1. Intro to Stakeholder Engagement n From Sustainability to Stakeholders n Approaches and Barriers n Constraints or Myths n Engagement: Best Practices n Benefits to Business n Stakeholder Engagement Framework n Questions to Explore May 1, 2002 stakeholder engagement

2. Intro to Stakeholder Engagement Stakeholder Engagement n This module is about why business should adopt a stakeholder framework and how z What is business’ place in society in the 21st Century? n Other modules describe the features of sustainable enterprises and the strategies and business models that create triple bottom line growth. What is in this module? What is not is this module?

3. Intro to Stakeholder Engagement From Sustainability to Stakeholders n All those with an ability to impact your business are your stakeholders. n Anyone impacted by your business is a stakeholder. n Your company is a stakeholder in other processes n Focusing upon stakeholder needs is a route to new markets, innovation, reduced business risk, and operational freedom. Key Concept: Societal responsibility means moving beyond customers and shareholders

4. Intro to Stakeholder Engagement Local communities Govts Local authorities Media Employees Universities Investors Insurance companies Suppliers Customers NGOs Consumers Your Company Business organisations Courtesy of Novo Nordisk A/S The Stakeholder Based View Who are my stakeholders?

5. Intro to Stakeholder Engagement Approaches and Barriers n Approaches to stakeholder engagement: z Buffering vs. Bridging z Damage Control vs. Decision Making n Barriers to stakeholder engagement z Arrogance (typical in companies with high technical base). z Winning over hearts as well as minds z Lack of mutual knowledge leads to adversarial positions z Lack of corporate culture of listening to non-traditional audiences How do we create a win-win?

6. Intro to Stakeholder Engagement Constraints or Myths? n How can we avoid arming our critics? n Are we actually creating problems where none exist? n Is engagement surrendering management responsibility or management control? n Does engagement create or inflate unrealistic expectations? n Will our stakeholders be able to understand the technical issues at hand? n How can we bridge large philosophical divides? Common fears of stakeholder engagement

7. Intro to Stakeholder Engagement Engagement

8. Intro to Stakeholder Engagement Engagement

9. Intro to Stakeholder Engagement Engagement n Engage before you need to n Distinguish dialogue from partnership n Reach far and listen n Be Inclusive n Be Transparent n Create a continuous process

10. Intro to Stakeholder Engagement Benefits to Business n Avoid the “Technical Blinders” syndrome. z The “Possible” is not always the “Profitable” z Presentation can be as important as content n Understand engagement creates a larger potential market n Risk reduction creates greater sustainability in investments n Avoid brushfire skirmishes with skeptical publics n Create and maintain communication channels prior to crises What are some best practices?

11. Intro to Stakeholder Engagement Basic Framework Stakeholders Decisions Use this simple framework as a place to start

12. Intro to Stakeholder Engagement What Decisions? Stakeholders Decisions Consider the important company decisions first! Choose the ones that have the greatest potential impact

13. Intro to Stakeholder Engagement Which Stakeholders? Stakeholders Decisions Now try to expand the list of stakeholders beyond the “comfort zone.” Sometimes this includes internal constituencies also!

14. Intro to Stakeholder Engagement Enhanced Stakeholder Input Stakeholders Decisions How can input improve our chance of success? How can input reduce our chance of failure? Who else should we ask?

15. Intro to Stakeholder Engagement Questions to Explore n What is the inventory of all the ways in which our business is engaging stakeholders? n What is our internal approach and expectation of stakeholder engagement? z Is that a view that limits real partnership? n How do we score against the best practices of stakeholder engagement? n What are the organizational beliefs that are barriers to being more engaged, transparent and accountable to stakeholders? n How do we value our internal stakeholders to help us understand the communities in which we work? What basic questions can start a development of a stakeholder strategy?

16. Intro to Stakeholder Engagement Terms of Use Pathways is provided to help foster environmentally sound and socially equitable economic development. We request your compliance with the following terms of use: n All materials contained in Pathways modules are believed to be property of World Resources Institute or to be in the public domain. n The opinions and analysis contained herein is that of the authors and editors. n Original sources are credited on the slides or in the notes to the best of our knowledge; please bring errors or omission of citation to our immediate attention. n Please credit original materials to World Resources Institute. n Materials may be copied and edited and revised for internal company use and for non- commercial, educational purposes. n For commercial or other use of materials, please contact Don S. Doering at dsd@wri.org or (202) 729-7655.

17. The Pathways team gratefully acknowledges the support of: n The Surdna, Joyce and Olin Foundations n WRI’s Corporate Council and Partners n … and the support and contributions of the staff of WRI’s Sustainable Enterprise Program www.wri.org/sep