Relational Capital

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Description of Relational Capital. Explanation.

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Definition Relational Capital. Description.

Relational Capital is a category of Intellectual Capital or Intangible Assets that is created and maintained by having, nurturing and managing good relationships with clients, suppliers, employees, governments, other stakeholders and even competitors. Elements can include the value of things as:

The Networks that an organization is part of.
The Strategic Alliances, Joint Ventures, Coalitions a firm has formed.
The corporate brands, Brand Loyalty, good Brand Management.
The Corporate Reputation.
Goodwill, customer satisfaction, Customer Permission, client relations, Customer Loyalty.
Relationships with government agencies and other stakeholders.

Notice that the value of relationship capital is based on both the sheer presence of certain relationships and on the capability to handle and manage the relationships well. For example, the leadership and charisma of the Chief Executive Officer, who recognizes and commits to leveraging this value category, can be a major factor in the creation of relational capital. It is also referred to as Market Capital.

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