Social Capital: Why should you invest in Social Capital?
The term social capital was first coined back in a 1916 article on the collective success of rural schools. According to Robert Putnam, social capital "refers to the collective value of all 'social networks' and the inclinations that arise from these networks to do things for each other". Today, civic groups and educators refer to social capital when describing the social networks created as a function of community. There are two different sources of social capital in business today; internal (people and relating) and external (networking in community). For the purpose of this brief, I will be focusing on the topic of internal social capital.
What does social capital mean in the workplace? Internal social capital focuses on team and staff relationships, connections and values. While most of us agree to work together in some form of exchange (our time, skills and energy in lieu of compensation), there often is an uneasy relationship that exists between people in the workplace. Social capital, shifts our relationship away from a pure give and take relationship, to a much fuller, robust relationship where everyone is a stakeholder in the businesses success.
As a business owner or member of management, why should you invest in social capital? The social network you create within your organization will have a direct impact on your bottom line. Your people are your greatest asset and your workplace should reflect this way of thinking.
Here are six steps I recommend to build social capital in your organization:
1.Clearly articulate your goals, vision or purpose to your people
2.Create agreements on how you connect and relate to your people
3.Be the role model for your business in how you relate to others
4.Spend time with your people - connect
5.Build trust
6.Keep their trust
7.Hire people who have similar values to those of the organization
Business exist primarily for the purpose of making money. Long-term growth is reliant on future capital earned and invested. My concentration on social capital as a business topic is about helping management examine and understand the value of their people. Social capital is the human investment in your business that will help create success well into the future.
For some additional thoughts on social capital, click on the links below:
http://www.businessweek.com/managing/content/oct2007/ca20071023_070114.htm
http://www.entrepreneur.com/marketing/networking/article72290.html
Copyright © 2010 Small Business Leader - All Rights Reserved. Guillermo Tilley | Small Business Leader | smallbusinessleader.net |Santa Fe, NM
