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 6

our approach

financial materiality

Stakeholder Engagement Main Page > Four Pillars > ​Effectiveness Criterion 5

5. Trust and Accountability

The company establishes a grievance mechanism and other procedures, tailored to the context, to build rights holder trust and accountability for its actions. 

what this means

questions for portfolio companies

What to look for

Issue & SEctor considerations

for workers

High risk situations

Levels of trust and accountability are often strained in CAHRAs due to ethnic, religious, resource-based, or livelihood-related conflict and tensions. Stakeholder engagement processes must therefore be designed to avoid exacerbating mistrust or creating the perception that the company is aligning with or targeting any party to the conflict. The company’s focus should be on accountability to affected stakeholders, both external and internal, including its own employees and contractors in the conflict zone. 

Companies should also welcome rights holder feedback—including anonymous reports—about the misuse of their products, services, or facilities by any armed group, and make clear how such information will be used to prevent harm. In some cases, international humanitarian law may require consultation with civilians about the use of company-controlled resources.
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In light of the overall heightened risks associated with business activities in CAHRA and the specific risks unique to each context, companies are advised to enlist third parties with demonstrated expertise in conducting hHRDD, and to draw on strategies gleaned from post-conflict reconstruction and truth and reconciliation experiences.