Gaining Value by Addressing Stakeholder Needs
There are many times when an organization is required to communicate matters regarding its performance to outside parties. Financial and economic performance information is reported externally as a matter of course and has high value to external stakeholders. Banks, insurers, customers, suppliers, and regulatory agencies, among others, all require such information from an organization at different times and in different forms.
Environmental concerns are also among the issues that organizations are required to communicate externally from time to time. Financial institutions require information about possible environmental liabilities. Investors, customers, and suppliers seek assurances that an organization is meeting its legal obligations and is properly managing its environmental affairs. In the United States, and abroad, organizations are required by law to report to governmental agencies their environmental performance in certain areas, putting that information into the public record, sometimes on terms not favorable to the organization. Local communities increasingly expect to know about, and even provide input into, organizations’ environmental management activities.