The Effects Of Legislation On Corporate Social Responsibility In The Minerals And Mines Sector Of Nigeria

Abstract

This paper examines the effect of legislation on the corporate social
responsibility in the minerals and mines sector of the Nigerian economy.
Observing that the extractive industry sector in the country is populated by
enclave industries that give little priority to CSR, the paper analyses the
Nigerian Minerals and Mines Act, 2007. The Act obligates contracting a
Community Development Agreement (CDA) between the mineral title holder
and the community where the mining company is to operate. Linking CSR
and the CDA through the stakeholder theory, the paper observes that corporate
actors in the solid minerals sector of the country can no longer deprioritise
CSR in their corporate planning as hitherto. It concludes that the effect of this
law is to empower the community as an important stakeholder thereby
validating the stakeholder thesis herein espoused.