Case study: How TISCO Group creates economic value for its stakeholders
Established in 1969, TISCO Group has the distinction of being Thailand’s first finance company, providing financial and investment services which include investment banking, provident fund management, hire purchase loans and securities. TISCO Group is fully committed to conducting business under the principles of good corporate governance, so as to offer sustainable value to all customers and benefits to all its stakeholders.
This case study is based on the 2020 Sustainability Report by TISCO Group, 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.
TISCO Group adheres to a culture of integrity, fairness, and transparency in order to create sustainable value for its customers, shareholders, staff and society. Tweet This! In order to create economic value for its stakeholders TISCO Group 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) TISCO Group has identified;
- How TISCO Group up proceeded with stakeholder engagement, and
- What actions were taken by TISCO Group to create economic value for its stakeholders
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What are the material issues the company has identified?
In its 2020 Sustainability Report TISCO Group identified a range of material issues, such as corporate governance, customer data protection, risk management & business continuity management, cyber security, responsible lending. Among these, creating economic value for its stakeholders stands out as a key material issue for TISCO Group.
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 TISCO Group engages with:
| Stakeholder Group | Method of engagement |
| Shareholders | · Investor roadshows and TISCO meetings with institutional investors and analysts · Tele-Conference with institutional investors and analysts · Information disclosure via SET Portal, print media, and TISCO website · Inquiries handled by the Investor Relations Unit · Online and offline analyst meetings · General and extraordinary shareholders’ meeting |
| Employees
| · Training for employees at all levels · Staff Newsletters · Organising activities to support good relations, exchange and share experiences of employees, such as TISTALK, Podcasts, Discussion Forum and Mini-hackathon · TISCO HR Helpline · Communication programmes to instil knowledge, values and corporate culture for new employees · Contact channels for personal information, day off, Welfare Including listening to suggestions and share the compliments of employees through HR Chatbot · Mid-level management communication · Monthly online-offline meetings of executives at all levels · Direct communication from Top Management to Mid-level Management · Employee engagement survey |
| Supervisory Authorities
| · Communicate through compliance function and regulatory reporting unit · Related activities such as examinations conducted by regulators, discussions between management and regulators on important issues |
| Business Partners and Creditors | · Meetings with business partners · Assessments of business partner satisfaction |
| Customers
| · Individual meetings with customers · TISCO contact centre · Site visits to corporate customers · Online-offline training and seminars arranged on economy, finance and investments for customers · Channels to get feedback and complaints from customers · Public Relations via various channels such as press releases, TISCO website and mobile application |
| Community and Society | · Surveys on community/ public needs · Promoting financial literacy |
How stakeholder engagement was made to identify material issues
To identify and prioritise material topics TISCO Group engaged with its stakeholders through surveys.
What actions were taken by TISCO Group to create economic value for its stakeholders?
In its 2020 Sustainability Report TISCO Group reports that it took the following actions for creating economic value for its stakeholders:
- Creating economic value for employees
- In 2020, TISCO Group paid 5,288.4 million Baht for employee wages and benefits.
- Creating economic value for providers of capital
- In 2020, TISCO Group paid 9,340.1 million Baht to providers of capital.
- Creating economic value for the government
- In 2020, TISCO Group paid 2,298.1 million Baht to the government.
- Creating economic value for communities
- In 2020, TISCO Group spent 41.9 million Baht in community investment.
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 TISCO Group, 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.tisco.co.th/content/dam/tiscobank/download/sd/2020-sustainability-report-en.pdf
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