Trust, reciprocity, and cooperation: these three elements make social capitalism an ideal form of an emerging structure with the sole purpose of building networks and producing resources that contribute to the common good.
In definition, social capitalism is related but is structurally different from its classic counterpart. The term, in modern times, is a society-centered form of capitalism which primary goal is to contribute to the society. Here, the production of goods and services are not controlled as personal assets but a property produced to address the needs of the community.
As a practice, social capitalism revolves around the maintenance and development of social networks, a collective group of people helping each other to achieve common goals. These networks can be diverse and they usually pursue different causes.
Social capitalism and social capital
In social capitalism, capital is defined as a factor of production where society agrees to the value of its origins and accounts for it. Unlike its classical counterpart in which land, labor, and capital are the primary factors to make the system work, a social capital in the modern sense cannot be traded and cannot be privately owned. Instead, ownership is rooted in social links, networks, and relationships among people. Furthermore, social capital is not created to satisfy productive economic outcomes.
With all its benefits and contribution to the community, social capitalism is not the same as philanthropy or a charitable cause. Instead, it’s a structure that is designed to endorse capital for the common benefit through the markets either directly by an individual or by a group, responding to social issues and at the same time, making a profit.
Beyond its somehow altruistic nature, social capitalism has also helped develop policing strategies among communities. This form of capital became an important catalyst for change and has been utilized by leaders to increase efficiency and effectiveness.