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The Role of Social Capital in Corporations: A Review

Oxford Review of Economic Policy, Forthcoming

29 Pages Posted: 17 Mar 2017  

Henri Servaes

London Business School; Centre for Economic Policy Research (CEPR)

Ane Tamayo

London School of Economics & Political Science (LSE)

Date Written: March 15, 2017

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 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

Servaes, Henri and Tamayo, Ane, The Role of Social Capital in Corporations: A Review (March 15, 2017). Oxford Review of Economic Policy, Forthcoming. Available at SSRN: https://ssrn.com/abstract=2933393

Henri Servaes (Contact Author)

London Business School ( email )

Sussex Place
Regent's Park
London NW1 4SA
United Kingdom
+44 20 7000 8268 (Phone)
+44 20 7000 8201 (Fax)

HOME PAGE: http://faculty.london.edu/hservaes/

Centre for Economic Policy Research (CEPR)

77 Bastwick Street
London, EC1V 3PZ
United Kingdom

Ane Tamayo

London School of Economics & Political Science (LSE) ( email )

Houghton Street
London, WC2A 2AE
United Kingdom
+44 (0)20 78494689 (Phone)

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