Case study: How HCC creates economic value for its stakeholders
HCC is a pioneer in India’s infrastructure industry, having executed landmark projects that have defined the country’s progress since 1926. HCC systematically identifies, prioritises, and engages with a diverse set of stakeholders, generating sustainable economic value for all. Tweet This!
This case study is based on the 2020-21 Sustainability Report by HCC, 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
HCC always tries to improve its economic performance by re-crafting its strategic position and calibrating business objectives, so as to create shared value for a wide range of stakeholders. In order to create economic value for its stakeholders HCC took action to:
- create economic value for employees
- create economic value for providers of capital
- create economic value for the government
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With this case study you will see:
- Which are the most important impacts (material issues) HCC has identified;
- How HCC proceeded with stakeholder engagement, and
- What actions were taken by HCC to create economic value for its stakeholders
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What are the material issues the company has identified?
In its 2020-21 Sustainability Report HCC identified a range of material issues, such as diversity and equal opportunity, effluents and waste, non-discrimination, procurement practices, emissions. Among these, creating economic value for its stakeholders stands out as a key material issue for HCC.
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 HCC engages with:
To identify and prioritise material topics HCC International engaged with its stakeholders through the following channels:
| Stakeholder Group | Method of engagement |
| Customers / Clients
| · One to one engagement with the client regularly to find new opportunities and resolve any issue during the operations · Formalised Customer Feedback obtained on various parameters such as Quality of Construction, HSE implementation, Adequacy and Competence of Human Resources, time schedule, etc. through a standard questionnaire on every quarter |
| Suppliers / Subcontractors
| · One on one engagement continuously to fulfil the requirements and resolve the issues · Pre-assessment and feedback system: Every vendor assessed based on various parameters, including the safety and environment, those vendors who got the higher scores to get selected |
| Employees
| · HCC interacted with employees through regular communications, E&C connect emails, employee intranet, departmental meetings, training programmes, and structured performance management system |
| Investors and Shareholders
| · HCC continuously engages with investors and shareholders through regular communications; quarterly analyst meets, AGM, EGM, annual report, publications, grievance committee, designed user-friendly website in July 2019. HCC shows its non-financial performance through Annual Sustainability Report, CSR reporting, and Business Responsibility report |
| JV Partners
| · Partnership development is a critical management approach in the strategic business sector, minimising business risk during the bid and project execution |
| Local Communities
| · HCC continuously engages with the local communities around the project site to identify their needs and expectations. HCC actively engages with local government bodies on a need basis. This approach helps HCC better manage its project site |
What actions were taken by HCC to create economic value for its stakeholders?
In its 2020-21 Sustainability Report HCC reports that it took the following actions for creating economic value for its stakeholders:
- Creating economic value for employees
- Its people are critical to the growth and success of HCC, so HCC remains committed to the creation and retention of a best-in-class workforce. In 2020-21, HCC paid 3,237.40 million INR for employee benefits and wages.
- Creating economic value for providers of capital
- In 2020-21, HCC paid 8,298.91 million INR to providers of capital.
- Creating economic value for the government
- In 2020-21, HCC paid 324.98 million INR to the government (Indian).
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 HCC, 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://hccindia.com/uploads/common/HCC%20Sustainability%20Report%202020-21.pdf
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