About/Altruistic Capital

How selfish soever a man may be, there are some principles in his nature, which interest him in the fortune of others and render their happiness necessary to him, though he derives nothing from it except for the pleasure of seeing it… the greatest ruffian, the most hardened violator of society is not without it.

Adam Smith · The Theory of Moral Sentiments (1759)

Altruistic Capital

Altruistic capital is our relational capacity, our ability to recognise our interdependence with others and to act on that recognition. Humans have an intrinsic desire to contribute to others, in part because contribution is itself a form of connection. When contribution is experienced in this way, acting for others can be intrinsically rewarding; it need not require a trade-off between our own flourishing and that of other people.

More important still, altruistic capital can spill over between domains. The capacities people develop by contributing in one relationship or context, whether at home, at work or in their community, can carry over to others. And as people engage in fulfilling forms of contribution, contributing can become habitual, so altruistic action can be self-reinforcing.

That is why we treat the capacity to contribute as a form of capital. Just like other forms of capital, it can accumulate through investment or be depleted. These capacities are not simply fixed characteristics of individuals. Organisations and institutions can create environments that either strengthen or deplete the relational capacities that underpin altruistic capital.

The founding paper

The concept is set out in full in Altruistic Capital (Ashraf and Bandiera, American Economic Review 107(5), May 2017).