ESG Stakeholders

To develop a successful ESG policy, it is crucial to understand the needs and concerns of all relevant stakeholders. This chapter depicts the role of stakeholders in modern business processes. The decisions and actions taken by the company can have far-reaching consequences that are not confined to financial impacts, affecting various stakeholders and the broader society. By acknowledging and addressing the interests of the key stakeholder groups, companies can create value, contribute to society and achieve in turn long-term economic success. The chapter begins with an introduction of the concept of stakeholder, followed by the evolution of stakeholder theory, and sheds light on the role of stakeholders in the sustainable success of business undertakings. Furthermore, it presents a practical framework for stakeholder relationship management as an integral component of ESG management, including identifying, prioritizing, mapping and engaging major stakeholder groups, as well as possibilities for monitoring ESG stakeholder relationships. The visualization of stakeholders with the Stakeholder Circle approach further facilitates the understanding of stakeholder characteristics and the planning of stakeholder engagement in practice.