Amid pressures to focus on preventive medicine, one pharmaceutical company broadened its stakeholder base to include patients, their families, and the planet, empowering workgroups to drive its new purpose-driven strategy.
This organization made this strategic decision because its leaders understood that investing in a broad set of stakeholders would have a significant impact on the total enterprise value, access to capital, and the organization's talent market. This is a long-term value approach to building a growth strategy.
Some time ago it was said that a company that does not generate internal value is not able to survive; today it is widely understood that a company that does not benefit those around it is not able to generate value and will expire after a few months.
The so-called long-term value approach to building a growth strategy involves investing in broadening stakeholder considerations. This means that the company that defines its long-term value narrative and invests for the common good will simultaneously benefit its shareholders and its own bottom line.
Focusing on stakeholder well-being to accelerate growth is the core strategy. Companies that focus on a broader group of stakeholders are expected to perform better - in the short, medium, and long term - and are rewarded in the marketplace with lower capital costs, greater human capital commitment, and, over time, differentiated growth in enterprise value.
In order to manage a broad group of stakeholders and, consequently, contribute to the communities and the total value of the company, it is essential to have metrics that reflect the impact of the organization on its stakeholders and the opinions they have of the company.
As these data are variable over time, the best way to keep abreast of stakeholders' perceptions of the company is with ESG software. With these, setting and measuring stakeholder-related objectives is possible thanks to the monitoring of linked KPIs.
The information provided by the software should be used by the organization as a scorecard to drive investment and communications. By identifying the specific needs and/or expectations of stakeholders, this data becomes a driving tool.
Once stakeholder information is available, it is essential to use it correctly. The best strategy is to think like stakeholders; to understand their priorities and goals. By constantly monitoring their perceptions of the company, it is possible to identify priorities and define the points to work on.
In the M-Risk software, it is possible to visualize stakeholders on a map of interest and power; this map differentiates those who must be kept informed, those who must be monitored, those who must be kept satisfied, and those who need urgent management.
On the other hand, the georeferencing provided by the platform makes it possible to identify the areas of influence of operations and social programs, identify areas of conflict and know the status of communications. In this way, the team's energy is used in indispensable aspects.
Permanent monitoring will make it possible to act in time in the event of an incident or event of social conflict, facilitating coordination to solve the problem. It should be noted that it is necessary to identify both the needs and expectations of the different groups. "Putting out fires" is not enough and cultivating relationships is just as important.
Investing in a broad set of stakeholders impacts the overall value of the company, access to capital, and the organization's talent pool. At the same time, cultivating a long-term relationship with them will facilitate and drive the common good.
For both goals, the management of information - and, consequently, of the relationship - is more efficient through ESG software.
To summarize, with M-Risk ESG software it is possible:
Daniela is the Customer Success Manager at M-Risk. She has over 10 years of experience managing Company Sustainability and Social Responsibility projects, focused on the development, implementation, and follow-up of social projects, sustainability strategies, and plans for relationships with stakeholders. She holds a degree in Services Administration from Los Andes University, a Certificate in Business Administration from the London College of International Business and Studies UK, and a MSc in Sustainability and CSR from Nottingham University, UK.
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