The aim of this guidance note is to assist boards in thinking about how to ensure they understand and weigh up the interests of their key stakeholders when taking strategic decisions. It identifies ten principles to guide the way boards approach these issues. They cover: identifying key stakeholders; the composition of the board and development of directors; the way in which boards receive and process information; designing appropriate engagement mechanisms; and reporting and feedback to shareholders and stakeholders.
Stakeholder engagement is an essential activity for all organisations. It should be used to inform the decisions that the board takes, whether about the products or services it provides or about its strategic direction, its long-term health, and its relationship with its workforce and the society in which it operates.
Additional resources
Users of the The Stakeholder Voice in Board Decision Making guidance may also find these other Institute guidance notes useful:
- Directors’ general duties
- Joining the right board: due diligence for prospective directors
- Induction of Directors
Other resources
Other sources of information and advice are available on some of the issues and approaches covered in the guidance, some of which are listed below. This list is not comprehensive, and the sources have not been endorsed by the Institute, but users of the guidance may find them useful.
Roles and responsibilities:
- Corporate Culture and the Role of Boards - Financial Reporting Council
- Culture by Committee the pros and cons - Institute of Business Ethics
Engagement:
- AA1000 Stakeholder Engagement Standard - AccountAbility
- Employee communications and consultation - ACAS
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