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Social Science and Humanities Journal ISSN: 2456-2653
359 Published 6 Oct 2016
DOI: 10.18535/sshj.v1.i5.120
SSHJ 2016, 5, 359-397
Case Study
Analysing The Corporate Social Responsibility Strategies By Extractive
Multinational Corporations In Cameroon
Kingsly Awang Ollong, PhD
1
and Ernestine Ndzi, PhD
2
1
Lecturer in The University of Bamenda, Cameroon, awangollong@yahoo.fr
1
Lecturer,University of Hertford, UK, e.ndzi@herts.ac.uk
ARTICLE INFO
ABSTRACT
Corresponding author
Kingsly Awang Ollong, PhD
1 Lecturer in The University of
Bamenda, Cameroon,
awangollong@yahoo.fr
Extractive industries are by their nature capital intensive, requiring both
human and technical competence. This has necessitated the domination of the
industry by Multinational Corporations from developed countries who have
access to the required financial, technical and human capital, despite the fact
that the bulk of these resources are located in the developing countries where
issues of corporate social responsibility are taken for granted by a good
number of corporations operating in the extractive sector. Against this
backdrop, profit maximization has been carried on at the expense of sustainable
development in extractive operations. The hazardous nature of extractive
industries’ operations has necessitated increased awareness in the need to
reconcile economic benefits with social and environmental challenges of the
industry. Due to criticisms from stakeholders, corporations in the extractive
sector have opted for voluntary corporate social responsibility initiatives that
this paper intends to examine. Using ALUCAM and CIMENCAM as case
studies, the paper draws on academic literature, newspaper articles, journals
and oral interviews to complement the various actions of multinational
corporations in the extractive sector. The paper concludes that despite the
diversity of defining and conceptualising CSR, there is a commonality that cuts
across board as companies make an effort to make sure the communities in
which they operate benefit from their activities, and a disparity that exists
between policies, strategies and actions that companies display in interests of
their short-term economic gains, while jeopardizing interests of both internal
and external stakeholders as well as the environment in Cameroon
Key Words: Corporate Social Responsibility, sustainable development, Multinational corporations, community
development, extractive sector, Cameroon, ALUCAM, CIMENCAM
INTRODUCTION
During much of the past three decades (1985-2015), multinational corporations (MNCs) in extractive
industry have attracted limited attention in analyses and in policy debates on issues relating to development.
To some extent, this reflected the declining importance of sector in the world economy and its shrinking
1
Lecturer in The University of Bamenda, Cameroon, awangollong@yahoo.fr
2
Lecturer,University of Hertford, UK, e.ndzi@herts.ac.uk
360 Published 6 Oct 2016
DOI: 10.18535/sshj.v1.i5.120
SSHJ 2016, 5, 359-379
share in global Foreign Direct Investment (FDI), as well as the increasing emphasis placed on
industrialization as a key aspect of the development process in Cameroon and Africa as a whole. However,
the recent and significant revival of commodity prices has led to renewed interest in the exploitation of
natural resources and in energy security. Following an extended period of low levels of international
investment in extractive industry, significant changes have swept the landscape of FDI and MNC activity in
this sector. It is therefore an opportune time to take a fresh look at this area, its implications for community
development and corporate social responsibility (CSR) during this period that the United Nations has come
up with its Sustainable Development Goals agenda in which the private sector, though characterized by the
maximization of profits, is expected to take the lead in this endeavour.
The renewed interest in the extractive industries partly reflects the structural shift that is occurring in the
relative importance of various markets in the world economy.
The boom in mineral prices has brought development issues related to the extraction of natural resources
back into spotlight. The appropriate use of revenues from their exports has enabled a number of mineral-rich
African countries to accelerate their development process. At the present juncture, given the shared objective
of countries to accelerate the progress towards meeting the Sustainable Development Goals set forth by the
United Nations, it is timely to consider – once again and with the benefit of experience– how resource
endowments can promote development (United Nations, 2015).
Such an assessment needs to take into account the potential implications of involving MNCs in the process.
During the past three decade, MNC investments in the extractive sector have evolved in several respects,
with a change in the distribution of such MNCs among home and host economies. New MNCs have
surfaced in traditional as well as emerging market economies. A number of importing countries, anxious to
secure continued access to mineral supplies, encouraged their firms to invest abroad in extractive the
industry. Today, companies headquartered in developing and transition economies account for a noticeable
share of MNC investments, including in the extractive industry (World Investment Report, 2007). In some
of these, privately owned MNCs compete directly in overseas markets with State-owned companies from the
South.
Mineral-rich developing countries see ‗new economic opportunities‘ and development prospects stemming
from higher export revenues, but they are also increasingly aware of the potential adverse effects associated
with resource extraction. Countries that allow foreign investment in their extractive industries are seeking to
strike the right bargain with the companies involved. This is particularly true for many of the world‘s
poorest economies, for which oil, gas and various metals are by far the largest sources of export and
government revenues.
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The relationship between MNCs in the extractive industry and host States has evolved as countries seek
ways of exercising control over their resources and maximizing retained gains, while at the same time
drawing on the strengths of the MNCs.
In the present decade, the bargaining power of mineral-exporting countries vis-à-vis mining MNCs is
growing as a result of the higher mineral prices. Reflecting their improved negotiating position, several
governments have recently changed their policies with respect to MNC participation with the aim of
increasing their share of the windfall revenues created. At the same time, more and more countries are
paying attention to the broader effects of resource extraction, including on the environment, human rights
and other social dimensions, with a view to taking the necessary steps for promoting sustainable
development (World Bank Institute, 2003). .
There are concerns that MNC involvement may not only fail to generate significant economic gains for a
host country, but may also have adverse environmental or social effects. On the other hand, many
developing countries may not be able to fully exploit their resources without MNCs. The question is what
various stakeholders – host countries, home countries, investors, the international community and civil
society – can do to facilitate a development-friendly outcome. A range of international initiatives of
relevance to the MNC-extractive industries development nexus have been set in motion in the past decade.
Some of them have been initiated by governments and others by civil society and industry associations.
This paper examines the evolving role of MNCs in extractive industries, and revisits the issue of how
investment and other relevant policies in this area have brought about greater development gains through the
Corporate Social Responsibility initiatives put in place by these companies in Cameroon. For a better
understanding of these initiatives, the paper will focus on the CSR policies of ALUCAM and CIMENCAM.
Against this backdrop, the paper is organized as follows: Section one presents the historical origins of corporate social
responsibility in the extractive sector; section two, from a broad perspective analyses the CSR initiatives
implemented by MNCs in the extractive industry in Cameroon focusing on the contributions of ALUCAM
and CIMENCAM. And finally, section three critiques the adverse effects of the activities of these
corporations on local communities
Data for this study was gathered from primary and secondary sources. Sources of primary data include
company reports obtained from ALUCAM and CIMENCAM and corporate interviews. Secondary data were
gathered from corporate websites of some of the companies, review of past reports on CSR activities of
some companies and literature on CSR.
CONCEPT AND HISTORICAL ORIGINS OF CSR IN THE EXTRACTIVE INDUSTRY
Defining corporate social responsibility is one of the major challenges to the field of business for both the
corporate and academic worlds. The confusion is rooted in the fact that CSR requires a multifaceted
approach, and that the term themself lacks an intrinsic definition.
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Due to the indefinite nature of CSR, in many cases it can be confused with philanthropy, yet the terms are
far from being synonyms. To illustrate, numerous companies in Cameroon have announced publicly their
adherence to the principle of responsibility, when in reality their actions are limited to two or three discrete
charitable activities. According to the Oxford English Dictionary, philanthropy is the desire to promote the
welfare of others, expressed especially by the generous donation of money to good causes. Basically, it
means giving a certain amount to charitable causes without receiving any benefit from it. Philanthropy does
help to create a positive reputation for company just as CSR does; however, the former has a much narrower
scope. The limitation of philanthropy is that it is purely charitable, without any element of either
sustainability or direct benefit to the company. CSR encompasses and goes beyond philanthropy.
Several attempts have been made to formulate a clear and precise definition of corporate social
responsibility. Various methodological approaches such as reviewing the historical development, conducting
interviews, and constructing a definition through theoretical reasoning have been used in order to establish a
better definition of CSR.
Dahlsrud (2006) has analyzed various definitions of CSR in order to identify the dimensions that define
CSR. He identified five key dimensions: environmental, social, economic, stakeholder (meaning those
parties that have a stake in how the company operates), and voluntariness (meaning the actions are not
prescribed by law). According to Dahlsrud, these were the five dimensions shared across the multiple
definitions that he analyzed.
These five basic dimensions describe CSR, but their usage is not consistent in the definitions given by
leading organizations, which sometimes omit one or several of them. For example, the definition given by
the World Business Council for Sustainable Development states, ―Corporate Social Responsibility is the
continuing commitment by business to contribute to economic development while improving the quality of
life of the workforce and their families as well as of the community and society at large‖ (World Business
Council for Sustainable Development, 2005). Obviously, this definition covers only three of the five
dimensions—stakeholder, social, and economic. All five dimensions can be found in the definition of the
European Union Green Paper: ―A concept whereby companies integrate social and environmental concerns
in their business operations and in their interaction with their stakeholders on a voluntary basis‖ (The
European Commission, 2001).
Economic, social, and environmental dimensions are objects or problems that need to be resolved. The
voluntariness dimension refers to the character of the action that should be implemented. Crane et al. (2008)
have defined CSR as ―a free choice commitment to improve community wellbeing through discretionary
business practices and contributions of corporate resources.‖ Clearly the phrase ―a free choice‖ refers to the
voluntary initiative of a company.
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CSR can also be defined based on whether external or internal responsibilities are covered. Internal
responsibilities here would refer to workplace safety, pro-viding social insurance, developing human
resources, and similar issues, while external responsibilities would refer to the impact on the community in
which the business operates.
Summarizing the above, it is clear that the concept of CSR is not limited to charitable activities. Against that
backdrop, CSR will be defined in this paper as companies‘ voluntary action to improve social welfare,
economic condition, and the environment through strategically planned projects that ensure sustainable
benefits for stakeholders and local communities.
From an overview of the literature on CSR—which has been abundantly documented and commented on—
we can outline the following series of stages: the Friedmanian conception (1962) of the maximisation of
profit alone for the benefit of shareholders broadly dominated thinking; it removed all other concerns for a
corporation. Yet in 1953, Bowen began thinking about CSR as a way of integrating the values sought by
society beyond shareholders‘ economic interests. Carroll (1979) developed the concept further by suggesting
the Triple Bottom Line. In 1985, Cochran and Wartick expanded the concept of CSR by introducing
principles of responsibility to give it structure. Finally, Wood (1991) established the links between CSR, its
implementation and its impact on corporate behaviour. Over time, a consensus defined CSR as a response to
the need to maximize a company‘s goals through profitability for the benefit of the shareholder but also for
the benefit of its other stakeholders (Freeman, 1984). Hence, the company‘s pursuit of three objectives:
honouring its obligations to stakeholders, responding to social demands arising from the socio-economic
environment, and using CSR as a management tool. However, the structuring of the concept borrows
heavily, simultaneously, and sometimes in a contradictory manner, from a variety of different schools of
thought, including ethical-religious, ecological, and both libertarian and interventionist thinking. Lastly, the
lack of a unifying paradigm is patently obvious. What is also striking from this literature review is the lack
of truly empirical work on CSR.
The background of the concept may be more or less known, at least as far as we can tell. Yet the history of
its practices remains to be told, since such practices certainly date back to before 1953 (Bowen). Some
studies do exist that call into question a number of commonly held assumptions. Environmental issues were
a precocious concern in our societies, especially with the growth of cities and the rise of industry
(Thorsheim, 2006; Schott, Luckin, Massard-Guilbaud, 2005; Tarr, 2005, 1998; Bernhardt, Massard-
Guibaud, 2002). Tarr (1998) develops a conceptual framework in which urban pollution flows from the
interaction between technology and scientific knowledge, culture and social values and finally, the
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environment, including environmental policy and its control devices. Seen in such a light, decrees, police
orders or acts of parliament) are not different to today‘s pressure groups, occurring as they often did in a
political and intellectual context in which belief in improving public hygiene, not to say in eugenics, was
growing. Ultimately, the issue of the environment became strongly tied to the question of political order
(Bernhardt, Massard-Guibaud, 2002). A healthy environment was thus considered to be a guarantee of
political order.
However, it is historical research into environmental and, to a lesser extent, social practices that interests us
here. We touch upon a few examples here, chosen for their relevance to the mining industry in Cameroon.
The aim of these scholars (Meisner Rosen, Tarr, and Uekoetter in particular) was firstly to position
environmental history in relation to the classical history of corporations. Ultimately, such a project calls into
question Chandler‘s paradigm, because issues such as industrial pollution and the ensuing conflict between
corporations and environmental movements challenge the Chandlerian vision of vertical integration. Top
corporate managements were found to be unable to ignore issues of pollution in their decision making.
As Meisner Rosen (1997, 1999) shows, managers were confronted with problems of pollution at an early
stage. Whether or not they sought to reduce pollution, they were undeniably aware of its existence. Meisner
Rosen (1997) thus highlights the link between environmental issues and the growth of R&D in the building
sector. She specifies three decisive factors in studying problems of pollution from a historical viewpoint:
technology, the role played by the market, and the role played by the State, which influences the interactions
between business, the environment and society (Meisner Rosen, 1999). Ecological protest movements also
played a major role in getting corporations to change (Meisner Rosen, 1997; Uekoetter, 1999). From these
diverse observations two main streams emerge: firstly, the issue of the environment, which is a history of
pollution; and secondly, the issue of social responsibility.
Environmental issues have been the focus of a large number of studies centring on two perspectives: the
impact of legislation, and corporate initiatives. The work of Lindmark and Bergquist (2008) analyses the
very heavy positive influence of environmental legislation on steelmakers in Sweden and Canada during the
1960s. Reaching further back in time, Meisner Rosen (2003) examines the way in which legislation worked
towards repairing the environmental damage inflicted on local communities living near heavy industry
during the first Industrial Revolution.
The second perspective has focused on the reactions of companies faced with environmental issues.
Stradling and Tarr (1999) study the strategies of the railroad industry in Chicago when it faced problems of
air pollution in the 19th century. This work ascertains that the Pennsylvania Railroad reacted to public
protests by transforming them into internal problematics designed to change behaviours. In the end, the
company electrified its railroads. Uekoetter (1999) compares the behaviours of German and American senior
managers when compelled to tackle air pollution in the period from 1880 to 1917. Noting that historical
studies on the subject converge on the idea that entrepreneurs are systematically remiss in their efforts
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towards the environment, Uekoetter instead examines how economic and financial interests can sometimes
fall in line with environmental issues. He therefore rails against the commonly held assumption that views
the industrial world as systematically being a ―negative force‖.
Meisner Rosen (1995) sets out from the same premise professing that companies act because the costs
pertaining to pollution—notably medical and economic costs (black smoke stains, damage to buildings,
machines and even clothing)—are simply too high. In response to these problems, certain industrialists
belonging to Chicago‘s high society established a ‗Society‘ that embodied values close to those of CSR.
This experiment ended in failure due, notably, to the opposition of less affluent employers as well as to
accusations of corruption that robbed the Society of all legitimacy.
Legislation and managerial actions can also complement each other. Gorman (1999) focuses on the
production of brine during the extraction process of crude oil in the southern states of the United States
between 1920 and 1970. This salt water generally ended up in fresh water reservoirs. The scholar describes
how efforts by the public authorities in close collaboration with the companies to regulate this practice led
these same companies to innovate in order to reduce the salinisation of the drinking water.
The history of social responsibility practices is less developed than environmental history. Yet some
research tackles this history from various angles without claiming to define elements of general knowledge.
Nevertheless, it suggests strong interest in issues of responsibility dating back as far as the end of the 19th
century. Ethics and religion were powerful drivers at that time. As Max Weber (1967) has shown,
Protestantism played a founding role in the emergence and propagation of capitalism. The consequence of
this was that managers took on a degree of social responsibility (the precursor of CSR). This was expressed
in their discourse on developing philanthropic activities (Acquier, Gond and Igalens, 2005). Philanthropy
epitomised the American model until the 1950s (Marinetto, 1999). It combined with the development of
management methods in big firms. Using the example of the tobacco industry pre-1939, Fitzgerald and
Hirao (2005) show how British managers associated their philanthropic actions with a certain way of
managing employees (sick-pay policies for the sick, for instance), with standardising procedures, and with
certain accounting practices.
Social and environmental accounting has even been the subject of specific research that shows that its
emergence goes back much further—to sometime between the late 19th and early 20th centuries—than is
widely believed (Maltby, 2005, 2004; Unerman, 2003; Gallhofer, Haslam, 1993; Guthrie & Parker, 1989;
Lewis, Parker & Sutcliffe, 1984; Hogner, 1982). More broadly, but with a link to both accounting and
accountability, Salomon and Thomson (2009) describe how, as far back as the mid-19th century, the
engineer Frederick Braithwaite became aware of pollution in the Wandle River between Croydon and the
Thames. They show how his ‗account‘ exposed and problematized business practices in Victorian society. In
a similar vein, Solomon and Thompson (2007) reveal the intellectual workings of environmental concerns in
their study of William Morris.
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All of these studies, of which our review here is by no means exhaustive, show that environmental and
social concerns are not a recent occurrence in corporate history. Our own case study of the extractive
industry in Cameroon also shows this to be true.
CORPORATE SOCIAL RESPONSIBILITY PROJECTS BY MULTINATION CORPORATIONS
IN CAMEROON’S EXTRACTIVE SECTOR
Very little is known about Cameroon‘s mining sector during German colonization. The Germans conducted
exploration in what is today the Far North Region of Cameroon and found promising samples of tin, bauxite,
gold, limestone, and laterite.71 However, Cameroon‘s transfer to French and English occupations created a
mining boom driven by European demand for minerals in the lead up to and during WW II. The French
created a local mining bureau which granted over 1,000 exploration and operating permits. The extraction of
Tin, Tin Oxide, Gold, and Titanium Oxide—among other minerals—gave momentum to the mining sector
which grew to represent over 20% of Cameroon‘s GDP during WW II. The mining sector was more or less
neglected during the post war period which transitioned into Cameroon‘s independence. Although artisanal
extraction of gold and diamonds continued on a small scale, industrial mining was almost nonexistent.
Cameroon continued mineral reconnaissance with the help of France‘s BRGM and began developing more
and more precise mining maps in addition to geological databases. The Ministry of Mines, with technical
and financial cooperation from France‘s BRGM, the United Nations Development Program (UNDP), and a
Canadian company, launched the most extensive mineral research program ever conducted in Cameroon
during the 1970s and 80s.72 The findings surpassed expectations and revealed significant deposits of a
variety of minerals—gold, diamonds, bauxite, uranium, iron, nickel-cobalt, and more. The presence of these
resources attracted foreign companies that had as a key objective the maximization of profits. However,
criticisms from stakeholders forced these companies in a way to voluntarily execute some community
projects in local communities through what is commonly known as corporate social responsibility.
The contribution of corporate business entities to social development in the country can be categorized into
two, namely contributions that are mandatory arising from laws enacted by the state and contributions that
are largely voluntary. Through their environmental and social impact assessments companies are advised to
mitigate adverse conditions of the communities in which they operate, contribute to education, health
cultural and infrastructural developments. In addition, companies are also being requested to voluntarily
contribute to the wellbeing of communities. The voluntary contributions of companies to social development
in Cameroon, that is, their CSR efforts, are varied, covering every sector of the Cameroonian economy.
These range from support for infrastructure development in education, health, electricity and roads to
provision of scholarships, vocational training and drugs/consumables for hospitals.
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Generally, there are two modes for delivering CSR in Cameroon; organizations delivering CSR by
themselves (internally) and / or paying third parties to do it on their behalf (externally). The internal delivery
mode requires the corporate entity to take charge of its CSR implementation. An external delivery mode
implies outsourcing of CSR implementation to third parties. In both cases, the corporate entities normally
have in-house units or divisions whose responsibilities include to strategize, plan programmes, monitor
implementation and report results. There are three internal delivery modes commonly used in Cameroon.
These are corporate philanthropy, direct implementation and use of community-based organisations or
foundations. To therefor make an appraisal of the CSR initiatives put in place by Alucam and CIMENCAM,
this section will appreciate their efforts in the labour, education, health and environmental domains to lift
communities out of poverty. We will not also hesitate to point an accusing finger to these companies in areas
they have failed to meet with their responsibility of delivering and misdirecting their resources geared
towards meeting the goals of company without taking into account the needs of the local communities.
CSR Initiative by Alucam
Created in 1957, ALUCAM was the primary aluminum producing plant that systematically applied a policy
that simultaneously integrated economic, environmental and social facets. When Pechiney began its activity
in Edéa (Cameroon), the company was not entirely a novice in matters of major investments abroad (Beau,
Danjou and David 1975; Cailluet 1995). Even though some of them were aborted, Pechiney‘s experiences in
the United States and Norway in the 1910s, and in Italy, Spain and the USSR in the inter-war period, bear
witness to this.
Yet the Edéa site (and its contemporary, Fria, in Guinea) posed new problems for Pechiney and raised new
doubts, particularly in relation to the country's colonial and postcolonial history. In French Cameroun,
Pechiney set up in unknown territory. It was the French firm‘s first international investment in Africa. It was
also the very first industrial investment of this scale in sub-Saharan Africa. Yet, it took place in a colonial
territory administered by French institutions and people.
The company‘s interest in setting up this plant was two- fold. Firstly, following World War II,
Pechiney had great difficulties in maintaining a strong position faced with competition from the North
American giants (Alcoa and Alcan). In this light, Africa represented an opportunity in terms of energy and
mining resources5. French Cameroun, notably, offered sizeable hydroelectric capacity, which was
indispensable to Pechiney after the nationalization of the French electric company Electricité de France
(EDF) in 1946. Secondly, French colonial policy during this period shifted towards the idea of a fairer
exchange that would enable the development of territories and not simply their exploitation. Incentive
policies were drawn up backed by financial aid and tax incentives provided by various national and
international institutions (such as the Ministère de la France d‘Outre-Mer and the United Nations, for
instance). The economic, social and human development of Africa as well as its industrialization was part of
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the arguments used to promote the project to build a primary aluminum smelter and several processing
facilities in Cameroun.
Despite the impact of these economic, social and human arguments in favour of implanting an aluminium
production site in Cameroun, and in Africa more broadly, the project faced various opposition movements
by its stakeholders (local small firms, anti-colonialist movements, etc.). The project‘s negotiation phase,
which brought together the company, the French and Cameroonian authorities and opponents of the scheme,
provided Pechiney with the first opportunity to draw up and put into practice a policy that combined
economic, social and, to a lesser degree, environmental dimensions of the project.
The way in which a company responds to economic, social and environmental issues is indicative of its
social responsibility. Though these issues were hardly unknown at the time, they took on a whole new
dimension in Africa and for this reason it was vital that investment in French Cameroun should be both
responsible and sustainable. We assess these issues here under three headings, by order of appearance:
economic issues, human and social issues, and environmental issues. However, we first outline the existing
literature on CSR from a historical perspective and the general historical context of other-than-profit motives
in the aluminium industry before Alucam.
From its implantation in 1957 to 2010, the economic aspect of Alucam‘s investment was to an extent
original. Beyond the financial profits expected from the project, Pechiney planned to make a contribution to
the development of Cameroon and Africa. This determination was reinforced by the decolonisation going on
at the time. French colonial policy was moving towards the idea of a fairer balance, in which it would be
possible to develop, and not just to exploit, the countries it occupied. The economic, social and human
development of Africa, as well as its industrialisation, has always been among the arguments associated with
ALUCAM, both at the time of the plant‘s creation and throughout its operation. The contribution of
ALUCAM to the social progress of Cameroon can be summarized under five headings: Contribution to
employment, revenue distribution to workers through wages; training and education; community
development and contribution to sustainable development through environmental, health and security
management.
The implication of ALUCAM on employment in Cameroon is examined at three levels: direct employment
that consists of ALUCAM employees; indirect employment that constitutes employees of ALUCAM‘s
suppliers and subcontractors and induced employment that consists of workers affected by consumer and
investment spending by workers of ALUCAM. In addition to employment, ALUCAM has equally helped to
improve on the living conditions and standards of living of the local population. The total employment
generated by the activities of ALUCAM as of December 2006 was estimated at 2,253 employees against
2,346 employees as of June 2002.The jobs generated by ALUCAM in Cameroon represent 4.51% of average
direct employment. The total cost of creating these jobs increased from 46,635 million CFA francs in 2001-
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2002 to 44 940 million CFA francs in 2006. The impact of ALUCAM on income distributed annually in
Cameroon is estimated in the same logic by adding three effects (direct, indirect and induced income
revenue).
The impact of ALUCAM on revenue, distributed annually in Cameroon was estimated in the same logic
through direct, indirect, and induced revenues. The revenues distributed were estimated on an annual
average of 20,530 billion franc CFA out of which 8702 billion CFA were attributed to direct revenue paid
by ALUCAM. Direct, indirect and induced revenues generated by the activities of ALUCAM represented an
annual average of 15.25% of the salaries paid by enterprises registered with GICAM.
In the social, it should be said that with its first real investment outside Metropolitan France, one of the
major issues faced by Pechiney was that of unknown people, who were unfamiliar with industrial culture
and the victims of strongly entrenched prejudice. Faced with this situation, Pechiney combined well-known
approaches implemented in France (Bourguinat 1989, 1997; Capello 2002; Grinberg & Hachez- Leroy 1997;
Vindt 2006) with other more innovative measures such as scientific methods of recruitment and the
―indigenisation‖ of its staff.
Professional training occupied a central stage in ALUCAM‘s quest for productivity. In the framework of the
license agreement and long term technical assistance of 20 April 1957 signed with Pechiney was gradually
modified by a number of amendments giving ALUCAM the right to control the technological and
manufacturing aspects. The professional training of engineers and workers of ALUCAM was an essential
condition for the mastery of managerial technologies and production as well as relative incremental
innovations. Thus, the average annual expenditure on professional training was estimated at 117 billion
CFA francs. The contribution of ALUCAM to education was linked to financial support/assistance given to
schools charged with the assurance of infant education in the three neighbourhoods inhabited by ALUCAM
workers: They were the Ecole des Palmes, Ecole Fromagers and Ecole Bilalang. The average annual
expenditure and assistance to education between 2001 1nd 2006 stood at 151 million FCFA.
One of Alucam's major policies in the human field was internal promotion or staff ―indigenisation‖. In the
early days, the plant's managers were exclusively European, but Alucam was already expressing the strategic
need to train African managers29. Some African workers were thus selected with the intention of making
them team leaders. The Cameroonisation of foremen began in 1962 but it was only in 1970 that Alucam
hired its first Cameroonian executive. From 1970, Alucam came under pressure to speed things up. It
became increasingly difficult to obtain work permits for expatriate workers. In 1973, Alucam started a five-
year plan aimed at halving their number, which led to the appointment of the first Cameroonian to a
managerial position in 197531. From 1980 to 1988, the number of expatriate executives dropped from 55 to
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19. At the present time, several Cameroonians are working in Alcan plants throughout the world, providing
tangible proof of the success of this Cameroonisation policy.
The contribution toward housing materialized by the construction of three residential quarters for workers:
Cite des Palmes, Cite des Fromagers and Cite des Bilalang. This affortable housing scheme put in place by
ALUCAM permitted workers to save money that was used for other purposes. The exploitation and
maintenance of these facilities cost 3,193 million between 2001 and 2006 being an annual average of 580
million CFAF(Rio Tinto, 2006).
The contribution toward diverse social work linked to the personnel of ALUCAM stood at 3270 million
CFA between 2001 and 2006 giving an annual average of 595 million CFAF. Programmes realized for the
wellbeing of local communities included the construction of a mortuary, provision of potable water, fight
against HIV-AIDS, security in the town of Edea and the construction and equipping of classrooms. The
company spent 1, 127 million FCFA 0n these projects that were realized between 2001 and 2006 (Rio Tinto,
2009).
ALUCAM had progressively placed at the centre of its investment and exploitation system a policy of
managing environmental impact that integrated health and safety problems. This policy mobilized resources,
both human and material, to minimize the effects of its activities on the environment, through the application
of ALCAN environmental directives. ALUCAM‘s services in charge of resolving problems linked to the
environment, health and safety were: the maintenance service, the laboratory hygiene, safety and
environmental.
Environmental management was axed on the mastery of the impacts emerging from 9 principal aspects that
include: pollution, energy, water, natural resources, industrial waste management, noise, odour and
vibration.
In the domain of safety, following the creation of ALUCAM in 1957, the company registered a high number
of accidents and other incidents that were mortal. The rate of accidents that was very high between 1957 and
1995 is today close to zero as demonstrated by the figure below.
Figure 1: Rates of Accidents registered at ALUCAM (1993-2006)
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Source: ALUCAM Services
As shown in the figure, the substantial elimination of accidents has always been a priority to ALUCAM and
its sub-contractor. Environmental issues were however notably absent for many years from the Alucam
project.
As far as health is concerned the performance of ALUCAM relied heavily on the good health of its worker
and the community. The primordial position of the good health of workers justified the existence and
creation of a medical centre by ALUCAM whose mission was to ensure the treatment of workers when they
took ill. Apart from the fact that this centre took care of workers and the community in providing health
services, it has also gained international reputation for the fight against HIV-AIDS. Having noticed in the
early 1990s that a good number of its workers were infected and affected by the HIV-AIDS, that affected the
productivity and performance of the company, ALUCAM decided to create an integrated programme for the
prevention and treatment of HIV-AIDS.
CSR Activities by CIMENCAM
Against the backdrop that information related to the history of the implantation of a cement company known
as CIMENCAM is difficult to come by, we will rather present in brief the history of CIMENCAM.
CIMENCAM, the local subsidiary of the French group LAFARGE, has been operating in Cameroon since
1960. The Lafarge group is represented in 62 other countries in the world and has its headquarters in Paris,
France. It has 23 plants and 149 sites in Africa and the rest of the world as of December 31, 2013. In
Cameroon, its headquarters is in the city of Douala (CIMENCAM, 2013).
As part of its sustainable development policy, Lafarge Group signed the UN Global Compact and
established a Materiality Matrix, which highlights the Group‘s priorities on its Corporate Social
Responsibility (CSR) on management issues related to the nature of their activities. The graph below
provides an idea of the general orientation of the Lafarge Group‘s sustainable development policy. In
Cameroon, CIMENCAM has four cement production sites: Figuil, Bonabéri, Nomayos and Mombo. The
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most renowned of all the projects is the Figuil project. CIMENCAM also extracts other resources like sand
from nearby river beds, commonly called ‗Mayo‘.
Data collected show that the production of pozzolan and sand has been on the increase while limestone is
relatively constant, around 185 000 tons per year. Given the growing demand for cement, CIMENCAM has
expanded its extraction sites around Figuil to other nearby localities, notably Biou South and Bidzar as
follows: 50ha for a limestone quarry in Figuil valid till 2029; 202Ha for a limestone quarry in Biou South
and 606Ha07a80Ca for a limestone quarry in Bidzar.
Figuil is a major source for cement production in Cameroon and it is marketed mainly in other parts of the
country and in neighboring countries like Chad and the Central African Republic. Despite the production of
cement in Figuil, it is paradoxical that cement is more expensive there than other major towns in the north of
Cameroon, making it inaccessible to the majority of the local population.
The Lafarge Group has an increasing business profit rate for operations in the Middle
East and Africa that stood at 7% between the first quarter of 2013 (evaluated at 838 million Euros) and the
first quarter of 2014 (evaluated at 893 million Euros). The Lafarge Group thus is in fairly good financial
health. Having operated for more than 50 years in Cameroon and particularly in Figuil, CIMENCAM is still
far from complying with the slogan of the Lafarge Group which is ―Building Better Cities‖. Until recently,
CIMENCAM enjoyed absolute monopoly in the cement market in Cameroon and also across the CEMAC
sub region.
Having presented the historical roots of Alucam and CIMENCAM in Cameroon, we will continue by
appreciating the corporate social responsibility initiatives put in place by these two companies in Cameroon
from 1960 to 2010. Their involvement in social initiatives related to labour, education and health will be
looked into on the one hand and environmental concerns like deforestation, land appropriation and waste
management will be granted special attention.
Business is assessed not just on its financial performance but also on the way it conducts its operations and
its ability to create value for all its different shareholders and stakeholders. It bears a responsibility to its
employees and its customers – and also towards communities living in the regions where their operations are
based. CIMENCAM‘s own development depends both on its environmental performance and on social
progress: the company‘s growth and competitiveness are inseparably intertwined with the quality of the
living conditions where it is present – and over the long term no economic growth is possible without
conserving the natural resources.
Sustainable development has long been at the very heart of the firm‘s strategy – partly due to the
environmental footprint of its activities, but also because CIMENCAM operates in remote locations where it
can play a major role in the socio-economic development of an entire region.
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It enshrined its environmental concerns within its core values since 1977, and this commitment has steadily
been re-affirmed over the years.
Initially the company‘s efforts were focused mainly on reducing its environmental footprint; today, its scope
of action has widened to include social and societal challenges. The Sustainability Ambitions 2020
programme, launched in 2013, reflects these wider concerns. The programme aims to contribute to the well-
being of local populations by improving social and economic living conditions for the communities in which
CIMENCAM operates. This translates into training offers, local job creation schemes and healthcare and
education programmes. It also involves supporting sustainable building by developing new sustainable
products and services and contributing to energy-efficient construction projects.
Finally, CIMENCAM aims to promote the circular economy: a pioneer in industrial ecology, the group
firmly believes in creating synergies between different industries so that one company‘s by-products become
another‘s fuels and raw materials, conserving natural resources in the process. Lafarge is involved in wider
initiatives, too: in particular as a co-founder of the Cement
Sustainability Initiative led by the World Business Council for Sustainable Development, a programme that
encourages the deployment of ambitious sustainability policies across the cement sector as a whole.
While Corporate Social Responsibility (CSR) policy is defined at company level, its implementation
involves taking specific local needs and factors into account. In Cameroon there are various factors that need
to be considered: inadequacies of the economic, medico-social and educational systems; weak
environmental regulations, and so on. In consequence there are very high expectations of any international
business locating to the region. CIMENCAM seeks to fulfill these expectations by working closely with
local communities, authorities and specialist NGOs. Through these partnerships it has been able to devise
and implement a CSR policy aligned with the priorities of its local employees and the local communities – a
policy that translates into a programme of targeted initiatives.
CIMENCAM made the health and safety of its employees and subcontractors a top priority right from the
start. The group faced rapidly the healthcare challenges posed by HIV and AIDS and responded in the early
2000s, launching prevention and treatment programmes designed for its employees and their families. More
than 500 people are receiving treatment under these programmes and prevention campaigns are conducted
on a regular basis. Building on this experience, the company has since expanded its programmes to
encompass other public healthcare issues (the fight against malaria, cardiovascular disease and diabetes).
Safety at work is one of the group‘s abiding priorities. This involves establishing consistent standards across
all sites – with respect to working at height, for example, using mobile equipment and working on electrical
installations.
Campaigns to raise awareness of potential risks were conducted at regular intervals. For example, the
company is working to reduce the number of accidents occurring during the transportation of products from
its plants – a highly complex challenge in Cameroon where many roads are poorly maintained and there is
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no real road safety culture or effective regulation. A large-scale training scheme with haulage companies in
the country has helped to keep road transport fatalities at low levels for more than five years. CIMENCAM
employees in 2010 participated in restoring the roads in a neighboring area of its grinding plant in Douala.
They used the production waste from the plant to reinforce the dirt roads, thus contributing to improve the
populations‘ living conditions.
CIMENCAM is also involved in a range of programmes that aim to improve education and professional
training levels among local populations in Cameroon. An initiative at the Douala plant, for example, offers
professional training courses in automation, electrical installation and engineering. Sessions are led by
speakers from specialized centres and former CIMENCAM employees. Apprentices receive monthly
bursary and are awarded a diploma on successful completion of the course.
Alongside these initiatives promoting healthcare, safety and education, CIMENCAM‘s CSR policy also
prioritises industrial ecology projects. Promoting complementarity between different industries (one
industry‘s ‗waste‘ becoming another‘s fuel and raw materials) is also changing the way CSR itself is
perceived. From its original aid-based approach, CSR is naturally evolving towards co-development projects
focused on energy-related issues.
The company has set itself the target of supplying its cement kilns with 50% non-fossil fuels by 2020– with
30% of the total to be from organic waste such as coffee husks, rice husks or palm kernel shells (biomass).
Underlying this target is the firm‘s aim to reduce its energy bill and reduce its ecological footprint while at
the same time helping to develop the local economic fabric. Most of the waste currently recovered by
Lafarge in the region comes from agriculture. In a context of dwindling resources and growing competition
for access to non-fossil fuels, CIMENCAM needs to secure its biomass supply and is establishing
partnerships with local farmers in order to do so.
Elsewhere it is offering growers subsidized plants, supporting the coffee industry in Uganda, for example.
Agroforestry projects are also being studied in Tanzania and Nigeria: they will make it possible to produce
high value-added agricultural and forestry products, develop subsistence farming and generate biomass.
Lafarge‘s co-development strategy is based on four guiding principles: to have no negative impact on the
growing of food crops; to ensure the conservation of soils and water resources; to preserve or enhance
biodiversity; and to share wealth and contribute to the well-being of local communities.
Whatever the specific nature of the project selected it must also generate significant benefits for the local
communities. Lafarge therefore aims to prioritise large-scale agricultural projects involving many small
farmers in order to create value for as many people as possible.
Implementing successful co-development projects calls for an in-depth understanding of local needs and
realities. Every project needs to be undertaken in close collaboration with local populations in order to
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ensure that they remain on board over the long term. Project management is another key challenge for the
group – in Uganda, for example, Lafarge is working with a total of 40,000 farmers. These complex projects
need their own dedicated management systems and funding allocation – and their business models need to
incorporate return on investment lead times of at least three to four years, in line with agricultural specific
cycles. Despite all these challenges Lafarge is dedicated to professionalising its co-development strategy,
which offers an unprecedented opportunity to enhance the competitiveness of its businesses in sub-Saharan
Africa while at the same time improving living conditions for local communities.
The emergence of these co-development projects represents a radical new stage in Lafarge‘s history in sub-
Saharan Africa, with profound impacts for the group‘s CSR practices. By their nature these projects involve
reciprocal commitments between the group, the communities and local authorities.
They are changing the way Lafarge relates to the region – from an aid-based approach to a partnership-based
approach. In this way Lafarge aims to make a net positive contribution to society and the environment,
reducing its environmental footprint while at the same time maximising the value created for all its
stakeholders.
ADVERSE EFFECTS OF ALUCAM AND CIMENCAM ACTIVITIES ON LOCAL
COMMUNITIES
Though these corporations portray themselves as good corporate citizens by voluntarily assisting local
communities to move out of the poverty margin, some of their actions have had adverse effects on
communities. These range from environmental issues, land appropriation tax mispricing and human rights
abuses. ALUCAM on her part promotes itself as a responsible and ethical employer and good neighbour, as
well as a protector of the environment. According to The Way We Work, the company‘s global code of
business conduct, the corporation‘s ―focus on sustainable development – on economic prosperity, social
wellbeing, environmental stewardship and strong governance and integrity systems – provides the
framework in which our business operates‖ (Rio Tinto, 2013). The company maintains that ―respect is
central to a harmonious workplace, where the rights of employees are upheld and where their dignity is
affirmed, free of intimidation, discrimination or coercion of any kind‖ (Rio Tinto, 2013). With regard to
human rights, the company professes to ―…set out to build enduring relationships with our neighbours that
demonstrate mutual respect, active partnership, and long term commitment.‖(RioTinto, 2012). Finally, with
regard to the environment, the company proclaims that ―excellence in environmental performance and
product stewardship is essential to our business success…Wherever possible we prevent, or else minimise,
reduce and remedy the disturbance of the environment.‖
However, the reality is that ALUCAM current operations are more in line with their past apparent collusion
with colonialism than their stated policies of respect for communities, workers and the environment. Despite
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the company‘s claims, there are countless examples of alleged human and labour rights violations and
environmental devastation perpetrated around the world over the decades. The company has constantly
been accused of violating human rights, poor treatment of its workers, environmental degradation and a host
of other abuses.
CIMENCAM on her part has adversely affected the communities in which it operates. In Fuguil, for
example, where CIMENCAM has a quarry, is a major source for cement production in Cameroon and it is
marketed mainly in other parts of the country and in neighboring countries like Chad. Despite the production
of cement in Figuil, it is paradoxical that cement is more expensive there than other major towns in the north
of Cameroon, making it inaccessible to the majority of the local population. A bag of cement in Figuil costs
between 6500 and 8000 FCFA, while in the neighboring town of Garoua, cement costs between 4500 and
5000Fcfa.
The activities of CIMENCAM have visible social and environmental impacts within Figuil. The dust clouds
emerging from the CIMENCAM factory are the cause of olfactory and visual disturbances upon arrival in
Figuil (Awang, 2014). Furthermore, the future expansion of CIMENCAM extraction sites in Figuil will
inevitably cause a reduction in land available to communities for their various activities. Having operated for
more than 50 years in Cameroon and particularly in Figuil, CIMENCAM is still far from complying with the
slogan of the Lafarge Group which is ―Building Better Cities‖.
CONCLUSION
The case of the extractive sector in general, and those of ALUCAM and CIMENCAM in particular highlight
the reality behind claims of many large companies pledging to be socially responsible and how they actually
act in the real world. Needless to say, the prime objective of any company is profit maximization.
Integrating corporate social responsibility into its core policy acts as a long-term strategic investment, such
as investing in human capital formation and building local communities.
Since most of the companies tend to forget or neglect the social responsibilities and inclined to focus on the
revenues that they expect to acquire, NGOs are faced with the responsibility of community advocacies. They
play a vital role to awaken the different businesses of their roles in the society and to follow the imposed
rules of the government, preserve the environment, and not oppress the people. Through thus awareness
creation by NGOs local communities have come to understand the responsibilities of MNCs towards them
they have pushed so hard to make sure they benefit from these corporations (Kelly, 2002).
Being socially responsible does not mean merely fulfilling legal requirements, donating to local charities
and funding a couple of philanthropic projects. It goes much beyond mere compliance with the law, and
entails a holistic approach by the management resulting in deliberate efforts to incorporate the very spirit
and rationale of CSR into its operational framework leading to effective policy formulation. It comprises
developing human capital, promoting and assisting sustainable development and taking solid measures to
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protect the environment. Only such deliberate and sincere efforts lead to building affable relations with
stakeholders, both internal and external, and helping create a healthy environment.
Unfortunately, many corporate giants do not practice what they preach. Tough competition and enormous
pressures lead them to take certain decisions that jeopardize their responsibility as a corporate citizen in the
global society. Although some MNC management CSR strategies are driven by genuine intention to be
responsible to operate more conscientiously and thus have a positive impact on the stakeholders, societies
and the environment, many MNCs‘ CSR strategies have not been proactive in implementing their policies
especially in developing countries. There is an obvious contrast in implementation of CSR by MNCs
operating in developed and developing countries despite the influence of the government, NGOs and the
media. Hence, in reality, business implementation of its CSR strategies depends on its area of operation and
the legal framework put in place. In Cameroon, corporations turn to act voluntarily towards local
communities simply because the state has not put in place any practical framework that will oblige
corporations to give back to communities.
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