Six Capitals

NotesObjective Test

Six Capitals

So these are the resources and relationships of the business (we use these as inputs)

  • Then the organisations activities convert them to outputs - which will increase / decrease these capitals

  • < IR > defines six capitals, however, not all capitals are equally relevant or applicable to all organisations

  • < IR > is not required to adopt the six categories or be structured in line with the capitals

  • Instead the capitals act as a guideline to ensure organisations consider all forms of capital they use or affect.

Six CAPITALS:

  1. Financial - eg, debt, equity or grants

  2. Manufacturing - buildings, equipment, infrastructure - roads, bridges

  3. Human - people’s competencies, capabilities

  4. Social - shared norms, common values and behaviours,

  5. Intellectual - eg intellectual property (patents, copyrights, software, licences

  6. Natural - air, water, land, minerals, Biodiversity, eco-system

NotesObjective Test