From metrics to meaning beyond profit: A methodological approach for the assessment of the Corporate Human Development Index

Abstract

In today's dynamic landscape, the convergence of corporate responsibility and human development presents an unprecedented opportunity for businesses to drive sustainable growth. This study addresses a critical gap in the literature by establishing a framework for evaluating the Human Development Index (HDI) specifically within small and midsized enterprises (SMEs). While existing research predominantly emphasizes national HDI metrics, the exploration of the Corporate Human Development Index (CHDI) reveals a tailored methodology that synthesizes social, educational, and economic dimensions to assess corporate performance in human development-particularly vital for Peru's 14,281 medium and large companies. Despite widespread acknowledgment of corporate social responsibility (CSR), numerous organizations face challenges in implementing effective strategies that enhance employee well-being and foster sustainable practices. High labor turnover and insufficient educational opportunities pose significant barriers to progress. The research underscores the necessity for a holistic approach that cultivates a culture of human development within the corporate sector. Utilizing a comprehensive mix of quantitative and qualitative analyses, the study evaluates key indicators across three pivotal dimensions: longevity of employment, education, and quality of life. The findings demonstrate that a midsize company can achieve success by integrating initiatives that foster continuous learning, ensure health and safety, and promote community engagement. This strategic alignment between corporate practices and human development principles serves as a model for organizations seeking to achieve meaningful social responsibility while simultaneously driving business success. By inviting stakeholders to engage in a transformative dialogue about the importance of prioritizing human development alongside profitability, this research seeks to reshape the narrative of corporate responsibility for future generations, laying the groundwork for a more equitable and sustainable business landscape.

Keywords: Corporate Human Development Index (CHDI), Sustainable Corporate Practices, Employee Well-Being Assessment, Human Capital Evaluation, Corporate Social Responsibility (CSR), Integrated Development Metrics