Case study: How SCL creates economic value for its stakeholders
Shree Cement Limited (SCL) is one of the top three cement groups in India by production capacity and among the most trusted and responsible brands in the country, partnering India’s growth. SCL focuses on delivering sustainable value to its customers and the wider fraternity of stakeholders Tweet This!, despite challenges such as industry volatilities or economic hardships.
This case study is based on the 2020-21 Sustainability Report by SCL, 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
SCL’s deep local insight, market foresight, strong governance, and long-standing relationships with customers and stakeholders help build an ecosystem of trust and grow the business. In order to create economic value for its stakeholders SCL took action to:
- create economic value for employees
- create economic value for providers of funds and the government
- support communities
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With this case study you will see:
- Which are the most important impacts (material issues) SCL has identified;
- How SCL proceeded with stakeholder engagement, and
- What actions were taken by SCL to create economic value for its stakeholders
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What are the material issues the company has identified?
In its 2020-21 Sustainability Report SCL identified a range of material issues, such as regulatory compliance, waste management, occupational health and safety, procurement practices, emissions management. Among these, creating economic value for its stakeholders stands out as a key material issue for SCL.
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 SCL engages with:
To identify and prioritise material topics SCL engaged with its stakeholders through the following channels:
| Stakeholder Group | Method of engagement |
| Customers
| · Annual customer satisfaction survey · Continuous online communication · Continuous meetings with customer representatives |
| Employees
| · Monthly meetings · Annual employee feedback surveys · Continuous employee grievance monitoring and redressal · Continuous training and workshops |
| Media
| · Meetings with media representatives, as and when required |
| Government
| · Regulatory filings, as and when required · Facility inspections, as and when required · Regular meetings with government officials |
| Shareholders
| · Continuous access to corporate website · Corporate filings with stock exchanges · Annual meetings · Press releases · Consistent management of investor relations · Annual reports and quarterly results |
| Local communities
| · Periodic meeting with community representatives · Continuous dialogues for identifying concerns to be addressed under CSR programmes · Executing CSR interventions in communities around operations |
| Suppliers
| · Periodic supplier inspection audits · Assessing new suppliers · Meetings with suppliers |
| Trade association
| · Meetings with trade association representatives, as and when required |
What actions were taken by SCL to create economic value for its stakeholders?
In its 2020-21 Sustainability Report SCL reports that it took the following actions for creating economic value for its stakeholders:
- Creating economic value for employees
- With an employee strength of 6,259 as on March 31, 2021, it is SCL’s responsibility to take care of the long-term economic wellbeing of its employees. In this regard, SCL has provisions such as the Provident Fund, the Superannunation Fund, the Gratuity Fund etc. Accordingly, in FY 2020-21, SCL paid ₹7 Crore for employee wages and benefits.
- Creating economic value for providers of funds and the government
- In FY 2020-21, SCL paid ₹7 Crore to providers of funds and ₹ 3,922.9 Crore to the government.
- Supporting communities
- SCL is aware of the fact that its operations have a direct as well as indirect impact on local communities. Accordingly, in FY 2020-21, SCL paid ₹7 Crore 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 SCL, 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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