Case study: How Pegatron creates economic value for its stakeholders
Founded in 2008, Pegatron is a worldwide leader providing DMS (Design, Manufacturing and Service) services, offering assembly service to customers on a wild range of electronics products in computing, communications, and consumer electronics segments. Pegatron is firmly committed to engaging in ESG practices and working with its stakeholders to achieve sustainability, generating long-term value for all.
This case study is based on the 2021 Sustainability Report by Pegatron, 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
Creating, through its business operations, sustainable value for employees, shareholders and all its other stakeholders, is a top priority for Pegatron. Tweet This! In order to create economic value for its stakeholders Pegatron took action to:
- create economic value for employees
- create economic value for shareholders
- create economic value for the state
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With this case study you will see:
- Which are the most important impacts (material issues) Pegatron has identified;
- How Pegatron proceeded with stakeholder engagement, and
- What actions were taken by Pegatron 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 Pegatron identified a range of material issues, such as occupational health and safety, environmental compliance, employment, energy management, socioeconomic compliance. Among these, creating economic value for its stakeholders stands out as a key material issue for Pegatron.
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 Pegatron engages with:
| Stakeholder Group | Method of engagement |
| Customer
| · QBR · Customer Audits · Regular or Irregular Meetings · RBA-Online · Customers’ Websites or Platforms |
| Employee
| · Regular Meetings · Internal Websites · Internal Publications or Announcements · Grievance Box · Coffee Talks · Hotline · Labour-Management Meetings |
| Investor
| · Monthly Business Reports · Shareholders’ Meetings · Investor Conferences · Annual Reports · Market Observation Post System (MOPS) |
| Supplier
| · Supplier Conferences · Supplier Audits · Supplier Relationship Management Platform · External Communication Mailbox · RBA-Online & IPE |
| Community | · External Communication Mailbox |
| Competitor | · Conferences |
| Government
| · Public Hearings on Policy · Questionnaires and Interviews · Projects and Initiatives · Conferences |
| Media | · Press Conferences · Press Releases · External Communication Mailbox |
| NGO
| · Courses or Seminars · Conferences · External Communication Mailbox |
How stakeholder engagement was made to identify material issues
To identify and prioritise material topics Pegatron engaged with its stakeholders through questionnaires.
What actions were taken by Pegatron to create economic value for its stakeholders?
In its 2021 Sustainability Report Pegatron reports that it took the following actions for creating economic value for its stakeholders:
- Creating economic value for employees
- In 2021, Pegatron paid TWD 10,759 million for employee salaries and bonuses.
- Creating economic value for shareholders
- In 2021, Pegatron’s dividend per share reached TWD dollars 5.0.
- Creating economic value for the state
- In 2021, Pegatron paid TWD 3,098 million 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 Pegatron, 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:
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