Better relationships make for better business

New factors may influence bottom line

Researchers from Simon Fraser and York Universities are testing the theory that trust, a cooperative spirit, and shared understanding between a company and its stakeholders increase business value.

The research, sponsored by the Canadian Institute of Chartered Accountants (CICA), seeks to determine how important “social capital” is to corporate success. Social capital is defined as the relationships among people that facilitate collective action and access to resources.

The research has the following objectives:

•develop a system to measure social capital;
•examine successful companies to determine whether there is a correlation between high social capital and increased revenues; and
•assuming there is a correlation, determine how to create and manage social capital.

The research team has completed a report detailing its initial findings. For more information, contact the CICA, [email protected].

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