Sustainability
Bursa Malaysia has always advocated corporate responsibility as key to sustainability. Today, sustainability, which supports stakeholder value creation, should be the main focus of every responsible company.
Tip of the Week: Approximately only 10 percent of every landfill can be cleaned up.
Stakeholder Engagement
Overview
Why Engage Stakeholders?
The increasing trend in non-financial reporting highlights how organisations are expected to meet stakeholders' expectations across financial, environmental and social dimensions.
Some PLCs have set up a dedicated investor relations team for the purpose of engaging their shareholders and investors. However, it is no longer enough for companies to manage their shareholders but to also engage their stakeholders. Managing key stakeholders such as regulators, customers, suppliers and business partners is becoming increasingly important.
Stakeholders can have a significant impact on a company's market value, especially its intangible value. Instances of product boycotts and employee strikes can cause the market value to plummet if there is a large intangible value attached to it. A robust stakeholder engagement approach helps a company to communicate openly which makes it easier to build trust between a company and its stakeholders. Ultimately, organisations require it for continued support for their license to operate.
Today, leading companies have developed an appreciation that effective stakeholder engagement can contribute to learning and innovation in products and processes.
Benefit of Stakeholder Engagement