The Integration of CSR Practices in the Investment Decision: Evidence From Moroccan Companies in the Mining Industry

Introduction

In a rapidly-changing business world, industries as well as companies are facing new environmental, social and economic challenges that in large part determine their ability to operate and manage rapid change in a time of uncertainty, to protect their market share, maintain their level of performance, and to deliver sustainable, profitable growth without degrading environment. With these new challenges facing today’s companies come economic, social and environmental responsibilities. Moreover, tensions between financial objectives on the one hand, and those relating to the principles of Corporate Social Responsibility (CSR) on the other, have become real issues to be addressed at the highest level of organizations.

Within this context, companies are called to assess their operating methods, rethink their role and design innovative strategies by integrating, in addition to traditional financial considerations, other social, environmental and ethical considerations. Several companies, from all sectors, sizes and countries have understood that they can no longer simply aim for purely financial performance; rather they seek multidimensional performance, integrating social, societal and environmental aspects such as working conditions, human rights, ecological footprint, governance methods, etc. Profit is no longer the main objective, but a means to serve other purposes related to the common good and related to other spheres of responsible management, namely social, environmental, governance and ethics.

The chapter put focus on the link between a company strategy based on development investments and the normative or moral obligations of its stakeholders and attempts to identify practices related to the proactive integration of CSR principles in investment decisions. From a methodological standpoint, we choose the interpretivist approach. As an epistemological position, interpretativism considers that social reality is primarily the result of actions, meanings, symbolic products and social practices (Geertz, 1973). More precisely, we have opted for a triangulation method by combining two methods that allow us to draw valid conclusions, following five steps: the census of decision-makers' impressions of the expansion of their investment procedures, the formulation of research proposals, the main exploratory study, triangulation based on a longitudinal analysis and then the design of an interpretative model.

The underlying objectives of the chapter are to understand the practices of decision-makers in relation to financial, societal and environmental concerns and apprehend the appropriateness of integrating CSR practices in the investment decision. Indeed, the interest for the scientific community is to present a meaning to the practices related to the integration of the CSR principles in the investment decision and for practitioners to contribute to the formalization of the criteria related to the integration of CSR principles in the investment decision, in line with the evolution of national and international standards and regulations. Several studies have pointed out that the mining industry is paying increasing attention to the environmental and social impacts of its activities, particularly with the adoption of the concept of sustainable development (Whitmore, 2006). However, mining companies' efforts to ensure that their activities are environmentally and socially responsible are often below the aspirations of the population (Prno, 2013). The operationalization of the theoretical framework aims to understand the practices related to the integration of CSR principles in investment decision-making. Four dimensions are considered in this study: “People” by contributing to local development, “Profit” by improving reputation and “Planet” by improving the environment and preserving water and the dimension related to “Governance & Ethics”.

The chapter is organized as follows. Following the introductory section, we provide an overview of the debate on the achievement of sustainable development goals and commitment to CSR in the Moroccan mining industry and bring to the fore the importance of the integration of CSR principles in the investment decisions. After that, we present the data and methodology of the research. The chapter sets out the main empirical findings with the ideas advanced in the theoretical literature review. And lastly, the chapter summarizes the main conclusions drawn from the exploratory study and puts into perspective further research directions.