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Strategy

stakeholder engagement

Disclosures on stakeholder engagement help assess whether stakeholders’ concerns and interests are factored in the strategy, and how much employees, suppliers, investors and lenders, and regulators contribute to the company’s success. Understanding the perspectives of key stakeholders can highlight market trends and provide valuable insight to assess the organization’s risks and opportunities, including material sustainability issues.

Recommended Disclosure

01
Stakeholder Identification and Relations

The report should define key stakeholder groups and provide insights into the company’s stakeholder relations.

02
Process and Outcome

The company should report on the process of stakeholder engagement and its outcomes. What insights has the company received from stakeholders? How was it used?

03
Integration in Strategy

The report should describe how the key issues raised by stakeholders have influenced the strategy and strategic objectives.

Best Practice

Process of Ongoing Stakeholder Dialogue

Ongoing stakeholder dialogue is a process of “mutual” learning, which supports an open and transparent company culture of involvement, engagement, and connectivity both inside and outside the organization.

LINK >>> Reporting on the governance of stakeholder engagement
Annual reports should also address the governance and board oversight of stakeholder engagement, including stakeholder mapping, engagement policy, and grievance mechanisms for workers and affected communities.

Examples Of Reporting
1

Stakeholder Engagement—Barclays PLC Annual Report 2019

In this example, Barclays, a financial institution in the UK, describes how it defines and categorizes its stakeholders.  It also describes the main insights from  engaging key stakeholders, and how this information contributed to new products and services.