The effects of social capital on cost-effective behaviors and practices in nonprofit organizations

Organizational social capital refers those workplace behaviors and relationships (i.e. trust, social networks, and sociability) that create economic benefit for the organization. While the concept is still largely theoretical, many suggest organizational social capital would contribute to cost-effective practices (absenteeism, discipline problems, tenure, and productivity). This concept could help nonprofit agencies save money while improving program outcomes.; The main research question was: Are employees in nonprofits with higher organizational social capital more likely to engage in behaviors that are cost-effective for the nonprofit? To evaluate, eight scales were used to measure the three dimensions of organizational social capital in two North Texas nonprofits. The scale reported a high reliability. This scale was compared with an instrument and agency statistics regarding cost-effective behaviors. Both agencies reported about the same level of social capital and cost-effective behaviors.