What is the Stakeholder Issue in Sustainable Development Third largest PGM producer 30 000 employees Operations in loc

1. What is the Stakeholder Issue in Sustainable Development? Third largest PGM producer 30 000 employees Operations in located in RSA Barnard Mokwena Vice President: External Affairs Lonmin Platinum

2. What is the Stakeholder Issue with the Mining Brand in South Africa?

3. Introduction Stakeholders. The most quoted definition is that given by Freeman (1984):

5. What strategic stakeholder management can achieve � Robust relationships with stakeholders High reserves of reputational capital Contribution to sustainable business growth and sustainable development

6. Post-apartheid Robust Relationships Characteristics of �healthy� relationships: Control Mutuality The degree to which stakeholders and the company are satisfied with the level of control or influence they have over the relationship. The most stable, positive relationships exist when stakeholders experience that they have some degree of influence over the relationship. Trust The confidence that the company and its stakeholders have in each other and the willingness to open themselves to the other party. Integrity - as the extent to which any party�s behaviour is perceived as fair, just, and honest. Competence, which is the belief that an organisation has the ability to do what it says it will do. Satisfaction

7. Why stakeholder relationships matter?

8. Reputational Capital What is reputational capital?

9. Reputational Capital High reserves of reputational capital give an organisation distinct advantages: GENERATE REPUTATIONAL GAINS Their products/services and stock offerings entice more customers and investors � and command higher prices Their jobs lure more applicants � and generate more loyalty and productivity from their employees Their clout with suppliers is greater � and they pay lower prices for purchases and have more stable revenues MITIGATE THE RISK OF REPUTATIONAL LOSSES Their risks of crisis are fewer � and when crisis do occur, they survive with less financial loss

10. Roadmap to Strategic Stakeholder Management

11. Roadmap to Strategic Stakeholder Management � Step 1 Identify stakeholders based on the organisation�s strategy Your stakeholders are those groups that can either hinder or facilitate the achievement of your strategic goals Prioritise stakeholders based on the organisation�s strategic intent (primary: secondary) Various techniques to map stakeholders The result will deviate from the generic stakeholder map

12. Roadmap to Strategic Stakeholder Management � Step 2 Why? How? What? Lonmin example

13. Stakeholder listening: How? Two main categories of listening: Environmental scanning (continuous) Mostly media & document analysis Internal processes to deal with issues/risks should be formalised Formal measurement/research (pre-defined intervals) Reliable & valid social research methods Combine quantitative (describe with statistics) and qualitative (understand the reasons why) methods Adapt measurement instruments and tools to the needs of specific stakeholder groups Set targets & track progress Two-way process: give feedback to stakeholders after measurement

14. Stakeholder listening: What? Focus of measurement depends on which stakeholder or stakeholder groups are being listened to Generally, stakeholder listening can focus on: Perceptions, needs, expectations, experiences Relationship quality Broadly influenced by various indicators of communication and perceived behaviour or conduct towards stakeholders Reputation Social impact or social performance (mostly communities) Strategic alignment (mostly employees) Identifying gaps Describing specific aspects Measuring or quantifying

15. Stakeholder listening: Example Community satisfaction survey Quantifying perceptions in an index to plot performance Focus group interviews Personal interviews Simultaneous translation where necessary Compare ratings over time Compare community ratings with staff/management ratings on specific issues

16. Benchmark (example)

17. Benchmark (example)

18. Benchmark (example)

19. Company Performance (example)

20. Roadmap to Strategic Stakeholder Management � Step 3

21. Roadmap to Strategic Stakeholder Management � Step 4 Develop a company-wide, coordinated approach towards stakeholder engagement Understand the company�s stakeholder interfaces and govern value-based interaction through clear stakeholder protocols have measurable objectives per stakeholder interface provide clarity on the roles and responsibilities of different teams interacting with stakeholders Develop a communication programme for each stakeholder group: one size doesn�t fit all Have a auditable system of stakeholder engagement (track interaction, keep record of commitments made) Identify, analyse, manage and track issues and the impact of issues on stakeholder relationships Engage stakeholders during crises

22. Inclusive, integrated approach to stakeholder engagement