A company in my community has asked our organization to participate in a stakeholder consultation. Except for small donations, this company has done nothing for charities and nonprofits. It produces noise, smells, waste and traffic problems. Would it be ethical to be associated with this?
As companies learn about their corporate social responsibility (CSR), one of the first things they find out is that they should be considering the impact of their decisions on others. Since they cannot fully know the impacts, they should identify groups and organizations that are affected by their decisions or that can speak for those affected.
Almost all companies already talk to some types of stakeholders, such as employee unions, major customers and major suppliers. Consulting with the community may be new to them.
If the people you serve are affected by this company’s actions, it is highly ethical to try to influence its decision-making for the better. If you are part of an environmental group, then you hold a strong stake in trying to make the local environment better. If you are part of an anti-poverty group, or you help marginalized people find employment, then you hold a strong stake in future jobs at the company. Can you help its people learn? Would it help more to withhold information?
Agreeing to be consulted is not the same as agreeing with their actions or decisions, or agreeing to be publicly associated with those decisions. You can decide later whether you want to be listed as consulted, or involved with implementation or awareness.
The way the company conducts the stakeholder consultations will affect how much you want to be involved for the future. Ideally, you want to see a full range of stakeholders being consulted, and no significant stakeholder left out. The company needs to make extra effort to hear from groups who do not have formal representatives. Others may need accommodation for disabilities, translation services, transportation or daycare assistance, and scheduling consideration such as avoiding religious holidays.
The company should let you know the purpose of the consultations for you to properly prepare a position, brief or statement, and decide on a representative. If the company merely wants to present information and take a few quick questions, that is not really stakeholder consultation, but it may be appropriate preparation for one.
Since determining a position takes time, the company should give you information far enough in advance to review it, and if necessary, take a recommendation to your board of directors. Sometimes, your group will decide the issue is not worth your time compared to other priorities.
Consultation sessions are usually best facilitated by someone who has no reason to get defensive about past company actions or new plans. Many community groups prefer to see a company executive present, who can answer questions and make commitments on behalf of the company (at least a commitment as to when questions will be answered or a next round of consultations held). However, sometimes there are advantages to third party facilitation with your input kept anonymous.
More and more, stakeholder consultations include web-based surveys as well as telephone surveys. These are usually better for reaching numerous people who have the same stakeholder relationship than for reaching community groups that may each have different needs and information.
Providing submissions can be very helpful after the big picture decisions are made, good or bad, and you can mainly influence details such as subdivision plans, road alterations or procedures. Technical details are hard to discuss in a group, and the most valuable input is usually detailed alternative suggestions. Consider asking the company for some funding if they ask for, or would benefit from, such work from you. Also, consider sharing what you are doing with other groups, or collaborating on a response.
From your viewpoint, the point of the consultations is to influence or even change a decision. You will have to find out if the company treats you with respect, listens well, and communicates well about what difference the stakeholder consultations made. Since this company is new to the process, perhaps you can be tolerant of inadvertent mistakes. If they are too disrespectful, tell them (and perhaps your members) why you are withdrawing. Your group can always reconsider or go back to more public advocacy against the company’s actions.
There is no reason for you to tolerate a farce or repeatedly participate in one. One of my former groups was asked to be part of a stakeholder consultation. We gathered a high-powered, expert team of volunteers who carefully reviewed the advance questions about proposed government programs in a specific area. We expected a certain government executive to arrive. Instead, a very junior consultant arrived with a completely different set of questions, all about message and spin instead of actions and programs. He knew so little about the topic that no dialogue was possible. We threw him out, and wrote to the Cabinet Minister that under no circumstances was our group to be included in their list of those who had been “consulted.”
I hope your consultations will be much more positive. The company is taking steps in the right direction. You can help with the process, as well as provide the data and analysis they can use to make better decisions.
Since 1992, Jane Garthson has dedicated her consulting and training business to creating better futures for our communities and organizations through values-based leadership. She is a respected international voice on governance, strategic thinking and ethics. Jane can be reached at jane@garthsonleadership.ca.
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Disclaimer: Advice and recommendations are based on limited information provided and should be used as a guideline only. Neither the author nor CharityVillage.com make any warranty, express or implied, or assume any legal liability for accuracy, completeness, or usefulness of any information provided in whole or in part within this article.