Case study: How CLC creates economic value for its stakeholders
Established on February 4, 1959, Cheng Loong Corporation (CLC) is one of the world’s top 100 paper companies, specialising in papermaking and paper converting. Pursuing a sustainable green future with its stakeholders, including employees, investors, customers, suppliers, government entities and local communities, creating sustainable value for all, is a top priority for CLC.
This case study is based on the 2021 Sustainability Report by CLC, 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
CLC seeks to generate, through its operations, long-term value for employees, funders and other stakeholders. Tweet This! In order to create economic value for its stakeholders CLC took action to:
- create economic value for employees
- create economic value for funders
- 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) CLC has identified;
- How CLC proceeded with stakeholder engagement, and
- What actions were taken by CLC 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 CLC identified a range of material issues, such as ethical corporate management, sustainable products & development, air quality management. Among these, creating economic value for its stakeholders stands out as a key material issue for CLC.
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 CLC engages with:
| Stakeholder Group | Method of engagement |
| Employees
| · Department meeting · Factory meeting · Enterprise union · Labour conference · Welfare committee · Year-end meeting · CLC bimonthly journal · EIP, Grievance mailbox, etc. · Proposal system · Employee Opinion Survey · Education and training · HSE talks & health promotion activities |
| Customers
| · Instant customer service hotline · Instant customer compliant E-Management system · Customer satisfaction survey · Innovative technical description · Business description · Customer meeting |
| Shareholders/Investors/ Financial Institutions
| · Spokesperson and stock affairs · Shareholders’ meeting · Institutional Investor Conference · Investor Related meetings · Reply the phone&email · Financial Statements · Annual report · MOPS · Company website |
| Suppliers/Contractors
| · Real-time supplier management system · Supplier audit and evaluation meeting · Suppliers’ visits · Supplier self-assessment questionnaire · Supplier ethics advocacy · Supplier ESH education and training activities · Supplier guidance · Supplier ESG conference |
| Government/Industry Associations
| · Official document exchanges and visits · Face-to-face interviews, phone calls to provide industry experience and suggestions · Meetings · Public association communication platform |
| Society
| · Face-to-face, email, telephone interviews · Cheng Huotien Charity Foundation · Cheng Loong Children’s Care Foundation · Press conferences, advertisements, press releases · Symposium · Local community activities · Factory visits · e-Newsletter · ESG area of CLC Website |
How stakeholder engagement was made to identify material issues
To identify and prioritise material topics CLC engaged with its stakeholders through questionnaires, collecting 1,319 responses.
What actions were taken by CLC to create economic value for its stakeholders?
In its 2021 Sustainability Report CLC reports that it took the following actions for creating economic value for its stakeholders:
- Creating economic value for employees
- In 2021, CLC paid NT$ 4,374,689 thousand for employee salaries and benefits.
- Creating economic value for funders
- In 2021, CLC paid NT$ 2,141,477 thousand to funders.
- Creating economic value for the government
- In 2021, CLC paid NT$ 1,070,794 thousand to the government.
- Creating economic value for society
- In 2021, CLC spent NT$ 15,477 thousand in social expenditures.
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 CLC, 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.clc.com.tw/_upload/files/2021ESG_EN.pdf
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