Corporate environmental governance in Ghana : studies on industrial level environmental performance in manufacturing and mining

Field: Social Sciences (Social Sciences)

This study analyses corporate environmental performance in the manufacturing and mining sectors of Ghana within a framework of environmental governance. The research is premised on the fact that industry contributes to pollution, raw material depletion and natural resources use. Hence industry is equally expected to play a role in pollution reduction and minimisation of raw materials and natural resources usage. The study makes use of both quantitative and qualitative research approaches drawing on both primary and secondary sources of data. Through SWOT analysis, an evaluation of the regulatory framework governing environmental governance was carried out and new opportunities for effective environmental management espoused. In addition, the policy instruments available for environmental governance were thoroughly analysed and discussed in this research. Further, through comparative analysis the environmental initiatives of industries in the manufacturing sector were investigated on the basis of size and industry type. The study developed a model based on 22 indicators in 3 thematic areas namely (1) legal and regulatory compliance, (2) pollution control and resource conservation initiatives and (3) environmental planning and policy initiatives to evaluate corporate environmental performance in manufacturing industries. To quantify corporate environmental performance, a Likert-scale 1-5 was applied to assess performance in the 3 thematic areas mentioned. These scores were aggregated, averaged and analysed using Microsoft Excel software. A “Corporate Environmental Performance Perception (CEPPI) index” was developed to evaluate how different industries performed on key corporate environmental governance dimensions. The results among other things showed that in terms of size, Small to Medium Enterprises (SMEs) lagged behind large enterprises in their environmental performance. In terms of industry type however, “metal works” showed relatively low performance on the “CEPPI” scale. The findings were discussed and strategies to help enterprises that lag behind to improve their environmental performances were given. In addition to the above, the study further investigated the Corporate Social and Environmental responsibility (CSR) initiatives of the mining industry. Corporate social and environmental responsibility has been used as proxy measure of environmental performance by the mining industry. Among other things, the findings showed that CSR as “preached” by the mining companies was to some extent inconsistent with CSR as “perceived” by the mining communities. The evidence thus seems to suggest a lot more has to be done by the mining companies as well as local communities where these mining firms operate to achieve high environmental performance. The implications of this research in terms of what has to be done to improve environmental responsiveness of the mining companies were given. A comprehensive strategy, focussing on both voluntary codes and ‘command and control’ regulations, as well as a strategy for institutionalising environmental management culture in Ghana’s manufacturing and mining industries were provided.