The company has arrangements in place to identify and engage with its material stakeholder groups and to manage its relationships with such groups.
A. Explanation

Every company has a number of stakeholders. These are parties who may be affected by the company’s activities (such as investors, employees and the community), or whose actions can affect the ability of the company to conduct its activities (such as customers, suppliers and regulators).

This Provision states that the company should identify and engage with its important stakeholders.

Engagement is important because companies conduct their business in an interconnected and interdependent world, in which there is increasing scrutiny of the sustainability and integrity of their operations. Such scrutiny comes not just from shareholders, but all the stakeholders.

Companies that act inappropriately could suffer penalties, loss of business and even legitimacy. Conversely, those that collaborate and mobilise their stakeholders in a positive way can reap reputational and financial rewards.

However, it is not practical for a company to treat every single stakeholder on the same basis. As such, the requirements call for the identification of, and engagement with, “material” stakeholder groups. This means that stakeholders need to be identified and prioritised, and their respective concerns and interests be determined and addressed.

One of the Board’s key roles is to ensure that the company’s obligations to shareholders and other stakeholders are understood and met. This includes ensuring that the key stakeholders whose perceptions and actions can affect the company’s reputation and operations are identified, prioritised and managed.


B. Practice Guidance


C. Related Rules and Regulations
  • MR 711A and CR 711A: Sustainability Report.
  • MR 711B and CR 711B: Sustainability Report.
  • MR Practice Note 7.6 and CR Practice Note 7F: Sustainability Reporting Guide.


D. CG Guides


E. Related Articles




eGuide to CG Code
Definition of Corporate Governance
History and Structure of the Code
Role of the Board
Role of the Chair
Focus on Long Term and Sustainability
Revised Code Structure and Approach
Mandatory Principles
Provisions and Variations
Thoughtful and Meaningful Application
Board Matters
Principle 1
Provision 1.1
Provision 1.2
Provision 1.3
Provision 1.4
Provision 1.5
Provision 1.6
Provision 1.7
Principle 2
Provision 2.1
Provision 2.2
Provision 2.3
Provision 2.4
Provision 2.5
Principle 3
Provision 3.1
Provision 3.2
Provision 3.3
Principle 4
Provision 4.1
Provision 4.2
Provision 4.3
Provision 4.4
Provision 4.5
Principle 5
Provision 5.1
Provision 5.2
Provision 5.3
Remuneration Matters
Principle 6
Provision 6.1
Provision 6.2
Provision 6.3
Provision 6.4
Principle 7
Provision 7.1
Provision 7.2
Provision 7.3
Principle 8
Provision 8.1
Provision 8.2
Provision 8.3
Accountability and Audit
Principle 9
Provision 9.1
Provision 9.2
Principle 10
Provision 10.1
Provision 10.2
Provision 10.3
Provision 10.4
Provision 10.5
Shareholder Rights and Responsibilities
Principle 11
Provision 11.1
Provision 11.2
Provision 11.3
Provision 11.4
Provision 11.5
Provision 11.6
Principle 12
Provision 12.1
Provision 12.2
Provision 12.3
Managing Stakeholder Relationships
Principle 13
Provision 13.1
Provision 13.2
Provision 13.3
Practice Guidance
Board Roles and Director Duties
Board Composition and Guidance
Chairman and CEO
Board Membership
Board Performance
Procedures for Developing Remuneration Policies
Level and Mix of Remuneration
Disclosure on Remuneration
Risk Management and Internal Controls
Audit Committee
Shareholder Rights and Engagement
Engagement with Shareholders
Managing Stakeholder Relationships
eGuide Glossary

Copyright © 1998 - 2018 Singapore Institute of Directors. All rights reserved.