Stakeholder engagement – guidance for companies published
The Investment Association and ICSA have published guidance to help companies think about how to strengthen the stakeholder voice when making strategic board decisions.
The guidance aims to take boards through the different elements involved in understanding and assessing the impact on key stakeholders. It deals with:
- directors’ duties;
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stakeholder identification;
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board composition;
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directors’ induction and training;
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how the board can ensure it takes account of the impact on stakeholders in its discussions;
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the mechanics of engagement; and
- reporting and feedback.
As each company will have a different list of key stakeholders, depending on its size, location and activities, the guidance provides core principles rather than a list of approaches to be considered. The guidance also contains illustrative examples of how some companies tackle these issues.
The guidance will be updated, if necessary, to reflect further reforms which the Government intends should come into effect by June 2018. In any event, it will be reviewed in the second half of 2019 in the light of how companies apply the guidance.
The guidance is available here.