Case study: How Hyundai E&C creates economic value for its stakeholders
Since its foundation in 1947, Hyundai E&C has opened a new horizon in the global construction industry, having successfully carried out 873 projects in 62 countries and leaping forward as a global construction leader, based on its accumulated technology and proven business execution capabilities. Hyundai E&C constantly creates new, sustainable value and builds a better world with creative ideas and passion, offering a greater future with constant innovations and bold initiatives.
This case study is based on the 2022 Sustainability Report by Hyundai E&C, 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 long-term value for all its stakeholders through technological innovation, is a top priority for Hyundai E&C. Tweet This! In order to create economic value for its stakeholders Hyundai E&C took action to:
- create economic value for employees
- create economic value for the government
- create economic value for suppliers
- create economic value for shareholders and investors
- create economic value for local communities
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With this case study you will see:
- Which are the most important impacts (material issues) Hyundai E&C has identified;
- How Hyundai E&C proceeded with stakeholder engagement, and
- What actions were taken by Hyundai E&C to create economic value for its stakeholders
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What are the material issues the company has identified?
In its 2022 Sustainability Report Hyundai E&C identified a range of material issues, such as safety first and prevention of major accidents, securing customer satisfaction management through quality control, creating sustainable management performance, propelling ethical & compliance management and fair trade. Among these, creating economic value for its stakeholders stands out as a key material issue for Hyundai E&C.
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 Hyundai E&C engages with:
| Stakeholder Group | Method of engagement |
| Government, Media and Association
| · Public Hearings · Press Release · Association Activities |
| Employee
| · Intranet, HDEC Newsletter, SNS, Blog · Next Leader Board, Discussion with CEO · Employee Engagement Survey, H·Dudrim · Sustainability Management Council |
| Customer
| · Call Centre, Customer Centre (web), SNS, Blog · Customer Satisfaction Survey · Hillstate Styler · H·Dudrim · Share ESG policies in the supply chain with domestic/overseas clients |
| Supplier
| · Meetings · Hi-partner System · Joint Cooperation Committee, Win-win Growth Support Centre · Supplier satisfaction survey · H·Dudrim |
| Society, NGOs and Social Groups
| · Local social contribution activities · Community meeting · External social contribution committee · Civil society and environmental groups · Global ESG initiatives |
| Shareholder and Investor
| · General shareholders’ meetings · Investment presentation · Public disclosure |
| Sustainability Experts, Academia and Research Institute | · Sustainability Reports · Participation in surveys and external evaluations · Voluntary disclosure |
How stakeholder engagement was made to identify material issues
To identify and prioritise material topics Hyundai E&C engaged with its stakeholders through an online and offline survey among a total of 2,896 employees and external stakeholders.
What actions were taken by Hyundai E&C to create economic value for its stakeholders?
In its 2022 Sustainability Report Hyundai E&C reports that it took the following actions for creating economic value for its stakeholders:
- Creating economic value for employees
- In 2021, Hyundai E&C paid KRW 6,097.5 million for employee compensations.
- Creating economic value for the government
- In 2021, Hyundai E&C paid KRW 2,997.2 million in tax.
- Creating economic value for suppliers
- In 2021, Hyundai E&C paid KRW 86,844.0 million in procurement and subcontracting expenses.
- Creating economic value for shareholders and investors
- In 2021, Hyundai E&C paid KRW 675.0 million in dividends.
- Creating economic value for local communities
- In 2021, Hyundai E&C spent KRW 135.8 million in donations.
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 Hyundai E&C, 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://en.hdec.kr/en/company/library_03.aspx?
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