Building local legitimacy into corporate social responsibility: Gold mining firms in developing nations

Gifford, Blair; Kestler, Andrew; Anand, Sharmila
July 2010
Journal of World Business;Jul2010, Vol. 45 Issue 3, p304
Academic Journal
Abstract: A transnational model of global strategy suggests that multi-national enterprises generally rely on proven global capabilities to adapt existing business models. Alternatively, this paper argues that the transnational model needs to be amended to allow for a hybrid approach that balances local and global strategies for multi-national gold (MNGs) firms working in developing nations. This is illustrated by Newmont Mining''s efforts to develop local legitimacy through contributions to community development around its gold mining operations in Peru. We then compare the Newmont case with corporate social responsibility (CSR) at other MNGs. We have found that there appears to be an industry-wide institutional environment developing which includes local CSR projects in an attempt to balance the effects of capitalism between global markets and developing nations.


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