Page 48 - MiNDSPACE Issue 1 2022 - Old Mutual Corporate

responsible business workSPACE
interests of shareholders or one particular stakeholder, but rather of the organisation as a whole for the long term,’ she says.
In certain avenues of South Africa’s private sector, however, there still exists a tick-box approach to inclusive governance. Corporate social investment (CSI) consultancy Trialogue’s 2020 Business in Society Handbook indicates that more than half the South African corporate respondents (53%) undertook CSI because of to licence-to- operate obligations, while 43% deemed improved brand perception as the top business benefit of CSI.
WHERE DO EMPLOYEES COME IN?
As material internal stakeholders, employees are among the most critical players in the corporate ecosystem. Yet Vandayar believes that this does not mean they should provide input into key business decisions, but rather that the board or management should ensure that they take employees’ interests into account with respect to business decisions that may impact them.
o
o
t
u
n
r
p
o
e
d
t
c
s
a
i
s
t
L
THE IMPORTANT DIFFERENCE BETWEEN BRAND AWARENESS AND BRAND IMAGE with Solly Moeng
This is not always the case, Le Riche asserts: ‘Employee engagement leads to mutual trust and a greater understanding,
but higher engagement leads to the increased risk of high, unmet expectations, which are often difficult to manage when you are trying to balance the collective of stakeholders.’
‘At the end of the day, the board and management must decide what is best for the company holistically, and it may not always be what employees want, nor be in their sole best interest,’ she notes.
Le Riche agrees. While employees should always be considered as a priority, she believes this should be done within the context of the corporate objective.
‘There is a danger in saying that the most important stakeholder
is the employee. Employees are important, but their needs should be considered within an ecosystem that is profitable, because it’s impossible to protect jobs in the absence of a prosperous company.'
She stresses that businesses are more likely to create better value if they listen to the combined stakeholder view rather than focusing on a single one.
THE RISK OF UNMET EXPECTATIONS
An additional dilemma that emerges in the realm of employee engagement is that once employees express their needs and views to management, there is an expectation that these concerns should be automatically met.
Le Riche cautions, however, that undervaluing the needs or requests of employees can amount to ‘corporate suicide’. ‘You will not attract and retain the most talented staff and create an enabling environment for growth and innovation if you don’t open an avenue to listen to the concerns, recommendations and the wishes of your employees.’ M
GO TO CONTENTS
IMAGES: SHUTTERSTOCK AND SUPPLIED
44 | ISSUE 1 2022