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Stakeholder Analysis

Jakarta, 3 February 2020

Adi Prasetijo Ph.D

International Standard

ISO 26000 IFC Performance

(Involuntary ) Standard

AA 1000
(involuntary)

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What is a Stakeholder ?
Who has the right referred to as stakeholders ?
What conditions a person/group referred to as stakeholders ?

Social Risk = [Threat (Stakeholder+Issue)] X [Vulnerability]

In analyzing potential conflicts, it is important to know & understand the character of

stakeholders and issues (social problems)

The most realistic approach is the stakeholder engagement approach.

Why ?

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STAKEHOLDER

• “groups and individuals who can affect or are affected by, the achievement
of an organization’s mission“(Freeman (1984)
• Stakeholders, acting either formally or informally, individually or
collectively, are a key element in the firm’s external environment that can
positively or negatively affect the organization (Murray and Vogel 1997)

Stakeholders are..
all people whose interests
are affected by a system (project, etc.)
as well as those whose activities
significantly affect the system.

Relevant stakeholders are those individuals, groups

of individuals or organizations that affect and/or
could be affected by an organization's activities,
products or services and associated performance
with regard to the issues to be addressed by the
engagement. An organization may have many
stakeholders, each with distinct attributes and often
with diverse and sometimes conflicting interests and
concerns
(AA1000 Stakeholder Engagement
Standard 2011, Accountability)

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• Stakeholder groups “external” to the core operation of the

business, such as affected communities, local government
authorities, non-governmental and other civil society
organizations, local institutions and other interested or
affected parties.
• We have not addressed engagement with suppliers,
contractors, distributors, or customers, because interaction
with these parties is a core business function for most
companies and subject to national regulations and/or
established corporate policies and procedures.

(IFC : Stakeholder Engagement: A Good Practice Handbook for

Companies Doing Business in Emerging Markets, 2007)

ISO 26000

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ISO 26000 on Social Responsibility

Social Responsibility
Responsibility of an organization for the impacts of its decisions and activities
on society and the environment, through transparent and ethical behavior that
• contributes to sustainable development, including health and the welfare of
society;
• takes into account the expectations of stakeholders;
• is in compliance with applicable law and consistent with international norms
of behaviour; and
• is integrated throughout the organization.
Note :
• Activities include products, services, and processes.
• Relationships refer to an organization’s activities within its sphere of influence

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ISO 26000 on Social Responsibility

Principles

General law or rule adopted or professed as a basis for conduct or practice that
should animate or inform an organization’s decision-making and conduct.

The principles
• Accountability
• Transparency
• Ethical behaviour
• Respect for stakeholder interests
• Respect for the rule of law
• Respect for international norms of behaviour
• Respect for human rights

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IFC Performance Standard

• International Finance Corporation (IFC) applies the Performance

Standards to manage social and environmental risks and impacts and
to enhance development opportunities in its private sector financing
in its member countries eligible for financing

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• Performance Standard 1: Social and Environmental Assessment and

Management System
• Performance Standard 2: Labor and Working Conditions
• Performance Standard 3: Pollution Prevention and Abatement
• Performance Standard 4: Community Health, Safety and Security
• Performance Standard 5: Land Acquisition and Involuntary
Resettlement
• Performance Standard 6: Biodiversity Conservation and Sustainable
Natural Resource Management
• Performance Standard 7: Indigenous Peoples
• Performance Standard 8: Cultural Heritage

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• PS 1 – Social and Environmental Assessment and Management System

• assessment to identify the social and environmental impacts, risks, and opportunities of
projects;
• effective community engagement
• management of social and environmental performance, incl. Stakeholder engagement
• PS 5 – Land Acquisition and Involuntary Resettlement
• Social economy baseline
• PS 7 – Indigenous people
• Indigenous people (masyarakat adat)
• PS 8 – Cultural Heritage
• Cagar budaya

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AA 1000
• In the AA1000 Framework Standard published in 1999,
AccountAbility first introduced the principle of inclusivity.
Inclusivity is the participation of stakeholders in developing and
achieving an accountable and strategic response to sustainability.
Stakeholder Engagement is a tool that organizations use to help
them achieve inclusivity.
• AccountAbility is a leading global think tank and consultancy
providing innovative solutions to the most critical challenges in
corporate responsibility and sustainable development.
www.accountability.org

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• The AA1000 Stakeholder Engagement Standard (AA1000SES)

provides a basis for this. It is a generally applicable, open-source
framework for designing, implementing, assessing, and
communicating the quality of stakeholder engagement
• Stakeholder engagement is the process used by an organization to
engage relevant stakeholders for a purpose to achieve accepted
outcomes.

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Benefits of Stakeholder Engagement (AA

1000)
• Lead to more equitable and sustainable social development by giving
those who have a right to be heard the opportunity to be considered
in decision-making processes;
• Enable better management of risk and reputation;
• Allow for the pooling of resources (knowledge, people, money and
technology) to solve problems and reach objectives that cannot be
reached by single organizations;
• Enable understanding of the complex operating environments,
including market developments and cultural dynamics;
• Enable learning from stakeholders, resulting in product and process
improvements;
• Inform, educate and influence stakeholders to improve their
decisions and actions that will have an impact on the organization
and on society; and
• Contribute to the development of trust-based and transparent
stakeholder relationships.

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Quality stakeholder engagement must:

• Be based on a commitment to the AA1000APS principles;

• Clearly define scope;
• Have an agreed decision making process;
• Focus on issues material to the organization and/or its
stakeholders;
• Be integral to organizational governance;
• Be transparent;
• Have a process appropriate to the stakeholders engaged;
• Be timely; and
• Be flexible and responsive.

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Purpose Scope and Stakeholders

based AA 1000
Why
(Purpose)

Stakeholder
Engagement
What Who
(Scope) (Stakeholder)

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The Process
Organisational processes for AA1000SES
Strategy development and
Operational management Commitment
and Integration

Purpose, Scope
and Stakeholders

Outcomes

SE process

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• Profile & map stakeholder

• Determine engagement level &
• Monitor and evaluate the
engagement
method
• Establish & communicate
• Learn and improve
• Follow up on action plan boundaries disclosure
Plan • Draft engagement plan
• Report on engagement
• Establish indicator

Act,
Review, Prepare
Improve

• Invite stakeholders to engage • Mobilize resources

• Brief stakeholders Implement • Build Capacity
• Engage • Identify and prepare for
• Document the engagement and its engagement risks
outputs
• Develop an action plan
• Communicate engagement outputs
and action plan

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Level of engagement Methods of engagement

Consult • Surveys • Workshops

• Focus groups • Online feedback mechanisms
• Meetings with selected • Advisory committees
stakeholder/s • Public meetings
Negotiate • Collective bargaining with workers
through their trade unions
Involve • Multi-stakeholder forums • Participatory decision
• Advisory panels making processes
• Consensus building • Focus groups
processes • On-line feedback schemes
Collaborate • Joint projects
• Joint ventures
• Partnerships
• Multi-stakeholder initiatives
Empower • Integration of stakeholders into
governance, strategy and operations
management

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Stakeholder Analysis

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Stakeholder database (profiling)

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Social Networking analysis

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diskusi

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