Corporate Social Responsibility and Social Capital: Journey of Community Engagement toward Community Empowerment Program in Developing Country

Abstract

The importance of social capital in analyzing economic progress and development has long been acknowledged. However, little research has actually looked into how social capital functions and what role it plays in community development initiatives. This case study explores communities’ experiences of receiving CSR funds informing a community development program. The informants of this study were the participants of the CSR program from three communities forested by three companies’ CSR, which received reward funding from the Indonesian government. By using qualitative data collection, this study interviewed five to seven people who participated in the CSR programs or approximately 16 people. This study found five ways that social capital contributes to the success of a CSR program. They are (1) increasing the likelihood that people will participate in the program; (2) lessening individual ambiguity caused by certain program implementation uncertainties; (3) fostering morale and motivation among participants; (4) promoting knowledge sharing; and (5) strengthening the sense of togetherness. In the future, additional case studies from various regions of Indonesia and other nations may examine local conditions and diversity when implementing CSR programs.