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Business, Society, and Planet

   

Added on  2023-01-12

7 Pages1552 Words68 Views
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Business, Society, and Planet
Title: Business, Society, and Planet
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Business, Society, and Planet_1

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Business, Society, and Planet
Table of Contents
Introduction......................................................................................................................................2
The Six Forms of Capital used by Businesses.................................................................................2
Conclusion.......................................................................................................................................5
References........................................................................................................................................6
Business, Society, and Planet_2

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Business, Society, and Planet
Introduction
Capitalism can never be only about financial capital, but it includes various other forms
too. The popular corporate beliefs do not incorporate the numerous types of capitals that an
organization makes use of. Financial investments are very crucial when it comes to executing
business processes, but companies must never stand short of machinery, human labor, energy,
water or even the community. Modern organizations are trying to adhere to the various theories
laid out by multi-capitalism. Multi-capitalism proves to be a precise definition of the economic
system and it is also a well-structured recipe for sustainable growth.
The Six Forms of Capital used by Businesses
Organizations today are making use of six types of capital while executing in various
business processes and ensuring prosperity at the same time. All the six types of capital are
equally important and they must be synchronized with all the business processes and
organizational objectives in order to achieve high grounds of productivity and dominance in the
market (White, 2015). It intrigues me to a great extent that businesses in the modern market
cannot rely only upon financial investments in order to ensure prosperity and success over the
competitors.
Financial capital is extremely important because it can get the perfect head start required
by a business. Financial capital arrives from two sources which include equity and debt. Debt
capital is nothing other than the funds that managers borrow and they have to return everything
at a particular date. Funds are usually generated by the sale of stocks (Turner & Gianiodis,
2017). The equity capital must not be returned, but various stakeholders and investors can expect
Business, Society, and Planet_3

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