This was an idea that I have talked about in Discord before, but I believe that this element would add another element of gameplay experience to our settlements. For example, social buildings for our colonists that would enable community based functions would increase this stat, and having issues in the settlements could make this lower. Also, since more affluent settlements could be more vulnerable to social decline, adding in extra services could help prevent that from happening.
what kind of buildings are you thinking of? and how does it differ from entertainment?
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I see this stat as more of a mental health type of thing that can influence productivity and also can influence the chance of civil unrest if it gets too low, like how protests worked in MC1.