ABSTRACT
This chapter explores the question: when is it ethical to allow social capital to give to some access to resources at favorable terms and levels and to deny others the same opportunities. The answer is it depends first on generally held moral values. It depends on the kinds of social capital being employed. Social capital does alter the terms and level of resource allocations, and this fact should not be ignored if we really want to advance our understanding of interpersonal transactions and ethical behavior. The chapter explains even in the case of formal institutions, social capital plays a critical role in the creation of the attachment value necessary for their support. It describes that shared attachment values for ethical rules are essential to resolving ethical dilemmas. Values are best transferred through informal institutions associated with family, religion, and community. Social capital plays an important role in the transmission of values.
