Case study: How TPCORP creates economic value for its stakeholders
Textile Prestige (Public) Company Limited and other companies in the TPCORP Group are engaged in the manufacturing and distribution of non-woven fabric products and materials capable of production expansion to related industries through the use of modern machinery and technologies. TPCORP operates by adhering to the principles of business ethics and by building cooperation between the company and stakeholders, in order to promote TPCORP’s performance and meet the basic needs of all stakeholders, creating economic value for every stakeholder group.
This case study is based on the 2019 Sustainability Report by TPCORP published on the Global Reporting Initiative Sustainability Disclosure Database that can be found at this link. Through all case studies we aim to demonstrate what CSR/ ESG/ sustainability reporting done responsibly means. Essentially, it means: a) identifying a company’s most important impacts on the environment, economy and society, and b) measuring, managing and changing.
Abstract
Creating economic value and benefits for all its stakeholders, is a top priority for TPCORP. Tweet This! In order to create economic value for its stakeholders TPCORP took action to:
- create economic value for shareholders and employees
- generate economic benefits for communities, suppliers and sub-contractors
- create economic value for the government sector
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With this case study you will see:
- Which are the most important impacts (material issues) TPCORP has identified;
- How TPCORP proceeded with stakeholder engagement, and
- What actions were taken by TPCORP to create economic value for its stakeholders
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What are the material issues the company has identified?
In its 2019 Sustainability Report TPCORP identified a range of material issues, such as business ethics, client and product responsibility, occupational health and safety, human resource development. Among these, creating economic value for its stakeholders stands out as a key material issue for TPCORP.
Stakeholder engagement in accordance with the GRI Standards
The Global Reporting Initiative (GRI) defines the Principle of Stakeholder Inclusiveness when identifying material issues (or a company’s most important impacts) as follows:
Stakeholders must be consulted in the process of identifying a company’s most important impacts and their reasonable expectations and interests must be taken into account. This is an important cornerstone for CSR / sustainability reporting done responsibly.
Key stakeholder groups TPCORP engages with:
To identify and prioritise material topics TPCORP engaged with its stakeholders through the following channels:
| Stakeholder Group | Method of engagement |
| Shareholders
| · Annual shareholder meetings · Annual reports · Email, company website, telephone |
| Employees
| · Meetings with employee /agency representatives · Seminars and trainings (in line with work plans) · Email, intranet, company website, announcements · Suggestions box |
| Communities
| · Discussions · Telephone · Public announcement boards · Annual meetings |
| Clients
| · Email, company website, telephone · Satisfaction survey form |
| Suppliers | · Email, company website, telephone |
| Sub-Contractors | · Email, company website, telephone |
| Government Sector
| · Email, company website, telephone · Reports in line with legal requirements · Participation in activities and projects organised by government agencies |
| Nearby Factories
| · Meetings, telephone · Participation in public relations activities on various occasions |
What actions were taken by TPCORP to create economic value for its stakeholders?
In its 2019 Sustainability Report TPCORP reports that it took the following actions for creating economic value for its stakeholders:
- Creating economic value for shareholders and employees
- TPCORP creates economic value for its shareholders through dividends (Rate of Dividend Payment per Net Profit: 86.96 %), and for its employees through different means, including:
- Salaries, wages, and benefits
- Payments into the provident fund
- Employee development spending
- Generating economic benefits for communities, suppliers and sub-contractors
- TPCORP generates various economic benefits for local communities through:
- The amount of support for community activities
- The percentage of locally-sourced employees (in provinces where factories are located), which is 30.06 %
- Additionally, TPCORP generates economic benefits for suppliers and sub-contractors through its operating expenses.
- Creating economic value for the government sector
- TPCORP creates economic value for the government sector by paying various taxes, including the following:
- Corporate income tax and local maintenance tax
- Property tax, special business tax and other taxes
Which GRI Standards and corresponding Sustainable Development Goals (SDGs) have been addressed?
The GRI Standard addressed in this case is: Disclosure 201-1 Direct economic value generated and distributed
Disclosure 201-1 Direct economic value generated and distributed corresponds to:
- Sustainable Development Goal (SDG) 8: Decent Work and Economic Growth
- Targets: 8.1, 8.2
- Sustainable Development Goal (SDG) 9: Industry, Innovation and Infrastructure
- Targets: 9.1, 9.4, 9.5
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References:
1) This case study is based on published information by TPCORP, located at the link below. For the sake of readability, we did not use brackets or ellipses. However, we made sure that the extra or missing words did not change the report’s meaning. If you would like to quote these written sources from the original, please revert to the original on the Global Reporting Initiative’s Sustainability Disclosure Database at the link:
http://database.globalreporting.org/
2) https://www.globalreporting.org/standards/gri-standards-download-center/
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