Corporate Social Responsibility and Human Capital Development in Mining Host Communities

This study examined the influence of corporate social responsibility (CSR) practices on community-level human capital development in mining host communities in Tanzania. While existing human capital research in the mining sector has largely focused on workforce preparedness and organisational productivity within mining firms, comparatively limited attention has been directed toward the role of CSR in supporting broader community capability development. Informed by Resource-Based Theory and CSR-development literature, the study conceptualised CSR as an external investment mechanism for community-level human capital formation. A quantitative cross-sectional research design was adopted using primary survey data collected from mining host communities in the Geita, Mara, and Kagera regions. Data were obtained through structured household interviews involving 332 valid respondents selected through stratified random sampling. CSR practices were modelled across four dimensions - economic, legal, ethical, and philanthropic - and analysed using Partial Least Squares Structural Equation Modelling (PLS-SEM). The findings indicate that CSR practices do not contribute uniformly to community-level human capital development. Legal, ethical, and philanthropic CSR practices demonstrated positive and statistically significant effects, whereas economic CSR practices showed a positive but statistically insignificant effect. Philanthropic CSR practices emerged as the strongest predictor, highlighting the important contribution of voluntary investments in education, vocational training, health services, youth empowerment, and community development programmes. The findings further suggest that governance-oriented, ethical, and community-focused CSR interventions contribute more effectively to strengthening local capabilities than purely economic-oriented CSR initiatives. The study contributes to CSR and extractive-industry literature by extending understanding of CSR beyond philanthropy and corporate legitimacy toward its developmental role in supporting community-level human capital formation. The findings also provide practical insights for mining companies, policymakers, and development stakeholders seeking to design capability-oriented CSR strategies that strengthen community resilience and promote sustainable development in mining host communities.