Post by account_disabled on Feb 14, 2024 2:41:46 GMT -5
In today's hyperconnected, social media-dominated world, stakeholders of all types can have a significant impact on the success of your business. A tweet from a dissatisfied employee, a photo of problematic working conditions, or a social media campaign from an advocacy group can go viral overnight. In the current context, stakeholders represent a risk that must be managed more proactively and authentically than in the past. However, they also represent an opportunity to improve credibility, reputation, reach, strategic planning and competitive advantage, as well as to build coalitions to address challenges in sustainability strategy, according to Green Biz . What is a sustainability strategy? Before continuing, it is important to note that sustainability strategy refers to the approach and set of planned actions that a company adopts to integrate sustainable practices in all areas of its operation. This strategy aims to achieve a balance between economic growth, social consideration and care for the environment. In other words, it seeks to ensure that the company operates in a way that generates long-term benefits both for itself and for society and the environment. What are stakeholders and their importance? Stakeholders or interested parties are understood as those parties that have an interest in the company and can affect or be affected by the business itself. The main stakeholders in a common company are its investors, collaborators, clients and suppliers. However, with increasing attention to Corporate Social Responsibility (CSR), the concept has expanded to include communities, governments, and business associations.
This change reflects a more complete understanding of the interconnection between companies and their environment, especially in the context of sustainability. To successfully implement their sustainability goals, companies must map and evaluate the importance and influence of their stakeholder groups . This process involves understanding what matters to them through the lens of environmental, social and governance ( ESG ) criteria and Argentina Phone Number List determining how to engage with them on relevant sustainability issues. Identify the types of stakeholders The importance of a stakeholder differs from its influence; A group of stakeholders can be crucial to business success but not necessarily influential individually. For example, tomato farmers for a ketchup company are necessary (and therefore important) to produce ketchup, but are not individually influential, while the retail customer selling the ketchup will be highly influential. The opinions of internal stakeholders are also important and should be evaluated separately from the opinions of external stakeholders , which is reflected on two different axes in a materiality matrix. The specific types of stakeholders vary by industry and company, but there are general categories relevant to most such as those mentioned below… 10 Types of key stakeholders in the sustainability strategy Employees: While companies claim that the opinions of their employees are important, some (such as the organization's leadership) are often considered more important than others (factory or warehouse workers). In addition to including rank-and-file workers, companies must expand their reach to a diverse group of employees to ensure the inclusion of conflicting opinions. Investors/Shareholders: For public and private companies, investors are an important part.
It is crucial to differentiate between types of investors. Institutional investors such as pension funds have a longer-term outlook than hedge funds. Investors with a focus on ESG or impact will have different concerns than short-term corporate raiders looking to get the company to cut costs. Customers: Just as a company segments its customers to improve service, it must also segment and understand its customers based on ESG considerations. B2B companies must understand their customers' sustainability commitments. A company can create a competitive advantage by offering products and services that help customers meet their sustainability commitments and reduce their own risk. Suppliers: Conventional supply chain relationships tend to be transactional and seek to optimize financial performance by reducing redundancies and inventory. As companies become increasingly responsible for ESG issues in their supply chain, they need to deepen their understanding of the ESG risks relevant to their suppliers and collaborate to address the most critical issues. This may include careful collaboration between competitors sourcing supplies from the same supplier. Sellers: Suppliers of non-supply chain products, such as office supplies or electronics, can be important sources of ESG challenges and opportunities, as well as partners in addressing them. Vendors can be part of a company's diversity commitment or provide energy-efficient products. Competitors: ESG issues in your sector will affect your competitors. Understanding shared challenges and opportunities can create the opportunity to collaborate on problems larger than one company can handle alone, through precompetitive collaboration. Industry Associations: Many industry associations are addressing ESG issues in their sector by issuing research reports, supporting collaborations, and creating sustainability standards. They often establish committees of sustainability leaders from their members, a useful group for engagement. stakeholders in the sustainability strategy Civil Society: Civil society is a large, diverse and important group, where segmentation and commitment will be key for global and regional brands.
This change reflects a more complete understanding of the interconnection between companies and their environment, especially in the context of sustainability. To successfully implement their sustainability goals, companies must map and evaluate the importance and influence of their stakeholder groups . This process involves understanding what matters to them through the lens of environmental, social and governance ( ESG ) criteria and Argentina Phone Number List determining how to engage with them on relevant sustainability issues. Identify the types of stakeholders The importance of a stakeholder differs from its influence; A group of stakeholders can be crucial to business success but not necessarily influential individually. For example, tomato farmers for a ketchup company are necessary (and therefore important) to produce ketchup, but are not individually influential, while the retail customer selling the ketchup will be highly influential. The opinions of internal stakeholders are also important and should be evaluated separately from the opinions of external stakeholders , which is reflected on two different axes in a materiality matrix. The specific types of stakeholders vary by industry and company, but there are general categories relevant to most such as those mentioned below… 10 Types of key stakeholders in the sustainability strategy Employees: While companies claim that the opinions of their employees are important, some (such as the organization's leadership) are often considered more important than others (factory or warehouse workers). In addition to including rank-and-file workers, companies must expand their reach to a diverse group of employees to ensure the inclusion of conflicting opinions. Investors/Shareholders: For public and private companies, investors are an important part.
It is crucial to differentiate between types of investors. Institutional investors such as pension funds have a longer-term outlook than hedge funds. Investors with a focus on ESG or impact will have different concerns than short-term corporate raiders looking to get the company to cut costs. Customers: Just as a company segments its customers to improve service, it must also segment and understand its customers based on ESG considerations. B2B companies must understand their customers' sustainability commitments. A company can create a competitive advantage by offering products and services that help customers meet their sustainability commitments and reduce their own risk. Suppliers: Conventional supply chain relationships tend to be transactional and seek to optimize financial performance by reducing redundancies and inventory. As companies become increasingly responsible for ESG issues in their supply chain, they need to deepen their understanding of the ESG risks relevant to their suppliers and collaborate to address the most critical issues. This may include careful collaboration between competitors sourcing supplies from the same supplier. Sellers: Suppliers of non-supply chain products, such as office supplies or electronics, can be important sources of ESG challenges and opportunities, as well as partners in addressing them. Vendors can be part of a company's diversity commitment or provide energy-efficient products. Competitors: ESG issues in your sector will affect your competitors. Understanding shared challenges and opportunities can create the opportunity to collaborate on problems larger than one company can handle alone, through precompetitive collaboration. Industry Associations: Many industry associations are addressing ESG issues in their sector by issuing research reports, supporting collaborations, and creating sustainability standards. They often establish committees of sustainability leaders from their members, a useful group for engagement. stakeholders in the sustainability strategy Civil Society: Civil society is a large, diverse and important group, where segmentation and commitment will be key for global and regional brands.