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Companies not doing enough to engage their stakeholders: Study

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Firms generally don't disclose how board and exec leadership handle stakeholder engagement plans and decisions.

Only 10 per cent of companies gave examples to show how their boards considered major stakeholder decisions throughout the year.

While the companies put content about corporate governance on their websites, they did not outline how their boards manage relationships with stakeholders. “Effective stakeholder engagement is now more crucial than ever. Customers, suppliers, employees, investors, communities and regulators demand greater transparency, accountability and ethical conduct from companies,” said SID chief executive Terence Quek.

“By doing so, businesses can build stronger, more resilient relationships and drive sustainable success.” These evolving expectations mean that companies must look at stakeholder engagement as a strategic imperative and not just as a compliance exercise, they said.

 

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