ABSTRACT
Third, the process of goal-setting, implementation, evaluation and modifi cation of CSR programs enables related stakeholders to interact in achieving their common goals, thereby enhancing the social capital. The integration of CSR into corporate structure and strategy will enable the company to embrace CSR processes into its day-to-day operations (Doppelt, 2003). The management process of goal-setting, implementation, evaluation and modifi cation of CSR programs involves the internal and external stakeholders of companies (Freeman, 2010). According to Van de Ven and Poole (1995, p. 520), such a cycle of management process is the ‘motor’ that can produce change. This management process allows the focal actor to interact with its stakeholders over time, which is a precondition of social capital development (Bourdieu, 1986). The long-term relationship allows the company, as the initiator of the CSR program, to act as the focal actor that strengthens the social network or relationships – the bonding and bridging – among the parties in the program (Szreter and Woolcock, 2004; Uphoff , 2000). Once these social relationships are developed, it is expected that the shared resources like economic capital, human capital owned by people in the network, ways of working or shared norms and trust will increase over time (Coleman, 1990; Fukuyama, 1995). The enhanced social capital would then facilitate the actors to work together towards a common purpose (Putnam, 1995, p. 67), thus proving mutually benefi cial to both the company and its related stakeholders.
