Intellectual Capital Reporting for the Dow Jones Sustainability Index

"Purpose - The present contribution addresses the implementation of an integrated management control system which aims to foster sustainability performance through a process, known in literature as Intellectual Capital (IC) Reporting, which measures, reports and manages the company’s IC, The study concerns a firm operating within the Electronics and Defence field which has developed an Intellectual Capital report in order to manage sustainability projects and meet the stringent criteria required for inclusion in the Dow Jones Sustainability Index (DJSI).. Design\/Methodology\/Approach – The qualitative research approach underlying the investigation is Interpretivism; more specifically, the study was conducted in the light of “action research” (Jönsson & Lukka, 2005; Suomala, 2009). Data were gathered by in-depth interviews with managers as well as from group discussions. A framework aiming at fostering a sustainable management strategy was elaborated and successfully applied to a series of specific corporate initiatives that will be implemented by the end of 2013. Each single project set up by the company was subject to measurement, evaluation and reporting through the Intellectual Capital lens.. Findings – The research suggests that the adoption of an integrated management control system, providing a link between intangible assets and capabilities that create value within a sustainability framework, not only provides an effective support to general management but it could be reasonably assumed to have a positive impact on the assessment process companies are subject to for inclusion in the DJSI.. Research limitations – A single case study limits the generalizing of any of the outlined findings."