Exploring mining multinational resettlements and corporate social responsibility in emerging economies: the case of the company VALE, SA in Mozambique

Constâncio A. Machanguana and Idalina Dias Sardinha

Sustainability Accounting, Management and Policy Journal, 2021, vol. 12, issue 3, 591-610

Abstract: Purpose - This paper aims to contribute to the scientific and societal debates about the role of corporate social responsibility (CSR) and particularly on the resettlements’ processes as part of extractive multinational companies (MNCs)’s commitments where the host country is an emerging extractive economy. Design/methodology/approach - It is an exploratory study based on the analysis of secondary data, few interviews and on-site observation and deals with the description of the assessment of VALE, SA resettlement processes and assumed CSR practices of VALE, SA, an MNC operating in the Moatize district, Tete province in Mozambique. Findings - The MNC assumes resettlement processes to be part of the CSR arena and reveals that VALE, SA follows a reactive poor approach as to CSR. The weak institutional context in Mozambique is like others described in the literature. The empirical data together with the sense of an ethical responsibility approach associated with resettlement processes and the paradigm shift in aid for trade as to development supported by the MNC’s CSR leads to the conclusion that resettlement can be considered part of the CSR of a mining MNC. Research limitations/implications - The difficult access to key informants of the resettled communities, local government and little interest in interview participation by VALE, SA, showed a current lack of confidence and communication limitations by the company as to this issue. Practical implications - The failure of VALE, SA and other mining companies to meet their resettlement responsibilities and the inability of government supervision, requires local and national, as well as social and scientific communication processes and debate on this issue to be maintained on an ongoing basis during the mining life cycle to guaranty accomplishments of CSR. Social implications - The controversy over whether mining MNCs will benefit Africa’s emerging economies as to their socio-economic development will continue until MNCs commit themselves and act to be economically, legally and ethically responsible for contributing to the sustainable development of the countries where they operate. Originality/value - This paper contributes to the debate on whether CSR frames the resettlement process based on literature review and key stakeholder views.

Keywords: Africa; Resettlement; Compensation; Local development; Moatize project; Resettled communities (search for similar items in EconPapers)
Date: 2021
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Persistent link: https://EconPapers.repec.org/RePEc:eme:sampjp:sampj-11-2019-0414

DOI: 10.1108/SAMPJ-11-2019-0414

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