Case study: How IIAC creates economic value for its stakeholders
Incheon International Airport Corporation (IIAC) was established for the purpose of smooth air transportation through efficient construction, management and operation of Incheon International Airport, and for the goal of contributing to Korea’s economic development. Creating and sharing value with employees and all its stakeholders, is a top priority for IIAC. Tweet This!
This case study is based on the 2020/2021 Sustainability Report by IIAC, 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.
IIAC seeks to utilise ESG (environmental, social and governance issues) so as to create long-term, sustainable economic and social value for its stakeholders. In order to create economic value for its stakeholders IIAC took action to:
- create economic value for employees
- create economic value for partners
- create economic value for shareholders and investors
- create economic value for the local community
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With this case study you will see:
- Which are the most important impacts (material issues) IIAC has identified;
- How IIAC proceeded with stakeholder engagement, and
- What actions were taken by IIAC to create economic value for its stakeholders
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What are the material issues the company has identified?
In its 2020/2021 Sustainability Report IIAC identified a range of material issues, such as response to COVID-19, ethical and legal compliance, establishment of safe airport, risk management, reinforcement of governance transparency and expertise. Among these, creating economic value for its stakeholders stands out as a key material issue for IIAC.
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 s 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 IIAC engages with:
| Stakeholder Group | Method of engagement |
| Korean Nationals, customers
| · Survey on innovation (7,886 respondents) · Voice of Customers (VOC) (2,589 cases) · SNS such as YouTube, Facebook, etc. (7 cases) · Innovative citizen participation group (34 persons /4 times) · Customer committee (33 persons /2 times) · Innovative citizen participation Hackathon competition (27 cases |
| Government, relevant agencies, local society
| · K-Airport Quarantine Platform (Regular) · Work contact channel with the government (Regular) · Innovative local resident group (30 persons/9 times) · Demand Recovery Committee (12 companies) · New Public Innovation Council (4 companies) · Airport Economic Zone Implementation Council (9 companies) |
| Employees, labour union
| · Innovative Idea Competition (100 cases) · Online proposal board (20 cases) · Open innovation implementation group (123 persons) · Emergency management planning meeting (weekly) · New discussion on methods of overcoming COVID-19 crisis (83 cases) · Labour-management meeting & council (16 times) |
| Vendors, small-medium sized enterprises, subsidiaries
| · SNS such as Kakao Channel (35,000 persons) · Chatbot & SLM(Regular) · Survey (2 times), Happy Call (4 times) · ‘Fly Together’ conference (31 companies) · New Corporate Group Response Centre (Regular) · Meeting for each position in IIAC-Subsidiary (Monthly) |
How stakeholder engagement was made to identify material issues
To identify and prioritise material topics IIAC engaged with its stakeholders through an online survey.
What actions were taken by IIAC to create economic value for its stakeholders?
In its 2020/2021 Sustainability Report IIAC reports that it took the following actions for creating economic value for its stakeholders:
- Creating economic value for employees
- In 2020, IIAC paid KRW 164 billion in employee costs.
- Creating economic value for partners
- In 2020, IIAC paid KRW 569 billion in outsourcing costs.
- Creating economic value for shareholders and investors
- In 2020, IIAC paid KRW 38.6 billion in interests.
- Creating economic value for the local community
- In 2020, IIAC paid KRW 12.4 billion in contributions.
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 IIAC, 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.airport.kr/co_file/ko/file01/SR_2021_eng.pdf
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