Case study: How JSPL creates economic value for its stakeholders
Headquartered in New Delhi, India, Jindal Steel and Power Limited (JSPL) is one of the leading players in the Indian steel industry, producing a wide range of steel products. JSPL seeks to be a globally admired organisation that enhances the quality of life of all its stakeholders, creating shared value. Tweet This!
This case study is based on the FY 2019-20 Business Sustainability Report by JSPL, 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
During FY 2019-20, the economic value distributed by JSPL reached ₹ 29,098 Crores. In order to create economic value for its stakeholders JSPL took action to:
- create economic value for employees
- create economic value for the government
- create economic value for suppliers
- create economic value for lenders
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With this case study you will see:
- Which are the most important impacts (material issues) JSPL has identified;
- How JSPL proceeded with stakeholder engagement, and
- What actions were taken by JSPL to create economic value for its stakeholders
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What are the material issues the company has identified?
In its FY 2019-20 Business Sustainability Report JSPL identified a range of material issues, such as emissions management, regulatory compliance, occupational health and safety, waste management. Among these, creating economic value for its stakeholders stands out as a key material issue for JSPL.
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 JSPL engages with:
To identify and prioritise material topics JSPL engaged with its stakeholders through the following channels:
| Stakeholder Group | Method of engagement |
| Government and Industry Bodies
| · Letters to concerned departments · One-to-one meetings · Meeting through other forums · Public platforms or interactions |
| Local Communities
| · Need assessment surveys · Field visits · Pamphlets, interactions, workshops and seminars · Impact assessment studies |
| Employees
| · E-mails · Interactions · Employee Satisfaction Survey |
| Media | · Press releases on the company website · Interviews and press conferences |
| Customers and Suppliers | · Annual Customer Satisfaction Surveys · One-to-one meetings · Annual vendor and dealer meetings · Exhibitions · Supplier Audits |
| Investors | · Updates through e-mails · Investor conferences · Roadshows · Interactions with analysts · Investor page on company website |
What actions were taken by JSPL to create economic value for its stakeholders?
In its FY 2019-20 Business Sustainability Report JSPL reports that it took the following actions for creating economic value for its stakeholders:
- Creating economic value for employees
- In FY 2019-20, JSPL paid ₹ 679 Crores for employee salaries and benefits.
- Creating economic value for the government
- In FY 2019-20, JSPL paid ₹ 5,941 Crores in taxes.
- Creating economic value for suppliers
- In FY 2019-20, JSPL spent ₹ 19,841 Crores for procurement and services.
- Creating economic value for lenders
- In FY 2019-20, JSPL paid ₹ 2,611 Crores in interest to lenders.
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 JSPL, 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://d2lptvt2jijg6f.cloudfront.net/jindalsteelpower/custom/1629171863_6th%20BSR.pdf
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