Stakeholder Role in Governance

The G20/OECD Principles recognise that the corporate governance framework should acknowledge the rights of stakeholders established by law or through mutual agreements, and encourage active cooperation between corporations and stakeholders in creating wealth, jobs, and the sustainability of financially sound enterprises.

Stakeholders include employees, creditors, customers, suppliers, local communities, and the environment. Effective stakeholder engagement involves identifying relevant stakeholders, understanding their interests and concerns, establishing channels for dialogue, integrating stakeholder perspectives into decision-making, and reporting on engagement outcomes. GRI 2-29 (Approach to Stakeholder Engagement) requires disclosure of how stakeholders are identified and engaged.

Further Reading

• G20/OECD Principles of Corporate Governance
• ESRS

Key Resources

• AA1000 Stakeholder Engagement Standard
• GRI 2: General Disclosures — Stakeholder Engagement

Related Topics

• Board Responsibilities
• Disclosure & Transparency
• Sustainability & Resilience