Case study: How KONČAR Group creates economic value for its stakeholders
KONČAR Group’s main business activity is the production of equipment and plants for the generation, transmission and distribution of electrical energy, as well as equipment for use in transport and industry. Generating and distributing economic value among its stakeholders, is a key priority for KONČAR Group.
This case study is based on the 2020 Corporate Social Responsibility Report by KONČAR Group, 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
KONČAR Group seeks to create sustainable value for all its stakeholders Tweet This! as a trusted, value-adding partner. In order to create economic value for its stakeholders KONČAR Group took action to:
- create economic value for employees
- create economic value for the government
- support communities
Subscribe for free and read the rest of this case study
Please subscribe to the SustainCase Newsletter to keep up to date with the latest sustainability news and gain access to over 2000 case studies. These case studies demonstrate how companies are dealing responsibly with their most important impacts, building trust with their stakeholders (Identify > Measure > Manage > Change).
With this case study you will see:
- Which are the most important impacts (material issues) KONČAR Group has identified;
- How KONČAR Group proceeded with stakeholder engagement, and
- What actions were taken by KONČAR Group to create economic value for its stakeholders
Already Subscribed? Type your email below and click submit
What are the material issues the company has identified?
In its 2020 Corporate Social Responsibility Report KONČAR Group identified a range of material issues, such as occupational health and safety, training and education, freedom of association and collective bargaining, customer health and safety. Among these, creating economic value for its stakeholders stands out as a key material issue for KONČAR Group.
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 KONČAR Group engages with:
To identify and prioritise material topics KONČAR Group engaged with its stakeholders through the following channels:
| Stakeholder Group | Method of engagement |
| Employees
| · Intranet/internal servers · Direct contact (meetings) · Official company website · Education and professional training · KONČAREVAC · Business reports · CSR reports |
| Customers/users
| · Direct contact (customer calls, meetings, audits) · Professional training · Official company website · KONČAREVAC · Fairs and conferences · Business reports · CSR reports |
| Unions
| · Regular and extraordinary meetings · KONČAREVAC · Bulletin boards |
| Owners/shareholders
| · Regular and extraordinary assembly meetings · Zagreb Stock Exchange (ZSE), Croatian Financial Services Agency (HANFA) · Croatian News Agency (HINA) · Official company website · KONČAREVAC · Business reports · CSR reports |
| Suppliers
| · Direct contact (visits, meetings, audits) · Written communication (e-mail, memos) · Official company website · Fairs |
| Local communities
| · Donations and sponsorships · Official company website · Direct contact (visits, meetings) · Volunteers Club · KONČAREVAC · Written communication (e-mail, memos) · CSR reports |
| State authorities
| · Direct contact (visits, meetings) · Written communication (e-mail, memos) · Conferences and topic-based meetings · Memberships · KONČAREVAC |
| Financial public | · Zagreb Stock Exchange (ZSE) · HANFA · Croatian News Agency (HINA) · Official company website · KONČAREVAC · Business reports · CSR reports · Meetings with prospective investors |
| Media | · Interviews, features, press releases · Regular and extraordinary press conferences · KONČAREVAC · Press releases · Official company website |
| Academia | · Conferences · Memberships · Scholarly and scientific papers · Topic-based meetings |
| Business and professional public | · Conferences · Professional publications · Topic-based meetings |
What actions were taken by KONČAR Group to create economic value for its stakeholders?
In its 2020 Corporate Social Responsibility Report KONČAR Group reports that it took the following actions for creating economic value for its stakeholders:
- Creating economic value for employees
- In 2020, KONČAR Group spent HRK 685,997 in employee wages and benefits (2019: 655,309).
- Creating economic value for the government
- In 2020, KONČAR Group spent HRK 9,557 in payments to the government (taxes).
- Supporting communities
- In 2020, KONČAR Group spent HRK 2,342 in community investments (donations and sponsorships).
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
78% of the world’s 250 largest companies report in accordance with the GRI Standards
SustainCase was primarily created to demonstrate, through case studies, the importance of dealing with a company’s most important impacts in a structured way, with use of the GRI Standards. To show how today’s best-run companies are achieving economic, social and environmental success – and how you can too.
Research by well-recognised institutions is clearly proving that responsible companies can look to the future with optimism.
7 GRI sustainability disclosures get you started
Any size business can start taking sustainability action
GRI, IEMA, CPD Certified Sustainability courses (2-5 days): Live Online or Classroom (venue: London School of Economics)
- Exclusive FBRH template to begin reporting from day one
- Identify your most important impacts on the Environment, Economy and People
- Formulate in group exercises your plan for action. Begin taking solid, focused, all-round sustainability action ASAP.
- Benchmarking methodology to set you on a path of continuous improvement
See upcoming training dates.
References:
This case study is based on published information by KONČAR Group, 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.koncar.hr/wp-content/uploads/2021/06/KONCAR_GO_DOP_EN_05_18.pdf
Note to KONČAR Group: With each case study we send out an email requesting a comment on this case study. If you have not received such an email please contact us.