Research paper: Social Capital and Social Indicators: Building Organizational Health in the Modern Economy


Executive Summary

This paper introduces a new management theory using social capital indicators as modern measures of organizational health.

Traditional human capital management theory, which focuses on individual performance, does not sufficiently articulate the influence of social dynamics on leading indicators of organizational productivity such as group cohesion, decision making processes, or diversity. As a result, there is a gap in the value equation.

We discuss the opportunities presented by social capital, the productive value of interpersonal relationships between employees and groups. We hypothesize that Respect, Inclusion, and Ethics are core behavioral competencies that can be taught and measured, and that they are predictive of business outcomes.

We introduce a competency model based on Respect, Inclusion, and Ethics, and a framework of Workplace Social Indicators that organizations can use to measure and manage organizational health and productivity. More importantly, these are leading indicators that enable executives to proactively govern the business, and mitigate risk.

We are currently implementing components of this model and framework with a variety of leading organizations. We welcome thought partners as we continue our research.

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