No Social Capital = Likelihood of Failure
Your Social Capital = Likelihood of Failure
Frustrated by managing IQ, EQ, and all the other Q’s coming across your desk these days? Unfortunately, I have bad news: we now have another Q to watch out for: Social Capital Quotient. Only this one goes deeper than an unpleasant work relationship or accommodating a new communication style. This one has the potential to run your organization right into the ground. (Just ask Wells Fargo.)
Deloitte’s 2018 Human Capital Trends Report states “the growing importance of social capital in shaping an organization’s purpose, guiding its relationships with stakeholders, and influencing its ultimate success or failure.”
This is driven by three key trends:
Millennial’s individual decision-making power is growing and includes everything from employment to purchasing decisions.
Higher public trust that businesses will do the right thing (vs. governments)
The ability for technology to funnel its collective power for good.
What does this mean for your organization?
You need to be considering your vision and purpose to connect with your future stakeholders.
You need to ensure your organization is aligned with its ethical requirements to avoid eroding your organization’s reputation
You need to consider social impact as you look for new organizational innovations.
Yet even though leaders are aware of this changing need, huge gaps exist between awareness and effective action. In fact, while the 78% of the investment community is increasing its funding to CSR-related companies, only 18% of CEOS state this work is reflected in its organizational strategy.
As the report sums up, “In the era of the social enterprise, stakeholders are taking an intense look at organizations’ impact on society, whether it is how well a product meets people’s needs, how a manufacturing plant affects the community, or how employees feel about their jobs. This mirror—held up to businesses by society—reflects an organization’s identity for all to see, and burnishing that reflection is now vital for success.”
Is someone holding the mirror up for you?
Do you like what you see?
(If the answer to either of these questions is “No.” I can help.