VYT calls on big businesses to provide greater transparency
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