Effective Stakeholder Engagement as a tool for conflict resolution involves understanding stakeholders, engaging them through various levels of participation, and overcoming hostility. Stakeholder engagement requires flexibility to allow open discussion and addressing stakeholder concerns. Case studies show engagement helping resolve issues around mining pollution and transportation projects in South Africa. True consensus requires commitment from all stakeholders, while qualified consensus has outstanding issues.

1. Effective Stakeholder Engagement
as a tool for conflict resolution
Reana Rossouw
Next Generation Consultants

2. Moving away
from Hostility
Stakeholder
Engagement
• What is it
• Who are they
• Why is it so difficult
to listen
• Case Studies
• Moving on

3. Definitions in the stakeholder
environment
• Communication:
– Any manner of information sharing with stakeholders, generally
through one-way, non-iterative processes
• Consultation:
– The process of gathering information or advice from stakeholders and
taking those views into consideration to amend plans, make decisions
or set directions
• Dialogue:
– An exchange of views and opinion to explore different
perspectives, needs and alternatives, with a view to fostering mutual
understanding, trust and cooperation on a strategy or initiative
• Engagement:
– An organisation’s efforts to understand and involve stakeholders and
their concerns in its activities and decision-making processes
3
Reference: Stakeholder Engagement Manual – Page 6, UNEP, Volume 1 – www.stakeholderresearch.com

4. Who are stakeholders?
• Stakeholders are defined as:
– Individuals or groups who will be impacted by, or can influence
the success or failure of an organisation’s activities (Bourne
2009).
• By definition, a stakeholder has a stake in the activity. This
stake may be:
– An interest in the outcome, an individual or group affected by
the work or the outcome, whether direct or indirect
– Rights (legal or moral)
– Ownership, such as intellectual property rights, or real property
rights
– Contribution in the form of knowledge (expertise or experience)
or support (in the form of funds, human resources, or advocacy
(Bourne 2009).

5. Local Case Studies (1)
• Guide to the main players - The world of acid mine drainage - who's who. 09 Nov 2010
12:29 - Mara Kardas-Nelson
• The activists:
– The self-proclaimed “Erin Brockovich of South Africa”, Mariette Liefferink leads the pack of those sounding the acid
mine drainage (AMD) alarm bells. Organisations like Liefferink’s Foundation for Sustainable Environment, Earthlife
Africa and Greenpeace are teaming up with disgruntled scientists, concerned unions, and affected community
members to push the government and industry to do something—and soon.
• The mines:
– Simultaneously the bad guys and the poor suckers who are left to pick up the scraps of a fading gold industry, mining
companies sit in a precarious place. While many have left tailings unremediated and voids to fill up, others are
attempting to pump and treat what they can, but call on government to assist with enormous costs and historical
liability.
• The government:
– Due to the large number of ownerless and abandoned mines, the Department of Water Affairs and Department of
Mineral Resources are responsible for a large part of the AMD debacle. Poor remediation and lack of action has been
encouraged by a poorly regulated environment initiated under apartheid and further facilitated by lack of
management, skills and budget under democratic governance.
• The scientists:
– Academics and scientists have been at the forefront of the AMD issue for decades, releasing reports on the affects of
mine effluent since the 1950s. But their data doesn’t always align, and personal politics encouraged by funding
allegiances puts many scientists head-to-head: who pays who is central to who says what. While all agree there’s a
problem, opinions vary on the extent of the crisis, as well as how to fix it.
• The communities:
– From Soweto to Potchefstroom, from Emalahleni to Randfontein, millions of South Africans are
living, working, playing, and praying amid mine waste. While many communities see tailings dumps and polluted water
as just another fact of life, concern is starting to spread, with neighbours swapping stories of decreased crop
yields, birth defects in livestock and increased cancer rates.

6. Why is stakeholder engagement so
difficult?
• Stakeholder management is difficult because
it involves different people with different
expectations and different information needs.
• Engaging stakeholders for collaboration
involves constant vigilance in a constantly
changing landscape of relationships with
stakeholders whose support, interests and
influence fluctuates unpredictably.

7. Increasing sophistication in
approaches to engagement
Communications via one-way channels designed to
spread information
• TRUST US
Consultation and dialogue via interactive channels
• SHOW US
Partnerships that create value and are focused on
finding solutions
• INVOLVE US, HEAR US

8. Local Case Studies (2)
• Stakeholder relations prioritised as Sasol recalibrates to post-
Marikana world – Engineering News
– JSE-listed energy and chemicals group Sasol, which is arguably South
Africa’s largest fixed investor, has set the strengthening of stakeholder
relationships as one of its top-five priorities for the coming year, as
part of a move to deal with the risks posed by South Africa’s social
problems of poverty, unemployment and inequality.
– The issue of stakeholder engagement had also been elevated to a key
priority for the group’s 2013 financial year and had been accompanied
by a change to one of the group’s core company values “from
customer focused to stakeholder focused”.
– Sasol, which supported the exploration moratorium and stepped back
from involvement in an earlier Karoo basin shale-gas prospect,
believes that, under a sound regulatory regime, it is in South Africa’s
national interest to assess its shale-gas resources. “So we are
definitely interested in looking at opportunities in the Karoo, if it can
be done in an environmentally-friendly fashion.”

9. Stakeholder Behaviour in difficult
circumstances
• People are often resistant
because of :
– Fear that something bad or
difficult is going to happen
– Uncertainty about the
future
– Doubt about how an issue
will affect them
• And as such it influences
their behaviour
– Denial – resistant - will not
engage
– Turbulence –
argumentative, emotional

10. Local Case Studies (3)
• Stakeholder engagement meeting on the Gauteng
Freeway Improvement Project
– As part of the ongoing stakeholder engagement process of the Inter Ministerial
Committee (IMC) on the Gauteng Freeway Improvement Project, led by Deputy
President Kgalema Motlanthe, on Thursday, 19 July 2012, a technical task team
engagement was held with representatives of stakeholders at the Union Buildings.
– Director-General in the Presidency, Dr Cassius Lubisi, led the government delegation
and chaired the session. This engagement included representatives from Business
Unity South Africa (BUSA), Southern African Vehicle Rental and Leasing Association
(SAVRALA), Opposition to Urban Tolling Alliance (OUTA), Road Freight Association (RFA)
and leaders of the religious sector.
– In the interest of transparency, government shared information with stakeholders to
contextualise the GFIP and provide clarity on technical issues. Technical details
shared with stakeholders included among others some of the explanations for the
operational and administrative cost of the e-toll system.
– The stakeholder engagement provided a platform to respond to issues raised by
stakeholders, as well as to begin to unpack technical issues. Presentations included
immediate to short term programmes as well as long term plans to developing an
integrated public transport system.
– Stakeholders argued strongly for alternative funding models for the Gauteng
Freeway Improvement Project including Fuel Levy.
– Government is aware of the concerns of stakeholders and is committed to consider all
suggestions in deciding on a way forward.

11. Stakeholder Relationships
Compete Collaborate
(win/lose) (win/win)
Compromise
(half win/half lose)
Avoid/withdraw Accommodate
(lose/lose) (lose/win)

12. Engaging stakeholders for
collaboration involves constant
vigilance in a constantly changing
landscape of relationships with
stakeholders whose
support, interests and influence
fluctuates unpredictably.

13. Consensus Reaching consensus
All stakeholders are engaged and commit to
True consensus an agreed outcome. This commitment hold We aim for true consensus
into the future under challenge
All stakeholders are engaged and agree on
Qualified consensus many aspects. However, there are We recognise that this may happen
outstanding issues
Consensus is declared, but is not valid due to
false restrictions, lack of engagement, conflict
False consensus We must avoid this
or avoidance of issues. This leads to
chaos, dissatisfaction and resentment.

14. Overcoming hostility
• Engage in issues that matter
– Focus on clear objectives that require action. Stakeholders have limited time and will prefer to
engage on really important project concerns.
• Be ready to act
– Use engagement to drive decisions, not as a public relations exercise.
• Engage the right stakeholders
– Identify the right stakeholders. Ensure the process is inclusive and diverse. Consider stakeholders’
expertise, level of influence and willingness to engage.
• Engage empowered representatives
– Engage stakeholder representatives who are empowered to take decisions for their constituents
• Seek shared value
– Ensure that each stakeholder benefits directly from engagement and understands how project
decisions will impact on other stakeholders
• Agree rules of engagement
– Establish the scope, objectives, roles, rules and risks of engagement at the beginning. Agree the
process of decision-making, conflict resolution and evaluation
• Manage exceptions
– Make certain that all parties have realistic ambitions and agree on clear outcomes of the
engagement

15. Overcoming hostility
• Provide adequate resources
– Devote adequate resources (time, money and people) to ensure success
• Choose the right formats
– Choose the appropriate format (e.g. private meeting, roundtable discussions, stakeholder
panels, etc.) to achieve the objective of the each engagement
• Act fairly
– Be sensitive to perceived or actual power differences and facilitate the process to allow fair
participation
• Listen to (critical) stakeholder views
– Ensure engagement is a dialogue and not a one-way information feed. Allow stakeholders to
voice their views
• Build trust
– Take time to build trust based on the personal chemistry of the individuals and the common
values of the organizations involved. Commit to long term relationships with stakeholders
• Be open
– Be responsive, consistent and timely in communications. Communicate well in
advance, document the engagement rationale and processes and allow for stakeholder
feedback
• Be accountable
– Link the engagement process to project decision making and governance
• Look beyond the engagement
– Learn from the engagement. Involve stakeholders to assess the success of the engagement as
well as the project outcome. Examine whether any next steps are required

16. Local Case Studies (4)
• We were humbled by the intensity of the various stakeholders’
participation and the manner in which they freely shared with us their
ideas, perspectives and expectations. It became clear during the
engagement process that the central role that retailers occupy in the
supply chain leads to high expectations among stakeholders, who
recognise that our supplier convening power and access to consumers
provides a powerful opportunity to influence supplier and customer
behaviour.
• A wide variety of issues were identified, investigated and debated during
our stakeholder engagement process.
– These issues included the Walmart effect, South Africa’s Consumer
Protection Act, product safety, Broad-based Black Economic Empowerment
(BBBEE), rural poverty, the marginalisation of unemployed youth, labour
rights, unsustainable consumption, local manufacturing
competitiveness, biodiversity systems, the crisis in education, energy
security, crime and corruption, waste management, HIV and AIDS, water
security, job security, food security and many others.

17. In Summary
• Stakeholder engagement has and add tremendous
value across the business
• Stakeholder engagement is best understood if the
whole business is involved
• Stakeholder engagement is better supported if
managed in relation to other communication
activities
• In reality, stakeholders don’t present themselves in
neat clearly identified and linear, homogenous
groups
• Stakeholder engagement requires flexibility and a
sense of adventure as well as courage to allow a
free flow of discussion, dialogue and
communication
• Stakeholder engagement is not complete until it is
reported, action is taken and feedback is given
• Successful engagement reflects diversity and
conflict in the views expressed
17

18. Contact
• Reana Rossouw
• Next Generation Consultants
• Specialists in Sustainability and Reporting, Socio Economic Investment and Development,
Enterprise and Business Development
• Tel: (011) 2750315
• E-mail: rrossouw@nextgeneration.co.za
• Web: www.nextgeneration.co.za
• PLEASE NOTE: THIS PRESENTATION IS PART OF A LARGER BODY OF RESEARCH!
• THIS INFORMATION IS COPYWRITED AND THE INTELLECTUAL PROPERTY OF
NEXT GENERATION CONSULTANTS