Case study: How Compal creates economic value for its stakeholders
Established in 1984, Compal Electronics is a Taiwanese original design manufacturer, handling the production of notebook computers, monitors, tablets and televisions for a variety of clients around the world. As the industry leader, Compal seeks to give back to society with a responsible attitude, and bring higher value to all its stakeholders. Tweet This!
This case study is based on the 2021 Sustainability Report by Compal, 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
Compal views growing the company’s economic value as its long-term goal and seeks to fulfill its social responsibilities as a global corporate citizen, responding to the expectations of shareholders, customers, partners and other stakeholders. In order to create economic value for its stakeholders Compal took action to:
- create economic value for employees
- create economic value for shareholders
- create economic value for the state
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With this case study you will see:
- Which are the most important impacts (material issues) Compal has identified;
- How Compal proceeded with stakeholder engagement, and
- What actions were taken by Compal 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 Compal identified a range of material issues, such as honest operation and anti-corruption, pandemic prevention and management, privacy and information security, labour practice and human rights. Among these, creating economic value for its stakeholders stands out as a key material issue for Compal.
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 Compal engages with:
| Stakeholder Group | Method of engagement |
| Customer
| · Regular meetings for communication and discussion · Discussion through e-mails · Customer audit discussion · Participate in customer-supplier meeting and raise relevant questions |
| Employees
| · Labour-management Communication meeting · Compal newsletter welcoming the life creations of colleagues · Welfare Committee meetings · Internal website and suggestion box for employees, special line for sexual harassment complaints, mail box for fraud or violation of work ethics · Activity promotion through internal websites and e-mails, CSR fan page push broadcast and opinions reply · Education and training · Employee Assistance Programme |
| Investors/ Shareholders
| · Shareholders’ Meeting · Investor seminar · Shareholders’ Hotline/Mailbox · Market observation post system |
| Suppliers
| · Announcement of latest regulations via internal supplier system, CSR website · Discussion through e-mails · Supplier complaint mailbox · Online evaluation and on-site audit for Compal suppliers · Supplier meetings to reach manufacturer’s opinions and respond to relevant questions |
| Governments
| · Official documents · Participation in government projects · Regulatory conferences/seminars · Visits |
| Media
| · Press release · Press conference |
| Community
| · Participation in community activities · Discussion through e-mails · Discussion over phone · CSR fan page push broadcast and opinions reply |
| Non-profit organisations
| · Participation in public welfare activities · On-site visit · Telephone contact |
How stakeholder engagement was made to identify material issues
To identify and prioritise material topics Compal engaged with its stakeholders through online questionnaires, with 654 valid questionnaires successfully collected.
What actions were taken by Compal to create economic value for its stakeholders?
In its 2021 Sustainability Report Compal reports that it took the following actions for creating economic value for its stakeholders:
- Creating economic value for employees
- In 2021, Compal paid NTD 294 billion in employee salaries.
- Creating economic value for shareholders
- In 2021, Compal paid NT 2.0 in dividends and NTD 1,215 billion in shareholders’ equity.
- Creating economic value for the state
- In 2021, Compal paid NTD 37.3 billion in income tax.
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 Compal, 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.compal.com/CSR/Upload/ReportImages/2022073019315008.pdf
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