How do Multinationals Build Social Capital? Evidence from South Africa.

Abstract

This paper looks at the self-reporting of social engagement by multinational firms in South Africa, developing previous measures of social capital to fit the unique context of the multinational firm in particular mapping the configurations of declared engagement and the firms' provision. It finds large intersectoral variation which cannot be predicted by one factor alone, and sometimes wide intrasectoral variation. In particular (and for different reasons) 'extractive' and 'industrial' sector firms traditionally criticised for their impact on communities - and 'medical' sector firms are engaged in practices conducive to the generation of social capital.Social Capital, Corporate Social Responsibility, Business Ethics, South Africa, Multinational Companies