SEC Human Capital Disclosures Draw Mixed Reaction From IRR Leaders
The incentive, recognition and reward business has greeted the new SEC human capital disclosure requirements and subsequent World Economic Forum Stakeholder Capitalism metrics with mixed enthusiasm, with some calling it tectonic and others skeptical it will have any impact. This article is part of an ongoing series in RRN and its partner platform ESM at EnterpriseEngagement.org following the repercussions, if any, of this new SEC requirement for human capital disclosures by public companies and new standards published and announced by the World Economic Forum in a recent video that require detailed disclosures of human capital and environmental practices, as well as governance.
In the last two months, the Securities & Exchange Commission has issued new requirements requiring public companies to disclose their practices and measures for recruiting, developing, and retaining employees to the extent human capital is material to their material success. In the following month, the 120-member International Business Council of the World Economic Forum introduced new standards for the reporting of human capital that include: a statement of the organization’s purpose as well as comparable information on diversity, pay equity, health and safety, training, employee turnover, and oversight of supply chain people practices, among others.
RRN reached out to the principles of about 50 of the largest incentive, recognition, and loyalty companies in this tight-knit business by email and phone calls and received on and off the record comments from about 10. Reactions covered the gamut from enthusiastic, hopeful, to negative.
A Potentially Tectonic Shift
Observes Phil Stewart, CEO, Engage2Excel Group, “This ruling solidifies the importance of human capital practices and their impact on business outcomes.”
Brian Galonek, President of Allstar Incentive Marketing, concludes, "It was truly encouraging watching the WEF webinar on Stakeholder Capitalism which featured major CEOs including Brian Moynihan, Chairman and CEO of Bank of America. This group is now singing off the enterprise engagement song card about the need to involve all stakeholders when running a company, not just the shareholders.
The Contrary View: Impact Could Be Limited
Those contacted who see little impact preferred not to be quoted by name. The CEO of a leading incentive company is skeptical. “I just don’t believe that the disclosure of HR practices will have much, if any, impact on the decisions made by the Global 2000. They will continue to make decisions as they always have and comply with the requirement to disclose what they do. The requirement to disclose means little.” Echoes the CEO of a large incentive company, “None of our clients are asking for this and we can pivot when they do.” A senior executive at a large incentive company says his company hasn’t yet evaluated the potential impact. Declining to participate in the article, the head of marketing for a mid-size incentive company, says, “Ours is a very different marketing approach for employee and channel success programs.”
RRN will continue to follow developments in human capital disclosures and their potential impact as will its ESM at EnterpriseEngagement.org media.
Education, Certifications, and Information to Activate
A complete learning, certification, and information program and a course syllabus for educators.
Education, Certifications, and Information to Activate
Brand Media and Enterprise Engagement
A complete learning, certification, and information program and a course syllabus for educators.
Resources: The Brand Media Coalition, the only guide to the story-telling power of brands and where to source them for business, event, promotional gifting, and rewards and recognition. Enterprise Engagement Solution Provider Directory. The only directory of engagement solution providers covering all types of agencies and tactics as well as insights on how to select them.
Communities: The Enterprise Engagement Alliance and Advocate and the Brand Media Coalition free resource centers offering access to the latest research, news, and case studies; discounts, promotions, referrals, and commissions, when appropriate to third-party solution providers from participating coalition solution provider members.
Training and Certification
Enterprise Engagement Alliance Education: Certified Engagement Practitioner; Advanced Engaged Practitioner, and Certified Engagement Solution Provider learning and certification programs on how to implement Stakeholder Capitalism principles at the tactical level.
International Center for Enterprise Engagement: The only training and certification program for ISO 30414 human capital reporting and ISO 10018 quality people management certification.

The EEA offers a complimentary course syllabus for educators.
In Print:
This is the definitive implementation guide to Stakeholder Capitalism, written specifically to provide CEOs and their leadership teams a concise overview of the framework, economics, and implementation process of a CEO-led strategic and systematic approach to achieving success through people. (123 pages, $15.99)

The first and most comprehensive book on Enterprise Engagement and the new ISO 9001 and ISO 10018 quality people management standards. Includes 36 chapters detailing how to better integrate and align engagement efforts across the enterprise. (312 pages, $36.)
Online:
10-minute short course: click here for a 10-minute introduction to Enterprise Engagement and ISO standards from the Coggno.com learning platform.
Services:
• The Engagement Agency at EngagementAgency.net, offering: complete support services for employers, solution providers, and technology firms seeking to profit from formal engagement practices for themselves or their clients, including Brand and Capability audits for solution providers to make sure their products and services are up to date.
• C-Suite Advisory Service—Education of boards, investors, and C-suite executives on the economics, framework, and implementation processes of Enterprise Engagement.
• Speakers Bureau—Select the right speaker on any aspect of engagement for your next event.
• Mergers and Acquisitions. The Engagement Agency’s Mergers and Acquisition group is aware of multiple companies seeking to purchase firms in the engagement field. Contact Michael Mazer in confidence if your company is potentially for sale at 303-320-3777.
Enterprise Engagement Benchmark Tools: The Enterprise Engagement Alliance offers three tools to help organizations profit from Engagement. Click here to access the tools.
• ROI of Engagement Calculator. Use this tool to determine the potential return-on-investment of an engagement strategy.
• EE Benchmark Indicator. Confidentially benchmark your organization’s Enterprise Engagement practices against organizations and best practices.
• Compare Your Company’s Level of Engagement. Quickly compare your organization’s level of engagement to those of others based on the same criteria as the EEA’s Engaged Company Stock Index.
• Gauge Your Personal Level of Engagement. This survey, donated by Horsepower, enables individuals to gauge their own personal levels of engagement.
For more information, contact Bruce Bolger at Bolger@TheEEA.org, 914-591-7600, ext. 230.