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Principles

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Here are a few best practices that make a difference when considering how best to execute stakeholder engagement.

Enroll the right stakeholders to improve outcomes

Most commonly, a stakeholder is defined as "any group or individual who can affect or is affected by the achievement of [an] organization's objectives" Freeman (1984: 46). We would add that a stakeholder may also include someone who acts with an organization, implying a joint effort. Research indicates that more successful outcomes emerge from initiatives where stakeholders have participated by providing inputs for identifying and designing solutions. Initiatives make better decisions, which are more informed, have greater longevity and are more likely to meet the requirements of the opportunity or problem they seek to address.

Governance is a process, not a destination

When we speak of governance for multi-stakeholder collaborations, we are referring to the notion that governance provides "mechanisms for steering social systems toward their goals" (Rosenau, J. N., 2006, p. 118). In other words, governance for multi-stakeholder collaborations is a flexible model for group decision-making. It is a means to navigate the ambiguous boundaries at the intersection of our biggest problems - whether within an enterprise, between enterprises or at the place where the economy, the environment and civil society meet. This is not the governance of sovereign nations, but of daily life.

Lead from the middle

When practiced well, stakeholder strategy assigns accountability for outcomes. Not all initiatives or enterprises have a charismatic leader; mostly we lead from the middle and from amongst the many. That's hard to do unless we find a way to do it together. This is what makes stakeholder or governance bodies so important. Rarely does a single authority exist upon which we can confer total responsibility. Pushing accountability and authority outward and towards those who are working at the intersection of where the work gets done empowers companies, workers and communities. It's also more efficient. Authority implies the power to influence and lead cooperation, rather than the power to control the outputs of a group.

Having a strategy helps

The notion of stakeholders may be a fluid concept, but issues of power, legitimacy, inequality and influence affect how we sort through the most complex problems of our time. And, it's all about relationships. So, while none of us are islands, if governments, corporations or communities want to change conditions, they have to bring folks along. Having a strategy does not mean that consensus is the rule or the norm, but it does suggest that understanding material concerns, such as who is impacted and who has impact, can help guide efforts. Thoughtful and intentional strategic engagement leads to better outcomes, with less risk and greater gain.