USING MULTI-CRITERIA DECISION-MAKING TO ASSESS THE IMPORTANCE OF HUMAN CAPITAL IN MEETING THE GOALS AND OBJECTIVES OF SUSTAINABLE DEVELOPMENT: AN APPLICATION OF THE ANALYTIC HIERARCHY PROCESS

Abstract

The concept of human capital continues to evolve and it has gained momentum in the process. Besides its impact on the economic growth of business and entire societies, human capital has emerged as a critical area of performance in achieving the goals and objectives of sustainable development. Following a brief historical background and a description of its evolution, the role of human capital in meeting the goals and objectives of sustainability is examined. A simulated case using a multi-criteria decision-making (MCDM) method known as the Analytic Hierarchy Process (AHP) further explores the importance or relevance of human capital in financial institutions. Research demonstrates the evolution of human capital as well as its increasing coordinating and supporting role in achieving social progress, economic growth, and environmental protection. To better manage and assess the role of human capital, we present a set of resources for the identification and selection of criteria and indicators as well as structure and scientific-based options that allow the effective engagement and participation of stakeholders to assess the relative and absolute importance or relevance of human capital within the concept of sustainable development. While challenges remain to fully understand the role of human capital in the sustainability environment, research outcomes demonstrate the progress already made.