In the execution of its duties, the Board should not only consider the company’s obligations to its shareholders but also the interests of its material stakeholders. The relationships with material stakeholders may have an impact on the company’s long-term sustainability.
Stakeholders are parties who may be affected by the company’s activities, or whose actions can affect the ability of the company to conduct its activities. The Board should determine the relevant stakeholders, and set policies in relation to material stakeholders identified.
It is accepted practice for sustainability reports to be used to engage stakeholders. The results of such engagements could also inform the contents of these reports.