RMIT

Classifi
cation:
Stakeholder Truste
d
Engagement
Now that we’ve considered what a stakeholder is, and whether organisations should engage with
them, let’s consider how an organisation might do so.

Building from our previous two guiding questions: Can a river be a stakeholder? And Should an
organisation consider a river as a stakeholder?, I’d like you to consider how an organisation could
engage with a river as a stakeholder? Remember, these guiding questions are designed to help you
to engage critically with the topic – if we start with such a radical concept as rivers as stakeholders,
we necessarily have to question some of the most fundamental underpinning ideas we might have
about stakeholders.

Slide 19

The previous subtopic gives rise to the concept of accountability: if an organisation is responsible to
a particular stakeholder, then how is that responsibility enacted? Does stakeholder engagement
simply mean the provision of information? How can managers know if or how the organisation is
impacting stakeholders, and then once this is established, what can they do to engage? What does
stakeholder engagement mean in terms of accountability?

Slide 20

First let’s look at what accountability means. In a general sense, accountability means “the fact or
condition of being accountable’ responsibility” – but what does it mean to be accountable?

Scobie, Milne and Love define accountability as the “obligation to present an account of and answer
for the execution of responsibilities to those who entrusted those responsibilities”

A slightly older, but more commonly used definition incorporates two important aspects: first,
involves the action itself, whereby the organisation is responsible for the actions it takes. If an
organisation is truly accountable to its stakeholders, then it will consider the interests of its
stakeholders in the decision-making process.

The second aspect of this definition is the duty to provide an account for those actions. Essentially
answering to stakeholders about the actions which have taken place.

In all three of these definitions, the key would is responsibility

Slide 21

Its important to critically engage with stakeholder engagement practices. These practices will change
over time, and between organisations, but to really be able to assess the authenticity or robustness
of such practices, we should begin with the fundamentals. To do so, we’ll take a brief look at one of
the guiding standards, which is AA1000SE. Remember you’ve also taken a look at the GRI
framework, which also guides organisations on how best to engage with stakeholders.

This image is from the Accountability Standard AA1000SE, and it illustrates a range of approaches to
stakeholder engagement, from the bottom left, where stakeholder engagement practices would
entail monitoring stakeholder positions in a passive way, to the top right, where stakeholder
engagement could empower stakeholders, and involve them in decision making. In between these
two ends of the spectrum, are negotiation, consultation type practices. I would say most large

companies sit somewhere between the
consider the Juukan Gorge case, and where
they decided to destroy the Gorge.
with the Traditional Owners to some degree.
RMIT
Classifi
cation: bottom two blue squares. I’d like you to
Truste you think Rio Tinto sat on this graph when
d Remember that they’ve said they consulted

As we read through the guidelines, it becomes apparent that it is within the power of the
organisation to decide which stakeholders to listen to; which of their concerns is valid, and then how
and what to report on.

Consider the concept of accountability. As the current stakeholder engagement guidelines are a
guide and not a mandatory standard or law, organisations are able to freely interpret them,
particularly in terms of who they engage with, which concerns to address, and how to address them.
Under these guidelines, it’s possible for organisations to take a broad view and consider all
stakeholders, but not mandatory. With this in mind, how can current practices deliver an authentic
accountability?

Slide 22

I’d like you to consider then, what an authentic accountability might look like? If you were aiming for
the top right hand box in the image, how would you engage with stakeholders? If you’re truly trying
to empower and involve your organisation’s stakeholders, you will be thinking about how to develop
relationships, how to nurture trust, how to listen. If we can circle back to the idea of broad and
narrow approaches to understanding stakeholders, we might see that conventional approaches to
engagement might be fine for those salient stakeholders in the narrow approach: think of zoom
meetings, written submissions, or forums held in the offices of the organisation. If you, as future
business leaders want to engage with a much broader array of stakeholders though, you might go
out to the site of operations, respectfully visit Traditional Owners on their own terms, listen to local
communities and involve these less-salient voices in your decision making.

But circling back to our guiding question: how would you engage with a river as a stakeholder? Is it
even possible? This unconventional question might give rise to some unconventional answers.