| The company discloses in its annual report its strategy and key areas of focus in relation to the management of stakeholder relationships during the reporting period. |
A. Explanation
This Provision expects the company to communicate its strategy and key areas of focus to its stakeholders.
The long-term success of the company depends on its relationship with its stakeholders and how it communicates its strategy and key areas of focus on stakeholder management. This enables the stakeholder to engage with the company, specifically to better understand and assess its relationship with it.
At the same time, the strategy of a company forms its distinctive competitive advantage and position and, as such, there is a risk that a competitor may gain an unintended advantage with such public knowledge. Communication of a strategy therefore needs to balance the need to limit competitive threats with transparency to relevant stakeholders.
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
- Board Guide 7.1: Introduction [Stakeholder Engagement].
- Sustainability Guide for Boards 4.2 Engage Stakeholders [Execution]
- Sustainability Guide for Boards 5.7 Improving Sustainability Reporting [Reporting]
E. Related Articles
- “Shareholders vs stakeholders: For whose benefits” by K. Sadashiv. (393KB)
- “Engaging stakeholders, creating impact” by Seah Kian Peng. (326KB)
- “For whom shall boards govern” by Lawrence Loh. (373KB)
- “Impact of sustainability trends on business” by K Sadashiv. (368KB)
- “What’s the big deal about sustainability” by Lawrence Loh. (144KB)