Question

Select a COMPANY for which you believe its social capital is vital to its competitive advantage and support your arguments.

*Please use the different answers from the chegg because my friends already using it. Thankyou.

Answer 1

As a company, TATA along with its wide portfolio of companies comes to mind when thinking of social capital as competitive advantage. The arguments are below:

1. As a company, TATA has always worked towards conducting businesses responsibly, taking into account the law of the land, generating substantial employment opportunities and developing communities while growing their own businesses.
2. Through their CSR activities, they have undertaken various programs to improve health, education while empowering women and other dependent and backward sections of the society.
3. They also undertake various initiatives within their company to motivate employees to contribute towards the society by being a part of cleanliness drives, educational drives, mental health awareness, etc.
4. The word 'trust' comes first to mind when thinking of TATA as they have worked for decades towards fostering a sustainable ecosystem. Any stakeholders involved with TATA feel that sense of security and trust around them.
5. This social capital advantage has helped TATA immensely in generating revenues year after year as more and more stakeholders/clients want to work with TATA. These clients feel that TATA as a brand is very ethical and hence do not think twice before conducting business with them. A recent example is TATA Consultancy Services which crossed $100 Billion evaluation in market cap.