Social Capital Sustainable Development Dr Shahram Yazdani Market
Social Capital & Sustainable Development Dr. Shahram Yazdani
Market Value Model Market Value Financial Capital Human Capital Intellectual Capital Social Capital Structural Capital Dr. Shahram Yazdani Mc. Elroy’s modified IC map
Human Capital n �uman capital refers to the value of H knowledge, skills and experiences held by individual employees in a firm; Dr. Shahram Yazdani
Human capital is embodied in the individual n As usually defined, human capital is embodied in the individual, and the national stock of human capital can therefore be thought of as the sum total of the human capital of all those normally resident in its territory. Dr. Shahram Yazdani
Special Form: Human Innovation Capital n n Human innovation capital, is the sum total capacity of individuals to innovate It is a Subset of Human Capital Dr. Shahram Yazdani
The Problem of Focusing on Human Capital n n Dr. Shahram Yazdani The creation of knowledge is clearly a social activity so it is necessary to ask whether a simple aggregation of the human capital possessed by individuals is sufficient. The development of individual human capital is therefore intertwined with the social and collective development of knowledge.
Social Capital n n Dr. Shahram Yazdani Social capital points to the value of relationships between people in firms, and between firms and other firms. Trust, reciprocity, shared values, networking, and norms are all things that, according to social capital theory, add value in a firm, or between firms, by speeding the transfer of information and the development of new knowledge.
Interdependence n n Social Capital relate to a broader concept of Interdependence. All people have strengths and weaknesses – Interdependence is when we use our strengths to build relationships that help support our weaknesses. Dr. Shahram Yazdani
Reciprocity n n n Dr. Shahram Yazdani specific: “I’ll do this for you now, you do the same for me later” generalized: “I’ll do this for you now, somebody else will do the same for me later” Golden rule: “random acts of kindness”
Human vs. Social Capital Dr. Shahram Yazdani Human Capital Social Capital Focus Individual Agent Relationships Measures Duration of Schooling, Qualifications Attitudes Membership, Participation, Trust Level Outcomes Direct: Income, Productivity Indirect: Health, Civic Activity Social Cohesion Economic Achievement More Social Capital Model Linear Interactive, Circular
Special Form: Social innovation capital n n Social innovation capital is the collective capacity of a group to innovate. It originate from human innovation capital and social capital Dr. Shahram Yazdani
Special Form: Social Innovation Capital n Collection of independent learners and communities of practice who collaborate with one another in self-organizing ways to develop and integrate shared knowledge. Dr. Shahram Yazdani
Structural capital n Structural capital consists of embodiment, empowerment, and supportive infrastructure of an organization that enhances performance of human capital. Dr. Shahram Yazdani
Special Form: Structural innovation capital n n Structural innovation capital is the value of supportive infrastructure of an organization that enhances and increases the capacity of a group to innovate. Structural innovation capital is a subset of structural capital Dr. Shahram Yazdani
Innovation Capital n n Innovation capital is the collective capacity of an organization to innovate It includes ¡ ¡ ¡ n Human innovation capital Social innovation capital and Structural innovation capital Dr. Shahram Yazdani Innovation capital is a subset (special form) of intellectual capital
Social capital n Social capital consists of the networks, norms, relationships, values and informal sanctions that shape the quantity and cooperative quality of a society’s social interactions; Dr. Shahram Yazdani
Types of social capital n Three main types of social capital can be distinguished : ¡ ¡ ¡ Dr. Shahram Yazdani Bonding social capital (e. g. among family members or ethnic groups); Bridging social capital (e. g. across ethnic groups); and Linking social capital (e. g. between different social classes);
Bonding Social Capital The term “bonding” holds a negative connotation and generally refers to small circles of homogeneous people that do not cooperate with other outside the boundaries of the group. n Dr. Shahram Yazdani 18
Bridging Social Capital n n n Dr. Shahram Yazdani Bridging social capital is given by horizontal ties shaping heterogeneous groups of people with different backgrounds. The term bridging refers to the ability of such networks to create “bridges” connecting sectors of society that, otherwise, would have never come into contact. The common claim is that such relationships have positive effects on the diffusion of information and trust, thus fostering transactions and economic growth. 19
Linking Social Capital n The term linking social capital describes ties connecting individuals, or the groups they belong to, to people or groups in position of political or financial power. Dr. Shahram Yazdani 20
Linking Social Capital n n Dr. Shahram Yazdani For example, civil society organizations allow citizens to come into contact with the institutions to carry out advocacy activities through collective action. This kind of networks is critical for leveraging resources, ideas and information beyond normal community linkages and, therefore, may play a significant role for social well-being. 21
Corporate Social Capital n n Professional associations, labour unions and political parties that pursue the special interests of their members Caution: Organizations can behave prosocially as well as anti- socially Olson (1965) Dr. Shahram Yazdani 22
The components of social capital n n n Social networks - who knows who; Social norms - the informal and formal “rules” that guide how network members behave to each other; and Sanctions - the processes that help to ensure that network members keep to the rules. Dr. Shahram Yazdani
Increasing Interest Dr. Shahram Yazdani
Social capital benefits n Social capital may contribute to a range of beneficial economic and social outcomes including : high levels of and growth in GDP; more efficiently functioning labor markets; higher educational attainment; lower levels of crime; better health; and more effective institutions of government; Dr. Shahram Yazdani
Social capital benefits n Different types of social capital are relevant to different economic and social outcomes for example: ¡ ¡ Bonding social capital is most important to health in early childhood and frail old age Bridging social capital is most important in adult life when looking for employment; Dr. Shahram Yazdani
The Importance of Social Capital n n If you could wish for 3 things for yourself or for someone you love, what would they be? Most Frequent Answers: ¡ ¡ ¡ Healthfulness Happiness Longevity Dr. Shahram Yazdani
Research Shows That n n n Healthfulness Happiness Longevity Are all related to – Social Capital! Dr. Shahram Yazdani
Social Capital and Health Dr. Shahram Yazdani
Social Capital and Health Dr. Shahram Yazdani
Research on Social Capital and Health n n n More diverse social ties = fewer colds Stroke victims recover faster and more fully Protective effect of social capital roughly equivalent to quitting smoking! Decreases depression and increases happiness Fewer heart attacks Dr. Shahram Yazdani
Social Capital and Happiness Dr. Shahram Yazdani Nov 9, 2011 11: 00 am Geog 3432 32
Trends of social capital n n n Dr. Shahram Yazdani There is evidence that overall levels of social capital have been declining in countries such as the United States and Australia. Overall levels of social capital have generally been stable or rising in countries such as the Netherlands, Sweden, Japan and Germany; The evidence for the UK is ambiguous, with some key indicators showing declines, such as social trust, while others appear to have remained stable, such as volunteering;
Stanley Milgram: Social Psychologist n n Stanley Milgram created “the small world experiment” examining the average path length for social networks of people in the United States. The research was groundbreaking in that it suggested that human society is a small world type network characterized by short path lengths. Dr. Shahram Yazdani
Trends in Social Capital Dr. Shahram Yazdani
Measurement of Social Capital n Social capital can be measured using a range of indicators but the most commonly used measure is trust in other people; Dr. Shahram Yazdani
Social trust n Social trust is a core component of social capital, and is normally used as a key indicator of it, sometimes as the best or only single indicator. Dr. Shahram Yazdani
Percentage of People Saying that Most People can be Trusted. Dr. Shahram Yazdani
Why Focus on Trust? n n Trust is “at the heart of social order” (Luhman 1979) and essential to the conduct of everyday life Without trust we must rely on limited effectiveness of government or the military Dr. Shahram Yazdani
Social Cohesion n Cohesion is defined as a "field of forces that act on members to remain in the group" or "the resistance of a group to disruptive forces" Dr. Shahram Yazdani
Social Cohesion n n Dr. Shahram Yazdani The presence of multiple paths, passing through different actors, implies that if any one actor is removed, alternative linkages among members still exist to maintain social solidarity A group is strongly (as opposed to weakly) structurally cohesive to the extent that multiple independent social relations among all pairs of members of the group hold it together.
Dimensions of social cohesion n Belonging vs. Isolation ¡ n Inclusion vs. Exclusion ¡ n n Which concerns equal opportunities of access Participation vs. Non-involvement Recognition vs. Rejection ¡ Dr. Shahram Yazdani n Which means shared values, identity, feeling of commitment Which addresses the issue of respecting and tolerating differences in a pluralistic society Legitimacy vs. Illegitimacy ¡ With respect to the institutions acting as mediator in conflicts of a pluralistic society
Community Vitality Collective efficacy Capacity for collective action Linking & Corporate Social Capital Civil Society Organizations Social Activities Social Commitment Dr. Shahram Yazdani Social cohesion Social Trust Social Interactions Bonding & Bridging Social Capital
Thank You ! Any Question ? Dr. Shahram Yazdani
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