Intro to Stakeholder Engagement

From Sustainability to Stakeholders

Approaches and Barriers

Constraints or Myths

Engagement: Best Practices

Benefits to Business

Stakeholder Engagement Framework

Questions to Explore

May 1, 2002

stakeholder engagementstakeholder engagement

Intro to Stakeholder EngagementStakeholder EngagementStakeholder Engagement

This module is about why business should adopt a stakeholder framework and how What is business’ place in society in the 21st Century?

Other modules describe the features of sustainable enterprises and the strategies and business models that create triple bottom line growth.

What is in this module?

What is not is this module?

Intro to Stakeholder EngagementFrom Sustainability to StakeholdersFrom Sustainability to Stakeholders

All those with an ability to impact your business are your stakeholders.

Anyone impacted by your business is a stakeholder.

Your company is a stakeholder in other processes

Focusing upon stakeholder needs is a route to new markets, innovation, reduced business risk, and operational freedom.

Key Concept: Societal responsibility means moving beyond customers and shareholders

Intro to Stakeholder Engagement

Localcommunities

GovtsLocal

authorities

Media

Employees

Universities

Investors

Insurancecompanies

Suppliers

Customers

NGOs

Consumers

Your Company

Businessorganisations

Courtesy of Novo Nordisk A/S

The Stakeholder Based ViewThe Stakeholder Based ViewWho are my stakeholders?

Intro to Stakeholder EngagementApproaches and BarriersApproaches and Barriers

Approaches to stakeholder engagement: Buffering vs. Bridging Damage Control vs. Decision Making

Barriers to stakeholder engagement Arrogance (typical in companies with high technical base). Winning over hearts as well as minds Lack of mutual knowledge leads to adversarial positions Lack of corporate culture of listening to non-traditional audiences

How do we create a win-win?

Intro to Stakeholder EngagementConstraints or Myths?Constraints or Myths?

How can we avoid arming our critics?

Are we actually creating problems where none exist?

Is engagement surrendering management responsibility or management control?

Does engagement create or inflate unrealistic expectations?

Will our stakeholders be able to understand the technical issues at hand?

How can we bridge large philosophical divides?

Common fears of stakeholder engagement

Intro to Stakeholder EngagementEngagementEngagement

Intro to Stakeholder EngagementEngagementEngagement

Intro to Stakeholder EngagementEngagementEngagement

Engage before you need to Distinguish dialogue from partnership Reach far and listen Be Inclusive Be Transparent Create a continuous process

Intro to Stakeholder EngagementBenefits to BusinessBenefits to Business

Avoid the “Technical Blinders” syndrome. The “Possible” is not always the “Profitable” Presentation can be as important as content

Understand engagement creates a larger potential market

Risk reduction creates greater sustainability in investments

Avoid brushfire skirmishes with skeptical publics

Create and maintain communication channels prior to crises

What are some best practices?

Intro to Stakeholder EngagementBasic FrameworkBasic Framework

Internal External

Strategic Direction

Products

Investments

Stakeholders

De

cis

ion

s

Use this simple framework as a place to start

Intro to Stakeholder EngagementWhat Decisions?What Decisions?

Internal External

Strategic Direction Enabling Technology Market Sectors Location in Value Chain

Products New Products New Regions New Applications New Formulations

Investments New Sites M&A Modifications Research

StakeholdersD

ec

isio

ns

Consider the important company decisions first!Choose the ones that have the greatest potential impact

Intro to Stakeholder EngagementWhich Stakeholders?Which Stakeholders?

Internal Board R&D External Affairs Employees Business Mgt

External Local Community Consumers General Public Scientific Community Interest Groups Investors Governments

Strategic Direction

Products

Investments

Stakeholders

De

cis

ion

sNow try to expand the list of stakeholders beyond the “comfort zone.” Sometimes this includes internal constituencies also!

Intro to Stakeholder EngagementEnhanced Stakeholder InputEnhanced Stakeholder Input

Internal Board R&D External Affairs Employees Business Mgt

External Local Community Consumers General Public Scientific Community Interest Groups Investors Governments

Strategic DirectionEnabling TechnologyMarket SectorsLocation in Value Chain

ProductsNew ProductsNew RegionsNew ApplicationsNew Formulations

InvestmentsNew SitesM&AModificationsResearch

StakeholdersD

ec

isio

ns

How can input improve our chance of success?

How can input reduce our chance of failure?

Who else should we ask?

Intro to Stakeholder EngagementQuestions to ExploreQuestions to Explore

What is the inventory of all the ways in which our business is engaging stakeholders?

What is our internal approach and expectation of stakeholder engagement? Is that a view that limits real partnership?

How do we score against the best practices of stakeholder engagement?

What are the organizational beliefs that are barriers to being more engaged, transparent and accountable to stakeholders?

How do we value our internal stakeholders to help us understand the communities in which we work?

What basic questions can start a development of a stakeholder strategy?

Intro to Stakeholder EngagementTerms of UseTerms of Use

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