The importance of Bourdieu's "social capital" for family businesses in Asia

For Asian families, "social capital" can facilitate the creation of strong ties and bonds at the local and international levels, and this process is often achieved through the possession of "cultural capital".

For people living in one of the most commercialized cities in the world, Hong Kong, it may sometimes feel like money is the only thing that matters in this place, and we sometimes see what seems to be a blind worship of material possessions. However, as the France sociologist Pierre Bourdieu argues, while money is important, it is not enough to focus solely on "economic capital" – that is, transferable money and property – as the sole determinant of social outcomes. In his book The Forms of Capital, Bourdieu proposes the concepts of "social capital" constructed through the Internet and "cultural capital" through education, which are rare and worthy of pursuit, in addition to money.

Indeed, despite the high degree of fungibility and significant overlap between the various forms of capital, it is overly simplistic and undesirable for a family business to focus solely on money. In fact, we believe that "social capital" is particularly important for family businesses in Asia. According to Bourdieu's definition, "social capital" refers to resources linked to an institutionalized network of relationships that provide each member with the support of "credentials" that enable them to obtain credit in different senses.

Needless to say, in Asia, a common ancestral origin or a common dialect (such as Shanghainese or Cantonese) can facilitate initial interactions between families and gradually establish ties and bonds. Sport and music serve as universal languages that bring people from different backgrounds together in their respective fields to promote a common interest or passion. Alumni relationships are especially strong between people who share the same alma mater, as are those formed through a variety of clubs and associations that serve a specific group of people.

On the global stage, "social capital" enables Asian families to develop relationships across borders and cultures, especially in times of heightened geopolitical uncertainty, where human interaction is particularly important. Alibaba's co-founder, Joseph Tsai, for example, broke away from traditional Western dominance in the sports sector and became one of the first Asian investors to venture into the international sports industry, building bridges across continents.

蔡崇信担任BSE Global的董事长，该公司旗下包括布鲁克林篮网队（Brooklyn Nets）；他还拥有女子国家篮球联盟（WNBA）的纽约自由人队（New York Liberty），以及国家长曲棍球联盟（National Lacrosse League）的圣地亚哥海豹队（San Diego Seals）和拉斯维加斯沙漠犬队（Las Vegas Desert Dogs）。

In Korea, GS Energy CEO Yongsoo Huh has also used his "social capital" to become a patron of the arts in Korea and overseas. Heo has served as president of the Korea National Ballet Association and serves on the boards of the National Museum Association of Korea, the Seoul Philharmonic Orchestra, and the Korea National Contemporary Dance Company. His collection of works by young Korea artists has been exhibited at the University of Oregon, while he also supported the Korea Symphony Orchestra's debut in the Arab world, performing the Korea composer's Arirang Festival Symphony at the Abu Dhabi Festival.

Most recently, Heo also served as the chairman of the Korea National Choir Competition Committee, the largest choir competition in the world. As President, he emphasized that the theme of the 2023 competition is "Peace and Prosperity for All Mankind", sending a message of hope for the world recovering from the COVID-19 pandemic. Choral singing as a medium facilitates the construction of networks, relationships, and social interactions on an international scale.

Meanwhile, as a second-generation member of Hong Kong-based real estate company Hang Lung Group, Annie Chen founded the Sustainable Finance Initiative, sharing her pioneering experience in impact investing and building an active network with other family offices in Asia based in Hong Kong, Taiwan and Singapore dedicated to their impact investing journeys.

Chen also launched the Natural Capital Initiative in her family office to bridge the huge funding gap in global biodiversity financing and provide seed funding and practical support to Asian entrepreneurs in projects to protect and restore natural assets such as land, air, plants and animals. In these projects, Chan has developed "social capital" not only for her and her family, but also for other stakeholders in the Asian sphere of influence.

Of course, the third type of capital, "cultural capital", also greatly promotes the accumulation of "social capital". According to Bourdieu, this capital acquired through education can exist in three forms: the first is the "state of objectification", which exists in the form of cultural goods (e.g., pictures, books, dictionaries); the second is the "institutionalized state", which exists in the form of degrees and educational qualifications; The third, and most interesting, form, is the "internalized state", which manifests itself as persistent mental and physical habits.

The third state suggests that "cultural capital" is not limited to the hard knowledge of science, mathematics or the humanities, but also includes the soft skills of thinking and acting: how to think about social issues, how to contribute to public policy, how to applaud at concerts, how to show sportsmanship in competitions, how to socialize easily at gallery openings, how to host at dinner parties or be entertained as guests.

To be clear, we are not against the importance of money, because economic capital is in many cases the most important capital. However, especially for Asian families, "social capital" can facilitate the creation of strong ties and bonds at the local and international levels, and this process is often achieved through the possession of "cultural capital". Indeed, without denying the importance of material wealth, we advocate a more balanced view, taking into account "social capital" and "cultural capital", in addition to a broader perspective, and at the same time more courageously acknowledging the limitations of capitalist urban money worship.