Social Capital
Social capital is the network of relationships that facilitates the production of economic or non-economic goods and services. Social capital takes many forms including obligation within a group, trust, intergenerational closure, Obligation, and social sanctions.
It encompasses love, empathy, reciprocal obligation, positive emotion, subjective trusting, positive attitude, tolerance, mindedness, mutual respect, and honor to each other. It is the interconnection of group individuals bound in a network of relations directed towards collective actions or for collective good.
There is an interconnection between physical capital, human capital, and social capital which eventually helps to cherish the goal of an organization. Social capital is appropriate and convertible. One’s network of friendship can be used for other purposes such as information dissemination, advice exchange, and other trust-based social nexus.
The concept of it is a tool to aid in the analysis of social systems proper and effective. A person capable of understanding social diversity can better move between the cultural world and facilitate their interaction through the forms of the social and cultural network of relationships which ultimately enables the individuals in an organization to make effort to achieve outcomes that are mutually satisfactory.
It helps improve the efficiency of economic capital by reducing transaction costs. Pierre Bourdieu, a renowned French scholar has opined that social capital is less liquid than economic capital. It helps to cement the reciprocal relationships mediated through trust. Trust networks transmit more sensitive and richer information than other types of networks because of their solidarity benefit or mutual benefit.
The key ingredients of social capital are the equality of social relations which are based on certain factors:
1. Group membership:
The individuals or groups that are forming a network have interlocking relationships. The members in social capital are literally associated where the membership is mostly voluntary, less formal, and equal.
2. Reciprocity:
Reciprocity literally indicates mutual benefits based on giving and take relations. But in social capital, the return is not immediate as in business; the return will be gained sooner or later.
3. Trust:
Trust is another important factor. The individuals do believe that others will act locally and honestly as well as in a mutually supportive way. An individual should realize that all the members are equal and have faith in each other but unconditionally. The group has wider ends. The trust developed today will be reciprocated and amplified tomorrow. It takes mutual commitment and cooperation from both parties to build social capital.
4. Norms:
In social capital, the norms are mostly informal but stronger. The scholars are of the opinion that where social capital is stronger there is a high chance to accomplish the task on time effectively and expertly. Primary relationship, collective benefit, and moral obligation help to cement the relationships
5. Pro-activity
Pro-activity is also an imp aspect of it. It is unconditional help and mutual understanding of each other. It is the active and willing participation of individuals with selfless devotion. Members do work for the collective good as they have socially embedded with each other.
Functions of Social Capital
It has innumerable benefits. Anthropological trust literature has enlisted some functions:
- Cements the close relations between and among the members.
- Fosters trust, love, empathy, and respect.
- Links the locals into institutional arrangements.
- Shapes interaction patterns and intimate relations between and among actors.
- Serves as an asset for an individual as well as collective production of well-being. Accumulation and mobilization of resources are only possible through unconditional trust.
- Serves as information dissemination.
- It helps for economic growth, adaption, and holistic development.
- It can also help to introduce democracy in a country if that is not democratic.
- Voluntary associations are the major sources for it.
- It helps with collective action.
- With the help of high social capital artists, novelists, playwrights, and civil society can ridicule the regime and keep alternative values alive.
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