The social functions of business and the prerequisites for creating social capital

There is currently an ongoing discussion in Russian scientific circles by representatives of social and humanitarian sectors about the fundamental causes of crisis in economics. Crisis in economics, as well as the Global Financial Crisis in 2008-2010, have triggered Russian and foreign researchers to search for new methodological approaches to defining a common vector (context) for scientific development, addressing interdisciplinary research, and advancing new hypotheses, ideas, concepts and technologies. One of the topics of being discussed now by the scientific community is connected with the changing views on the role of business, especially big business, in modern society by exposing contradictions when using indicators characterizing economic growth as the main objective and means for solving contemporary national and global problems. The topic is also connected with putting forward regulations to increase the significance of social environment in a person’s life, as well as in organizations, the national economy, and in the need for additional economic effectiveness parameters. This is accomplished by using indicators for social development, as well as subjective indicators for a human’s perception of his surroundings (work and organizations, family values, the natural environment). The key question, which is connected with the search for a new model of social development, should be presented in the following way: ‘How would a system look where fairness was the stimulus, rather than an impediment, for growth, and not simply effectiveness, but innovation that ensures human development.’ The social (e.g. social justice) and economic functions of business (e.g. effectiveness) are not contradictory in today’s day and age, and actually complement each other by forming a basis for the simultaneous creation of value and benefit for society. This is connected with the changes taking place in the business practices of modern companies. The basic business practices of companies are connected with the following processes: 1. The development and improvement of products/services, and the mastering of new markets. However, it is important to clearly understand that for any goods today (information, knowledge, production, services), the result is the synthesis of industrial applications and social technologies. 2. Dealing with suppliers and the increasing value of supply channels. Drawing partners into the creation of a shared value at an additional cost is not possible without using developed channels of communication, partnership networks, trust in the supply chain, without a defined culture of partner relationships, and the creation of common policies on the ‘sensible’ use and management of joint processes. 3. Recruiting, retaining and motivating personnel; personnel involvement; attracting employees to management positions; raising the loyalty of personnel to the company. If an employee strives towards development and self-realization, and in the organization there is the corresponding social environment and atmosphere, then he will more actively take part in decision making, influencing the solving of various problems and tasks. 4. Innovation and education; creating various partnerships (partnership networks, cooperative communication, etc.). The orientation of business towards ‘open innovation’, as well as social networks, made the development of social technologies and the fulfilment of social functions by business relevant. In this way, the trends and processes mentioned above actualized the handling by the social sciences of the concept of ‘social capital’, which was partly considered to be ‘social innovation’ by researchers.

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