The Cost of Sustainability Capital and the Creation of Sustainable Value by Companies

We develop and apply a valuation methodology to calculate the cost of sustainability capital, and, eventually, sustainable value creation of companies. Sustainable development posits that decisions must take into account all forms of capital rather than just economic capital. We develop a methodology that allows calculation of the costs that are associated with the use of different forms of capital. Our methodology borrows the idea from financial economics that the return on capital has to cover the cost of capital. Capital costs are determined as opportunity costs, that is, the forgone returns that would have been created by alternative investments. We apply and extend the logic of opportunity costs to the valuation not only of economic capital but also of other forms of capital. This allows (a) integrated analysis of use of different forms of capital based on a value-based aggregation of different forms of capital, (b) determination of the opportunity cost of a bundle of different forms of capital used in a company, called cost of sustainability capital, (c) calculation of sustainability efficiency of companies, and (d) calculation of sustainable value creation, that is, the value above the cost of sustainability capital. By expanding the well-established logic of the valuation of economic capital in financial markets to cover other forms of capital, we provide a methodology that allows determination of the most efficient allocation of sustainability capital for sustainable value creation in companies. We demonstrate the practicability of the methodology by the valuation of the sustainability performance of British Petroleum (BP).

Reflecting on Habitus, Field and Capital: Towards a Culturally Sensitive Social Work

Summary: This article argues that the notion of the knowledge base as a central aspect of professional activity is flawed, and that it is more useful to see social work as in a continuous process of constructing and reconstructing professional knowledge. Findings: Culture is an area that has attracted widespread attention in academia and the social professions. However, there has been little examination of culturally sensitive social work practice from a realist perspective, or one that starts from the view that oppressive structures, as encoded within social class, are essential determinants of cultural experience. Following a critique of postmodern perspectives on culture, the work of Pierre Bourdieu on culture and power is explored. Applications: Three of Bourdieu's key constructs - habitus, field and capital - are utilized to develop a model for culturally sensitive social work practice that attends to the interplay of agency and structure in reproducing inequalities within the social world.