Social Capital refers to the resources available in and through personal and business networks. These resources include information, ideas, leads, business opportunities, financial capital, power and influence, emotional support, even goodwill, trust, and cooperation. The “social” in social capital emphasizes that these resources are not personal assets, no single person owns them. The resources reside in networks of relationships. If you think of human capital as what you know (the sum of your own knowledge, skills and experience), then access to social capital depends on who you know – the size, quality and diversity of your personal and business networks. But beyond that, social capital also depends on who you don’t know, if you are indirectly connected to them via your networks.
source: Achieving Success Through Social Capital – Wayne Baker
“Capital” emphasises that social capital, like human capital or financial capital, is productive: It enables us to create value, get things done, achieve our goals, fulfil our mission in life, and make our contribution to the world. But saying that social capital is “productive” is an understatement: No one can be successful – or even survive – without it. But many people believe they should be able to get along with out social capital; they mistake “going it alone” as the prescription for success. Others pretend to thrive without social capital, using it secretly as if it were improper or even unethical. These beliefs and attitudes are rooted in the myth of individualism: the cultural belief that everyone succeeds or fails on the basis of individual efforts and abilities.
There are scientifically proven benefits of relationships for people, groups, and firms in the world of business. There are also links between networks and the greater concerns of life – health, longer life, and a sense of meaning, fulfillment and the ability to contribute to the world.
As to the thorny issue of the ethics of using social capital – these thorns are imaginary. We cant avoid managing relationships; our only choice is how we manage them. Managing our networks conciously is an ethical duty – and the prescription for personal and business success.
source: Achieving Success Through Social Capital by Wayne Baker
