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CHAPTER ONE
INTRODUCTION
1.0 Background to the study
According to Carlsson & Akerstom (2008), the early stage of industrialization broadly
discussed in the 1880s whether or not companies should be socially responsible.
Today, it has become increasingly necessary for companies to communicate their
Corporate Social Responsibility (CSR) (APCO, 2004). CSR activities need to be
communicated properly in order to counteract the growing skepticism about corporate
communications, particularly companies that overstate their social behaviours (Holme
& Watts, 2000). This trend, namely the need to be socially responsible, is flamed by
global communication that fosters a context in which organisations are more
transparent to external expectations (Elkington, 1998), making public opinion an
important gatekeeper of organisational CSR (Esrock & Leichty, 1998).
The European Commission defines CSR as a concept whereby companies integrate
social and environmental concerns in their business operations and in their interaction
with their stakeholders on a voluntary basis (EU 1, 2002). Kotler & Lee (2005) cited
in their work that CSR engagement has shifted from obligations to strategy. They
(Kotler & Lee, 2005) continue to indicate that before the 1990s CSR activities was
usually implemented as a result of pressures for “doing good to look good.” However,
today we can observe a shift towards a strategic approach which is described as,
“doing well and doing good” (Kotler & Lee , 2005 as cited by Carlsson & Akertsom,
2008, p. 2).
The corporate environment is experiencing a shift from implicit to explicit corporate
social responsibility (CSR), which has introduced new challenges and opportunities
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for corporations as to how to engage in CSR and how to communicate their CSR
activities (Matten & Moon, 2004). This shift leans towards a more explicit CSR,
which is characterized by added visibility and a more voluntary approach along with
self‐interest driven policies and corporate strategies to engage in issues that are
perceived by both company and stakeholders to be part of their social responsibility.
Mining companies in Ghana have developed their own CSR policies for implementation in their areas of operation. The business case for investing in development
that targets achieving mutual benefits especially when communities become active
development partners rather than passive recipients of philanthropy has become ever
more persuasive in today’s business arena. Walker and Howard (2002) state that
public opinion of the mining sector is poor, and opinion on natural resource extraction
industries as a whole is influenced more by concerns over environmental and social
performance. There seems not to be a clear link or cooperation between the communities and these corporate entities, where communication could clearly identify and
solve the problems the communities face, and how the corporate bodies try to resolve
these issues. However, the requirements for how corporations communicate about
CSR are however large and does not automatically generate trust and respect and,
corporations’ communication strategies for CSR play a significant role in their
success (Schultz et al.; 2004).
Anaman (2008) asserts that there is a very fine line between CSR that creates
dependency and CSR that develops a community or region in a sustainable way
through communication tools. The challenge for mining companies therefore is to
develop CSR programmes that maintain good will for the company and address the
long-term developmental needs of communities in a sustainable way, without creating
a culture of dependency. It is against this background that this study discusses the
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concept of corporate social responsibility and the importance of professional CSR
communication.
1.1. Statement of the Problem
The issue of CSR in many organisations has gradually risen to the extent where
companies or organisations are not just interested in the practice of CSR but also how
to communicate their activities to their stakeholders (Moir, 2001). “For most
companies, the question is not whether to communicate but rather what to say, to
whom, and how often” (Kotler, 2003, p.563). The old expression “all publicity is
good publicity” is no longer valid in the harsh competition between and among
companies today (Apéria & Back, 2004). Getting publicity and being put in the
limelight because of a negligent attitude towards CSR issues is hardly a situation a
company wants to face. Today, most companies practice CSR, but the question of
how to successfully communicate the CSR approach remains unanswered Carlsson &
Akerstom (2008). The statement by Maignan & Ferrell (2004) is quite significant.
They note, “Business cannot hope to enjoy concrete benefits from CSR unless they
intelligently communicate…their initiatives to relevant stakeholders” (Maignan &
Ferrell, 2004, p.17). By implication, the awareness of CSR has become so high that
every stakeholder demands information concerning how it is treated by the
organisation.
The media has kept the debate on CSR in the public domain and ethical investors and
financiers are seeking more information all the time (Ejbo 1, 2005). As a result
corporations have to prove to their many stakeholders and often skeptic audience that
they actually are as good as they claim they are. Owing to the skepticism towards
CSR claims and messages, and due to the complexity of how to communicate CSR,
corporations that are nonetheless good at CSR tend to hesitate when it comes to
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communicating their social responsibilities and therefore miss out on a lot of goodwill
(Eriksen, 2009).
AngloGold Ashanti is one of the biggest mining companies in Ghana and just as the
other mining companies they are compelled to take the questions of responsibility
seriously and most especially to its catchment communities. AngloGold Ashanti has
therefore been chosen as the case company for this study. Torvienyeku, Hinson &
Adom (2007) and Mensah (2009) looked at CSR practice in AngloGold Ashanti with
a focus on the extent to which they are committed to their social responsibilities. This
study therefore attempted to interrogate the Corporate Social Responsibility concept
at AngloGold Ashanti Limited through Schramm’s Interactive Communication
Model. Thus the study attempted to assess the dialogic aspect of AngloGold’s CSR
communication with their stakeholders.
1.2 Objectives of the study
This study focuses on how organisations develop and manage CSR with a critical
assessment on how CSR is communicated. The study therefore seeks to:
 Investigate the concept of corporate social responsibility at AngloGold
Ashanti Ltd.
 To investigate the CSR communication strategy at AngloGold Ashanti.
 Employ Schramm’s Interactive Communication model as a guide to assess
the CSR communication process at AngloGold Ashanti.
1.3 Research Questions
To be able to address the objectives of this study, the research addressed the following
research questions:
1. How does AngloGold Ashanti interprete Corporate Social Responsibility?
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2. Which communication strategy is employed by AngloGold Ashanti in
communicating CSR?
3. How does the CSR communication process at AngloGold Ashanti fit into
Schramm’s Interactive Communication Model?
1.4 Limitations
This study does not attempt to describe the overall practice of CSR in all the mining
companies in Ghana. The study focuses on AngloGold Ashanti Limited, one of the
biggest mining companies in Ghana. The study limits itself to CSR communication at
AngloGold Ashanti Limited. Although, CSR is practiced in other mining companies
in Ghana, the findings of this study may not apply to all.
1.5
Significance of study
This study will contribute to the discussion on the importance of CSR to an
organisation. The study’s main focus was to provide a CSR communication
framework using Schramm’s interactive communication model as a guide. The CSR
communication framework will provide a deeper insight into the role of
communication in a CSR approach; and also help organisations to understand better
some of the reasons why they have to be responsible socially and how to get
stakeholders to acknowledge their (businesses) contributions to the communities. The
CSR framework if acknowledged as a new model will serve as a novelty for
practitioners. However, if it is not acknowledged as such, it will still reinforce
research on the importance of communication in CSR activities. Another important
contribution of this study concerns the emerging managerial implications on CSR;
this is because as more and more knowledge is acquired on CSR and Communication,
the more effective CSR initiatives can become. It will enable the organisation and
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stakeholders to know how to communicate to each other in order to be understood.
This in the long run will help foster a mutual and beneficial relationship between the
parties involved.
1.6
Chapter disposition/Organisation of the study
The study is organized under six interrelated chapters. Chapter one is an introduction
to the study and it identifies the problem area and the problem to be investigated. It
also includes a discussion on the research objectives, research questions and the
significance for this study.
Chapter two reviews related literature on the study. Chapter three discusses the
theoretical framework underpinning the study. It examines two theories and their
relevance to the study. It also presents a CSR communication framework based on
Schramm’s Interactive Communication Model. Chapter four discusses the
methodology for the study. This would be sub-sectioned as follows: research design,
population, sampling and sampling techniques, data collection procedures and mode
of analysis. Chapter five presents the analysis, discussions and interpretation of the
data based on Schramm’s Interactive Communication Model. Finally, chapter six will
be made up of the summary of the findings, recommendations and the conclusion.
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CHAPTER TWO
LITERATURE REVIEW
2.0 Introduction
This chapter reviews concepts and findings of other related works done in the past
that are related to Corporate Social Responsibility. The review will heighten the
relationship or importance of such works to the current study.
2.1 Corporate Social Responsibility
A good look at the business environment today reveals that Corporate Social
Responsibility (CSR) is one concept that has received a lot of attention over the last
decade. According to Tench and Yeomans (2009), CSR is a sub-branch within the
field of public relations and can be defined as the planned and sustained effort to
create a mutual understanding and maintain goodwill between an organisation and its
stakeholders (Pickton & Broderick, 2005: p. 547). Kakabadse, Rozuel & Lee-Davis
(2005) adds that the CSR field can be portrayed as sporadic and fragmented, and
includes many different terms, definitions and approaches from both the academic and
the business world. Terms such as corporate philanthropy, human rights,
environmental responsibility and sustainability seem to be fairly settled within the
field whereas concepts such as reputation, CSR, and stakeholders are defined in
countless ways (Kakabadse et al 2005: 280, Neergaard, 2006: 20, Matten & Moon,
2008: 405).
Madsen, Nielsen & Andersen (2010) describes it (CSR) as a buzz-word that has been
around for a while and has still survived its buzz. This description by Madsen et al
(2010) falls in line with that of Savitz (2002) who explained that CSR today has made
its way into the strategy of most businesses, in that it has become a central point of
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consideration in the founding, development and management of businesses. However,
there’s been a gradual change from a focus on shareholders to a focus on all relevant
stakeholders (Freeman et al, 2005). As a result, most companies must incorporate the
demands of stakeholders into their business strategies in order to maintain their
competitiveness.
One of the most loudly spoken demands from organisational stakeholders, and
furthermore from the general public, is that of ethical behaviour in business (Acha &
Martin, 2005). According to Hooghiemstra (2000), the on-going debate about
environmentalism and corporate social responsibility, society is trying to hold
organisations accountable for their business practices and thus creating a need for
companies to actively confront these issues.
This is not to say that communicating the value of ethical behaviour is sufficient but
rather a focus on societal development towards an increased importance of honesty
and genuinely ethical behaviour is important. Especially in the field of CSR
communication where there is a possibility of companies making promises which they
might not be able to live-up to is ever-present. This phenomenon is called a
promise/performance gap and comes across through the point where not living up to
promises can hold serious consequences for the reputation and brand of a company
and thereby affect the profitability of a modern institution (Ven, 2008). This has also
been demonstrated many times throughout history – for example in the Exxon Valdez
oil spill, the Enron scandal, Nike’s child labourers or even Tiger Wood’s recent
embarrassment. In spite of the significant focus on CSR and the attention to the
actions of companies, getting an overview of the theories concerned with the
communication of CSR efforts can be complicated, since thorough research is both
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scarce and diverse in findings (Morsing & Beckmann, 2006, p. 193; Ziek, 2009,
p.137-145 as cited in Madsen et al, 2010).
The concern for corporate social responsibility can be traced back to the 1930’s when
Barnard made references to the social responsibilities of executives and business
(Mahoney, 2002: p.163 as cited in Engsig, 2011). Barnard (1968) argues that how
organisations approach CSR is dependent on the level of morality, within the
members of the organisation’s management (Thinkingshift.wordpress, March: 2007 as
cited in Engsig, 2011). With the issue of increment in consumerism in the 60s and
70s, companies found it harder to maintain closed systems that gave them immunity
from social and political pressures from stakeholders (Gregory, 2001: p.42 as cited in
Engsig, 2011) and return on investment became gradually less important and was no
longer the main driver in corporate thinking as these created conflicting relationships
with for example employees, customers, suppliers, and government regulators. The
growth of consumerism has resulted in consumers being critical of many questionable
business practices and has supported the imposition of increasing regulation on the
corporate sector (Engsig, 2011).
2.2 The Evolution of CSR
The field of CSR has not been introduced to the corporate agenda easily or without
problems. Instead, CSR has emerged as a negotiated compromise between the needs
and demands of societal authorities such as businesses, the media and the consumers
(Madsen, Nielsen & Andersen, 2010).
According to (Madsen et al, 2010), over the last decades, globalisation has been a
high profile word throughout society. Organisations operate in a global economy that
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is characterised by greater and more intense competition, and at the same time, greater
economic interdependence and collaboration. However, many people are concerned
with the consequences of globalisation, and the business world has had to adapt (to
globalisation) in order to survive in the new international society (Madsen et al,
2010). According to Madsen et al (2010), one of the major impacts of globalisation is
the opening of borders and the creation of multiple new opportunities for businesses.
Andriof, Jörg & Malcolm McIntosh (2001), add that in the new global society,
companies are now able to “compete in most of the world’s markets … raise funds
from numerous different and competing sources and … buy supplies from anywhere
in the world” (p. 17). Thus, the business environment has become more competitive
than ever and most of the large transnational corporations who have the resources
have quickly managed to take a global lead in their respective industries.
Albareda (2008) asserts that globalisation has gradually decreased the control of
nation-states. She further explains that hitherto nations were able to control businesses
politically, legally and economically. However, the new economy where many
corporations have more economic power than most states has enabled corporations to
work beyond this control and thus create their own private authority (Albareda, 2008,
p. 430-431).
Werther & Chandler (2006) also add that, the concept of non-governmental power in
deciding the political agenda means that companies can basically take advantage of
the new global opportunities as they please if no interference occurs. Albareda (2006)
once again contributes to the discussion by stating that, history has proven that this is
power that many transnational companies used to adopt the principle of “providing
the maximum value for shareholders solely by maximising their profits.” This
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principle she states, “has led to a series of environmental and social crises gaining
much public attention (p. 432).”
Globalisation therefore has given large companies much more power and authority
worldwide and as a result they have a whole new range of global responsibilities.
However, this has also given them the means to exploit society and the environment
as a whole. According to Madsen et al (2010), this development has resulted in the
need for a new source of control to enable companies to keep to honouring their
responsibilities when found unable to do so themselves. This new source of control
they refer to as ‘globalisation of information and the introduction of new
communication technologies.
Andriof et al (2001), asserts that the internet is the most important development with
respect to information technologies, since it has enabled an almost instantaneous
global sharing of information with minimal costs (p. 17). Consequently, there is no
longer such a thing as domestic activities in the corporate world, in that wrongdoings
can fast be brought to the attention of the general public (Madsen et al, 2010). As
Werther and Chandler (2006, p. 55-57) point out, transparency is on the rise and
keeping a secret is practically impossible. Particularly three kinds of stakeholders are
benefitting from these opportunities: Consumers, who are able to access much more
information, Non-Governmental Organisations (NGO’s) who are able to inform,
attract and mobilize individuals, and finally the media, who are able to meet the
demand for instantaneous information (Werther et al, 2006, p. 57). For the media, the
combination of globalisation and communication technologies has led to the creation
of powerful media conglomerates that are able to set the public agenda like no others
(Ibid. pp. 19-20).
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Political consumerism may be defined as ‘the use of market purchases by individuals,
groups, and institutions, who want to take responsibility for political, economic, and
societal developments’ (Micheletti et al. 2004 as cited in Jacobsen, 2006). It would
make sense, though, to replace ‘take responsibility for’ by ‘influence’ in order not to
overrate the engagement of the typical consumer (Jacobsen, 2006). In other words, the
passive consumer has turned into the active, political consumer. According to Madsen
et al (2010), one deciding factor in the emergence of the active consumer has been the
growing economic affluence in society, where consumers today can afford to consider
other factors than price. In wealthy societies, consumers do not need to worry about
the necessities of life, such as food and a roof over their heads (Werther et al, 2006, p.
13-14). Instead, they can afford to make choices based on personal preferences and
higher expectations towards the business world. Furthermore, the extensive media
coverage of different business-induced crises has raised enough concern in the
consumers to provoke them into taking an active stance (Ibid. pp. 19-21). As a result,
the political consumer is born.
Jacobsen, Dulsrud & Klein (2000) argue that the purchase choice of a single
consumer may not make much difference, however the Internet has made it possible
to aggregate the support of many consumers and thereby form political movements
that may challenge political or economic powers (ibid. p. 471 as cited in Madsen et al,
2010).
Madsen et al (2010) add that this has resulted in new active consumers turned into a
political power that companies cannot afford to ignore. The response from the
business world has been to introduce corporate social responsibility as a voluntary
framework where self-regulating instruments help companies adopt CSR in their core
business functions (Albareda, 2006, p. 433). By so doing, the companies hope to
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proactively respond to the demands of their stakeholders and thus regain some of their
lost power from the media and the consumers.
In all, the international society today consists of several powerful players, such as the
global businesses, the global media and the active consumers. The corporate world
has become a playing field where information flows freely and the needs and
demands of all players need to be taken into consideration by the other parties. CSR
has emerged from this playing field as a means to keep corporations to an ethical code
of conduct and a way for businesses to differentiate themselves in the minds of the
consumers (Madsen et al, 2010).
2.3 Perspectives on CSR
According to Eriksen (2009), there has been a wide range of criticism against the
complexity and fuzziness of the CSR concept. However, the main argument points to
the fact that CSR means different things to different people, and while there is no
precise and measurable definition, it brings forward such problems as to what is
accepted as socially responsible behaviour, how much corporations should invest in
CSR and which CSR investments should be prioritized at the expense of others
(Tyrell, 2006). For this reason, scholars like Milton Friedman, Archie B. Carroll, John
Elkington and Edward Freeman have looked at the concept of CSR from various
scholarly angles as shown below:
2.3.1The Economic View
Many researchers on the CSR concept, including Carroll (1979), consider that the
modern era of social responsibility was marked by Howard R. Bowen’s (1953) Social
Responsibilities of the Businessman which is actually the first definitive work on the
subject. A turning point in the history of CSR was represented by Friedman’s (1962)
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position that corporate social responsibility is “fundamentally subversive” affecting
the mechanism of the free market. He argued that the only responsibility of business
was to make as much profit as possible for their stockholders. At the same time, a few
years later, as Carroll (1991) emphasised, Friedman posited in The Social
Responsibility of Business Is to Increase its Profits (1970) that management is “to
make as much money as possible while conforming to the basic rules of the society,
both those embodied in the law and those embodied in ethical customs (p.173-178).”
This was to say that the famous economist accepted the economical, legal, and ethical
responsibilities of business organisations, rejecting or not considering only the
philanthropic ones. Milton Friedman represents the classical economic argument,
which emphasises that corporations only have one responsibility, which is to
maximize profits and that social responsibilities are not to be a business concern
(Friedman, 1970; Eriksen, 2009). Milton Friedman is often mentioned when referring
to the classical economic argument and many opponents of CSR have expressed a
similar opinion (Carroll & Buchholtz, 2003, p. 42). Friedman argues that “If there are
‘social responsibilities’, they are the social responsibilities of individuals, not of
business” (Friedman, 1970; Eriksen, 2009). The corporate executive, who acts as a
principal and not as an agent, only has a direct responsibility to the owners of the
corporation and must act in accordance with the desires of the owners which generally
means; “… to make as much money as possible while conforming to the basic rules of
the society, thus those embodied in law and those embodied in ethical custom”
(Friedman, 1970; Eriksen, 2009, p.14). According to Eriksen (2009), Friedman’s
views indicate that he does not essentially support the philanthropic aspects of CSR as
a mere gesture of donating money to social causes with the purpose of benefitting
society but also as a means of business profit maximisation. Whereas Friedman
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(1970) states that businesses only have economic responsibilities, Freeman (2006),
Carroll (2003) and Elkington (1997) believe that economic responsibilities is but one
of many elements included in the concept of CSR. They all agree that profit is a
prerequisite and the basic building block for all other corporate responsibilities
(Eriksen, 2009). Contrary to Friedman (1970), Freeman (2006), Carroll (2003) as well
as Elkington (1997) argues in favour of CSR. Carroll and Buchholtz (2003, p. 43)
assert that very few business people and academics continue to argue against the
fundamental concept of CSR (being profitable and obeying the law). They go on to
say that some of the arguments against CSR might have been valid in the past, but are
unlikely to be convincing in this present time. For example the well-known economist
Michael E. Porter has changed his mind and now acknowledges social responsibilities
as part of the corporate agenda (Eriksen, 2009). A careful look at the literature on
CSR, business ethics and corporate governance shows that the CSR concept has more
arguments in favour of it. Perhaps the most cited argument speaking in favour of CSR
is that corporations are amongst the financially strongest units on earth and some of
the most influential actors in society (Morsing & Thyssen, 2003, p. 11‐12; Habisch &
Jonker, 2005, p. 7 as cited in Eriksen, 2009), as such they ought to play a more
prominent role in solving or reducing societal problems.
2.3.2 The Inclusive and Altruistic View
This view is championed by Archie B. Carroll the director of a non-profit
management & community services programme at the University of Georgia. His
areas of expertise are strategic management, corporate social performance/
stakeholder management, CSR and business ethics. In 1979 Carroll proposed a four
part definition of CSR, known as the pyramid of CSR which has often been used and
referred to in business and management literature over the years (Matten & Moon,
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2004; p. 337). Carroll (1979, p. 500; 1991 p.42) defines CSR as “the economic, legal,
ethical, and discretionary (philanthropic) expectations that society has of
organisations at a given point in time.” Carroll’s approach to CSR is argued to be
inclusive due to the many elements including discretionary responsibilities and is of a
more practical character as he proposes an array of ways in which managers should
adopt CSR (Eriksen, 2009).
Carroll (1991) provides the most extensive definition of CSR by arguing that in order
for CSR to be considered legitimate, businesses need to address not only the
fundamental requirements of being profitable and obeying the law but also the need to
meet expectations of ethical and philanthropic responsibilities. It is however
uncertain whether economic and legal responsibilities can be characterised as part of a
corporation’s social responsibility because being profitable and obeying the law can
be seen as an implicit part of doing business and therefore a basic prerequisite as was
argued by Milton Friedman (Eriksen, 2009). According to Carroll (1991), the
philanthropic components of CSR are the following: to perform in a manner
consistent with the philanthropic and charitable expectations of society; to assist the
fine and performing arts; to engage managers and employees in voluntary and
charitable activities within their local communities; to provide assistance to private
and public educational institutions; to assist voluntarily those projects that enhance a
community’s quality of life (p. 40 – 42). Carroll’s pyramid of CSR is interesting since
it covers four distinct elements (economic, legal, ethics and philanthropy). He has
added the more voluntary philanthropic responsibilities to the CSR concept, which he
states are no less important than the others, but is desired by the society and can be
described as an icing on the cake (Carroll, 1991; p. 42). Other scholars, according to
Carroll and Buchholtz (2003), have argued that the economic emphasis is separate
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from the social emphasis. In this regard, he states that one of the advantages of the
pyramid of CSR is that it offers both aspects (economic & social) and therefore
addresses the concerns of people with different viewpoints and opinions (Carroll &
Buchholtz, 2003; p. 39). The most critical tensions are between economic
responsibility and the others (legal, ethics &philanthropy) because they represent a
possible conflict between concerns for profit vis-à-vis the society (Carroll &
Buchholtz, 2003). He does not exhaustively specify the degree of social
responsibility, or what each of the four components (economic, legal, ethical and
voluntary or philanthropic) of corporate social responsibility comprises. This is
because the concept social responsibility changes over time and varies for different
corporations and industries (Carroll, 1979). Carroll (1999) has studied the evolution
of a definitional construct of Corporate Social Responsibility, and it can be argued
that he has come to terms with the fact that no one size fits all. Carroll (1991) states
that part of the difficulty in defining CSR is the fact that it is hard to determine what
the concept practically implies for management due to, for example, the variations in
corporate size, product offerings, profitability and resources, and impact on society
and stakeholders. Does the word stakeholder comprise the society? Carroll’s
statement in this instance brings out the concerns as to whether ‘society’ and
‘stakeholders’ are two different entities or the society is part of the stakeholder.
2.3.3 The Instrumental View
John Elkington has been described by Business Week as a dean of the corporate
responsibility movement for three decades. He is the co‐founder of the consultancy
think‐tank SustainAbility and has for three decades worked with, and helped raise
attention to the importance of the concept of sustainability. In the SustainAbility 2004
report CSR was defined as; “… an approach to business that embodies transparency
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and ethical behavior, respect for stakeholder groups and commitment to add
economic, social and environmental value.” The concept of ‘the triple bottom line’
was first introduced by Elkington in 1994 and consists of a trinity of environmental
quality (planet), social justice (people), and economic prosperity (profit) that
corporations should identify with (Elkington, 1997). The triple bottom line provides
principles and guidelines that indicate how corporations should perform and report on
the triple bottom line by integrating financial, social and environmental reporting
(Elkington, 1997; p. 72). According to Eriksen (2009), Elkington’s approach to CSR
is considered instrumental. It is the most practical of the four perspectives and
conceptualisations presented.
Elkington (1997) who works with the term sustainability argues that as with the
concept of CSR, the term ‘sustainability’ has been defined in numerous ways leading
to uncertainties of what it means to be a sustainable corporation. He argues that the
transition to a sustainable capitalism or green capitalism, also referred to by others as
responsibility, is a complex transition but constitutes real progress (Elkington, 1997).
He further states that businesses and entire economies will be required to perform
with the triple bottom line as well as give an account of their performance (Elkington,
1997), or else they risk extinction. According to the concept (the triple bottom line),
the three bottom lines are interdependent, and therefore, they should also be given
equal weight in the company’s balance sheet. This is to say that the Society depends
on the economy and the economy also depends on the global ecosystem, whose health
represents the ultimate bottom line (Elkington, 1997). This interdependence also
suggests that the three bottom lines are not stable. For example, the environmental
situation of a country may change, and this will influence the economic and social
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bottom lines as well (Elkington, 1997). Consequently, it is a constant challenge for the
business leader to strike the right balance, thus achieving sustainability.
The elements of sustainability are similar to elements of the CSR concept (Eriksen,
2009). Like Friedman, Freeman and Carroll, Elkington stresses that corporations first
and foremost have economic responsibilities or must perform according to the
economic bottom line. They must perform against the social bottom line. Hence he
agrees with Freeman (2007) and Carroll (2003) that social justice is part of a
corporation’s responsibilities. Elkington (1997) places a special emphasis on
environmental aspects of sustainability. As such, he defines sustainability as a trinity
of profit, people and planet, which constitute performing against and reporting on the
triple bottom line and respect for stakeholders. Environmental responsibilities are not
neglected by the other theorists (Carroll, Freeman & Friedman), but are included
under ethical and legal responsibilities.
2.3.4 The Stakeholder View
Edward Freeman is a philosopher and a professor of business administration. Freeman
is considered to be the originator of the stakeholder concept and the majority of all
publications on CSR refer to him (Neergaard, 2006). Freeman & Velamuri (2006)
suggests that the term ‘corporate social responsibility’ should be replaced by the term
‘company stakeholder responsibility’. The idea is for all kinds of corporate
institutions to adopt the new term (company stakeholder responsibility) since the main
objective of CSR is to create value for key stakeholders and fulfill responsibilities to
these group. The reason is that business and ethics cannot be separated (Freeman &
Velamuri, 2006). Freeman & Velamuri’s view on CSR is argued to be normative
because he proposes that a stakeholder approach to CSR is the right thing to do
(Freeman & Velamuri, 2007).
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Freeman et al (2006) argues that in order for corporations to pursue their purposes,
they first and foremost have to generate profits. He however clearly points out that
organisations are not capable of generating profits or fulfilling responsibilities without
engaging their stakeholders (Freeman & Velamuri, 2006, p. 20). Creating value for
various stakeholders and fulfilling responsibilities to these groups, according to
Freeman is what being socially responsible is all about.
Friedman, Freeman, Carroll and Elkington each have a distinct opinion about what it
means to be a responsible or sustainable corporation. Eriksen (2009) suggests that, it
is fundamental for all corporations and the basic building block for being a
responsible corporation to generate profit. Thus, performing against the economic
bottom line is a requirement for a corporation to first of all survive and also to utilise
its resources to generate value for both business and stakeholders.
The integration of CSR into corporate vision, values, strategies and organisational
culture is also an argument that has been widely agreed upon. The CSR concept is
however, distinct to each corporation and is dependent on the nature of each
organisation’s internal and external business. This point is important to stress on
since it supports the earlier argument (under subhead 2.2.1) that it is challenging if not
impossible to provide a precise definition of CSR. This is because the meaning of the
concept varies from organisation to organisation. Marrewijk (2003) agrees that the
idea of a “one‐fits-all” definition of CSR should be abandoned. He argues that the
idea implies accepting various and more specific definitions. As a result each
organisation should select the most suitable definition or concept according to
intentions, ambition, level and strategy, and also according to the circumstances in
which it operates (Marrewijk, 2003). Marrewijk then provides a definition of
corporate sustainability and corporate social responsibility as referring to “company
20
activities – voluntary by definition – demonstrating the inclusion of social and
environmental concerns into business operations and in interactions with
stakeholders” (Marrewijk, 2003; 102). Marrewijk however, noted that his definition
might be perceived as broad and vague.
Thus in sum, CSR is a complex and elusive concept. This study however stresses the
acceptance of the fact that it is not possible to provide an overall definition of CSR.
As a result it is up to each corporation to define what CSR embraces according to
context, skills and expertise, and to decide to what degree the corporation needs to
engage in responsible activities besides what is dictated by law.
2.4 The Stakeholders of CSR
The discussion on the perspectives of CSR shows that stakeholder relationship
management plays a central role in the CSR concept. Carroll (2003), Elkington
(1997), and especially Freeman (2007), expresses the importance of managing
stakeholder relationships and creating value for both the business and the multiple
stakeholders. According to Eriksen (2009), Friedman does not mention the word
stakeholders in his work, but rather speaks of three groups, which the corporate
executive has a responsibility towards. The corporate executive in the first place has a
responsibility towards stockholders followed by customers and employees. Friedman
(1970) continues that every time corporate executives engage in social responsibility
they are using someone else’s money for a general social cause. This is to say that the
money spent on social causes are likely to result in a reduction in the returns to
stockholders, higher prized products for customers and lower wages for employees
(Friedman, 1970). These arguments are in line with the separation idea that business
and society are two separate entities. It appears that Friedman (1970) does not believe
21
that value for multiple stakeholders can be created simultaneously, implying that
business and society are not capable of benefitting alongside (Eriksen, 2009).
Eriksen (2009) asserts that Freeman (1984) approaches CSR in a much different way
than Friedman (1970), in that he (Freeman) bases the entire concept of CSR on
stakeholder management. Freeman (1984) defines stakeholders as “any group or
individual who is affected by or can affect the achievement of an organisation’s
objectives (p. 46).” This is a broad definition that includes a wide range of both
internal and external stakeholders. The argument then is if businesses are viewed as a
connection of stakeholders who are all in it together, then, there is no need to
distinguish between economic, social, political and technological parts. Thus, the
question of social responsibility becomes irrelevant and the issue disappears (Freeman
& Liedtka, 1991). The very idea of taking a stakeholder approach to CSR is that value
creation becomes a joint process between the business and its various stakeholders
(Freeman & Velamuri, 2006, as cited in Eriksen, 2009). Freeman et al (2006) then
emphasises that taking a stakeholder mind-set should be voluntary and managed by
organisations themselves (Freeman & Velamuri, 2006, p. 18). However, Freeman &
Velamuri’s assertion that the stakeholder approach should be managed by the
organisation themselves brings out the concerns as to whether the community is part
of the stakeholder group and should take an active role in managing CSR. Thus
engaging with stakeholders would require intensive dialogue with both internal as
well as external stakeholders in which the community could be a very important
sector to consider. In regard to this, “real business is built on a foundation of solid,
honest and open communication” (Freeman & Velamuri, 2006, p. 18). As such,
Freeman is of the opinion that the business of business is value creation for multiple
stakeholder groups (Eriksen, 2009).
22
Today, much CSR theory builds on the stakeholder principle, which generally
emphasise that corporations should strive to sustain a positive and mutually beneficial
relationship to all their internal as well as external stakeholders (Neergaard, 2006;
Freeman & McVea, 2001). Freeman’s (2001) arguments therefore appear much
stronger in the contemporary society than the views presented by Friedman (Eriksen,
2009). Eriksen (2009) asserts that the centrality of value creation and stakeholder
relationship management is evident from Carroll’s (2003) and Elkington’s (1997)
views on CSR. Carroll (2003) for example stresses in his works that the pyramid of
CSR represents a stakeholder perspective and each of the four components (ethics,
legal, economic and voluntary or philanthropy) in his pyramid of CSR addresses
different stakeholders (Carroll & Buchholtz, 2003; Eriksen, 2009). The fact that both
internal and external stakeholders are considered is an indication that Carroll agrees
with Freeman on creating value for multiple stakeholders. Carroll thus includes
responsibilities that benefit business and society (Eriksen, 2009).
Elkington (1997) too emphasises a multiple stakeholder approach and argues that “it
is becoming clear that communicating effectively with stakeholders on progress
towards economic prosperity, environmental quality and social justice, namely the
triple bottom line, will become a defining characteristic of corporate responsibility in
the 21st century” (Wheeler & Elkington, 2001, p. 1). Elkington (1997) argues that the
key tool for performing against the triple bottom line in an integrated way is
sustainable accounting, auditing and reporting, and therefore stresses the importance
of effective stakeholder consultation with a wide range of stakeholders (Elkington,
1997). Even though Elkington advocates a stakeholder approach to CSR in the form
of stakeholder communication and consultation, it seems that he is more oriented
towards one‐way communication. Freeman, Harrison & Wicks (2007) on the other
23
hand emphasises two‐way communication and stakeholder dialogue (Eriksen, 2009).
Thus managing stakeholder relationships and engaging in dialogue with these groups
is a crucial aspect of CSR.
2.5 Stakeholder CSR Communication Strategies
Several studies in relation to CSR and how it is communicated and why it is
communicated has been conducted (Matten & Moon ,2008; Hinson, 2011). These
theorists focused on how companies express their CSR activities, what the activities
consist of, and what motivate corporations to describe these CSR activities in the way
they do. Basu & Palazzo (2008) looked at the internal institutional determinants, such
as sensemaking processes - from which the CSR initiatives take their point of
departure - and investigated how managers developed and maintained an ongoing
awareness of themselves and the environment(as cited in Ensig, 2011). However, this
study does not seek to reveal how managers make decisions, or how they describe
their CSR activities, but to explore which communication strategies are used towards
which stakeholders and through which channels.
As a consequence, focus is put on Morsing & Schultz (2006) who have outlined 3
CSR communication strategies; the information strategy, the response strategy and the
involvement strategy. This theory is derived from Grunig and Hunt (1984) who
presented four types of PR communication strategies: press agentry, public
information, two-way asymmetric communication, and two-way symmetric
communication (Tench & Yeomans, 2009, p.150). Although the two-way symmetric
communication strategy has been subjected to criticism for being an idealistic model
that cannot be executed in real life (Tench & Yeomans, 2009, p.151), Grunig &
Hunt’s work has created the foundation for several scholars (Smith, 2005, Morsing &
24
Schultz, 2006, Cornelissen, 2010). The criticism is primarily based on the fact that
companies choose who they aim their communication at as well as the contents of it
(Tench & Yeomans, 2009, p.151), which is argued to make the communicative
situation asymmetric as it goes one way. However, based on the nature of the medium
and the ever rising consumerism this issue is estimated to be of less importance as
senders of a pure two-way symmetric communication cannot control the replies of the
receivers who might change the subject (Ensig, 2011).
2.5.1 The Stakeholder Information
The stakeholder information strategy is based on one-way communication, indicating
that organizations are concerned with “talking” and not “listening” to stakeholders,
since they inform stakeholders of their good intentions, decisions, and actions in
relation to its CSR efforts. The purpose of this strategy is to inform the stakeholders in
order to ensure their support without the use of third party endorsement, because it is
believed that only the company can be the sender of trustworthy communication
(Ensig, 2011). The whole idea behind this strategy therefore is to ensure that the CSR
engagement of a company is communicated effectively to its stakeholders (Morsing &
Schultz, 2006, p.326). However, although informing is a necessary element of CSR
communication, it does not result in participation, dialogue, or involvement and this
gives companies full control of the communicative situation.
2.5.2 The Stakeholder Response Strategy
The stakeholder response strategy is a two-way asymmetric communication strategy
that involves stakeholders in the CSR communication, as they are given the
opportunity to respond to it. The purpose for organizations to engage in this type of
dialogue with its stakeholders is to determine whether or not its CSR actions are
25
accepted. In this category, communication is executed so to ensure feedback from
stakeholders in order to learn what they tolerate and accept (Ensig, 2011).
Organizations in this category are primarily concerned in creating a positive image by
satisfying the demands of stakeholders. This insinuates that the communication is
sender-oriented and the responses enlighten the companies whether or not they are
succeeding in satisfying the demands of the stakeholders (Ensig 2011). In this
category the companies are in relative control, as the feedback (which they do not
control) is invisible for the public as it can only be viewed by the organization. As a
result, the company does not engage in an actual dialogue with its stakeholders or
encourage participation and involvement, because organizations simply ask the
stakeholders to respond to its communication (Morsing & Schultz, 2006, p.327).
2.5.3 The Stakeholder Involvement Strategy
Finally, the stakeholder involvement strategy delivers an opportunity for dialogue,
participation, and involvement. This category is based on a symmetric, two-way
communication model that allows for the stakeholders and the company to influence
each other through dialogue. As a result, the stakeholders are not just the receivers in
the communication process but become proactively involved in it, which enables
corporations, continuously, to understand and live up to the stakeholders’ changing
expectations (Morsing & Schultz, 2006, p.328).
One approach to stakeholder
involvement is the use of third party endorsement. Companies wishing to portray
themselves as truly socially responsible will benefit from including the opinions and
statements of external stakeholders in the CSR communication. The opinions and
statements would be a result of the dialogue between the company and its
stakeholders (Morsing & Schultz, 2006, p.334). Third-party endorsement can be
executed by third-party individuals – e.g. specialists or celebrities - or by internal
26
stakeholders who are included as advocates (Smith, 2005, p.126). In this sense,
internal stakeholders can be perceived as less objective than external stakeholders and
they do not necessarily strengthen the credibility of the company. However, engaging
the employees in CSR activities can have some advantages, as it might increase the
commitment of the employees in the company. Internal endorsement might increase a
company’s ability to attract and retain employees (Morsing 2006, p.335). However,
organizations can invite both supportive and less supportive stakeholders to
participate in the dialogue concerning their CSR engagement. When engaging in a
dialogue with these stakeholder groups, companies develop an understanding of their
stakeholders’ concerns and interests as well as identify potential risks, since these
stakeholders may present unmet needs, thereby allowing the companies to turn these
into opportunities of creating value (Freeman & Velamuri, 2006, p.18; Morsing, 2006,
p.179; Morsing & Schultz, 2006, p.335). In this category the companies are not really
in control, as they cannot control a conversation that involves several parties.
As a final remark it must be clarified that for companies to succeed with their CSR
communication, all three communication strategies should be employed. The two first
strategies are important because a company should inform and encourage response
from its stakeholders. Furthermore, companies should be able to involve the
stakeholders in the communication of CSR and combine the 3 strategies as they are
interdependent (Morsing & Schultz, 2006, p.336).
2.6 Stakeholder Dialogue
Eriksen (2009) proposes that organisations will be more likely to act in socially
responsible ways if they engage in institutionalised dialogue with their stakeholders.
27
Campbell (2007) also asserts that interaction is claimed to enhance the understanding
and appreciation of other actors’ concerns. As stated under subhead 2.4 (p. 14),
stakeholder theory is closely related to the concept of CSR. In addition, interactive,
mutually engaged and responsive stakeholder relationships are argued to be the way
modern business is to be conducted in order to contribute to transparency and
accountability (Andriof & Waddock, 2002). Thus for the purpose of CSR initiatives,
one‐way communication is not sufficient and as a result the two-way stakeholder
dialogue perspective (Freeman’s model) has been suggested to be the necessary
option for organisations to build and maintain legitimacy (Morsing & Schultz, 2006).
In recent times, the stakeholder theory has developed a focus on the importance of
engaging stakeholders in long-term value creation (Andriof et al. 2002). It is a process
that focuses on developing a long-term mutual relationship rather than simply
focusing on immediate profit. This is not to say that profit or economic survival is not
crucial but rather to point out that in order to profit and survive, companies need to
engage frequently with a variety of stakeholders upon whom their dependence is vital.
In this regard the focus shifts from stakeholders being managed by companies to a
focus on the interaction that companies have with their stakeholders based on a
relational and process-oriented view (Andriof & Waddock 2002, p. 19). This
relational and process-oriented view shows an increased interest in understanding how
managers can manage not the stakeholders themselves, but relationships with
stakeholders (Morsing et al, 2006). As a result, this stakeholder approach has
increased the scope of stakeholder relationships for public relations and marketing
managers practising their profession and communication skills to a strategic potential
for all functional managers to relate to multiple stakeholders (Morsing et al, 2006).
Stakeholder relationships in this process-oriented perspective have even been
28
suggested as a source of competitive advantage (Andriof & Waddock, 2002; Post,
Preston & Sasch, 2002; Johnson-Cramer et al. 2003; Morsing et al, 2006). Thus those
companies with strong relations to other organisations, institutions and partners are in
a better position to develop relational rents through relation specific assets,
knowledge-sharing routines, complementary resource endowments and effective
governance (Dyer & Singh 1998 as cited in Morsing et al, 2006). The stakeholder
relationship is assumed to consist of “interactive, mutually-engaged and responsive
relationships that establish the very context of doing modern business, and create the
groundwork for transparency and accountability” (Andriof et al. 2002, p. 9). This
brings the notion of participation, dialogue and involvement to the centre of
stakeholder theory, with a clear inspiration from democratic ideals. While dialogue is
the tool, agreement and consensus are most often regarded as the solution on which to
base further decisions and actions in order to continue the collaboration. As argued by
Johnson-Cramer, Berman & Post (2003) “The essence of stakeholder dialogue is the
co-creation of shared understanding by company and stakeholder” (p. 149).
2.7 CSR in Non-Mining Companies
Although the concept of CSR is relatively new in Africa, the idea that business is part
of society, with responsibilities to the people of a country or region, is widely
established. Businesses, like human beings, achieve their full potential through
engagement with others. With the growth of public concerns about the political,
economic, social and environmental impact of the activities of corporations in
societies in which they operate, several initiatives at the global level to promote CSR
has gradually increased. For example, Atuguba & Dowuona-Hammond (2006) cited
three key initiatives, namely the Organisation for Economic Cooperation and
Development (OECD) Guidelines for Multinational Enterprises, the International
29
Labour Organisation (ILO) Tripartite Declaration on Principles Concerning
Multinational Enterprises and Social Policy, and the United Nations Global Compact;
all these seek to encourage corporations to make positive contributions towards
economic and social developments with the intention to minimize and resolve the
difficulties to which their operations may give rise to. With the control that the
International Legal System has over state actions, Atuguba & Dowuona (2006) notes
that CSR then does not only fall within the municipal law of a country but rather also
within the context of International law. This is a position which Ghana and countries
over the world do encounter due to international trade.
Companies are seen to have a responsibility to ‘give something back’ to the society.
At present, most companies associate CSR with philanthropy, or corporate giving in
the form of donations, particularly to causes such as health and medical provision,
education, HIV/Aids, agriculture and food security, and underprivileged children.
Sponsorship of sporting events and cultural ceremonies are also popular forms of
corporate giving in Africa. Workplace issues, such as labor standards and decent
wages are emerging as key CSR issues in African countries (Kivuitu, Yambayamba &
Fox, 2005; Lohman & Steinholz, 2003).
Over the past decade, Ghana has witnessed a gradual increment in CSR initiatives by
various companies from various corporate sectors. Some of the leading sectors are
banking, telecommunication, insurance and mining. The domains of socially
responsible behaviours (for example CSR) are diverse (Sen & Bhattacharya, 2001).
From a general perspective this diversity has been highlighted in previous studies
(Carroll, 1999; Owen and Scherer, 1993; Sen & Bhattacharya, 2001) and business
practices and this includes corporate philanthropy, environmental protection,
personnel and employee support, community support, equal opportunity, products,
30
disclosure of social information, representation of women, and representation of
minorities (Assiouras, 2012). Companies with an active approach towards socially
responsible activities have benefitted in several ways. From a marketing perspective
for instance, these benefits include consumers’ positive product and brand
evaluations, enhancement in brand image and personality, store attractiveness, brand
choice, brand loyalty and commitment, brand identification, identity attractiveness,
brand recommendations, advocacy behaviours and firm value market (Creyer & Ross,
1997; Oppewal et al., 2005; Sen et al., 2006; du et al., 2007; Marin & Ruiz, 2007;
Madrigal & Boush, 2008; Wigley, 2008; Gupta & Pirsch, 2008; as cited in Assiouras,
2012). There have been several studies conducted to investigate the will of consumers
to pay more for a social responsible product or willingness to change their buying
preferences for more social responsible companies. As cited by Assiouras (2012),
Auger, Burke, Devinney & Louviere (2003) assert that consumers express willingness
to pay more for products made ethically (e.g., soap with no animal testing) a result
which is in accordance with Creyer & Ross (1997) research. Moreover, Sen &
Bhattacharya (2001,) suggests that consumers are more likely to be loyal to those
companies, promote them to others, and be resistant to negative publicity about them
when they identify with them. CSR having proved to be beneficial, most companies
across the world are actively engaging in it. For example, in Ghana it is not a secret
that telecommunication operators have popularised corporate social responsibility
(CSR) in this country. Until the telecommunication operators came, Ghanaians were
short-changed when it came to CSR (myjoyonline.com, 2012). In fact, the other major
CSR contributor is the mining sector, however, unlike the non-mining sectors the
need to be socially responsible is demanded by the mining communities as the mining
operations degrades their environment. The mining activities in actual sense deprive
31
the mining communities of their livelihood as most of these communities tend to be
farming communities. As a result CSR has become a necessity and compensation to
these deprived mining communities. Telecommunication operations on the other hand
improve people's lifestyles and conditions, and yet the telecommunication operators
are at the forefront of CSR in this country. For instance, in the early part of 2012,
Airtel Ghana one of the major Telecommunication companies in Ghana aired on
Ghanaian TV (Tv3 station) thirteen compelling episodes of its flagship CSR
programme, Touching Lives. As part of this CSR initiative, Airtel has embarked on a
donation spree to beneficiaries aimed at impacting their lives (nowghana.com, 2012).
2.8 An Overview of AngloGold Ashanti Ltd
Formerly known as Ashanti Goldfields Corporation (AGC), the mine has passed
through many phases since its creation in 1897. It was founded by three Cape
Coasters – Joseph Biney, Joseph Brown and Joseph Ellis Officially incorporated and
listed on the London Stock Exchange in 1897 by Edwin Arthur Cade (IAS, 2012).
The aim for enlistment was to raise funds to expand and modernize the mine. The
Company was also enlisted on the London Stock Market. In the late 1960’s, Lonrho
under the leadership of Tiny Rowland took over the ownership and direction of the
Ashanti. In 1969, the ownership structure changed with the Ghana Government
having a stake in the company for the first time in the history of the Company.
Government had a 20% stake in the company. Lonrho maintained the remaining 80%
for some time. The ownership structure changed again in 1975 after a coupe d'état.
The Government together with Lonrho agreed to increase Ghana Government shares
from 20% to 55%. To best serve the interest of the company, the technical
management of the mine was placed under the minority shareholder Lonrho, which
later came to be known as Lonmin. History was made in the development of Ashanti
32
when Sam Jonah was appointed as the first African Managing Director in 1986 at the
age of 35.
In 1994 the Government sold 20-25% of its interest in share floatation and the
company was listed on the London and Ghana Stock Exchanges (IAS, 2012). It was
the largest floatation organised by any gold mining company (IAS, 2012). Each of the
company’s 10,000 employees received five free shares. In 1996 it was listed on the
New York Stock Exchange and it became the first African Company to appear on
Wall Street (IAS, 2012). In the remaining half of the 1990s, the Obuasi mine
underwent an expansion phase known as the African Mining & Exploration PLC
(AMEP) era of modernisation and improvement in mining technology (IAS, 2012).
Ashanti Exploration activities culminated into more acquisitions and increase in ore
reserves to prolong the life of the mine (IAS, 2012).
2.8.1 Ashanti–Anglogold Merger
The merger was to create a Synergy as well as to maximize the potential of the
company’s assets for its shareholders and the stakeholders. This included: Financial
feasibility to develop access in the most efficient way; remove capital market
constraints such as low tradability of Ashanti shares to achieving high market value;
develop breadth of operational expertise particularly in the deep level mining and
ensure that Ashanti is attracted to major international investors (IAS, 2012).
Ashanti needed a partner, with deep level mining expertise and financial wherewithal
to collaborate Ashanti’s efforts. Ashanti and AngloGold joint venture operation in
Geita was an example of how the two companies could cooperate further for their
mutual interest in Africa and beyond (IAS, 2012). A merger with AngloGold
addressed issues to secure the long-term future of Ashanti’s assets. AngloGold will
33
provide the expertise in deep level mining, especially in Obuasi. The merger created a
company with the world’s largest gold reserves and resource base (IAS, 2012).
2.8.2 Corporate Social Responsibility: Prior to 2004 (Pre-Merger)
Corporate social responsibility of the Obuasi mine in its early stages of establishment
was centred on philanthropic donations to communities, organisations and individuals
(IAS, 2012). This was later changed to community assisted projects. About 30% of all
community assisted projects were as a result of the company’s activities impacting on
the communities (IAS, 2012). The rest of the projects were assistance offered by the
company as a result of its goodwill gestures. Some of the community projects
sponsored by the company included schools, hospitals, roads, bridges, potable water
supplies, power supply to two communities, recreational facilities including Len Clay
and Ofori Stadia, etc (IAS, 2012).
Other CSR projects of AGA includes the rural electrification projects, community
water supply, apprenticeship training & skills development, alternative livelihood
projects, education & sports, health & sanitation, roads, bridges & culverts, Obuasi
garment project, piggery project and agriculture (IAS, 2012).
34
CHAPTER THREE
THEORETICAL FRAMEWORK
3.0 Introduction
This chapter deals with the theories that underpin this study and their relevance to the
discussion. It also presents a CSR communication framework. All of these theories
contribute to the frame of thinking that has necessitated and supported the widely
acclaimed CSR discourse by creating emphasis on the connection between business
practices and society.
3. 1 Stakeholder Theory
According to Fontaine, Haarman & Schmid (2006), a stakeholder approach to strategy
came up in the mid- 1980s and a major focal point in this movement was the
publication of Richard Edward Freeman. Freeman is generally credited with
popularizing the stakeholder concept. According to Key (1999), Freeman (1984) was
the first scholar to present a “theory'' assessing the role of actors in the firm's
environment. His work carried on a stream of work that suggested that other internal
and external actors impacted a firm’s behaviour besides stockholders as the economic
model suggests (Key, 1999). Freeman (1984) indicated that his view of the
stakeholder concept was done from the perspective of the company. According to
Fontaine et al (2006) Freeman built on the process work of Ian Mitroff, Richard
Mason and James Emshoff. Actually the use of the word stakeholder came from the
pioneering work done at Stanford Research Institute (SRI) in the 1960s. Fontaine et al
(2006) further state that these works were heavily influenced by several concepts that
were developed in the planning department of the Lockheed Company and these ideas
were developed from the studies done by Igor Ansoff and Robert Steward. Ansoff
was around 1960s working for the SRI in association with Lockheed (Friedman
35
2006). It is also clear that business leaders were thinking and expressing the
stakeholder concept long before the early 1960s. For instance, Eberstadt (1977)
suggested that as early as the middle ages, ``God'' was considered a stakeholder, that
is a corporate partner whose profits could be distributed to the poor at the end of each
year (as cited in Key, 1999). Adam Smith's (1937) identification of external interests
to the firm may also be viewed as an early recognition of stakeholders, consumers
being external members who were affected by and had an interest in the firm. Further,
Preston and Sapieca (1990) mentioned that Johnson & Johnson identified customers,
employees, managers, and the general public in 1947 (as cited in Fontaine, 2006). The
company Sears named four parties to any business in the order of their importance as
“customers, employees, community and stockholders” in the year 1950. Friedman
(2006) considers a particular concern about the corporation, which emerged along
with the origins of the corporation as a legal entity which he calls the “soulless
corporation”. This suggests a moral or normative vacuum that has favored ideas of
how this could or should be dealt with (Fontaine, 2006). According to Fontaine et al
(2006), in order to fill this vacuum the stakeholder concept has come up to handle this
demand for a moral responsibility. They add that by distinguishing in their work
between pre- and post- Freeman (1984) it should be easier to understand why the
stakeholders approach has become so popular during the last twenty years. Generally
important to know is that from the start on the stakeholder approach grew out of
management practice. Barnard (1938) suggested that employees were an important
factor in a firm's success and, as such their interests should be carefully assessed.
3.2 Stakeholder Management
According to Friedman & Miles (2006), Donaldson & Preston (1995), identified three
different schools of the stakeholder theory: the normative, the instrumental, and the
36
descriptive which describe the reasons for companies to engage in CSR (as cited in
Engsig, 2011).
SCHOOL
CHARACTERISTICS
Companies in this approach presents and
The descriptive approach
explains practice
In this approach focus is put on the
interests of the company and emphasizes
The instrumental approach
that CSR needs to be made relevant for
business, meaning that a company would
only engage to CSR and act ethically as
long as it is profitable.
This approach suggests that corporations
should keep a high ethical standard
The normative approach
because it is the right thing to do, whether
it is profitable or not.
Fig. 1 The different schools of the Stakeholder Theory (Donaldson & Preston, 1995)
Engsig (2011), Donaldson & Preston (1995:72) assessed the normative approach as
the strongest as it is the only one able to provide epistemological justification for the
stakeholder theory. However Friedman & Miles (2006) states that this is not to say
that Donaldson and Preston rejected the instrumental or the descriptive approaches
but just emphasize that stakeholder theory requires a normative philosophical
approach (Friedman & Miles, 2006:28 as cited in Engsig, 2011). They (Friedman &
Miles) signify that the 3 approaches must be regarded as nested within each other
(Engsig, 2011).
3.2.1 The stakeholder approach
Andriof & Waddock (2002) assert that the stakeholder theory in recent years has
turned focus on the importance of engaging stakeholders in long-term value creation
as a result of scandals (as cited in Morsing & Schultz, 2006: Engsig, 2011). Formerly,
stakeholders had their attention on specific industries such as manufactures of
tobacco, weapons, alcohol etc., but today CSR issues have become more
unpredictable and include e.g. child labour, sweatshops, and human rights (Engsig,
37
2011). These issues concern more or less all industries as the critical stakeholder
attention not only is restricted to the company but also includes the entire supply
chain (Morsing & Schultz, 2006). This implies that a company’s engagement in CSR
needs on-going stakeholder awareness and a more sophisticated approach to
communication strategies (Morsing & Schultz, 2006) in relation to how to
communicate, where to communicate, when to communicate, and to whom.
There have been several stakeholder models and frameworks that have been posed in
relation to defining and categorising stakeholders, for example, Freeman & Reed
(1994) made a distinction between primary, secondary and institutional stakeholders.
Others make distinctions between local/global and internal/external stakeholders
(Freeman & McVea 2001 as cited in Engsig 2011). Cornelissen (2010) presented the
stakeholder salience model and the power-interest matrix, which functions as a
mapping device simplifying the process of formulating appropriate communication
strategies based on stakeholder categorisations (Cornelissen, 2010). That is to say that
there are so many versions of the stakeholder theory.
Fontaine et al, (2006) for example has flawed the Stakeholder Theory on the grounds
there are several definitions to the theory. One major contribution to the Stakeholder
theory is Freeman’s work “Strategic Management: A Stakeholder Approach” (1984)
and which is often referred to as the foundation of the Stakeholder theory. Many
Economists or Sociologists have made their contribution but not always sharing
Freeman’s concept of Stakeholders. As a result of these divergences Fontaine et al
(2006) identified more than 75 definitions of Stakeholders in their work. This is
mainly due to the fact that the Stakeholder Theory is not only an economic theory but
also a philosophic and sociologic concept as well.
38
In relation to stakeholders, this study will be centred on the stakeholder salience
model. This is due to the fact that the model is estimated to have the ability to create a
relatively nuanced picture in a straightforward manner compared to the power-interest
model (Engsig, 2011). According to Engsig (2011), power in this context, signifies
the power of a stakeholder group in relation to an organisation. Thus the more salient
the stakeholders are the more they need to be communicated with (Cornelissen, 2010,
p.50). The power-interest model divides the stakeholders into four quadrants – A:
minimal effort, B: keep informed, C: keep satisfied, D: key players – based on
distinctions between level of interest and power, whereas the stakeholder salience
model divides the stakeholders into seven groups (Engsig, 2011). These are: Latent
(dormant, discretionary, demanding), Expectant (dominant, dangerous, dependent)
and Highly salient (definitive).
For the purpose of this study the model used is not essential in this context, as the
main emphasis is put on the channels through which organisations communicate to
the stakeholders, and this topic is primarily included in order to emphasize the
importance in acknowledging the different stakeholder needs.
3.3 Communication theory/model
Communication comes in many forms; it can be between different species and exists
on many platforms. It encompasses a great deal of human (and animal) activity.
Reading, writing, listening, speaking, viewing images and creating images are all acts
of communication. Expressions, gestures, ‘body language’, and other non-verbal
either conscious or unconscious are all forms of communication.
Communication has been defined in different ways by different people depending on
their interests. According to Littlejohn (2001), “The word communication is abstract
39
and, like all words, possesses multiple meanings. Scholars have made many attempts
to define communication, but seeking a single working definition may not be as
fruitful as probing the various concepts behind the term.” Mortensen (1972) adds that,
“In the case of the term communication, few would have qualms about saying that it
occurs whenever people attempt to use the power of spoken or written words to
influence others. And yet here is where the difficulties occur. Does our common-sense
notion mean that communication is limited solely to human activity? Do machines
communicate? Is all communication a matter of using spoken or written words? What
is meant by the idea of influence? Must the influence be intentional? If so, what about
overheard or accidental speech that nonetheless modifies the behaviour of a
bystander? Is all thinking to be regarded as communication?”
Dance (1967) in his work proposed three points of “critical conceptual
differentiation,” which forms the basic dimensions along which the various
definitions of communication differ.
•
Level of observation. Definitions vary in level of abstractness. Some
definitions are broad and inclusive; others are restrictive.
•
The inclusion or exclusion of intentionality. Some definitions include only
intentional message sending and receiving; others preclude intention.
•
Normative judgment. Some definitions include a statement of evaluation;
other definitions do not contain such implicit judgments of quality.
Dance’s analysis of communication definitions remains the single most
comprehensive discussion of the many ways communication has been defined
(Dance, 1967 as cited in Mortensen, 1972). The table below presents conceptual
40
components in communication as derived from Dance’s views. (Shkaminski-ClassesHandouts-Definitions of Communication).
Conceptual components in communication (from Dance)
1. Symbols/Verbal/Speech
“Communication is the verbal interchange of thought or
idea” (Hoben, 1954).
2. Understanding
“Communication is the process by which we understand
others and in turn endeavour to be understood by them.
It is dynamic, constantly changing and shifting in
response to the total situation” (Anderson, 1959).
3. Interaction/ Relationship/
Social Process
“Interaction, even on the biological level, is a kind of
communication; otherwise common acts could not
occur” (Mead, reprinted 1963).
4. Reduction of Uncertainty
“Communication arises out of the need to reduce
uncertainty, to act effectively, to defend or strengthen
the ego” (Barnlund, 1964).
5. Process
“Communication: the transmission of information, idea,
emotion, skills, etc., by the use of symbols-words,
pictures, figures, graphs, etc. It is the act or process of
transmission that is usually called communication”
(Berelson and Steiner, 1964).
6. Transfer/Transmission/
Interchange
“The connecting thread appears to be the idea of
something’s being transferred from one thing, or person,
to another. We use the word ‘communication’
sometimes to refer to what is so transferred, sometimes
to the means by which it is transferred, sometimes to the
whole process. In many cases, what is transferred in this
way continues to be shared; if I convey information to
another person, it does not leave my own possession
through coming into his. Accordingly, the word
‘communication’ acquires also the sense of
participation. It is in this sense, for example, that
religious worshipers are said to communicate” (Ayer,
1955).
7. Linking/Binding
“Communication is the process that links discontinuous
parts of the living world to one another” (Ruesch, 1957).
8. Commonality
“It (communication) is a process that makes common to
two or several what was the monopoly of one or some”
(Gode, 1959).
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9. Channel/Carrier/Means/Route
“The means of sending military messages, orders, etc.,
as by telephone, telegraph, radio, couriers” (American
College Dictionary).
10. Replicating Memories
“Communication is the process of conducting the
attention of another person for the purpose of replicating
memories” (Carrier and Harwood, 1953).
11. Discriminative Response/
Behavior Modifying Response
“Communication is the discriminatory response of an
organism to a stimulus” (Stevens, 1950).
12. Stimuli
“Every communication act is viewed as a transmission
of information, consisting of a discriminative stimuli,
from a source to a recipient” (Newcomb, reprinted
1966).
13. Intentional
“In the main, communication has as its central interest
those behavioral situations in which a source transmits a
message to a receiver(s) with conscious intent to affect
the latter’s behaviors” (Miller, 1966).
14. Time/Situation
“The communication process is one of transition from
one structured situation-as-a-whole to another, in
preferred design” (Sondel, 1956).
15. Power
“Communication is the mechanism by which power is
exerted” (Schacter, 1951).
Fig. 2 Conceptual components in communication (Dance, 1967)
The entire definitions hint at the general picture of what communication means.
According to Mortensen (1972), the most fruitful alternative to an exhaustive and
exclusive definition is one that specifies the conditions deemed necessary for an act of
communication to be said to occur. The concern, then, is with fundamental attributes
rather than with an exhaustive and definitive description. He adds that these
fundamental aspects or conditions can best be surveyed within the framework of a
single broadly conceived postulate: Communication occurs whenever persons
attribute significance to message-related behaviour. Thus communication is dynamic
and not static. It’s irreversible and proactive, interactive, contextual and grounded in
perspective. Mortensen (1972) adds that Communication does not take place in a
vacuum; it is not a “pure” process, devoid of background or situational overtones; it
42
always requires at least one’s minimal sensitivity to immediate physical surroundings,
an awareness of setting or place that in turn influences the ebb and flow of what is
regarded as personally significant.
3.4 Transmission versus Interaction of the Communication Theory
Within communication theory, two basic paradigms can be identified, the
transmission and the interaction paradigms (Frandsen, Johansen & Nielsen, 2002,
p.34). They add that the transmission paradigm sees the sender as the active decisionmaker who determines the meaning of the message, and the receiver as the passive
target who ascribes a secondary role (Frandsen et al., 2002, p.35). This indicates that
the transmission paradigm sees communication as a one-way sequence (Frandsen et
al., 2002, p.34) or as a linear process in which the speaker speaks and the listener
listens. For instance, the Shannon-Weaver communication system as well as that of
Harold Laswell pictures communication as relatively static and linear process and it
fails to create space for the construction of meaning which is vital for success in
communicating with one another (Frandsen et al., 2002, p.34). In addition, neither
context nor purpose is included and it does not consider the relationship between the
parties or consider the influence made by the medium thus their model does not depict
communication as a continuous process of messages and feedback. According to
Frandsen et al. (2002, p.36) communication is a complex, interactive process which
relies on the active participation of both sender and receiver, and cannot be accurately
represented by a linear system. Thus the linearity of the transmission paradigm can
result in unintended ideas when transferred to human conduct as a result transmission
models cannot be estimated to offer an accurate reflection of the complex nature of
communication.
43
As an alternative to the transmission paradigm scholars introduced the interaction
paradigm, which acknowledges that meanings are actively constructed by both
initiators and interpreters (Frandsen, 2002, p.36). Thus this interactive model shows
how two people communicate. In this sense communication is seen as circular and
simultaneous, and it is defined as dynamic and strategic, because it consists of a social
interaction in which senders as well as receiver are active participants (Frandsen et al.,
2002, p.36). The word interaction then can be defined as a kind of action that occurs
when two or more people have had an effect on each other. Figure 3 illustrates
Schramm’s model of communication, in which communication is reciprocal, even
though the feedback may be delayed.
Fig. 3 Schramm’s model of communication as conceptualised by Devito (1994)
One person, the sender, wants to send a piece of information, the message. The sender
uses a communication channel, such as email or face-to-face conversation, to a second
person, the receiver. Sometimes noise, a term referring to any distractions, will
compromise the message. Once the receiver has the message, he or she will send
44
feedback, letting the sender know whether the message was transmitted well and how
the receiver feels about it. Schramm’s model includes context and culture, which are
central elements within a message, first of all, because a message may have different
meanings, depending upon the specific context or setting (Frandsen, 2002, p.63).
Second, a message may have different meanings associated with it depending upon
the culture or society (Frandsen, 2002, p.63). Thus both parties involved in the
communication are influenced by their individual experience, knowledge and culture.
Communication systems, thus, operate within the confines of cultural rules and
expectations. Schramm’s interactive model as compared to Lasswell and Shannon’s is
less lineal. Although it accounts for bilateral communication, the complex, multiple
levels of communication between several sources – which is the case on especially the
internet - is beyond this model (Schramm’s model). However, the idea of a two-way
effect is central in this definition, as opposed to a one-way effect. This is basically
based on the fact that relationships normally involve a level of interdependence,
because humans in a relationship tend to influence each other, share thoughts and
feelings, and engage in activities so to gain a mutual understanding. Sieberg (1976, as
quoted in Smith 2005, p.120) defined dialogue as confirming communication, because
it seeks to heal and strengthen relationships.
Several academics (Gioia & Chittipeddi, 1991; Maitlas & Lawerence, 2007) argue
that sense-giving and sense-making are critical processes for the understanding and
construction of issues in organisations. This is as a result of the fact that issues are
viewed differently by various stakeholders, organisational members, and organisation.
Sense-making theories simply help companies to better understand communication
processes. Basu and Palazzo (2008, p.123) describe the process of sense-making as a
process by which individuals develop cognitive maps of their environment. We make
45
sense of things in conversations, when reading text from others, while exchanging
ideas (Nijhof et al., 1994, quoted in Morsing & Schultz, 2006, p.324) which implies
that neither a manager nor an organisation makes sense in isolation (Craig-Lees, 2001,
as cited in Morsing & Schultz, 2006, p.324). Gioia et al (1994, as cited in Morsing &
Schultz, 2006, p.324) asserts that sense-making process is influenced by the
individual’s or the organisation’s ability to integrate the sense-making of others into a
strategically productive relationship. Thomas & Daniel (1990, as cited in Morsing &
Schultz, 2006, p.324) adds that, managers need to create a sense of both the internal
as well as the external environments and hereafter create a defined and revised view.
As a result, sense-making can be described as action oriented as it continuously seeks
to develop guides of behavior. Due to this sense-making is significant to organisations
as it turns crisis situations into comprehensible meanings that create the basis for
action. However, when discussing sense-making, it is inevitable not to discuss sensegiving. Gioia and Chittipeddi (1991, p.442) defined sense-giving by stating that:
“sense-giving is concerned with the process of attempting to influence the sensemaking and meaning construction of others toward a preferred redefinition of
organisational reality”. In agreement with Morsing & Schultz (2006, p.324), sensegiving can then be classified as an extension of sense-making, because sense-making
is concerned with understanding, whereas sense-giving deals with the influence and
sharing of understanding.
3.5 CSR Communication Framework
The process of CSR communication is not a linear one. It consists of circular and ongoing processes involving planned organisational communication based on the
anticipation of stakeholder’s needs and feedback (Madsen et al, 2010). Thus, the
46
focus remains on the analysis of planned communication in the manner given by the
field of hermeneutics. In dealing with planned mass communication, Windahl and
Signitzer (2004, p. 118) draw upon Harold Lasswell’s formula “Who says What in
which Channel to Whom with what Effect?”(Madsen et al, 2010). This study employs
the interactive model by Schramm as its basis for the CSR communication
framework. The model (interactive model) serves as a means to demonstrate that in
the execution of planned communication, all the following aspects are crucial to its
success: the Sender, the Message, the Receiver, the Channel, feedback and field of
experience.
3.5.1 Sender
As Shramm’s (1955) communication model implies, communication first starts with
the sender. Windahl et al (2004), suggests that the first thing to look at when
considering planned communication, is the sender (Windahl et al. 2004). In this
instance, the analysis should look at important internal factors of the organisations in
focus (Madsen et al, 2010). Morsing et al (2006), also cast the sender as a key part of
their information strategy, in which a company needs to ensure, that stakeholders are
informed in a professional manner in order for the company to gain their support. In
Morsing & Schultz point of view (2006, p. 326-327), such efficient communication is
reached through sending out consistent messages based on strategic considerations
and on the goals and core values of a company, supporting an information strategy.
Hence, there is the need for companies to assess their internal strategies and values
before communicating their CSR activities.
According to Madsen et al (2010), the integration of communication and strategies is
also essential for CSR initiatives. Freeman et al, (2007, p. 5) express, “a conceptual
scheme that separates the social responsibilities of a corporation from its business
47
responsibilities has long outlived its usefulness”. Instead, businesses should base all
their strategies and actions on their responsibility towards stakeholders and focus on
creating value for them (Madsen et al, 2010). Freeman proposes further that this
stakeholder approach requires four levels of commitment, where the first level
concerns having a basic value proposition (ibid. p. 6). A basic value proposition
consists of the core values of the company. The important issue here is for the
company to understand exactly which values the organisation is built on and how this
basic business proposition can be used to generate real value for both internal and
external stakeholders. In Freeman’s opinion, this basic value proposition is the
foundation for all other strategies and tactics and thus also the basis for all CSR
communication (Freeman et al, 2007).
In his article “An ethical framework for the marketing of corporate social
responsibility”, van de Ven (2008) also wrote about the values held by a company. He
identified a virtuous company through the implementation of a model of corporate
identity, where he employed the model of Balmer and Greyser, where a corporate
identity consists of five identity types: Actual, communicated, conceived, ideal and
desired identity. In van de Ven’s interpretations, company values are an important
part of a company’s actual identity. The actual identity is therefore built around all
current attributes of a company, here among “corporate ownership, the leadership
style of management, organisational structure, business activities and markets
covered, the range and quality of products and services offered, and overall business
performance” (van de Ven, 2008 p. 343). Thus, the actual identity of a company is
everything the company is and does, and hence the starting point of the analyses.
Consequently, it is important for a company to ensure that the identity derived
through communication is as close to the actual identity as possible, meaning that
48
communication needs to be built upon the actual identity in order to be authentic (de
Ven, 2008).
3.5.2. The Message
The message in a CSR initiative is what connects sender and receiver and where the
organisation truly implements its stakeholder information strategy (Morsing et al,
2006). This study however, is in agreement with Morsing & Schultz’s (2006)
recommendations, the goal for the organisation should be to deliver a coherent
message that is authentic and builds on all the right content and rhetorical appeals to
support an information strategy. What this message should consist of is what the sub
sections below will discuss.
Communication must be Authentic
This section discusses further the second of van de Ven’s identities which elaborates
on: The communicated identity. Thus it is crucial for an organisation to ensure that
any identity that shines through in communication efforts supports the core identity
and values of the company. Van de Ven elaborated on the notion of the
communicated identity by stating that it is “most clearly revealed through controllable
corporate communication” (van de Ven, p. 343). Thus, the job of the analyses will be
to look into the CSR communication efforts by AngloGold Ashanti and from this
derive the revealed identity.
The Importance of Message Content
Morsing et al (2006) emphasises the importance of content in their stakeholder
information strategy when arguing that companies must ensure messages inform
stakeholders about the “good intentions, decisions and actions” of the company
49
(Morsing et al, 2006. p. 327), as well as ensuring messages are being “conveyed in an
appealing way” (ibid). Du et al (2010) asserts that, four content recommendations
should be considered when communicating about a company’s involvement in a
social issue: Commitment, impact, motives and fit (pp. 10-13). The communication
initiative should focus on one or more of these factors.
When communicating commitment, the organisation must ‘walk the talk’. Thus they
need to show that they are indeed dedicated to the specific cause. This can be
accomplished through focusing on what the company has put into the specific cause
(money or other company resources), how long this commitment has taken place, and
how consistent the contributions have been (Du et al, 2010, p. 11). A focus on impact
means that the company needs to demonstrate how the organisational initiatives make
a real difference. This can be done by communicating the actual social benefits that
either have occurred or will occur (Du et al, 2010, as cited in Madsen et al, 2010).
When directing the attention to the organisational motives, the company should look
into the awards of the CSR initiative and select which benefits to communicate. The
awards are divided into extrinsic awards (the company is acting for selfish reasons)
and intrinsic awards (the company is acting out of genuine concern for the issue in
focus) (Du et al, 2010. P. 9, as cited in Madsen et al, 2010. A focus on fit means
elaborating on the fit between the social issue and the company’s business (Du et al,
2010. pp. 12-13). According to van de Ven, (2008) empirical research shows that a
high fit can be important in order to ensure positive consumer attitudes towards CSR
initiatives (p. 347, as cited in Madsen et al, 2010), thus, if a logic fit does not exist, the
company must reason its support in order to obtain a perceived fit (Du et al, 2010, p.
12).
The Importance of Rhetorical Appeals
50
The goal of CSR communication is to help establish a positive corporate image; as a
result it is crucial for companies to convince stakeholders that the company in focus is
indeed an ethical organisation that is worth supporting. Morsing & Shultz adds that
one of the most important factors in creating such positive stakeholder relations lies in
conveying messages in an appealing way (Morsing et al, 2006. p. 327). This is where
persuasive communication and rhetorical appeals come into play. The chosen focus in
the analyses is on Aristotle’s rhetorical appeals of ethos, pathos and logos in order to
determine if and how the appeals are used to back up the authenticity and quality of
the communicated content. The appeals can be used in different variations and to a
different extent, but in order to achieve a good argument they must harmonize and
work together (Dietsch, B.M. (2006).
The first rhetorical appeal is ethos; concerns how the credibility of the sender is
established by demonstrating intelligence (knowledge on the subject); virtue (beliefs,
values and priorities); and goodwill (concern and respect towards the audience) (Kies,
Daniel 2010, as cited in Madsen et al, 2010). If ethos is established, the audience is
more inclined to listen to the argument and consider the sender as being honest and
reliable. This is particularly important in the case of CSR communication, where any
indication of dishonesty and lack of credibility will harm the cause immensely
(Madsen et al, 2010).
The second rhetorical appeal is pathos in which the author plays on arousing
emotions in the audience in order to make them care about the issue in focus (Dietsch,
2006. pp. 240-243). When considering CSR communication, pathos can be useful. It
is a daily ingredient in any kind of CSR communication. However, it must be used in
small doses since otherwise the stakeholders may feel their personal boundaries have
been violated (Madsen et al, 2010).
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According to Dietch (2006), the last rhetorical appeal, logos, the author speaks to the
mind of the audience by applying different systems of conventional reasoning (like
evidence and examples) that the audience cannot logically dismiss. Madsen et al
(2010) adds that logos will also prove to be important in the context of CSR
communication as the organisations need to back up their arguments in order to
convince stakeholders that their CSR initiatives are legit.
3.5.3 The Channel
Communities are dynamic, and communication strategies need to be appropriate to
suit the diversity of the audience. One distinctive feature of CSR communication is
the fact that it usually has numerous possible audiences. Additionally, these varying
stakeholder groups might also vary concerning their expectations of businesses and in
information needs. Consequently, they may react differently to different
communication channels. Therefore, a company must customise its CSR
communication so it serves the special needs of various audiences (Du et al. 2010p:
15). The key to effective communication is to match the communication channel with
the goal of the message (Bauer et al, 2020).
Oral communication
Oral communication, on the other hand, makes more sense when the sender is
conveying a sensitive or emotional message, needs feedback immediately, and does
not need a permanent record of the conversation. Like face-to-face and telephone
conversations, videoconferencing durbars, public awareness programmes has high
52
information richness, because receivers and senders can see or hear beyond just the
words that are used—they can see the sender’s body language or hear the tone of their
voice (Bauer et al, 2010). Most companies in Ghana based in the rural communities
employ durbars as a means of communicating their CSR initiatives to their respective
catchment areas. This offers an opportunity for both company and traditional
authorities to discuss community related problems and find lasting solutions.
The Website
When reviewing the CSR communication literature, it becomes obvious that the
popularity of the website in CSR communication has grown due to several of the
qualities this channel offers. Ziek (2009) further argues that, not only does the
webpage allow organisations to target several stakeholders in one medium: “More
specifically webpages offer corporations an opportunity to participate in ‘setting the
agenda’ on public policy issues” (p. 140). Thus, using the website as a channel allows
organisations to communicate their own values through CSR communication and at
the same time offers a distinct opportunity for organisations to respond to the
demands of several stakeholders.
According to Madsen et al (2010), to gain from the qualities of the website in the aim
of successful CSR communication, these qualities must not only be managed
strategically, but further integrated tactically by organizations. With respect to this
Coope (2004) suggests a best practice checklist for online CSR communication based
on his 2004 CSR online survey (p. 20-25). What Coope stresses on in his work is that
most organizations that seem to be successful in carrying out CSR lack the tactics
necessary to successfully communicate about their efforts online. His best practice
checklist is developed to aid this lack by offering five guidelines of publishing CSR
53
content on the web (ibid.). Coope’s suggests that websites should be accessible and
usable, content should be available in different formats, the design should be dynamic
and interactive, the CSR section should be prominent and well promoted, and lastly it
should have a consistent content and an engaging design. For the purpose of this study
his checklist will then serve as a tool for analyzing organizations’ exploitation of the
website as a CSR communication channel. This will help to conclude on the
effectiveness of organizations’ use of the website as a channel.
As argued earlier in this study, involvement of stakeholders is a crucial part of
effective planned CSR communication. Thus, in order to fully take advantage of these
channels for CSR communication and to build upon its qualities, communication
tactics must take their outset in what Morsing and Schultz refer to as the stakeholder
involvement strategy (Morsing et al, 2006, p. 328).
This strategy stresses that
communication between an organisation and its stakeholders should be carried out as
a dialogue. Thus, it argues that organisations through frequent engagement in
dialogue with relevant stakeholders seek to be influenced by them, while at the same
time influencing them as well (Morsing and Schultz, op.cit. p. 328). On a tactical
level, Morsing and Schultz suggest that this strategy demands that managers ensure
the establishment of an on-going and systematic interaction with multiple
stakeholders (ibid. p. 328). According to Tehemar (2012), a successful and holistic
CSR communication plan should make use of as many channels as possible to
enhance the reach of its message. He adds that, whether it is through representation on
external committees or through a carefully planned social media presence, utilization
of multiple channels to position the organisation’s CSR message is crucial for the
success of its CSR initiatives.
54
3.5.4 The Receiver/Audience
According to Windahl, Signitzer and Olsen (2004), one of the most important
ingredients in effective communication is knowing your audience. Bauer et al (2010)
add that organisations should realise that the type of audience dictates the direction
the communication model takes. The audience/ stakeholder for every organisation are
unique and represent their own unique issues and concerns. A mining company for
example will have to worry about the communities being uprooted as a result of the
discovery of a particular mineral whereas a hospital has to worry about the patients
and the communities surrounding the hospital. The trick is to have a hand on pulse of
the stakeholder through an effective engagement mechanism and to feed the findings
of the engagement into the structure of the CSR communication model.
This view is elaborated by Sweeney and Coughlan (2008), who argue that the
organisation’s communication should try to appeal to as many different stakeholders
as possible given the industry in which it operates. Sweeney and Coughlan’s notion
serves to support Freeman’s stakeholder approach to CSR communication, in which it
is crucial for the success of such communication that value is created for key
stakeholders (Freeman, 2007, p. 5). Freeman’s third level of commitment to the
approach implies that the organisation gain an understanding of broader societal
issues and take stands on these issues – even if they are not purely business related
(ibid, p. 6). Thus, following Sweeney and Coughlan, and Freeman, it can be argued
that in considering and giving way for the values and needs of stakeholders, the
organisation can create value for these key people, thus supporting the strategy of
involvement vital to CSR communication.
On a tactical level, Sweeney suggests a scheme of stakeholder groups of primary and
secondary focus to different industries (Sweeney and Coughlan, 2008, p. 118, as cited
55
in Madsen et al, 2010). In the aim of this framework and the analyses of this study,
will operate as a tool for pinpointing the key stakeholder groups of organisations and
thus further investigate whether the values and needs of these groups are in fact
supported in the CSR communication of the organisation. In other words, it will allow
the report to investigate whether the organisation take the values of their stakeholders
into account.
3.5.5 Feedback & Field of Experience
Schramm (1954) introduced the study of human behaviour in the communication
process. His interactive model which was developed based on Shannon & Weavers
transmission model proposed for the inclusion of feedback and field of experience to
the existing components proposed by Shannon & Weaver (source, encoder, message,
channel, decorder and receiver). According to Schramm (1954), the feedback is the
information that comes back from the receiver to the sender whiles the field of
experience refers to an individual’s beliefs, values, experiences and learned meanings
both as an individual or part of a group.
Madsen et al (2010) asserts that, the broader national culture, in which an
organisation’s CSR communication takes place, widely determines the values shared
by stakeholders. Therefore, an understanding of the national culture and subsequent
representation of this in communication will help the organisation create the value for
stakeholders that is essential to the involvement strategy.
Kampf (2007) argued in for a shift in understanding CSR from a normative to a
situated perspective (p. 41, as cited in Madsen et al, 2010). She proposes a cultural
systems model as a way of framing this new understanding of CSR to better
understand the origins of, expectations for, and manifestations of CSR in a given
56
cultural context. Inherent in this model is the belief that an organisation is a
consequence of the social forces of the culture in which it operates, while still being
an active player in shaping this culture – just as its stakeholders (Kampf, 2007, p. 44,
as cited in Madsen et al, 2010)
Following this new approach to CSR, it becomes evident that the culture in which an
organisation operates should be integrated in all aspects of that organisation –
including its CSR communication as the interactive model suggests, effective
communication relies a great deal on the skills of the message sender and the ability
of the receiver to interpret what is being communicated. According to Piätilä, as
referred to by Windahl et al. (2004), “a communication effect has occurred if, as a
consequence of a communication process, there is/is not in the individual mind
something that would not be/would be there without it”. Thus, efforts to analyse the
effect of communication deal with the perception of the individual. Webb (2010)
asserts that, these aspects of communication epitomize the interpersonal skills of a
good communicator. The skilled communicator has information-presenting abilities
and good listening skills. In addition, a skilled communicator is aware of and makes
allowances for barriers to communication such as cultural differences, the emotional
and cognitive states of others and external distractions.
The importance of evaluating communication efforts, as also argued by Morsing and
Schultz when they talk about the communication departments task relating to their
stakeholder response strategy (2006, p. 327) is crucial in this study. According to
Madsen et al (2010), the opportunity for such evaluation is greatly enhanced by
providing openings for feedback on organisations CSR communication efforts, such
as opinion polls and market surveys. They add that, by enhancing the dialogue
between the organisation and its stakeholders, as commented on previously, the
57
effects of organisational communication become available for measurement and
evaluation that can support the on - going change needed for the organisation to adapt
to its environment.
CHAPTER FOUR
RESEARCH METHODOLOGY
4.0 Introduction
This chapter presents the methodology used in this study. The chapter has been
divided into six sub-sections, namely research design, scope of the study, population
58
sample, sampling techniques, instrumentation, data collection procedures and data
handling and analysis. The selection and implications of the research methods are
explained together with justifications of the choices made.
4.1 Research Design
The research design was a single case study, which is a qualitative research technique
(descriptive approach). The aim of a case study is usually to “generate an intensive
examination of a single case”, and then “engage in a theoretical analysis” in relation
to this (Bryman 2004, p.52). Thus, in this case study the two main actors are: the
people of Obuasi and AngloGold Ashanti Limited. Yin (1994), defines a case study as
“an empirical enquiry that investigates a contemporary phenomenon within its real
life context, when the boundaries between phenomenon and context are not clearly
evident, and in which multiple sources of evidence are used. He goes on to suggest
that a case study design should be considered when: (a) the focus of the study is to
answer “how” and “why” questions; (b) you cannot manipulate the behaviour of those
involved in the study; (c) you want to cover contextual conditions because you
believe they are relevant to the phenomenon under study; or (d) the boundaries are not
clear between the phenomenon and context (Yin, 2003).
This case study (AngloGold Ashanti and its communities) aims to understand the
issues with regards to the communication of CSR to its stakeholders. The study thus
delves into lived experiences of the respondents with regards to CSR communication.
4.2 Scope of the Study
The research was conducted in the confines of AngloGold Ashanti Ltd (AGA) in
Obuasi, a mining community in the Ashanti Region. AGA has two main offices in
Accra and Obuasi. For the purpose of this study the Obuasi office was chosen due to
the fact that it is situated in the mining community.
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The scope of the study was limited to the Community Relations, Finance and Human
Resources Departments. Due to geographical consideration and the need to
experience AngloGold’s CSR activities, the researcher spent a week at the mine. This
actually made it easy to interview the chosen respondents.
4.3 Population and Sampling
Currently, Ghana has nine large-scale mining companies producing gold, diamonds,
bauxite and manganese (Ghana Chamber of Mines, 2012). The Ghana Chamber of
Mines (GCM) estimates that there are also over 200 hundred registered small scale
mining groups and 90 mine support service companies. Ghana’s mining sector is
dominated and controlled by foreign companies, with the Government of Ghana
(GoG) having not more than 10% ownership in most cases (GCM, ibid). A total of
212 mining companies have been awarded mining leases and exploration rights as at
the start of 2008 (Minerals Commission, 2008). The GCM reports that there are eight
(8) registered multi-national mining companies that are engaged in commercial
mining in Ghana. These are: Goldfields Ghana Limited, Golden Star Resources
(Prestea/Bogoso) mine, Golden Star Resources (Akyempim) mine, Newmont Ghana
Gold Limited (Ahafo/Akyem), AngloGold Ashanti Obuasi mine, AngloGold Ashanti
Iduapriem Limited, Chirano Gold Mines, Ghana Bauxite Company Limited and
Ghana Manganese Company Ltd. This study focused on these multi-national mining
companies which are limited by liability and not on small scale mining companies.
Lincoln & Guba (1985) cited in Baxter & Jack (2008) emphasise that the guiding
principle of sampling in qualitative research is one of convenience. They argue that
another important consideration in sampling is whether there are people available who
will allow the researcher to collect data about them.
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Purposive sampling technique is most effective when one needs to study a certain
cultural domain with knowledgeable people within that domain (Tongco Delores,
2007). For this reason a purposive sampling procedure was used to select a total of
twelve respondents.
The twelve respondents (three AGA managers, a Principal
Superintendent and six opinion leaders) were purposively selected because in the
judgment of the researcher the twelve possess the characteristics and capacity to
respond to most of the research questions posed. A purposive sample is a nonrepresentative subset of some larger population, and is constructed to serve a very
specific need or purpose (Gayu, 2011). Sekaran (2002) defines purposive sampling as
“specific types of people who can provide the desired information, either because they
are the only ones who have it or conform to some criteria set by the researcher” (p.
277). This suggests that purposive sampling is criterion-based. The criterion for this
study’s sample was based on the fact that all the respondents were leaders and experts
in their respective fields/area and as such privy to all discussions on CSR activities.
Preferences were not given to any particular gender. The views of these respondents,
however, would represent the kind of AngloGold Ashanti communication they carry
in their community or environment in which they operate.
4.4 Data Collection Instrument
Denscombe (2000) asserts that the main data collection methods are interviews,
questionnaires, observations and written sources. All these methods can either be used
separately or together, although it is recommended to use more than one method in
order to gain a better understanding of the research area. Denscombe further argues
that researchers can employ several data collection methods and thereby triangulate
the subject in order to find the “truth”.
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This study made use of document and textual analysis, observation and interviews.
The researcher employed an in-depth semi structured interview for data collection as
it allows the collection of people’s views and opinions. It also allows spontaneity in
the interviewer’s questioning and interviewee’s response (Moore, 2000). The sample
was divided into two groups namely, AGA staff and heads of AGA sectoredcommunities. Two different sets of interview guides were thus designed to suit each
group. The interview guide was made up of open-ended questions.
In line with Malhotra & Birk’s (2007) and Miles & Huberman’s (1994), the language
used in the interview guide was kept as simple as possible. The researcher used
written interview guide to collect data from workers of the company because it is
comparatively less expensive as compared to the use of questionnaires, as well as in
terms of time spent in collecting the data.
4.5 Data Collection Procedure
The data collection started from AGA’s office in Obuasi (a mining town in the
Ashanti Region of Ghana). That location was chosen because that was where all the
AGA respondents resided. The researcher spent a week at Obuasi for the field work.
Appointments were booked in advance for all the interviews with the exception of the
interviews with the heads of the sectored communities which could only be arranged
after the researcher had reported at Obuasi. The heads of the sectored communities
were informed about the interview when they attended a community durbar organised
by AGA. The durbar was held to inform the communities about a trust fund which
had been proposed by AGA to further sustainable development projects. The
researcher had the opportunity to observe how AGA goes about organising a durbar
and how the communication is done. The interviews were all conducted in accordance
with the agreed time for each of the respondents after the durbar had ended.
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Documents belonging to AGA were retrieved online and carefully studied. The
advantage of using document analysis for this study is that raw data retrieved from
these sources are available for independent inspection (Baxter & Jack, 2008).
According to Creswel, (2003), analysing documents improves the validity of the case
study as it enables the researcher to track and organise data sources. In this particular
study therefore, the document analysis also corroborated Mensah’s (2009) work
which employed similar methods. The study also employed observation as a data
collection procedure. Observation has been recognised as a valuable data collection
method in a case study setting as revealed by (Tovienyeku, 2007; Gillham, 2000;
Jankowicz, 2000; Powell, 1997, Saunders et al, 2000; Yin, 1994) and it complements
interviews as a valuable source of additional data. Such observation can take place in
both an informal basis (such as during a tour of the business premises of the case
study organisation) as well as on a formal basis (such as during a meeting at which the
researcher is invited to attend without active participation). Thus the study
observation method was chosen to add depth and variety to the data collected. The
researcher’s visit to Obuasi and its environs allowed an observation of one of AGA’s
community durbars. This afforded the researcher the opportunity to observe AGA’s
communication process during a community durbar.
4.6 Validity and Reliability of the Study
There is the need for every researcher to ensure that his/her study is of quality. It is
therefore important to consider the reliability and validity of a research. Thurén
(2004) notes that; reliability refers to the fact that measurements are conducted
correctly. Joppe (2000: p.1) states that, reliability is “the extent to which results are
consistent over time and an accurate representation of the total population under
study.” The criterion for reliability therefore is based on the neutrality of the research
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instruments which should be able to derive similar results independent of the specific
case. This also suggests that reliability simply concerns how reliable and accurate the
methods and techniques for collecting data for a study are. Reliability and validity go
hand in hand, and as such, if a method is not reliable, there is a probability that it
would lack validity. Irrespective of this a high reliability outcome does not always
mean there would be a high validity. The results may vary, thus a study’s reliability
could be high but its validity low. Yin (2004) asserts that it is possible to use a method
that would provide the researcher with the exact results under different occasions
without actually measuring what was intended to measure.
For the purpose of this study samples were drawn from the three different populations
(that is AGA staff, sectored mining communities under AGA and the two regulatory
institutions for the mining sector). The sampling technique for selecting all the
respondents were based on the criterion that each respondent must be a head of a unit
and as such is part of decision making and has first-hand information on CSR
activities of AGA. The interview guide differed in accordance with the particular
population group. Interviews were recorded with a tape recorder and transcribed,
except that of two respondents who did not wish to be recorded. The tape recorder
allows others to review the interview responses (which are simply to say that the data
collected could be double-checked for accuracy) and this was effectively done to
ensure accuracy. The interviews were conducted in English for all respondents except
the heads of the sectored mining communities. Theirs were conducted in both English
and Twi (a local dialect in Ghana).
According to Denscombe (2000), validity means that the data and methods are
“correct.” Denscombe further adds that validity refers to whether the data reflect the
truth and reality and covers the definitive questions. Creswell (1998, p. 204-207)
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argues that, validity strives to answer the question “how do we know that the
qualitative study is believable, accurate and right?” In an attempt to answer this
question, Creswell (1998) provided a list of eight verification procedures that
researchers can use to validate their qualitative study. These procedures are:
prolonged engagement and persistent observation; triangulation; peer review and
debriefing; negative case analysis; clarification of research bias (reflexivity); memberchecking; rich, thick description; and external audits. Yin (2004) on his part indicates
that the meaning of validity is whether a researcher’s methods, approaches and
techniques actually measure and relate to the problem that needs to be explored. Yin
(2004) further proposes three forms of validity, namely construct validity, internal
validity and external validity. This study employed both construct validity and
external validity. Construct validity considers whether or not the operational variables
used to observe co-variation can be interpreted in terms of theoretical constructs
whiles external validity examines whether or not an observed causal relationship
should be generalised to and across different measures, persons, settings and times
(Calder, Phillips & Tybout; 2001).
According to Yin (2009) three tactics increase construct validity when doing case
studies:
“The first is the use of multiple sources of evidence … second tactic is to establish a
chain of evidence … third tactic is to have the draft case study report reviewed by key
informants.”
The researcher used the multiple sources of evidence for this study. The analysis was
based on semi-structured interviews, field observations, and secondary sources in the
form of reports. This ensured that there had been a triangulation.
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For the purpose of external validity the findings of this study would not be
generalisable beyond the case study in question. As with experiments, case studies
can make analytical generalisation (Yin, 2009). However, in order for the findings of
the study to apply to more than AGA, it would have to be tested on other large mining
companies. AGA was chosen due to its operational size, style and the number of
communities within their catchment area. Other mining companies may not have the
same approach towards CSR as AGA and therefore the findings are most likely not
applicable beyond AGA. The findings however, may be of interest to studies on
sustainable development as communication is a key component of sustainable
development.
4.7 Mode of Analysis
There are numerous methods or approaches to analysing data. Yin (2003) notes that; a
researcher has the option to choose from two general strategies when analyzing data.
The researcher could either rely on theoretical propositions or develop a case
description. Theoretical propositions are usually employed when there is substantial
amount of previous research in a particular area of study. Developing a case
description is suitable when limited research has been conducted within the subject.
This thesis is based on theoretical propositions as it is based on previous research in
the CSR field.
Miles & Huberman (1998) state that data analysis consists of three stages, these are:
data reduction, data display, and conclusion drawing and verification. Data reduction
is used to sharpen, sort, focus, discard and organise the data in order to reach
conclusions and to verify them. Data display simply refers to reducing data and
organising it in a foreseeable manner in order to draw conclusions. Conclusion
drawing and verification refers to the researcher’s decisions of what the reduced data
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means. Thus the researcher investigates regularities, patterns, explanations, possible
configurations, causal flows and propositions (Miles et al, 1998).
For the purpose of this study every judgment made has followed some sort of criteria
which consist of the standard practice in justification of research results. The raw data
gathered from respondents were processed and analysed. The data was put in themes
in order to extract the meanings inherent in respondents’ responses. The objectives of
the research were the basis of the themes. The transcribed interviews were read and
re-read to ensure that all the salient issues as per the research objectives were brought
to the fore. This shows an observance to Miles & Huberman’s proposed data analysis
procedure.
CHAPTER FIVE
THE FINDINGS AND DISCUSSIONS OF DATA
5.0 Introduction
This chapter examines and analyses the data gathered from the field. The study was
carried out at AngloGold Ashanti Ghana Ltd and the Obuasi environs in the Ashanti
Region. It sought to assess AngloGold’s CSR communication through Schramm’s
Interactive Communication Model. The data was collected primarily through
interviews. Staffs of AGA and opinion leaders from the community were interviewed
67
and their view on AGA’s CSR communication process sought. The chapter deals with
analysis of respondents’ responses to interviews and analysis of documents from
AGA on how they engage with the local communities and communicate CSR and a
discussion of the findings in relation to the research questions stated earlier in chapter
one of the study. The three research questions were:
1.
How does AngloGold Ashanti interprete Corporate Social Responsibility?
2.
Which communication strategy is employed by AngloGold Ashanti in
communicating CSR?
3.
How does the CSR communication process at AngloGold Ashanti fit into
Schramm’s Interactive Communication Model?
The study achieved a 100% response rate. According to Armstrong and Ashworth
(2000), texts on survey methods have usually advised that response rates of 60% and
over are necessary to ensure that the response of those responding will give an
accurate picture of the population from which they are drawn. The response rate can
be attributed to the fact that the interviews were strictly carried out with frequent
checks on the respondents understanding of the questions that were asked. It can also
be attributed to the manner in which the interview guide was designed and structured.
RQ1. How does AngloGold Ashanti interprete Corporate Social Responsibility?
5.1 AGA’s Interpretation of CSR
According to Maignan et al. (2005) a firm’s definition of CSR should clarify (1) The
motivation underpinning the firm’s commitment to CSR and (2) The stakeholders and
issues that are perceived as priority by the organization. They argue that, given the
68
fact that a firm’s definition of CSR is an integral part of organizational values and
norms, a firm’s definition of CSR can be discovered through content analysis of
corporate documents and the mission and vision statements of the focal organization.
In relation to Anglogold Ashanti’s motivation for engaging in CSR evidence from the
interviews with representatives of the firm indicate that Anglogold Ashanti is
motivated by the need to “give back” to communities and the need to maintain the
reputation of the firm in connection with it values. According to a representative of
the firm;
The company being in an area that it operates depletes the land has
the obligation to give back to the community. Being Mining
Company, we are impacting on the environment. The communities
are deprived of the land for farming. So in a way of giving back to
the society and in order not to deprive them from their lands, the
company tries to give them alternative livelihood activities, more
or less, keeping some of the possession for their farming, putting
up schools, constructing roads, bridges, and providing good
drinking water among others.
Mr. John Owusu, communications manager, indicated that, Anglogold Ashanti uses
its CSR activities as a means to build and maintain the company’s image and this
ensures that the actual identity of the company is maintained and adhered to. Indeed
the 2012 sustainability report indicates that the Anglogold Ashanti considers an
effectively executed CSR as a basis for competitive advantage.
In relation to the stakeholders and issues that are perceived as priority by the
organization, it can be said that Anglogold Ashanti, consider safety, dignity and
respect, diversity, accountability, stakeholder engagement
and sustainable
development as well respect for the environment as priority issues in relation to CSR.
According to the 2012 sustainability report published by Ashanti Gold, the mission of
the company is;
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To create value for our shareholders, our employees and
our business and social partners through safely and
responsibly exploring, mining and marketing our products.
Our primary focus is gold and we will pursue value
creating opportunities in other minerals where we can
leverage our existing assets, skills and experience to
enhance the delivery of value
The report also highlights 6 values that the company abides by include;
Safety: putting the highest priority on safe and healthy practices and systems of work
and as such seeking out new and innovative ways to ensure that workplaces are free
of occupational injury and illness.
Dignity and respect: seeking to preserve people’s dignity, their sense of self-worth in
all interactions, respecting individuals for who they are and valuing the unique
contribution that they can make to business success. Additionally, dealing ethically
with all business and social partners.
Diversity: promoting inclusion and team work, deriving benefit from the rich
diversity of the cultures, ideas, experiences and skills that each employee brings to the
business.
Accountability: focusing on delivering results, accepting responsibility and
accountability in respect of the company’s work, behaviour, ethics and actions.
Aiming to deliver high performance outcomes and undertake to deliver on
commitments to colleagues, business and social partners, and investors.
Stakeholder engagement and sustainable development: upholding and promoting
fundamental human rights and contributing to building productive, respectful and
mutually beneficial partnerships in communities of operation with the aim to leaving
host communities with a sustainable future.
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Respect for the environment: commitment to continually improving processes in
order to prevent pollution, minimize waste, increase carbon efficiency and make
efficient use of natural resources. Additionally, to develop innovative solutions to
mitigate environmental and climate risks.
In summary, going by Maignan et al. (2005)’s suggestion on exploring a company’s
meaning or interpretation of CSR it can be said that AngloGold Ashanti’s
interpretation of CSR includes issues related to safety, dignity and respect, diversity,
accountability, stakeholder engagement and sustainable development that is directed
towards shareholders, employees, business and social partners and is motivated by the
need to give back to society, maintain and enhance reputation, derive competitive
advantage whiles building a long term relationship with stakeholders. This CSR
interpretation by AGA also goes in line with the stakeholder theory by Freeman
(2009). The theory suggests that the purpose of business is to create as much value as
possible for stakeholders.
RQ2. Which communication strategy is employed by AngloGold Ashanti in
communicating CSR?
5.2 AGA’s CSR Communication Strategy
Morsing and Schultz (2006) succeeded in taking an extrinsic perspective and
demonstrated the importance in combining sensemaking to the external stakeholders
in their work. In their work they combined stakeholder and sensemaking theories, and
they argued that focus has changed from companies managing their stakeholders to
companies engaging in dialogue with their stakeholders so to build long-term
relationships. Morsing & Schultz (2006) outlined 3 CSR communication strategies;
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the information strategy, the response strategy and the involvement strategy in their
study.
Information
Strategy
Communication
ideal (Grunig &
Hunt, 1984)
Communication
ideal: sensemaking
and sensegiving
Response Strategy
Two-way
asymmetric
communication
Public information,
one-way
communication
sensemaking
↓
sensegiving
sensegiving
Stakeholders:
must be reassured
that the company is
ethical and socially
responsible
request more
information on
corporate CSR
efforts
Involvement
Strategy
Two-way
symmetric
communication
sensemaking
sensegiving –
in iterative
progressive
processes
co-construct
corporate CSR
efforts
Stakeholder role:
respond to
corporate actions
support or oppose
Identification of
CSR focus:
decided by top
management.
Investigated in
feedback via
opinion polls,
dialogue, networks
and partnerships
decided by top
management
Strategic
communication
task:
Corporate
communication department’s task
demonstrate to
stakeholders how
the company
integrates their
concerns
inform
stakeholders about
favorable corporate
CSR decisions and
actions
identify relevant
stakeholders
design appealing
concept message
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involved,
participate and
suggest corporate
actions
negotiated
concurrently in
interaction with
stakeholders
invite and establish
frequent,
systematic and proactive dialogue
with stakeholders,
opinion makers,
corporate critics,
the media etc.
Third-party
endorsement of
CSR initiatives
integrated element
of surveys,
rankings and
opinion polls
unnecessary
build relationships
stakeholders are
themselves
involved in
corporate CSR
mes- sages
Adapted from Morsing & Schultz 2006, p.326
In relations to AGA’s CSR communication strategy data gathered from the field
showed that AGA is actively reorganizing some of its CSR programmes to sure
maximum participation of their stakeholders. In 2012, the company introduced a trust
fund for it sustainability projects. They allowed the various sectors in their catchment
area to elect their people as representatives on the board of trustees for the trust fund.
Mr. Owusu (Dir. Communications, AGA) explained that this is another initiative that
mainly seeks to ensure the community’s active participation in CSR decision making.
A paragraph under their sustainability report on their website stresses on the fact that
their interventions are largely intended to be long term and sustainable, and
undertaken in partnership with local communities, government and NGO’s. This they
explained was to ensure the greatest possible impact, longevity and support. This
statement by AGA shows their involvement of their catchment community’s.
According to David Noko (AGA’s Exec. Vice President: Sustainable Development)
Sustainability is a continuously evolving discipline and to that end it requires that
there is a common understanding in the organisation about the subject matter of
sustainability. As a result AGA largely relies on their stakeholder engagement to
ensure that community development projects are well agreed on by the company and
the stakeholders. A statement by one of the community respondents showed that
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previously AGA did not consult or involve the community in CSR decision making.
The respondent stated that:
Previously AGA used to consult only a few people on
what they should do for us. But now their officers come
to interact with us with respect to what we think we need
most as a community. And with our people on the
development fund board it is going to be much better.
AGA’s strategy allows for the stakeholders and the company to influence each other
through dialogue as emphasised by Morsing & Shultz (2006) as an important feature
of the involvement strategy. Thus the stakeholders are not just the receivers in the
communication process but are proactively involved in it, which enables AGA, to
understand and live up to the stakeholders’ changing expectations. Furthermore, parts
of AGA’s sustainability report shows that the company is placing increased focus on
developing projects in partnership with communities and governments, with the aim
of undertaking community investment in a more consistent and co-ordinated way that
would enable communities within and around their operations to reach their
development goals. This approach they understand requires the company to engage
with their employees, host communities, governments at all levels, NGOs, other
mining companies, suppliers and others to identify and co- design approaches to
deliver on shared goals. To succeed, they agree on building relationships based on
trust and sustained benefits. Progress in delivering on objectives will be measured by
performance indicators that have been agreed upon by all parties involved.
In sum, AGA’s communication strategy show’s an adherence to Morsing & Shultz’s
stakeholder involvement strategy as it creates opportunities for dialogue, participation
and involvement. This also goes to counter Mensah’s (2009) study which concluded
that AGA does not involve their stakeholders in their CSR decision making. This
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clearly shows that AGA’s CSR communication strategy has improved over the years
to include a true stakeholder involvement approach.
RQ. 3 How does the CSR communication process at AngloGold Ashanti fit into
Schramm’s Interactive Communication Model?
5. 3 Sender
As discussed in chapter 3.4.1, a company’s identity must be consistent with its core
values and adhered to in order to enable CSR communication to be of a credible
standard. CSR communications ideally should be based on the overall operational
strategies of the company with respect to its corporate identity (Madsen et al, 2010).
As a result the analyses of AngloGold’s CSR communication first starts at how they
describe themselves as a company and which attributes and values the company is
built upon. The next paragraph gives a brief profile of AngloGold Ashanti.
AngloGold Ashanti formerly known as Ashanti Goldfields Corporation (AGC) has
passed through many phases since its creation in 1897. It was founded by three Cape
Coasters – Joseph Biney, Joseph Brown and Joseph Ellis Officially incorporated and
listed on the London Stock Exchange in 1897 by Edwin Arthur Cade (IAS, 2012). In
1969, the ownership structure changed with Ghana Government acquiring a stake in
the company for the first time in the history of the Company. Government had a 20%
stake in the company. Later Ghana Government together with Lonrho agreed to
increase Ghana Government shares from 20% to 55% (IAS, 2012).
5. 3. 1 The Actual Identity – AngloGold’s Way of Management
AngloGold is a large mining company working in many different cultures. The
company has 21 operations on four continents and employs 65,822 people, including
contractors. The company produced 3.94Moz of gold in 2012. According to the
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Director for communications, AGA has adopted the systems approach to management
and this approach is basically to balance corporate control and decentralise decisionmaking. AGA systems approach presents a core framework of factors such as visions,
values, commitments and policies that all strategies and actions should adhere to.
With the idea of the systems approach, the company then automatically draws its CSR
communication initiatives from its main management strategy. Thus, AGA’s Way of
Management is also what the company’s CSR communication initiatives should be
built upon. For the purpose of this study only the values and commitments of AGA
would be featured further on in this analysis and as such only these two have been
introduced in this segment. That is because the values and commitments of AGA
largely contribute to the actual identity of the company.
5. 3. 2. The values
AGA’s values have an important position in the visions of the company. It is
established from the theoretical framework (chapter 3.4.1) that the corporate values of
the company should be expressed in all strategies and tactics of the company,
including their CSR communication.
AngloGold’s values are:

Safety

Dignity and respect

Diversity

Accountability
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
Stakeholder engagement

Respect for the environment
5. 3. 3 The commitments
A look at AGA’s corporate profile shows that the company wishes to operate in a way
that is financially, environmentally and socially responsible. Thus the company
through its values and commitments shows signs of adherence to the Triple Bottom
Line (TBL) approach. In an interview with the Financial Manager AGA’s operations
depletes the land and deprives the community of their lands. As a result the company
tries to resettle the affected communities and provide them with an alternative
livelihood.
In other words the company basically seeks to balance its short- term profitability
with longer-term societal interests. Consequently the TBL approach together with the
systems approach must therefore guide the strategies and tactics adopted by AGA and
even their CSR communication must all be in sync with these approaches. AGA,
according to Mr. John Owusu, uses its CSR activities as a means to build and
maintain the company’s image and this ensures that the actual identity of the company
is maintained and adhered to.
5. 3. 4 The basic value proposition
Building on Freeman & Velamuri’s (2007) concept of the basic value proposition (it
consists of the core values of the organisation), it is essential that the core values of
AGA are also used to generate real value for both internal and external stakeholders.
As part of its commitment to its internal stakeholders AGA has structured its business
policies around its corporate values, thus ensuring that their employees enjoy a better
working environment (http:/www.anglogold.com/Sustainability). These selected
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values for AGA presents the company as a virtuous one to its external stakeholders.
This collection of values also presents AGA as a leading company in the mining
sector whose desire is to mine gold but at the same time improve on the life of its
stakeholders by appreciating their inputs and working hand in hand with them
(stakeholders). Subsequently, real value is created through every tactic that supports
this virtuous value proposition. How AGA builds its CSR communication around its
corporate values is explored much more in the following sections.
5. 4 Message
As indicated by Morsing & Schultz (2006) and Van de Ven (2008), communication
should be coherent and the communicated identity should be based on the actual
identity of the company. Similarly it was expected that AGA’s communicated identity
would be based on its actual identity. At the same time, AGA must ensure that
communication is delivered in a professional and appealing manner in order for
initiatives to be effective. This section analyses AGA’s CSR communication with
respect to whether it focuses on authenticity, content and rhetorical appeals as
espoused by Morsing & Shultz (2006).
5. 4. 1 Authenticity in AGA’s CSR Communication
AGA has a responsibility to ensure that its CSR communication is authentic. Thus the
company’s communicated identity revealed in their CSR communication must be
coherent with their actual identity. With this in mind the company has taken a position
of ensuring that all communication with respect to their community development
projects are not just window dressing but action oriented. They also try to ensure that
they only communicate what has been achieved and are clear on what is yet to be
achieved. AGA’s communication on community development as revealed on their
website tries to live up to this expectation. However, at the interpersonal
78
communication level there were some instances that some projects agreed on by AGA
and the obuasi community as important was delayed without any explanation to the
community. This according to the respondents from the community made them doubt
the authenticity of AGA’s CSR communication on those particular projects.
5. 4. 2 Integration of CSR
As a result of AGA’s adherence to the Triple Bottom Line rule its CSR is presented as
an integral part of the company’s business strategy. This is also clearly indicated by
the company’s website design where the sustainability section has the same layout
and positioning as other essential strategies (http:/www.anglogold.com/Sustainability.
The Director for Communications for example notes that AGA has a policy on CSR:
The company has non-mining reports which document
annually all the CSR programmes and policy.
According to him, CSR is just one of the sustainability
programmes. In other words, CSR is a subset of
sustainability Projects and this is what we use as
guidance in our operations in Ghana.
The AGA website further provides an integrated report where financial, social and
Environmental results are presented equally (http:/www.anglogold.com/Sustainability
As noted by Madsen et al (2010), aside communicating the commitment to the Triple
Bottom Line, these integration initiatives clearly express a value of accountability in
the performance measures and a value of responsibility through the mere existence of
a report and the promotion of it throughout the website.
5. 4. 3 Changing lives
For AGA, sustainability is important because the organisation believes that the
wellbeing of society and the world is critical for business to thrive and create value.
Thus the company is committed to fulfilling its obligations and duties as a responsible
79
corporate citizen, ensuring that its behaviour reflects its values and concern for its
stakeholders, including shareholders, employees, their families and the communities
and
environments
in
which
they
live
and
reports.com/12/os/approach/stakeholder-engagement).
work
Mr.
in
(http://www.agaOwusu
(Dir.
Communications, AGA) stressed in his response that the company’s desire is to see
the lives of the people in the community greatly improved in comparison to the period
when the organisation first started operations. For instance he mentioned that in their
resettlement projects they migrate the communities from mud houses without
electricity and good drinking water to modern houses with all the necessary facilities
that are of importance to the people. In an interview, the Human Resource Manager
(AGA) also stated that AGA’s CSR is creates humane environment for the business
and the people within the communities. “When we do this, they feel they are part of
the company and they also become watchdogs for the business,” he noted.
In 2012, the company introduced a trust fund for it sustainability projects. They
allowed the various sectors in their catchment area to elect their people as
representatives on the board of trustees for the trust fund. This was explained in an
interview with Mr. Owusu (Dir. Communications, AGA) as another initiative to
show how the organisation takes its value of responsibility seriously by using their
position as an industry leader to make a difference for their catchment communities.
5.4. 4 Content and Appeals in AGA’s CSR Communication
Morsing & Shultz (2006) indicates that one of the most important factors in creating
positive stakeholder relations lies in conveying messages in an appealing way. Thus
in addition to being authentic, AGA should also be aware of using the right
argumentation and the right rhetorical appeals. According to Du et. al (2010), AGA
should include in their communication proof of commitment, impact, motives and fit;
80
while Aristotle’s appeals of ethos, pathos and logos should be used to support the
arguments. The findings of this study showed the use of this technique (espoused by
Du et al, 2010) in AGA’s CSR communication. For example, AGA clearly shows this
technique in their online communications. The first three paragraphs of AGA’s
sustainability write up on their website expresses commitment impact and fit. AGA
shows a fit between business development and societal development as well as their
commitment to community development by indicating in their 2012 sustainable report
that they had spent a total of $24.91m on community investment. Finally AGA has
listed on their website the various projects they had undertaken to improve on the
lives of their communities. This shows the impact they have had on their stakeholders
and the improvements they have brought to the communities. A paragraph under their
sustainability report reads:
Our interventions are largely intended to be long term
and sustainable, and undertaken in partnership with
local communities, government and NGO’s, where this
is applicable, to ensure the greatest possible impact,
longevity and support. The scale and influence of these
interventions varies from operation to operation, and is
dependent on specific local needs and the relative
influence of the company.
This way of argumentation furthermore shows a use of Aristotle’s appeal of logos.
The order and content of the paragraphs construct a perfect logical argument through
the establishment of a problem and following how AGA helps better the issue. The
inclusion of facts and numbers together with the applied problem-solution logic on the
AGA website are difficult for audiences to dismiss. The website page on
sustainability shows a transmission of both intrinsic and extrinsic motives. A clear
example is under the subtitle ‘Sustainability Overview’ where a part of the second
paragraph reads “Our vision is to be the leading mining company, and we will only
81
achieve this vision if we can prove our ability to operate sensitively to and with our
host communities, demonstrating that we will partner with them to create enduring
value.”
This admittance of both an extrinsic and intrinsic benefits of CSR helps establish a
strong ethos around AGA. This is because it simultaneously proves the company’s
virtues of helping society and showing respect towards the audience through being
honest about how CSR creates value for the company as well.
In AGA’s CSR communication online, the rhetorical appeal of pathos is hardly used
this is because for example their (AGA) communication does not seem to be aimed at
arousing the emotions of their audience. However, some pathos exists in the use of
pictures in the CSR section to create sympathy for AGA and their CSR initiatives.
Altogether, AGA can be said to have a high focus on the communication of their CSR
initiatives. They are very professional in their transmission of values and the Triple
Bottom Line and also their argumentation and rhetorical appeals are used with careful
thought to create a coherent message of financial, social and environmental
responsibility.
5.5 Channel
As explained earlier in chapter 3.4.3, companies are presented with many
opportunities when communicating but they need to understand how to utilise the
various channels available to them. In examining how well AGA exploits the various
channels available to them, the study looked at grassroots engagement and AGA’s
corporate website as the main CSR communication channels. This analysis draws
upon Coope’s (2004) best practice checklist to analyse AGA’s online communication.
82
The channel is the means used to transmit the message from sender to receiver
(Littlejohn, 2001). From the interviews, respondents indicated that the channel of
communication depends upon the individuals or the group of people AGA wants to
address. According to the departmental heads, the channels of communication
includes workshops, seminars, conferences, community engagements (durbars), the
media (through press, radio, television, etc), bill boards, emails, text messages, and
feedback checks. The departmental heads admitted that they use different mediums to
reach their stakeholders. Mr. Owusu, the Director of Communications, (AGA) cited
an example that, they reach mining communities through radio programmes, drama
shows, community engagement where the community members come to interact with
the management of the company. He also admitted that, there is no clear cut or one
way of communication flow to and fro among the organization and the community.
Respondents from the community however emphasised on community radio, letters
and
interpersonal
communication
(meetings,
durbars
etc)
as
their
main
communication channels when dealing with AGA.
To analyse AGA’s website communication, the first point on Coope’s (2004)
checklist is to check accessibility and usability. A search engine and a link to the
sitemap are positioned on the website, thus making navigation easy.
On the website, only PDF downloads of their sustainabiliy report are included,
however with the possibility of only downloading the sections of interest
(http://www.anglogold.com/Sustainability). AGA has developed an online version of
their report through a separate site that includes both the actual report and additional
information. This allows stakeholders to browse, search and access topics of their
specific interests (http:/www.anglogold.com/Sustainability).
83
Coope’s (2004) checklist has its third point to be a recommendation to use a dynamic
and interactive design. This recommendation is evident as the sustainability section on
AGA’s
website
incorporates
interactive
flash
images
(http:/www.anglogold.com/Sustainability), extensive links to related material
(http:/www.anglogold.com/Sustainability), and focus on feedback opportunities
(http:/www.anglogold.com/Sustainability). However, the website appears to lack in its
informal engagement with stakeholders.
Coope’s (2004) fourth and fifth recommendations concern the positioning, promotion
and design of the CSR section. Similarly AGA’s, CSR strategies are built around the
Triple Bottom Line1, thus projecting CSR communication to be a core commitment of
the company. This is also evident in the website design, where the section on
sustainability
is
one
of
the
main
sections
of
the
website
(http:/www.anglogold.com/Sustainability) and the design is consistent with the
overall website design. The commitment to the Triple Bottom Line means that AGA
promotes CSR through an integrated annual report and thus links to this report is
found throughout the website.
5. 5. 1 Stakeholder Engagement
AGA is actively involved in stakeholder engagement; an action espoused by Morsing
et al (2006). The company organises periodic durbars with the community members
to discuss developmental issues. They also have field officers who are each assigned
to one of the sectors AGA has created in the community. They serve as
representatives of the company and they explain the policies and at the same time
carry the grievances of the community members to the company. However it would
1
The triple bottom line provides principles and guidelines that indicate how corporations should
perform and report on the triple bottom line by integrating financial, social and environmental
reporting (Elkington, 1997; p. 72).
84
be of much interest to AGA to ensure that their online CSR communication takes the
form of a dialogue between company and stakeholders through the implementation of
online initiatives.
AGA’s participation in informal but trendy dialogues with stakeholders, through
blogs, discussion forums or social media, is very limited. By neglecting these
powerful channels, the company may miss out on a good opportunity to generate
positive word of mouth on several issues.
In conclusion, the medium to use to communicate or disseminate CSR projects is
determined by the company. The investigation of AGA’s communication strategies
towards utilizing the channels at their disposal to its fullest has shown that the
company has thouroughly developed their stakeholder engagement and online
strategies. However, only the uncontrolled channels of the social media are lacking.
As mentioned earlier, AGA has a core value of engagement with stakeholders, and in
accordance with this value, the company has included multiple feedback invitations to
stakeholders especially in their online annual report where every topic has a link for
feedback
(http:/www.anglogold.com/Sustainability).
Also
the
company’s
communication in itself urges stakeholders to engage in a dialogue with the company
and results of such stakeholder involvement are displayed continuously on the
website.
5. 6 Receiver
According to Madsen et al (2010) the foundation of planned communication theories
usually has its focus on the receiver of a communication initiative, in this case AGA’s
stakeholders. As asserted by Morsing et al (2006), one of the greatest challenges of
executing an involvement strategy in CSR communication is the ability to respond to
85
the diverse values of different groups of stakeholders. It is therefore necessary to first
investigate who AGA’s primary and secondary stakeholder groups are and how the
values of these groups are supported through their CSR communication. In line with
Sweeney & Coughlan’s (2008) assertion, the primary stakeholder group of a mining
company like AGA should be the community and the secondary group, its employees.
AGA defines its stakeholders to be those groups of people who are directly or
indirectly affected by their business outcomes, positively and /or negatively; and their
social partners are stakeholders with whom they seek to build mutually beneficial
relationships. This information is reinforced by Mr. Owusu’s assertion captured
below:
Our stakeholder group comprises of the communities
which we operate in, the Ghana government, the
operators, the black sheep i.e. ‘galamsey people, which
currently sum up to about eight to ten thousand people,
chiefs, banks, Ghana Mining Workers Associations,
Employees, Local Government, Ministery of Mines,
EPA, etc.
As noted in the previous sub-head (5.3.1) AGA continuously emphasise their focus on
stakeholder engagement throughout their communication initiatives and company
values. They further define stakeholder engagement to be the “process through which
we stay connected to with our stakeholders and social partners.” For example, as part
of their sustainability podcasts David Noko (AGA’s Exec. Vice President: Sustainable
Development) states that:
There are two key areas with respect to sustainability at
AngloGold Ashanti. As an organisation, we have a
responsibility to engage with society; engagement
means that society must see us as a co-existing partner.
And society must also feel that our presence makes
their lives better in the jurisdictions where we operate –
that is a promise we make when we enter into a
jurisdiction. Sustainability is a continuously evolving
discipline and to that end it requires that there is a
86
common understanding in the organisation about the
subject matter of sustainability
This statement also shows the importance the company attaches to stakeholder
engagement. The mining industry as it is does not have its direct customers to be its
immediate community. The fact that AGA indeed considers the needs, values and
engagement of their communities, is clearly evident in their CSR communication
initiatives. For example, AGA’s trust fund has elected representatives of all the
various communities on its board. AGA does not give less priority to any stakeholder
group. Instead they make sure that their CSR communication is directed towards all
other significant stakeholder groups (for example their employees) whenever the
transmitted information is relevant to the group.
5.7 Cultural/Field Experience
As stated in chapter 3. 7.5, a successful involvement strategy involves not only the
concern for values of stakeholders but a concern for their (stakeholders) culture. If an
organisation does not communicate in the “language” of its stakeholders, it would be
difficult for that particular group of stakeholders to understand the contents of that
message. This would subsequently hinder involvement and dialogue between the
organization and its stakeholders. As Würtz (2004) argues, such a concern can be
directly communicated through the design of a website. However the concern with
Wurtz’s (2004) assertion is the availability of internet to all stakeholders. For
example, the case of AGA who has the bulk of its stakeholders falling within the
illiteracy group will obviously not benefit from Wurtz’s assertion.
Another issue of concern in this part of the analysis is the fact that AGA has only one
corporate website available to all its diverse cultures of stakeholders. As argued by
87
Würtz (2004), accurately targeted online communication and design requires study of
the culture of the target audience (Würtz, op.cit. p. 109). Hence, problems could arise
in targeting the culturally diverse audience of AGA through one website. What
probably could be done in such circumstance (of cultural diversity) is to investigate
the cultural appeals used in AGA’s web design on the basis of a selection of the most
relevant cultural design implications described by Würtz (2004).
An analysis of the design of AGA’s website shows several ambiguous cultural
appeals. The navigation, menus and general transparency of the website is clearly
favours a Low Context culture2, which is visible from the specific and transparent
navigational clues and amount of explicit information. According to Würtz (2004),
these design implications show concern for a high message speed, monochromic time
perception and linear thought patterns, all specific to Low Context cultures (ibid.).
However, the strong use of imagery on the site and animated effects in the interactive
annual report shows great concern for a High Context culture3. In line with Würtz
(2004), pictures and animated effects are used to support the verbal communication in
a non-verbal context – a characteristic specific for High Context cultures (ibid.).
While the use of design effects can be seen as one of the strengths that the AGA
website has employed, the subsequent lack of specific cultural targeting may show
consequences for their online communication. For example, it is difficult to obtain
information on their operations in Ghana alone and since this study is based on their
Ghanaian operations it is a major problem in research.
2
Low context cultures (North America and much of Western Europe) are logical, linear, individualistic,
and action-oriented. People from low-context cultures value logic, facts and directness.
(www.marin.edu/buscom/index_files/Page605.htm)
3
High-context cultures (Middle East, Asia, Africa and America) are relational, collectivist, intuitive and
contemplative. This means they emphasise interpersonal relationships
(www.marin.edu/buscom/index_files/Page605.htm).
88
In terms of face-to-face stakeholder engagement AGA’s decision to categorise their
communities into different sectors helps them to plan their communication to each
sector with their cultural preference in mind. Their proposed trust fund for sustainable
development in Ghana also has its board members, including representatives from all
sectors, giving the board a diverse display of cultures.
5.8 Feedback opportunities
A central point in AGA’s communication about their CSR efforts is the inclusion of
stakeholder opinions and feedback. Throughout the website, feedback opportunities
are given together with an assurance of how feedback is appreciated at AGA
(http:/www.anglogold.com/Sustainability); and AGA has devoted several sections to
this value of stakeholder engagement (e.g. AR4 and websites). The inclusion of
feedback and opening of dialogue is an indication of how AGA sees itself as being
accountable to stakeholders, and how it values this accountability. With the existence
of only one website for all their operations the company relies a lot on its local
community engagement programmes. The interview responses show that AGA is in
constant interaction with its communities especially, the sector heads and
representatives. The study also revealed that the community members have the
Community Relations office as their first point of call when they need to
communicate with AGA. AGA on the other hand also uses its community relations
officers as their direct communication link to the community. Each sectored
community is overseen by a community relations officer. This according to
respondents from the community helps them to quickly respond to messages from
AGA since they have direct access to the community relations officers and at the
same time effect change. This according to Morsing & Schultz (2006) is a vital
4
AR – Annual Reports
89
aspect of an involvement strategy to CSR communication. Thus it allows stakeholders
to constantly change the organization, thereby making the CSR communication a
circular process (chapter 3.7.5)
An adaptation of Schramm’s Model as conceptualized by Devito (1994)
5.9 Summary
The chapter analysed interviews conducted in Obuasi and compared it with
documents from AngloGold Ashanti. The analysis brought to fore issues of AGA’s
interpretation of CSR and how interactive their CSR communication is. The company
looks at CSR as a long term and sustainable relationship with their stakeholders to
ensure the greatest possible impact and support.
They actively involve the obuasi community in their CSR decision making through
frequent engagements/interactions with them. However, the community still believes
90
that AGA can do better in terms of community engagement and involvement with the
introduction of a sustainability fund which they have representatives on the board.
CHAPTER SIX
SUMMARY OF FINDINGS, CONCLUSIONS AND RECOMMENDATIONS
6.0. Introduction
This chapter recaps the salient observations and findings of the study. It summarizes
the entire case study, draws conclusions and gives recommendations for further study.
The chapter concludes with some suggestions for further research in connection with
the study.
6.1.
Summary of findings
The aim of this study has been to investigate the challenging tasks of engaging in and
communicating corporate social responsibility. This study takes it theoretical point of
departure from Schramm’s Interactive Communication Model, because it sees
communication as a process by which meaning is assigned and conveyed between
parties in an attempt to create a shared understanding.

AngloGold Ashanti’s interpretation of CSR includes issues related to safety,
dignity and respect, diversity, accountability, stakeholder engagement and
sustainable development that is directed towards shareholders, employees,
business and social partners and is motivated by the need to give back to
society, maintain and enhance reputation, derive competitive advantage
whiles building a long term relationship with stakeholders. Thus as an
91
organisation, CSR is a long term and sustainable partnership with their local
communities, government and NGO’s. This partnership is to ensure the
greatest possible impact, longevity and support.

AGA’s communication strategy show’s an adherence to Morsing & Shultz’s
stakeholder involvement strategy as it creates opportunities for dialogue,
participation and involvement. This strategy as compared to previous studies
(Torvienyeku et al, 2007; Mensah, 2009) shows a positive change in the
company’s CSR communication approach.

AGA’s CSR communication process depicts an adherence to Schramm’s
interactive communication model. The study interpreted AGA’s CSR
communication through Schramm’s model as conceptualized by Devito
(1994) and found that the company’s CSR communication process fits into
the model. This also showed the dialogic aspect of AGA’s CSR
communication.

AGA’s CSR communication depicts an adherence to the Triple Bottom Line
theory by Elkington (1997). Thus the organisation perform and report on the
triple bottom line by integrating financial, social and environmental reporting
as they are interdependent.

AGA’s CSR initiatives and communication develops out of the organisation’s
business policies and corporate values. This helps the organization to project
itself as leading mining company in Ghana whose desire is not solely to mine
gold but at the same time improve the lives of its stakeholders. This allows
the organization to operate in a peaceful environment (and thereby
maximizing their profits) as customers have started to put emphasis on CSR
engagements.
92

Further, the expectation of stakeholder feedback in the online communication
(even though present) was found to be scarce. In all, these findings
demonstrate that AGA, while communicating their CSR efforts successfully,
could be compromising the circular process of communication which is
necessary for true stakeholder involvement. However the organisation’s CSR
initiatives are gladly welcomed by their (AGA) stakeholders as they
(stakeholders) form an integral part of the decision making.
6.2 Recommendations
Based on the findings of this study, the following are recommended so as to better
CSR communication:

Policy makers should take a second look at corporate regulatory frameworks
or mechanisms within mining companies to strengthen the culture of
stakeholder engagement approaches. This should be done through a designed
communication system to make sure that the actual message is communicated
and feedbacks are taken from the public for management decision.

AGA’s feedback system on online CSR communication should be improved to
enhance true stakeholder involvement.

Management of mining companies’ responsibility to identify and solve
pressing needs of the communities that they operate in can be enhanced by
doing a careful and proper ‘community profiling. This can be achieved through
a well-planned communication system where all stakeholders, both internal
and external, are involved.
93

Organisations should maintain ethical CSR communication policies and
provide training to ensure that all internal stakeholders (employees)
communicate effectively on CSR projects by the organization.

CSR engagements should be a collaborative effort and what is in the best
interest of the community should be discussed by all stakeholders of the
company. Stakeholders must come together, debate about it, and agree on
what is in the best interest of the community and then communicated through
a well-designed communication system. Information or communication guides
can be developed and then circulated to all stakeholders, especially, the
internal stakeholders. Training programmes can also be organised as an added
incentive.
6.3 Future Research
Corporate Social Responsibility projects/activities and the interaction through regular
and proper communication system with stakeholders are not highly researched areas,
and the door is still open for more academic research. The researcher felt that limited
research efforts has been done in this topic in the developing countries in general and
Ghana in particular and hence suggested that the following topics may provide good
research ideas:
i.
Replicate this study by using a multiple case study approach to allow a
comparison of CSR communication strategies of the various multinational
mining companies in Ghana.
94
ii.
Conduct a study to measure the extent to which stakeholders, especially the
community considers the field of experience of mining companies in their
CSR communication process.
iii.
Conduct a study that will focus on specific CSR programmes that will build up
knowledge based society and how CSR activities can be properly
communicated.
6.4 Conclusions
This thesis has explained and discussed the corporate social responsibility henomenon
from a communicative viewpoint. In order to exemplify the theoretical discussions
empirically, parts of AGA’s CSR communication have been analysed. AGA’s
communication was generally found to be professional, leaving the stakeholders with
a positive impression of a company taking corporate social responsibility seriously.
Nevertheless, a number of aspects may be improved for instance their online
communication.
Before these conclusions were reached, the CSR concept was reviewed. CSR is a
complex and multifaceted area of research, which means that many attempts have
been made at defining it, and that it has bred several related terms. It was decided to
primarily focus on the communicative aspect of CSR.
One thing is to understand CSR and to be socially responsible; another is to
effectively and professionally communicate this social responsibility to the
stakeholders. The CSR Communication Framework based on Schramm’s interactive
model was used as the main analytical tool in order to understand the different
responsibilities which companies have today and to explore how AGA communicates
95
its CSR initiatives. It was found that the company‘s communication is strategically
structured according to the Stakeholder Involvement Strategy, which means that AGA
is engaging in a two-way symmetric communication. This is a mutual dialogue, since
the feedback from the receivers is not delayed and concerns mostly the way they are
communicated to, whereas it does discuss the message itself.
The nature of persuasion in their (AGA) communication was seen as pervasive and a
given prerequisite for AGA in order to change any negative attitude, behaviour and
perception of the stakeholder audience and to convince its readers (mass audience) of
their CSR activities and goodwill.
Based on the findings from the conducted analyses, it can be concluded, that AGA’s
current CSR communication is not merely for face-lifting but relationship building.
Although there are indications that the company would need to effect some changes
especially on their online communication in order to reach the ideal two-way
symmetric communication strategy, AGA has longstanding experience tied up with
professionalism when it comes to CSR activities and its communications.
96
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Appendix A
INTERVIEW GUIDE FOR ANGLOGOLD ASHANTI STAFF/MANAGERS
What does CSR mean for AngloGold Ashanti Ltd?

Does AngloGold Ashanti practice CSR?

Who are the company’s stakeholders
When did the company implement a CSR policy and why?

Do you believe that your customers consider it important that the company
actively work with CSR?

Do your customers know about the company’s CSR engagement?

Do you believe that your employees are affected by the company’s CSR
activities?
How does the company work with CSR?

Which CSR activities have been implemented during the year 2010?

What CSR activities does the company plan to implement in the near future?

Are there beneficiaries in need of these activities?

And do you believe they are in agreement with the company?

In what way has CSR activities affected your daily work?

Does the company have CSR activities within the areas of:
 Environment
 Philanthropy
 Social issues
 Urban investment
 Working environment
111
Is CSR a part of branding for AGA

What is the relationship between CSR and branding?

What is the relationship between CSR and reputation?

Is there any example on a situation whereby CSR has affected the reputation
of the company?

Is it voluntary to work with CSR?

Has AGA ever had the choice to choose to work with CSR or not?

How is the success of a CSR programme measured, any specific examples?

Is there any similarity between AGA’s CSR activities and that of its
competitors?

Is there any cooperation between AGA and its competitors?
Does the company communicate its CSR activities to the public, customers and
employees?

Which methods of communication are used in the CSR activities?

To what extent does the company communicate the CSR activities done or in
progress?

Why does the company communicate CSR activities?

Do you believe that the company’s CSR activities can affect the company’s
reputation?

In which way?
Where is the communication issues located in the corporation?

At which levels?

How does communication work in a large decentralized organization such as
AGA?
112

Which kind of information has the head office as its origin?

How do you accomplish general information communication that is in
congruence for a corporation of this size?
Does the company have any communication system?

Internal communication?

External communication?

Who are the receivers of the external communication?

In your own opinion, what kind of perception do you think the media has
about AGA?

Do the Ghanaian media write positively or negatively on AGA’s CSR
activities?

How does the company communicate CSR topics to the media?

What is the communication strategy in a crisis situation?
113
Appendix B
INTERVIEW GUIDE FOR OPINION LEADERS AND OTHER
STAKEHOLDERS
1. Are you aware of any CSR activities by any company in this area?
2. Does AngloGold Ashanti take part in CSR activities you know?
3. How do you get to know of any CSR activities by AngloGold Ashanti?
4. Is/are there ways for you as an opinion leader/chief to communicate your
concerns, with regards to what you think is necessary for your community?
5. What are your challenges/concerns with regards to CSR activities in your
community?
6. If you are to suggest or make recommendations on how to improve the
communication between AngloGold Ashanti Ltd and their community
members what will be your contributions?
114