Strategic Report

Our Business Structure and Stakeholders

Business structure

Our stakeholders

Our stakeholders are central to solutions by stc’s business continuity, sustainability, and success. We believe in delivering optimal value to our stakeholders and strive to forge strong relationships with them based on trust, understanding, and shared values and purpose.

In 2022, the Company initiated an ESG baselining and maturity assessment where key stakeholder groups were identified and analyzed, along with ESG issues that are material to stakeholders and the Company. solutions by stc takes every opportunity to actively engage its stakeholders and ensure they are part of the Company’s journey.

Stakeholder	Stakeholder needs and expectations	Material issues	Our response
Shareholders and Investors	Shareholders expect timely and accurate information regarding the Company’s performance, strategies, and growth trajectory. They are interested in competitive returns on investment in the short-term, and the ability of the Company to create value in the long-term.	Economic performance Business ethics and transparency Corporate Governance	solutions by stc’s Dividend Distribution Policy outlines the distribution of net profits amongst shareholders. Led by an Investor Relations team, the Company maintains a close relationship with investors and ensures timely disbursement of material business information. With regard to annual corporate disclosure, solutions by stc produces an Integrated Annual Report that describes the Company’s performance and communicates strategic endeavors for long-term value creation.
stc	stc expects a synergistic relationship for ICT ventures, strengthening and stewardship of the brand, contribution to revenue, and opportunities for networking partners and customers across the Kingdom.	Economic performance Business ethics and transparency Corporate Governance	Over the years, solutions by stc has diversified products and services, reached new customers, created new opportunities for cross-selling, and branched into new business verticals and geographic territories in line with stc’s vision for growth.
Customers	solutions by stc’s diverse customer base expects a high standard of service synonymous with the brand, innovative products and solutions that meet their evolving needs, reliability of services and infrastructure, and responsiveness to address their concerns.	Data privacy and cybersecurity client satisfaction & collaboration Digital Innovation and transformation	Customer Experience (CX) is a key strategic focus for solutions by stc, and the Company took a number of steps in 2022 to improve customer experience, strengthen relationships, and uphold the needs of customers. Refer the Social & Relationship Capital section for details on solutions by stc’s relationship with its Customers.
Partners and Suppliers	With over 170 reputed global and local organizations that make up a dynamic partner ecosystem; solutions by stc is expected to support the mission of its partners and suppliers, and ensure transparency and ethical and responsible procurement practices. These partners keenly observe the growth and strategies of the Company and are part and parcel of solutions by stc’s achievements.	Supply chain/ Responsible procurement	The Company considers the growth of partners and suppliers when developing products and delivering services. Maintaining strong relationships with its partner ecosystem, at every step, solutions by stc strives for mutually beneficial outcomes for its partners. Refer the Social & Relationship Capital section for details on solutions by stc’s relationship with its Partners and Suppliers.
Employees	solutions by stc’s team of 1,700+ consists of ICT professionals certified in key technologies and domains, and dedicated to an overarching vision. Employees look to the Company for fair remuneration, professional growth, career progression, and a satisfying and rewarding work environment.	Diversity and Inclusion Employee Health and Safety Employee engagement, wellbeing and experience Talent Incubation: Retention and Development	The Company’s HR function is at the nexus of operations and people management; supporting the needs of our employees in alignment with solutions by stc’s LEAP strategy and BEAM 2.0 people management strategy. A number of new measures were taken in 2022, contributing to improving the work environment, improving employee engagement, and understanding and meeting the needs of employees across the Company. Refer the Human Capital section for details on solutions by stc’s diverse and dynamic team.
Government of KSA	As per the Kingdom’s Vision 2030, goal of advancing the ICT sector, the Government of the KSA expects support with regard to investment in infrastructure and networks, and contribution to the economy in the form of services, employment, capacity development, and global competitiveness.	Digital inclusion Business ethics and transparency Corporate Governance Waste management Resource and energy use Opportunities for clean technology Social investment for Community Development Climate change	solutions by stc lends its services to a number of government organizations and projects undertaken by the Government. Over the years, we have also been recruiting a growing number of Saudi nationals. Today, 60.79% of our workforce are Saudis and we continuously work towards development of skill set and take pride in contributing to the realization of the digital aspirations of the Kingdom.
Regulatory bodies and Interest groups	Regulators who monitor business activities and growth patterns expect that all regulatory requirements are met in order to maintain a sustainable business entity.	Digital inclusion Business ethics and transparency Corporate Governance Waste management Resource and energy use Opportunities for clean technology Social investment for Community Development Climate change	solutions by stc takes into account all stipulated regulatory requirements and is committed to compliance in operations, investments, and all business activities. As an industry leader and publicly listed Company, solutions by stc maintains cordial relationships with industry and capital market regulators. The Company strives to go beyond mere compliance, to meet the spirit of regulations and lead the field in ESG, Corporate Governance and industry best practices.
Communities and the Environment	The communities we operate amongst are concerned about how our business activities impact their wellbeing. The Company holds a responsibility to ensure these communities share in the Company’s success, whilst further efforts are made to safeguard and nurture the environment in the areas we work.	Digital inclusion Business ethics and transparency Corporate Governance Waste management Resource and energy use Opportunities for clean technology Social investment for Community Development Climate change	As part of the Company’s Sustainability journey, systems are in place to minimize waste, minimize negative externalities, and mitigate adverse effects on communities and the environment. Throughout, solutions by stc remains cognizant of wider global environmental issues, and is gearing the Company to respond to the same. Refer the Sustainability Journey section for details on solutions by stc’s sustainability plans and efforts.