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The role of social capital in corporations: a review

Author

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  • Henri Servaesh
  • Ane Tamayo

Abstract

This article reviews the literature on the role of social capital in the economy, with a particular emphasis on its importance for corporations. We relate social capital to concepts such as trust and corporate culture, and discuss and propose various metrics that capture social capital at the firm level, including firms’ corporate social responsibility (CSR) efforts. We summarize the extant research on the relation between social capital and both firm value and stock market performance. Finally, we analyse whether firms are investing enough in social capital. Throughout our discussion, we propose several avenues for further research.

Suggested Citation

  • Henri Servaesh & Ane Tamayo, 2017. "The role of social capital in corporations: a review," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 33(2), pages 201-220.
    • Handle: RePEc:oup:oxford:v:33:y:2017:i:2:p:201-220.
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    File URL: http://hdl.handle.net/10.1093/oxrep/grx026
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    More about this item

    Keywords

    social capital; corporate social responsibility; trust; corporate culture;
    All these keywords.

    JEL classification:

    • M14 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Corporate Culture; Diversity; Social Responsibility
    • G30 - Financial Economics - - Corporate Finance and Governance - - - General

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