Case study: How QTC creates economic value for its stakeholders
QTC Energy PCL operates in the business of manufacturing and distributing transformers according to purchase orders, with a manufacturing capacity of 4,000 transformers per year. Building sustainable business growth in the long term to gain confidence and trust from all its stakeholders by creating shared value is a top priority for QTC.
This case study is based on the 2021 Sustainability Report by QTC, 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
QTC seeks to generate, through its operations, sustainable value for business partners, employees, and other stakeholders. Tweet This! In order to create economic value for its stakeholders QTC took action to:
- create economic value for employees
- create economic value for business partners
- create economic value for shareholders
- create economic value for financial institutes
- create economic value for the government
- create economic value for the community and society
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With this case study you will see:
- Which are the most important impacts (material issues) QTC has identified;
- How QTC proceeded with stakeholder engagement, and
- What actions were taken by QTC 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 QTC identified a range of material issues, such as business growth, employee safety and health, risk management, employment and human rights, responsibility to goods and services. Among these, creating economic value for its stakeholders stands out as a key material issue for QTC.
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 QTC engages with:
| Stakeholder Group | Method of engagement |
| Employees | · Monthly meeting of executives and employees · Suggestion activities, KAIZEN, QCC · Listening to employee opinions and complaints · Monthly Welfare Committee meetings · Monthly Safety Committee meetings · Annual employee happiness surveys · Annual corporate affection and attachment surveys · Quarterly corporate risk assessments · Annual safety risk assessments · Annual environmental impact assessments |
| Board of Directors
| · Board of Directors’ meetings · Board of Audit meetings · Nomination Committee meetings |
| Shareholders/ Investors
| · Annual meetings of shareholders · Quarterly performance announcements · Financial analysts’ meetings · Registered companies meet investors · Invitations for investors to visit factories |
| Customers
| · Meet-ups with customers/ retailers · Product exhibitions · Customer/retailer satisfaction surveys · Technical knowledge provision to customers/ retailers · Opportunities for customers/ retailers to observe production processes · Joint activities with customers/retailers · Contract terms · Inquiries |
| Trade Competitors
| · Meetings and conversations · News and information · Group member meetings · Marketing activities |
| Trade Partners
| · Annual deliverer and contractor evaluations · Production process and raw material quality inspections and discussions for improvement · Inquire about goals of brand owners/product manufacturers · Attend meetings · Participate in activities organised by the brand owner/product manufacturer · Participate in trainings and testing according to the product owner’s criteria |
| Waste Disposers | · Exchanges of knowledge about legal specifications and correct practices |
| Creditors
| · Meetings and discussions · Quarterly performance announcements · Shareholder meetings |
| Trade Accounts Receivable | · Meetings and discussions |
| Mass Media | · Meetings with mass media at different occasions |
| Government Agencies
| · Meetings and explanations of government agencies · Business inspections and visits · Conditions pursuant to the law · News and information |
| Community and Society
| · Organising activities with communities/society · Participation on community and social development · Annual public hearing activities where communities meet with QTC · Annual public hearing activities where communities meet with the power plant · News and information |
How stakeholder engagement was made to identify material issues
To identify and prioritise material topics QTC engaged with its stakeholders through interviews, questionnaires, and official and unofficial discussions.
What actions were taken by QTC to create economic value for its stakeholders?
In its 2021 Sustainability Report QTC reports that it took the following actions for creating economic value for its stakeholders:
- Creating economic value for employees
- In 2021, QTC paid 167.07 million Baht for Directors, Executive Directors and employees’ salaries, wages and benefits.
- Creating economic value for business partners
- In 2021, QTC paid 600.09 million Baht to business partners.
- Creating economic value for shareholders
- In 2021, QTC paid 68.22 million Baht in dividends for shareholders.
- Creating economic value for financial institutes
- In 2021, QTC paid 1.26 million Baht in interest.
- Creating economic value for the government
- In 2021, QTC paid 21.95 million Baht in taxes.
- Creating economic value for the community and society
- In 2021, QTC spent 0.93 million Baht in social 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 QTC, 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://qtc-energy.com/wp-content/uploads/2022/04/QTC-SD-Report-2021-eng-Final.pdf
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