Engaging with stakeholders, engagingly
It seems almost bizarre to suggest that effective engagement with stakeholders is a key element of best practice governance but recent disclosures to emerge from the Royal Commission into banking and the draft fourth edition of the ASX’s governance principles are a reminder that, well, sometimes we need reminding…
The Royal Commission is a stark reminder of the importance of the appropriate balance between the rights of the shareholders and other stakeholders in the company such as customers.
"The Royal Commission is a stark reminder of the importance of the appropriate balance between the rights of the shareholders and other stakeholders in the company such as customers". Click here https://t.co/1uUUfHv1iG to read our latest blog.
— Governance Matters (@GovernanceMatt) July 16, 2018
The ASX’s draft fourth edition, including mooted changes to Principle 3 which will require a board to consider the culture of the organisation and its social impact, reinforces this notion. As soon as the board is expected to assume responsibility for culture and social impact, it must critically examine its major stakeholders and develop an appropriate mechanism to engage with these groups in order to develop a trusted relationship, to the point where, if member of the public asked individuals within a stakeholder group what they thought of company X, they’d say “really good”. Continue reading
Hanging ten on the technology wave of communication
— Governance Matters (@GovernanceMatt) June 24, 2016
Bob Dylan famously sang – some would argue barked – about ‘the times they are a’ changing’ and that’s pretty much the anthem boards need to adopt when it comes to communicating with their shareholders.
Quite simply, the traditional way is no longer the way. It’s not cutting the mustard, the technology has moved ahead and research trends tell us all we need to know about the appeal of the time-honoured Annual General Meeting (AGM).
So why do we find most boards still holding the traditional annual gig for shareholders in a traditional way?