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. We refer to the resources and relationships provided by people and society. This encompasses social capital (networks together with shared norms, values and understandings that facilitate co-operation within and among groups), and human capital (the knowledge, skills, competencies and attributes embodied in individuals that facilitate the creation of personal, social and economic well-being). Together, these resources need to be maintained and enhanced to make society more cohesive and resilient, and to make business more successful.