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 7

our approach

financial materiality

Stakeholder Engagement Main Page > Four Pillars > ​Effectiveness Criterion 6

6. Stakeholder-informed Action Plan

The company analyzes information obtained through affected stakeholder engagement and collaborates with rights holders to formulate an action plan. 

what this means

questions for portfolio companies

What to look for

High risk situations

Because risks to rights holders and companies can emerge and escalate quickly in a CAHRA, the process of developing and disseminating action plans must be highly adaptive and responsive. Companies should take digital and physical security measures when reporting on and communicating plans, and maintain close coordination with local and international bodies monitoring conflict and unrest (i.e., NGO coordination councils, UN agencies). Action plans should also include measures to support the safety and resilience of affected rights holders and communities. In cases where a company decides to exit, it should communicate as transparently as possible about the decision and its likely implications for those affected, while prioritizing their protection.