Case study: How DCM Shriram creates economic value for its stakeholders
DCM Shriram Limited is a leading business conglomerate headquartered at New Delhi since 1990, with a portfolio that spans across a diverse range of sectors consisting of cement, fertilizers, chemicals, sugar, PVC resins and other products. DCM Shriram believes in the philosophy ‘Businesses can create significant social value alongside economic value’ and, accordingly, seeks to generate sustainable value for all its stakeholders.
This case study is based on the 2021-22 Sustainability Report by DCM Shriram, 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
Creating, through its operations, long-term value for employees, shareholders, communities, and all its stakeholders, is a top priority for DCM Shriram. Tweet This! In order to create economic value for its stakeholders DCM Shriram took action to:
- create economic value for employees
- create economic value for shareholders
- create economic value for the state
- create economic value for communities
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With this case study you will see:
- Which are the most important impacts (material issues) DCM Shriram has identified;
- How DCM Shriram proceeded with stakeholder engagement, and
- What actions were taken by DCM Shriram to create economic value for its stakeholders
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What are the material issues the company has identified?
In its 2021-22 Sustainability Report DCM Shriram identified a range of material issues, such as climate change, cost optimization and profitability, health and safety, solid waste management. Among these, creating economic value for its stakeholders stands out as a key material issue for DCM Shriram.
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 DCM Shriram engages with:
To identify and prioritise material topics DCM Shriram engaged with its stakeholders through the following channels:
| Stakeholder Group | Method of engagement |
| Employees
| · Emails, meetings and intranet portals · Induction programmes/ trainings / workshops · Performance appraisal reviews · Employee satisfaction surveys · Employee engagement programmes · Grievance redressal mechanism · Trade union meetings |
| Shareholder & Investors
| · Annual General Meeting · Exclusive section in corporate website · Annual Report · Newsletters and social media platforms · Regular business interaction · Grievance redressal mechanism |
| Customers
| · Emails and meetings · Market surveys · Customer surveys · Plant visits · Grievance redressal mechanism |
| Suppliers, Dealers & Distributors
| · Annual Meet with suppliers and customers · Emails and meetings · Plant visits · Other interactions on a regular basis |
| Farmers
| · Need based regular interaction · CSR function · Awareness camps on good agricultural practices · Farmer training programmes and workshops |
| Local Communities
| · Open dialogue with local communities · Need assessments · Awareness meets and health camps · Celebration of cultural festivals / occasion (Environment day, Safety day etc.) · Public hearing for greenfield / expansion projects |
| Civil Society
| · Collaboration of various CSR projects · Discussions on community issues with civil society organisations |
| Government & regulatory bodies
| · Regular inspections · Periodic statutory reports · Regular direct and indirect interactions through industrial associations and other bodies |
| Industry Associations | · Meetings, seminars, workshops |
| Media
| · Advertisements / promotions · Press conference / press releases · Interviews of senior management |
What actions were taken by DCM Shriram to create economic value for its stakeholders?
In its 2021-22 Sustainability Report DCM Shriram reports that it took the following actions for creating economic value for its stakeholders:
- Creating economic value for employees
- In FY 2021-22, DCM Shriram spent INR 783.29 Crore on defined employee benefit plan obligations and other retirement plans.
- Creating economic value for shareholders
- In FY 2021-22, DCM Shriram paid INR 212.08 Crore in dividends.
- Creating economic value for the state
- In FY 2021-22, DCM Shriram paid INR 498.85 Crore in taxes.
- Creating economic value for communities
- In FY 2021-22, DCM Shriram spent INR 17.425 Crore 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 DCM Shriram, 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.dcmshriram.com/docs/sustainability-report/sustainability-report21-22.pdf
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