Case study: How EML creates economic value for its stakeholders
Eicher Motors Limited (EML) is a part of the Eicher Group, an automobile brand well-known all over the world for its motorcycles and commercial vehicles. The creation of sustainable value for the business as well as all its stakeholders, is a top priority for EML. Tweet This!
This case study is based on the 2019-20 Sustainability Report by EML, 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
EML strongly believes in the idea of shared value, i.e. value creation for all those who are directly and indirectly connected with EML. In order to create economic value for its stakeholders EML took action to:
- create economic value for employees
- 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) EML has identified;
- How EML proceeded with stakeholder engagement, and
- What actions were taken by EML to create economic value for its stakeholders
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What are the material issues the company has identified?
In its 2019-20 Sustainability Report EML identified a range of material issues, such as GHG emissions and emissions to air, attraction and retention of talent, responsible supply chain, occupational health and safety. Among these, creating economic value for its stakeholders stands out as a key material issue for EML.
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 EML engages with:
To identify and prioritise material topics EML engaged with its stakeholders through the following channels:
| Stakeholder Group | Method of engagement |
| Employees
| · Awareness training · Performance appraisals · Annual employee satisfaction survey · Grievance redressal mechanism |
| Consumers
| · Customer satisfaction survey · Market surveys · Rides & events |
| Suppliers
| · Supplier meets · Training and awareness programmes · Pre-onboarding & Periodic Assessments |
| Dealers
| · Dealer meets · Marketing communications |
| Investors
| · Press releases and publications · Investor meets · AGM · One to one meeting |
| Bankers
| · One-to-one meeting · Press releases · Emails and calls |
| Local communities
| · Community outreach programmes · Press releases and publications |
| Peers and industry ecosystem
| · Industry associations – memberships · External conferences · Press releases |
| Government and regulatory bodies
| · Mandatory compliance reports · Onsite inspections · One-to-one meeting |
What actions were taken by EML to create economic value for its stakeholders?
In its 2019-20 Sustainability Report EML reports that it took the following actions for creating economic value for its stakeholders:
- Creating economic value for employees
- In FY 2019-20, EML paid INR 765.1 for employee wages and benefits.
- Creating economic value for providers of capital
- In FY 2019-20, EML paid INR 683.3 to providers of capital.
- Creating economic value for the government
- In FY 2019-20, EML paid INR 628.3 to the government.
- Creating economic value for communities
- In FY 2019-20, EML spent INR 55.4 in community investments.
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 EML, 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:
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