Application of the cost-benefit analysis evaluating the impact of corporate social capital

Abstract

The article presents some contemplation regarding the possibilities to apply the well known and popular among the economists cost-benefit analysis method for evaluation of impact of corporate social capital. Since social capital and its impact at (he big part are intangible and hardly measurable there are some particularities in applying cost-benefit analysis in the field of corporate social capital. It is more similar with evaluation of public projects where the scale of some impact can only be presumed on the basis of subsidiary indicators. Summarizing on the analysis of the relevant scientific literature three main positions of the benefit and six main positions of the costs of corporate social capital were established. These ones are used as the criteria for the evaluation of benefit and cost of corporate social capital in the model of evaluation of the impact of corporate social capital on the operation of enterprises. The simple comparison of benefit and cost is used for calculation of aggregate impact of corporate social capital as the existent stock of social capital is analysed. As social capital is complex factor, three different forms of corporate social capital where considerate when building the model of evaluation of the impact of corporate social capital on the operation of enterprises: bonding, bridging and relational social capital The empirical investigation conducted in Lithuania among micro enterprises proved the method for evaluation of impact of corporate social capital to be easily adaptable and useful in this field.