Abstract

We introduce a framework for calculating the Weighted Average Cost of Capital (CoSC) for stakeholders of a firm. Built upon the traditional WACC i.e. the weighted average of returns to shareholders and lenders, but extends to incorporate the triple bottom line i.e. the planet, the people along with the notion of profit, thereby capturing the impact of changes in the planet (the resource base) and people (the consumer and labor markets)
We illustrate this concept by using a case study of Sustainable Hockerton Ltd. (SHOCK), a small community organization in Nottinghamshire, U.K.