Case study: How Co-op creates economic value for its stakeholders
Co-op is the UK’s largest consumer co-operative, with more than four million active members and a presence in every postal area in the UK. Co-op seeks to create long-term, sustainable value for its members, the communities in which it operates and its stakeholders Tweet This!, by running a successful business.
This case study is based on the 2021 Sustainability Report by Co-op, 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
In 2021, the economic value distributed by Co-op reached £2,019 million. In order to create economic value for its stakeholders Co-op took action to:
- create economic value for employees
- create economic value for the government
- create economic value for members
- create economic value for providers of capital
- create economic value for communities
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With this case study you will see:
- Which are the most important impacts (material issues) Co-op has identified;
- How Co-op proceeded with stakeholder engagement, and
- What actions were taken by Co-op 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 Co-op identified a range of material issues, such as business integrity & responsible governance, climate change, energy & carbon emissions, ethical trade & human rights, sustainable sourcing, colleague wellbeing & mental health. Among these, creating economic value for its stakeholders stands out as a key material issue for Co-op.
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 Co-op engages with:
To identify and prioritise material topics Co-op engaged with its stakeholders through the following channels:
| Stakeholder Group | Method of engagement |
| Members, colleagues, customers, NGOs and partners | · Materiality Review |
| Members | · AGM & National Members’ Council Elections · Join In · Co-op Young Members · National Members’ Council and Committees |
| Colleagues | · Co-op’s listening tools – Talkback, Pulse and Colleague Voice |
| Communities and causes | · Local Community Fund Impact Survey
|
| Partners | · British Retail Consortium (BRC) Climate Action Roadmap |
| Suppliers (Fairtrade)
| · In January 2022, Chief Executive, Food, Jo Whitfield reached out with letters to 24 key producers in Co-op’s supply chain |
| Customers | · Online survey |
| All | · Future of Food |
What actions were taken by Co-op to create economic value for its stakeholders?
In its 2021 Sustainability Report Co-op reports that it took the following actions for creating economic value for its stakeholders:
- Creating economic value for employees
- In 2021, Co-op paid £m 1,398 for employee wages and pension benefits.
- Creating economic value for the government
- In 2021, Co-op paid £m 166 to the government (mainly business rates, employers’ National Insurance and irrecoverable VAT).
- Creating economic value for members
- In 2021, Co-op paid £m 21 to members.
- Creating economic value for providers of capital
- In 2021, Co-op paid £m 132 to providers of capital.
- Creating economic value for communities
- In 2021, Co-op spent £m 41 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 Co-op, 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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