Case study: How Pidilite creates economic value for its stakeholders
Pidilite is a well-established Indian multi-national company that has a long history of producing high-quality adhesive and specialty chemical products, including adhesives, sealants, construction chemicals, art and craft supplies, and polymer emulsions. Pidilite’s sustainability strategy focuses on minimising its ecological footprint, while creating long term value for all its stakeholders. Tweet This!
This case study is based on the 2021-22 Sustainability Report by Pidilite, 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
Determined to create value for all its respective stakeholders, Pidilite consistently works towards aligning as well as integrating its decision-making process with their expectations and aspirations. In order to create economic value for its stakeholders Pidilite 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) Pidilite has identified;
- How Pidilite proceeded with stakeholder engagement, and
- What actions were taken by Pidilite to create economic value for its stakeholders
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What are the material issues the company has identified?
In its 2021-22 Sustainability Report Pidilite identified a range of material issues, such as ethical business and transparency, process and product innovation, occupational health and safety, management of hazardous chemicals, employee development and diversity. Among these, creating economic value for its stakeholders stands out as a key material issue for Pidilite.
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 Pidilite engages with:
To identify and prioritise material topics Pidilite engaged with its stakeholders through the following channels:
| Stakeholder Group | Method of engagement |
| Workforce
| · Training · Meetings · Email interaction · Employee satisfaction survey · Employee engagement activities · Open forums · Live chat |
| Customers
| · Telephone · Customer meets · Personal visits · Advertisements · Customer satisfaction reports |
| Investors and shareholders
| · Media releases · Annual reports · Investor meets · Analyst meets · Contact through investor service centres · Annual general meeting · Company website |
| Dealers
| · Helpdesk · E-business portal · Personal interaction · E-communication/ telephonic conversations · Dealer visits/meets |
| Suppliers
| · Personal interaction · Telephonic conversations · Email communication |
| Local communities
| · Visits · Meetings · Medical camps · Need assessment |
| Non-governmental Organisations (NGOs) | · CSR initiatives · Telephonic discussions |
| Regulatory authorities | · Industry bodies and forums |
What actions were taken by Pidilite to create economic value for its stakeholders?
In its 2021-22 Sustainability Report Pidilite reports that it took the following actions for creating economic value for its stakeholders:
- Creating economic value for employees
- In FY 2021-22, Pidilite paid 905.2 Crores for employee wages and benefits.
- Creating economic value for providers of capital
- In FY 2021-22, Pidilite paid 26.4 Crores to providers of capital.
- Creating economic value for the government
- In FY 2021-22, Pidilite paid 787.7 Crores to the government.
- Creating economic value for communities
- In FY 2021-22, Pidilite spent 26.2 Crores 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 Pidilite, 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://pidilite.com/wp-content/uploads/2023/07/Sustainability-Report-04-07-2023.pdf
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