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Engaging effectively with key people and organisations

There is a lot of guidance and expertise available to help companies implement respect for human rights. But there is no single blueprint, so each company has to develop its own approach, based on authoritative international standards. And the company needs to continuously review and adapt its approach to reflect changes in its human rights risks, operating environment and business.

To do this well, companies need to engage effectively with relevant people and organisations within the business and beyond. This process of engaging with stakeholders is key to identifying and understanding human rights risks, testing and getting feedback on actions the company is taking, and remedying impacts when they occur.

Stakeholder engagement can be hard. It requires time, openness and trust-building – often with stakeholders who may be critical of the company. But it is key to respecting human rights. Done well, good stakeholder engagement will help strengthen a company’s efforts to know what its human rights risks are – and to show that it is taking effective steps to manage them.


WHY AND HOW DOES TRAFIGURA ENGAGE WITH STAKEHOLDERS?
HOW SYNGENTA ENGAGES WITH KEY STAKEHOLDERS

What does stakeholder engagement look like in practice?

There are many ways a company can engage with stakeholders.

Ways to get information about human rights risks and impacts include:

  • Work with relevant colleagues across the business to map potential risks and explore how to assess and respond to adverse impacts.
  • Engage with potentially affected people – including local communities – when working to identify impacts.
  • Participate in industry and multistakeholder groups to exchange information about complex challenges.

Ways to share and get feedback on a company’s approach to managing human rights risks include:

  • Establish a stakeholder advisory panel comprising representatives of diverse groups to provide feedback at regular intervals.
  • Reach out to external experts to test thinking and proposed actions.
  • Engage with government bodies, investors, civil society representatives and others to understand expectations and share progress.   

Ways to remediate impacts and deal with grievances include:

  • Engage with potentially affected groups and experts to strengthen the design and implementation of grievance processes.
  • Establish a forum for ongoing dialogue with local communities, such as BASF’s Community Advisory Panels.
  • Work with human rights defenders to ensure affected people know about the company’s grievance processes.

What do the UN Guiding Principles say about engaging stakeholders?

The UN Guiding Principles on Business and Human Rights, or UNGPs, expect companies to take active steps to engage with stakeholders as they work to implement respect for human rights.

  • Processes to identify and assess adverse human rights impacts should involve meaningful consultation with potentially affected groups and other relevant stakeholders, taking into account language and other potential barriers to effective engagement.
  • Companies should pay special attention to groups or individuals at heightened risk of vulnerability or marginalisation, and be aware that different risks may be faced by women and men.
  • Where direct consultation is not possible, companies should consider reasonable alternatives, such as consulting credible independent experts like human rights defenders.
  • Operational-level grievance mechanisms should be based on engagement and dialogue, consulting the stakeholder groups for whose use they are intended on design and performance.

See Guiding Principles 18 – 20, 29 and 31 for more.


Insights from business practice

  • Good stakeholder engagement is key to respecting human rights

    Good stakeholder engagement is the cornerstone of corporate respect for human rights.

    It is key to understanding your company’s human rights risks and the situation ‘on the ground’. It is also key to showing how your company is managing its human rights risks – and testing whether steps being taken are achieving positive outcomes.

  • Know which stakeholders the company should engage with – and when to do so

    It’s important to engage with the right people at the right time.

    Relevant stakeholders may include your colleagues across the business, customers, suppliers and other business partners, potentially affected people (and/or their legitimate representatives), governments, investors, civil society organisations, trade unions, human rights defenders, industry peers, academics and consumers. By engaging with a broad range of stakeholders – ideally early and in an ongoing manner – you can draw on their diverse perspectives, insights, capabilities and networks to strengthen your efforts to address human rights issues and problems.

    Some of these conversations may be difficult, particularly when stakeholders have critical views or ask challenging questions. But these conversations present an opportunity to learn more about the experiences of particular groups or individuals, and to build trust and credibility. If you’re not having uncomfortable conversations, you may not be talking to the right people.

  • Be attentive to the design of an engagement

    Know what you want to achieve when undertaking a specific stakeholder engagement on human rights issues, and design the engagement with that outcome in mind. 

    Before the engagement, get the right people involved, ensure you understand the issues for discussion and get familiar with the level/nature of experience the participants will bring. Be intentional about the design of the engagement and think about the best way to get meaninful input from participants. If your purpose is to share information, presentations may be appropriate. But if you want to generate input and ideas, other approaches may work better. In some situations, it may be helpful to share brief preparatory materials in advance and/or ask some participants to pre-prepare for particular discussions.

    During the engagement, ensure that everyone understands the purpose and objective of the discussion. Set the right tone and be clear about any parameters for discussion (e.g. whether the discussion is being held under the Chatham House Rule). Be disciplined to keep the discussion on track, but also flexible; if the conversation is taking longer than anticipated but yielding rich insights, it may be more valuable to go with the flow and make up the time later.

    After the engagement, communicate clearly with participants about next steps. Consider sharing how insights gained through the engagement are informing thinking and action within the company. 

  • Find effective ways to get meaningful input from diverse stakeholders

    Some stakeholders are easier to engage with and hear from than others. It’s important to ensure that your approach to these individuals or groups will elicit the information or feedback you are seeking.

    For example, many companies find it difficult to engage directly with workers across their value chain. Traditional ways range from town hall-style meetings and sessions with select groups of people who represent a workforce, through to tried and tested online internal communications. New technologies, such as worker voice apps, can help here. However, these need to be used in smart ways, and it’s important to be mindful of their limitations. In some situations, it may be more effective to conduct an in-person deep dive with a small group of stakeholders than to collect less detailed responses from a larger group.

    Further, when engaging with groups – such as workers or local communities – be mindful of cultural differences, power dynamics within the group, and language barriers. Workers may feel uncomfortable speaking openly in front of their employers. In local communities, it will be important to ensure that the voices of women, children, the elderly and members of marginalised or vulnerable groups are heard. Where it is necessary to speak to representatives of a group, ensure they are legitimate and speak for the whole group.

    For more, see: Multistakeholder collaboration

  • Consider formalising a stakeholder engagement panel

    Some companies gain significant value from a formalised stakeholder engagement panel.

    Stakeholder engagement panels can take many forms. One approach is to establish a group comprising representatives of diverse relevant organisations that meets under the Chatham House Rule twice a year to engage with the CEO, members of the Board, and relevant management teams within the business. Some companies find it helpful to design the forum in a way that enables both the company and its stakeholders to bring agenda items, enabling two-way design of meetings.

    Practitioners observe that it is critical to find the right people for the stakeholder engagement panel. Ideally, participants will have experience, expertise and the emotional intelligence to influence the company in constructive ways. Setting up that culture is key to ensuring the group operates as a critical but effective resource for the company.

    Some companies that have established an effective stakeholder engagement panel observe that the benefits outweigh the risks. However, it is important that the company management perceives the inherent value of the group. An engagement panel may involve costs (travel, executive time etc.) and listening to criticism, so executive buy-in to the idea is crucial.

  • Don’t overlook internal stakeholders – such as key colleagues and senior leaders

    Internal stakeholders can provide valuable expertise, and can also be key to implementing human rights policies and processes across the business.

    For example, strong buy-in and commitment from senior business leaders is needed to ensure a robust mandate for human rights work. Colleagues with relevant expertise – for example, in business units or divisions, in legal, human resources, community liaison or procurement roles – can help ensure policies, processes and other activities will be effective in daily operations. And these (and other) colleagues will also have a role in ensuring policies and processes are fully implemented across the business, and may take increasing ownership of this work over time.

    Be strategic when deciding who to engage with – and on what. It may take time to find the right people. Think about who has relevant expertise, who will have a role in implementation – and also who could be an ally or strong voice to increase your traction in key parts of the business. Then think carefully about the best way to engage with colleagues. Remember that influencing is also about educating and supporting, and you may need to begin with awareness raising and capacity-building conversations. Real examples, clear ‘asks’ and concrete tools can be key to effective internal engagement. Practitioners observe that colleagues are often interested in supporting human rights work, but may be unsure how they can help and what they need to do.

    Finally, persevere. As with most stakeholder relationships, your engagement with colleagues and senior leaders will ideally be long-term. Your impact may be less if you make one strong effort then move on to other things. Build ongoing relationships and check in regularly on progress and to offer support.


Looking forward: Strengthening the involvement of key stakeholders

We see a number of opportunities to enhance companies’ efforts to build strong relationships with key stakeholders. These include:

  1. Protecting the safe space for companies to share openly: Regulatory tools are increasingly being used to encourage companies to manage their human rights issues – and are changing the legal risks faced by companies that cannot demonstrate that they are doing this effectively. This is valid and, if designed well, such tools can be helpful to companies serious about respecting human rights. However, they can also have a chilling effect on companies’ willingness to share experiences with others, particularly about approaches that haven’t worked or problems that haven’t been solved. It’s important that we find ways to maintain a safe space for companies to share experiences.

  2. Boosting cross-stakeholder familiarity and trust: Good stakeholder engagement requires cooperation between individuals and groups in situations where their organisations, approach and thinking may differ greatly. This diversity often means that strategies to build familiarity and trust will be needed. Much progress has been made to begin to break down barriers between different stakeholder groups in recent years. We need to continue efforts to share insights about how to do this effectively.

  3. Building stakeholders' familiarity with what 'good' looks like: Companies engage with many diverse stakeholder groups in relation to their efforts to manage human rights challenges. Increasingly, many of these will have some familiarity with the corporate responsibility to respect human rights and key standards such as the UNGPs. However, some stakeholders have little visibility of what implementing respect for human rights looks like in practice within a company - or a sense of what constitutes leading, or even good, practice. Initiatives to drive reporting and transparency are helpful, but more is needed to improve stakeholders' visibility of company practices.