Exploiting relational capital in family businesses through corporate social responsibility

Abstract

In the knowledge economy, a firm's longevity and sustainability does not necessarily have to be always supported by a great financial performance. The intellectual capital has become a major corporate strategic asset to generate sustainable competitive advantage and superior financial performance. Mutual trust, in internal and external relationships, makes a positive contribution to the company's outcome. Family-owned businesses have the capacity to blend economic consideration with traditional role of the family social unit. This allows for constituent stakeholders to build shared value between the company and society through CSR initiatives. Hence, this research aims to understand the implementation of CSR initiatives in family businesses, by examining two cases of Asian family business across emerging economies - Indonesia (Sampoerna) and India (Tata).