Break-Even Point and Corporate Social Responsibility (CSR): The GÉCAMINES S.A. Paradox (2020-2024)

Abstract

This study examines the relationship between financial viability, measured by the break-even point, and Corporate Social Responsibility (CSR) commitments within GÉCAMINES S.A. over the period 2020-2024. The analysis reveals a striking paradox: the break-even point reached USD 9.27 billion in 2024, making operations structurally loss-making, while the company maintains substantial social commitments including 6 hospitals (1,320 beds), 101 schools (36,000 students) and 5,799 employees. Using the High-Low method and Ordinary Least Squares (OLS) regression, results demonstrate that the collapse of the contribution margin ratio from 38.7% to 11.8% and the tripling of fixed costs (+206%) are the real causes of this deterioration. The regression R² (0.167) statistically confirms the disconnection between costs and productive activity. CSR is not the source of the deficit; rather, the loss of operational productivity and wage inflation (+303%) threaten the sustainability of social achievements. The study demonstrates that shared value creation cannot exist without prior restoration of industrial competitiveness.