 Erosion of social capital and the crisis of democracyWon-Yong Oh Chapter 5 in Market Capitalism and Social Responsibility, 2026, pp 76-95 from Edward Elgar Publishing Abstract: This chapter examines the erosion of social capital and its implications for democracy and economic stability. Social capital—trust, norms, and networks—has long enabled cooperation across communities and institutions, yet its decline, driven by inequality, polarization, digital fragmentation, and institutional distrust, undermines both governance and the predictability essential for business. For corporations, the erosion of trust translates into higher transaction costs, reputational risks, and challenges in strengthening stakeholder cohesion. The weakening of bridging social capital, in particular, has fragmented societies into isolated groups, fueling tribalism and eroding consensus. Polarization, filter bubbles, echo chambers, and populism intensify democratic fragility, while economic inequality further corrodes trust and cooperation. Ultimately, the chapter underscores that rebuilding social capital is not only a democratic imperative but also a strategic necessity for firms seeking resilience, innovation, and sustainable stakeholder relationships. Keywords: Social Capital; Trust; Political Polarization; Populism; Stakeholder Cohesion; Economic Stability (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:elg:eechap:25938_5 Ordering information: This item can be ordered from Access Statistics for this chapter More chapters in Chapters from Edward Elgar Publishing |
Is your work missing from RePEc? Here is how to contribute.
Questions or problems? Check the EconPapers FAQ or send mail to .
EconPapers is hosted by the
School of Business at Örebro University.