ABSTRACT

This study assessed community relations (CR) by studying AngloGold Ashanti. The study, through a qualitative research approach, conducted interviews to find out the reasons behind community relations and how it was communicated to the host communities. The study also considered how communities were involved in the implementation of a community relations policy. The challenges and benefits of CR to mining companies and the host communities were also sought. Four community leaders and a community relations practitioner were interviewed to gather data. The study was underpinned by the stakeholder theory and the two-way symmetrical model of communication. The findings of the study established that the purpose of AGA’s community relations policy is to gain social license to operate, and to enhance the mutually beneficial relationship between the company and its stakeholders within the communities. The study also revealed that communities like constant communication and community engagement which yield result. It was found that for community relations to be successful, it must not be placed under any other department within an organization but must have a full-fledged department. The findings also revealed that CR should be part of the top management positions in order to run a proactive CR department. A strong CR policy, well implemented, involving community people through the appropriate channels of communication, brings community people to the understanding that community protection is a shared responsibility. The challenges of CR do not only come from the communities but management of the mining company. It was established that benefits of CR abounded for both the mining company and the communities. Feedback was found to be a very important tool in community relations because a lack of it can create mistrust for companies, especially in the mining sector.

CHAPTER ONE INTRODUCTION

• Background to the Study

Globally, the extractive industry is regarded as a dominant force behind the economies of various mineral rich countries. The contributions of mining companies to the economies of their respective countries are evident in terms of taxes, royalties, social interventions, among others, to support the development of the country. Therefore, host countries and international bodies make several attempts to ensure that inasmuch as these extractive industries exploit the natural resources and make profit from their investments, the environment is not endangered.

Business organizations do not operate in a vacuum. Mining companies are operating within some of the poorest and most marginalized communities in the world (Kemp (2010). The British Geological Survey (BGS)’s report on World Mineral Production contained information about minerals production in Europe, Africa, China and South East Asia and South American. Minerals identified being mined in the world comprise gold, diamond, bauxite, manganese, copper, coal, among others (http://www.bgs.ac.uk). Some of these minerals are also mined in Ghana. Garvin,

McGee, Smoyer-Tomic and Aubynn (2007) asserted that Ghana is well endowed with substantial mineral resources, primarily gold, diamonds, manganese, and bauxite. Before mining companies begin work in their mining areas, they satisfy all requirements by law including environmental and safety requirements. Thus, government monitors them to pay taxes, renew contracts and agreements regarding the size of their concessions. Despite all the policies and institutions, environmental degradation in most of mining communities in Ghana is still of a major threat and

concern.   Shockingly,het   immediate  recipients   of  the  negative  impact   of  mining  on   the

environment are the local people living within the communities which host these extractive companies.

The sole aim of any mining company, as a privately owned entity, is to maximize profit whereas the host community’s concern may also be the protection of the environment for their survival, both for the present generation and the generation to come, improved health, education, and stabilized local economy, among others. Expectations about the roles and responsibilities of both companies and communities can lead to growing misunderstandings, mistrust and eventually conflict (Garvin et al 2007). This obviously demands a very effective community relations team of experts in order to ensure a mutually beneficial relationship between the organization and the host community. For such organizations to operate effectively, they should be able to critically relate to the society and environment. The International Organization for Standardization (ISO) advised businesses and organizations to be socially responsible. ISO’s social responsibility standard provides guidance on how businesses and organizations can operate in a socially responsible way. Such standards guides organizations to act in an ethical and transparent way that contributes to the health and welfare of society.