Social capital, trust and intercultural interactions

Abstract

The main aim of this chapter is to introduce readers to the idea of social capital. Then relationships between social capital and trust are analyzed. Finally, both these ideas are placed in the context of multicultural organizations. The term ‘social capital’ appeared in the 1960s. Social capital is identified as symbolic common goods of a society, which foster the development of social trust and norms of reciprocity, which in turn leads to more effective forms of organization. Social capital is an aggregate of variables determining the nature of secondary relationships. It can also be seen as a skill of interpersonal cooperation within groups and organizations in order to realize common interests. Interpersonal trust is an important factor determining relationships, both in the family and in the organization. Interpersonal trust is a reflection of a resource of experience and observation of a person, which would allow him or her to predict that confidence in the given person meets expectations. The chapter draws clear boundaries between trust and social capital, at the same time explaining and exploring implications of these two perspectives on the issue of organizational management in a multicultural context.