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Engaging Stakeholders for Sustainable Development

Article · January 2016

DOI: 10.1007/978-3-319-26734-0_21

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Engaging Stakeholders for Sustainable
Development
Walter Leal Filho and Luciana Brandli

Abstract
The engagement of various stakeholders is essential in order to cater for the
implementation of sustainable development. This paper discusses the extent to
which such an engagement takes places, draws some parallel between
universities and companies, and outlines some of the limitations which prevent
it from being more widely practiced.

Keywords
Sustainable development
Stakeholders
Integration
Committment

1 Introduction

The complexity, deepness and versatility of the topic ‘Sustainable Development’

entails the involvement of a large variety of interest groups. The importance of their
participation in environmental decisions was raised in the 1992 at the UN Con-
ference on Environment and Development, in Rio, and later stated officially, both in
Principle 10 of the Rio Declaration and Agenda 21 (Chartered Institution of Water
and Environmental Management 2006).

W. Leal Filho (&)

Faculty of Life Sciences, Hamburg University of Applied Sciences, Ulmenliet 20,
21033 Hamburg, Germany
e-mail: walter.leal@haw-hamburg.de
L. Brandli
Faculty of Engineering and Architecture, University of Passo Fundo, Campus 1,
Bairro São José, Caixa Postal 611–CEP, 99001-970 Passo Fundo/RS, Brazil
e-mail: brandli@upf.br

© Springer International Publishing Switzerland 2016 335

W. Leal Filho and L. Brandli (eds.), Engaging Stakeholders
in Education for Sustainable Development at University Level,
World Sustainability Series, DOI 10.1007/978-3-319-26734-0_21
336 W. Leal Filho and L. Brandli

Today, the actuality of sustainable development issues asks business one the on
hand, but higher education institutions on the other, to take co-responsibility on the
topic (Cuginotti 2009). Therefore, organisations are required or even enforced to
examine their business practices and determine their long-term social and envi-
ronmental impacts, as well to innovate the business models, products and services
in an attempt to find sustainable solutions for the problems they may cause (Rhodes
et al. 2014).
One of the approaches applied in related decision-making processes is the col-
laboration with stakeholders, i.e. those who have an interest in a particular decision
or course of action, either as individuals or as representatives of a group (Hemmati
2002). This includes any group or anyone who can be affected or is affected by the
achievement of the organization’s objectives (Freeman 2010). Among the groups of
stakeholders, one may mention universities on the one hand, and financial insti-
tutions (e.g. banks, shareholders) government (e.g. regulators, local government),
business (e.g. employees, customers) and/or other groups (e.g. communities,
NGOs) (SustainAbility 2007) on the other.
Complex operating environments and a variety of sustainability issues require
higher education institutions and companies as well, to consider the relationship
with their stakeholders at the strategic level (Cuginotti 2009), since they have the
ability to influence the success or failure of their operations (SustainAbility 2007).
Knowledge sourced from such collaboration affects the sustainable innovation
orientation that may contribute to sustainable development (Ayuso et al. 2011;
Rhodes et al. 2014). Furthermore, stakeholder involvement in environmental
decision-making improves the quality of decisions (Beierle 2002). Therefore, both
universities and companies see it as necessary to engage their respective stake-
holders, in their activities.
The engagement process is the process of exchanging information, listening to
and learning from stakeholders (SustainAbility 2007). The overall purpose of
stakeholder engagement is to drive the strategic direction and operational excel-
lence for organisations, and to contribute to the kind of sustainable development
from which organisations, their stakeholders and wider society can benefit from
(Unerman et al. 2010).
Among the benefits of stakeholder engagement, most experts name the
following:
• it leads to more effective work and production of better results by
decision-makers;
• it can improve the likelihood of equity in decision-making and provide solutions
for conflict situations;
• it allows the ideas to be tried, tested and refined before adoption (Conde et al.
2004).
By engaging stakeholders on sustainability issues for instance, universities may
get an opportunity to better understand the market condition, promote their repu-
tation, build trust and long-term collaborative relationships, as well as better
understand and mitigate the threats and uncertainties related to the business (Bal
Engaging Stakeholders for Sustainable Development 337

et al. 2013). In addition, stakeholder engagement can be seen as a social learning

process, where diverse stakeholders share a common forum, learn about each
other’s values, reflect upon their own values and create a shared vision and
objectives (Mathura et al. 2008).
Successful and effective stakeholder engagement requires among others listen-
ing, openness, dialogue, resources, integration and collaboration, leadership com-
mitment, understanding of needs, systemic thinking, capability to deal with
environment and market volatility and ambiguity (Rhodes et al. 2014).
However, despite the aforementioned benefits, the engagement of stakeholder
has limitations and failings as well.

2 Problems in Engaging Stakeholders for Sustainable

Development

The problems and challenges of achieving successful and effective stakeholder

engagement are caused by many factors. The risk of failing to engage stakeholders
in a timely and strategic manner is relatively high (SustainAbility 2007). Among the
problems associated with the successful implementation of the approach, mention
can be made to:
(a) Lack of an unified scheme
Despite a great number of existing methods of stakeholder engagement, there is no
single formula for success. The methods vary from quite passive interactions, where
the stakeholders provide information, to “self-mobilisation”, where the stakeholders
themselves initiate and design the process (Conde et al. 2004).

(b) Conflict of interests

An enormous variety of interest groups undoubtedly leads to the collision of
interests resulted in different priorities and conflicts that might dramatically increase
the complexity of a situation (Karlsen et al. 2008). To encourage positive stake-
holders behaviour, both universities and companies should provide them with a
better way to advance their interests, i.e. to consider their opinion in defining
solutions (National Round Table on the Environment and the Economy & Public
Policy Forum 2010). In addition, the engagement process should be designed in the
way to encourage stakeholders to stop competing and start collaborating. However,
it is important to note that such processes not always succeed because of possible
irreconcilable differences, situation when consensus cannot be achieved (National
Round Table on the Environment and the Economy & Public Policy Forum 2010).
For example, the municipal experience of community engagement in planning
and urban development decisions in the City of Guelph (Ontario, Canada) has
demonstrated that even well-managed and extensive community engagement efforts
do not necessarily guarantee easy implementation. While most of participants
accepted proposed decisions on this example, there are those who do not, despite
338 W. Leal Filho and L. Brandli

being consulted (National Round Table on the Environment and the Economy &
Public Policy Forum 2010).
Some of the experts see multi-stakeholder engagement at the global level as
problematic since voluntary public-private governance arrangement might privilege
more powerful actors e.g. “big business” and consolidate the privatization of
governance. Some argue that partnerships lack accountability and democratic
legitimacy (Biermann et al. 2007).

(c) Lack of capacities/Insufficient capabilities

Shifting from traditional forms of stakeholder management to proactive forms of
stakeholder engagement requires a new capacity of resources (Rhodes et al. 2014).
Organisations are required to communicate, negotiate, contract, and manage rela-
tionships with stakeholders and motivate them to behave in ways that are beneficial
to all parties (Harrison and John 1996).
Specific skills, training, knowledge, and particular behaviour of people in all
parts of an organisation are required to get best results from stakeholder engage-
ment initiatives (Rhodes et al. 2014; Chartered Institution of Water and Environ-
mental Management 2006).
Many companies and many institutions of higher education, tend to lack strategy
of stakeholder engagement (Kuenkel 2013), since they do not always consider these
processes as part of daily operations in their core business. On the other hand, the
credibility of the participation of stakeholders might also be questioned on the basis
of insufficient expertise of many of them to be meaningfully engaged in, for
example, in highly technical debates (Reed 2008).
(d) Too many different stakeholders
Another problem of stakeholder engagement faced by businesses and universities as
well, is a variety and quantity of interest groups. It becomes very challenging to
identify and prioritize all possible stakeholders (e.g. from most to least
important/crucial). Many companies suffer from a lack of focus when engaging
stakeholders, failing to define their goals, reasons and purposes (Kuenkel 2013).
For example, to achieve sustainability-related targets in construction projects,
experts confront many diverse stakeholders, some of which are generally recog-
nized as important, yet others, who not always perceived as such, but whose
absence from the decision-making processes may result in a failure to address
sustainability issues (Bal et al. 2013).

(e) Later stage of stakeholder engagement

To achieve successful and effective stakeholder engagement, the interest
groups/individuals should be engaged at the first stages of a project or
decision-making process. Problems are far more likely to occur when people are
engaged later in a process, when they start raising objections to what is being
proposed or starting to be implemented (Chartered Institution of Water and Envi-
ronmental Management 2006).
Engaging Stakeholders for Sustainable Development 339

(f) Stakeholder fatigue and cynicism

A growing number of issues/projects asking for stakeholders participation may lead
to stakeholder fatigue, especially, when these processes not run well and stake-
holders perceive that their involvement gains them little reward or capacity to
influence decisions that affect them (Reed 2008). Moreover, the resulting cynicism
can lead to declining levels of engagement and put the credibility of participation at
risk (Reed 2008). One of the ways to prevent fatigue is to demonstrate stakeholders
that their participation is worthwhile (Chartered Institution of Water and Envi-
ronmental Management 2006).

(g) Risks for government

Today a large number of issues related in one or another way to sustainable
development, are considered to be sensitive, highly politicized and found under
permanent public disclosure, with every move of government under intense scrutiny
from stakeholders on all sides. Therefore, initiation of collaborative or consultative
processes is sometimes criticised as shifting responsibility about one issue, even
when the opposite is true. At the same time, there is always a risk that stakeholders
are also not willing to take on responsibility (National Round Table on the Envi-
ronment and the Economy & Public Policy Forum 2010).

(h) Barriers in a direct dialogue and engagement with some stakeholders

Among the main stakeholders on the sustainable development debate are the future
generations. Thus, organisations/companies do not have any real possibility to
engage stakeholders from future generations in dialogues regarding activities/
processes that currently taking place and have long-term impacts on nature and
society, and by which these stakeholders might be affected in the future. It cannot be
denied that there are groups of contemporary stakeholders e.g. NGOs or university
students, that might position themselves as representatives of specific interests of
future generations, but there is a high probability that future generations might judge
their interest differently (Unerman and O’Dwyer 2006). Similar issues arise regarding
other groups of stakeholders, who are less able to articulate their own concerns and
interests (for example, infants or the mentally impaired) (Unerman et al. 2010).

3 Conclusions

Despite the wide range of challenges and limitation associated with the stakeholder
engagement approach, the well-managed process might decrease negative envi-
ronmental impacts and increase the economic sustainability of an enterprise of
higher education institution (Bal et al. 2013).
Stakeholders can be engaged in many different ways, which goes from infor-
mation sharing to participation in decision-making, following one of five engage-
ment levels: inform, consult, involve, collaborate and empower (Pellicano et al.
340 W. Leal Filho and L. Brandli

2014). In addition, stakeholders could be identified by one of the following

dimensions:
• by responsibility: people to whom an organisation has, or might have, legal,
financial and operational responsibilities;
• by influence: people who are, or might be, able to influence the ability of a
company/organisation to meet its goals;
• by proximity: people that a company/organisation interacts with most, or has
longstanding relationships;
• by dependency: people that are most dependent on a company/organisation (e.g.
employees, customers);
• by representation: e.g. heads of a local community, trade union representatives,
councillors, representatives of membership based organisations, and etc. (Krick
et al. 2005).
To achieve successful stakeholder engagement, universities and companies
could follow such steps as identifying all key stakeholders, relating the stakeholders
to different sustainability-related targets, prioritizing the stakeholders, managing
stakeholders, measuring their performance and putting targets into actions (Bal
et al. 2013).
Moreover to avoid ambiguity in the engagement process it is suggested to clarify
activities that lead to frustrated expectations and disappointed hopes. There are
several areas that must be clear to all participants for well-worked collaboration:
• clarity on goals, scope and context: all participants should understand the
broader context of sustainable development;
• clarity on roles and responsibilities: participants should understand each
other’s capacities to act their responsibilities;
• clarity on timelines: it should be clearly defined how long a process will take
place to avoid participants seeking venues outside the collaborative process to
meet their goals;
• clarity on rules: to avoid misunderstandings and disagreements, which
undermine trust and prevent progress (National Round Table on the Environ-
ment and the Economy & Public Policy Forum 2010).
In addition, the process must be designed in a way to ensure that everyone will
have a meaningful voice in designing a strategy, plan or policy. Thus each stake-
holder will feel confident that his/her interests will be considered and addressed
(National Round Table on the Environment and the Economy & Public Policy
Forum 2010).
Nevertheless, despite a number limitations, claims and uncertainties regarding the
stakeholder engagement approach, its successful implementation helps universities
and companies to bring about systemic change towards sustainable development
(Krick et al. 2005) together with significant environmental and business benefits, and
creation of a model that other organisations could follow, or that could be followed
by government (Glasbergen 2011). At the global level multi-stakeholder partner-
ships are considered as a solution to deadlocked intergovernmental negotiations,
Engaging Stakeholders for Sustainable Development 341

ineffective treaties and many other real or perceived current problems (Biermann
et al. 2007), therefore stakeholder engagement should be taken as a core element of
any “sustainable development” plan (Bal et al. 2013).

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Author Biographies

Professor Walter Leal teaches at the Hamburg University of Applied Sciences (Germany) and
Manchester Metropolitan University (UK). He is the founding editor of the International Journal of
Sustainability in Higher Education the world’s leading scientific periodical on sustainability at
universities- is Editor-in-Chief of the book series Environmental Education, Communication and
Sustainable Development (Peter Lang Scientific Publishers) and World Sustainability Series
(Springer), and has over 300 publications to his credit.

Luciana Londero Brandli is Professor in the University of Passo Fundo, Brazil. Her current
research interests include sustainability in higher education and green campus, environment
management, management of urban infrastructure, sustainable cities and green buildings. She
supervises a number of Masters students on engineering, environment and sustainability issues,
and has over than 100 publications.

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