This new book, Understanding and Reporting Human Capital, by a retired senior financial executive dedicated to human capital aims to provide a practical framework “that uses the input, activity, output, and outcome business model for integrated reporting and demonstrates how the model can be populated with relevant metrics, including emerging areas such as organizational culture.”

 

Nick. A. Shepherd is one of the first in the accounting professional to call for better management, measurement and reporting on human capital. A retired chief financial officer with extensive senior management experience, a Fellow of the Chartered Professional Accounts of Ontario, author of over a half-dozen publications on culture and human capital, he is one of a growing group in the financial profession recognizing the importance of addressing the current enormous gap in financial reporting: people. See ESM: Have Accountants Lost Their Balance?

 

His new book suggests how to address the growing demand for new metrics that deal with people as a critical organizational resource, driven, he believes, by:

• “The growth of intangibles, including human capital as core drivers of value creation.

• The inadequacy of existing reporting approaches to disclose the important risks related to people, to users such as investors, regulators, and others.

• The changing attitudes in society to the quality of relationships between corporate entities and the people they employ and impact.”

 

Shepherd’s book provides an overview of existing metrics including ISO 30414 human capital reporting, the GRI, World Economic Forum and others. He explains what he feels to be their inadequacies and provides his own prescriptions. He suggests a model for metrics that starts to align with integrated reporting <IR> and embraces the role that people perform in sustainable organizational value and value creation. The book addresses critical emerging issues such as organizational culture and “entire system” performance.

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• Founded in 2008, the Enterprise Engagement Alliance provides outreach, learning and certification in Enterprise Engagement, an implementation process for the “S” or Social of Stakeholder Capitalism and Human Capital Management and measurement of engagement across the organization.
• The Enterprise Engagement Alliance provides a training and certification program for business leaders, practitioners, and solution providers, as well as executive briefings and human capital gap analyses for senior leaders.
• The EEA produces an education program for CFOs for the CFO.University training program on Human Capital Management.
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• Enterprise Engagement for CEOs: The Little Blue Book for People-Centric Capitalists. A quick guide for CEOs.
• Enterprise Engagement: The Roadmap 5th Edition implementation guide. A comprehensive textbook for practitioners, academics, and students.

• Organizations of all types develop strategic Stakeholder Capitalism and Enterprise Engagement processes and human capital management and reporting strategies; conduct human capital gap analyses; design and implement strategic human capital management and reporting plans that address DEI (Diversity, Equity, and Inclusion), and assist with managed outsourcing of engagement products and services.
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