Proactive approaches to stakeholder engagement

Abstract

PURPOSE: Effective engagement is a two-way process where stakeholders are not merely consulted or listened to, but where a company makes a sincere attempt to engage in a dialogue to respond to stakeholder concerns (Rossouw, 2015; Aina, 2019:60). Responding to stakeholder concerns builds trust, and experience shows that trust and relationships take time to build but are valuable assets. To build trust, the company must show that it has listened and acted in response to stakeholder concerns. This is why ongoing communication with, and reporting to, stakeholders is such an important component in any engagement strategy. The purpose of the study was to ascertain the various approaches to stakeholders’ engagement.

METHODOLOGY: In terms of data collection, the author sourced and reviewed literature on the topic. Among others, these sources included journal articles, books, magazines, newspapers and King IV report.

FINDINGS: The results indicated that companies use different approaches on stakeholders and engagement and the study concludes that inclusivity approach adopted in the King IV report is instrumental in developing engagements that are collaborate and may build sustainable relationships with stakeholders.

ORIGINALITY/VALUE: Proactive continuous engagement with stakeholders brings mutual trust and builds sustainable relationships.