1. ZAMBIACATHOLIC UNIVERSITY
FACULTYOF BUSINESS,MANAGEMENTAND FINANCE
DEPARTMENT OF BUSINESSADMINISTRATION
STUDY TITLE: AN INVESTIGATION OF CORPORATE SOCIAL
RESPONSIBILITY (CSR) IMPLEMENTATION BY KONKOLA
COPPER MINE (KCM)
DIANA .L.HATIMBULA
I.D. NO: 110046
2015

2. 1.0. INTRODUCTION AND BACKGROUND
• Corporate Social Responsibility (CSR) is a responsibility a company
has to the community or the society of which it operates. Farrell et
al (2004) defines CSR as “an organization’s obligation to maximize
its’ impact on stakeholders and minimize its negative impact”.
• Though CSR has become a issue growing concern, companies still
do not voluntarily comply to the idea but are forced to adapt it due
to the expectations of the society (Han, 2010).
• Henceforth the following components were considered to help
understand CSR implementation at KCM and these were:
i. Description and definition of CSR
ii. Integration and implementation of CSR,
iii. Monitoring of CSR.

3. 1.1. History and background of KCM
• KCM is one of Africa largest copper producing mine in Zambia
• Was initially owned by Anglo American Corporation and Roan
Selection Trust but by early 1970 it was nationalized for a period of
20 years.
• After privatization, Anglo American got hold of 51% of the
company comprising of Konkola , Chingola mines and Nkana
smelting and refinery operation.
• After the withdraw of Anglo American it was owned by
government entities ZCCM-IH AND ZCI.
• Vedanta Resources plc. which is major shareholder now by 2004
owned 51% holding of the company.
• By 2008, it increased its holding to 79.4% and has invested
US$2.9 Billion for upgrading the mines which has increased the
life of the mines to over 25 years(assessed from KCM website).

4. 1.2. PROBLLEM STATEMENT
 Due to the number of growing scandals in the society which
include environment disasters, ethical issues, fraud, bribery, child
labour, and dishonesty in business operations a number of
companies have seen the need to engage in CSR. These problems
mentioned require that the company is responsible for its actions
in all by taking to account social responsibility(Carroll, 1979;
Welford, 2004).
• For that reason the researcher found a problem that led to keen
interest to investigate CSR implementation by KCM a mining
company.
• If KCM does not implement CSR the society loses out as it giving
out more for less. As a result the society loses out in terms of
KCM polluting the air, water, land making it hazardous for the
community. Hence the need to give back to the society through
CSR programs.

5. 1.3. RESEARCH OBJECTIVES
Main objective
• The general objective of the research is to give a better
understanding of CSR and how the concept of CSR is integrated
to the business model.
Specific objectives
i. To find out how KCM describes or defines CSR and its
concept.
ii. To find out how KCM has integrated CSR and the extent to
which it is implemented in the company.
iii. To find out how KCM has monitored or reported its CSR
efforts.

6. 1.4. RESEARCH QUESTIONS
i. How does KCM describe or define CSR and its concepts?
ii. How does KCM integrate CSR and what extent has CSR
implemented it in the company?
iii. How does KCM monitor or report its CSR efforts or activities?

7. SIGINFICANCE OF THE RESEARCH
 the study provided evidence on how aspects of the company that
can improve CSR implementation through integrating it in the
company operations that is giving a better understanding of CSR in
the organization.
• The study also gives out the importance of integrating CSR in the
company and which contributes to new literature for scholars.
SCOPE OFTHE RESEARCH
• Information was collected from Konkola Copper Mines (KCM) in
Chingola and included investments expenditures on CSR from 2007
to 2011.

8. 2.0. LITERATURE REVIEW
2.1. DEFINITIONS
 Corporate Social Responsibility (CSR) can be defined as ‘‘the
voluntary integration, by companies, of social and environmental
concerns in their commercial operations and in their relationships
with interested parties” ( Ciliberti et. al, 2008)
 Davis and Frederick (1984) stated that CSR is an organization’s
obligation to engage in activities that protect and contribute to the
welfare of society, including general communities, customers,
shareholders, the environment and employees.
 CSR is a way that business can be responsible and profitable and
yet CSR activities initiatives do not seem to work or convince the
society of businesses engagement with social responsibility
(Muthami, 2014)
 All these definitions combined are useful for better understanding
of CSR.

9. Literature Review cont….
2.2. RELATED STUDIES
 Muthami (2004) carried out a study on the investigation of how
practicing corporate social responsibility affects organizational
performance at Unilever ESA (Kenya)
• The findings showed that CSR affects the corporate financial
performance of the organization to great extent. The study revealed that
CSR enhanced organization performance through creation of demand
for organization product, bring the company close to the people,
increasing sale volumes and making the company socially responsible.
 Another study was a debate on whether Corporate Social Responsibility
(CSR) is a choice or a necessity for global companies.
 And the findings were found that CSR implementation process is a
complex process that needs to be integrated in every part of the
organization and in the daily activities in order to be successful (
Hermansson & Olofsson, 2008).

10. 2.3. Factors for implementing CSR
2.3.1. DESCRIPTION OR DEFINITION OF CSR
• Corporate Social Responsibility (CSR) can be defined as ‘‘the
voluntary integration, by companies, of social and environmental
concerns in their commercial operations and in their relationships with
interested parties” ( Ciliberti et. al, 2008)
• Andriof and McIntosh (2001) highlights four areas of CSR which are:
the market, environment, community and work place.
 Activities of CSR: Education, sustainable development, health care,
sports, infrastructure development and these can be either internal or
external responsibilities.

11. 2.3.2.CSR integration or implementation by a company is done by
looking at these factors:
Top management involvement
Company mission and culture
CSR organization
Codes of conduct
2.3.3. MONITORING CSR
• These are some of the standards used for evaluation of CSR are
follows as ISO 14001 ( an international document on environmental
management systems)
• SA 8000( social accountability document for auditing CSR)
• GRI ( document that provides for guidelines on reporting systems)
• EMAS,(document that provides for systems of auditing and
managing the environment).

12. CONTINUATION on MONITORING CSR
 And Zadek (2001) outlines the reasons for monitoring or
measuring CSR performance is monitored are as follows:
 Know what they want to achieve and to measure performance
against aims.
 Know what ways, if any, the company can explain their actions
to their stakeholders
 Find out the options available to improve their social
performance in order to sustain.
• Understand the implications of what they are doing

13. 2.4.Theoretical Framework
2.4.1.Motives and benefits of CSR implementation
Streets & Weihe (2006, p.8) states that motives and benefits of
CSR implementation are:
• It attracts qualified staff (Successful CSR implementation attracts
more qualified staff to seek for employment in the company)
• It motivates already existing employees: As good CSR
performance will motivate the employee as it helps manage
dissatisfaction.
• Its also increases company reputation: as the company
contribution of CSR attracts a good company image and
minimizes the negative impacts.
• Philanthropy simply means charity or a humanitarian act as the
company contributes and commit their resources to CSR
programs.

14. 2.5. Conceptual framework
conceptual framework diagram
INPUTS PROCESS OUTCOME
Source: compiled by author
Company
definition of
CSR
Integration/
Implementation
extent of CSR
Monitoring
and evaluation
of CSR
CSR
Implementation
Model
CSR is integrated
in the company

15. 2.6. CRITIQUE ON LITERATURE
• Many authors have written studies on CSR, but a few of them
have concentrated on CSR in the mining industry as well as
how CSR integrated in the organizational operations.
• And studies have been carried out on CSR in other industries
(Estrada, 2008; Chaisurivat, 2009; Muthami, 2014) but non of
them have mentioned CSR in the mining industry hence the
knowledge gap.

16. 3.0. METHODOLOLOGY
Research design
• Case study design: the case study was meant to collect in-depth
information as well as get insight of the research.
• Interviews were used for collecting primary data which involved
the CSR people.
Research method
• Was a qualitative approach by aid of interviews which were semi –
structures to allow room to ask more question or new ideas on the
subject.
Data collection and analysis
• Primary data was by aid of interviews and secondary books,
journal, theses and publications by KCM on CSR.
• The data collected was analyzed using qualitative methods such as
thematic analysis as well as Microsoft excel.

17. 4.0. PRESENTATION of FINDINGS
Fig 4.1: pie chart for years of service for employees

18. CONTINUATION ON FINDINGS
INVESTMENTS EXPENDITURES OF CSR PROGRAMS
Fig 4.2: Graph for CSR
expenditure on
Infrastructure
Fig 4.3: Graph for CSR
expenditure on Health

19. Cont….
Fig 4.4: Graph for CSR
expenditure on Education
Fig 4.5: Graph for CSR
expenditure on sustainable
Development

20. Cont….
Fig 4.4:Graph for CSR
expenditure on Education
Fig 4.5: Graph for CSR
expenditure on sustainable
Development

21. OBJECTIVES OF THE
RESEARCH
DISCUSSION OF THE FINDINGS
1. To find out how KCM
describes or defines CSR
and its concept.
 The researcher found that KCM describes CSR a
hand that goes beyond mining.
 Defines it as a responsibility of a corporate
citizenship by participating to give back to the
society needs.
2. To find out how KCM has
integrated CSR and the
extent to which it is
implemented in the
company
 It is evident that KCM implement and integrates
CSR in the company as from management ,
codes of conduct., culture.
 And management work hand in hand with the
CSR department in organizing CSR programs
and issue that they are carried out.
3. To find out how KCM has
monitored or reported its
CSR efforts.
• KCM monitors CSR to track the benefits of CSR
to the society.
• The CSR activities are monitored by the
following standards GRI,EMAS, ISO 2600 for
guidelines on CSR, SA 8000 and external codes
such as Equator principles are used to
benchmark CSR works.

22. Recommendations and areas of further study
• It is recommended that the company should put considerations in
investing infrastructure and educational programs as they be investing
in a better future help eradicate poverty and ignorance.
• Since KCM management is involved in CSR activities but it should
strive to motivate their employees to know CSR as it an integral model
for the business and they should conduct training programs for all
employees in the organization on CSR.
And for further studies these suggestions can be helpful:
i. The effect of leadership on CSR implementation, this study will help
to understand the importance mangement in implementing CSR.
ii. A quantitative study can be done on the effect of the implementation
of CSR on organizational financial performance of the company. The
research could look at CSR has impact on financial performance of
the organization.