Case study: How Ayurvet creates economic value for its stakeholders
Ayurvet is one of India’s leading companies in the field of herbal veterinary medicines, value added feed and feed supplements, addressing the health problems of animals by providing natural, innovative and scientifically validated solutions. Ayurvet strongly believes that society and business are complementary to each other and, accordingly, focuses on value creation through its business for all its stakeholders.
This case study is based on the 2021-22 Sustainability Report by Ayurvet, 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 sustainable value for employees, capital providers and all its other stakeholders is a top priority for Ayurvet. Tweet This! In order to create economic value for its stakeholders Ayurvet took action to:
- create economic value for employees
- create economic value for capital providers
- create economic value for the government
- create economic value for society
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With this case study you will see:
- Which are the most important impacts (material issues) Ayurvet has identified;
- How Ayurvet proceeded with stakeholder engagement, and
- What actions were taken by Ayurvet to create economic value for its stakeholders
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What are the material issues the company has identified?
In its 2021-22 Sustainability Report Ayurvet identified a range of material issues, such as water conservation and management, good manufacturing practices, employment and employees’ wellbeing, local community development. Among these, creating economic value for its stakeholders stands out as a key material issue for Ayurvet.
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 Ayurvet engages with:
To identify and prioritise material topics Ayurvet engaged with its stakeholders through the following channels:
| Stakeholder Group | Method of engagement |
| Customer | · Participate in animal fairs, kishan gosthi etc. · E-news letters and magazines · Customer satisfaction survey · Farmer connect programme |
| Employee
| · Employee engagement activities · Training Programme · Performance Appraisal · Employee Feedback Survey · Reward & Recognition |
| Supplier
| · Assessing suppliers before signing the contract · Meeting with suppliers as per need |
| Community
| · Meeting with community representatives · Need assessment survey |
| Shareholders
| · Quarterly Board meetings · Meeting of various committees of Board · Annual Board Meeting |
| Regulatory Authorities
| · Filing of regulatory compliances · Inspection by regulatory authorities |
What actions were taken by Ayurvet to create economic value for its stakeholders?
In its 2021-22 Sustainability Report Ayurvet reports that it took the following actions for creating economic value for its stakeholders:
- Creating economic value for employees
- In 2021-22, Ayurvet paid INR lacs 2552 for employee compensation.
- Creating economic value for capital providers
- In 2021-22, Ayurvet paid INR lacs 1629 to capital providers.
- Creating economic value for the government
- In 2021-22, Ayurvet paid INR lacs 2218 to the government.
- Creating economic value for society
- In 2021-22, Ayurvet spent INR lacs 200 in 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 Ayurvet, 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.ayurvet.com/about-us/sustainability-report/
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