Moral Capital And Its Measurement

Alejo José G. Sison

I. A historical perspective of work and society

II. The human contribution to wealth-creation

III. What is moral capital? How is it measured?

I. A historical perspective of work and society (D. Bell)

1. Pre-industrial society: game with nature/ survival

2. Industrial society: game with machines/ well-being

3. Post-industrial society: game among persons/ leisure & entertainment

“Capital” from “caput/capitis” (Latin): head of cattle

II. The human contribution to wealth-creation

hired hands, manpower/ work (Newton)

human capital (Schultz, Becker)

intellectual capital (Stewart)

individual capital

structural capital

relational capital

emotional capital (Goleman)

social capital/ trust (Fukuyama, Putnam)...

III. What is moral capital? How is it measured?

life Excellence of character/ virtues (Aristotle)

habits actions inclinations tendencies

III. What is moral capital? How is it measured?

PERSON ORGANIZATION

inclinations, tendencies core competenciesactions goods/serviceshabits protocols/procedurescharacter culturelifestyles corporate history

III. What is moral capital? How is it measured?

Intrinsic value/ subjective dimension (Simon, Sen, JPII) Extrinsic value/ objective dimension

Functional level Firm level

productivity shareholder value quality market share service stakeholder value

III. What is moral capital? How is it measured?

No management without measurement.

Indirect measurement (absence)quantitative: turnover, absenteeism, tardiness,crime (violence, property, “white-collar”),insubordination, drugs, alcohol...

qualitative: family life, fertility, single parenthood...

III. What is moral capital? How is it measured?

Direct measurement (presence)quantitative: human capital revenue/ roi/ eva...

qualitative: human capital productivity,commitment, competence &satisfaction levels, corporate climate,“employer of choice”, organizational citizenship behavior...