The Sigma Project

Introduction How to use Foreword Executive summary SIGMA Principles Principles at a glance Accountability The 5 capitals Natural capital Human capital Social capital Manufactured capital Financial capital Other approaches Management Framework Views on the Guidelines

‘Social capital’ is any value added to the activities and economic outputs of an organisation by human relationships, partnerships and co-operation. Social capital includes, for example, networks, communication channels, families, communities, businesses, trade unions, schools and voluntary organisations as well as cultural and social norms, values and trust.

Why it is important to organisations?
Organisations rely on social relationships and interactions to help them to achieve their objectives.

Internally: social capital takes the form of shared values, trust, communications and shared cultural norms that help people to work cohesively and so enable organisations to operate effectively.

Externally: social structures help create a climate of consent and understanding, or a licence to operate, in which trade and the wider functions of society are possible. Organisations also rely on wider socio-political structures to create a stable society in which to operate, e.g. government and public services, effective legal systems and security arrangements, trade unions, schools and other organisations.

Ways organisations can enhance social capital

Support the development of the community in which the organisation operates, including economic opportunities (e.g. the use of local service providers, suppliers and produce).

Provide safe, supportive living and working conditions, including family-friendly policies.

Ensure ethical sourcing of materials and fair treatment of suppliers, customers and citizens.

Respect and comply with local, national and international law.

Pay taxes and be supportive of the social infrastructure.

Implement effective communication systems throughout the organisation, reflecting shared values and objectives.

Offer reasonable pricing, accessibility of products and services, and fair and accurate claims in promotional material.

Minimise the negative social impacts of products and services and maximise the positive.

Promote a culture where corruption and the payment of bribes are unacceptable, including provision for the anonymity and support of ‘whistleblowers’.

Contribute to open, transparent and fair governance systems.

the SIGMA project || guidelines || toolkit || R&D streams || practical experience