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KWAME NKRUMAH UNIVERSITY OF SCIENCE AND TECHNOLOGY
INSTITUTE OF DISTANCE LEARNING
MSC IN STRATEGIC MANAGEMENT
A RESEARCH PROPOSAL TOPIC
CORPORATE SOCIAL RESPONSIBILITY PRACTICES AND ITS IMPACT ON
EMPLOYEE MOTIVATION: EVIDENCE FROM NEWMONT AHAFO MINES
BY
VICTORIAâŚâŚâŚâŚâŚâŚâŚ.
STUDENT ID:
MARCH, 2023
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1.0.BACKGROUND TO THE STUDY
In recent years, companies have become much interested in paying more attention to education,
safety, and the environment; which are requirements to satisfy the interest of their
stakeholders(Hall, Momentè, & Reggiani, 2007). This stems from the fact that stakeholders
contribute enormously in enhancing companiesâ sustainability. To this effect, companies are
realising the need to implement social and environmental programmes and also publish
corporate accountability reports as an attestation of their commitment to stakeholdersâ interests
(Kitzmueller & Shimshack, 2012).
According to Lee & Carroll, (2011), the definition of CSR is centered on four main dimensions
and these are; economic, legal, ethical and philanthropic responsibilities of companies. In
effect, Pirsch, Gupta, & Grau (2007) stated that a company that is socially responsible strives to
make profits, while at the same time obeying the law, maintaining good ethical behaviour, and
subsequently being a good corporate citizen. It is important to state that this definition of CSR
is referred to as the pyramid of CSR. Basically, it is accepted among researchers in the field of
CSR and it is often cited in the local and international literature ( Kim, Lee, & Park, 2015;
StanisavljeviÄ, 2017b). With this in mind, it thus becomes appropriate for the researcher to
adopt this definition.
Kotler & Lee, (2005) asserted that CSR is the commitment of a company to improve the well-
being of the community by contributing corporate resources and adapting business practices in
a discretionary manner. Community well- being in the definition is the conditions in which
people live as well as the ecological issues, and the term discretionary in this context also means
that a company is not legally mandated to undertake such business practice to enhance the lives
of individuals in the community. The European Commission (2011) shared the perspective that
CSR is a concept through which companies integrate the society and environment in their
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business operations and voluntarily interact with various stakeholders to that effect. The
concept of CSR is explained by the stakeholder theory (Weimer & Pape, 1999),which assumes
that a companyâs primary goal is not to only maximise profit but also to satisfy the interests of
all stakeholdersâ, including employees (StanisavljeviÄ, 2017a)
It is instructive to note that companies embrace CSR as the foundation for their business for
many reasons. That is companies who are socially responsible gain positive public opinion and
thus attain higher status, which enables them to distinguish themselves in the market (Carroll,
2015). According to Äeha, (2013),socially responsible companies attract, inspire, and maintain
employees. That is, in addition to shareholders, suppliers, government, local community, and
customers; a large number of employees are becoming more expectant of companies
conducting their business in a socially acceptable way (Bediako, 2017).
It is said that employees are the internal customers of every organisation. Previous theoretical
discourse has observed that employeesâ support of CSR is what decides whether CSR will
spread through an organisationâs culture or remain a mere public relation strategy (Nyuur,
Ofori, Amankwah, & Baffoe, 2022). As internal customers of the organisation, employees are
in the best position to refer their organisationâs products to friends, families, and loved ones
who can be potential customers, only if they are satisfied with the activities of their
organisation.
In essence, if an organisation cares for society and the environment in its business activities, its
employees are likely to feel proud of their company,which can increase their level of (Quarshie,
2021). Employee motivation, in the words of,is described as a personâs psychological response
to his work, in terms of suitability of work facilities, promotion opportunities, positive
relationship with colleagues, good working conditions (Abdullah, 2018).
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The positive relationship between CSR and employee motivation is enlightened by the social
identity theory (Du, Bhattacharya, & Sen, 2007), which stipulates that the higher the level of
the companyâs CSR initiatives are, the stronger the employeeâs level of employee motivation
(Raihan & Al Karim, 2017).The social identity theory is also used to illustrate a positive
relationship between CSR and EE (Du et al., 2007). A company that integrates the care for
society and environment in its business activities and interacts with its stakeholders voluntarily
stands the chance of persuading employees to show high levels of engagement (Sanchez-
Hernandez & Grayson, 2012). (Dâamato, Henderson, & Florence, 2009) (Bailey, Madden,
Alfes, & Fletcher, 2017; Steurer, 2010) indicated that employees who are engaged are the ones
who are fully engrossed by and excited about their work; they take actions that would positively
enhance the corporate reputation and objective of a company. Due to the massive
environmental degradation which is generally caused by mining companies, there is a high
public outcry on the need for Newmont Ahafo Mines to intensify their CSR activities,
particularly philanthropic responsibilities, to benefit the communities within which they carry
out their operations (Quarshie, 2021). It is for this reason that this study drew responses from
employees of this company. Against this backdrop, this study sought to examine the impact of
CSR and employee motivation at Newmont Ahafo Mines.
2.0.PROBLEM STATEMENT
There are growing numbers of research studies linking CSR with stakeholder management
(Koh, Li, & Tong, 2022) and CSR with employee motivation (Kim & Scullion, 2013) in the
western world. They argued a stakeholder approach on CSR was able to enhance organisational
commitment and be used to improve CSR initiatives developed for different stakeholders such
as employees. The incorporation of global CSR practices to existing manufacturing company
in China poses a problem because of the limitations of government policy (Lin, 2010) and the
cultural differences between China and the western world (Yuan, 2015). Drawing on the needs
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to address the influence of CSR on stakeholders, this study enriched the study of impact of CSR
on stakeholder management.
Another specific problem to be examined in this study was that there were a few studies related
to non-financial benefits brought about by CSR in Chinese businesses. By investigating how
employees in the manufacturing company perceive CSR initiatives, non-financial benefits were
explored and provided valuable information with regards o better management of human
resources. This study identifies the proper CSR practices, which were well accepted by
employees, and which therefore contribute to better management knowledge for manufacturers
in Hong Kong and China (Mackenzie & Peters, 2014).
The stakeholder theory proposed by (Freeman, Phillips & Sisodia, 2020) and various employee
motivation theories, this study addressed the linking of CSR and employee motivation to help
business leaders in the mining industry in Ghana. Proper drivers were identified and tested to
aid the corporate executives in enhancing the human resources management. The data
collection method relied on the semi-structured, in-depth interview with the senior executives
and selected employees in the chosen manufacturers.
In an attempt to address these challenges, several studies have been carried out in various
industries such as banking (Milian, Spinola, & de Carvalho, 2019), insurance (Baffoe, 2018),
healthcare (Fitzgerald, Omer, & Thompson, 2018), manufacturing (Raihan & Al Karim, 2017),
and telecommunication (Raihan & Al Karim, 2017).However, little literature exists in the
mining sector. Moreover, these researches have been carried out to examine CSR from the
perspective of consumers (Khan, Hassan, Harrison, & Tarbert, 2020) and these have not fully
examined CSR from employeesâ perspective (Kucharska & Kowalczyk, 2019). Again, it is of
high importance to state that the relationship between CSR and employee motivation has been
inconclusive; thereby creating confusion among policymakers, business consulting firms, and
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company executives regarding the relevance of CSR on employeesâ psychological well- being
at the workplace. As a consequence, the researcher sought to carry out this study to address this
issue by providing empirical evidence on the impact of CSR on employee motivation at
Newmont Ahafo Mines.
3.0.OBJECTIVES OF THE STUDY
The general objective of the study is to examine the impact of CSR on employee motivation at
Newmont Ahafo Mines.
Specifically, the researcher considered it appropriate to adopt the objectives below:
i. To examine CSR practices at Newmont Ahafo Mines.
ii. To evaluate factors that motivates employees at Newmont Ahafo Mines.
iii. To measure the effect of CSR practices on employee motivation at Newmont Ahafo
Mines.
iv. To evaluate the CSR related challenges that affects employeesâ motivation at
Newmont Ahafo Mines
4.0.RESEARCH QUESTIONS
Based on the research objective, the questions below were formulated:
i. What are the CSR initiatives at Newmont Ahafo Mines?
ii. What factors motivates employees at Newmont ahafo mines?
iii. What is the effect of CSR on employee motivation at Newmont Ahafo Mines?
iv. What are the CSR related challenges that affects employeesâ motivation at Newmont
Ahafo Mines?
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5.0.BRIEF LITERATURE
Empirical review
With respect to the relation between CSR and motivation, particularly, the effect of motivation
on the engagement in CSR has been analyzed (Mozes, Josman, & Yaniv, 2011) observed a
positive relation between employeesâ involvement in CSR activities and their motivation. Thus,
this study did not focus on the effect of the adoption of CSR initiatives by the firm on employee
motivation but on the effect of the employeesâ voluntary engagement in such initiatives on their
motivation. On the basis of Self Determination Theory (Ryan & Deci, 2017) assumed positive
effects of CSR-related relative autonomy, i.e., when employees engage in CSR initiatives due
to interest and not due to external pressure, on motivation and approval of their firmsâ CSR
activities. (Wang, Tong, Takeuchi, & George, 2016) applied Self-Determination Theory to
propose a positive link between the satisfaction of particular needs that are central in this theory
(the needs for autonomy, competence and relatedness) and organizational membersâ advocating
for CSR initiatives. (Rupp et al., 2018) picked up this argumentation and underpinned it with a
case study. In summary, the previously discussed four articles focus on aspects regarding
employeesâ motivation to engage in or promote CSR initiatives. However, literature on a
possible impact of firmsâ engagement in CSR on employee motivation is very scarce: (K.
Balakrishnan, Blouin, & Guay, 2019) conclude on the basis of experimental findings a positive
effect of corporate giving on employeesâ motivation. Yet, they test whether their participants
were willing to provide monetary resources in the presence of corporate giving. They do not
investigate further the motivational dimensions behind this behavior. They just conclude that it
should be linked to altruism.
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The previous discussion indicates, that, although scholars have addressed various questions
regarding the link between CSR and motivation, a possible causal impact of CSR initiatives on
employeesâ extrinsic and intrinsic motivation is relatively unexplored. Researchers ( such as
Balakrishnan, Sprinkle, & Williamson, 2011; Kim & Scullion, 2013;Hur et al., 2018) indicate
a possible positive impact of CSR on motivation. Yet, they do not provide any evidence with
respect to intrinsic and extrinsic motivation and only apply a methodology which allows to
draw any causal relations, but they do not measure motivation directly (Moser & Martin, 2012).
Consequently, these studies indicate a possible impact of CSR on employee motivation in
general, but do not provide insights that account for both intrinsic and extrinsic motivation. As
research on crowding out effects of incentives targeting extrinsic motivation on intrinsic
motivation demonstrates (Chao, 2017), particular activities, like incentives or other business
factors, can affect both motivation types differently and even contrary. Thus, a differentiated
perspective on CSRâs effect on motivation types is warranted to prevent any detrimental effects.
In this context, particularly the impact of CSR on these motivation types, and not vice versa,
i.e. the impact of motivation on the engagement in CSR activities, is of interest to business
practice, as it can provide insights of whether CSR can operate as a valuable motivator.
Moreover, the previously mentioned research focuses on relations between the promotion of
CSR initiates on the firm level and that firmâs employee motivation. Yet, as research on sense-
making processes in the context of CSR indicates, other levels beside the organizational one
should be incorporated into the analysis to improve the understanding of the relations between
CSR-related activities on the one hand and effects on the individual level on the other hand
(Aguinis & Glavas, 2019). Moreover, the literature review by (Aguinis & Glavas, 2012)
indicates, that research on CSR provides a rich body of research regarding the influence of
stakeholders, like shareholders, media or activists group pressure, on firmsâ CSR activities. In
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turn, Aguinis & Glavas (2019) discuss the effect of extraorganizational factors, particularly
family, external stakeholders and national culture, on employeesâ sensemaking processes in
relation to CSR. Thus, literature addresses the impact of various external factors on firmâs CSR
and on its employeesâ perceptions of these CSR activities. However, so far literature does not
provide insights into possible effects of supra-organizationsâ promotion of CSR on employee
motivation. Particularly, the recent model by Aguinis & Glavas (2019), which is based on a
broad stream of literature, does not discuss any evidence with respect to such effects of supra-
organizational entities.
Theoritical framework
They explain this effect via Self-Determination Theory as follows: âa SDT mechanism suggests
that employeesâ CSR perceptions motivate them to seek enjoyment, satisfaction of curiosity,
self-expression, or personal challenge in the work they do, since a socially responsible firm
tends to pursue mutual gains for both society and the company beyond the narrow economic,
technical, and legal interests of the firmâ (Hur This in turn âaffects employeesâ intrinsic
motivationâ (Hur et al., 2018). Thus, this study points to a positive impact of CSR on
employeesâ intrinsic motivation. However, it is survey-based and thus again no causal effects
can be inferred, which warrants further experimental research.
In contrast, (Kim & Scullion, 2013) explicitly draw on McClellandâs motivation theory
comprising three main human needs (the needs for achievement, affiliation and power) and
investigate the impact of CSR on motivation on the basis of qualitative data, i.e. semi-structured
interviews with CSR/HRM managers, high ranked officials, and academics as well as
participation and observation. Thus, the authors discuss the relation between CSR and
motivation on a more differentiated basis than (Kunz, 2020).Yet, they do not provide evidence
of causal relations between CSR and motivation. Applying a survey, (Hur, Kim, & Kim, 2018)
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investigate the impact of employeesâ perception of CSR on their creativity and observe a
mediating effect of intrinsic motivation between these variables, i.e. they find a positive impact
of employeesâ perception of CSR and intrinsic motivation. However, in the context of intrinsic
and extrinsic motivation whichâaccording to Self-Determination Theory are linked to
particular perceptional processes related to need satisfaction, this multilevel perspective is of
particular importance: As firms are embedded in supraorganizational structures, like industry
associations, the promotion of CSR on this level might have an impact on these perceptional
processes independently of CSR initiatives on the firm level, because employees can categorize
themselves not only as a member of an organization but also as a member of such a supra-
organizational entity. The present proposal will addresses the mentioned research gaps: It
focuses on the effects of CSR initiatives on both employeesâ extrinsic and intrinsic work
motivation whilst taking into account different organizational levels of CSR engagement and
promotion. In contrast to extant literature, it provides evidence regarding causal relations and
thereby fosters a better understanding of the microfoundation of CSRâs impact on firm
performance. Thereby, it focuses on a particular target group of firms.
6.0.RELEVANCE OF THE STUDY
This research is conducted because of many reasons. The finding of the study provides a
Ghanaian perspective to the concept of CSR with employees as the focus of the study. In
particular, the study will unravel the perception of CSR of employees at Newmont Ahafo
Mines. Moreover, this study aids practice by informing CSR and HR managers on the usage of
CSR strategies as a means of influencing the behaviours and attitudes of their employees
regarding employee motivation and EE. Finally, the study provides additional knowledge on
the impact of CSR on employee motivation in the mining sector for researchers, policymakers,
and business consulting firms interested in enhancing CSR, especially in the mining sector.
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7.0.SCOPE OF THE STUDY
Geographically, this study is delineated to employees working at Newmont Ahafo Mines.
Variables used in the study are CSR and employee motivation. CSR is used as an independent
variable, comprising four dimensions, namely ethical, legal, economic, and philanthropic
responsibilities. On the other hand, employee motivation are used as the dependent variables.
8.0.BRIEF METHODOLOGY
Research design
This research is based on a cross-sectional survey administered through a self-reported
questionnaire.
Research population
The population for this study is all employees of Newmont Ahafo mines located in kenyase.
We chose Newmont because it its prominence Ghanaâs mining sector. It is estimated to have
Newmont directly employed 2,229 people while the presence of the Ahafo mine supported
another 39,000 jobs in the country resulting in a total of 41,000 jobs.
Sampling Technique
I will use the convenience sampling method for the collection of data with the help of a field
survey assistant; questionnaires would be handed over to employees of Newmont Ahafo Mines
at the start and close of work. The questionnaire was accompanied by a cover letter explaining
the purpose of the study and asking for consent of the employee to participate in the study;
employees were not asked their names to ensure anonymity. Through this procedure, I will
collect the data from employees, in line with the definition of employees as described
(BoĹĄtjanÄiÄ & Slana, 2018), those who are not involved in formulating policies and conducting
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corporate social responsibility activities themselves and thus do not defend their corporate
social responsibility activities. The demographic characteristics of the sampled employees are
given.
Data collection instruments
A structured questionnaire would be designed with five-point Likert scales (1= strongly
disagree to 5= strongly agree) to collect the data. The contents of the questionnaire would cover
CSR initiatives, how CSR impacts employee motivation and the challenges of CSR in
motivating employees.
Data Analysis
The aims were to conduct a detailed analysis of the relationship between corporate social
responsibility and employee motivation. This study generated quantitative data; hence
quantitative technique was used to analyze the data obtained. Descriptive statistic tools such as
the mean, median, mode, and standard deviation are conducted to describe the data. Advanced
statistical software Statistical Package for Social Sciences (SPSS) is engage to aid in the
analysis.
9.0.LIMITATION OF THE STUDY
Since questionnaire would be used to gather data data, the study would primarily be limited by the
lack of willingness by Respondents to some information on their employer. This could created data
collection problems.
Secondly, the study focused on only one mining company would limit the generalisation of the
findings to all other categories of mining firms and other sectors. Thus the study did not include other
sectors
10.0. ORGANISATION OF THE STUDY
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This research would be organised and presented in five chapters. Chapter one will cover the
background information on the topic under investigation, a statement of the problem, the
purpose of the study, research objectives and research questions envisaged to achieve in the
research. Also, the significance, delimitation, limitation and definition of terms were included.
Chapter Two would be devoted to a literature review. This chapter critically reviewed books,
journals, and expert papers published by authorities on the topic similar to the subject under
study. Opinions expressed by earlier writers were made known at this stage.
Chapter Three will be on the methodology for carrying out the research and the justification for
adopting any procedure. The chapter will cover the type of research, population, sample and
sampling techniques as well as source of data for the study. The procedure for collecting the
data was also covered in addition to the method of data analysis.
Chapter Four, on the other hand, will present the analysis and discussions of the data collected.
This chapter entailed the profile of the sampled firm, the data analysis and presentation of the
analysis based on the research objectives and the discussions of the research findings with
literature.
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