The Stakeholder Engagement Manual Volume 2 - AccountAbility

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Forewords Foreword by AccountAbility Finding a path towards sustainable development will require the pooling of diverse perspectives, knowledge and resources. No single individual, organisation, nor even a single segment of global society is likely to by themselves identify and implement the solutions to the big challenges humanity is facing today. So, for each individual player, but also for society as a whole, there is at the same time a necessity for and an opportunity in engaging with each other to solve these problems. However, we should also not forget another reason for considering and listening to each other before taking signifi cant decisions: We all share this world and the consequences of many of our actions are not limited to our own ‘backyards’. Th ey impact others, too, whether it be directly or indirectly. Th is is why there also needs to be an acknowledgement that those who are impacted by an organisation’s activities have the right to be heard. All the above are reasons why encouraging eff ective stakeholder engagement is core to AccountAbility’s mission of promoting organisational accountability for sustainable development. For the past decade we have worked with pioneering organisations and a growing band of professionals in developing standards and best practice in integrating stakeholder viewpoints into decisionmaking. One outcome of these eff orts is the recent publication of the exposure draft of the AA1000 Stakeholder Engagement Standard. Another complimentary output, this time produced in co-operation with the United Nations Environment Programme and Stakeholder Research Associates, is this handbook. One aim of this handbook is to provide guidance on how corporations can increase their knowledge, their abilities and their legitimacy by undertaking stakeholder engagement. Th is will enhance performance and enable corporations to reach more ambitious objectives for their own business, but also allow them to contribute towards a more sustainable world. In fact, helping to identify the space of synergy between these two benefi ts by aligning corporate strategy with sustainable development is the ultimate objective of this handbook. We would like to thank the United Nations Environment Programme for initiating this project. We also thank Stakeholder Research Associates, whose work for Volume 1 of the manual provided an excellent starting point for the further research and development activities that led to the publication of this handbook. Furthermore, we would like to thank the members of the review panel and the multitude of other individuals who took part in the interviews, consultations and workshops for their contributions to this handbook. Finally, we are indebted to the publication sponsors who have not only contributed resources, but also a wealth of experience and expertise to this handbook. May it be of benefi t. Maria Sillanpää Managing Director, AccountAbility Foreword by the United Nations Environment Programme What does a rail infrastructure company do if it needs to build a new railway line through an area where local inhabitants may have to move as a result? What does a telecommunications company do if the setting up of a new mast opposite a local school causes community protest? How does a food and drinks company recover from the reputational damage caused by the discovery of health threatening substances in one of its products? How does a chemicals company ensure the neighbouring community is aware of potential hazards, risks and safety measures applied at a local production plant? How does a mining company restore employee morale after an underground explosion in which fellow workers lost their lives? Th ese are just a few examples of diffi cult issues various companies have had to deal with, issues that display the close interplay between the business interest and the societal interest. Th ese are basic examples of dramatic events, often showing symptoms of upstream planning and decision-making that had severe shortcomings. Th e more important question therefore becomes: How can the pro-active company engage its stakeholders strategically? Does it know who its real stakeholders are? If yes, how can it improve its ability to listen to and work with those stakeholders in defi ning its mission, what it stands for, what it produces, how it produces, and how it takes responsibility for its impacts with a long term perspective?
Forewords Th is Practitioner’s Handbook on Stakeholder Engagement takes the company through some basic steps and considerations in planning and developing stakeholder engagement. As the second volume in the Stakeholder Engagement Manual by UNEP, AccountAbility and Stakeholder Research Associates, it builds on Volume 1 which gave a compilation of diff erent perspectives of companies, industry associations, labour unions and NGOs on stakeholder engagement. Both of the volumes confi rm growing recognition of the importance of stakeholder engagement in promoting environmentally and socially responsible behaviour by companies across all sectors. Th e origin of this Stakeholder Engagement Manual goes back to UNEP’s 19th Annual Consultative Meeting with Industry Associations and related stakeholder organisations in 2002. From discussions at that meeting and subsequent feedback in the development of this manual, it has been evident that stakeholder engagement can be extremely valuable to organisations of all kinds, in all parts of the world. I thank AccountAbility, Stakeholder Research Associates, all participants and interviewees who contributed to the production of this second volume. Let us use it and get to work. Monique Barbut Director, UNEP Division of Technology, Industry and Economics Forewords by Stakeholder Research Associates We believe that stakeholder engagement is fundamental to successful business in the 21st century. Value creation for everyone involved in enterprise is essential to creating common purpose and addressing the complex issues facing the planet. Th is handbook follows on research presented in Volume 1: Th e Guide to Practitioners’ Perspectives on Stakeholder Engagement. Practitioners told us that progressive businesses increasingly are aware of the interconnections between environment, social and economic issues and that they cannot act alone to fi nd solutions. Stakeholder engagement, they said, is rapidly emerging as a vital tool to develop an understanding of what sustainability means for companies and how it can add value and viability to their operations. Underpinning that notion, companies recognize that to be eff ective, engaging stakeholders must be elevated from a risk-management tool to a deepseated element of corporate strategic planning. Th is highlights the importance of engaging with internal stakeholders – employees at head offi ce and in regional operations, labour unions, and management – to establish common ground and capabilities to eff ectively engage. Th e research for Volume 1 also underlined the notion that stakeholders’ perspectives and preferred modes of engagement vary widely – across stakeholder group, issue, geography, culture, etc. Th is suggests that stakeholder engagement is as multi-faceted as the issues it is meant to address. So, we learned, engagement is most successful when it is an iterative process that builds on the input of the stakeholders themselves. Th is Handbook provides a valuable step-by-step guide through the processes of engaging with stakeholders. We encourage all corporations interested in creating value for their organisation – whether they are launching an engagement programme or wish to enhance an existing one – to make it a part of their everyday operations, while remembering that the goal is to embed engagement processes in their strategic decisions by building on dialogue and collaboration with their stakeholders. Our thanks to UNEP for initiating this important project and to our colleagues at AccountAbility for leading on the Handbook. Katharine Partridge Charles Jackson Asaf Zohar Lara Korba David Wheeler Stakeholder Research Associates THE PRACTITIONER'S HANDBOOK ON STAKEHOLDER ENGAGEMENT | 3
Page 1: VOLUME 2
Page 6 and 7: Contents WELCOME STAGE 1 STAGE 2 ST
Page 8 and 9: Introduction OPENING NOTE Backgroun
Page 10 and 11: Introduction WHY ENGAGE? Th e past
Page 12 and 13: Introduction WHAT IS IN THIS HANDBO
Page 14 and 15: Forwards Introduction HOW TO USE TH
Page 16 and 17: Introduction PRINCIPLES AND STANDAR
Page 18 and 19: Introduction PRINCIPLES AND STANDAR
Page 20 and 21: Introduction PROCESS SUMMARY STAGE
Page 22 and 23: Introduction BEFORE YOU START Befor
Page 24 and 25: Think Strategically STAGE 1 PURPOSE
Page 26 and 27: STAGE 1 Th e process outlined in th
Page 28 and 29: STAGE 1 SUGGESTED METHODOLOGY M1: M
Page 30 and 31: Camelot's Eight Stakeholder Groups
Page 32 and 33: New obligations Public Scrutiny New
Page 34 and 35: Awareness and Preparedness for Emer
Page 36 and 37: STAGE 1 • Identify Strategic Enga
Page 38 and 39: P3: IDENTIFYING ISSUES A B C D E ST
Page 40 and 41: ‘What we know’ ‘What they tel
Page 42 and 43: STAGE 1 THINGS TO CONSIDER This is
Page 44 and 45: Latent Emerging The Four Stages of
Page 46 and 47: Stakeholder dependence on the organ
Page 48 and 49: High impact stakeholder groups are
Page 50 and 51: KEY PRIORITIES Sales, players and w
Page 52 and 53: STAGE 2 Take time to analyse and pl
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Analyse and Plan PRINCIPLES Th e ke
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Analyse and Plan P5: REVIEWING YOUR
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Analyse and Plan P5: REVIEWING YOUR
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Analyse and Plan P6: LEARNING FROM
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Analyse and Plan P6: LEARNING FROM
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Analyse and Plan P7: ASSESSING YOUR
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Analyse and Plan P8: UNDERSTANDING
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Analyse and Plan P9: CHECKING FOR R
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Analyse and Plan P9: CHECKING FOR R
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Analyse and Plan P10: CREATING AN I
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STAGE 3 Maintain and strengthen the
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Strengthen Capacities for Engagemen
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Engage with your stakeholders in wa
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How this Stage relates to the other
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Level Remain Passive Monitor Inform
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STAGE 4 • Use the table, as well
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Telephone Hotlines (continued) One-
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STAGE 4 Involving Stakeholders in I
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Stakeholder Advisory or Assurance P
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12 Offi ce of Consumer Affairs “V
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Name Common Facilitation Techniques
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STAGE 4 Outcomes and process planni
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British American Tobacco Uses Indep
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STAGE 4 Article 13's Method of Asse
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STAGE 4 REVIEW STAGE 4 By the end o
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Take action and review the engageme
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P16: CREATING A PLAN FOR ACTION STA
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Strategic Objective STAGE 5 THINGS
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Camelot's Performance Reporting STA
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BAT's Reporting on Stakeholder Dial
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STAGE 5 SUGGESTED METHODOLOGY M17:
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Thinking about Assurance (continued
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Engagement Process SUMMARY TEMPLATE
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ANNEX
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Annex JARGON BUSTER JARGON BUSTER 1
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Annex FURTHER RESOURCES & BIBLIOGRA
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Annex Interact Network: Framework f
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Annex FURTHER ACKNOWLEDGEMENTS In a
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Annex ACCOUNTABILITY AccountAbility
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Annex STAKEHOLDER RESEARCH ASSOCIAT
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