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Measuring and Valuing Social Capital

Book / Report | Free | Jan 21, 2015

“It’s not what you know but who you know.” People have always recognized the importance of relationships.

The integrated reporting movement asked that businesses make relationships part of their reporting. International Integrated Reporting Council (IIRC) guidance suggests that a company’s public report should include information about six forms of “capital,” including social capital, which focuses on “institutions and relationships.”

South Africa: Leading Integrated Reporting

South Africa is the first country to make integrated reporting a requirement for listed companies. When a group of South African business leaders met in 2013 to identify sustainable development challenges, they asked: How can we measure and value social capital for business decision-making and reporting?

“Business and society must come to a place of agreement on how businesses create value,” said Ansie Ramalho of the Institute of Directors in Southern Africa.

In response, the Network for Business Sustainability South Africa asked scholars to conduct a systematic review of social capital research. With direction from a Guidance Committee of business leaders, researchers Moses Acquaah, Kwasi Amoako-Gyampah, and Nceku Q. Nyathi reviewed and synthesized 314 studies.

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