Case study: How Sika creates economic value for its stakeholders
Sika is a specialty chemicals company with a leading position in the development and production of systems and products for bonding, sealing, damping, reinforcing and protecting in the building sector and motor vehicle industry. Sika creates sustainable value for its customers and other stakeholders, including governments through taxes, employees through compensation and benefits, shareholders through dividends, suppliers and service providers through raw material and service prices, and society through taxes and local community projects.
This case study is based on the 2020 GRI Report by Sika, prepared in accordance with the GRI Standards, 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
Financial solidity and long-term profitability ensure that Sika remains a reliable and value-adding partner for all its stakeholders Tweet This!, now and in the future. Economic health enables Sika to share created value with its various stakeholders, be a reliable employer, a responsible taxpayer, and a good corporate citizen that helps communities to flourish. In order to create economic value for its stakeholders Sika took action to:
- create economic value for employees
- create economic value for shareholders, governments and lenders
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With this case study you will see:
- Which are the most important impacts (material issues) Sika has identified;
- How Sika proceeded with stakeholder engagement, and
- What actions were taken by Sika to create economic value for its stakeholders
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What are the material issues the company has identified?
In its 2020 GRI Report Sika identified a range of material issues, such as product quality and reliability, energy management, health and safety, environmental compliance, local community engagement. Among these, creating economic value for its stakeholders stands out as a key material issue for Sika.
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 Sika engages with:
| Stakeholder Group |
| Employees |
| Customers |
| Suppliers |
| Financial analysts |
| Investors |
| Academia |
| Sika Management |
| Sika Board |
| Competitors |
| Regulators |
| Sponsorship partners |
| Local communities |
How stakeholder engagement was made to identify material issues
To identify and prioritise material topics Sika engaged with its stakeholders through an online survey. The stakeholders approached through the survey included employees, customers, financial analysts, investors, Sika Management, suppliers, academia, and sponsoring partners.
What actions were taken by Sika to create economic value for its stakeholders?
In its 2020 GRI Report Sika reports that it took the following actions for creating economic value for its stakeholders:
- Creating economic value for employees
- As a responsible employer, Sika seeks to create economic value for its employees through compensation and various benefits. Accordingly, in 2020, the net value added flows to the various stakeholders included mn CHF 1,528 to Sika’s employees.
- Creating economic value for shareholders, governments and lenders
- Sika creates value for – among others – its shareholders through dividends paid, and for governments through taxes. Thus, in 2020, the net value added flows to the various stakeholders included mn CHF 327 to Sika’s shareholders, mn CHF 280 to governments and mn CHF 33 to lenders.
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:
This case study is based on published information by Sika, 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 following link:
https://www.sika.com/content/dam/dms/corporate/s/glo_Sika_GRI_Report_2020.pdf
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