Social capital refers to the relationships between individuals and groups, not to individuals themselves (the latter would be human capital).
Social capital offers individuals access to the resources of social and societal life, such as support, assistance, recognition, knowledge and connections, as well as finding jobs and training places. It is also produced and reproduced through exchange relationships, such as mutual gifts, favors, visits and the like. In order to obtain these resources, one must "invest" in social relationships. Social capital is conceptually based on social networks.
For society, social capital reduces social costs to the extent that assistance and support are provided within the framework of relationship networks. Conversely, the costs of supporting and helping the sick, elderly, disabled and other impaired people increase to the extent that relationship networks such as neighborhoods, circles of friends, club structures, etc. no longer work.
The amount of social capital available in a society affects the growth or decline of an economy: business relationships, economic transactions and investments are less secure in a climate of lack of trust (high "calculated risk costs") and are made less quickly and with less willingness to take risks. They require significantly more effort in terms of preliminary investigation of emerging problems, legal safeguards, longer contract negotiations, negotiation of guarantee claims in the event of contracts not being complied with, etc. Low social capital therefore increases transaction costs and potentially reduces productivity.
Social capital has positive economic effects on allocation (location policy), growth and employment.
See also:
Social MediaSocial CompetencesSocial Responsibility (CSR)Integration of Disabled PeopleWork and FamilyIntegration in CompaniesHealth Management
Reference to QET guidelines:
Q02 Social skillsE14 InclusionE15 ReintegrationE18 Fair trade