VYT calls on big busi­nesses to pro­vide greater trans­parency

Pakistan Observer - - ECONOMY WATCH -

KARACHI—Ap­prox­i­mately a third (30%) of FTSE 100 com­pa­nies are with­hold­ing rel­e­vant in­for­ma­tion from their an­nual re­ports and paint­ing an in­ac­cu­rate pic­ture of op­por­tu­nity and risk, ac­cord­ing to a new research re­port from the Valu­ing Your Tal­ent part­ner­ship. Valu­ing your Tal­ent: Il­lus­trat­ing your com­pany’s true value, shows that many or­gan­i­sa­tions are fail­ing to in­clude vi­tal work­force re­lated in­for­ma­tion, in­clud­ing health and safety in­ci­dents, data breaches, skills chal­lenges and em­ployee turnover in their an­nual re­ports, cre­at­ing a clear risk to users of th­ese re­ports, such as in­vestors.

In re­sponse, the Valu­ing Your Tal­ent part­ner­ship which brings to­gether CIMA, CIPD and CMI is call­ing on or­gan­i­sa­tions to mea­sure and dis­close the im­pact and con­tri­bu­tion of peo­ple on busi­ness per­for­mance so both they and key stake­hold­ers can make in­formed de­ci­sions based on an ac­cu­rate pic­ture of op­por­tu­ni­ties and risk. Us­ing a va­ri­ety of meth­ods, the re­port as­sesses the cur­rent stan­dard of hu­man cap­i­tal re­port­ing by FTSE 100 com­pa­nies by mea­sur­ing if and how cor­po­rate re­ports have evolved be­tween 2013 and 2015.

For­mer Busi­ness Sec­re­tary, Vince Ca­ble, who launched the re­port at an event to­day, said: “The mod­ern busi­ness land­scape is in­creas­ingly made up of in­tan­gi­bles such as in­tel­lec­tual, so­cial and brand cap­i­tals. Peo­ple are cen­tral to th­ese in­tan­gi­bles – they lead, man­age and de­liver busi­nesses. By fail­ing to prop­erly ac­count for the im­pact and value of peo­ple, there is a huge dis­crep­ancy be­tween a com­pany’s bal­ance sheet and its mar­ket val­u­a­tion.—PR

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