Internalizing the Negative Externalities of Mining in Ghana: Should Corporate Social Responsibility Be Voluntary?

Mining operations in Ghana and elsewhere have resulted in both positive and negative externalities in mining countries. Whilst the positive externalities have always been highlighted, not much attention has been paid to the negative externalities on mining communities despite several protestations from civil societies, NGOs and people living in mining areas. The impact of the negative externalities as manifested in health, social and environmental consequences have been borne by mining communities at huge cost. In the face of the consequences of the negative externalities, many have questioned whether CSR as a mechanism to address mining organizations’ negative impact on society should remain voluntary. This paper looks at the negative externalities of mining activities on communities and proposes that mining companies should internalise the cost of negative externalities arising out of their operations through CSR to avert future regulations of their impact on society. Keywords: Externalities, CSR, Mining, Investment, Cost