Abstract
The paper aimed at assessing and identifying in a comparative way the potentiality and suitability of the Integrated Reporting (IR)’s definition of human capital (HC) within a selection of companies and social cooperatives. Employing in-depth interviews, the qualitative study analyzed the points of view of a selection of human resources managers to firstly check and test the connection between human capital, value creation, and social impact. The contribution of human capital to value creation is not easily recognized, especially by smaller-sized companies. The results suggested that the HC definition of the IR in the for-profit sector seems to be more applicable to the top management than to the whole workforce, while it appears as “fitting” for the managers of social cooperatives because of its explicit focus on ethical values, loyalty, and motivation. This allowed opening possible channels of dialogue between the profit and not-for-profit sectors. The paper proposed practical recommendations to operationalize the IR’s HC definition.
Highlights
Human Capital for Value CreationThe paper focused on human capital (HC) and value creation dynamics in a selection of Italian conventional firms and social cooperatives
The paper intended to clarify whether the Integrated Reporting (IR) definition of the HC defines a model that could be applicable in order to better manage the value creation process and indirectly influence the potential social impact
The qualitative study analyzed the points of view of a selection of human resources managers to test the connection between human capital, value creation, and social impact
Summary
Human Capital for Value CreationThe paper focused on human capital (HC) and value creation dynamics in a selection of Italian conventional firms and social cooperatives. The paper intended to clarify whether the Integrated Reporting (IR) definition of the HC defines a model that could be applicable in order to better manage the value creation process and indirectly influence the potential social impact. To achieve such a goal, researchers interviewed a purposive selection of HR managers from conventional firms and social cooperatives active in the Northwest of Italy. The IR framework foresees six capitals: financial, manufactured, intellectual, human, social and relationship, and natural Such capitals are defined as ‘stock of value that are increased, decreased, or transformed through the activities and outputs of the organization. This represents one of the main key concepts of the IR and one of the most criticized’ [1,2], mainly because of the difficulties in comprehension and adoption by firms
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