Case study: How Galaxy creates economic value for its stakeholders
Galaxy Surfactants Limited is one of India’s leading manufacturers of surfactants and other specialty ingredients for the personal care and home care industry. The value creation approach at Galaxy is based on the concept of inclusivity and sustainable growth, i.e., value creation for both the organisation and society at large, including stakeholders.
This case study is based on the 2021-22 Sustainability Report by Galaxy, 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
Galaxy understands that its ability to create value for itself, is connected to the value that it creates for all its stakeholders. Tweet This! In order to create economic value for its stakeholders Galaxy took action to:
- create economic value for employees
- create economic value for the government
- create economic value for shareholders
- create economic value for communities
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With this case study you will see:
- Which are the most important impacts (material issues) Galaxy has identified;
- How Galaxy proceeded with stakeholder engagement, and
- What actions were taken by Galaxy 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 Galaxy identified a range of material issues, such as employee health, safety and well-being, compliance, customer complaint resolution, water security, product sustainability. Among these, creating economic value for its stakeholders stands out as a key material issue for Galaxy.
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 Galaxy engages with:
| Stakeholder Group | Method of engagement |
| Customers
| · Regular business reviews with key customers · Customer satisfaction surveys and feedback · Customer audits and customer questionnaire responses · Meeting customer requirements and requests for improvement on environmental and social responsibility |
| Investors
| · AGM · Annual Reports · Investor Meets · Investor call is arranged after declaration of financial results every quarter. The details for participation are updated on stock exchanges. |
| Government and regulatory bodies | · Statutory and Legal Compliance filings |
| Suppliers and vendors
| · Supplier workshops and annual suppliers meet · Suppliers consultation and auditing · Informing suppliers through feedback mechanism · Supplier Sustainability assessment questionnaire |
| Transporter
| · Transporter consultation and auditing · Informing transporter through a feedback mechanism |
| Employees (Employee and contract employees)
| · Meetings and Trainings · Employee Engagement Survey · 360-degree feedback · One-on-one interviews with managers · Performance communication · Communication meetings with new recruits · Employees can communicate through internal channels · Energy Week, Safety Month, Environment Day celebrations · EWC, Dialogue |
| Community | · CSR initiatives · Sustainability Report · Participation in conferences · One to one interaction |
How stakeholder engagement was made to identify material issues
To identify and prioritise material topics Galaxy engaged with its stakeholders through a survey.
What actions were taken by Galaxy to create economic value for its stakeholders?
In its 2021-22 Sustainability Report Galaxy reports that it took the following actions for creating economic value for its stakeholders:
- Creating economic value for employees
- In 2021-22, Galaxy paid INR Crores 211.81 in employee benefit expenses.
- Creating economic value for the government
- In 2021-22, Galaxy paid INR Crores 68.56 in income tax.
- Creating economic value for shareholders
- In 2021-22, Galaxy paid INR Crores 14.18 in dividends.
- Creating economic value for communities
- In 2021-22, Galaxy paid INR Crores 4.69 in donations/CSR expenses.
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 Galaxy, 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.galaxysurfactants.com/pdf/Sustainability-Report-2021-22.pdf
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