Managing Conflict in the Extractive Industry through use of Corporate Social Responsibility: A Case Study of Magadi Soda Ash Mining in Kajiado County

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Abstract:

As a major driver of economic growth in many developing states, the management of conflict arising from extractive industries has become a constant theme in understanding governance of the extractive industry. This thesis offers a platform for understanding the existing and likely potentials of conflict in the extractive industry of Kenya and the conflict management strategies used. One of the key questions that this thesis seeks to answer is whether Corporate Social Responsibility (CSR) is the missing link to conflict management in the extractive industry. The study found that the causes of conflict are similar across the mining areas, Turkana, Kitui. Kwale and Magadi. This is an important factor, as it suggests that conflict resolution mechanisms that would be used in one area would work in the other. The success level would however be dependent on the management of the mining company and the transparency level of the company. The findings show that CSR can be used to prevent conflict however not to resolve. For CSR to work as a conflict prevention tool the study recommends that community participation and understanding community needs be put at the core of ever/ CSR plan. It also recommend since the land factor, which is one of the main causes of conflict in the areas, cannot be addressed through CSR, the government therefore comes in as an actor to ensure fair compensation for land lost. The thesis concludes that the government is the sole stakeholder of all extractive areas therefore the sole responsibility to ensure that there is smooth exchange of resources from the community to the mining companies rest on the government's effectiveness.

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Managing Conflict in the Extractive Industry through use of Corporate Social Responsibility: A Case Study of Magadi Soda Ash Mining in Kajiado County

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