Global Megatrends Reshaping Stakeholder Communications
On 20th May 2022, Black Sun hosted a hybrid event titled “Global Megatrends Reshaping Stakeholder Communications” at a venue in the central area of Singapore.
The event was attended in-person by our distinguished guests and partners, together with participants from all over the world who watched the live video.
Key points discussed were:
Purpose and sustainability are more than taglines
Companies can fall prey to ‘greenwashing’, paying lip service without evidence of how they live up to it. One of the internal assessment criteria is to find out if people in the organisation make decisions by applying a lens that is aligned with corporate purpose and sustainability. Black Sun has also witnessed an increasing trend in companies spending extra effort in articulating their purpose and what they stand for, as part of their communications with prospective and existing employees.
When communicating externally, consistent communications, commitment to implement key changes and transparent disclosures of performances are some of the key factors that will influence stakeholders’ perception of whether a company is effectively ‘greenwashing’.
1. Authenticity, details and relevance are key value proposition in engagement
A company should be authentic on its performances and action plans, as no amount of communication can help to navigate the company away from its issues. Communications will need to be backed by substantive action which addresses stakeholders’ needs. Coupled with sufficient details on the ambition, action and progress, communication should always be authentic and of relevance to the different stakeholders.
The challenge, therefore, lies in managing stakeholder groups that are increasingly more sophisticated and dynamic. Clearly defined stakeholder groups and well-articulated nuances of risks and uncertainties for each group will help a company prepare for stakeholders’ demands. It is important for companies to remember that stakeholders’ needs, and corporate responses should evolve together over time, and engagement should never be static.
2. Implications of adopting the common language in sustainability
With the introduction of International Sustainability Standards Board (ISSB) and the increasing adoption of TCFD, there is hope that sustainability disclosures will be standardised, allowing for better comparison of disclosures between companies. This may lead to other considerations. For instance, how should internal auditors be involved in the sustainability reporting processes to make sure that the presented information is accurate and reflective of the performance? Also, with a common set of sustainability metrics, it will become more convenient for stakeholders to assess and compare sustainability performance. Should a company then include sustainability metrics in the remuneration structure of its leaders to align them with the desired outcomes?
For more information, please get in touch with our Business Development Manager, Zu Heng: [email protected]
About Black Sun
Black Sun is a global stakeholder communications company with offices in London and Singapore. We are united by a common purpose of making businesses more valued by their stakeholders. We are powered by a unique mix of strategic insight, creative inspiration and technology advantage, and help businesses communicate authentically how they deliver value to their stakeholders. We believe that inspiring strategic communications can spark positive change and drive long-term, sustainable performance.