Reporting on stakeholder engagement
The board should report to its members or shareholders and key stakeholders on how it has taken the impact on them into account when making decisions. The board should provide feedback to those stakeholders with whom it has engaged, which should be tailored to the different groups. Reporting on how boards have considered the impact of their actions on stakeholders is key to establishing trust and demonstrating transparency and accountability.
Primarily, reporting is done through the annual report. Other reporting such as separate corporate social responsibility reports and the company website should be used as needed by sports organisations.
In the annual report, stakeholder identification and engagement should be put in the context of the organisation’s reporting on its wider business model and governance arrangements to provide a picture of how these contribute to the long-term success of the organisation and how directors have performed their duties. It should not be treated as a separate activity that can be ‘tacked on’ to existing reporting.
Stakeholder engagement reporting should cover the following three questions:
- Who are the key stakeholders?
- How does the board hear from its key stakeholders?
- What were the outcomes of engagement with key stakeholders, and what impact did that have on decisions?
The annual report should explain concisely the processes that the board has in place to receive input and information from stakeholders. This might cover not only the mechanisms normally used for each of their key stakeholder groups, but also how the board approaches more ad-hoc engagements in response to specific events. This is also an opportunity for the board to report on any assessment that it has carried out on the effectiveness of its stakeholder engagement processes and on any changes it intends to make as a result.
To demonstrate how the directors have fulfilled their duties, the annual report could explain how information gathered through engagement with stakeholders has informed the board’s decisions during the year. Disclosure should be specific and relevant. Read