Comprehensive Analysis: Business, Society, and Planets - Capital Forms

This essay provides a detailed analysis of various forms of capital within the context of business, society, and planets. It explores human capital, emphasizing its importance in technologically advanced companies and the costs associated with employee turnover. Natural capital is discussed in relation t...Read More

Running head: BUSINESS SOCIETY AND PLANETS
BUSINESS SOCIETY AND PLANETS
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1BUSINESS SOCIETY AND PLANETS
Executive summary:
Capital in a part of the basic factors of production along with other factors like and labor. It is
one of the accumulated assets of any business organization that is being used to generate other
assets or business incomes. Various forms of the capital in being mentioned here and their uses
and source of generation are also included. The social capital include the social media platforms
and a good rapport with the stake holders, intellectual capital include hiring intellectual people
who will be able to deal with critical situations intellectually. The manufactured capital include
the good and services that is being manufactured by the company. Financial capital implies the
financial source of a company and the human capitals refers to the stake holder of company
people or employees. They can be generated as well through various sources and used in various
sources efficiently.

2BUSINESS SOCIETY AND PLANETS
Table of Contents
Introduction:....................................................................................................................................3
Business Capitals:............................................................................................................................3
Human capital..............................................................................................................................3
Natural capital:.............................................................................................................................4
Financial:.....................................................................................................................................4
Manufactured capital:..................................................................................................................5
Intellectual capital:.......................................................................................................................5
Social and relational capital:........................................................................................................5
Conclusion:......................................................................................................................................6
Reflection:........................................................................................................................................6
References:......................................................................................................................................8

3BUSINESS SOCIETY AND PLANETS
Introduction:
Capital is a part of the basic factors of production along with other factor like labor. It is
one of the accumulated assets of any business organization that is being used to generate other
assets or business incomes. The word capital includes any kind of goods that is being created by
human being and can be used for producing goods and services. Capital includes physical assets
like production and plants and financial assets like investment capital or investment portfolio.
There are types of capital as well such as knowledge, skills, abilities and others. I have provided
a detailed study of the said topic in this assignment. Various forms of the capital is being
mentioned here by me and their uses and sources of generation are also included.
Business Capitals:
I understand that business capital means the financial assets, which are an essential need
for business and for the production of goods and services. It is the base of a business, for the
reason of maintaining its operations. However, capital doesn’t signify financial capital every
time. Other forms of capital are like Human capital, Natural capital, Financial capital,
Manufactured capital, Intellectual capital and Social and Relational capital. I am explaining the
forms of capital below:
Human capital:
Most of the technologically advanced companies of the world depends on human capital.
Labors or employees are, in any case, the most important and integrated asset of business houses
which also provides with opportunities (Prpić et al., 2015). There are costs incurred in employee

4BUSINESS SOCIETY AND PLANETS
turnovers, re-trainings and appointments of new employees .Further, there exists damage to the
productivity of a company that is being caused by such turnovers and the damages are well
documented. Introducing the use of knowledge management and control of employee’s
intellectual power are the next logical steps regarding human capital management (Dees, 2017).
Employee productivity can be increased through increased cross training sessions, employee
certifications and knowledge enhancement and also work stability can be quantified as a measure
of increased productivity and efficiency.
Natural capital:
Natural capital can be said as an asset for mining industry or extractive industry such as
oil refinery. However, with an in depth analysis, it can be said that the asset class is useful for
any kind of industry which links natural capital to another important aspect that is sustainability
(Dyllick & Muff, 2016).
Financial:
It is the most familiar and popularly known capital form (Hair et al., 2015). However,
finance professional can expand their idea of implication of regulatory changes like BASEL III
and also changes in lease accounting process for example changes in analysis and interpretation
of market data, the tools used to perform such activities and thus, providing number of
opportunities for professional growth.

5BUSINESS SOCIETY AND PLANETS
Manufactured capital:
The assets include physical distribution network and products and services of the
company and the way through which these goods and services are being delivered to the
customers. It is often implicit in managerial decision making process and financial analysis
process that the said capital is an important part of managerial success. In additional to the
internal uses of these assets, proper analysis of the cost of such capital and investment return is
critical for any organization (Serrat, 2017).
.
Intellectual capital:
Intellectual capital refers to the intangible assets which include trademarks, patents and
brand equities and these are measured in terms of tens of dollars. There has been much debate
regarding the importance and worth of this kind of assets. Leveraging this kind of assets through
licensing and agreements, brand extensions, line extensions and agreements provides the
organization with an opportunity to increase its value (Adams, 2015). In addition to this, the
ideas and the capitals developed by intellectual capital and other intangible assets helps decision
makers to gain valuable insight regarding existing operation of the company the future projects.
Social and relational capital:
As in the cases of organizations, as like brand equities constitutes an increasing part of
the total assets, a good rapport or a productive relationship with stake holders has continued to
grow in importance exponentially (Cohen & Kietzmann, 2014). Social media has taken the world

6BUSINESS SOCIETY AND PLANETS
by storm since the introduction of social networking status like face book, twitter and LinkedIn.
This has emerged to be a social capital as being the connecting media with anyone and everyone.
A less talked about angle regarding social assets is the development and nurturing of
relationships with universities, with the think tanks, and the other sources of intellectual capitals
(Anheier, 2014). Boeing, Microsoft and other organizations are among the important members
who are in the process of building such relational ships and growing power pipelines.
Conclusion:
I can conclude here that apart from the monitory side, there are other forms of capitals as well.
The others forms are like human capital, social capital, nature capital, intellectual capital,
manufactured capital, financial capital and other forms. The social capital include the social
media platforms and a good rapport with the stake holders, intellectual capital include hiring
intellectual people who will be able to deal with critical situations intellectually. The
manufactured capital include good and services that is being manufactured by the company.
Financial capital implies the financial source of a company and the human capitals refers to the
stakeholder of company people or employees. They can be generated as well through various
sources and used in various sources efficiently. They have manifold uses.
Reflection:
I have understood from the whole discussion that there are various forms of capital and
there are diversified uses of each of the asset forms. The forms and the uses can be described
here. The human capital asset can be used in each and every layer of an organization. Starting

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from the intellectual labor to factory labor, technologies are never completely successful in
replacing human labor. Human capital can be used in managerial decisions, in product making
process, delivery of products and in organizational behavior. The Natural Capital is related to
sustainability. Sustainability implies the construction of nature friendly buildings and searching
for alternative energy facilities and the use of such practices into organizational supply chain can
make an advantage for the organization, which provides the business and financial professional
with new brainstorming paths. Therefore, I can predict that the asset can be used to create
sustainability. The sector needs some investment and evaluation of this investment return is a
crucial management decision. Financial capital can be used in investment for new projects and to
invite new projects for any organization. Analysis and interpretation of market data is an area of
investment as well for gaining important business insights. They can also be used in
maintenances purposes that is factory maintenance, office facility maintenance and in employee
reward and recognition that helps in motivating the employees. Again, manufactured capital can
be used for efficient delivery of products and services. The source can also be used for importing
raw material more efficiently. Intellectual asset can be used in increasing market values, shares
values and making proper investment plans and for managerial decisions. This is the base of any
organization and business. Lastly, I can say that building a rapport with the targeted customers is
a business need for their awareness of business products and this can make them purchase.
Again, maintaining a relationship with the stake holders can make the organization work easily.
These areas can be catered through social media and regular meetings. Maintaining a good
relationship with think tanks is also an important use of it.

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References:
Adams, C. A. (2015). The international integrated reporting council: a call to action. Critical
Perspectives on Accounting, 27, 23-28.
Anheier, H. K. (2014). Nonprofit organizations: Theory, management, policy. Routledge.
Cohen, B., & Kietzmann, J. (2014). Ride on! Mobility business models for the sharing
economy. Organization & Environment, 27(3), 279-296.
Dees, J. G. (2017). 1 The Meaning of Social Entrepreneurship. In Case Studies in Social
Entrepreneurship and Sustainability (pp. 34-42). Routledge.
Dyllick, T., & Muff, K. (2016). Clarifying the meaning of sustainable business: Introducing a
typology from business-as-usual to true business sustainability. Organization &
Environment, 29(2), 156-174.
Hair Jr, J. F., Wolfinbarger, M., Money, A. H., Samouel, P., & Page, M. J. (2015). Essentials of
business research methods. Routledge.
Prpić, J., Shukla, P. P., Kietzmann, J. H., & McCarthy, I. P. (2015). How to work a crowd:
Developing crowd capital through crowdsourcing. Business Horizons, 58(1), 77-85.
Serrat, O. (2017). Social network analysis. In Knowledge solutions (pp. 39-43). Springer,
Singapore.

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