The model of evaluation of impact of corporate social capital on the operation of enterprise and its application

Abstract

Concept of corporate social capital has gained significant attention of academicians and practitioners from different backgrounds recently. Social capital enables efficient cooperation, facilitates exchange of knowledge and information, lowers the costs of contracts and has many other positive impacts. But it can also become an obstacle for goal achievement or cause losses because of the improper investment or over investment. Hence, the need for the instrument for the evaluation of corporate social capital impact occurs. Yet most models presented in the scientific literature are directed toward the evaluation of solely positive or negative side of impact of corporate social capital. There is no attempt to integrate the theoretical and methodological findings on evaluation of the impact of corporate social capital in order to develop the instrument for the evaluation of aggregate impact of corporate social capital. The article presents the model for the evaluation of aggregate impact of corporate social capital on the operation of enterprise based on the method. The model encompasses the relevant conceptual fundamentals of corporate social capital and can be applied for any enterprise despite its size, activity, durability, etc. The criteria for the evaluation of positive and negative impact of corporate social capital presented in the scientific literature were summarized and systemized in the limited in number list of evaluation criteria, Comparison of the positive and negative impact of corporate social capital enables to find the over all impact of corporate social capital on the operation of enterprise.