Corporate citizenship: creating social capacity in developing countries

A corporation has only limited ability to create social capital through philanthropic activity, and in the context of a decline in official aid, the corporate sector is increasingly assuming a de facto developmental role. The presence of social capital assists communities in moving towards sustainable development and may contribute to the business case for corporate- community partnerships. While it is not the role of corporations to deliver social services, their ability to enhance social capital by partnering with community organisations can both contribute to development and work to their own commercial advantage. Such partnerships, whether philanthropic or commercial, will be more effective if delivered through balanced and transparent relationships with community organisations that help to create social capacity at the local level.