Case study: How Muangthai Capital creates economic value for its stakeholders
Muangthai Capital Public Company Limited (Muangthai Capital) is a Microfinance service provider that helps people with difficult access to loan from financial institutions access loan sources more easily and conveniently with reasonable, fair, and transparent financial costs. Muangthai Capital is committed to conducting business for stable and sustainable growth by creating added value for its shareholders and shared value for all its stakeholders.
This case study is based on the 2021 Sustainability Report by Muangthai Capital, 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
Muangthai Capital continuously seeks to grow and generate returns, so as to create the most sustainable benefits and value for its stakeholders. Tweet This! In order to create economic value for its stakeholders Muangthai Capital took action to:
- create economic value for employees
- create economic value for providers of capital
- create economic value for the government
- create economic value for communities
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With this case study you will see:
- Which are the most important impacts (material issues) Muangthai Capital has identified;
- How Muangthai Capital proceeded with stakeholder engagement, and
- What actions were taken by Muangthai Capital 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 Muangthai Capital identified a range of material issues, such as good corporate governance, anti-corruption, air pollution, development and creation of innovation. Among these, creating economic value for its stakeholders stands out as a key material issue for Muangthai Capital.
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 Muangthai Capital engages with:
To identify and prioritise material topics Muangthai Capital engaged with its stakeholders through the following channels:
| Stakeholder Group | Method of engagement |
| Employees, Executives and Board of Directors
| · Meeting (on a monthly basis) · Company’s website · Notification / order · Telephone · Employee’s satisfaction questionnaire · Company’s whistleblowing system |
| Customers | · MTC Call Centre 1455 · Walk-in to customer service branches · Facebook: Muangthai Capital · Line @Muangthaicapital · Call Centre 02-4838888 · Application “Muangthai 4.0” |
| Shareholders/Investors/ Creditors
| · Annual General Meeting of Shareholders (1 time per year) · Communicate through the stock exchange (regular) · Organising Opportunity Day with the SET (3 times a month) |
| Business partners
| · Email (annual) · Visit (only for new partners once a year) |
| Business competitors
| · Meeting of the car registration business trade association · Meeting of the personal loan business club |
| Regulatory bodies (Bank of Thailand/Office of the Consumer Protection Board/Public Debt Management Policy and Supervision) | · Email (annual) · Meetings through trade associations/clubs for car registration/personal loan operators Visit (once per 2 years)
|
What actions were taken by Muangthai Capital to create economic value for its stakeholders?
In its 2021 Sustainability Report Muangthai Capital reports that it took the following actions for creating economic value for its stakeholders:
- Creating economic value for employees
- In 2021, Muangthai Capital paid 4,272,013,760 Baht for employee wages and benefits.
- Creating economic value for providers of capital
- In 2021, Muangthai Capital paid 784,400,000 Baht to providers of capital.
- Creating economic value for the government
- In 2021, Muangthai Capital paid 1,256,935,106 Baht to the government.
- Creating economic value for communities
- In 2021, Muangthai Capital paid 2,309,000 Baht in community investments.
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 Muangthai Capital, 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://investor.muangthaicap.com/storage/sustainability/sd-report/2021/mtc-sd-2021-en.pdf
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