community engagement 101

COMMUNITY ENGAGEMENT 101

A CASE STUDY FOR BEST PRACTICE Reana Rossouw

Next Generation Consultants

QUESTION?What is the difference between general

stakeholder engagement and community engagement?

2016/04/10 NEXT GENERATION CONSULTANTS 2

STAKEHOLDER ENGAGEMENT IS ….

Stakeholder engagement can be described as an organisation’s efforts to understand and involve stakeholders and their concerns in its activities and decision-making processes.

The purpose of stakeholder engagement is to drive strategic direction and operational excellence for an organisation. Done correctly, engaging stakeholders can result in learning, innovation, and enhanced performance that will not only benefit the organisation, but also its stakeholders and society as a whole.

In addition to serving as a key tool to support a company’s sustainability reporting efforts, stakeholder engagement can be seen as a foundation that supports an organisation’s broader sustainability efforts to set strategic goals, implement action plans, and assess its performance over time.


QUESTION? Why conduct stakeholder

engagement?


VALUE OF STAKEHOLDER ENGAGEMENT (1)Anticipate and manage emerging issues

� A mechanism to improve an understanding of stakeholder priorities and to respond to emerging stakeholder concerns� To identify, evaluate, address and improve sustainability performance issues before they become threats or lost opportunities

� Helps ensure that a company can consistently convey complete, comparable, inclusive, responsive and accurate information to the outside world

Promote productive collaboration with stakeholders

� Creates an information sharing platform whereby organisations can disclose specific information i.e. performance, practices, strategies and goals to stakeholders (to enable them to make informed decisions)

� Serves as an opportunity for stakeholders to identify impact/risk areas about which they have a concern� Creates opportunities to discuss priority issues together with stakeholders thereby building trust and collaboration via dialogue

� Allows for increased, shared understanding of the company’s impacts, improvements and challenges, whereby organisations and stakeholders can build consensus to find solutions and set goals to address challenges

� To reduce/mitigate negative reactions to future, unforeseen incidents and/or impacts because of better understanding and communication


VALUE OF STAKEHOLDER ENGAGEMENT (2)Improve decision-making and operational performance

� Allows a company to align its management plans and actions with the expectations, needs and demands of key stakeholders

� Helps streamline responses to various information requests, and thereby potentially reduce reporting redundancies and time burdens

� Enables companies to maximize opportunities for improving resource management and risk management by tracking performance over time

� Helps engage and motivate staff who are responsible for various aspects of performance

� Leverages performance improvements as the organisation works to follow through on agreed commitments


CORE VALUES FOR THE PRACTICE OF STAKEHOLDER ENGAGEMENT

Stakeholders should have a say in decisions about actions that could affect their lives or an essential environment for life (good quality of life)

Stakeholder participation includes the promise/commitment that stakeholder’s contribution will influence management/operational decisions

Stakeholder participation promotes sustainability decisions by recognizing and observing the needs and interests of all participants

Effective stakeholder engagement:� Ensures participants are equipped to engage

� Ensures participation from the start (designing engagement) to the end (communicating and reporting on the outcomes of the engagement

� Ensures agreement on input decision-making (how input will be utilised)


QUESTION?How is stakeholder

engagement different to any

other form of communication?


IN THE BEGINNINGBefore any expensive and lengthy engagement process can begin, it is important to have a good understanding, and indeed consider what level of participation is actually being sought. Public participation can be broadly categorised into the following:


Levels of public participation goals

Inform To provide the public with balanced and objective information to assist them in understanding the problem, alternatives, opportunities, and/or solutions

Consult To obtain public feedback for decision-makers on analysis, alternatives and/or decisions

Involve To work directly with the public throughout the process to ensure that public concerns and aspirations are consistently understood and considered in decision-making processes

Collaborate To partner with the public in each aspect of the decision making process including the development of alternatives and the identification of the preferred solution

Empower To place final decision-making in the hands of the public

WHY IS STAKEHOLDER ENGAGEMENT SO DIFFICULT?

Stakeholder management is difficult because it involves different people with different expectations and different information needs.

Engaging stakeholders for collaboration involves constant vigilance in a constantly changing landscape of relationships with stakeholders whose support, interests and influence fluctuates unpredictably.

Why is stakeholder engagement so expensive?2016/04/10 NEXT GENERATION CONSULTANTS 10

STAKEHOLDER ENGAGEMENT 101Engagement is but one form of stakeholder relations along a spectrum of possible interactions that also include activities like message delivery, media outreach, deal negotiations, lobbying, coalition development, advocacy, damage control, research surveys, focus groups, issue management and benchmarking.

Stakeholder engagement is when the company initiates open, two-way dialogue seeking understanding and solutions to issues of mutual concern.

It involves discovering and may result in implementing ideas that benefit both stakeholders and the company. This is not the same thing as opinion research, message delivery, lobbying, constituency relations or grant making or sales or wage negotiations.


DIFFERENTIATION IN ENGAGEMENT


BUILDING BLOCKS OF STAKEHOLDER ENGAGEMENT

Stakeholder engagement is an umbrella term encompassing a range of activities and interactions:

� Stakeholder identification and analysis

� Information disclosure

� Stakeholder consultation

� Negotiation and partnerships

� Grievance management

� Reporting to stakeholders

� Management, governance, compliance, risk management functions

� Stakeholder involvement in project/process monitoring


DEFINITIONS WITHIN THE CONTEXTCommunication: � Any manner of information sharing with stakeholders, generally through one-way, non-iterative processes

Consultation: � The process of gathering information or advice from stakeholders and taking those views into consideration to amend plans, make decisions or set directions

Dialogue: � An exchange of views and opinion to explore different perspectives, needs and alternatives, with a view to fostering mutual understanding, trust and cooperation on a strategy or initiative

Engagement: � An organisation’s efforts to understand and involve stakeholders and their concerns in its activities and decision-making processes


Reference: Stakeholder Engagement Manual – Page 6, UNEP, Volume 1 – www.stakeholderresearch.com

SPECTRUM OF ENGAGEMENT


ONE SIDED INSTRUMENTS

•Customer Satisfaction

•Supplier Surveys

•Employee Surveys

•Stakeholder Opinion Surveys

•Self Assessments

•Stakeholder Perceptions

•Balance Scorecards

•360 Degree Frameworks


Investor Relations

Customer Relations

Human Relations

Media Relations

Industrial Relations

Public Relations

STAKEHOLDER MANAGEMENT PROCESS

Context

• Objectives, approach, expectations

• Identify relationships (issues & risks)

• Stakeholder identification & prioritisation

• Buy in & support both parties

Data

• Sampling – how many

• Methodology of communication• F2F, telephone,

etc.• Questionnaire

Analysis

• Interpret Data• Link to business

objectives & outcomes

• Discuss results of engagement -collectively

• Report results of engagement

Report

• Highlight strengths and weaknesses

• Highlight areas of impact

• Highlight areas of risk

• Highlight areas of differences/ similarities

• Recommendations – Stakeholder Management Plan


QUESTION?Who are stakeholders?

How are stakeholders categorised?

How are stakeholders prioritised?


WHAT ARE STAKEHOLDERS?

By definition, stakeholders have a stake in the company/the issue, or who may experience losses or be harmed as a result of the operations of a company

A person, group, or organisation that has direct or indirect stake in an organisation because it can affect or be affected by the organisation's actions, objectives, and policies.

Although ‘stakeholding’ is usually self-legitimising (those who judge themselves to be stakeholders are a stakeholder), all stakeholders are not equal and different stakeholders are entitled to different considerations.


WHO ARE STAKEHOLDERS?A stakeholder can be defined as any person, or group, who has an interest/stake in a project/process or strategy or could be potentially affected by its delivery or outputs.

Stakeholders is often categorised into ‘groups’ based on a number of factors including:� Geographic boundaries or location

� Recognised bodies or institutions

� Income groups

� Land ownership or occupation

� Legal requirements

� Real or perceived views of the issue under dispute

The nature of stakeholder classification means that stakeholder groups are usually not homogenous entities.� It is more likely in fact, that an identified stakeholder group will comprise a diverse mix of individuals, who may – or may not – identify themselves with the particular “stakeholder group” into which they have been categorised.


IDENTIFYING COMMUNITY STAKEHOLDERS

General Company Stakeholders

Customers

Employees

Media

Suppliers

Government

Communities

Specific community stakeholders

Program Implementers -Intermediaries

Co-Funding Partners

Program Influencers –Government

Direct Program Beneficiaries

Indirect Program

Beneficiaries


ANALYSING AND PRIORITISING STAKEHOLDERSCommunity Stakeholder Groups

Program Approvals• Local Wards• Traditional Councils• School Principles/Councils

Program Approvals• Government Departments• National/Provincial/Local

Program Influencers –Program Design

• Co-Funders

Program Influencers –Program Implementation• NGO’s

Program Beneficiaries –

Direct/Indirect

Let’s Test It: Program Funding:

Education

Sport

Health

Disaster Relief

Funder(s)

Media

Local Interest Groups (Cleaner Air/Tax Payers/Media/


Let’s Test It: Program M&E/Reporting:

ANALYSING STAKEHOLDERS

Segmentation

Primary

Secondary

Tertiary

Others� Cause Related Programs

� Donation/Sponsorship

� Comparative/Competitive

� Geographic spread

Sample Sizes

Depends on� Available Data

� Age of Data

� Budget

� Resources

� Engagement Methodology(ies)


Prioritising / Sample Sizes

Determining the boundaries/objectives and outcomes of

community engagement

IDENTIFYING STAKEHOLDERSPrimary stakeholders are those stakeholders that have a direct stake in the organisation and its success

Secondary stakeholders are those that have a public or special interest in the organisation

Core stakeholders are essential to the survival of the business/program

Strategic stakeholders are vital to the organisation and/or the threats and opportunities the organisation faces (current or future)

Environmental stakeholders are all others in the organisation's environment� Legitimacy refers to the perceived validity of the stakeholder’s claim to a stake

� Power refers to the ability or capacity of a stakeholder to produce/influence an effect/risk

� Urgency refers to the degree to which the stakeholder’s claim demands immediate attention


OTHER CONSIDERATIONS (1)Who decides who is involved� As the selection of participants can be a politically charged responsibility, the selection process must be as transparentas possible.

� It is wise to ensure that the reasons for selection are noted/documented so that any questions about selection/prioritisation can be answered.

Resist pressure on numbers� There is often internal and external pressure to expand or reduce the list of those involved. � The number of people involved should not be arbitrary but based on a coherent understanding of the purpose and the context of the engagement process.

Marginalising “Usual suspects”� Organisations sometimes try to avoid involving the “usual suspects”, which has become a term of denigration for people who habitually give time and effort to what they see as their civic responsibilities.

� Describing someone as a ‘usual suspect’ should never be grounds to exclude them from a process any more than it is grounds for including them: people should be involved because they are the right people.

Opponents� It is equally wrong to exclude an individual or an organisation for being a known opponent of a given purpose or process. There are often good reasons for keeping opponents “inside the tent”: these can be the people who most need to be involved so that they gain some ownership of the process and perhaps become more likely to support the final outcome (or at least, less inclined to undermine it as they might have, had they been excluded).


OTHER CONSIDERATIONS (2)Hard to Reach Groups� It is important to try to include all relevant stakeholders, and those who often get omitted are the hard to reach groups. Extra effort

and innovation will be needed to contact and engage with these groups or individuals, who do not generally come forward by theirown volition. Including these minority or “hard to reach” groups is important to obtaining a more balanced picture from the engagement process.

Everyone does not have to be involved in everything� With good planning, and the agreement of participants, different people can be involved only in those parts of the process which

are most relevant to them.

Campaigning organisations� Many campaigning bodies, especially national civil society organisations, are constantly asked to be involved in participatory

exercises, and do not always see these as the most effective use of their limited resources.

� In addition, some see the compromise that can be inherent in some participatory processes as conflicting with their primary purposes. It can be useful to consider (and discuss with them) at which stage of the policy process NGOs are best suited to participate: agenda setting, policy development, policy implementation or policy review.

What’s In It for Them (WIIFT)? � It is important to consider and discuss with participants what they want to get out of the process and what could prevent them from

participating. If everyone’s motivations can be clarified at the start, there will be less confusion and everyone is more likely to be satisfied with the outcomes. This is especially important in an area that is suffering from consultation/engagement fatigue.


IDENTIFYING STAKEHOLDERSBe systematic� Consider all aspects of the company’s area of influence, e.g. technical, business, geographical etc.

Remember the interest groups� Identify those groups or organisations that are not directly impacted by the company e.g. but whose interests determine them as stakeholders e.g. Security personnel or unions, media, etc.

Use past stakeholder information� Referring to previous similar projects can save time and highlight stakeholders risks, liabilities, or unresolved issues that can then be included in the analysis.

Consider the entire project lifecycle/company stage (growth/startup/mature)� It is important to remember that both stakeholders and their interests may change as the company evolves and progresses. Consider all stages of the company life cycle (prospecting, start-up, growing, operational, closing) when drawing up the stakeholder list and review it regularly as the stakeholder process matures.

People matter� Although stakeholders may be both organisations and people, ultimately you can only communicate with individual people. Make sure that you identify the correct individual stakeholders within each stakeholder group. Remember people are mobile and therefore stakeholders change all the time.


QUESTION?How to engage?

What would constitute

engagement?


STAKEHOLDER ENGAGEMENT TOOLS (1)


Technique Most appropriate application Main advantages and disadvantages

Personal

Interviews

• Identify issues specific to each stakeholder

• Provide opportunities for stakeholders to

speak confidentially

• Build relationships with individual stakeholders

Advantages:

• Demonstrates commitment on part of the company

• Provides an opportunity to build relationships

• Provides detailed data through two-way communication

Disadvantages:

• Time and resource intensive

• No opportunity to test attitudes and assertions independently

• Individuals may not necessarily be representative of a stakeholder group as a

whole

Workshops • Form relationships with and between high

level stakeholders and experts

• Involve stakeholders in thinking through

issues, to develop a strategic approach or

resolve an issue/s

• Communicate aspects of stakeholder

engagement process or issues management

to stakeholders and employees

• Analyze impacts

• Prioritize/rank issues and potential solutions

Advantages:


• Provides an opportunity to build a network of relationships

• Allows issues to be verified, tested and solutions developed

• Increases ownership by participants

Disadvantages:

• Participation is limited to a relatively small number of stakeholders

• Individuals may not necessarily be representative of a stakeholder group as a

whole

• Need to provide sufficient information beforehand such that participants can

provide informed views/opinions/solutions

STAKEHOLDER ENGAGEMENT TOOLS (2)Technique Most appropriate application Main advantages and disadvantages

Focus Groups /

Forums

• Identify stakeholder views on a specific issue

• Discuss the views of a common interest stakeholder group

• Gather baseline data

• Support, pilot, test or gain feedback on the outputs of

other methods (e.g. surveys, interviews)

• Determine stakeholder responses/views/opinions to

proposed mitigation / risk based strategies

• Monitor and evaluate social/environmental or economic

performance of an organisation/operation

Advantages:


• Provides an opportunity to build a network of relationships

• Allows issues to be verified, tested and solutions developed collectively

• Increases ownership by participants

Disadvantages:

• Participation is limited to relatively small number of stakeholders

• Individuals may not necessarily be representative of a stakeholder group or community as a

whole

• Need to provide sufficient (sometimes sensitive) information such that participants can provide

informed views/opinions/input

Public or ‘Town Hall”

meeting

• Reach large audiences in particular communities quickly

• Present information and seek feedback from stakeholders

instantaneously

• Ensure that everyone gets a change to provide comment /

criticism / feedback

Advantages:

• Relatively inexpensive and quick

• Allows reach of a large number of people simultaneously

• Demonstrate willingness to be open to public criticism

• Provides communities with opportunity to speak directly to company representatives

Disadvantages:

• There is a risk that vocal but unrepresentative groups may ‘hijack’ the meeting

• Some communities or groups within them, may not be comfortable speaking in such a public

forum

• Limited opportunity to explore issues of particular stakeholders in detail

• Can be difficult to facilitate if the issue(s) under discussion is/are controversial or highly emotive2016/04/10 NEXT GENERATION CONSULTANTS 30


Surveys • Identify stakeholder issues and assess

community needs

• Obtain an objective overview of a

group of stakeholders to a particular

issue or potential impact

• Develop mitigation / risk-based

strategies

• Gather data for evaluation or

reporting quickly

• Monitor and compare data/ impacts

and performance using repeat surveys

Advantages:

• Provides detail data on specific issues

• Assuming an appropriate sample is gathered, provides a

good insight to the extend of an issue/s or significance of

an issue within a community

• Widely known and acceptable methodology

Disadvantages:

• Written surveys are not appropriate in an environment

where literacy levels/technology access are low

• Can be easily manipulated or designed to yield

particular results

• Depending on the response method, surveys generally

yield poor/low response rates

• Surveys take considerable time and resources to prepare,

implement and analyze results



Participatory

Tools

• Scope and identify community needs

/ aspirations

• Involve stakeholders in the

development of engagement tools

• Monitor and evaluate social/human

rights/ environmental impacts and

performance over time per aspect

Advantages:


• Provides the opportunity to build relationships and stakeholder ownership of

outcomes

• Can gain in-depth understanding of stakeholder cultures, beliefs, assets and

interactions

Disadvantages

• Need to manage conflicting community demands

• Can result in unrealistic community expectations

• Process can be dominated by well articulated and organised stakeholder groups

Stakeholder

Panels

• Provide detailed, expert, specific

input into strategies

• Give expert guidance on company

direction, development of new

products / services

• Share industry/context specific

information, developments, progress

Advantages:

• Examines specific aspects of corporate policy, action or performance

• Produce comments or recommendations upon which the company may or may not

make specific commitments

• Assists company in receiving advice, gauge expectations and criticism

• May anticipate possible threats to activities/issues that may arise in future

Disadvantages

• May not be representative

• May not have expertise in specific subject/or in issues


ENGAGEMENT STANDARDS, FRAMEWORKS AND GUIDELINES


GRI REPORTING REQUIREMENTSDefinition:� The reporting organisation should identify its stakeholders and explain in the report how it has responded to their

reasonable expectations and interests.

� The reasonable expectations and interests of stakeholders are a key reference point for many decisions in the preparation of a sustainability report, such as the scope, boundary, application of indicators, and assurance approach.

� Stakeholder engagement processes can serve as tools for understanding the reasonable expectations and interests of stakeholders.

� For a report to be assurable, the process of stakeholder engagement should be documented and they should be based on systematic or generally accepted approaches, methodologies or principles.

� The reporting organisation should:

� Document its approach for defining which stakeholders it engaged with, how and when it engaged with them, and how engagement has influenced the report content and the organisation’s sustainability activities (strategies and reports).

Tests:� The organisation can describe the stakeholders to whom it considers itself accountable.

� The report draws on upon the outcomes of stakeholder engagement processes used by the organisation and as required by legal and institutional frameworks in which it operates.

� The report content draws upon the outcomes of any stakeholder engagement processes undertaken specifically for the report.

� The stakeholder engagement processes that inform decisions about the report content are consistent with the scope and boundary of the report.


KING III AND STAKEHOLDER INCLUSIVENESS The Board should:

� Appreciate that stakeholders’ perceptions affect a company’s reputation

� Identify important stakeholder groupings

� Delegate to management to proactively deal with stakeholder relationships

� Disclose in its integrated report the nature of the company’s dealings with stakeholders and the outcomes of these dealings

� Strive to achieve the appropriate balance between its various stakeholder groupings, in the best interests of the company

� Take account of the legitimate interests and expectations of its stakeholders in its decision-making in the best interests of the company

� Adopt communication guidelines that support a responsible communication programme


Reference: King III – www.IOD.co.za

KING III - STAKEHOLDER ENGAGEMENT GOVERNANCE

Board roles and responsibilities� Define stakeholder engagement as a core value� Identify, discuss and prioritize key risks associated with changing societal expectations� Determine the stakeholders financial and non-financial information needs for decision-making, management oversight, and monitoring key stakeholder relationships associated with generating value and wealth� Discuss and approve key performance indicators for social, environmental, and financial performance�Approve a policy for external reporting� Integrate stakeholder issues into annual general meetings of shareowners� Discuss the risks and impacts of projects and operations and provide transparent disclosure information to shareowners and other key stakeholder groups� Convene stakeholder forums and invite key stakeholder representatives to address board meetings


THE COMPANIES ACT AND STAKEHOLDERS (1)Social and Ethics Committee

� Companies Act, Number 71 of 2008 became effective 1 May 2011

� Sought to modernise and ‘simplify’ company law

� Many changes to regulatory, accountability, transparency and governance requirements

� Section 72 (4) and Regulation 43 (2) requires a Social and Ethics Committee for applicable companies

� Reasons – Stakeholder governance model in SA (not just about shareholders – refer also King III)

To monitor the company’s activities, having regard to relevant legislation, to other legal requirements, or prevailing codes of best practice. To draw matters within its mandate to the attention of the board and to report to shareholders at the AGM

Scope of matters � Social and economic development

� Good corporate citizenship

� The environment, health and public safety

� Consumer relationships

� Labour and employment


Reference: Companies Act No. 71 of 2008

COMPANIES ACT (2)The Regulations prescribe that a Social and Ethics Committee has the following functions:

1) To monitor the company’s activities, having regard to any relevant legislation, other legal requirements or prevailing codes of best practice, with regard to matters relating to:� Social and economic development, including the company’s standing in terms of the goals and purposes of-

� The 10 principles set out in the United Global Compact Principles;

� The OECD recommendations regarding corruption;

� The Employment Equity Act; and

� The Broad-Based Black Economic Empowerment Act;

� Good corporate citizenship, including the company’s-� Promotion of equality, prevention of unfair discrimination, and reduction of corruption;

� Contribution to development of the communities in which its activities are predominantly conducted or within which its products or services are predominantly marketed; and

� Record of sponsorship, donations and charitable giving;

� The environment, health and public safety, including the impact of the company’s activities and of its products or services;

� Consumer relationships, including the company’s advertising, public relations and compliance with consumer protection laws; and

� Labour and employment, including-� The company’s standing in terms of the International Labour Organisation Protocol on decent work and working conditions; and

� The company’s employment relationships, and its contribution toward the educational development of its employees;

2) To draw matters within its mandate to the attention of the Board as occasion requires; and

3) To report, through one of its members, to the shareholders of the company’s annual general meeting on the matters within its mandate.


INTEGRATED REPORTING AND STAKEHOLDERS - IIRC

An Integrated Report should provide insight into the nature and quality of the organisation’s relationships with its key stakeholders, including how and to what extent the organisation understands, takes into account and responds to their legitimate needs and interests.

Stakeholders provide useful insights about matters that are important to them, including economic, environmental and social issues that also affect the ability of the organisation to create value. � Understand how stakeholders perceive value

� Identify trends that might not have come to the general attention, but which are rising in significance

� Identify material matters, including risks and opportunities

� Develop and evaluate strategy

� Manage risks

� Implement activities, including strategic and accountable responses to material matters


STAKEHOLDER ENGAGEMENT STANDARD: ACCOUNTABILITY AA1000SES Definitions:� Stakeholder Inclusivity is the participation of stakeholders in developing and achieving an accountable and strategic

response to sustainability

� Stakeholder Engagement is a tool that organisations use to help them achieve inclusivity

Companies using AA1000SES must:� Commit publicly that they used the Standard and that they will follow the principles of materiality, inclusiveness and

responsiveness

� Integrate stakeholder engagement into governance and decision-making (strategy and operational) processes

� Define the purpose and scope of engagement

� Have a process for stakeholder engagement

� Have a stakeholder engagement plan/strategy� Profile/map of stakeholders

� Determine the engagement level and methods

� Establish and communicate boundaries of disclosure

� Establish indicators to measure the quality of stakeholder engagement

� Document the engagement and outputs

� Develop an action plan


Reference: AccountAbility Stakeholder Engagement Standard (AA1000SES) 2011 – www.accountability.co.uk

IFC STAKEHOLDER ENGAGEMENT Handbook provides guidance on stakeholder engagement specifically for:

� Mining/extractive industries on stakeholder engagement processes as it pertains to:

� ESIA – Environmental, Social Impact Assessments

� Mine Closure, Site Selection and Construction, Social and Labour Plans, Industry Specific Guidelines – i.e. ICMM

� Financial and Development Institutions

� Equator Principles – Responsible Lending

� Service Industries

� Perception Surveys, Grievance processes and mechanisms


Reference: International Finance Corporation – Stakeholder Engagement – A good practice Handbook for companies doing business in emerging markets

OTHER STAKEHOLDER ENGAGEMENT TOOLS & RESOURCES

From Words to Action: � The Stakeholder Engagement Manual – Volume 1 – The guide to practitioners perspectives on stakeholder engagement www.uneptie.org

� Volume 2 – The practitioners handbook on stakeholder engagement www.uneptie.org; www.accountability.org.uk, www.stakeholderresearch.com

Stakeholder Engagement – Practitioners Handbook [email protected]

Proactive Stakeholder Engagement – A Practical Guideline for Companies and Stakeholders –The European Alliance for CSR

BSR: A tool for stakeholder mapping – www.bsr.org


WHAT HAPPENS AFTER THE ENGAGEMENT?


AFTER THE ENGAGEMENTFollow-through is important to any relationship and this certainly applies to relationships with stakeholders. Whether or not a company is able to implement what it has learned from stakeholders, there is an obligation to report back, to make it clear that stakeholder concerns and interests were heard, considered, and valued.

Companies have a responsibility to respond to stakeholders about concerns shared, to explain how or whether concerns or suggestions are being addressed.

In addition to responding to issues raised by stakeholders, companies should keep track of any promises or commitments they have made to stakeholders. Just as a company would hold themselves accountable for promising earnings growth to shareowners, commitments to community members or environmental groups/experts (or any other stakeholders). For an engagement process to be considered credible companies need to implement/respond to the reasonable expectations of stakeholders.

Information reported to stakeholders should be translated into local languages and in easily understood formats, and any material changes to commitments or implementation actions should be communicated very clearly and regularly.


STAKEHOLDER MANAGEMENT PLAN - CONTENT•Scope (background, logic, impact)

•Define ownership and process (accountability & methodology)

•Define governance process (i.e. assurance)

•Identify and define key stakeholder groups (prioritisation)

•Describe the engagement plan, methodology, frequency & channels

•Identify legitimate concerns and interests of stakeholders

•Identify and describe possible conflict management in engagement processes

•Define and describe feedback mechanisms of engagement process to ensure alignment and integration with strategies and operations

•Detail stakeholder feedback – responses and commitments

•Generate reports, actions, activities and priorities – including for sustainability and integrated reports


DO’S AND DON’TS OF STAKEHOLDER RELATIONS

Do seek stakeholder partners with real credibility and strong credentials, whose independence and integrity are unquestioned in the stakeholder communities you are trying to reach.

Do give the stakeholder organisations you engage or work with genuine independence,allowing them to set up their own processes and procedures and giving them the opportunity to communicate with the outside world freely and without censorship.

Do involve your own key leaders who are in a position to make and keep commitments on behalf of the company.

Don’t create “Astroturf” organisations — phony stakeholder groups that masquerades as an independent stakeholders while secretly serving your own corporate interests.

Do be up-front about your role in helping create and, if necessary, fund a stakeholder group; if the connection is exposed against your wishes due to investigative work by the media, it will seriously damage both your credibility and that of any stakeholders involved.

Don’t renege on any commitments you make; the damage to your company’s reputation will be doubly serious if you first boast about, then try to eliminate, any moves toward dialogue and partnership with outside stakeholders.


IN SUMMARY

Stakeholder engagement has tremendous value across the business

Stakeholder engagement is best understood if the whole business is involved

Stakeholder engagement is better supported if managed in relation to other communication activities

Don’t lump stakeholders in homogenous groups

Don’t make assumptions about the specific risks/issues that will be discussed

Don’t pre-empt the process by linking indicators or KPI’s too soon

Be flexible and allow stakeholders to dominate discussion

Remember it requires commitment to feedback the outcome and result to the stakeholders after the event

Less is more!


THANK YOUReana Rossouw - Next Generation Consultants

Next Generation Consultants are internationally recognized and have published extensively and spoken at local and international conferences. Copies of these articles, research papers, presentations, whitepapers and awards are available on:

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