Companies rely on a diverse set of ‘capitals’ to function effectively - beyond financial capital companies also use and rely on social, human and environmental resources.
Put simply, through their business activities, companies make use of and convert these capitals into outputs which leads to outcomes that in turn affect the stock of these various capitals as well as a company’s long-term viability. In the consultation draft of the Social & Human Capital Protocol, we refer to the resources and relationships provided by people and society. This encompasses social capital (societies’ relationships, shared values and institutions), and human capital (people’s competencies and capabilities, knowledge and wellbeing). Together, these resources need to be maintained and enhanced to make society more cohesive and resilient, and to make business more successful.