Companies that invest in their supply chains and relationship capital, alongside natural capital, are likely to generate more sustainable returns. The challenge is measuring and uncovering the true value of this social capital, and recognising this in corporate valuations. You can't look at the biggest environmental impacts and dependencies without understanding value chains and supply chain networks.
Companies that invest in their supply chains and relationship capital are likely to generate more sustainable returns. Intuitively we recognise that business practices such as good communication, engagement and involvement in initiatives, paying invoices on time, and longer-term commitments, all build social capital.
Savvy business leaders also recognise that investment in social capital helps to generate a stream of future benefits for the business, including pricing support, access to contacts, support for innovation, and delivery flexibility in tougher times.
The launch of the WBCSD led Social and Human Capital Coalition, and new Protocol, marks a key step towards achieving the vision of social & human capital being consistently measured and valued in corporate, investor, government and organizational decision-making. Find out more at http://social-human-capital.org