Building Stronger Businesses Through Stakeholder Engagement: ESG Insights from CNK’s April 2024 Newsletter
In today’s evolving corporate landscape, Environmental, Social, and Governance (ESG) factors are no longer optional—they are central to responsible and sustainable business practices. CNK & Associates LLP’s April 2024 ESG Newsletter dives deep into Principle 4 of SEBI’s Business Responsibility and Sustainability Report (BRSR), which emphasizes that “Businesses should respect the interests of and be responsive to all its stakeholders.” This principle holds increasing relevance in a world where stakeholder expectations—ranging from employees and investors to communities and regulators—are reshaping the definition of corporate success.
This edition breaks down the essence of effective stakeholder engagement, a cornerstone of ESG implementation. It outlines a five-step engagement model—from crafting a vision and mapping stakeholders to collecting feedback and forming actionable plans. The newsletter reinforces that stakeholder engagement is not a one-time checkbox but a continuous dialogue. The approach involves understanding each stakeholder’s unique concerns and contributions, especially the marginalized and vulnerable groups whose voices are often underrepresented.
A key highlight of the issue is a compelling article by Mr. Nowshir Mirza, Senior Independent Director, who outlines three essential elements for ESG implementation:
Recognition – Embedding stakeholder considerations into every business decision.
Reward – Linking ESG targets to leadership compensation to drive commitment.
Culture – Shifting the organizational mindset from profit-centric to purpose-driven growth.
The newsletter further illustrates best practices from leading Indian corporations:
Mahindra Lifespace Developers excels at stakeholder identification using importance, influence, and proximity.
Asian Paints maps engagement strategies tailored to stakeholder needs.
Hindustan Petroleum integrates stakeholder feedback into ESG policy.
Reliance Industries champions capacity building for vulnerable communities through education and healthcare initiatives.
Another engaging feature is the BRSR-themed quiz, encouraging readers to test their knowledge and reflect on how companies can align operations with ethical integrity, product sustainability, and inclusive growth.
