Tensions Rise Between Barrick Gold Corporation and Local Communities in Tanzania

Strategic Insights -

A Canadian mining corporation, Barrick Gold Corporation (Barrick), is facing growing tensions with local communities in the Lake Victoria Zone, Tanzania. Following recent organized protests and criticism from local communities, media, and social organizations, Barrick has attempted to address the situation by implementing global corporate social responsibility (CSR) policies. However, the situation remains unresolved, leaving Barrick's senior management questioning what more can be done. This case study, published in the Journal of Business Ethics, highlights the complexities of balancing international business capabilities with localization strategies in the context of mining operations.

Key Takeaways:

  • The case study focuses on the tensions between Barrick Gold Corporation and local communities in the Lake Victoria Zone, Tanzania, following organized protests and criticism from local communities, media, and social organizations.
  • Barrick has implemented global corporate social responsibility (CSR) policies in an attempt to strike a balance between its international business capabilities and its localization strategies.
  • Despite these efforts, tension between Barrick and the local communities within the company's zone of operations has not abated.
  • The situation has left Barrick's senior management wondering what more the company could reasonably do to resolve the situation.
  • The case study highlights the complex challenges faced by multinational corporations in balancing their business interests with the needs and expectations of local communities.
  • The study was conducted by researchers at the University of Saskatchewan, led by A.M. Newenhamkahindi, and was published in the Journal of Business Ethics.

Statistics:

  • The protests against Barrick Gold Corporation in Tanzania have been ongoing since 2008, with various reports of discontent from local communities, workers, and social organizations.
  • The case study highlights the importance of corporate social responsibility (CSR) policies in addressing the needs and expectations of local communities in the context of mining operations.
  • The Journal of Business Ethics published the study in two parts, with the second part addressing the complexities of CSR policies in Tanzania.

Sources:

  • Newenhamkahindi, A.M., et al. "A Global Mining Corporation and Local Communities in the Lake Victoria Zone: The Case of Barrick Gold Multinational in Tanzania." Journal of Business Ethics, 2011; 99(2): 253-282.
  • "Protestbarrick.net." Protest Barrick, n.d. www.protestbarrick.net/article.php?id=214.
  • "Reuters." Barod (Barod): Barrick Gold terminates Immati, reports say. Reuters, December 12, 2008.
  • "CorpWatch." What Really Happened? The Workplace, n.d.
  • "Mining Watch." Mining and Community Stories. Mining Watch, n.d.
  • "Journal of Business Ethics." Journal of Business Ethics, Springer, n.d.