Evaluating the Impact of Business Ethics on Community Development: Evidence from Foreign-Owned Mining Companies in Sierra Leone

John Albert Sankoh and Samuel Conteh
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John Albert Sankoh: School of International Development and Cooperation, University of International Business and Economics (UIBE), Beijing, China.
Samuel Conteh: School of Economics and Management, Beihang University, Beijing, China.

International Journal of Science and Business, 2026, vol. 49, issue 1, 114-131

Abstract: This study examines the impact of business ethics (BE) on community development (CD) in the context of foreign-owned mining companies in Sierra Leone. Rooted in Stakeholder and Institutional Theories, this study investigates the mediating role of corporate social responsibility (CSR) and the moderating influence of the regulatory environment (RE) on the relationship between ethical business practices and socio-economic outcomes for local communities. The study employed a quantitative explanatory research approach, utilizing data from 273 respondents — comprising community residents, mining employees, and civil society representatives — to test six hypotheses using Partial Least Squares Structural Equation Modeling (PLS-SEM). The results indicate that BE has a substantial and favorable impact on both CSR and CD, whereas CSR also exerts a considerable positive effect on CD. Furthermore, CSR partially mediates the relationship between BE and CD, underscoring its crucial role in transforming ethical practices into community-oriented action. The regulatory environment was found to have an unfavorable impact on the BE–CD relationship, suggesting that stricter restrictions may limit proactive ethical participation. Nonetheless, it did not substantially influence the CSR–CD relationship, indicating the robustness of CSR initiatives, regardless of regulatory severity. These findings highlight the necessity of incorporating ethical concepts and comprehensive CSR strategies into corporate practices to attain sustainable development objectives, especially in institutionally vulnerable and resource-abundant nations. The discussion encompasses both practical and theoretical ramifications, as well as prospective research directions.

Keywords: Business Ethics; Community Development; Corporate Social Responsibility; Regulatory Environment; Stakeholder Engagement; Institutionalism; Mining Industry in Sierra Leone (search for similar items in EconPapers)
Date: 2026
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Persistent link: https://EconPapers.repec.org/RePEc:aif:journl:v:49:y:2026:i:1:p:114-131

DOI: 10.58970/IJSB.2637

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