Corporate Social Responsibility in Extractive Industries in Sierra Leone and Nigeria: A Comparative Study

The study investigates the role of CSR in addressing the social and environmental impacts of business activities in Nigeria and Sierra Leone’s extractive industries. It mainly adopts a comparative approach to analyse the frameworks supporting CSR in both countries and how companies collaborate with multi-stakeholder groups to manage the adverse effects of their operations on external stakeholders.The study found that the current voluntary and self-regulatory CSR model does not encourage MNCs to adopt robust CSR practices in Sierra Leone and Nigeria. Poor CSR performance is linked to companies’ failing to strictly follow their CSR policy guidelines during implementation. Country-specific factors also contribute to CSR non-compliance. Weak institutions fail to create an environment suitable for effective CSR. Contrary to the notion that MNCs serve as agents for transferring responsible business practices in developing countries, the findings suggest that MNCs are less likely to use corporate resources to mitigate the impacts of their operations in environments with weak institutions. Corporate philanthropy is used primarily to mask corporate failures related to environmental and human rights issues.The contextually informed and evidence-based approach of the study highlights the lack of conditions necessary for effective CSR at both company and domestic levels, and that efforts to promote corporate responsibility and accountability should primarily focus on external supervisory controls. The study identifies practical solutions for improving social responsibility and accountability in both countries. It advocates for formal enforcement outside the CSR framework to safeguard human rights, given the impact of violations on local populations and global peace and security. Informal enforcement mechanisms, emphasising activism (NGOs and shareholder activism) and market controls (financial and investment institutions), can also operate to influence corporate behaviour beyond regulatory boundaries. The study contributes to CSR literature in Sierra Leone and Nigeria and global policy on the governance of MNCs.