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Role of the governance professional in stakeholder engagement - Coggle…
Role of the governance professional in stakeholder engagement
Explaining to the board the business case for stakeholder engagement
Markets perceive them as less hostile to local values and ways of operating
Create value and wealth
Gain and retain loyal customers while avoiding boycotts or other undesirable consumer actions
Create the perception that the company is a desirable place to work and increase ability to recruit and retain talented staff members
Identify ways to increase efficiency and reduce costs in their operations
Show a more responsible approach to risk taking, which reduces risk
Become better able to leverage opportunities giving the company competitive advantage as they are able to identify new ideas for products or service that address stakeholder needs. Effective stakeholder engagement promotes corporate learning and innvoating
Be more readily welcomed into new markets, as companies embedded in those markets perceive them as less hostile to local values and ways of operating
Assisting the board with stakeholder engagement
Identifying which stakeholders have legitimate expectations and interests
Mapping the power and interest of stakeholders or stakeholder groups so that they can develop a strategy for engaging with them
Identifying, discussing and prioritising the key risks associated with changing societal expectations
Determining the board's financial and non-financial needs for decision making, management oversight and monitoring with regard to key stakeholder relationships associated with creating value and long term sustainability
Discussing and approving key performance indicators for social, environmental and financial performance
Approving a policy for external, financial, non-financial (sustainability) or integrated reportng
Looking to integrate stakeholder issues into annual shareholder meetings. This can be done through resolutions, presentations at meetings and/or displays at the entrance or in the meeting room
Discussing the risks and impacts (positive and negative) of projects and operations and providing transparent disclosure information to stakeholders (including shareholders)
Convening stakeholder forums and inviting key stakeholder representatives to address board meetings, so members of boards hear from stakeholders directly about their concerns and issues
Documenting the concerns and issues of stakeholders and lessons learned and feeding this into the risk management, strategic planning and BCP so that the company is able to leverage opportunities and lessen negative impacts
Recognising that different stakeholder groups may have different interests and ideas. Tailoring engagement and dialogue to better represent stakeholders' disparate interests to help them understand the reasons for board decisions
Developing policies o who within the organisation should be the prime communicator for each stakeholder group
Advising the board on any reputational risk aspects to stakeholder engagement
Co-ordinating with mnagement to ensure that the board is advised on how to engage with different stakeholder groups
Advising the board on reporting on stakeholder engagement
The CS advises the board on reporting - and ensuring that management make recommendations for reporting - to specific stakeholder groups and where appropriate develops reports to specific stakeholder groups
Alterting the board and/or management to opportunities and risks associated with stakeholder engagements
The CS may be asked to work with management, compliance officers and investor relations officer to ensure that the correct strategies, policies and procedures are in place to manage risks, especially reputational risk, and to take advantage of the opportunities presented by particular stakeholders, particularly partnership opportunities that support the organisations strategic ojectives
Advising the board on the setting up of a committee responsible for stakeholder issues
The CS should advise the board on whether a separate committee should be established to deal with stakeholder issues.
These committees are sometimes called the corproate responsiblity committee, the ethics committee or the reputation committee as they are often responsible for ethical and/or reputational issues
These committees often have members of management on them as well board members. The chair should be a memberand the quorum should be a majority of board members. The CS typically would be the secretary of the committee