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A strategic approach
to stakeholder
engagement
.
Dr Leeora Black, Managing Director, Australia Centre fro
Corporate Social...
- MASTER CLASS –

 A STRATEGIC APPROACH TO
 STAKEHOLDER ENGAGEMENT
          Presented by Dr Leeora Black
Managing Directo...
YOUR BIG QUESTION


• What is the ONE big question you have now about
  stakeholder engagement practices in your
  organis...
WHAT WE WILL COVER


One big idea

• When it comes to stakeholders, managers are short-
  sighted
• Managers need a 360-de...
CHANGING ORIENTATION TOWARDS
 STAKEHOLDERS


                                                                Maximise Soci...
TRENDS IN STAKEHOLDER RELATIONS –
HOW TO ENGAGE


           From                            To
•Bilateral and transaction...
STAKEHOLDER VIEW - TRADITIONAL


                               Unions



            Customers                          E...
NEW VIEW




 Source: ACCSR. Report on the Stakeholder Survey for the NSW Minerals Council. April 2011
DEFINITION OF A STAKEHOLDER



    Individuals,
     groups or
  networks who
   can affect or
  are affected by,
  an org...
DEFINITIONS: STAKEHOLDER


“Can affect or be affected by ...”

                 Impacts and issues

Issues arise in respon...
COMMON MISTAKES AND BLIND SPOTS


• Managers tend to focus on corporate-centric issues
  rather than pubic issues

• Manag...
THE STRATEGIC LIMITATIONS
OF CHECKLISTS


 Examples of checklists:
    • Lists of stakeholders for and against project
   ...
PUBLIC ISSUES


To engage effectively on public issues, we need

High quality stakeholder relationships

AND

Motivation t...
WHY RELATIONSHIPS MATTER

 High quality stakeholder relationships are the key to
 creating positive social impacts



    ...
WHAT IS SOCIAL CAPITAL?


 “... the stock of active connections among people: the
 trust, m utual understanding and shared...
SOCIAL CAPITAL AND
SOCIAL LICENSE TO OPERATE


 Trust                     Economic                   Openness
 (Listening ...
MODEL OF SOCIAL LICENSE TO OPERATE

                 Psychological identification - The
                 community has ver...
HIGH SOCIAL LICENSE TO OPERATE
→ LOW SOCIO-POLITICAL RISK

  Level of         Socio-
Social license    Political          ...
STAKEHOLDER PLANNING MATRIX
Stakeholders motivation to collaborate with company

                                         ...
PITFALLS TO AVOID


• Inadequate investment in relationship-building
• Selective engagement
• Failing to deliver on promis...
KEY TAKEOUTS


• Understanding the quality of relations within the
  stakeholder network can give you:
• Insights for mana...
THANK YOU


Good Luck!!!

www.accsr.com.au

leeorablack@accsr.com.au

Visit the ACCSR table during the conference!

Meet A...
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@GRIAusConf_A strategic approach to stakeholder engagment - Dr Leeora Black

  1. 1. A strategic approach to stakeholder engagement . Dr Leeora Black, Managing Director, Australia Centre fro Corporate Social Responsibility Richard Lambell, Senior Consultant, ACCSR Brought to you by
  2. 2. - MASTER CLASS – A STRATEGIC APPROACH TO STAKEHOLDER ENGAGEMENT Presented by Dr Leeora Black Managing Director, Australian Centre for Corporate Social Responsibility The Australian GRI Conference on Sustainability and Integrated Reporting 26 March 2012
  3. 3. YOUR BIG QUESTION • What is the ONE big question you have now about stakeholder engagement practices in your organisation/daily work?
  4. 4. WHAT WE WILL COVER One big idea • When it comes to stakeholders, managers are short- sighted • Managers need a 360-degree view of the stakeholder terrain if stakeholder engagement is to improve reporting, strategy and organisational performance
  5. 5. CHANGING ORIENTATION TOWARDS STAKEHOLDERS Maximise Social, Environmental & Economic Value Engage (Sustainability) Respond Enhance Reputation Avoid Harm Comply Source: Adapted from David Wheeler, Shulich School of Business, York University
  6. 6. TRENDS IN STAKEHOLDER RELATIONS – HOW TO ENGAGE From To •Bilateral and transactional • Longer term multilateral relationships. relationships •Engaging around • Engaging around organisational issues. organisational and societal issues. •Tactical and reactive. • Proactive and •Emphasis on risk collaborative. mitigation and reputation. • Emphasis on learning, innovation and mutual value creation.
  7. 7. STAKEHOLDER VIEW - TRADITIONAL Unions Customers Employees YOU Communities Regulators NGOs Suppliers
  8. 8. NEW VIEW Source: ACCSR. Report on the Stakeholder Survey for the NSW Minerals Council. April 2011
  9. 9. DEFINITION OF A STAKEHOLDER Individuals, groups or networks who can affect or are affected by, an organisation.
  10. 10. DEFINITIONS: STAKEHOLDER “Can affect or be affected by ...” Impacts and issues Issues arise in response to a perceived gap between expectation and reality Stakeholders get organised around issues. .... Stakeholders come in packages called issues! Issues flow through networks
  11. 11. COMMON MISTAKES AND BLIND SPOTS • Managers tend to focus on corporate-centric issues rather than pubic issues • Managers tend to conflate what is important to the company with what is important to stakeholders .... And create blind spots for themselves and the company
  12. 12. THE STRATEGIC LIMITATIONS OF CHECKLISTS Examples of checklists: • Lists of stakeholders for and against project • Lists of issues that need immediate attention or not Dynamic interactions are ignored • Interactions of issues and stakeholders are ignored • The role of ‘Bridging stakeholders’ is overlooked
  13. 13. PUBLIC ISSUES To engage effectively on public issues, we need High quality stakeholder relationships AND Motivation to collaborate
  14. 14. WHY RELATIONSHIPS MATTER High quality stakeholder relationships are the key to creating positive social impacts Relationship Social Impacts Leverage for change is in the relationship side of cycle High quality relationships produce more social capital and are a foundation for social license to operate
  15. 15. WHAT IS SOCIAL CAPITAL? “... the stock of active connections among people: the trust, m utual understanding and shared values and behaviors that bind the members of human networks and communities and make cooperative action possible.” Cohen and Prusak, 2000
  16. 16. SOCIAL CAPITAL AND SOCIAL LICENSE TO OPERATE Trust Economic Openness (Listening & (Benefits me) promise- keeping) Information Socio-political quality & (Benefits the quantity Motivation to region) collaborate Respect for Believable people & Shared goals norms for the future (Consistent & fair) Honest, transparent Social Capital Legitimacy communication Building blocks of social license to operate
  17. 17. MODEL OF SOCIAL LICENSE TO OPERATE Psychological identification - The community has very high trust in the industry and sees itself as sharing responsibility for the company’s success. Stakeholders will advocate for the company when necessary. Approval – The industry has established both legitimacy and credibility, and the community approves of the industry. Acceptance - The community listens to the industry and considers its proposals. If, by their own standards, they have no reason to doubt the industry’s credibility, they may allow a project to tentatively proceed. Withholding/withdrawal - The rejection level of a social licence is the worst case scenario. This can manifest in complaints, blockades and public action against individual sites, companies or the industry as a whole.
  18. 18. HIGH SOCIAL LICENSE TO OPERATE → LOW SOCIO-POLITICAL RISK Level of Socio- Social license Political Symptoms Risk Withheld/ High Shutdowns, blockades, boycotts, Withdrawn violence/sabotage, legal challenges Acceptance/ Medium Lingering/recurring issues & threats, outside Tolerance NGOs, watchful monitoring Approval/ Low Company seen as good neighbour, Pride in Support collaborative achievements Psychological Very low Political unity against critics, sense of shared identification future, co-management
  19. 19. STAKEHOLDER PLANNING MATRIX Stakeholders motivation to collaborate with company High Low SLO/High High SLO/High Motivation to Motivation to Collaborate: Collaborate: FRUSTRATED READY FOR COLLABORATORS COLLABORATION Medium Low SLO/Low High SLO/Low Motivation to Motivation to Collaborate: Collaborate: UNLIKELY TO FRIENDLY BUT COLLABORATE INDIFFERENT Low Low Medium High Level of social license (SLO) in relationships between company and stakeholders
  20. 20. PITFALLS TO AVOID • Inadequate investment in relationship-building • Selective engagement • Failing to deliver on promises • Failing to understand internal structure of the community • Failing to listen and respect with over-reliance on legal permits • Failing to maintain close contact when there are changes of personnel in the company • Over-estimating the quality of the relationship
  21. 21. KEY TAKEOUTS • Understanding the quality of relations within the stakeholder network can give you: • Insights for managing issues • Insights for strategy • And is the foundation for earning, maintaining and strengthening your social license to operate.
  22. 22. THANK YOU Good Luck!!! www.accsr.com.au leeorablack@accsr.com.au Visit the ACCSR table during the conference! Meet ACCSR people at the conference!
  • KimberlyLindseyFeagi

    Oct. 20, 2014
  • JoseanLavado

    Dec. 20, 2012

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