Communicating Corporate Social Responsibility:

Perspectives and Practice

Communicating, Connecting and Developing Social Capital for Organisations and their
Communities: Benefits for Socially Responsive Organisations
Joy Chia
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 COMMUNICATING, CONNECTING
AND DEVELOPING SOCIAL
Downloaded by The University of British Columbia Library At 01:16 31 January 2016 (PT)

CAPITAL FOR ORGANISATIONS

AND THEIR COMMUNITIES:
BENEFITS FOR SOCIALLY
RESPONSIVE ORGANISATIONS

Joy Chia

ABSTRACT

Purpose To understand the communication important to social capital

development and community engagement in regional communities and its
relevance to corporate social responsibility (CSR).
Methodology/approach Qualitative approach including focus
groups and semi-structured interviews. Case studies of three regional
Australian and Canadian communities at different stages of community
development.

Communicating Corporate Social Responsibility: Perspectives and Practice

Critical Studies on Corporate Responsibility, Governance and Sustainability, Volume 6, 41 58
Copyright r 2014 by Emerald Group Publishing Limited
All rights of reproduction in any form reserved
ISSN: 2043-9059/doi:10.1108/S2043-9059(2014)0000006002
41
 42 JOY CHIA

Findings Communication, both traditional and in new media

forms such as social media, was important to social capital development
provided that it was diverse, appropriate to community needs and
extended its reach to community members to include those who were
marginalised. Access and skill issues affected some community members’
engagement when they attempted to use social media, although the
increasing use of social media as a connector was observed. These find-
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ings have implications for organisations’ CSR, as organisations can be

responsive to their communities if they also communicate and engage
with them for mutual benefit.
Research limitations/implications A pilot, exploratory study that
highlighted the varied context of community social capital and the diver-
sity of communication that engages and includes community members;
ongoing research is in progress to gain understanding of regional commu-
nities’ connections and networks, and how to strengthen them and how
stakeholders are identified and supported.
Practical implications The study indicated that it is important
to explore all communication avenues and extend the reach and partici-
pation of community communication through diverse channels including
social media. The research provided some good examples where
organisations support and encourage community social capital develop-
ment this underpins the success of other programmes such as CSR
programmes.
Social implications To develop sound networks and relationships
where organisations and their communities develop trust, deal with issues
and collaboratively problem solve. Social capital develops and supports
other forms of capital without it organisations may be too focused on
‘doing good’ rather than ‘being good’.
Originality/value This chapter provides insight into communication
layering and the context of social capital development for effective com-
munication in regional communities. Social responsiveness is possible
when organisations understand their community; this chapter puts
forward the notion that organisations are members of their communities
so that their social capital is important to all they do, including their
planning and delivery of CSR programmes.
Keywords: Social capital; community; regional; social responsibility;
communication; engagement
 Developing Social Capital for Socially Responsive Organisations 43

Corporate social responsibility (CSR) is part of social responsiveness and

corporation’s responsibility to society (Caroll, 2008); the premise of this
chapter is that social capital augments and provides another dimension
to the capacity of organisations, not only to respond to society, but also
to successfully engage with their communities. Communication critical to
the development of social capital might also be important to organisations’
CSR programmes one can support the other. Indeed a lack of social
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capital that reflects poor communication with relational partners could

impede organisations’ (CSR) initiatives as relationships will not be in place
that develops trust and support for the plans of organisations. This is espe-
cially so as De-Bussy (2012) points to the lack of trust that the public has
in businesses about their CSR initiatives even though organisations are
functioning in an environment where they are expected to act responsibly
as good corporate citizens. Some scholars (Benn, Todd, & Pendleton, 2010)
contend that CSR is only emphasised to protect organisations’ reputations;
instead incorporating public relations practitioners in strategic, proactive
planning would better serve all stakeholders, ‘rather than a reactive damage
control’ (p. 406) approach. These scholars observed that there was some
unease in the role that public relations practitioners played when they
are not actively engaged in the planning and development of CSR pro-
grammes. In this chapter, having a closer look at social capital and the
relational context of organisations, their stakeholders and networks gives
us some insights into the ways that communication professionals can legiti-
mise their role and become key players that engage communities and
become socially responsive to them.
This chapter’s focus on social capital develops understanding of the key
components of social capital that include connections between individuals,
or between organisations and communities, and the relationships and social
networks that are important to all partners. Meaningful relationships
‘foster reciprocity, but also facilitate coordination and communication and
amplify information about the trustworthiness of individuals and organisa-
tions; that is their reputation’ (Luoma-aho, 2009, p. 234). When organisa-
tions take time to get to know their communities, work with them and
establish beneficial partnerships, they open up opportunities for ongoing
exchange, support and development. The very nature of social capital is
that it is social; Coleman (1988) and Putnam (1995) emphasise that there
are benefits to society that social capital brings; the premise of Putnam’s
stance is that social capital includes ‘features of social life networks,
norms and trust that enable participants to act together more effectively
to pursue shared objectives’ (Putnam, 1995, p. 664). This increases capacity
 44 JOY CHIA

for organisations, for example, to engage with their communities and colla-
borate for mutual benefit. In this chapter a focus on regional communities
suggests that ‘real partnerships through shared community problem sol-
ving’, (Johnston, 2010, p. 218) or shared community planning and capacity
building are critical to the way organisations relate to their communities.
Managing day-to-day business, developing social capital and CSR initia-
tives are becoming increasingly important to organisations (Cornelissen,
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2006; Crane, Matten, & Spence, 2008; Fisher & Lovell, 2006; L’Etang,
2006). Caroll posits that ‘total corporate social responsibility of business
entails the simultaneous fulfilment of the firm’s economic, legal, ethical,
philanthropic responsibilities’ (Caroll, 2008, p. 95). This may be so but
organisations exist and function within communities and their social capi-
tal, or their relationships and networks will have an impact on the way
their businesses and their philanthropic responses are understood, accepted
and developed by their communities. The view of some scholars (Stark &
Kruckeberg, 2003) that the key stakeholder for all organisations is society
resonates with a social capital focus on community and organisations that
is central to this chapter.

SOCIAL CAPITAL: SOME OF THE CHALLENGES FOR

ORGANISATIONS

Social capital is closely aligned with the concepts of CSR where organisa-
tions and society have the potential to prosper for the common good
(Falck & Heblich, 2007). However, due to the intangible nature of social
capital it can decline when its benefits are not recognised, or understood.
Social capital can be locked into micro-cells and become exclusive to certain
groups, or affiliations in organisations. An example of this occurred in the
corporate organisation Enron (Lyon, 2008) where conflict and ambiguity
made internal relationships strained, and relational exchanges were part of
internal, exclusive networks. From Putnam’s (1995) perspective, internal,
bonding capital had broken down and, instead, exclusivity stifled relational
development and kept many employees ‘in the dark’. The lack of communi-
cation with all parties, internal or external (Putnam refers to the latter
as bridging capital), resulted in a decline in social and economic capital,
with dire consequences for a collapsing Enron. There were many other
factors that led to Enron’s demise, but some scholars (Lattimore, Baskin,
Heiman, & Toth, 2012) posit that it was critical to make communication
 Developing Social Capital for Socially Responsive Organisations 45

transparent, and it was also important not to present and communicate

inflated optimism about the organisation’s position and growth. The impor-
tance of open communication is apparent in the way organisations, such as
Enron, functioned; knowing how to communicate and to do so effectively
plays a role in social capital development. The relational context so impor-
tant to social capital growth is contingent on communication that builds
relationships, nurtures internal and external networks and makes them
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viable.
The notion of social capital as relational is contentious though complex
and multi-dimensional (Hazleton & Kennan, 2000) with researchers across
a wide field beginning to explore what it means (Batt, 2008). A focus on
social capital constantly reflects broader capital contexts, as Bourdieu
(cited in Edwards, 2008) puts forward in his explication of four types of
capital that contribute to organisational status: financial capital; social
capital; cultural capital that includes educational and cultural perspectives;
symbolic capital. Social capital has the potential for economic benefits
for organisations and it contributes to other forms of capital such as
intellectual capital (Nahapiet & Ghoshal, 1998). In this chapter the wider
brief that frames organisations’ capital development is acknowledged
as the close relationship of social capital and social responsiveness is
highlighted.
Coleman’s (1988) viewpoint that social capital encompasses the macro
and micro levels where benefits are sometimes for society as a whole
(macro), but they can also be for individuals (micro), depicts the context of
social capital and how it functions. I would argue that there is a constant
exchange between societal and individual social capital benefits and chal-
lenges, as networks and relationships will always have some individual
value even though they may, primarily, be social. However, scholars such
as Putnam (1993) argue that social capital is declining because of the focus
on individualism, rather than the community, so that the propensity for
civic engagement is no longer as apparent, as in previous decades. Twenty
five years of declining confidence related to the ‘erosion of social capital’
(Pharr, Putnam, & Dalton, 2000, p. 22), observed particularly in demo-
cratic societies, suggests to these scholars that trust in government has also
declined. Pharr, Putnam, Dalton posit that social capital decline is a symp-
tom of governments performing inadequately and, conversely, when social
capital grows good government is likely to be in place. These are important
considerations for the socially responsive organisations; if social capital is
declining organisations may find that programmes that respond to commu-
nity needs may not be understood or appreciated and if trust is not part of
 46 JOY CHIA

an organisation’s relationship with its stakeholders or community, it is

likely that distrust is apparent (De-Bussy, 2012).
For scholars such as Lin (2000) and Ferragina (2010) the inequality of
social capital is evident, as opportunities to connect and form beneficial
relationships are contingent on the access to networks. Some community
members may not be part of networks, or they may be disadvantaged and
‘out of the communication loop’ in their community, or even in their orga-
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nisation, as was evident in a Canadian study of Credit Union employees

(Chia & Peters, 2008). In this study employees indicated that they were
asked to participate in CSR programmes but they were not fully conversant
with policies and plans relating to these initiatives. It was important that
Credit Union employees participated in the decision making about commu-
nity engagement programmes, and their corporate response to their stake-
holders. They were the key players who acted as catalysts to set in motion
bridging capital (Putnam, 1995) with their communities. When the Credit
Union came to terms with the breakdown in internal communication con-
cerning their CSR plans, employees met and made many changes to CSR
programmes. Stakeholders were identified and community needs reassessed.
This study indicated how closely aligned the developments of social capital
and CSR are one impacts the other.
Communication to engage, or to be able to involve community mem-
bers, makes the planning of any community programmes a partnership for
mutual benefit reciprocity is important to long-term relationships and
successful networks. To understand what this means, as we move into the
study reported here, community includes geographically defined groups in
three regions that are progressing at different stages in their social capital
development they provide some important perspectives about the way
organisations can partner and in a sense ‘become active members of their
communities’.

RESEARCH METHODOLOGY: QUALITATIVE

RESEARCH UNCOVERING COMMUNICATION FOR
SOCIAL CAPITAL GROWTH

The three regional communities central to the study reported here were
Roxby Downs, an isolated mining town with a population of 4,500,
purpose-built in 1987 1988 to service Olympic Dam, the world’s largest
uranium deposit, fourth largest copper deposit and fifth largest gold
 Developing Social Capital for Socially Responsive Organisations 47

deposit managed by BHP-Billiton the main mining organisation; Mount

Gambier with a population of 24,000, a centre for farming, timber and
tourism and the regional centre for the South-East region of South
Australia, and the region surrounding the city of Victoria, Canada, situated
on Vancouver Island thriving on tourism and rich in produce and farming.
The three regions were chosen as they reflected different stages of commu-
nity development that can provide some important insights to the varied
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ways that social capital might grow or be hindered. Roxby Downs had a
newly formed community centre with a huge mining corporation directly
involved in supporting and sustaining the community; Mt Gambier had
many established organisations and community programmes, but the regio-
nal town was going through a time of significant change with many busi-
nesses closing and the community needing to think afresh about its future.
The Canadian community was thriving with a strong community engage-
ment model in place and with many community programmes established,
especially by the Credit Unions in that region. The precursor to this
research (Chia & Peters, 2008) pointed to the Canadian community engage-
ment models as benchmarks for the way community engagement is prac-
tised effectively and collaboratively. The research focus Building capacity
for community centred solutions; the role of public relations practitioners and
journalists in promoting regional sustainability and social capital was a
communication focus.
The research questions addressed:
• The role of public relations and media in social capital development and
how community messages are communicated and understood
• The way that communication through traditional and new media, such as
social media, was facilitating, or hampering social capital development
• The context of social capital and what it means to regional communities
and the organisations that support and engage with community members
and key stakeholders
In the Australian Canadian study the aim was to look beyond the
‘habitual frames’ (Schirato, Buettner, Jutel, & Stahl, 2010, p. 33) of social
capital with a view to emphasise the sense making and reflexivity that
Bourdieu and Wacquant (1992) contend are important to understanding
what social capital is. A qualitative study was deemed the most appropriate
to gain perspective about the subjective components that make up social
capital relationships, the communication that is taking place to develop
these relationships, and the networks that might evolve from the relational
paradigm. As Flick (2006, p. 75) suggests, ‘subjects with their views on a
 48 JOY CHIA

certain phenomenon construe a part of their reality so that the ‘verstehen’

or the understanding becomes part of the ‘epistemological principle’ of
qualitative research’. The qualitative methods such as interviews allowed
the researcher to probe and ask about feelings, meanings and viewpoints,
thereby facilitating construction of the reality and meaning of the topic of
research (Minichiello, Aroni, & Hays, 2008).
The pilot study, in an area of research that is evolving, needed to take
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into account Edmondson and Mcmanus’s (2007) view that it is important

to be rigorous and ensure that methodology is suitable for the study. No
doubt the qualitative study worked well, and through snow-ball sampling
one interviewee suggested another person for an interview; this tended
to extend the parameters of the research and made them quite broad at
times. This is the dilemma, and, also, the opportunity for the qualitative
researcher as the initial purposive sampling (Stacks, 2011) resulting from
briefings with representatives of the Roxby Downs Community Board,
Mount Gambier’s Regional Centre, and the Office of Community Based
research, Canada was useful, but the suggested sample did not include
some of key players in community social development. It became apparent
that an initial qualitative study needed to include key community and
business leaders and media specialists who were active in civic engagement
and development; the snowball sampling method was therefore required.
The ‘researches’ identity, values and beliefs play a role in the production
and analysis of qualitative data’ (Denscombe, 2003, p. 268) as the researcher
found that the communication perspective was viewed through the lens of
the researcher’s speciality and expertise public relations. In this chapter the
public relations lens is core to the discussion, but reflections on the wider
media context are also included. For a focus on regional media, that was
part of the journalist’s perspective (see Richards, 2013).
Interviews were conducted in the field as well as in organisations; visits
were made to a community television station, to a community centre and
to community research offices. These methods (Lindlof & Taylor, 2011,
p. 171) facilitated exploratory research and continual testing of ideas, and
adaptation as findings pointed to aspects of social capital development that
were changing; social media, for example, were having an impact on com-
munication (to be discussed later).
The primary methods used semi-structured interviews (one to two
hours each) and focus groups (two hours) were important as participants’
gave an account in their words of their experiences. Focus groups were
important to gain an overall understanding of social capital, and one-on-
one interviews allowed in-depth exploration of the specifics of the research
 Developing Social Capital for Socially Responsive Organisations 49

questions. Four interviews followed up on the focus group of 8 Roxby

Downs participants, 11 Mount Gambier participants (2 focus groups of
four members each, with 3 separate interviews of different partipants, and
follow-up interviews with 4 of the focus group members), and 12 Canadian
interviews were transcribed and coded (open coding) according to the
dominant themes that emerged. Through axial coding, the frames or
sub-headings of the broader themes were identified (Weerakkody, 2009).
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The manual coding was conducted by each member of the research team
(the team also included two journalists), compared and discussed, and
responses were clustered according to:
• Responses that supported and encouraged community and social capital
development;
• Responses that focused on the role of, and contribution to, social capital
in its various forms;
• Responses related to community challenges and poor communication,
and communication that did not include some stakeholders;
• Responses that pointed to social media, regional media and other forms
of communication important to public relations and communication
exchange, connectedness and relationship building that affect social
capital development.
Field notes were prepared in the additional interviews with community
project staff and in the meetings with a regional mayor, and other support
staff they proved invaluable to establish understanding about community
engagement and context.
The Roxby Downs focus group participants included representatives of
the local newspaper (The Monitor) and community radio station (RoxFM)
as well as the local council and local businesses, the local community board
and the regional development authority. Telephone interviews were also
conducted with representatives of the mining company BHP-Billiton,
Olympic Dam and local media, as they support the Roxby Downs commu-
nity. Mt Gambier participants included community coordinators and
managers of the two local councils that govern the city and its immediate
environs, including those with responsibilities in the areas of communi-
cation, community and sustainability, as well as local media. Separate
interviews were conducted with senior council staff, local journalists and
media directors, a local university director, sustainability action group
members and business owner who were actively involved in community
support, policy development, communication management and media
liaison.
 50 JOY CHIA

Canadian interviews included members of the Office of Community

Based Research at the University of Victoria as well as representatives with
community responsibilities in corporate organisations, Credit Unions,
community council, local media and communication managers, and a
micro-lending society, a social media specialist, university communication
manager, community radio staff, and a public relations director commu-
nity activist. The model of community practice was found to be benchmark-
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ing community practice from other Canadian communities, suggested in

previous research conducted by the author (Chia & Peters, 2008).

LAYERS OF COMMUNICATION: A SOCIAL CAPITAL

PERSPECTIVE
The focus groups that took place in the two Australian communities indi-
cated that social capital was a term that research participants partly under-
stood, but did not fully encapsulate. The follow-up interviews became very
important to establish each regional community’s social capital perspective.
It was difficult to make sense of the varied forms of communication that
developed networks and relationships. One of the early interviews shed
light on this aspect as the respondent, a Mt Gambier communication and
community manager, indicated that she communicates and manages com-
munication in her community action group according to the respective geo-
graphic grouping of her members, the demographics of her group, the stage
of her community programmes, and the needs of her respective group. She
developed strong relationships with core community members and trusted
them to support her, which was her social capital. To extend that capital
she communicated with the wider community through newsletters, commu-
nity meetings and editorials in regional newspapers. Similar accounts and
narratives about meaningful relationships and active networks were told
during interviews with Australian and Canadian respondents, but these
accounts, initially, reflected only one layer of a multi-layered communica-
tion network. Intertwined with newsletters from action groups that focused
on local news specific to smaller regional locations was a vibrant communi-
cation network where organisations such as Credit Unions, local businesses
and councils responded to their communities and engaged with them.
Traditional forms of communication such as newsletters and face-to-face
meetings had a place, but communication was even more effective when
new forms of media such as Facebook supported traditional forms or
became a primary way to communicate.
 Developing Social Capital for Socially Responsive Organisations 51

Community members were communicating with key community organi-

sations such as the mining corporation in Roxby Downs and the Credit
Unions in Canada, through Facebook, because they were comfortable in
this social media forum. Facebook communication began to connect these
organisations to many new community members who brought fresh and
innovative ideas and suggestions about community projects, and they also
contested some of their community plans. In the mining town, for example,
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there was considerable discussion about the needs of the youth in the town,
and many youth would not speak about these needs in face-to-face forums,
or even attend such a forum, but social media provided an avenue for them
to put forward their points of view. The community learnt that young
people were bored and felt very isolated, so the mining corporation was
challenged to reconsider its community programmes and its response to the
mining town’s needs. This is especially relevant to this discussion on CSR
as the mining corporation was involved in giving back to the community,
but it also needed to dialogue and understand the needs of the community.
Social media provided a forum for exchange facilitating the mining cor-
poration’s engagement with key stakeholders, as a better understanding
emerged about how best to work with the community.
Similarly, Canadian organisations such as Credit Unions became
involved with their communities when they communicated with a range of
individuals and groups online, and then planned face-to-face discussions
with them. They were able to set up support programmes, fund community
events and take a long-term interest in setting up education programmes
for low-income families. These examples, from Canadian Credit Unions,
closely linked social capital growth to socially responsible programme
management. Importantly, the communication with the community in its
various forms, newsletters, websites, Facebook, regional media articles and
face-to-face forums, gave them understanding about the realities of their
communities’ needs. Their social capital, especially through their networks,
contributed to valuable community knowledge assisting them to make
good business decisions about how best to assist their communities and
work with them. When relationships were established between organisa-
tions and their communities they also began to trust each other.

DIVERSE COMMUNICATION AND ITS CHALLENGES

The Canadian and Australian regional communities varied in their stages

of development; Roxby Downs community was constantly changing; the
 52 JOY CHIA

Mt Gambier region was well established, but increasingly being challenged

in terms of its viability; and the Canadian regional community forged
ahead with business and community working together. Each of the commu-
nities was experiencing the need to embrace new forms of communication
and to extend the reach of their communities. The place of social media
and its possible role in connecting and opening up communication
was recognised by the three communities, but each also experienced
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challenges that this form of communication brings. Canadian community

coordinators and public relations practitioners gave some valuable insights
into the way organisations respond to challenges and opportunities. They
recognised that there were barriers to communication for the marginalised
and disadvantaged in the community; there were two key issues access
to new technology and the ability to communicate effectively through
social media and online forums. Once these issues were identified, organisa-
tions such as Credit Unions set up support programmes for young people
that included assistance with writing, especially online, and being able use
social media to seek employment. Regional youth wanted to communicate
their needs, share and collaborate with other young people and leaders
in the community, and develop career plans. The assumption that social
media was readily available to them and connecting all of them to other
community members was not evident in this community. The Credit Union
found that their key consideration was to understand how best they
could assist young disadvantaged youth by providing targeted assistance
and simultaneously developing strong relationships with the youth
they were supporting. This example indicates how important it is that
organisations take time to build relationships and become part of the
programmes they fund social capital is embedded in organisation’s CSR
initiatives.
Mt Gambier regional community coordinators and public relations
practitioners in the not-for-profit sector and local government, and local
business leaders, together used a range of communication: Facebook, email,
letter drops and telephone calls to reach out to newcomers and refugees
with the aim to hold special events to welcome those new to their commu-
nities. These programmes also required attention to culturally acceptable
ways to communicate through elders and community leaders. Through a
sensitive, yet diverse communication approach special events were well
attended, many community members attended events for the first time,
and newcomers met others new to the community. Being responsive to the
community required a combined effort of many community players that
was also culturally sensitive. Regional businesses found that they became
 Developing Social Capital for Socially Responsive Organisations 53

involved in the programmes they supported as this developed trust and

engendered a ‘sense of care’ for the community.
In each of the regions, the study revealed that leaders and champions, or
those who took a special interest in community development, were critical
for relationships to thrive. They were the people who worked with their
communities, sourced funds that supplemented CSR initiatives and ensured
that the community could afford to do what it planned to do. These leaders
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were key stakeholders (e.g. mayors, leading councillors, general practi-

tioners) who instilled confidence in their communities and built the trust
essential to social capital development. They had the interest of the com-
munity as a basis for their actions and they were often the channel to put
forward strong points of view, areas of need and interest from other com-
munity members. They also liaised with businesses and corporations to
identify community projects. These community leaders were at the pointed
end of communication often reframing, giving media interviews and taking
the views of the community to wider forums. Ewing (2007) suggests that
stakeholders expect that organisations go beyond corporate giving so that
they tackle social problems and they use their resources strategically;
the study reported here indicates that organisations cannot achieve this
without the support of community leaders, and trusted established
networks. A social capital perspective, underpinned by strong community
leadership, is indicative of a deeper, lasting and relational perspective than
may be apparent in a traditional corporate response where one-way giving
can be more about self-interest than mutual benefit (L’Etang, 2006).

COMMUNICATION FOR SOCIAL CAPITAL GROWTH,

UNDERPINNING CSR INITIATIVES

The research reported here explored communication forms for regional

communities and ways that social capital develops and paves the way for
organisations to respond to and support their communities. The study of
three regional communities indicated that social capital was not in decline
as Putnam (1995) suggests, rather the sense of community was being
strengthened as social media were extending the reach of communication
to, and with communities.
For some scholars (Sander & Putnam, 2010) social media continues to
be viewed with caution in terms of the role virtual ties might play in rela-
tionship development and networking. In this chapter the study highlighted
 54 JOY CHIA

an increasing role for social media to engage community members in social

capital initiatives. It has the same potential for CSR initiatives, but social
media also provides a forum where organisations will be challenged and
CSR initiatives questioned. As such some scholars (Kane, Fichman,
Gallaugher, & Glaser, 2009) suggest that emerging media is moving at such
a rapid pace that organisations will need to be constructive as they commu-
nicate with their communities and stakeholders through social media. They
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posit that organisations act as first responders, find common ground with
community leaders and proactively use this medium to leverage community
relations. This was especially evident in the Roxby Downs mining corpora-
tion that worked hard to establish relationships with the community using
both traditional and social media, so that their CSR programmes could
then be effective. When they initially attempted to give money and support
programmes they considered important, they were often criticised for ‘look-
ing good’ but not really caring about the community. As Ewing (2007)
asserts, attempts to look good and to ‘spin’ a story will not be tolerated by
stakeholders or community members, rather good news stories about CSR
programmes, whether they appear on traditional or social media, are
important. Ewing (2007, p. 368) posits that ‘actions speak louder than
words when communicating corporate responsibility’ as the most effective
communications are ‘those that address the concerns of stakeholders’.
Further, when trust has been established the parties that are in relation-
ships are also more likely to understand each other’s needs and respond
appropriately to them. Trust, emphasised by Putnam (1995) and Coleman
(1988), is a feature and a symbol that social capital is contributing to orga-
nisations’ overall capital. Putnam’s (1995) view that the sense of commu-
nity is declining, and social capital is being depleted can be allayed when
networks are opened up through social media and through diverse commu-
nication exchange that establishes meaningful relationships.
In the study reported here social capital was the catalyst for many
things: strong community relationships between organisations such as
Credit Unions, mining corporations and their communities, successful
events, sharing resources and developing a better understanding of commu-
nity needs. Appropriate, open, culturally respectful and diverse communi-
cation was shown to leverage social engagement and trust between
community members and the organisations that were important to them.
The notion that social capital is embedded in organisations, as they
work with their communities, establishes a basis for engagement, collabora-
tion and a way to deal with community problems and issues. The three
regional communities, often through public relations practitioners and
 Developing Social Capital for Socially Responsive Organisations 55

community coordinators, and also through excellent leadership and busi-

ness support, encouraged community participation in the plans of organisa-
tions that were important to them. In this way social capital cannot be
taken for granted, rather nurturing and realising its benefit to economic
capital, and other forms of capital (Cunningham, 2002; Luoma-aho, 2009),
become an important consideration. Community leaders also play role as
they exemplify the ‘practices of social capital leaders’ (McCallum &
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O’Connell, 2008, p. 156) and they are also aware of the competitive advan-
tage of developing social capital that, according to Cornelissen (2006), is
also central to organisations’ and communities’ sustainability. Cornelissen
suggests that there is a ‘need for business to deliver wider societal value
beyond shareholder and market value alone’ (p. 63): this is the premise of
much of the discussion on social capital in this chapter; social capital
leverages CSR, complements and augments it.

CONCLUSION
This chapter emphasises that diverse communication is required that facili-
tates an understanding of the needs of various groups and stakeholders.
Relationships develop through different communication channels to estab-
lish trust in the organisations that support communities. The three regional
communities reported here were making progress as public relations practi-
tioners, community leaders and concerned businesses acted as the bridge
that connected, or set up communication to inform, connect and engage
their communities. This presents a way forward to also prepare commu-
nities for programmes that organisations want to fund and support. The
study here dovetails into the concepts and context of CSR as scholars
(Cornelissen, 2006, Doorley & Garcia, 2007) indicate that stakeholders
want and expect organisations to be actively engaged in responding to soci-
etal needs not just giving back to society. The study of three regional
communities indicates that established social capital through networks and
reciprocal relationships underpins sound CSR programmes that make a
difference to their communities and strengthens them.
Social capital is intangible and constantly changing and the role of
communication and communication professionals who work alongside
other community members and leaders needs further research and under-
standing, especially in terms of the possibilities that social media have
where new players, new ideas and extended exchanges and dialogue begin
 56 JOY CHIA

relationships. Current research is exploring regional stakeholders and com-

munity needs with a view to see how stakeholders are identified by organi-
sations, who might be missing out, and what forms of communication
could be more effectively utilised. The pilot study of three regions revealed
that developing social capital is complex, supporting the notion that it is
‘an elusive concept’ (Batt, 2008, p. 487) and one that needs considerable
research to understand and develop it. In this chapter, some of the
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complexities have been explored and the context of social capital and CSR
considered as the development of social capital is argued to be a basis for
all other planning. Social capital may be hard to define and even more
difficult to quantify, yet this study has alerted us to the importance of
organisations needing to develop strong and meaningful relationships
where CSR programmes and all exchanges reflect genuine concern for
communities the community is the stakeholder that matters.

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