Type of Capital |
Definition and Concepts |
Author |
Social |
It is about the common behavior patterns and values shared within and outside an organization. An organization can demonstrate its concern with the social issue by presenting: 1) relationships with the local community; 2) equal opportunities; 3) respect for human rights; 4) concern with education and training; 5) low employee turnover rate; 6) employees governed by collective agreements; 7) monitoring of employee complaints; 8) existence of codes of ethics and conduct; 9) low rates of accidents at work and absenteeism; 10) analysis of the impact of products or services provided by the organization, on the health of those who use them, and 11) expenses to maintain the level of customer satisfaction. |
IIRC (2014IIRC - International Integrated Reporting Council. (2014). The International Integrated Reporting Framework. <https://integratedreporting.org/wp-content/uploads/2015/03/13-12-08-THE-INTERNATIONAL-IR-FRAMEWORK-Portugese-final-1.pdf>. https://integratedreporting.org/wp-conte...
); Dočekalová and Kocmanová (2016Dočekalová, M. P., & Kocmanová, A. (2016). Composite indicator for measuring corporate sustainability.Ecological Indicators,61, 612-623. https://doi.org/10.1016/j.ecolind.2015.10.012 https://doi.org/10.1016/j.ecolind.2015.1...
); Goede (2018Goede, M. (2018). The Corporation: A circular process of value creation.Archives of Business Research, 6(5), 113-124. https://doi.org/10.14738/abr.65.4556 https://doi.org/10.14738/abr.65.4556...
). |
Natural |
It refers to environmental resources - renewable and non-renewable - and their processes associated with the environment, production of goods or provision of services by an organization. An organization can demonstrate its concern for the environment by presenting: 1) energy efficiency; 2) origin of materials and raw materials; 3) consumption of fuel for transport; 4) Water consumption; 5) amount of land occupied for their activities; 6) waste production; proportion of hazardous and recycled waste; 7) greenhouse gas emissions; 8) number and amounts associated with violations of environmental regulations and 9) investments and expenses to guarantee the environment. |
IIRC (2014IIRC - International Integrated Reporting Council. (2014). The International Integrated Reporting Framework. <https://integratedreporting.org/wp-content/uploads/2015/03/13-12-08-THE-INTERNATIONAL-IR-FRAMEWORK-Portugese-final-1.pdf>. https://integratedreporting.org/wp-conte...
); Ambrozini (2017Ambrozini, L. S. (2017). Pressões internas e externas na utilização de padrões de divulgação de informações socioambientais amplamente aceitos: uma análise sobre estrutura de governança corporativa, ambiente institucional e a perspectiva de legitimação.Revista Contemporânea de Contabilidade,14(31), 3-26. http://doi.org/10.5007/2175-8069.2017v14n31p3 http://doi.org/10.5007/2175-8069.2017v14...
); Dočekalová and Kocmanová (2016Dočekalová, M. P., & Kocmanová, A. (2016). Composite indicator for measuring corporate sustainability.Ecological Indicators,61, 612-623. https://doi.org/10.1016/j.ecolind.2015.10.012 https://doi.org/10.1016/j.ecolind.2015.1...
). |
Financial |
Set of resources available in the organization to produce goods and/or provision of services. The disclosed data must be relevant and faithful to reality, ensuring an effective reduction in information asymmetry. An organization can demonstrate its concern with finances if it presents: 1) costs - total, personnel and operational; 2) investment and return on investments; 3) economic results - sales, profit, added value, turnover, cash flow and market share; 4) supplier reliability; 5) financial value of sanctions; 6) investment in research. |
IIRC (2014IIRC - International Integrated Reporting Council. (2014). The International Integrated Reporting Framework. <https://integratedreporting.org/wp-content/uploads/2015/03/13-12-08-THE-INTERNATIONAL-IR-FRAMEWORK-Portugese-final-1.pdf>. https://integratedreporting.org/wp-conte...
); Villiers and Sharma (2020Villiers, C., & Sharma, U. (2020). A critical reflection on the future of financial, intellectual capital, sustainability and integrated reporting. Critical Perspectives on Accounting, 70, e101999. https://doi.org/10.1016/j.cpa.2017.05.003 https://doi.org/10.1016/j.cpa.2017.05.00...
); Dočekalová and Kocmanová (2016Dočekalová, M. P., & Kocmanová, A. (2016). Composite indicator for measuring corporate sustainability.Ecological Indicators,61, 612-623. https://doi.org/10.1016/j.ecolind.2015.10.012 https://doi.org/10.1016/j.ecolind.2015.1...
) |
Manufactured |
Manufactured physical objects or goods - non-natural - available in the organization to produce goods and/or provision of services, such as constructions, buildings, ports, power plants, equipment and infrastructure. |
IIRC (2014IIRC - International Integrated Reporting Council. (2014). The International Integrated Reporting Framework. <https://integratedreporting.org/wp-content/uploads/2015/03/13-12-08-THE-INTERNATIONAL-IR-FRAMEWORK-Portugese-final-1.pdf>. https://integratedreporting.org/wp-conte...
); Sukhari and Villiers (2019Sukhari, A., & Villiers, C. (2019). The influence of integrated reporting on business model and strategy disclosures. Australian Accounting Review, 29(4), 708-725. https://doi.org/10.1111/auar.12264 https://doi.org/10.1111/auar.12264...
); Diz et al. (2017Diz, A. J., Mantovani, D. M. N., & Lucas Júnior, D. (2017). A Relação entre a Percepção Sobre a Implantação dos Mecanismos de Governança Corporativa e o Comprometimento Organizacional: A Visão do Colaborador. XIX ENGEMA. São Paulo, SP, Brasil. ). |
Intellectual |
They are the intangible assets of an organization based on the knowledge generated, such as patents or organizational culture. It must be measured, reported and managed properly so that the value to the business is not only maintained but developed. It is a complex measurement and disclosure capital. |
IIRC (2014IIRC - International Integrated Reporting Council. (2014). The International Integrated Reporting Framework. <https://integratedreporting.org/wp-content/uploads/2015/03/13-12-08-THE-INTERNATIONAL-IR-FRAMEWORK-Portugese-final-1.pdf>. https://integratedreporting.org/wp-conte...
); Badia et al. (2019Badia, F., Dicuonzo, G., Petruzzelli, S., & Dell’Atti, V. (2019). Integrated reporting in action: Mobilizing intellectual capital to improve management and governance practices.Journal of Management and Governance,23(2), 299-320. https://doi.org/10.1007/s10997-018-9420-1 https://doi.org/10.1007/s10997-018-9420-...
); Macedo et al. (2015Macedo, Á. F. P. D., Oliveira, A. M., Nobre, L. N., Brito, S. G., & Quandt, C. O. (2015). Governança corporativa e evidenciação de capital intelectual em empresas brasileiras. Revista Evidenciação Contábil & Finanças , 3(1), 18-33. https://periodicos.ufpb.br/index.php/recfin/article/view/20678 https://periodicos.ufpb.br/index.php/rec...
). |
Human |
These are the skills, abilities and experience of employees, including their ability to innovate. It is understood by the know how; education, qualification and knowledge accumulated by employees over the time they have been working. It also includes aligning and supporting employees with the GS, risk management and the organization’s values. |
IIRC (2014IIRC - International Integrated Reporting Council. (2014). The International Integrated Reporting Framework. <https://integratedreporting.org/wp-content/uploads/2015/03/13-12-08-THE-INTERNATIONAL-IR-FRAMEWORK-Portugese-final-1.pdf>. https://integratedreporting.org/wp-conte...
); Hsieh et al. (2019Hsieh, C. T., Hurst, E., Jones, C. I., & Klenow, P. J. (2019). The allocation of talent and us economic growth.Econometrica,87(5), 1439-1474. https://doi.org/10.3982/ECTA11427 https://doi.org/10.3982/ECTA11427...
); Beretta et al. (2019Beretta, V., Demartini, C., & Trucco, S. (2019). Does environmental, social and governance performance influence intellectual capital disclosure tone in integrated reporting?,Journal of Intellectual Capital, 20(1), 100-124.https://doi.org/10.1108/JIC-02-2018-0049 https://doi.org/10.1108/JIC-02-2018-0049...
). |