Each aspect of social capital is supposed to generate some sort of economic benefit for a given company. For instance, the institutional capital has to do with formal and informal constraints (rules, laws, constitutions, norms of behavior and conventions) while relational capital has to do with human interaction (trust, norms and networks).
When it comes to moral capital, it is classified as the benefits that come from moral norms and behaviors ( sense of justice, beneficence and temperance).
It is also the relationship between micro and macro economic growth and moral values. Companies that impact positively of society are also highly profitable. MacKey & Sisodia
Finally the spiritual capital has to do with motivation, purpose and meaningful actions influencing human behavior.
Spiritual comes from the Latin word spiritus which means ” That which gives vitality or life to a system” . Thus, it is concerned with human life purpose and how it can be infused with meaning.
The four social capital aspects do collectively influence human resources management practices since they are all interconnected.
This viewpoint is based on the practice of conscious capitalism in which a company should have an inspiring vision and be driven by a higher purpose than just profits.
In that way, employees are motivated to work, because they feel helpful. Their lives also have a higher purpose since they are contributing to a better society in a major or minor scale through the company. The company itself should act as a vehicle impacting positively on the community, creating value to all its stakeholders.
Heslam, P. Jones, I. Pollitt. M. (2009) ‘How a social capital approach can help multinationals show ethical leadership’ Centre for Business Research University of Cambridge [Online] Available at: http://www.cbr.cam.ac.uk/pdf/WP388.pdf ( Accessed: August 12 2013)
MacKey, J. Sisodia, R. (2013) ‘Conscious capitalism’ Working for good [Online] Available at: http://www.workingforgood.com/2011/08/04/its-just-good-business-2-%E2%80%93-conscious-capitalism (Accessed: August 14 2013)