Effectively engaging with stakeholders and understanding their perspectives is increasingly central to a board’s role. Done well, it can strengthen organisational reputation and support the creation of long-term value.
This guide builds on the AICD’s original 2021 publication on board engagement with stakeholder groups, Elevating stakeholder voices to the board. Reflecting developments in corporate law, governance practice and director experience since then, it outlines approaches boards can use to better understand stakeholder perspectives and incorporate them into governance and decision making.
A practical framework for boards
The guide provides a five-step framework to effective stakeholder governance:
- Stakeholders and organisations – identify, prioritise and review key stakeholders.
- Vision – define the board's role in stakeholder governance.
- Engagement – understand stakeholder perspectives and ensure relevant insights reach the boardroom.
- Decision making – incorporate stakeholder considerations into board decisions and disclosures.
- Evaluation – monitor and improve the effectiveness of stakeholder governance.
Featuring case studies and perspectives from directors, chairs and stakeholder representatives, the guide explores practical approaches to engaging with customers, employees, volunteers, suppliers, First Nations peoples and broader communities.