Creating shared value using materiality analysis: Strategies from the mining industry

Abstract

Materiality reflects an organization's significant social, economic, and environmental impacts, together with their influence on stakeholders' assessments and decisions.The Global Reporting Initiative's G4 Guidelines describe a four-step process for an organization to follow to determine the specific content to be included in its social responsibility report. However, there are no recommendations regarding what types of strategies should be used for each social issue depending on their materiality.The main aims of this paper are to explain the material issues and to identify what creating shared value (CSV) strategies can be applied to address each social issue according to a materiality analysis. For this purpose, a sample of 27 mining companies is obtained. Based on secondary sources, a content analysis is prepared. The resulting framework provides CSV theory with a guide to what CSV strategy is recommended according to the location of each social issue in the materiality matrix.

Transparency of materiality analysis in GRI‐based sustainability reports

“…Studies addressing SE as it relates to materiality analysis in GRI reporting are less abundant, and arguably more worrisome. While some studies, like the recent article by Saenz (2019), emphasize the potential benefits of combining SE with materiality analysis, there are also potential problems. One of the key side‐effects of SE in GRI‐based materiality analysis is that it might lead to the identification of a wide range of issues, translating into lengthy reports, with voluminous and distracting information for decision‐makers (Zhou, 2011).…”

Sustainability game

“…Assess the ESG risks related to their business and the impacts of their business activities on stakeholders' interests, 3. Make a materiality analysis and define priorities through a materiality matrix (Saenz, 2019), and 4. Actively work for the satisfaction of the needs identified by their stakeholders, by fixing goals within their strategies.…”

“…We are in a world in which more and more stakeholders are sharing sustainability values and principles (such as all the initiatives, agreements and principles sponsored by the United Nations, like the UN Global Compact), and there is evidence that there is a strong commitment in this regard (e.g., the UN 2030 Agenda for Sustainable Development). Companies try to: Understand specific stakeholders' interests and the connection between these and their own business, Assess the ESG risks related to their business and the impacts of their business activities on stakeholders' interests, Make a materiality analysis and define priorities through a materiality matrix (Saenz, 2019), and Actively work for the satisfaction of the needs identified by their stakeholders, by fixing goals within their strategies. …”

The impact of creating shared value on hotels online reputation

“…Leading firms in different economic sectors have now included important CSV strategies (Pfitzer, Bockstette, & Stamp, 2013; Saenz, 2019). Implicit in this claim is the assumption that managers will need to begin by evaluating their strategic options based on their consequences, that is, which option will lead to shared value creation (Lee, 2019).…”