Phenomenon and Structure of Social Capital - Essay Example

Introduction Social capital is a crucial part of any given society as it is a source of stability. This phenomenon falls under the cultural componentbut is not as clear cut as other types or forms of capital. In fact many people have treated social capital as something that should be addressed by second generation experts. This perspective is because social capital is increasingly difficult to measure even to accommodate in public policy. The purpose of the paper will be to provide an all encompassing definition of the phenomenon of social capital, identify different methodologies that can be used to measure it, identify social concepts that can be addressed by social capital and lastly explain how social capital can solve problems in a specific organisation. The organisation chosen for analysis is the Environmental Protection Agency Queensland. This will be the focal point in the last portion of the essay as I work in this organisation. Definition of social capital Many groups and individuals have attempted to define social capital. However, some of the statements passed of as definitions are in fact depictions of social capital and not the actual thing. Social capital may be defined as the informal and instantiated norm that acts as a means for promoting cooperation between individuals. Norms in this case may refer to the cases of reciprocation between two people or they may refer to complex doctrines from major religions such as Christianity. The most important aspect here is that these norms have to be engrained into a real human relationship. (Stayner, 1997: p7) The issue of reciprocation is something that potentially exists among all people but is usually evident when dealing with friends. In other words, other aspects such as civil society, trust and networks are only products of social capital but do not form part of the actual definition. It should be noted here that institutional norms do not just apply to any kind of norms. The norms under consideration in social capital are those ones that can cause an actual increase in the level of cooperation between certain groups. These norms must be linked to certain values that include honesty, reciprocity, performance of duties among others. This also means that other norms applicable in specific scenarios may not qualify as suitable ones in social capital. For instance, in some parts of Italy, there is great cohesion between members of the family but outside the family unit; individuals are allowed to take advantage of one another. Those norms are not acceptable in the definition of social capital. (Putnam, 2006: p73) Some people assert that social capital is a public good. In this respect, it is likely that private agents would not produce it in surplus. However, such a perception is dangerously misleading because of the fact that many people need cooperation in order to attain their individual needs. This means that they will create social capital as a private commodity. However, one cannot ignore the fact social capital as a private good is still vulnerable to negative and positive externalities. One example of a positive externality is the way individuals treat each other well even when those individuals do not come from their own families. Social capital can bring about negative externalities owing to the fact that the closer a group of people are to one another, the more dissociated they are from other non-members of their group. Taking the examples of Mafias in Russia; this category of individuals has a very high degree of social capital amongst themselves. However, they bring about so many problems to the community that they are dealing with. (Fine, 2001, p59) Some people have asserted that social capital caused societal problems because it encourages bureaucracies and even hatred towards others. However, this assertion is also not true because of the fact that society has its own way of dealing with vices. Additionally, other forms of capital have their negatives too. For instance, human capital has its own defects because it can create torturous situations for the affected persons. Besides that, physical capital can also be detrimental in that rifles and other dangerous ammunitions still qualify as forms of capital. Therefore, one can conclude that since social capital assists people in the process of goal achievement, then it is just like any other form of capital. The reason why social capital has generated a lot of controversy with regard to it benefits is that it has the highest number of negative externalities compared to the other forms of capital such as human and physical capital. The human mind operates in such a way that it always creates friends and enemies; this is the basis for most political systems. Consequently, when certain people cooperate with one another, then they tend to sideline others in the process. One must therefore look at the net externalities that social capital would bring to society. Another approach to social capital is considering it as a radius of trust. Groups that have social capital are likely to poses radius of trusts. When the outcomes emanating from this cooperation are positive, then this expands the groups’ radius of trust beyond its immediate circles. One can therefore assert that in a certain modern society, social capital is seen as a series of circles that tend to overlap with one another and the higher the degree of overlapping the more positive externalities associated with social capital. (Bolin et al, 2004: p69) How to measure social capital The biggest debates surrounding social capital revolve around its measurements. Many stakeholders have failed to agree on how this can be done. However, there are still some general approaches in this area. Two types of methods emerge and they include Survey data Census Survey data can be conducted on the issue of civil engagement or levels of trust within any one society. Censuses are usually conducted on specific group membership so as to engage their level of social capital. There may also be other approaches that are plausible and all these will be examined below. One expert in the field of social capital known as Robert Putnam conducted a research for measuring social capital. He used the census approach in that he counted all the civil society groups within his area of study. Here, he included groups such as political clubs, literary societies, bowling leagues and sports clubs. He compared these sizes across geographical areas and also through the passage of time. The size of each group i.e. the number of members of the civil society groups were represented by the letter ‘n’. In his case, he measured social capital as the sums of all the social membership groups as show below SC = the sum [n1...nT] Where n is the number of people, 1 is the first civil member society and t is the last number of civil society members. SC is social capital Consequently, when n and t are high, then the level of social capital is also high. This is because when n is low, then groups cannot achieving big aims. Also, when t is low, then chances are that the level of separateness in that society is high. This method has its defects because sometimes the definitions of t are not clearly laid out. In other words, it may be difficult to determine exactly how many civil societies exist in society. It is also difficult to determine how many groups were left out in between 1 to t. (Edwards, 2004: p 45) This method may also be problematic because of the fact that censuses conducted in certain areas may only focus on certain prominent civil groups and ignore others. Taking the example of a census conducted in the Yankee City in the United States. It was found that there were as many as twenty two thousand groups in a community constituting seventeen thousand members. What this meant was that the proliferation of technology has brought about so many groups that may be difficult to track. For instance, it is very difficult to measure the numbers of people who belong to online chat rooms, those who engage in email conversations among other things. Because of the inadequacies in the latter formulas, it is essential to add another aspect to it that incorporates the level of cohesiveness in a certain group. For instance, bowling leagues have no way of changing parliamentary decisions. Consequently, one should not look for ways in which they can include the level of integration between groups and this is by adding the coefficient c. This is a very difficult parameter to measure because it requires the involvement of an outsider who would asses a how a specific group is behaving in normal circumstances and also under high stress. By introducing this coefficient, then the formula for measuring social capital now becomes SC=sum of [(cn)1.....(cn)t] It should also be noted that the latter method is still not comprehensive enough owing to the fact that every group creates some externalities that are independent of the direct efforts of the group. (Harris, 2001: p 241) For example, if a religious sect is started and members are encouraged to be honest with one another, then it is likely that during their business dealings, such individuals are likely to carry forward the same principle into their business dealings and this can cause positive business outcomes in those respective societies. To incorporate this aspect, one can use the coefficient rp where r represents the group’s radius of trust. Therefore the formula for calculating social capital becomes SC= Sum [ (rp cn1)....(rp cn)t] However, one cannot ignore the fact that the radius of trust in any particular group can either be positive or negative. As indicated earlier members of the Russian mafia are likely to produce more negative externalities than other sectors. While religious groups that encourage positivity to all people regardless of their membership is likely to create positive spill-overs. In order to account for these eventualities, then the reciprocal of the radius of trust denoted by rn needs to be included in the formula as follows. SC= Sum of [ {(1/rn)rp cn}1 ...... {(1/rn)rp cn}t ] Alternatively, social capital can be measured for specific organisation through another method. In this case, one gets the changes that occurred within a certain company prior to takeover and the changes that occurred after the takeover here. (Beck, 1999: p54) Market capitalisation incorporates both intangible and tangible assets. In this case, social capital is found within the intangible assets such as management and employees within the company. It should be noted that it may be difficult trying to draw a line between other social aspects of a company’s intangible assets. Examples of the latter include things such as future market conditions, brand names, good will among others. Consequently, one must look for ways that they can use to enhance this process. When considering organisations that are being taken over, it is essential to include the aspect of premium. This is because this indicates how much the new managers believe they can handle or even manage a certain company. Premium also indicates the degree to which management regards the future among other situations. In the end, it is essential to understand that this premium may not just be a mere indication of the social capital in that firm but it may also include human capital. This method is inadequate in that is includes other parameters but one cannot ignore the fact that social capital forms an important part of the premium attached to a certain organisation. How social capital can be used to address a particular social issue The issue of informal education is particularly important in society because of a number of reasons as shown below Facilitates child development Eliminates traditional risk factors Facilities economic development Improves health When education within a certain society is rich i.e. it is a combination of both traditional teachings and informal education, then chances of social and economic prosperity are heightened. For instance, informal education facilitates child development because through social capital, informal education can teach children important norms that will be useful in their academic achievements. It also heightens the opportunities available to these individuals and also the choices that they are willing to make. (Haidt, 2006: p156) Additionally, informal education engrained and facilitated by social capital can create situations in which public areas are cleaner and safer. It can also reduce poverty levels and mobility within any give society. Many societies register greater level of crime than others because their informal education does not have the ability to encourage them to enter community organisations. Consequently, such people are not interlinked and would therefore not feel obliged to commit crimes. The Marxist school of thought puts forward the fact that poor countries’ economies remain stagnant owing to the fact that there is high degree of inequality and social / economic advantage in such countries. Consequently, when informal education is coupled with social capital, then it will go a long way in mitigating social inequalities thus enhancing the economy. If informal education is boosted by social capital, then this can enhance the overall public health situation within a respective area. This is because people would be encouraged to participate in socially building activities. These include volunteering church activities, club attendance among others. All these interactions increase life happiness and minimise the occurrence of street related diseases. (Allen, 2008: p 38) The later are the benefits that can emanate from coupling social capital with informal education. However, it is also necessary to review practical applications of how this can be done. Many informal educators utilise group memberships in clubs, organisations etc to achieve their objectives. Many approaches used by informal educators in the past revolved around formation of groups targeting certain troubled members. However, social capital necessitates a different approach. Here, the very fact that an individual has joined an organisation will reduce their chances of exhibiting those negative indications. This means that informal educators need to redirect their efforts towards encouraging people to join social organisations or other similar institutions so as to promote greater levels of cooperation. There should be a move towards creating enthusiasm for joining any of the following Social groups Health relate groups Political enthusiasts Economic groups In other words, through informal education targeting the joining of these groups, then the overall quality of education within Australia can increase. It is also imperative to remember that informal education can be linked to social networks. One cannot ignore the fact that many individuals lack the feelings of tolerance or trust among themselves yet these are important aspects of social networks. Consequently, by building these attributes through social capital, then informal education can be heightened. Additionally, informal educators can achieve the same objective through the use of dialogue among interest groups or through conversations. By doing this, they will have created an environment that promotes cooperation and this will go along in improving society’s overall performance. (Bookman, 2004: p 21) Informal educators should also be careful about the potential negatives that emanate from social networks. In other words, they promote alienation of other groups and may also bring about narrowing in society. In response to this, informal educators can teach their target groups about the need to celebrate differences between one another. In close relation to this, is that they need to teach these people how they can achieve better levels of tolerance. They can do this by celebrating those differences that seem to occur across different groups. Besides this, informal educator can look for ways in which they can promote bridging and bonding. All in all, social capital would facilitate greater achievement of these personal goals. A social capital issue relevant to my organisation The organisation under consideration is the Environmental protection agency Brisbane. This agency works towards protecting all natural resources regardless of whether they are found on land, in the sea or on air. For Australia, marine pollution and the sustainability of water resources for protection of marine life is particularly important. This is because a vast majority of Australian land is a coastline and these issues have to be addressed. (Offer, 2006: p242) The particular social issue that is related to marine life is fishing by individuals within certain areas of the coastal regions. When one examines other parts of the world such as in the Guatemalan coast, one can see that there are overwhelming cases of commercialisation within this coastal region. The overall result is that some groups have been marginalised while others are benefitting overwhelmingly out of this. This has brought about greater levels of depletion within the marine ecosystems of that area. Similarly, Australia is faced with a lot of issues in its coastal areas. There are a series of groups within the latter areas that are interested in fishing activities. These fishers can either be divided into personal fishers such as the one done by the native aboriginal people or personal fisher men who sell to bigger firms or the bigger firms themselves. Usually, corporations have their own forms of social organisation and networking, however, this is not prevalent among the individual harvesters. Most of them operate in isolation and have very minimal opportunities to supplement their incomes through commercial enterprises. What this means is that the largest portion of fishing is done by these large corporations and most of them tend to overuse fishing resources. If this is left unchecked, then it could cause a situation in which marine life is endangered. Consequently, there is a need to look for ways in which this can be minimised through social capital. One can see that instrumental processes are at work in this situation in that other groups are benefitting more than others. Additionally, there is the problem of exploitation of fishing processes by the large companies because there are minimal normative processes available to them. Consequently, one needs to look for ways in which these issues can be resolved. The first issue that needs to be tackled here is the protection of the rights of individual fisher men. Social capital can provide a solution by encouraging members of the fishing community to join their efforts by forming an organisation. By doing this, their work will be more systematic, they will have better instruments and commercial organisations will need to consider them as worthy competitors. What this will do is that it will create situations in which international firms will be prompted to move to other parts of the world that has less social capital and this will protect marine species within Australian coastal regions. (Putnam, 2006, p 76) By forming organisation and cooperating with one, fisher men in the coastal regions will go a long way in boosting equitable distribution of fishing grounds within Australian waters because these commercial companies will be encouraged to disperse their efforts to other parts of the country that are not as polluted as others. Consequently, this will protect marine life because cases of overfishing in certain areas ad minimal fishing in others will greatly reduce. Conclusion Social capital can present numerous benefits to organisations, groups and society alike. However, the negatives brought about by this concept can be mitigated by planning for the differences created Reference Stayner, R. (1997): Sense of place, social capital and rural development, The rural development centre, University of new England Paper presented to the rural Australia, 4th July, p1-12 Allen, S. (2008): The Social Economy of the Metropolis; Oxford University Press, p 34-40 Putnam, R. (2006): Diversity and Community in the Twenty-First Century; Nordic Political Science Association, p 71-80 Bolin, B. et al (2004): Bonding and Bridging - Understanding the Relationship between Social Capital and Civic Action; Journal of Planning Education and Research, 24, 3, 64-77 Harriss, J. (2001): Depoliticizing Development - The World Bank and Social Capital, Free Press, p 200-245 Fine, B. (2001): Social Capital versus Social Theory - Political Economy and Social Science at the Turn of the Millennium; Routledge, p 54-80 Offer, A. (2006): The Challenge of Affluence - Self-control and well-being in the United States and Britain since 1950; Oxford University Press, p 230-265 Haidt, J. (2006): Putting ancient wisdom and philosophy to the test of modern science; Heinemann Publishers, p 144-160 Edwards, M. (2004): Civil Society; Polity Press, p 38-79 Bookman, A. (2004): How working families can build community and survive the new economy; Routledge, p 4-33 Beck, U. (1999): World Risk Society; Polity Press, p 42-68 Read More