What do accountants count?

We think we make rational economic decisions. We don’t. Our decisions are driven by intangible values of which we may not be aware, or about which we may not care.
‘Radical accountant’ Baruch Lev, along with others, is proposing that accepted GAAP accounting has to evolve to evaluate and incorporate intangibles in a company’s accounts.
Can accountants count intangibles like happiness? The Kingdom of Bhutan is famous for its invention of a Gross National Happiness (GNH) metric. In Bhutan,
The four pillars of GNH are the promotion of sustainable development, preservation and promotion of cultural values, conservation of the natural environment, and establishment of good governance. (Wikipedia)
A Brisbane company, reinvention, has mapped the GNH to what they call GCH – Gross Company Happiness. It looks like this:
Component Indicators of Bhutan’s Gross National Happiness Index |
Corresponding Gross Company Happiness Indicators |
|
Mental health index |
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Mindfulness and mental clarity |
Emotional balance index |
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More positive than negative emotions |
Spirituality index |
= |
Sense of meaning |
Knowledge of tsechu and folktales |
= |
Knowledge of the company’s history and stories |
# of days of participation in cultural festivals per year |
= |
Times spent in team engagement/team building activities |
Ability to understand lozey exchange |
= |
Ability to understand how to get things done in the company |
Values important in upbringing |
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Company values consistent with personal values |
Hours free from labour per day |
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Work/life balance |
Frequency of socializing with friends |
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Frequency of good connections with colleagues |
Government performance index |
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Performance of the company’s administration |
Human rights index |
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Sense of fairness and justice |
Trust in institutions |
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Trust in the hierarchy |
Help available in times of need |
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Help available in times of need |
Safety from human harm when walking at night |
= |
Health and Safety |
Family relationship index |
= |
Quality of close relationships |
Percent of family members living in the same community |
= |
Access to a strong support network |
Satisfaction with security of finances and livelihood |
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Security of employment |
Annual household income |
= |
Remuneration |
Household members to rooms ratio |
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Comfortable work environment |
Ownership of house |
= |
Care for the company |
River/air pollution/soil erosion as local problem |
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Environmental responsibility |
Self-reported health status |
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Health and fitness |
# of healthy days in the last month |
= |
# of healthy days in the last month |
# of traditional arts and crafts known |
= |
Involvement in social activities with others |
Satisfaction with quality of education |
= |
Access to learning and development |
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