Politeia - Fifth Annual Forum on CSR Milan, 22 May 2008

1. Politeia - Fifth Annual Forum on CSRMilan, 22 May 2008 Stakeholder engagement policies and practices: empirical evidence and critical points Giacomo Manetti (PhD), Assistant Professor Lucia Becatti, PhD candidate University of Florence (Italy) Department of Business Administration E-mail: giacomo.manetti@unifi.it Manetti-Becatti

2. Stakeholder theory approaches • Descriptive: the corporation is viewed as a constellation of cooperative and competitive interests possessing intrinsic value • Instrumental: it establishes a framework for examining connections and influences between the practice of stakeholder management and the achievement of management strategic goals • Normative: there are moral or philosophical duties for managers to involve stakeholders 1. The corporation should be managed for the benefit of stakeholders (Freeman-Evan, Bowie, Phillips, etc…) 2. Need to modify laws and institutions, giving a growing attention to stakeholders because of new values of the evolving society (Wicks, Calton, Kurland, etc…) 3. Fiduciary relationships between corporations and their stakeholders (Goodpaster, Boatright, etc…) Manetti-Becatti

3. what stakeholders really want to know ENGAGEMENT …in the governing bodies …in the accounting process …in the reporting process …in the continuous improvement Stakeholder engagement (SE) and CSR reporting Materiality Relevance stakeholders Manetti-Becatti

4. SE and the Arnstein’s ladder of citizen partecipation • Unerman (2007) • Identifying the range of stks to be considered • Impossibility of direct dialogue with some stks • Addressing heterogeneous stks expectations • Prioritizing stks needs on the basis of maximum negative consequences • Negotiating an universally accepted consensus regarding the priority stks needs Manetti-Becatti

5. Empirical evidence from GRI reporters • Method and Sample: • 34 sustainability reports • Level A+ of the GRI guidelines (G3) • Included in the database at the date of 31st December 2007 • Research questions: • Presence, aims and objectives of SE • Degree of representation of stks (All engaged? Have representatives been chosen? • Degree of stks involvement (Simple consultation? Preventive? In the reporting process? In the feedback process?) • Engagement channels and methods (internet, forum, road shows, mail, conferences…) • Arnstein’s ladder of citizens participation (which levels?) • Additional elements (difficulties in the SE process, continuous improvement declared? Specific standards for SE?) Manetti-Becatti

6. Findings from the sample: strategic planning Manetti-Becatti

7. Findings from the sample: social reporting Manetti-Becatti

8. Findings from the sample: engagement Manetti-Becatti

9. Conclusions and criticism Main issues: • SE is often considered just a fundamental step of the strategic planning process (stks are not really engaged) • Quite low level of stakeholders’ empowerment (consultative role without representatives in the governing bodies) • Freeman’s strategic-opportunistic approach is prevalent • The main goal is building corporate trust (many companies of the sample manage strong social or environmental issues) • Prevailing exclusion of suppliers, NGOs and governments Critical points for the future: • Is an extended view of corporate citizenship possible? • What’s the role of stakeholders in fostering social and environmental responsible business practices? • Can social responsibility be a two-way conversation? Manetti-Becatti

10. Thank you for your attention Giacomo Manetti - giacomo.manetti@unifi.it Lucia Becatti - lucia.becatti@unifi.it Department of Business Administration University of Florence (Italy) Manetti-Becatti