The Role of Social Capital in Corporations: A Review
Oxford Review of Economic Policy, Forthcoming
29 Pages Posted: 17 Mar 2017
Date Written: March 15, 2017
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 summarise 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.
Keywords: Social Capital, Corporate Social Responsibility, Trust, Corporate Culture
JEL Classification: M14, G30
Suggested Citation: Suggested Citation