Sustainability and Intangibles: evidence of integrated thinking

Purpose: The value creation is not completed through or within the organization alone. It is influenced by external factors, e.g. the economic conditions and societal issues, which are representing risks and opportunities in the external environment. Furthermore relationships to employees, partners, networks, suppliers and customers have an impact on the organization’s value creation process. The International Integrated Reporting Council (IIRC) has put forward a framework according to which an integrated report should display an organization’s stewardship not only for financial capital, but also for other “capitals” (e.g. manufactured, human, intellectual, natural and social) and their inter-dependences. In this light, this article aims to establish relationships between Intellectual Capital (IC) indicators and indicators of business performance and Sustainability Management. In particular, the study concerns a company operating in the field of Electronics and Defense, which has developed an integrated report, based on the above-mentioned interconnected key elements. Design/methodology/approach: From a methodological point of view, it is believed that these objectives can be successfully achieved by adopting a qualitative research based on “action research”. This method looks at the meaning of the experiences of people; it is a research strategy suited to situations in which the object of investigation is to be examined in depth. In our work on researching and implementing an IC-Sustainability framework, what has been followed is an approach based on interventionist principles (Dumay, 2010). Originality/value –No papers or studies question how, in practice, it is possible to report and manage sustainability initiatives through the IC perspective. It is evident that this issue is not covered in current literature. This paper aims at filling the aforementioned gap by highlighting how a high-tech company has developed a reporting aimed at managing sustainability initiatives, by the measurement of related firm specific intangibles pertaining to value creation. In this way, a model is created for the evaluation of measuring and managing the company’s intangible assets; this model can be included in the company’s management practices, in order to support the firm’s decisions, and it is created by “researcher” and “practitioner” jointly. Practical Implications: This model, and in particular its application, can be considered as an innovative form of support of the management system of an organisation. Also, it provides an important full reporting tool for intangible assets in the company which is a form of internal support for managerial decisions and also doubles up as an additional information tool for external stakeholders. © 2015, International Academy of Business and Economics.