Human capital is defined as the set of productive capabilities that an individual acquires through the accumulation of general or specific knowledge or skills. Accumulated knowledge and skills allow an individual to improve his efficiency and income. The notion of responsibility encompassed by the CSR approach requires that human capital be invested in by managers.
The theory of human capital works by analogy with that of financial or physical capital. Human capital is made up of three elements that determine an individual’s ability to work: skills, experience and knowledge.
The development of human capital plays a key role in ending poverty and strengthening social inclusion. This requires investments in nutrition, health, quality education, justice, skills development and access to jobs. All of these must be understood as human rights to be promoted.
In terms of impact, the accumulation of human capital promotes productivity gains useful for growth and employment.
