While it is not a new concept, social capital has emerged as an integral aspect of business and society. It is concerned with the creation of a positive outcome through human interaction, which might be tangible or intangible. An organization’s success depends partly on the personal networks and relationships of the people, both internal and external stakeholders. Businesses and individuals alike should invest in social capital to harness the power of people’s networking and interactions.
Social capital includes norms, values, beliefs, social relations, and networks that facilitate collective action and cooperation for mutual benefits. Generally, the idea of social capital explains how members in a certain society, team, or project band together and operate harmoniously. It manifests itself differently depending on people’s expectations and goals in both business and not-for-profit organizations. Some examples of social capital benefits include future opportunities, innovative ideas, and useful information.
Social capital is a valuable asset in business enterprises. It promotes a sense of mutual respect and shared values that contribute to the success of the organizations. Besides, it allows non-profits or corporations to function as a whole through social relationships and trust among their stakeholders within and outside their operations. More broadly, this concept ascribes the need for social responsibility among members of a given organization or community.
Networking is one of the core aspects of social capital. Using the internet is a key example that illustrates how people could harness the power of social networks. They allow professionals to create connections that foster not only bonding but also the sharing of valuable information. Furthermore, social capital, especially bringing, enables team members to discover their shared expectations, goals, and interests. In retrospect, managers should invest in social capital to boost teamwork, trust, and collaborative work for their organizations’ success.