Case study: How Dangote Cement creates economic value for its stakeholders
Dangote Cement Plc is Sub-Saharan Africa’s leading cement company, with a production capacity of 51.6 million tonnes per year across ten countries. Dangote Cement is supporting Africa’s transformation, while creating sustainable value for all its stakeholders. Tweet This!
This case study is based on the 2021 Annual Report by Dangote Cement, 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.
As a brand that is built on a vision to create sustainable, long-term value for all its stakeholders, Dangote Cement prioritises its environmental, social and governance responsibilities and understands that these ultimately translate to business sustainability. In order to create economic value for its stakeholders Dangote Cement took action to:
- create economic value for employees
- create economic value for shareholders
- create economic value for the government
- create economic value for suppliers
- create economic value for communities
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With this case study you will see:
- Which are the most important impacts (material issues) Dangote Cement has identified;
- How Dangote Cement proceeded with stakeholder engagement, and
- What actions were taken by Dangote Cement to create economic value for its stakeholders
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What are the material issues the company has identified?
In its 2021 Annual Report Dangote Cement identified a range of material issues, such as career growth and development, supply chain efficiency, corruption and anti-competitive behaviour, resource availability. Among these, creating economic value for its stakeholders stands out as a key material issue for Dangote Cement.
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 Dangote Cement engages with:
| Stakeholder Group | Method of engagement |
| Employees | · Meetings in small groups · One-on-one engagements · Notice board · Emails · Newsletters · Combined annual report and sustainability report · Surveys · Awards and recognition, etc. |
| Vendors, suppliers and contractors
| · Emails · One-on-one engagements · Meetings |
| Distributors and customers
| · Emails · One-on-one engagements · Meetings · Customer service week |
| Host communities
| · One-on-one engagements · Town hall meetings · Interest group communications · Surveys |
| Media
| · Press releases, · Media parley · Combined annual report and sustainability report · Quarterly and annual financial reports · Conferences |
| Government/regulatory agencies
| · Official letters/mails · Periodic assessments · Compliance filing and reporting · Quarterly and annual financial reports · Combined annual report and sustainability report |
| Financiers/banks
| · Quarterly and annual financial reports · Combined annual report and sustainability report · Meetings |
| External affiliations/associations
| · Letters · Meetings · Combined annual report and sustainability report · Workshops · Other fora |
| Non-governmental organisations/CSOs
| · Quarterly and annual financial reports · Combined annual report and sustainability report · Meetings · Partnerships |
| Labour unions
| · Meetings · Emails · Letters · Combined annual report and sustainability report |
| Investors/shareholders
| · Annual General Meeting · Extraordinary General Meeting · Investor relations for a · Quarterly and annual financial reports · Combined annual report and sustainability report |
How stakeholder engagement was made to identify material issues
To identify and prioritise material topics Dangote Cement engaged with its stakeholders through a survey.
What actions were taken by Dangote Cement to create economic value for its stakeholders?
In its 2021 Annual Report Dangote Cement reports that it took the following actions for creating economic value for its stakeholders:
- Creating economic value for employees
- In 2021, Dangote Cement paid ₦69,278 million for employee wages, salaries and benefits.
- Creating economic value for shareholders
- In 2021, Dangote Cement paid ₦272,005 million in dividends to shareholders.
- Creating economic value for the government
- In 2021, Dangote Cement paid ₦173,927 million in taxes.
- Creating economic value for suppliers
- In 2021, Dangote Cement paid ₦409,216 million in local procurement.
- Creating economic value for communities
- In 2021, Dangote Cement paid ₦2,490 million in social/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 Dangote Cement, 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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