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The Human Capital for Value Creation and Social Impact: The Interpretation of the IR’s HC Definition

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  • Maurizio Cisi

    (Department of Management, University of Torino, 10134 Turin, Italy)

  • Francesca Alice Centrone

    (Department of Management, University of Torino, 10134 Turin, Italy)

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.

Suggested Citation

  • Maurizio Cisi & Francesca Alice Centrone, 2021. "The Human Capital for Value Creation and Social Impact: The Interpretation of the IR’s HC Definition," Sustainability, MDPI, vol. 13(13), pages 1-19, June.
    • Handle: RePEc:gam:jsusta:v:13:y:2021:i:13:p:6989-:d:579348
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