Stakeholders are often seen by companies as a problem, a group of individuals to be dealt with or placated to achieve a business objective.

I was once tasked with coming up with some credible community investment options for an energy retailer to support vocal community groups. Many of these groups were increasingly, and rightfully expressing concern about the impact of increasing energy prices on households, and some were critical about the response from energy companies to provide support.

The idea of providing these community groups with financial support was initially considered to be a way to placate those groups. Sure, providing some grant funding would help them address their challenges, but in doing so it would hopefully lower their ire at said company. That was the idea.

So off I went. I met with every community group and organisation that were worried about increasing gas and electricity prices. I started every conversation with the offer that I was looking for ways to help community organisations address the challenges impacting their communities. I hoped these conversations would lead to proposals for sponsorship, grants and funding that would demonstrate visibly that the company was ‘doing the right thing’.

But the conversations I had were not what I expected. The people I met were not who I had expected to meet. I ended up meeting individuals from organisations who had dedicated their lives to helping support those in need. I sat down with advocates of families who wanted to help energy companies better understand the challenges their customers were facing.

These organisations didn’t want to be placated. The representatives didn’t want a hand- out. They wanted to work on genuine solutions to the challenge. And they weren’t blaming the retailers.

I learned a lot in the many meetings I had back then. First there were the stories. In particular I won’t forget the story about a family who was boiling hot water in a kettle for their children’s baths because their gas had been cut off. And in the end their electricity bill also became untenable.

These meetings with ‘stakeholders’ changed my approach, and changed the company’s approach. From placating problem groups to educating the company, and working together on solutions.

From sponsorship and grants to corporate social responsibility. It’s worth taking a long hard look at how your company approaches its stakeholders, and its approach to the communities in which it operates. There is a better way.

Author: Chandran Vigneswaran