Case study: How Telkom creates economic value for its stakeholders
PT Telkom Indonesia or Telkom is engaged in information and communication technology (ICT) services and telecommunications networks, implementing customer-oriented business and operational strategies. In addition to recording economic value, Telkom also distributes economic value to its stakeholders, including the government, suppliers and partners, and employees. Tweet This!
This case study is based on the 2021 Sustainability Report by Telkom, 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
Telkom manages the environmental, social, and governance (ESG) aspects of its operations to create shared value for the company, all its stakeholders and the environment. In order to create economic value for its stakeholders Telkom took action to:
- create economic value for employees
- create economic value for suppliers and partners
- create economic value for creditors
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With this case study you will see:
- Which are the most important impacts (material issues) Telkom has identified;
- How Telkom proceeded with stakeholder engagement, and
- What actions were taken by Telkom 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 Telkom identified a range of material issues, such as customer data protection and privacy, anti-corruption, innovation and digitalisation, quality of product and service. Among these, creating economic value for its stakeholders stands out as a key material issue for Telkom.
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 Telkom engages with:
To identify and prioritise material topics Telkom engaged with its stakeholders through the following channels:
| Stakeholder Group | Method of engagement |
| Employees | · Callout s · Regular meetings with management · Annual trainings · Sekar-Telkom · PKB negotiations every two years · Employee Complaint Centre |
| Customers | · Customer satisfaction survey · Customer Complaint Centre |
| Shareholders and Investors
| · Annual General Meeting of Shareholders (GMS) · Extraordinary GMS · Quarterly performance explanations · Meetings with investors through Conferences and/or Non-Deal Roadshows and other scheduled meetings |
| Government
| · Regular meetings with the Ministry of SOEs and Ministry of Communication and Information · Hearings with the DPR and working visits which are carried out according to a set schedule |
| Work Partners
| · Supplier performance assessments · Meetings during tender and procurement contracts · Vendor/supplier selection and management · Further procurement processes |
| Community
| · Deliberation in planning community empowerment activities · Implementing activities and monitoring programme realisation · Community empowerment and other philanthropy programmes |
| Mass Media
| · Press releases · Media gatherings · Press conferences · Press briefings |
What actions were taken by Telkom to create economic value for its stakeholders?
In its 2021 Sustainability Report Telkom reports that it took the following actions for creating economic value for its stakeholders:
- Creating economic value for employees
- In 2021, Telkom paid Rp billion 13,660 for employee salaries and allowances.
- Creating economic value for suppliers and partners
- In 2021, Telkom paid Rp billion 44,811 to suppliers and partners.
- Creating economic value for creditors
- In 2021, Telkom paid Rp billion 48,166 to creditors.
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 Telkom, 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://www.telkom.co.id/data/lampiran/1650968279871_Sustainability Report Telkom 2021.pdf
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