Social Capital: An Opportunity for Companies to Create Value in New and Unexpected Ways

Dec. 2, 2013 - PRLog -- — Move over traditional media, the rise of social networks has risen to prominence in how a company’s products, services and offerings are perceived as well as contributing to organizational culture and productivity. A recently published white paper by the Performance Improvement Council (http://www.thepicnow.org/) (PIC) of the Incentive Marketing Association (http://www.incentivemarketing.org/) (IMA) entitled “Business is Social: How Companies are Creating New Sources of Value,” (http://c.ymcdn.com/sites/www.thepicnow.org/resource/resmgr/Docs/Business_is_social.pdf) asserts that business is inherently social, therefore companies create value not just in the goods and services provided, but also from the networks and social interactions they facilitate.

In the paper, PIC Executive Team member and Maritz Vice President Jerry Klein asserts that companies create value through the social networks they build and foster. This value is known as ‘social capital.’  Social capital extends the axiom that the customer knows best to the level that customers are one of a company’s greatest influencers -- influencing the external brand perception as well as the internal product innovation cycle.

Klein explains that “not only can companies innovate and create new sources of value for themselves, but companies can generate greater value and meaning for the network itself by enlisting customers in the process of updating products and solutions ... Enabling people to participate in a higher purpose than just making widgets is a key part of building a powerful brand with a mission and meaning that resonates with multiple stakeholders.”

Social capital is as important outside of a company as within. According to Klein, it’s important to acknowledge the social capital that exists within a company. An important element of internal social capital is recognizing behaviors that enhance a company’s mission, vision, values and purpose. “Formal recognition programs allow companies to recognize and celebrate the behaviors that create a unique internal brand and culture,” noted Klein.

Is traditional media dead? Hardly. However, traditional marketing is not the behemoth it once was. A company that thinks about how it can maximize its networks of people, nourish and grow its social capital - internal and external - has the opportunity to create greater value for all constituents and enhance its business.

To view the complete paper, visit www.thepicnow.org and click on the link from the home page.

The Performance Improvement Council (PIC) is a strategic industry group within the Incentive Marketing Association. It is a professional organization of performance marketing executives collectively focused on helping companies optimize their investment in human capital through proven and innovative reward and recognition solutions. More information is available at  www.thepicnow.org.

Business improves when employees and customers are recognized, rewarded, and engaged through effectively structured programs with defined goals and proven returns. The Incentive Marketing Association (http://www.incentivemarketing.org/) (IMA) is comprised of the companies who are leaders in the incentive industry.  IMA provides education, resources and research to promote the use of incentive programs to the business community and is the umbrella organization for the Global Incentive Council (GIC), the Incentive Gift Card Council (IGCC), the Incentive Manufacturers & Representatives Alliance (IMRA), the Incentive Travel Council, the Performance Improvement Council, the Recognition Council, IMA-Australia Council, IMA-Canada Council and IMA-Europe Council. More information about IMA and the incentive marketplace is available at http://www.incentivemarketing.org/