Social Capital Assessment and Accountancy

Measuring Performance

Social Capital Assessment and Accountancy

What is the company Human and Social Capital I am about to acquire or with whom I am about to merge? Is this a Liability or an Asset?

Has my company developed its full potential on Human and Social Capital?

  • Social Capital is the addition of Human Capital and Social Capital that, combined, represent a flow of benefits for society.
    • Human Capital is the knowledge, skills, competencies, and attributes embodied in individuals that facilitate the creation of personal, social, and economic well-being.
    • Social Capital is the networks together with shared norms, values, and understanding that facilitate cooperation within and among groups. 
  • Social and Human Capital and Economic Activities are interlinked:
    • Economic activities are dependent on Social and Human capital (regulatory framework, skilled talent pool of personnel, labor productivity, value chain trust, and reputation)
    • Economic activities modify the Social and Human Capital through impacts (land rights, taxes, inequalities, working conditions, value chain stress).
  • Analyzing dependencies and impacts on Social and Human Capital helps to identify and assess risks and opportunities that translate into the income statement and balance sheet.
  • Triple Sustainability performs the Social and Human Capital Assessment through the application of the first 8 steps of the Social and Human Capital Coalition methodology. Step 9 (Take actions) corresponds to the entity.
  • Triple Sustainability accounts for the balance sheet and profit and loss account of Social and Human Capital following an own methodology aligned with the concepts of Natural Capital Accounting for Organizations.

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