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Wednesday, 20. June 2012 - 00:14 Uhr

Development of Social Capital through Corporate Social Responsibility

When a business operates, especially the industrial one, it is also likely to adversely impact the physical, social or  economic environment around its operation and the entire supply chain of  input resources to final destination of goods and services produced despite bringing economic prosperity to firm and nation. And a section of society may get adversely affected, though different strata of society may be affected in varying degree and economically disadvantaged in society are likely to suffer more. These business makes profit at the cost of some segment of society and the relation between business and society gets modeled on prey and predator theory. If this relation goes beyond a critical level, it is likely that prey will get extinct and so in turn predator also that survive on prey. Therefore, it is imperative that for a sustained business,  adequately physically, economically, socially  and environmentally healthy society exist. 
Recognizing their role and responsibility in this process, some of the business firms started  some charity and philanthropy work as  corporate social responsibility (CRS) just to display their big heart and concern for society. However, a very few took initiative to build social capital that could build up the capacity of society to improve its material, environmental and social well being. There could be one reason for the same that business firms are not having adequate capacity at its CRS Department to carry out innovative CRS project that ends in doing some charity sort of works instead of building social capital.
Therefore, the business firms should have adequate capacity of its CRS department or it should take up the social enterprise through a non governmental organization (NGO) or at least can take consultancy of an reputed NGO. Otherwise, most of the CRS projects undertaken would provide only lip service. However, cautious needs to be applied while selecting the NGO as large numbers of night fly operators are there in the field
As far as demand for social capital is concerned, it is always there especially in developing and least developed countries. Business enterprises need to identify them and need to devise innovative social enterprise that could built social capital so that both business and society could prosper together


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