Case study: How IndianOil creates economic value for its stakeholders
Established in 1959, IndianOil is a diversified and integrated energy company with a presence across the entire oil and gas value chain. For IndianOil, creating shared value is about taking care of both its external and internal stakeholders. Tweet This! It means fulfilling India’s energy needs, creating value for its shareholders, creating an enabling environment for employees and contract workers to develop their capabilities and skills, and creating vibrant local communities.
This case study is based on the 2020-21 Sustainability Report by IndianOil, 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.
Creating, through its operations, wealth & value for all its stakeholders is a top priority for IndianOil. In order to create economic value for its stakeholders IndianOil took action to:
- create economic value for employees
- create economic value for shareholders
- 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) IndianOil has identified;
- How IndianOil proceeded with stakeholder engagement, and
- What actions were taken by IndianOil to create economic value for its stakeholders
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What are the material issues the company has identified?
In its 2020-21 Sustainability Report IndianOil identified a range of material issues, such as climate change mitigation, product stewardship, business ethics and accountability, employment practices, customer satisfaction and brand loyalty. Among these, creating economic value for its stakeholders stands out as a key material issue for IndianOil.
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 IndianOil engages with:
To identify and prioritise material topics IndianOil engaged with its stakeholders through the following channels:
| Stakeholder Group | Method of engagement |
| Customers | · Advertisements · Corporate website · Mobile App (ePIC) · Customer satisfaction survey · Safety Clinics · Customer care / grievance portal |
| Employees and contractual workforce
| · Annual employee satisfaction survey · Grievance redressal / HR portal · Electronic communications · Conclaves, Workshops & seminars |
| Regulatory Bodies
| · Inspection, Audits & Compliance Reports · Public disclosures on Financial / ESG performance · Meetings, seminars etc. |
| Investors and shareholders | · Public disclosures on Financial & ESG performance · Annual General Meeting, press briefing & social media |
| Government
| · Official Meetings / MoU Reviews · Monthly / periodic project updates · Electronic Communications · Public Disclosures · Conclaves / Seminars / events etc. |
| Industry/ Trade Associations
| · Periodic industry / association meets, events, and seminars · Forums and workshops |
| Business Partners/ Contractors
| · Annual dealer and distributor conventions · Transporters’ Meet · Meetings with contractors / vendors · Seminars and workshops |
| Community and NGOs | · Need Assessment Surveys · Sponsorships · CSR activities · Grievance redressal forums |
| Media
| · Press briefs · Social media channels · Corporate reports and other disclosures |
| Academic and Scientific Institutions | · Meetings and conferences · Partnerships and joint exercises · Workshops · Sponsorships |
What actions were taken by IndianOil to create economic value for its stakeholders?
In its 2020-21 Sustainability Report IndianOil reports that it took the following actions for creating economic value for its stakeholders:
- Creating economic value for employees
- In FY2020-21, IndianOil paid ₹ 10,712.04 crore for employee wages and benefits.
- Creating economic value for shareholders
- In FY2020-21, IndianOil paid ₹ 12,734.00 crore in dividends to shareholders.
- Creating economic value for the government
- In FY2020-21, IndianOil paid ₹ 7,879.61 crore in taxes.
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 IndianOil, 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://iocl.com/uploads/IOCL-Sustainability-Report-2020-21.pdf
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