Social Capital

2984 Words12 Pages
ABSTRACT Nowadays, many social scientists agree that social capital is present and positively contributes to economic growth in the light of many studies. In other words, social capital is important to the efficient functioning of modern economies. It constitutes the cultural component of modern societies, which in other respects have been organized since the enlightenment on the basis of formal institutions, the rule of law, and rationality. Building social capital has typically been seen as a task for second generation economic reform; but unlike economic policies or even economic institutions, social capital cannot be so easily created or shaped by public policy. This project will define social capital, explore its economic and…show more content…
This situation calls for coordination that often stretches beyond formal boundaries of the organization, extending to a complex web suppliers, alliance partners and customers. However, in today’s rapidly changing environments, organizations still need to pay close attention to the development of personal knowledge, skills, and abilities what is often referred to as human capital. At the same time, similar focus needs to foster connections among people and develop the trust, mutual understanding, and shared values and behaviors that bring people together and make cooperative action possible. Knowledge has always resided in organizations- but it wasn’t until the Information Age put a premium on ideas that intellectual capital was recognized as a critical resource. Now, factors like technology, globalization, and the rise of free agency and virtual workplaces are bringing another form of “hidden” capital to the forefront. During recent years, the concept of social capital has become one of the most popular exports from sociological theory. Despite its current popularity, the term does not embody any idea really new to sociologists . That involvement and participation in groups can have positive consequences for the individual and the community is an essential notion, In this sense, the term social
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