
Section
Main Articles
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