The Social Capital Theory ( Sct ) And Stakeholder Theory

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Despite the conflicting nature between the social-capital theory (SCT) and stakeholder theory (ST), the role of ‘Corporate social responsibility’ (CSR) is a factor for a majority of organisations to gain an economic advantage amongst its competitors. Through globalisation, aspects involving profit maximisation and business reputation have become the primary influences of the ST. Alternatively, the minority of organisations engaging in CSR with the altruistic concern for the stability of the wider community and society, reflects the moral influences of values and stakeholder obligations. In summation, the internal objective of financial performance is dependent on the process that arises from CSR application to the inevitable outcome of profit maximisation within an organisation, thus re-enforcing the debate that is against altruistic form. The application of CSR is a multi-faceted concept that may be perceived in an altruistic matter, hence emphasized through the minor perspective of the ‘social-capital theory’. This social-capital theory (SCT) extends upon one’s own personal values and beliefs, which are determined throughout each managerial life. In relation to the supports by J. Cowley (2012), the assumption of CSR participation is considered an obligation towards those in the wider community, whilst claiming to be an opportunity for consumers to understand the business’ social values (p. 422). In response to the increasing demand from societal
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