Community investment consists of a firm's investment in communities where the object of this investment is not directly related to the firm's day-to-day operations. One central benefit for a firm of this investment is increased legitimacy in the community; the main benefits for the community are the enhancement of its capacity and the development of its voice. Nevertheless, these benefits are not necessarily attained in contexts where the community holds attitudes of negative engagement towards the firm. The paper develops a model of community engagement that includes both negative and positive engagement behaviours by local communities; and illustrated this model with two activities of community engagement by a Western mining firm operating in the DR of Congo: the activities of its Community Department, and the design and performance of a Social Community Fund, where local stakeholders are invited to decide with the firm the allocation of funds destined to the community.

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MÓria Serrano, Josep F.; Ogola, Fredrick Onyango

Conflict community investment of firms in developing countries

Community investment consists of a firm's investment in communities where the object of this investment is not directly related to the firm's day-to-day operations. One central benefit for a firm of this investment is increased legitimacy in the community; the main benefits for the community are the enhancement of its capacity and the development of its voice. Nevertheless, these benefits are not necessarily attained in contexts where the community holds attitudes of negative engagement towards the firm. The paper develops a model of community engagement that includes both negative and positive engagement behaviours by local communities; and illustrated this model with two activities of community engagement by a Western mining firm operating in the DR of Congo: the activities of its Community Department, and the design and performance of a Social Community Fund, where local stakeholders are invited to decide with the firm the allocation of funds destined to the community.
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Conflict community investment of firms in developing countries
MÓria Serrano, Josep F.; Ogola, Fredrick Onyango
EBEN Annual Conference 1013
EDHEC Business School
Barcelona (Spain), 12/09/2013 - 14/09/2013

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