Embed in management systems

1. Embedded commitment: The company has a policy commitment to ongoing stakeholder engagement, and embeds it in its governance, culture, and management strategy.​

Create a Tailored Engagement Plan​

2. Inclusiveness: The company listens to a full range of rights-holders across the value chain and has a process to identify legitimate representatives.
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3. A Focus on Those Most at Risk​:  The company prioritizes engaging with the rightsholders who are most likely to be harmed by its operations​, and therefore where early engagement is critical.​​

Conduct appropriate  activities

​​4. Informed Participation: The company establishes ongoing, two-way communication with affected rights holders that provides affected stakeholders with relevant critical information well in advance of key decision points.

5. Trust and Accountability: The company establishes procedures, tailored to the context, to build rights holder trust and accountability for its actions.​

Ensure follow through

6. Stakeholder-informed Action Plan: The company analyzes information obtained through affected stakeholder engagement and collaborates with rights holders to formulate an action plan.

7. Monitoring, Transparency, and Continuous Improvement​: The company establishes and maintains a transparent and stakeholder-informed monitoring and evaluation (M&E) system.​

effectiveness criterion 5

our approach

financial materiality

Stakeholder Engagement Main Page > Four Pillars > ​Effectiveness Criterion 4

4. Informed Participation

The company establishes ongoing, two-way communication with affected rights holders that provides relevant critical information well in advance of key decision points.

what this means

questions for portfolio companies

What to look for

for workers

High risk situations

The company works with rights holders to establish an ongoing two-way communication process that includes: 

• Informed participation of affected stakeholders for collaborative analysis and decision-making.
  Companies should consult with affected stakeholders to determine the information they need as well as the format, delivery method, and timeline so that it is clear and accessible (IFC 2007, 28-30). Moreover, they should share information well in advance of decision-making, and provide information objectively in a way that doesn’t try to sway affected stakeholders’ opinions (TNFD 2023, 37; IFC 2007, 28).[1] Keep in mind that some communities don’t use the written language, so alternative accommodations may be necessary. 
  
  
• Informal meetings and, where available, use of digital communication tools alongside formal consultation.
  Creating open, informal spaces for dialogue—such as regular open houses, roundtables, or community forums—encourages more authentic engagement and provides stakeholders with accessible opportunities to express concerns and share perspectives.[2] Similarly, meetings in public spaces, where people congregate organically, such as restaurants and local businesses, can promote participation (OECD 2017, 52). Electronic media, such as text messaging and anonymous mobile surveys, can be an effective way to reach affected stakeholders who may be unable or unwilling to participate in in-person meetings, especially in contexts where fear of retaliation or logistical barriers limit open dialogue (IPIECA).
  
  
• A process to handle sensitive information (OECD 2017, 53; IFC 2007, 31).
  When it comes to handling sensitive information, companies should carefully balance transparency with legitimate privacy and confidentiality concerns, including rights holder safety and potential business risks. When these considerations make full disclosure untenable, it is essential for companies to provide clear explanations for why that is the case (OECD 2017, 53). In a few cases, such as discussions around community resettlement, timing the release of information to coincide with face-to-face consultations can be an effective strategy. This approach enables companies to address concerns in real time and facilitates more constructive, meaningful dialogue (IFC 2007, 31).

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[1] Cathal Doyle and Jill Cariño, “Making Free Prior & Informed Consent a Reality: Indigenous Peoples and the Extractive Sector” (Indigenous Peoples Links (PIPLinks), Middlesex University School of Law, The Ecumenical Council for Corporate Responsibility, May 2013), https://www.ecojesuit.com/wp-content/uploads/2014/09/Making-FPIC-a-Reality-Report.pdf.
[2] Shift, “Using Relationship Data to Improve Business Practices: Measuring Company-Community Relationships at a South African Mine,” March 2021, 10 https://shiftproject.org/resource/case-study-goldfields/.