Social capital - Wikipedia
The term “Human Capital” has long been used in the field of Human Social capital locates the value in relationships among people and often. Human and social capital have elicited notable attention of research scholars in various disciplines such as sociology, economics, finance, political science. culture and perspective in all areas of human life and work and the source there is a significant relationship between social capital and intellectual capital with.
Examples of social capital are any benefit that is derived from society and our interaction with members of our society. Consider if you were a hermit, living completely alone, what difficulties or challenges would you have compared to your current life in society? What benefits would you not have access to? This can be a good way to think about the examples of social capital.
We are immersed in our social context to such an extent that it can be difficult for us to see the benefits of sociability that we receive every day. It is useful to consider examples at different levels of social capital: Individual level examples of social capital The individual benefits of social capital are often the easiest to observe, and for us to understand. Social capital can give us access to resources, and these resources can be any form of capital physical, human, social, etc. At the individual level social capital is embedded in social relationships.
For example, you may borrow tools from your neighbours for odd jobs around your house, and they may borrow items from you. This is called reciprocity, and is a pattern of behaviour that is established through your social relationships and based on trust and respect.
The benefits of these examples of social capital are obvious. The tall poppy and the back slap Consider you want to make pancakes for your kids on a Sunday morning, but discover you have run out of sugar. Instead you could ask your neighbour for the required sugar, if you have a positive relationship with them.
Examples of social capital
And there is also a benefit. The act involves social interaction that strengthens the relationship between neighbours, and builds the norms of reciprocity that can be of benefit to both parties in future.
Social capital can also provide access to human capital, in the form of skills, expertise, knowledge, or information. The examples are numerous. Your neighbour may be a plumber and be able to fix your leaking tap. Another example could be knowledge. Your friend may be landscaper and be able to tell you which plants would be best for your garden.
Collective action is thus an indicator of increased social capital. Edwards and Foley, as editors of a special edition of the American Behavioural Scientist on "Social Capital, Civil Society and Contemporary Democracy", raised two key issues in the study of social capital.
First, social capital is not equally available to all, in much the same way that other forms of capital are differently available. Geographic and social isolation limit access to this resource.
Second, not all social capital is created equally. The value of a specific source of social capital depends in no small part on the socio-economic position of the source with society.
On top of this, Portes has identified four negative consequences of social capital: Three main implications of intercommunal ties explain their worth: Facilitate communication in the community across ethnic lines Squelch false rumors Help the administration carry out its job and in particular peace, security and justice This is a useful distinction; nevertheless its implication on social capital can only be accepted if one espouses the functionalist understanding of the latter concept.
Indeed, it can be argued that interethnic, as well as intra-ethnic networks can serve various purposes, either increasing or diminishing social capital. In fact, Varshney himself notes that intraethnic policing equivalent to the "self-policing" mechanism proposed by Fearon and Laitin  may lead to the same result as interethnic engagement.
Social capital is often linked to the success of democracy and political involvement. Putnamin his book Bowling Alone makes the argument that social capital is linked to the recent decline in American political participation.
This framework has been rediscussed by considering simultaneously the condition of European regions and specifically Southern Italy Ferragina, ; Ferragina, Thomas Sander  defines it as "the collective value of all social networks who people knowand the inclinations that arise from these networks to do things for each other norms of reciprocity.
It "creates value for the people who are connected, and for bystanders as well. Social capital has been used at various times to explain superior managerial performance,  the growth of entrepreneurial firms,  improved performance of functionally diverse groups,  the value derived from strategic alliances,  and enhanced supply chain relations. Early attempts to define social capital focused on the degree to which social capital as a resource should be used for public good or for the benefit of individuals.
Putnam  suggested that social capital would facilitate co-operation and mutually supportive relations in communities and nations and would therefore be a valuable means of combating many of the social disorders inherent in modern societies, for example crime.
In contrast to those focusing on the individual benefit derived from the web of social relationships and ties individual actors find themselves in, attribute social capital to increased personal access to information and skill sets and enhanced power.
He defines social capital as "the aggregate of the actual or potential resources which are linked to possession of a durable network of more or less institutionalized relationships of mutual acquaintance and recognition. Bourdieu thus points out that the wealthy and powerful use their "old boys network" or other social capital to maintain advantages for themselves, their social class, and their children.
James Coleman defined social capital functionally as "a variety of entities with two elements in common: Putnam says that social capital is declining in the United States.Katz Professor Carrie Leana Interview: Human Capital Vs. Social Capital
This is seen in lower levels of trust in government and lower levels of civic participation. Putnam also says that television and urban sprawl have had a significant role in making America far less 'connected'. Putnam believes that social capital can be measured by the amount of trust and "reciprocity" in a community or between individuals.
This offered a reference point from which several studies assessed social capital measurements by how media is engaged strategically to build social capital. Social capital is formed by repeated interactions over time and he argues is critical for development and difficult to generate through public policy.
The importance of social capital for economic development is that these norms of behavior reduce transaction cost of exchange such as legal contracts and government regulations. Fukuyama suggests that while social capital is beneficial for development, it also imposes cost on non-group members with unintended consequences for general welfare.
However, Fukuyama argues despite the risk of society having too much social capital, it is nonetheless worse to have too little and be unable to organize for public goods and welfare enhancing activity.
Nahapiet and Ghoshal in their examination of the role of social capital in the creation of intellectual capitalsuggest that social capital should be considered in terms of three clusters: This dimension focuses on the advantages derived from the configuration of an actor's, either individual or collective, network.
This is best characterized through trust of others and their cooperation and the identification an individual has within a network. Hazleton and Kennan  added a third angle, that of communication.
Communication is needed to access and use social capital through exchanging information, identifying problems and solutions, and managing conflict. According to Boisot  and Boland and Tenkasi,  meaningful communication requires at least some sharing context between the parties to such exchange. The cognitive dimension focuses on the shared meaning and understanding that individuals or groups have with one another.
Portes, for example, noted that the term has become so widely used, including in mainstream media, that "the point is approaching at which social capital comes to be applied to so many events and in so many different contexts as to lose any distinct meaning.
In addition, they argue that many proposed definition of social capital fail to satisfy the requirements of capital. They propose that social capital be defined as "sympathy". The object of another's sympathy has social capital. Those who have sympathy for others provide social capital. One of the main advantages of having social capital is that it provides access to resources on preferential terms. Their definition of sympathy follows that used by Adam Smith, the title of his first chapter in the "Theory of Moral Sentiments.
While studying norms among African-American family firms and Euro-American family firms, Lester noted that negative social capital was created when the owner of the company was pressured to engage in social behavior not conducive to firm profits.
Social Capital Theory gained importance through the integration of classical sociological theory with the description of an intangible form of capital. In this way the classical definition of capital has been overcome allowing researchers to tackle issues in a new manner Ferragina, Through the social capital concept researchers have tried to propose a synthesis between the value contained in the communitarian approaches and individualism professed by the 'rational choice theory.
Individuals can exploit social capital of their networks to achieve private objectives and groups can use it to enforce a certain set of norms or behaviors.
Combining Social Capital with Human Capital for Human Resources Management | Develop
In this sense, social capital is generated collectively but it can also be used individually, bridging the dichotomized approach 'communitarianism' versus 'individualism' Ferragina, However, the analogy with capital is misleading to the extent that, unlike traditional forms of capital, social capital is not depleted by use;  in fact it is depleted by non-use use it or lose it.
In this respect, it is similar to the now well-established economic concept of human capital. Social capital is also distinguished from the economic theory social capitalism. Social capitalism as a theory challenges the idea that socialism and capitalism are mutually exclusive. Social capitalism posits that a strong social support network for the poor enhances capital output.
By decreasing poverty, capital market participation is enlarged. Sub-types[ edit ] In Bowling Alone: We should do this, ironically, not because it will be good for America — though it will be — but because it will be good for us. AldrichAssociate Professor at Purdue University, describes three mechanisms of social capital. Aldrich defines the three differences as bonding, bridging, and linking social capital.
Bonding capital are the relationships a person has with friends and family, making it also the strongest form of social capital. Bridging capital is the relationship between friends of friends, making its strength secondary to bonding capital. Linking capital is the relationship between a person and a government official or other elected leader. Aldrich also applies the ideas of social capital to the fundamental principles of disaster recovery, and discusses factors that either aid or impede recovery, such as extent of damage, population density, quality of government and aid.
He primarily examines Japanese recovery following the Fukishima nuclear meltdown in his book "Building Resilience: Social Capital in Post-Disaster Recovery. Bonding refers to the value assigned to social networks between homogeneous groups of people and Bridging refers to that of social networks between socially heterogeneous groups.
Typical examples are that criminal gangs create bonding social capital, while choirs and bowling clubs hence the title, as Putnam lamented their decline create bridging social capital. Horizontal networks of individual citizens and groups that enhance community productivity and cohesion are said to be positive social capital assets whereas self-serving exclusive gangs and hierarchical patronage systems that operate at cross purposes to societal interests can be thought of as negative social capital burdens on society.
Social capital development on the internet via social networking websites such as Facebook or Myspace tends to be bridging capital according to one study, though "virtual" social capital is a new area of research. These are consummatory, or a behavior that is made up of actions that fulfill a basis of doing what is inherent, and instrumental, or behavior that is taught through ones surroundings over time.
Value interjection pertains to a person or community that fulfills obligations such as paying bills on time, philanthropy, and following the rules of society.
People that live their life this way feel that these are norms of society and are able to live their lives free of worry for their credit, children, and receive charity if needed. Coleman goes on to say that when people live in this way and benefit from this type of social capital, individuals in the society are able to rest assured that their belongings and family will be safe.
The main focus of these thinkers was the urban working class of the Industrial Revolution. They analyzed the reasons these workers supported each other for the benefit of the group and held that this support was an adaptation to the immediate social environment, as opposed to a trait that had been taught to the workers in their youth.
All forms of "capital" were, for Marx, possessed only by capitalists and he emphasied the basis of labour in capitalist society, as a class constituted by individuals obliged to sell their labour powerbecause they lacked sufficient capital, in any sense of the word, to do otherwise. Marx saw "social capital" as a theoretical total amount of capital, purely in the sense of accumulated wealth or property, that existed within in a particular society.
He thereby contrasted it with specific and discrete "individual capital". The basis of the category of social capital is that an individual who donates his or her resources not because he is seeking direct repayment from the recipient, but because they are part of the same social structure. By his or her donation, the individual might not see a direct repayment, but, most commonly, they will be held by the society in greater honor.
The donor is not freely giving up his resources to be directly repaid by the recipient, but, as stated above, the honor of the community. With this in mind, the recipient might not know the benefactor personally, but he or she prospers on the sole factor that he or she is a member of the same social group.
Religion represents important aspect of social capital religious social capital. This has resulted in different metrics for different functions. Name generators[ edit ] One type of quantitative social capital measure uses name generators to construct social networks and to measure the level of social capital. These networks are constructed by asking participants to name people that they interact with, such as "Name all the people you've discussed important matters within the past six months.
Social capital scales[ edit ] Many studies measure social capital by asking the question: To expand upon the methodological potential of measuring online and offline social bonding, as it relates to social capital,  offers a matrix of social capital measures that distinguishes social bridging as a form of less emotionally tethered relationships compared to bonding.
Bonding and bridging sub-scales are proposed, which have been adopted by over scholarly articles. The study found that social media platforms like Facebook provide an opportunity for increased social capital, but mostly for extroverts. However, less introverted social media users could engage social media and build social capital by connecting with Americans before arriving and then maintaining old relationships from home upon arriving to the states.
The ultimate outcome of the study indicates that social capital is measurable and is a concept that may be operationalized to understand strategies for coping with cross-cultural immersion through online engagement.