Disaggregating the effects of corporate social responsibility on community economic wellbeing in Tanzania’s mining sector

Abstract

This study examines the effects of disaggregated corporate social responsibility (CSR) practices on the economic wellbeing of host communities in Tanzania’s mining sector. Drawing on stakeholder theory, the study adopts a quantitative cross-sectional design using primary survey data collected from 393 respondents in three gold-mining regions - Geita, Mara, and Kagera, with 332 valid responses analysed using SmartPLS 4. The analysis focuses on the effects of economic, legal, ethical, and philanthropic CSR practices on community-level economic outcomes. The findings indicate that ethical, legal, and philanthropic CSR practices have positive and statistically significant effects on economic wellbeing, while economic CSR practices are not statistically significant. These findings suggest that while legal CSR practices contribute positively to economic wellbeing, their influence remains relatively modest, indicating that compliance-based interventions alone may not generate substantial household-level improvements. In contrast, responsible business conduct and community-oriented investments appear to exert a stronger and more direct influence on local development outcomes. The study contributes to the literature by providing empirical support for disaggregating CSR into distinct dimensions when assessing development outcomes in extractive industries and highlights the need to move beyond aggregate CSR measures toward more differentiated and context-sensitive analyses. From a policy and practice perspective, the findings underscore the importance of aligning CSR initiatives with community priorities and strengthening implementation frameworks to enhance their developmental impact in resource-dependent economies.

Keywords: {'name': 'Corporate Social Responsibility, Economic Wellbeing, Extractive Industries, Integrative CSR Economics, PLS-SEM, Stakeholder Relations, Sustainable Community Development'}

Authors & affiliations

Nyanda J. Shuli
Open University of Tanzania

France A. Shayo
Eastern Africa Statistical Training Centre

Chacha A. Matoka
Open University of Tanzania

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