The Enterprise Engagement Alliance’s human capital reporting framework is now available for investors seeking to have meaningful engagements with public companies during proxy season. Impact Shares will use the framework in shareholder meetings to help companies implement a more strategic and systematic approach to human capital management and Diversity, Equity, and Inclusion.
The Enterprise Engagement Alliance’s human capital analysis and reporting framework is now available to investor groups seeking to have more meaningful engagements with public companies on the topic of human capital management and Diversity, Equity, and Inclusion (DEI).
According to Eric Darrisaw, an Enterprise Engagement Alliance advisory board member and Principal of Lazarus Advisors LLC, an ESG consulting firm specializing in Diversity, Equity, and Inclusion, “The time has come to address human capital and DEI in a positive way to help companies find a path to more sustainable returns for investors by creating value for customers, employees, supply chain and distribution partners, and communities.”
He continues, “ISO (International Organization for Standardization) standards 30414 for human capital reporting and 10018 for people engagement provide framework that will enable investors to rapidly identify the strengths and weaknesses of portfolio company’s human capital management practices.
ISO global standards help companies improve Securities & Exchange Commission 10 K disclosure, investor reporting and transparency.”
He notes: “The traditional approach to human capital and DEI issues is based on diversity training, for example, micro-aggressions, racial and gender sensitivity workshops. We think a far more sustainable approach is for companies to address the ROI of DEI in a systematic way as a business opportunity.” Human capital and DEI are deeply intertwined, he adds, “ISO standards have long included DEI not as an issue of social justice but as a way enhance corporate performance by having more diverse audiences of customers, employees, supply chain and distribution partners and communities.
Marvin Owens, Chief Engagement Officer at Impact Shares, NAACP and YWCA Exchange-Traded Fund (ETF) sponsor, “The proof is now compelling that doing good for employees, customers, distribution and supply chain partners and communities is actually better business and does not require a trade-off for shareholders when people are properly managed. DEI is a strategy to enhance organizational results and investment returns. Our goal is to use this framework based on ISO global standards to help investors and organizations rapidly identify areas of strength as well as areas of improvement.” He adds, “this framework will guide us during proxy season to support positive dialogues with companies on diversity practices that create opportunities for all stakeholders and equity portfolio alpha for our ETF investors.”
Darrisaw says ISO quality management system is a cost effective and more scalable approach than hiring lawyers to conduct racial equity audits that could take years with a high price tag without addressing the opportunity to act now to unlock DEI alpha for investors. "Given that well over 1 million companies worldwide follow ISO standards, most companies will be much more open to audits conducted by ISO experts than by lawyers.”
Explains Dr. Solange Charas, CEO of HCMoneyBall, whose HCMetrix™ technology platform provides metrics that address the data needs for the EEA human capital reporting program, as well as ISO 30414 and the anticipated SEC Human Capital reporting requirements, “Once organizations apply human capital metrics to financial indicators, they can not only measure whether they are optimizing their investment in their human capital and workforce, but benchmark that performance to their competitors.”
Adds Dr. Frank Mullins, Associate Professor of Human Resource Management at The University of Alabama in Huntsville, “While human resources and DEI have often been overlooked, academic research continues to demonstrate their value for enhancing organizational performance. In view of this, it behooves organizations to pay closer attention to these critical areas.”
Both Dr. Solange and Dr. Mullins are also Senior Advisors to the Enterprise Engagement Alliance at TheEEA.org., which created this framework based on ISO standards.
The EEA’s services for investors and companies include:
• Analysis of human capital reports based on ISO standards to identify the maturity and effectiveness of human capital practices and reporting. Click here for sample evaluations.
• Access to the HCMetrix™ human capital analytics software through HCMoneyball to support the data analytics to quantify, benchmark, and correlate company human capital performance with corporate outcomes.
• EEA training and certifications for company executives on human capital management and reporting practices.
Concludes Bruce Bolger, Founder of the Enterprise Engagement Alliance at TheEEA.org, “The sole purpose of the EEA’s effort on human capital reporting across the enterprise is to put the proven power of ISO standards to work to help investors and organizations make sense of new ways to create sustainable value for shareholders that provides sustainable returns for all stakeholders.”
For More Information
Founder, Enterprise Engagement Alliance at TheEEA.org
914-591-7600, ext. 230
Master the “S” of Environmental, Social, Governance (ESG), A.k.a. Stakeholder Capitalism
The Enterprise Engagement Alliance at TheEEA.org is the world’s first and only organization that focuses on outreach, certification and training, and advisory services to help organizations achieve their goals by fostering the proactive involvement of all stakeholders. This includes customers, employees, distribution and supply chain partners, and communities, or anyone connected to an organization’s success.
Training and Thought Leadership
- 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.
- Join the EEA to become a leader in the implementation of the “S” of ESG and Stakeholder Capitalism.
- The ESM information portal and The Enterprise Engagement Advisors Network solution provider marketplace cover all aspects of stakeholder engagement, and the EEA information library lists dozens of resources.
- The RRN information portal and Brand Media Coalition marketplace address the use of brands for gifting, incentives, recognition, and promotions. The BMC information library provides information and research resources.
The EEA Human Capital Management and ROI of Engagement YouTube channel features a growing library of 30- to 60-minute panel discussions with leading experts in all areas of engagement and total rewards.
- 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.
Enterprise Engagement Advisory Services
The Engagement Agency helps:
- 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.
- Human resources, sales and marketing solution providers profit from the emerging discipline of human capital management and ROI of engagement through training and marketing services.
- Investors make sense of human capital reporting by public companies.
- Buyers and sellers of companies in the engagement space or business owners or buyers who seek to account for human capital in their mergers and acquistions.
For more information: Contact Bruce Bolger at Bolger@TheICEE.org or call 914-591-7600, ext. 230.