The Stakeholder Engagement Manual Volume 2 - AccountAbility

Analyse and Plan
P9: CHECKING FOR RESOURCE COMMITMENTS AND DEFINING “MARGINS OF MOVEMENT”
SIG’s Consideration of its Positioning in relation to stakeholder expectations
Following a range of surveys, consultations and workshops evaluating the concerns and expectations of stakeholders, the Swiss
utilities company SIG undertook internal dialogues in order to defi ne it’s position on the identifi ed issues and expectations.
Amongst various functions, the internal dialogue also involved the executive management team. The dialogue focused on identifying
ways of ensuring that material stakeholder expectations are met. This involved a consideration of the company’s limitations, in order
to ensure that SIG does not commit to actions that would exceed them. Simultaneously, potential strategic opportunities that were
indicated by the stakeholder consultations were considered.
Use stakeholder engagement when:
BACKGROUND
Factors to consider for the engagement itself:
• Confl icting interests and dilemmas (internal and external), which might
prevent or derail successful engagement.
• Possibility of using/building on existing engagement processes and structures
both internally and externally (e.g. customer panels, investor relations
meetings, industry bodies, multi-stakeholder initiatives).
• Th e geographical scale of the engagement. Is engagement on a local, regional
or global (or all) scales required?
For the response and outcomes:
There is a major issue confronting the company.
There is suffi cient overlap between the objectives and concerns
of the company and those of the stakeholder.
There is concern about the impact of a company goal or strategy.
It is necessary to improve the company’s knowledge of an issue.
There is an opportunity to help shape company goals and
strategies.
The company has suffi cient control or infl uence over a decision.
The company needs to create more options for a planned action.
All the decisions related to an issue have not yet been made.
• Internal resources (systems, people, budgets, etc.) necessary to put insights
and possible commitments into practice.
• Confl icting interests and dilemmas (internal and external), which might
prevent or derail possible actions (e.g. strict and low pricing targets for
procurement vs. objectives for improved labour standards in the supply chain).
• Margins of movement in relation to a specifi c issue. Th is means, what can and
what cannot be done regarding an issue. Which stakeholder expectations can
be met under which circumstances? Which cannot be met?
These are the guidelines that US consumer brand holding company Altria uses to help decide
whether stakeholder engagement is appropriate.
Don’t use stakeholder engagement when:
There is low or no company commitment to address an issue.
The company has already made key decisions on the issue.
There is insuffi cient time to engage stakeholders.
Addressing the issue is a relatively short-term business objective.
The company’s primary concern is risk mitigation.
The company is seeking buy-in through advocacy and persuasion.