Case study: How RadiciGroup creates economic value for its stakeholders
With approximately 3,000 employees and a network of production and sales sites located throughout Europe, North America, South America and Asia, RadiciGroup is one of the world’s leading producers of a wide range of chemical intermediates, polyamide polymers, high performance engineering polymers and advanced textile solutions. Today, one of the most important challenges in RadiciGroup’s sustainability strategy is to create lasting value, shared with all its stakeholders.
This case study is based on the 2021 Sustainability Report by RadiciGroup, 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
Generating shared value for employees, shareholders, local communities and all its other stakeholders, is a top priority for RadiciGroup. Tweet This! In order to create economic value for its stakeholders RadiciGroup took action to:
- create economic value for employees
- create economic value for the government
- create economic value for loan providers
- create economic value for shareholders
- create economic value for society
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With this case study you will see:
- Which are the most important impacts (material issues) RadiciGroup has identified;
- How RadiciGroup proceeded with stakeholder engagement, and
- What actions were taken by RadiciGroup to create economic value for its stakeholders
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What are the material issues the company has identified?
In its 2021 Sustainability Report RadiciGroup identified a range of material issues, such as occupational health and safety, emissions, customer satisfaction, employment, energy. Among these, creating economic value for its stakeholders stands out as a key material issue for RadiciGroup.
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 RadiciGroup engages with:
| Stakeholder Group | Method of engagement |
| Workers | · Training, development and assessment programmes · Internal communications · Engagement · Targeted special events · “Sto bene [I feel good]” (WHP) |
| Customers
| · Networking and business meetings · Knowledge sharing · Partnerships and joint projects · Communication · Targeted special events and trade fair |
| Suppliers
| · Networking and business meetings · Knowledge sharing · Partnerships · Acceptance of the Code of Conduct · Communication |
| Group companies
| · Networking and business meetings · Group-wide teams · Knowledge sharing · Communication |
| Shareholders
| · Daily strategic and operational engagement · Reporting activities and programme meetings · Communication |
| Board of Directors & Management
| · Daily strategic and operational engagement · Reporting activities and programme meetings · Knowledge sharing · Group-wide teams |
| Banks and insurance companies | · Networking and business meetings · Sharing information · Partnerships · Communication |
| Environment | · Policies as per Sustainability Report |
| Trade union organisations | · Concerted arrangements · Development of joint projects |
| Local Communities & Territories (schools, etc.) | · Communication · Targeted special events · Activities as per Sustainability Report · RadiciGroup Education Programme · Career days |
| Control and monitoring bodies | · Communication · Sharing and cooperation · Transparent information |
| Competitors | · Networking and business meetings · Social events · Communication |
| Media | · Press Office activities · Active social media presence · Engagement in initiatives |
| Academic institutions | · Targeted special events · Career days · Collaboration (training and profile selection) · Communication |
| Trade associations | · Participation in activities and decision-making processes · Communication |
| Communities | · Communication · Dialogue · Networking and business meetings · Policies as per Sustainability Report |
How stakeholder engagement was made to identify material issues
To identify and prioritise material topics RadiciGroup engaged with its stakeholders through a questionnaire.
What actions were taken by RadiciGroup to create economic value for its stakeholders?
In its 2021 Sustainability Report RadiciGroup reports that it took the following actions for creating economic value for its stakeholders:
- Creating economic value for employees
- In 2021, RadiciGroup paid € 149,042,091 for personnel wages and benefits.
- Creating economic value for the government
- In 2021, RadiciGroup paid € 52,856,534 in taxes.
- Creating economic value for loan providers
- In 2021, RadiciGroup paid € 2,296,089 to loan providers.
- Creating economic value for shareholders
- In 2021, RadiciGroup paid € 40,200,000 to shareholders.
- Creating economic value for society
- In 2021, RadiciGroup paid € 609,608 in contributions and donations.
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 RadiciGroup, 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.radicigroup.com/en/documentation/corporate/report
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