Case study: How Birla Cellulose creates economic value for its stakeholders
Birla Cellulose is India’s first truly multinational corporation. Present at 6 locations across the globe today, Birla Cellulose produces dissolving grade pulp in India, Canada and Sweden, and a complete range of man-made cellulosic fibres (MMCF). Birla Cellulose seeks to create superior and sustainable value for all its stakeholders Tweet This! through innovation in product and process, excellence in quality, service and people development, and focus on sustainability across its value chain.
This case study is based on the 2019-20 Sustainability Report by Birla Cellulose, 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.
Birla Cellulose is deeply engaged with its value chain partners by working together to improve the sustainability of its products, in order to create a positive social impact and long-term value for all its stakeholders. In order to create economic value for its stakeholders Birla Cellulose took action to:
- create economic value for employees
- create economic value for capital providers
- create economic value for governments
- create economic value for communities
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With this case study you will see:
- Which are the most important impacts (material issues) Birla Cellulose has identified;
- How Birla Cellulose proceeded with stakeholder engagement, and
- What actions were taken by Birla Cellulose 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 Birla Cellulose identified a range of material issues, such as occupational health and safety, chemical management, sustainable procurement, water footprint. Among these, creating economic value for its stakeholders stands out as a key material issue for Birla Cellulose.
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 Birla Cellulose engages with:
To identify and prioritise material topics Birla Cellulose engaged with its stakeholders through the following channels:
| Stakeholder Group | Method of engagement |
| Employees
| · iSay – Interaction with Leadership Team · Townhall Meetings by CXOs · Annual Performance Reviews · Continuous Feedback Programme · Training Programmes · Monetary Award, Recognition Scheme (iApplaud, PRIDE) · Employee Satisfaction Survey |
| Customers
| · Customer Feedback · Visit to Customers · Customer Technical Services · Grievance Redressal |
| Value Chain Partners
| · LIVA Partnership Programme · Fashion Forecast · Exhibitions |
| Multi Stakeholder Organisations | · Innovation · Sustainability · Best Practices · Standards Development |
| Brands & Retailers
| · Fashion Studios · Partnering |
| Suppliers & Contractors | · Vendor Assessment, Supplier Audits, Review Meetings, Contractor Management |
| Communities | · Need Assessment · CSR · Meetings · Social Impact Programmes |
| Investors & Shareholders
| · Investor Results · Board Meeting · Investor Day |
| Media
| · Corporate Communications · Social Media Platforms |
| Government & Regulatory Bodies | · Communication with Regulatory Bodies · Formal Dialogues |
What actions were taken by Birla Cellulose to create economic value for its stakeholders?
In its 2019-20 Sustainability Report Birla Cellulose reports that it took the following actions for creating economic value for its stakeholders:
- Creating economic value for employees
- In FY 2019-20, Birla Cellulose paid USD 194.05 million for employee wages and benefits.
- Creating economic value for capital providers
- In FY 2019-20, Birla Cellulose paid USD 27.1 million to capital providers.
- Creating economic value for governments
- In FY 2019-20, Birla Cellulose paid USD 84.89 million to governments.
- Creating economic value for communities
- In FY 2019-20, Birla Cellulose spent USD 1.98 million 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 Birla Cellulose, 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.birlacellulose.com/policies_reports_files/policies_reports_pdf_30_1614145577.pdf
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