Corporate social responsibility fit helps to earn the social license to operate in the mining industry

Abstract

There are many studies about CSR fit on stakeholders and its impacts. However, it is still not clear how CSR fit helps companies earn social license to operate (SLO). This research has two objectives: first, to explore the congruence between mining companies and their CSR activities in order to describe a typology of CSR fit and second, how CSR fit helps to earn SLO through pragmatic legitimacy and moral legitimacy. This qualitative analysis has been complemented by additional key informants’ insights and by the emerging literature on CSR fit, SLO, and legitimacy. The results indicate three levels of fit: the value chain, the social dimensions of competitive context, and generic social issues. Moreover, six different types of fit in the mining industry were found, focusing on the following: (1) natural resources, (2) production processes, (3) social infrastructure, (4) improve use of water, (5) social projects, and (6) social projects beyond their immediate surroundings. Additionally, CSR fits, such as value chain and the social dimensions of competitive context, help to earn SLO through pragmatic legitimacy, and CSR fits, such as generic social issues, improve use of water, social projects and social projects beyond their immediate surroundings, help to earn SLO through moral legitimacy. © 2020 Elsevier Ltd