Assessing respect, empathy and agency in company-stakeholder relationships
Good relationships underpin business respect for human rights. Doing business with respect for people’s dignity and equality starts, in many ways, by building good quality relationships with affected workers, communities and consumers. Yet, when it comes to evaluating company efforts to respect human rights – ‘tracking’ in the language of the UN GUIDING PRINCIPLES – there has been little focus on gathering data about how affected stakeholders experience their relationship with the companies that affect their lives. Bringing stakeholder voice into the assessment of company-stakeholder relationships is important for three, interrelated reasons:
- First, stakeholder engagement is paramount to each step of the due diligence process, under the UN Guiding Principles. Yet these efforts are too often assessed using metrics about the existence of formal processes, or the frequency and reach of activities through which a company interacts with stakeholders. Robust processes are important. But stopping at process metrics misses the critical signal of how affected stakeholders view the relationships that are created through these processes.
- Second, the on-going relationships that a company, its suppliers or other business partners have with potentially affected stakeholders are a product, in good part, of the way those business actors behave in their interactions. Measures about the quality of relationships are a real-time indicator of whether a culture of respect for people is in place in the office, factory, field or operational site. They can tell us about the likelihood of risks to and impacts on people being identified and addressed in appropriate ways.
- Third, whether affected stakeholders feel respected, treated fairly and can freely exercise agency in their relationship with companies helps us understand the outcomes companies are delivering in people’s lives. Qualitative data about the quality of relationships is therefore an important complement to other the more widespread quantitative metrics about diversity, wage levels or numbers of grievances resolved.
“From the outset of the Valuing Respect project we’ve explored how to put people’s experience at the core of evaluation; to recognize that if we start with the people directly affected, then that will ultimately lead to better data and insight. As we uncovered more innovations that placed affected stakeholder voice at the centre of evaluating company programs and activities, we spotted a pattern. These efforts were uncovering previously hidden realities about the quality of relationships between companies and affected workers. And, what is great, is that companies have been able to act on these findings in very clear ways.”Jana Mudronova, Shift Advisor
What we are doing in this area of work
We have been engaging with companies and organizations they partner with who have been piloting ways to measure the quality of their relationships with affected stakeholders. As a result, we’ll soon be publishing a number of case studies ; and, a series of “method notes” about their work. .Our aim is to use practical examples and methodologies to inspire companies and their partners to adopt or draw on our findings to kick off a cycle of creative new thinking and practice in this area. Our work will:
- Profile the evaluation of company-stakeholder relationships in diverse industry sectors and geographies.
- Demonstrate a range of methodologies available to companies to design indicators or otherwise assess relationships.
- Signpost to a growing number of organizations leading the way in this area of practice.
Research and Outputs on Quality of Relationships
Stakeholder Voice: Learning from Affected Stakeholders to Better Evaluate Program Effectiveness and Outcomes
An increasing number of companies, investors and civil society organisations have expressed the need to better evaluate the effectiveness of company efforts to mitigate adverse human rights impacts in terms of outcomes for affected stakeholders. This paper focuses on ways to involve “stakeholder voice” in that evaluation, by which we mean the experiences, perspectives and […]
Engaging Affected Stakeholders: Evaluating the Quality of Processes for Company-Community Engagement
In this paper, Shift Advisor Lloyd Lipsett describes the best questions to ask and the best practices to use when evaluating your company’s engagement with affected stakeholders.