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This is an enhanced edition of the HBR reprint R0106E, originally published in June 2001. HBR OnPoint articles save you time by enhancing an original Harvard Business Review article with an overview that draws out the main points and an annotated bibliography that points you to related resources. This enables you to scan, absorb, and share the management insights with others. Business runs better when people within a company have close ties and trust one another. But the relationships that make organizations work effectively are under assault for several reasons. Building such "social capital" is difficult in volatile times. Disruptive technologies spawn new markets daily, and organizations respond with constantly changing structures. The problem is worsened by employees'' working off-site or on their own. The authors describe how managers can help their organizations thrive by making effective investments in social capital. For instance, companies that value social capital demonstrate a commitment to retention as a way of limiting workplace volatility. Managers can foster cooperation by giving employees a common sense of purpose through good strategic communication and inspirational leadership. Other methods of fostering cooperation include rewarding the behavior with cash and establishing rules that get people into the habit of cooperating.