Case study: How ENKA creates economic value for its stakeholders
ENKA is the largest construction company in Turkey providing services all around the world, with the collective experience of completing projects in 48 countries and more than 20 thousand employees. Since its establishment, ENKA, with a sense of responsibility towards society, seeks to create sustainable value for all its stakeholders. Tweet This!
This case study is based on the 2021 Sustainability Report by ENKA, 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.
In 2021, ENKA generated USD 2.86 billion revenue from the 4 main sectors in which it is active. In order to create economic value for its stakeholders ENKA took action to:
- create economic value for employees
- create economic value for the state
- create economic value for capital owners
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With this case study you will see:
- Which are the most important impacts (material issues) ENKA has identified;
- How ENKA proceeded with stakeholder engagement, and
- What actions were taken by ENKA 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 ENKA identified a range of material issues, such as occupational health and safety, employee rights and employee satisfaction, product and service quality, customer satisfaction. Among these, creating economic value for its stakeholders stands out as a key material issue for ENKA.
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 ENKA engages with:
| Stakeholder Group | Method of engagement |
| Employees
| · Websites · Social media · Newsletters – Sustainability and Compliance, OHS, Environment, Quality Management Systems, Information Security, Human Resources, General Announcements, Lessons Learned and Best Practices · ENKA Academy · Employee Loyalty and Satisfaction Survey · Audits, Ethics and Compliance Audits · Ethics Hotline, Other Reporting Mechanisms, Project Grievance Mechanisms · Information Security Incident Notification Form · Employee Volunteering Programme |
| Customers | · Customer Satisfaction Survey · Websites · Annual Reports · Sustainability Reports, CDP Reports · ENKA Document Management System · Meetings · Ethics Hotline, Other Reporting Mechanisms, Project Grievance Mechanisms |
| Business partners
| · Websites · ENKA Academy · Evaluation Surveys · ENKA Code of Business Conduct and ENKA Supplier Code of Conduct · Management Systems Audits · ENKA Document Management System · Meetings · Ethics Hotline, Other Reporting Mechanisms, Project Grievance Mechanisms · Audits · Sustainability Reports, CDP Reports |
| Shareholders
| · General Assembly · Websites · Annual Reports · Sustainability Reports, CDP Reports · Material Disclosures, Financial Reports, Periodic Disclosures (Public Disclosure Platform – KAP) · Meetings · Ethics Hotline and Other Reporting Mechanisms |
| Social stakeholders
| · Websites · Media, Social Media · Annual Reports · Sustainability Reports, CDP Reports · Meetings · Ethics Hotline, Other Reporting Mechanisms, Project Grievance Mechanisms · Memberships |
| Public institutions
| · Annual Reports · Websites · Periodic Disclosures (Public Disclosure Platform – KAP) · Sustainability Reports, CDP Reports · Meetings · Official Correspondences · Audits · Memberships · Career Days, Events of University Clubs and Societies · Conferences and Panels |
How stakeholder engagement was made to identify material issues
To identify and prioritise material topics ENKA engaged with its stakeholders through a survey among a total of 385 stakeholder representatives from various stakeholder groups, including ENKA Group’s Sustainability Committee and senior management, employees, suppliers, non-governmental organisations, professional associations, subsidiaries and customers.
What actions were taken by ENKA to create economic value for its stakeholders?
In its 2021 Sustainability Report ENKA reports that it took the following actions for creating economic value for its stakeholders:
- Creating economic value for employees
- In 2021, ENKA paid $ 275,430,000 in employee salaries, $ 42,169,000 in social security expenditures, and $ 4,737,000 in other benefits.
- Creating economic value for the state
- In 2021, ENKA paid $ 121,788,726 in tax expenditures.
- Creating economic value for capital owners
- In 2021, ENKA paid TL 1,992,576,000 to capital owners.
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
78% of the world’s 250 largest companies report in accordance with the GRI Standards
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References:
This case study is based on published information by ENKA, 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.enka.com/allfiles/pdf/ENKA_Sustainability_Report_2021.pdf
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