Case study: How EROSKI creates economic value for its stakeholders
EROSKI is the leading retail mass-consumption goods and services cooperative distribution group in Spain and a benchmark operator in Galicia, the Basque Country, Navarre, Catalonia and the Balearic Islands. EROSKI not only shares the profit generated by its business activity among the employee partners of the cooperative and with the other Group companies, but also generates wealth directly in the different actors of its value chain, including the government, suppliers and others.
This case study is based on the 2020 Annual Report by EROSKI, 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.
Generating, through its operations, long-term, sustainable value for all its stakeholders, is a top priority for EROSKI. Tweet This! In order to create economic value for its stakeholders EROSKI took action to:
- create economic value for employees
- create economic value for suppliers
- create economic value for the government
- create economic value for society
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With this case study you will see:
- Which are the most important impacts (material issues) EROSKI has identified;
- How EROSKI proceeded with stakeholder engagement, and
- What actions were taken by EROSKI to create economic value for its stakeholders
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What are the material issues the company has identified?
In its 2020 Annual Report EROSKI identified a range of material issues, such as customer health and safety, diversity, equality and inclusion, ethical, transparent and responsible conduct, occupational safety and health. Among these, creating economic value for its stakeholders stands out as a key material issue for EROSKI.
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 EROSKI engages with:
Stakeholder Group | Method of engagement |
Customers and Partners Customer
| · Customer care service (in-store, telephone and website) · EROSKI Club magazine · CAPRABO Sabor magazine · Customer satisfaction studies · Customer listening programming · Promotional brochures · EROSKI App Newsletters |
Consumers
| · CONSUMER EROSKI magazine and www.consumer.es · School of Nutrition (www.escueladealimentacion.es ) · Survey on Nutrition in the Spanish Population (ENPE) · Awareness-raising campaigns (health, solidarity and environment) · Public institutions and organisations that look after the interests of consumers (Kontsumobide, Council of Consumers and Users, Spanish Agency of Consumption, Food Security and Nutrition – AECOSAN, etc.) · Press releases and conferences |
Employees
| · Publications: Nexo, Néctar, La Parrapla, intranets (Prisma, ForumNet), minutes, corporate communications · Evaluation interviews · Work culture surveys · Audits (Code of Ethics) · Whistle-blowing channel |
Employee partners
| · Corporate shareholding bodies · Newsletters · Own Client Partner and consumer mechanisms |
Supplier companies
| · Supplier Care Service Publications: Nexo Logística · EROSKI Agreements with SMEs · Collaboration agreements · Sectoral committees · Local product promotion campaigns · Audits (quality control) · Permanent and occasional forums |
Financial institutions/ Investors
| · Corporate Governance Report · Consolidated Financial Statements Report · Press releases and conferences · CNMV and EROSKI website |
Franchisees
| · “With you in franchising” programme · Direct communication with the staff of the Franchise Department of the General Management of the Network |
Governments
| · Collaboration agreements and arrangements · Meetings with public representatives · Business and consumer cooperative associations (ACES, ANGED, AECOC, etc.) |
Tertiary sector and other social agents
| · Meetings with representatives of the different organisations · EROSKI Foundation Scientific Committee · Universities: agreements, scholarships · NGOs: collaboration agreements, sponsorships, sessions, stands |
How stakeholder engagement was made to identify material issues
To identify and prioritise material topics EROSKI engaged with its stakeholders through an online survey and interviews.
What actions were taken by EROSKI to create economic value for its stakeholders?
In its 2020 Annual Report EROSKI reports that it took the following actions for creating economic value for its stakeholders:
- Creating economic value for employees
- In 2020, EROSKI paid 495 million euros for employee wages, salaries and benefits.
- Creating economic value for suppliers
- In 2020, EROSKI paid 3.871 million euros to suppliers.
- Creating economic value for the government
- In 2020, EROSKI paid 222 million euros in taxes.
- Creating economic value for society
- In 2020, EROSKI paid 14 million euros for social purposes and for training and informing consumers.
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 EROSKI, 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://corporativo.eroski.es/wp-content/uploads/2021/07/Memoria-EROSKI-2020_eng.pdf
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