Case study: How Stockmann creates economic value for its stakeholders
Stockmann, established in 1862, is a Finnish listed company engaging in the retail trade, with 8 department stores, 420 fashion stores and 3 properties in a total of 18 countries. Stockmann’s operations create economic added value to its stakeholders in all the countries in which it operates, with the majority of the economic added value going into personnel salaries and other remuneration, as well as to goods and materials suppliers and service providers.
This case study is based on the 2020 CSR Review by Stockmann, 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
Stockmann’s goal is to create added value for all its stakeholders Tweet This!, and actively engage in society. In order to create economic value for its stakeholders Stockmann took action to:
- create economic value for employees
- create economic value for goods suppliers and service providers
- create economic value for finance providers
- create economic value for the public sector
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With this case study you will see:
- Which are the most important impacts (material issues) Stockmann has identified;
- How Stockmann proceeded with stakeholder engagement, and
- What actions were taken by Stockmann to create economic value for its stakeholders
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What are the material issues the company has identified?
In its 2020 CSR Review Stockmann identified a range of material issues, such as customer satisfaction, diversity and equal opportunities, effluents and waste, customer privacy, procurement practices. Among these, creating economic value for its stakeholders stands out as a key material issue for Stockmann.
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 Stockmann engages with:
| Stakeholder Group | Method of engagement |
| Customers
| · Dialogue in the department stores and other stores · Customer service (emails, phone calls, social media) · Customer surveys · Marketing communications · Events · Loyal customer programme |
| Personnel | · Performance and development discussions · Personnel surveys · Employees’ and Group Councils · Codetermination · Staff events · Workshops · Intranet · Teams |
| Shareholders and investors
| · Stock exchange releases · Financial reports · Annual reporting · Group website · Webcasts · Regular investor relations meetings · Annual General Meeting of shareholders · Surveys |
| Suppliers and service providers | · Meetings · Negotiations · Workshops · Cooperation projects and co-campaigns · Factory visits and inspections · Website · Supplier surveys · Stockmann’s annual Supplier Day event |
| Authorities and organisations | · Activities in organisations · Collaboration · Projects · Responding to surveys · Charity work · Website · Annual reporting |
How stakeholder engagement was made to identify material issues
To identify and prioritise material topics Stockmann engaged with its stakeholders through a stakeholder survey.
What actions were taken by Stockmann to create economic value for its stakeholders?
In its 2020 CSR Review Stockmann reports that it took the following actions for creating economic value for its stakeholders:
- Creating economic value for employees
- Stockmann pays its employees fair wages for their work, and supports their personal and professional growth. In 2020, Stockmann paid EUR 153.1 million for employee salaries, fees and pension contributions.
- Creating economic value for goods suppliers and service providers
- In 2020, Stockmann paid EUR 613.1 million for purchased goods and services, including capital goods and paid rents.
- Creating economic value for finance providers
- In 2020, Stockmann spent EUR 45.4 million in financial expenses.
- Creating economic value for the public sector
- In 2020, Stockmann paid EUR 6 million for social security payments and 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 Stockmann, 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:
http://year2020.stockmanngroup.com/pdf/Stockmann_corporate_social_responsibility_2020.pdf
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