Case study: How HTC creates economic value for its stakeholders
The HTC Corporation (HTC) was established in 1997 and is a global leader in innovative mobile phone & virtual reality design. HTC’s approach to brand building is both pragmatic and effective and is based on, among others, creating and sustaining value for both its shareholders and all its stakeholders.
This case study is based on the 2020 CSR Report by HTC, 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
HTC is committed to generating shared value for all its stakeholders Tweet This!, including shareholders, employees, and communities. In order to create economic value for its stakeholders HTC took action to:
- create economic value for employees
- create economic value for suppliers
- create economic value for the government
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With this case study you will see:
- Which are the most important impacts (material issues) HTC has identified;
- How HTC proceeded with stakeholder engagement, and
- What actions were taken by HTC to create economic value for its stakeholders
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What are the material issues the company has identified?
In its 2020 CSR Report HTC identified a range of material issues, such as customer privacy, labour/management relations, effluents and waste, information security, environmental compliance. Among these, creating economic value for its stakeholders stands out as a key material issue for HTC.
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 HTC engages with:
| Stakeholder Group | Method of engagement |
| Investors
| · Shareholder conference · Annual report · Monthly revenue statement · Visiting investors · Market Observation Post System · Investor Relationship Website · Spokesperson |
| Enterprise customers | · Business review with key customers (QBR meeting) · Reply to customer inquiries · Customer audit and replies to customer’s questionnaires · Meeting the customer requirements about environmental and social responsibilities |
| General consumers | · Local service contact channels in 11 languages to provide customers with real-time communication and assistance · Websites in different languages for customers to give feedback and to access information in a real-time manner (59 established) · Dedicated email boxes for different functions (Support, Copyright, Security, etc.) to provide convenient customer contact with HTC · Automated support survey invitations to collect customer satisfaction feedback. · Immediate corrective actions in place based on customer’s insights |
| Employees | · Department quarterly meeting · One-on-one interview with supervisors · Annual performance appraisal/ interview · New employee seminar · Employee assistance hotline and mailbox, Health Centre · Labour-management meeting |
| Suppliers | · Supplier communication conference · Guidance and audit for suppliers · Cooperation project with suppliers for addressing CSR and greenhouse gas issues |
| Contractors
| · Induction training · Patrol inspection in the facility |
| Local Communities | · Positive employee engagement in public interest activities · HTC cooperation with governmental agencies and non- profit organisations in eco, environmental and other public welfare activities |
| Governmental agencies
| · Official document, E-mail, on-site Visit · Meeting such as Forums, Seminars etc. |
How stakeholder engagement was made to identify material issues
To identify and prioritise material topics HTC engaged with its stakeholders through online survey questionnaires sent to employees, consumers, customers and suppliers, with a total of over 80 responses received.
What actions were taken by HTC to create economic value for its stakeholders?
In its 2020 CSR Report HTC reports that it took the following actions for creating economic value for its stakeholders:
- Creating economic value for employees
- In 2020, HTC paid NT$ 5,267 million for employee wages.
- Creating economic value for suppliers
- In 2020, HTC’s total purchases from suppliers reached NT$ 2,631 million.
- Creating economic value for the government
- HTC upholds the spirit of tax compliance and corporate social responsibility. Accordingly, in 2020, HTC paid NT$ 4 million in income tax.
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 HTC, 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://dl.htc.com/csr/HTC-CSR-report-2020-eng.pdf
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