Reporting of Human Capital as One of the Corporate Social Responsibility Areas

Abstract

Human capital is one of the most important organization resources and, as shown by numerous studies, its role in organizations is constantly growing. This leads to many important consequences for the functioning of modern organizations. One of them is a growing importance of information on the value and structure of human capital in organizations. This information can have a managerial and reporting dimension in accounting. The first one seems to be clear, its scope of implementation is motivated by the individual’s need to use resources in an organization effectively. A more complex matter is a reporting aspect, mainly due to the demand for information from stakeholders, particularly the necessity of a fair settlement with the human capital owners. The lack of legislation in this regard and the essential social nature of the problem makes the reporting of employees human capital together with the level of its remuneration part of a Corporate Social Responsibility (CSR) area. The aim of the article is to provide an outline of the human capital periodic reporting model. In its first part the paper presents important substantive aspects of the CSR functioning in organizations, with particular emphasis on CSR reporting. Next, the original measurement model of the individual human capital is specified together with the principle of fair payment to the employees. The human capital measurement and payment model, takes into account the effects of natural impacts on capital and it respects the fundamental principles of accounting. The last section outlines the system for measuring and reporting human capital of workers, illustrated by a practical example.