STRENGTHENING YOUR COMPANY’S ABILITY TO RESPOND

SUGGESTED METHODOLOGY M11:
FOR STRENGTHENING STAKEHOLDER ENGAGEMENT CAPACITY
Th e purpose of this activity is to initiate an ongoing process of strengthening your
company’s ability to address its specifi c priority issues more eff ectively, especially
in its engagement activities, but also to strengthen the management of corporate
responsibility issues more generally.
• Use the assessment that you have undertaken in Stage 2, and captured in
Template 4, as a starting point for identifying the areas where your policies,
management systems and governance structures should be improved.
Also, consider which potential outcomes you need to prepare for, as captured
in Template 11.
• Consider also what you have learned about the way other people manage these
issues in the table on p57 (Where to look for learning from others), Stage 2.
For example, you may want to use corporate responsibility standards listed
there when developing policies on specifi c issues, or simply look at how other
businesses have developed their systems to work with a range of issues.
• Consider the advice given in the “Strengthening enablers for success” table,
and agree on ways to strengthen your ability to respond to specifi c issues and
to engage on them. Capture your plans in summary Template 10, below.
• Determine priorities for improvements.
• Identify learning resources.
THINGS TO CONSIDER
• Be aware that engagement itself is a key step in strengthening some of the
enablers. For example, if you want to develop a policy, you may want to
use one of the engagement methods in Stage 4 to do this, e.g. establish a board
sub-committee that investigates and reports to the board on priority issues to
strengthen top-level commitment.
P11: STRENGTHENING YOUR COMPANY’S ABILITY TO RESPOND
STAGE 3
SUMMARY TEMPLATE T11: SYSTEMS STRENGTHENING PLAN*
Enabler Steps to strengthen the enabler Priority Timeframe Resources
(e.g. toolkits,
standards, bestpractise
examples,
stakeholders
Board and management
commitment
Agreed policies or procedures
Current Engagement
Activities
Performance indicators/
measurements and targets
regarding the issue
Internal responsibility for
an issue
Review and learning
processes in regards to
the issue
THE PRACTITIONER’S HANDBOOK ON STAKEHOLDER ENGAGEMENT | 85
electronic version downloadable at www.accountability.org.uk Telefónica’s Internal Training Telefónica’s CSR and Human Resources department are working together to integrate CSR and stakeholder issues into internal training courses for employees from various departments and business functions. A focus lies on creating an awareness of the link between brand, reputation and social responsibility. This part of the training is tied to an introduction to Telefónica’s values, policies and vision. Apart from the direct benefi ts of increased awareness among employees, it also promotes an understanding of Telefónica’s CSR strategy and positioning as a source of help for identifying risks, solving problems and generating opportunities across the company. BACKGROUND When deciding to engage with stakeholders, it is vital that you consider what internal skills are required. Many path-breaking engagement processes involve or are driven by what Sean Ansett calls ‘boundary spanners’. Th ese are individuals within organisations that establish links across organisational boundaries, identify threats and opportunities, embed insights back into the organisation and make complex multi-stakeholder collaboration possible 9. However, engagement processes are likely to involve a broad variety of people with diff erent levels of expertise and experience in the area. Th is means eff orts to develop stakeholder engagement related skills should not only focus on sustainability and CSR managers or stakeholder engagement specialists, but also on general managers across functions. Th ere is no generic stakeholder engagement skill-set, as diff erent expertise and experience may be needed to engage with public policy makers, supply chain workers, or to moderate an internet discussion with consumer activists for example. However, a basic range of skills and characteristics can be identifi ed. Sometimes it may be practical to develop these skills with people who are dealing directly with stakeholders, but are not ‘engagement specialists’. In other cases, it may be more suitable to draw on the expertise of practitioners from established professions such as labour relations, lobbying, public aff airs, and market research 10 . Apart from skills, another key contributor to successful engagement is credibility. For example, facilitators who are from a similar background to the stakeholder group may be better able to understand cultural issues and put stakeholders at ease. In addition to the ability to engage successfully, being knowledgeable on relevant issues and being credible, benefi cial skills include project management and analytical skills, as well as certain personality traits. The engagement skills and characteristics map on the following page illustrates this required combination of skills and characteristics. The requirements associated with each of these skills and characteristics are described in further detail below, along with possible sources for improvement. 9 For more on boundary spanners, please also see: Sean Ansett’s article in the AccountAbility Forum No.6 Stakeholder Engagement, London, 2005. 10 See also the Placer Dome case study in Volume 1: :The Guide to Practitioners’ Perspectives on Stakeholder Engagement”, p29, box 2.4. Strengthen Capacities for Engagement P12: DEVELOPING THE INTERNAL SKILLS AND CHARACTERISTICS NEEDED FOR STAKEHOLDER ENGAGEMENT STAGE 3 Description of Benefi cial Skills and Characteristics Area Stakeholder Engagement Skills and Characteristics Possible ways of Development and Improvement • Guidelines for and training in project management are available from the Project Management Institute at www.pmi.org. • Personal abilities must be complemented and guided by enabling policies and procedures, as described in the previous section. • Engaging with stakeholders in an effective manner, a timely fashion and within budget. • The ability to examine and interpret the outcomes of stakeholder engagement in a way that captures the key facts and fi gures, as well as messages and insights. Project Management & Analysis Personal Behaviour • Displaying individual personality traits such as integrity, ability to focus on solutions, motivation, and creativity, etc. • Different engagements may make some of these behaviours more or less important. For instance, unlike confl ict resolution processes over labour disputes, consumer focus groups on purchasing preferences do not require a ‘solutions oriented outlook’. • Develop ethical guidelines and policies for personal behaviour, as well as internal programmes to promote and develop these. Engagement Skills and Characteristics Map Engagement techniques Issues knowledge Personal behaviour Credibility Project management and analysis THE PRACTITIONER’S HANDBOOK ON STAKEHOLDER ENGAGEMENT | 87 Strengthen Capacities for Engagement P12: DEVELOPING THE INTERNAL SKILLS AND CHARACTERISTICS NEEDED FOR STAKEHOLDER ENGAGEMENT Engagement Techniques • A knowledge of relevant approaches to stakeholder engagement is key (as outlined in Stage 4). • The skill sets needed for more involved engagements such as partnerships, community relations development or confl ict resolution differ from more ‘traditional’ and sometimes one-way market research techniques such as questionnaire surveys or focus groups, etc. • These are unlikely to rest with the same individual(s), and so may involve an integrated multi-disciplinary team from different functions within the organisation, e.g. human resources, public relations, customer affairs etc. (or drawing upon skills from outside as necessary). • Internal learning groups can ensure that those engaging with stakeholders in different parts of the business can contribute from each other’s experiences. • Numerous service providers offer mentoring and support to build practitioner competencies, for example BSR and the Environment Council, see www.bsr.org or www.environment-council.org.uk respectively. • AccountAbility has developed training, professional certifi cation (with IRCA) and quality standards in stakeholder engagement aligned with its AA1000 Series. Further information available at www.accountability.org.uk/ training. Issues Knowledge • Expertise and experience in the specifi c issues that are subject of the engagement may be a pre-requisite for the staff involved. This could include both knowledge of sustainable development issues such as labour rights or climate change as well as an understanding of the industry and political context. • Again, to engage on complex issues may require building a multi-disciplinary team that draws upon the ‘know-how’ of different departments, e.g. procurement, or environmental management, or drawing upon external expertise. • The sources already identifi ed in Stage 2 (learning from others), can be a useful reference. Establishing an issue-specifi c database that individuals from all parts of the business can access and draw information from is a useful resource for learning as needed. • Again, numerous service providers offer advice and support to build practitioner competencies on specifi c issues (see the annex for some of these organisations). • Success in securing trust and providing assurance to stakeholders may in part depend upon how well those involved in stakeholder engagement relate to and are perceived by a particular stakeholder group. • Credibility here may mean ensuring that people involved in engagement have a good understanding of the communities involved. In general, recruitment from local environments, which ensures equal opportunities regardless of gender, religion, ethnicity, sexual orientation etc., will help to ensure that staff inside the company refl ect the diversity of stakeholders. • It may be necessary to involve external people or organisations in facilitating engagement processes. They can provide credibility by being perceived as independent or because of their track record in contributing towards positive outcomes in the area. Credibility Stakeholder Engagement Skills and Characteristics (continued) STAGE 3 Gap Inc. Trains Internal Staff in Stakeholder Engagement The US apparel and garments company Gap Inc. recognised that more and more fi eld workers in labour compliance had to get involved in stakeholder engagement. For example, they had to engage with local factory managers, workers and local communities at the same time in order to address factory specifi c challenges. Therefore it became clear that fi eld teams needed to build their capacity to go beyond compliance management towards proactive engagements, as this was required to maintain trust throughout expanding multi-partner processes. At the same time, it has also become clear that senior management needed to learn more about the engagement, particularly the business case for engagement. The company subsequently initiated a range of training programmes to enhance the internal ability to address such issues and to work with stakeholders. SUGGESTED METHODOLOGY M12: STAFF DEVELOPMENT FOR ENGAGEMENT Th e purpose of this activity is to create a plan for improving the ability to identify the expertise and experience for stakeholder engagement. • Set performance standards in terms of necessary and desirable outcomes, and assess skill gaps. • Determine priorities for corrective action (e.g. further training or employment, or a reorganisation of teams). • Identify learning resources. SUMMARY TEMPLATE T12: STAFF DEVELOPMENT
Skill or Characteristic Steps to strengthen
the Enabler
Priority Timeframe Resources
Project management and
analysis
Personal behaviour
Engagement techniques
Issues knowledge
Staff Development Template
Role or Department: Responsibility:
THE PRACTITIONER’S HANDBOOK ON STAKEHOLDER ENGAGEMENT | 89
*electronic version downloadable at www.accountability.org.uk
BACKGROUND
It is also important to appreciate that some individuals and groups may fi nd it
diffi cult to take up your invitation to engage, or that circumstances may hinder
them in fully contributing to the engagement processes. Th is could, for example,
be due to language, literacy or cultural barriers, problems of distance or lack of
time or gaps in their knowledge about a specifi c issue.
Th erefore, you may need to address capacity gaps of stakeholders to avoid
their exclusion or to prevent them from disengaging. At the very least, you
should always consider the circumstances of the engagement very carefully. In
Cambodia, for example, Buddhist monasteries have proven a good location for
human rights training, because these are already the usual communal centres of
learning, and people are likely to be comfortable and speak more openly than
in other spaces which can usually be considered as very neutral and supportive,
like the local UN-offi ce. Language barriers may also be quite signifi cant,
and concepts that seem obvious to some, like for example ‘development’,
may be very diff erently perceived in diff erent cultural settings. Finally, the
mode of information sharing is very important. Th e accessibility of modern
communication technologies, notably the Internet should not be taken for
granted and alternative information channels should be used where needed.
Th e following table gives an overview of number of factors that can impede the
ability of stakeholders to engage, and highlights possible ways of addressing
these problems:
Strengthen Capacities for Engagement
P13: CONSIDER YOUR STAKEHOLDERS’ REQUIREMENTS FOR ENGAGEMENT
STAGE 3
Areas
• Provide timely information
• Use different communication channels
(e.g. print – and online media, community
radio, community theatre)
• Provide training
• Provide information in various languages
• ‘Open-house’ days
Obstacles to Participation
• Issue-specifi c knowledge
• Ability to use Information and
Communications Technology (ICT)
• Literacy
• Communication styles
• Language
• Limited reach of press & media
Issues Potential Solutions/Enablers
Knowledge / Education/
Communication
Infrastructure • Choose accessible locations
• Provide assistance with transportation
• Provide equipment and training for ICT
if necessary
• Choose the right time (e.g. avoiding
monsoon season)
• Availability of ICT
• Means of transport
• Unreliable infrastructure
(possibly season specifi c)
Social-Cultural Context • Ensure anonymity if required
• Be aware of potential confl icts between
stakeholder groups
• Ensure that timing and location of
engagement processes takes into account
stakeholder’s needs.
• Social hierarchies (e.g. caste, gender,
wealth)
• Local confl icts
• Lack of shared understanding of key
customs
• Religion
• Culture-specifi c customs &
communication styles
• Family and other responsibilities
(e.g. harvest times, childcare)
Finances • Compensate for lost working time
• Compensate for travel and
accommodation costs
• Costs of travel & accommodation
• Lost working-time
Some of the key enablers for stakeholders to engage revolve either around
knowledge, access to information, fi nances or time. Th e following guidelines
regarding these areas are very helpful to keep in mind:
• If you do provide fi nancial support to your stakeholders, do this on the basis
of clear eligibility criteria and in a transparent manner.
• Never lightly assume common levels of knowledge and similar understandings
of concepts – be sure everybody involved understands the issues at stake.
• Provide enough time: Stakeholders – just like the company – require time
for digesting information, understanding and forming opinions amongst
themselves. Good engagement also requires trust, which takes time to evolve.
• Don’t just make stakeholders learn about your way of thinking –
make sure you understand how they see things, too!
Location • Be sensitive to stakeholder requirements
regarding the locations
• Do stakeholders feel comfortable?
• Can there, if required, be adequate
privacy or anonymity
THE PRACTITIONER’S HANDBOOK ON STAKEHOLDER ENGAGEMENT | 91
There is no discrete end to this Stage – it is the start of an ongoing process of
people and systems development to ensure that you have the capacity to engage
eff ectively with your stakeholders and they are able to engage with you.
Outputs
Enhanced ability of staff to engage
Internal organisational systems that ensure successful engagement
Ability of external stakeholders to engage
The Environment Council
This UK environmental charity undertakes a number of facilitation engagements for companies, often in controversial industries.
These have included the airport authority BAA and the nuclear company BNFL. As part of its approach the Environment Council has
established a ‘Stakeholder Support Fund’ to overcome barriers for inclusion for some stakeholders related to resource limitations or the
perceived dilemma for accepting money directly from a company. There are strict rules for access to the fund. These grants are given on
a confi dential basis. A committee was formed to judge if stakeholders’ claims were eligible. Importantly, the rules and decision-making
are both transparent and so open to public scrutiny.
STAGE 3 REVIEW
P13: CONSIDER YOUR STAKEHOLDERS’ REQUIREMENTS FOR ENGAGEMENT
Strengthen Capacities for Engagement
STAGE 4
Engage with your stakeholders in ways that work
STAGE 4
PURPOSE
The aim of this Stage is to design and implement engagement processes
which meet stakeholder expectations and organisational objectives.
When it comes to actually engaging with your stakeholders, there are a wide
range of options; from basic meetings and phone calls to more innovative
processes such as advisory panels or multi-stakeholder forums. Various examples
are cited in Volume 1 to this manual, the Guide to Practitioners’ Perspectives.
Th ere is also a large amount of guidance on how to carry out diff erent kinds of
engagement processes, some coming from the fi eld of corporate stakeholder
engagement, but also more broadly from the fi eld of public participation. The
most common approaches are outlined briefl y in this chapter.
Th e question is often not just one of choosing a fair and eff ective technique for
dialogue but can extend to designing governance structures and decision making
processes as engagement deepens into active partnerships. Th e key is to choose
the right technique or governance structure for the job: this depends on your
objectives and your stakeholders’ needs.
Engage with your stakeholders in ways that work
THE PRACTITIONER’S HANDBOOK ON STAKEHOLDER ENGAGEMENT | 93
Engage with your stakeholders in ways that work
PRINCIPLES
Th e principles of materiality, completeness and responsiveness provide
guidance in ensuring that stakeholder engagement supports the goal of
organisational accountability. Th is Stage contributes to the delivery of all
three principles.
‘Inclusivity’
Principles
“Considering the stakeholders’ interests in organisational decision making’”
Here that means: The company designs and carries out engagement processes which verify
and address the stakeholder material expectations and concerns, integrate these processes into
core management processes and allow their stakeholders’ concerns, perceptions and
viewpoints to be expressed and recorded fully and accurately. Finally, the engagement
processes need to enable the company to provide a coherent response to stakeholders’
expectations and concerns.
Materiality Completeness Responsiveness
PROCESS
Th e actions and tools outlined in this Stage help you to decide what engagement
processes you can use to meet the practical and strategic needs of both your
organisation and those of your stakeholders. It then guides you through the
particular design decisions concerning issues such as timing, pre-information,
the use of external facilitators and setting ground rules that you will need to
address in setting up the engagement process. Finally, it provides some generic
tips for the actual engagement itself.
Philips China Employee Survey
Following a survey of employees in 2003 at the Dutch electronics company Philips’ China operations, the results have been used to
shape a long-term people strategy and engagement process, incorporating various engagement methods. Some elements of this are
described below:
• Talent management and career development: TOTAL (Talent of Tomorrow Advanced Learning) focuses on high potentials.
• Human resources practices: Programs include the formation of a China HR Council and a Policy Review Board (PRB). Comprised of
HR leaders from the product divisions, the PRB reviews policies quarterly.
• New hire orientation: China was a pilot site for the global Philips In-Touch program for new hire orientation. Plus a new extensive
talent induction process.
• Informing and involving employees: Initiatives include monthly information sessions led by senior management for all employees, as
well as large town hall meetings and smaller product division or function specifi c town halls. Plans for 2005 include a new employee
recognition program.
• Management behavior: The results of the survey have also been used to identify the tools that the business’ China leaders require to
create an engaged workforce.