Let the Talk Count: Attributes of Stakeholder Engagement, Trust, Perceive Environmental Protection and CSR

Abstract

This article tests the links between attributes of stakeholder engagement (information sharing [quantity and quality of information sharing], procedural fairness [respectful treatment and providing voice], and empathy) and local communities’ acceptance of corporate social responsibility (CSR) initiatives with the mediating roles of trust and perceived environmental protection. Using Ghana as a case, survey data were collected from 604 local inhabitants in mining communities for the study. In analyzing data with a structural equation modeling technique via IBM SPSS AMOS Version 22.0, the quality of information shared, respectful treatment, giving voice to and showing empathy to local inhabitants positively related with trust. Trust and perceived environmental protection partially mediated the relationships between attributes of stakeholder engagement and acceptance of CSR. The findings show different dimensions with different extent to which trust between mining firms and local communities can resolve conflicts on CSR initiatives as well as provide guidelines for healthy communication between stakeholders.