For continuation read part 1
Integration Aspects in Sustainability Reporting for Economic KPI under GRI Framework – Part E1.
Salary Structure for Jobs (Report RHCMPJOBPLCOMP)
The report lists the names of the jobs in a table together with the following information per job:
- Country grouping
- Pay grade type and area
- Pay grade group
- Lowest and highest pay grade level per pay grade
- Reference salary of pay grade
- Minimum and maximum salary paid in a pay grade level
From this report also we can report the KPI required. One more interesting report is given below:
Salary Survey Results Infotype (1051)
This allows you to store different sets of survey results.
Subtype SV01 = Survey comparing your organization with organizations in the same or related business
Subtype SV02 = Survey comparing your organization with organizations in the same geographical area
Subtype SV03 = Survey comparing your organization with organizations of a similar size
EC6 Policy, practices, and proportion of spending on locally-based suppliers at significant locations of operation.
The first part, policies and practices of spending on locally-based suppliers is basically a qualitative disclosure. This ideally has to be fixed for a period of operation and needs to be reviewed periodically.
The next part "Proportion of spending on locally-based suppliers at significant locations of operation" is a quantitative one. First we need to define the significant locations of operations based on employee head count or revenue generated in that region.
The vendor master data already has the address field for the location of the vendor. Then the report run at a significant location of operation will list out the locally based suppliers. From this list and from FI - Accounts payable module, we can figure out the total amount paid to the locally-based suppliers, from which "the proportion of spending on locally-based suppliers" can be computed and reported.
EC7 Procedures for local hiring and proportion of senior management hired from the local community at significant locations of operation.
The policy and procedure for the local hiring is a qualitative disclosure, while the second part is a quantitative one.
For the 2nd quantitative part, we need to define above which grade, an employee is in the senior management. The employee master data already contains the permanent address. A report run on this master data (Infotype - 0006), filtering on the location of posting and the employee grade, will give the "proportion of senior management hired from the local community".
Aspect: Indirect Economic Impacts
EC8 Development and impact of infrastructure investments and services provided primarily for public benefit through commercial, in-kind, or pro bono engagement.
This is a qualitative disclosure. First we need to list out the developmental activities and services provided for the public benefit. Then list out its impact. Perhaps we can include a 3rd party agency survey for the authenticity of the information.
EC9 Understanding and describing significant indirect economic impacts, including the extent of impacts.
This is again a qualitative disclosure like secondary employment generated, community welfare measures, medial camps, etc. Please take a look at ITC sustainability report for a win-win situation between business and community.
CONCLUSION:
Of the 9 KPI here,
Qualitative disclosure is for 3 KPIs EC2, EC8, and EC9,
HR - ECM, involved for EC1, EC3, EC5 and EC7,
HR- PA and MM, in EC6,
FI, involved in EC1, EC4.
Disclaimer: The opinions expressed in this blog are purely my personal opinions and has no legal liability on my employer or affiliates or parent organization.
