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How do Multinationals Build Social Capital? Evidence from South Africa

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  • I Jones
  • C.M Nyland
  • M.G Pollitt

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.

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File URL: http://www.cbr.cam.ac.uk/pdf/WP220.pdf
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Bibliographic Info

Paper provided by ESRC Centre for Business Research in its series ESRC Centre for Business Research - Working Papers with number wp220.

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Date of creation: Dec 2001
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Handle: RePEc:cbr:cbrwps:wp220

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Web page: http://www.cbr.cam.ac.uk/

Related research

Keywords: Social Capital; Corporate Social Responsibility; Business Ethics; South Africa; Multinational Companies;

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References

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  1. Narayan, Deepa & Pritchett, Lant, 1997. "Cents and sociability : household income and social capital in rural Tanzania," Policy Research Working Paper Series 1796, The World Bank.
  2. Campbell, Catherine & Williams, Brian, 1999. "Beyond the biomedical and behavioural: towards an integrated approach to HIV prevention in the Southern African mining industry," Social Science & Medicine, Elsevier, vol. 48(11), pages 1625-1639, June.
  3. John F. Helliwell & Robert D. Putnam, 1995. "Economic Growth and Social Capital in Italy," Eastern Economic Journal, Eastern Economic Association, vol. 21(3), pages 295-307, Summer.
  4. Knack, Stephen & Keefer, Philip, 1997. "Does Social Capital Have an Economic Payoff? A Cross-Country Investigation," The Quarterly Journal of Economics, MIT Press, vol. 112(4), pages 1251-88, November.
  5. La Ferrara, Eliana, 2000. "Inequality And Group Participation: Theory And Evidence From Rural Tanzania," CEPR Discussion Papers 2433, C.E.P.R. Discussion Papers.
  6. Grootaert, Christiaan, 1999. "Social capital, houshold welfare, and poverty in Indonesia," Policy Research Working Paper Series 2148, The World Bank.
  7. Paul Collier & Jan Willem Gunning, 1997. "Explaining African economic performance," CSAE Working Paper Series 1997-02.2, Centre for the Study of African Economies, University of Oxford.
  8. La Porta, Rafael, et al, 1997. "Trust in Large Organizations," American Economic Review, American Economic Association, vol. 87(2), pages 333-38, May.
  9. Glenn C. Loury, 1976. "A Dynamic Theory of Racial Income Differences," Discussion Papers 225, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
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Cited by:
  1. Ian Jones & Michael Pollitt & David Bek, 2006. "Multinationals in their communities: A social capital approach to corporate citizenship projects," ESRC Centre for Business Research - Working Papers wp337, ESRC Centre for Business Research.

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