BUSINESS SOCIAL CAPITAL: PURPOSE, FORMATION AND REALIZATION STRATEGIES

Abstract

The determining role of social capital in post-war reconstruction of Ukraine has been proven. Social capital is considered as a category of economic theory, and its purposes, conditions and reproduction strategy as a category of capital at the business entity level. It is shown that for Ukraine’s recovery, it is necessary to actively reproduce the social capital of the state, and first of all –– at the level of business entities; the main product of social capital is trust, which contributes to increasing the efficiency of an economic entity through building market’s trust in it; the conditions for building trust are freedom and justice, which should prevail in society’s socio-economic relations.

It is proved that social capital should be considered in the context of economic theory and practice as an investment in the reproduction of social resources of society at all its levels to increase the efficiency of the economy and, accordingly, the population’s standard of living. It is shown that it has the components that determine capital in its classical sense. The result of social capital realization is an increase in the efficiency of the economy, which results from the growth of trust of market, including labor market, in business. It is determined that in the formation of social capital of a business entity, modern marketing technologies, which build market’s trust in it, and social management, which contributes to the formation of its internal social capital, are of great importance.

The reproduction of social capital in Ukraine at the level of business, the state and its social entities is not acceptable, as evidenced by the unsatisfactory position of Ukraine in many world rankings that reflect the level of social capital.