The six capitals management control system

Keywords
No Thumbnail Available
Issue Date
2022-08-22
Language
en
Journal Title
Journal ISSN
Volume Title
Publisher
Abstract
Future-proof organizations have a broader focus than their finances, and their strategies also create value socially and environmentally. The six capitals by the International Integrated Reporting Council (IIRC) support this focus and strategy, and exist for multiple value creation. The six capitals are financial, manufactured, intellectual, human, social and relationship, and natural capital. This study aims to conceptualize these into a scorecard and underlying strategy map to help organizations create multiple values by steering on the six capitals with the help of the question, “how can an integrated management control system focused on multiple value creation be conceptualized?”. This study first developed three theoretical designs via an extensive literature review, each inspired by different sources. These designs get discussed through six semi-structured interviews that led to the development of the final empirical design. Eventually, this study presented two fictional case studies to make the management control system less abstract. The final empirical design got four perspectives: 1) skills and capabilities, 2) internal business processes, 3) internal stakeholders, and 4) external stakeholders. The six capitals are integrated into these last two perspectives. Each capital got treated equally, but organizations can choose a dominant one. Via the scorecard and strategy map, organizations can now steer on the six capitals and create multiple values. This study got its limitations as there is a subjectivity bias. Furthermore, the Six capitals for value creation
Description
Citation
Faculty
Faculteit der Managementwetenschappen
Specialisation