Social Capital
Introduction
L.J. Hanifan first introduced the idea of social capital in 1916. He defined it as: “those tangible substances that count for most in the daily lives of people: namely good will, fellowship, sympathy, and social intercourse among the individuals and families who make up a social unit…The individual is helpless socially, if left to himself… If he comes into contact with his neighbor, and they with other neighbors, there will be an accumulation of social capital, which may immediately satisfy his social needs and which may bear a social potentiality sufficient to the substantial improvement of living conditions in the whole community. The community as a whole will benefit by the cooperation of all its parts, while the individual will find in his associations the advantages of the help, the sympathy, and the fellowship of his neighbors.”

More recently, Robert Putnam (2000) defined the concept of social capital as: “referring to connections among individuals-social networks and the norms of reciprocity and trustworthiness that arise from them…[It] is closely related to…civic…virtue…A society of many virtuous but isolated individuals is not necessarily rich in social capital.”

Other sociologists suggest that social capital is enhanced by social currency. This idea is how social fodder links people together. For example, a popular person who is the life of the party might be regularly included in activities. To this extent he is strong in social capital. His jokes and storytelling, the items that make him popular in the gathering, are the social currency he exchanges.

The fact that social capital keeps us safe, sane and secure cannot be understated. Most of us tend to think that institutions or organizations are key to safety. Places like hospitals or systems like law enforcement are thought to keep us safe, but the bold truth is that these systems have never really succeeded in keeping us safe or healthy. Rather, it is the opportunity for relationships that community offers us as well as the building of social capital. Simply stated, your circles of support and the reciprocity they create are the most important element in your safety.

This notion of social capital and the blending of similarity of interest with natural diversity of the members create unique phenomena for growth and development in both people and organizations. The drive to find, create or be more than we had before is magically transformed when it is blended with community. The reciprocity developed through social capital is helpful as well for either specific or general reasons.

Many current business leaders understand the notion of community and social capital. Most successful companies and organizations work to create a community sense among their employees. A company can be energized by the idea that people can bond around a mission statement and objective to find mutual success. The relationships that form a bond create opportunities for social reciprocity and build social capital. In fact, about any organization or work force, including families, can lead to a greater sense of bonding, focus and success. Quite simply, community is a universal concept that creates advancement not only in products and ideas, but for people as well.

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