Measuring and Calculating the Cost Effect of the Lack of Employee Psychological Health and Safety, Engagement, Toxic Culture in Organisations, Applying Integrated Value Thinking and Sustainability Reporting Principles

Abstract

This paper is a discussion of the combination of the concepts of organisational sustainability reporting, survey-based measurement of organisational behaviour, such as psychological health and safety, employee commitment and organizational culture and human capital measurement. The author argues that human capital erosion occurs when the three mentioned areas of organisational behaviour function non-optimally. The latter creates risks, and these could be quantified and taken into consideration when calculating, for example, cost of absenteeism per employee. These calculations and their graphic displays could and should be included in an organization’s annual integrated report, adhering to sustainability practices and reporting, as propagated by institutions and codes, such as the Value Reporting Foundation (VRF), and the Global Reporting Index (GRI). A case study is presented to underline the argumentation in this document.

Keywords: Human capital, survey, value drivers, integrated reporting, sustainability