A State owned company in a developing country has been highly involved in CSR. While their directors share this commitment, they have a hard time explaining the company’s contribution to society. While the company regularly discloses some CSR information, directors still find a disconnection between company’s activities and their CSR reporting. Consequently, the company implements a new reporting tool (Value-Added Statement), which discloses information about value creation and its subsequent distribution. By this doing, the firm better explains how economic value is shared among different stakeholders. With the passage of time, the trends for distribution of value among stakeholders become apparent. In a second step, a discussion in the Parliament about the future of the company is better substantiated by the use of this tool. After having discussed the part A, the professor can hand out part B. See that part B is not a solution to part A, it is instead an extension of the initial story. Alternatively, part B could be used as an exam case. The case is an occasion to reflect upon the social responsibility of a State-owned company, particularly in the context of a developing country.
ZICARI, A. (2018). ENAEF: Value-Added Statements of a State-owned Firm. ESSEC Business School.