Are Companies Walking the Talk on Diversity and Inclusion? A Holistic Examination of Human Capital Disclosure Practices

This study examines human capital disclosure (HCD) practices among NIFTY 100 environmental, social, and governance (ESG) index companies in India, with a focus on sustainability reports. Using the GRI-G4 framework and prior academic models, a multidimensional HCD index was developed to measure disclosure across employment, health and safety, training, diversity, and human rights. Content analysis and panel regression reveal that while companies extensively report on health, safety, and training, disclosures regarding diversity, equity, and inclusion (DEI) and human rights remain limited and inconsistent. These findings underscore selective disclosure practices, with firms prioritizing reputationally safer domains while underreporting sensitive issues. The study contributes theoretically by extending stakeholder, signaling, and information disclosure perspectives to the Indian ESG context and methodologically by offering a replicable coding scheme that captures disclosure depth. Practical implications underscore the need for managers to enhance DEI reporting. At the same time, regulators, such as SEBI, must enforce standardized and transparent disclosures to align with global ESG standards and the Sustainable Development Goals.