Contemporary issues review Essay Example | Topics and Well Written Essays - 750 words

Contemporary issues review - Essay Example gracious neat cannot be owed by an organization because it is inherent in people, hence when people leave organizations, piece roof leaves too. It encompasses how organization utilizes its people resources effectively as measured by base and creativity structural capital, this is the supportive processes, infrastructure and organizations databases which enhances the functionality of human capital. Structural capital may include hardware, buildings, software, patents, processes, development system, organizations image, proprietary databases, and trademarks. Structural capital can also be classified into process, organization, and innovation capital. Intellectual properties are protected by trademarks and copyrights. Intangible assets include all other theory and talents by which an organization is run and relational capital, which consists of supplier and customer relationships, trade names and trademarks, franchises, and licenses (Tay les et al., 2007). The perception that customer capital is distinct from structural and human capital shows its central importance to the worth of an organization. Even though clever capital may be similar to tangible assets in its potential to generate future hard cash flow, it is different radically from tangible capital in various respects intellectual assets are not rival assets. Intellectual assets can be multiplexed unlike tangible assets that can only do unity thing at a time relational capital and human capital cannot be own and are shared with suppliers, customers and employees. It on that pointfore demands careful nurturing in order to grow structural capital on the other hand can be owned and is often controlled by the management. It cannot be easily traded however, since there is not market in existence for that purpose structural capital can be substituted with costly expenditure on capital in the form of real time inventory control systems and precisely in time p rocess of procurement firms leveraging their intellectual capital to perform their knowledge shit generate higher profit margin compared to those firms who offer mass produces solutions and structural, human and relational capital unremarkably work together in order to give rise to core competencies in judicious combinations that take for granted strategic significance. Therefore, it is not totally enough to invest in people, customers and systems separately, that produce end value in combinations. Intellectual capital is measured in order to help organizations in formulating their strategy, assisting in the diversification and expansion of the decisions of the firm, evaluating the execution of the strategy, communicating with external shareholders, and as a foundation for compensation management (Gowthorpe, 2009). Summarily, intellectual capital is the sum total of a firms structural capital, human capital and relational capital. They fill out firms performance from one anothe r and form a source of distinct competitive advantage. Sustainability and accounting account statement for sustainability entails linking initiatives of sustainability to company strategy, opportunities and evaluating risks, accounting and performance management skills, and providing measurement in order to ensure that sustainability is rooted into routine operations of the company. Sustainability a