Case study: How Magyar Telekom creates economic value for its stakeholders
Magyar Telekom is the leading Hungarian telecommunications service provider company, headquartered in Budapest. Magyar Telekom seeks to make sure that, through its operations, sustainable value is generated for all its stakeholders, including investors, employees and suppliers.
This case study is based on the 2021 Sustainability Report by Magyar Telekom, 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.
Through its business, Magyar Telekom creates significant shared value for its stakeholders Tweet This! in the form of wages and taxes paid, among others. In order to create economic value for its stakeholders Magyar Telekom took action to:
- create economic value for employees
- create economic value for suppliers
- create economic value for investors
- create economic value for the state
- create economic value for communities
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With this case study you will see:
- Which are the most important impacts (material issues) Magyar Telekom has identified;
- How Magyar Telekom proceeded with stakeholder engagement, and
- What actions were taken by Magyar Telekom to create economic value for its stakeholders
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What are the material issues the company has identified?
In its 2021 Sustainability Report Magyar Telekom identified a range of material issues, such as waste management, human rights, equal opportunities, climate protection and energy efficiency, resource consumption, initiatives to eliminate the digital divide. Among these, creating economic value for its stakeholders stands out as a key material issue for Magyar Telekom.
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 Magyar Telekom engages with:
| Stakeholder Group |
| Investors |
| Customers |
| Employees |
| Regulators |
| Communities |
| NGOs |
| Suppliers and partners |
| Media |
| Future generations |
How stakeholder engagement was made to identify material issues
To identify and prioritise material topics Magyar Telekom engaged with its stakeholders through a questionnaire survey.
What actions were taken by Magyar Telekom to create economic value for its stakeholders?
In its 2021 Sustainability Report Magyar Telekom reports that it took the following actions for creating economic value for its stakeholders:
- Creating economic value for employees
- In 2021, Magyar Telekom paid HUF 75 880 million for employee wages and benefits.
- Creating economic value for suppliers
- In 2021, Magyar Telekom paid HUF 349 311 million to suppliers.
- Creating economic value for investors
- In 2021, Magyar Telekom paid HUF 28 716 million to capital investors.
- Creating economic value for the state
- In 2021, Magyar Telekom paid HUF 50 424 million to the state (profit tax +crisis tax + telecom tax + utility tax).
- Creating economic value for communities
- In 2021, Magyar Telekom spent HUF 170 million in community investments (donations, institutional sponsorship, voluntary work, education).
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 Magyar Telekom, 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.telekom.hu/static-tr/sw/file/Magyar-Telekom_Sustainability-Report_2021.pdf
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