WHAT IS SOCIAL CAPITAL
‘Social Capital’ is an economic metaphor for resources embedded within, available through, and derived from the network of relationships possessed by an individual, firm or organization. Formal institutions such as Constitutions, Laws, Judiciary and informal institutions such as Trust, Respect, Collaboration, Communal Harmony are all part of a fabric that makes society effective and able to support a thriving economy.
In today's globally networked economy, Social Capital - i.e., the extent and depth of relationships, formal and informal, bilateral and multilateral - makes a big contribution to the returns on Produced, Natural and Human Capital. In the absence of Social Capital, the other three capitals will either be depleted or under-optimized, leading to declines in human wellbeing.
For our Social Capital assessment, we qualitatively measure and economically value (where appropriate) the value positive impacts on stakeholder wellbeing as result of affirmative community interventions by the firm or organization.
WHAT DO WE MEASURE IN SOCIAL CAPITAL?
Videos on SCX - Social Capital