Hydro is a Fortune 500 energy and aluminium supplier operating in ...

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Dialogue
Why?
Cooperation is a core value in Hydro, which we
understand to mean working with others in an open
and inclusive way. Dialogue is an essential factor.
Dialogue promotes confidence and understanding
between the local community and Hydro, and
helps solve problems that might arise.
Engaging in dialogue with local stakeholders
can promote a fertile business climate. It can lead
to the recruitment of local employees, and can
make them more motivated to contribute to a
favourable development of Hydro’s local business.
Dilemma:
You are in charge of two Hydro factories operating
in the same market. Both are facing rising
costs, and you need to close down one of them.
One factory is located in an industrial area, close
to a town, and the other is located in a rural area
with no other major businesses nearby. To save
costs, one of the factories should be closed. It is
Systematic stakeholder cooperation
Engaging in dialogue with our stakeholders means
they are taken into consideration when business
decisions are made. The first step is to identify stakeholders:
the institutions or persons who will be
affected by our operations or are otherwise of
importance to us. Then we have to find out how to
communicate with them in the best possible way,
and develop an approach that will foster a constructive
dialogue. Systematic dialogue is especially
important when operating in small communities.
You will find more details on how to develop
a fruitful dialogue in the next section.
most cost efficient to keep the factory in the
industrial area in operation. Both local authorities
and trade unions are in favour of retaining the
other factory, since there are no other alternative
employment opportunities in the rural area. What
are the challenges and risks you have to consider
in this situation? What would you choose to do?