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Corporate responsibility and compliance with the law: land, dispossession and aftermath at Newmont’s Ahafo project in Ghana

Mares, Radu LU (2012) In Society and Business Review 117(2). p.233-280
Abstract
An important part of responsible business practices is compliance with the law. This article details what actually happens when the laws of the host country fail to ensure adequate protection. The focus here is on land dispossession and loss of livelihood in relation to a gold mine project in central Ghana. How is it that a well-known international company—Newmont—with its own corporate social responsibility (CSR) statements sets up a project in the year 2003 that displaces subsistence farmers from their land without compensating in cash or with replacement land? The analysis identifies the factors that lead the company to not compensate farmers for their lost land: cost-cutting, strict adherence to the law, CSR commitment that was new and... (More)
An important part of responsible business practices is compliance with the law. This article details what actually happens when the laws of the host country fail to ensure adequate protection. The focus here is on land dispossession and loss of livelihood in relation to a gold mine project in central Ghana. How is it that a well-known international company—Newmont—with its own corporate social responsibility (CSR) statements sets up a project in the year 2003 that displaces subsistence farmers from their land without compensating in cash or with replacement land? The analysis identifies the factors that lead the company to not compensate farmers for their lost land: cost-cutting, strict adherence to the law, CSR commitment that was new and not internalized, complexities of the Ghanaian land tenure system, peer pressure to preserve the status quo, selection of an “old-school” CSR manager, and the inadequacy of Ghanaian mining law to account for relatively novel, “open-pit” mining techniques. However, the specter of famine raised by civil society activism, the involvement of the International Financial Corporation, and a better qualified CSR team constitute another set of factors that lead to a comprehensive package of livelihood improvement measures. There is a contrast between the complexity, long-term, and advanced type of assistance Newmont currently envisages and the backward, short-term, formalism, and brutality of denying compensation for land back in 2003. This research is based on the extensive documentation Newmont makes available on its web site, interviews conducted in Ghana, and literature research. (Less)
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published
in
Society and Business Review
volume
117
issue
2
pages
47 pages
publisher
Pergamon
ISSN
1746-5699
language
English
LU publication?
yes
id
5362e8e0-3029-4dc2-b9d9-ea8c1d0e6e54
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http://rwi.lu.se/app/uploads/2012/08/Corporate-responsibility-and-compliance-with-the-law.pdf
date added to LUP
2016-05-04 16:17:11
date last changed
2016-09-05 12:30:59
@misc{5362e8e0-3029-4dc2-b9d9-ea8c1d0e6e54,
  abstract     = {An important part of responsible business practices is compliance with the law. This article details what actually happens when the laws of the host country fail to ensure adequate protection. The focus here is on land dispossession and loss of livelihood in relation to a gold mine project in central Ghana. How is it that a well-known international company—Newmont—with its own corporate social responsibility (CSR) statements sets up a project in the year 2003 that displaces subsistence farmers from their land without compensating in cash or with replacement land? The analysis identifies the factors that lead the company to not compensate farmers for their lost land: cost-cutting, strict adherence to the law, CSR commitment that was new and not internalized, complexities of the Ghanaian land tenure system, peer pressure to preserve the status quo, selection of an “old-school” CSR manager, and the inadequacy of Ghanaian mining law to account for relatively novel, “open-pit” mining techniques. However, the specter of famine raised by civil society activism, the involvement of the International Financial Corporation, and a better qualified CSR team constitute another set of factors that lead to a comprehensive package of livelihood improvement measures. There is a contrast between the complexity, long-term, and advanced type of assistance Newmont currently envisages and the backward, short-term, formalism, and brutality of denying compensation for land back in 2003. This research is based on the extensive documentation Newmont makes available on its web site, interviews conducted in Ghana, and literature research.},
  author       = {Mares, Radu},
  issn         = {1746-5699},
  language     = {eng},
  number       = {2},
  pages        = {233--280},
  publisher    = {ARRAY(0xa48b9d8)},
  series       = {Society and Business Review},
  title        = {Corporate responsibility and compliance with the law: land, dispossession and aftermath at Newmont’s Ahafo project in Ghana},
  volume       = {117},
  year         = {2012},
}