Case study: How CHI creates economic value for its stakeholders
CEBU HOLDINGS, INC. (CHI) is a leading full-line property developer that owns and manages both Cebu Business Park and Cebu I.T. Park, developing, managing, and reinvesting into these two flagship estates. CHI fine-tunes its strategies and invests its capitals in ways attuned to its communities’ highest priorities, creating value in its estates for the greater safety and prosperity of its stakeholders.
This case study is based on the 2020 Integrated Report by CHI, 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.
Creating and delivering sustainable value to all its stakeholders, ensuring mutual benefit, is a top priority for CHI. Tweet This! In order to create economic value for its stakeholders CHI took action to:
- create economic value for employees
- create economic value for suppliers
- create economic value for providers of capital
- create economic value for the government
- create economic value for communities
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With this case study you will see:
- Which are the most important impacts (material issues) CHI has identified;
- How CHI proceeded with stakeholder engagement, and
- What actions were taken by CHI to create economic value for its stakeholders
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What are the material issues the company has identified?
In its 2020 Integrated Report CHI identified a range of material issues, such as diversity, equal opportunity & anti-discrimination, GHG emissions, marketing and labelling, organisational health and safety. Among these, creating economic value for its stakeholders stands out as a key material issue for CHI.
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 CHI engages with:
To identify and prioritise material topics CHI engaged with its stakeholders through the following channels:
| Stakeholder Group | Method of engagement |
| Shoppers, merchants, locators, office lessees | · Integrated marketing · Customer surveys and complaints handling · Conduct of stakeholder engagement sessions |
| LGUs and national government agencies
| · Payment of taxes · Business permits and licenses · Partnerships/ co-sponsored events · Regular reviews · Neighbouring communities as partners and/or beneficiaries to the company’s development programmes · Conduct of stakeholder engagement sessions |
| Individual/ institutional shareholders
| · Sale of shares of stocks · Shareholder inquiries and updates · Report of company performance through stockholders’ meetings and annual reports · Conduct of stakeholder engagement sessions |
| Regulators | · Submission of reports · Disclosures and other requirements · Involvement in SEC/ICD programmes and initiatives · Transparency and adequacy of disclosure |
| Local communities
| · Implementation of development programmes on education, employment, environment, peace and order, livelihood, and alliance strengthening initiatives · Conduct of stakeholder engagement sessions |
| Employees | · Townhall meetings · Climate survey · Volunteer programmes · Conduct of stakeholder engagement sessions · Accreditation, bidding, payment conformity with Process Cycle Time (PCT) standards, programmes to educate and orient contractors and suppliers on QEHS best practices and benefits |
| Media partners | · Conduct of press conferences · Fellowships · Placement of paid advertisements |
What actions were taken by CHI to create economic value for its stakeholders?
In its 2020 Integrated Report CHI reports that it took the following actions for creating economic value for its stakeholders:
- Creating economic value for employees
- In 2020, CHI paid 69 million pesos to employees.
- Creating economic value for suppliers
- In 2020, CHI paid 3,317 million pesos to suppliers.
- Creating economic value for providers of capital
- In 2020, CHI paid 78 million pesos to providers of capital.
- Creating economic value for the government
- In 2020, CHI paid 354 million pesos to the government.
- Creating economic value for communities
- In 2020, CHI paid 714 million pesos to communities.
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 CHI, 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.cebuholdings.com/wp-content/uploads/2017/01/2020-INTEGRATED-REPORT.pdf
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