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Concerns have been raised that stakeholder dialogue as practised by
large companies often leads to the views of local people being drowned
out by the 'loud voice' of international NGOs and other interested
parties with different and sometimes opposing priorities.
In a report, Going Global, the US-based Center for Corporate Citizenship at Boston College says its research into the way multinationals work with stakeholders has shown that in many cases 'only the loudest voices get heard'.
It says this 'dichotomy' is now a dominant concern of senior CSR managers in large companies - particularly those operating overseas away from headquarters. 'Concerns of local stakeholders often become subordinate to issues raised by other groups that command more attention at headquarters,' it says. 'Some managers highlighted how at times companies pay too much attention to the priorities of those who can harm the company and not enough to those that the company can harm or benefit.'
The centre finds managers 'worry that expectations expressed through civil society groups may not accurately reflect the priorities of groups they claim to represent', and that this 'can create tension within companies, especially when headquarters wants to respond to an international group's concerns that overseas managers do not think are a priority.' It says it is hard for multinationals to focus on the views of less powerful community groups when international NGOs inflict much more reputational damage and investors exert great influence.
It adds: 'Managers, especially at corporate headquarters, feel pressured to meet the expectations of those who have the greatest influence on the company rather than of stakeholders upon whom the company has the most impact. '
The demands of investors might, for instance, lead HQ to emphasize the prevention of forced labour, even though it is not a priority for CSR managers in locations where there is no such thing. In the meantime, local demands for the company to provide community healthcare may go unheeded, leading to absenteeism and lower productivity.
The report is based partly on in-depth interviews with 29 senior managers in 15 countries working for six US-based multinationals - AMD, Cargill, GE Consumer Finance, Levi Strauss, Nike and Unocal.
The centre says that while the issue is likely to be 'a recurring question in the future', some companies are already trying to get to grips with it. One of the companies uses role play in its planning process, in which half of the participants argue for the local community and the others for the company and other stakeholders. This gives more weight to the views of less powerful stakeholders and highlights concerns shared by all stakeholders. The centre adds that companies should also make more effort to draw on the knowledge of local staff.
Matt Taylor, corporate responsibility manager at BP, said his company has made special efforts to listen to 'the local, smaller voices, who often have a more practical perspective'. Taylor added that local NGOs 'are exposed to the realities of the business and the local environment' and can be 'critical in ... rebutting some of the less well informed international commentary' about the company.
In a report, Going Global, the US-based Center for Corporate Citizenship at Boston College says its research into the way multinationals work with stakeholders has shown that in many cases 'only the loudest voices get heard'.
It says this 'dichotomy' is now a dominant concern of senior CSR managers in large companies - particularly those operating overseas away from headquarters. 'Concerns of local stakeholders often become subordinate to issues raised by other groups that command more attention at headquarters,' it says. 'Some managers highlighted how at times companies pay too much attention to the priorities of those who can harm the company and not enough to those that the company can harm or benefit.'
The centre finds managers 'worry that expectations expressed through civil society groups may not accurately reflect the priorities of groups they claim to represent', and that this 'can create tension within companies, especially when headquarters wants to respond to an international group's concerns that overseas managers do not think are a priority.' It says it is hard for multinationals to focus on the views of less powerful community groups when international NGOs inflict much more reputational damage and investors exert great influence.
It adds: 'Managers, especially at corporate headquarters, feel pressured to meet the expectations of those who have the greatest influence on the company rather than of stakeholders upon whom the company has the most impact. '
The demands of investors might, for instance, lead HQ to emphasize the prevention of forced labour, even though it is not a priority for CSR managers in locations where there is no such thing. In the meantime, local demands for the company to provide community healthcare may go unheeded, leading to absenteeism and lower productivity.
The report is based partly on in-depth interviews with 29 senior managers in 15 countries working for six US-based multinationals - AMD, Cargill, GE Consumer Finance, Levi Strauss, Nike and Unocal.
The centre says that while the issue is likely to be 'a recurring question in the future', some companies are already trying to get to grips with it. One of the companies uses role play in its planning process, in which half of the participants argue for the local community and the others for the company and other stakeholders. This gives more weight to the views of less powerful stakeholders and highlights concerns shared by all stakeholders. The centre adds that companies should also make more effort to draw on the knowledge of local staff.
Matt Taylor, corporate responsibility manager at BP, said his company has made special efforts to listen to 'the local, smaller voices, who often have a more practical perspective'. Taylor added that local NGOs 'are exposed to the realities of the business and the local environment' and can be 'critical in ... rebutting some of the less well informed international commentary' about the company.
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