What is Social Capital?
"Social Capital is generated when people work together to make things happen. It's what's generated when people get involved and ask others to get involved." (r1)Social Capital has been defined as 'features of social life, networks, norms, and trust, that enable participants to act together more effectively to pursue shared objectives. Social capital in short, refers to social connections and the attendant norms and trust'. (r2)
There is a growing acceptance of the OECD's definition of social capital as 'networks together with shared norms, values and understandings that facilitate cooperation within or among groups', where social capital is seen as a resource which allows individuals, groups and communities to resolve collect problems more easily. (r3)
A growing body of research discusses how social capital is beneficial to individuals and their communities, both socially (in terms of health, education and crime, etc.) and economically. Where social capital is high, individuals and their communities tend to be healthier, happier and more productive.
There are four central aspects of social capital: networks (bridging, bonding linking); reciprocity; trust; and norms & values.
1. Networks: these bond individuals in groups to each other, bridge the divides between groups and vertically link different levels of power and influence.
Bonding: strong supportive ties which occur within a group be it a family, club, religious group, etc.
Bridging: weak ties that connect people horizontally across group boundaries; critical to providing access to new ideas, resources, communities and cultures.
Linking: ties occur vertically across boundaries of power and kudos. They connect people that may have similar ideals but who move in different 'circles'. Linking ties are important for strategic outcomes.
2. Reciprocity: this occurs when a person gives to someone else, expecting a fair and tangible return at some undefined future date. Reciprocal interaction will often lead to relationships of trust.
3. Trust the highest level of information and resource exchange takes place in relationships of trust. Built on knowledge of others being trustworthy.
4. Norms & Values: the basis for the underlying culture of any group or community, norms & values dictate the kind of relationships, and hence networks, being developed.
References:
(1) Lyon, Barbara (2007), Social Capital - Observations
(2) Putnam. R (2000), Bowling Alone: Collapse and Revival of the American Community
(3) OECD, (2001), The Well-Being of Nations: The Role of Human & Social Capital