Case study: How Arcor Group creates economic value for its stakeholders
Arcor Group is the leading food company and one of the largest sugar producers in Argentina, as well as the world’s leading producer of hard candy. Establishing trusting and lasting relationships with its stakeholders throughout its value chain, creating sustainable value for all, is a top priority for Arcor Group.
This case study is based on the 2020 Sustainability Report by Arcor Group, 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
True to its entrepreneurial spirit, Arcor Group always takes on new challenges that allow it to grow and generate long-term value for a wide range of stakeholders. Tweet This! In order to create economic value for its stakeholders Arcor Group took action to:
- create economic value for employees
- create economic value for the government
- create economic value for capital suppliers
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With this case study you will see:
- Which are the most important impacts (material issues) Arcor Group has identified;
- How Arcor Group proceeded with stakeholder engagement, and
- What actions were taken by Arcor Group to create economic value for its stakeholders
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What are the material issues the company has identified?
In its 2020 Sustainability Report Arcor Group identified a range of material issues, such as preservation of resources and biodiversity, quality and customer satisfaction, safety and hygiene, local communities. Among these, creating economic value for its stakeholders stands out as a key material issue for Arcor Group.
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 Arcor Group engages with:
| Stakeholder Group |
| Government and Society |
| Media and opinion leaders |
| Shareholders |
| Collaborators |
| Suppliers and Customers |
| Community |
| Consumers |
How stakeholder engagement was made to identify material issues
To identify and prioritise material topics, Arcor Group carried out meetings with its key stakeholders.
What actions were taken by Arcor Group to create economic value for its stakeholders?
In its 2020 Sustainability Report Arcor Group reports that it took the following actions for creating economic value for its stakeholders:
- Creating economic value for employees
- In 2020, Arcor Group paid 40,431.9 million pesos for employee salaries, wages and social security contributions.
- Creating economic value for the government
- In 2020, Arcor Group paid 9,372.3 million pesos in taxes (direct taxes, export rights, taxes, fees and contributions, income tax).
- Creating economic value for capital suppliers
- In 2020, Arcor Group paid 10,873.8 million pesos to capital suppliers.
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 Arcor Group, 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://imagen.arcor.com/ingles/sustainability-report-2020.pdf
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