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New Research highlights the importance of building ’social capital’.21 November 2006 10:41
Workbase Scotland has completed a piece of research evaluating the impact of the services we delivered to ten companies across the Whisky Industry. We wanted to identify the contribution our input had on growing social capital within the companies involved.
In Scotland the term “social capital” is increasingly used by policymakers and politicians but what does the term mean? Social Capital may be defined as - the networks, norms and relationships that help communities and organisations work more effectively to pursue shared objectives.
Why Social Capital is Important
There is evidence that growing social capital is important as it has potentially beneficial economic and social effects and is important for economic and business performance. The relationships, norms and networks that make up social capital could be expected to contribute to the efficient functioning of markets in a number of ways. Within firms, networks and co-operative norms may facilitate team-working; reduce or eliminate problems between employer and employee; and improve the flow of information including, crucially, tacit knowledge. This will enhance efficiency, promote innovation and improve productivity.
The Case Study
The research focused on the Whisky Industry Partnership Project which Workbase Scotland were commissioned to deliver in 2004. The project had the objective of raising the sector’s competitive performance in the global economy. The companies aimed to achieve this through increasing employee involvement and participation in their businesses. It was felt that employee involvement could be best secured through training the workforce in the areas of leadership, communications and business awareness skills.
Research Findings
Link to pdf
