A dissertation submitted in partial fulfillment of the requirements for the award of the degree of Masters of Business Administration (Corporate Management) of Mzumbe University
This research aims at assessing the impact of corporate social responsibility on poverty alleviation in mining areas in Tanzania by using a case study of African Barrick Gold (ABG) as its research design. The study was conducted at Tarime and Kahama Districts where three ABG’s gold mines of North Mara, Buzwagi and Bulyanhulu are located. A sample size of 150 was used in the study comprising of ABG employees, ward and village executive leaders, local residents and local government officials in the area.
Information relating to Corporate Social Responsibility activities conducted by ABG and their implementation were extracted from annual reports; websites, interviews, questionnaires and library research. Data collected were summarized both qualitatively and quantitatively. The sampling procedures used were judgmental sampling and simple random sampling research methodology.
Major findings show that ABG’s has invested heavily in Corporate Social Responsibility activities such as education, health, water and sanitation, electricity, infrastructure etc in all the mining areas where it operates. However, the research has found out that despite these massive investments in mining areas, ABG’s Corporate Social Responsibility activities have not contributed much to poverty alleviation for most residents in the areas.
The conclusion drawn in this study shows that effective implementation of the company’s Corporate Social Responsibility plan has a positive impact on poverty alleviation in the surrounding communities where it operates. Therefore, the study recommends to the government to regulate corporate social responsibility in the country by making it mandatory for mining companies to fund development activities in the areas where they operate. Also, the study recommends that a certain percentage of corporate tax or royalty paid by mining companies should be remitted back to local governments for promoting economic development activities in the mining areas.