@GRIAusConf_A strategic approach to stakeholder engagment - Dr Leeora Black
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Transcript of @GRIAusConf_A strategic approach to stakeholder engagment - Dr Leeora Black
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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
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- 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
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• What is the ONE big question you have now about stakeholder engagement practices in your organisation/daily work?
YOUR BIG QUESTION
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• 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
WHAT WE WILL COVER
One big idea
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Source: Adapted from David Wheeler, Shulich School of Business, York University
Engage
Comply
Respond
Maximise Social, Environmental & Economic Value (Sustainability)
Avoid Harm
Enhance Reputation
CHANGING ORIENTATION TOWARDS STAKEHOLDERS
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TRENDS IN STAKEHOLDER RELATIONS – HOW TO ENGAGE
From •Bilateral and transactional relationships.
•Engaging around organisational issues.
•Tactical and reactive.
•Emphasis on risk mitigation and reputation.
To • Longer term multilateral
relationships
• Engaging around organisational and societal issues.
• Proactive and collaborative.
• Emphasis on learning, innovation and mutual value creation.
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STAKEHOLDER VIEW - TRADITIONAL
YOU
Unions
Employees
Regulators
Suppliers NGOs
Communities
Customers
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NEW VIEW
Source: ACCSR. Report on the Stakeholder Survey for the NSW Minerals Council. April 2011
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DEFINITION OF A STAKEHOLDER
Individuals, groups or
networks who can affect or
are affected by, an organisation.
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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
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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
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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
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High quality stakeholder relationships AND Motivation to collaborate
PUBLIC ISSUES
To engage effectively on public issues, we need
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WHY RELATIONSHIPS MATTER
Relationship Social Impacts
High quality stakeholder relationships are the key to creating positive 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
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WHAT IS SOCIAL CAPITAL?
“... the stock of active connections among people: the trust, mutual understanding and shared values and behaviors that bind the members of human networks and communities and make cooperative action possible.” Cohen and Prusak, 2000
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SOCIAL CAPITAL AND SOCIAL LICENSE TO OPERATE
Social Capital
Motivation to collaborate
Shared goals for the future
Trust (Listening & promise-keeping)
Legitimacy
Economic (Benefits me)
Socio-political (Benefits the region)
Honest,
transparent communication
Openness
Information quality & quantity
Believable Respect for people & norms (Consistent & fair)
Building blocks of social license to operate
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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.
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HIGH SOCIAL LICENSE TO OPERATE → LOW SOCIO-POLITICAL RISK
Level of Social license
Socio-Political
Risk
Symptoms
Withheld/ Withdrawn
High Shutdowns, blockades, boycotts, violence/sabotage, legal challenges
Acceptance/ Tolerance
Medium Lingering/recurring issues & threats, outside NGOs, watchful monitoring
Approval/ Support
Low Company seen as good neighbour, Pride in collaborative achievements
Psychological identification
Very low Political unity against critics, sense of shared future, co-management
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STAKEHOLDER PLANNING MATRIX
Low SLO/High Motivation to Collaborate:
FRUSTRATED COLLABORATORS
High SLO/High Motivation to Collaborate:
READY FOR COLLABORATION
Low SLO/Low Motivation to Collaborate:
UNLIKELY TO COLLABORATE
High SLO/Low Motivation to Collaborate:
FRIENDLY BUT INDIFFERENT
Level of social license (SLO) in relationships between company and stakeholders
Low Medium High
Stak
ehol
ders
mot
ivat
ion
to c
olla
bora
te w
ith c
ompa
ny
Low
Med
ium
H
igh
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• 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
PITFALLS TO AVOID
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• 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.
KEY TAKEOUTS
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www.accsr.com.au [email protected] Visit the ACCSR table during the conference! Meet ACCSR people at the conference!
THANK YOU
Good Luck!!!