Impact Analysis of the Relationship: Intellectual Capital, Performance and Social Responsibility of the Organization

Abstract

Profound transformations manifested in the global and complex business environment generated changes in the development strategy of the companies, which understand that achieving a sustainable competitive advantage is based on a competitive workforce and increasing labor productivity is possible through the global development of human capital. The development of knowledge based economy has led to a new general concept, that of intellectual capital. Intellectual capital or its components cannot act individually, but only in tandem with other resources of the company enabling sustainable value creation in the future. Sustainability is understood as satisfying both economic and non economic interests of all stakeholders, from shareholders, capital providers and employees up to the entire community. Thus, in recent years, there has been a notable rise in the number of companies implementing social responsibility in their strategy. Intellectual capital and corporate social responsibility have become the most powerful factors determining the firms’ adaptation to the changes of business environment. This paper aims on one hand, to analyze the impact of intellectual capital on company’s performance, seen in financial and non-financial terms, and on the other hand, to analyze the interaction between intellectual capital and social responsibility activities of companies, elaborating a conceptual model that explains the interactions in the trinomial: intellectual capital, performance and social responsibility.