Position Paper #2
Stakeholder engagement – getting critical insights to focus on what matters In an age where everything and everyone is linked through networks of glass and air, no one - no business, organisation, government agency, country - is an island. We need to do right by all our stakeholders, and that’s how you create value for shareholders. And one thing is for sure - no organisation can succeed in a world that is failing. Don Tapscott
In short To safeguard their social licence to operate, organisations must develop long-lasting relationships and cultivate trust. Without it, the cost of doing business and the ability to sustain operations might be severely impacted. This is especially relevant in a country like Myanmar, where there is a low level of general trust in society: according to a report published in 2020, 75% of interviewees indicated that they did not trust people. As trust is essential for banks, engaging with stakeholders effectively is critical for their business. To operate, banks should earn and nurture the trust of their depositors to f inance projects and enable societal goals. Furthermore, banks committed to upholding the UNEP-FI Principles of Responsible Banking must proactively engage with their stakeholders (principle 4) and act transparently while remaining accountable (principle 6). Effective and conducive stakeholder engagement requires the mapping and prioritising of various groups of stakeholders, such as staff, customers, regulators, suppliers, partners, civil society organisations, etc. Sound stakeholder engagement should be (i) inclusive of all stakeholders, (ii) designed to identify issues that matter not only for the business but for stakeholders as well, (iii) structured to enable responsiveness and accountability, and (iv) fully integrated into the strategy and purpose of the company. This is a critical component in developing and implementing an ESG roadmap that will support business sustainability. Ultimately, good stakeholder engagement is good (for) business.
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