Effective stakeholder relationships are the backbone of any successful organisation. Strong relationships enhance an organisation’s reputation, reinforce its social license to operate and contribute to its long-term sustainability. In today’s highly connected world, the ability to foster and maintain positive stakeholder relationships has become more essential than ever.

The first step in building these relationships is identifying stakeholders impacted by your operations, including customers, employees, suppliers, investors, government bodies, and community groups. Mapping these groups helps prioritise engagement efforts and tailor communication strategies to address their specific needs. A great example is South Africa’s Nedbank Group, which uses a stakeholder mapping matrix to classify and prioritise key stakeholders by their level of influence and interest. This approach enables Nedbank to address critical concerns promptly and communicate effectively.

Building meaningful relationships requires understanding what stakeholders truly value. Regular surveys, interviews, and meetings help capture their expectations and concerns. Actively listening to stakeholders demonstrates respect for their input and builds trust. Coca-Cola exemplifies this approach through its “Journey” project, which engaged communities across several countries to better understand local needs. In South Africa, Coca-Cola initiated the Replenish Africa Initiative (RAIN), addressing water access issues and enhancing its social responsibility profile.

Establishing open, transparent communication further strengthens trust. Keeping stakeholders informed about developments, challenges, and successes helps them feel included and valued. Toyota South Africa, for instance, has open communication channels with local suppliers, which proved invaluable during the COVID-19 pandemic. Toyota reinforced its partnerships by holding regular virtual meetings to update suppliers on production shifts and maintain trust.

Involving stakeholders in decision-making also helps foster a sense of investment in organisational outcomes and reduces resistance to change. This approach has brought Anglo-American success through its Collaborative Regional Development model, which actively involves local communities and government officials in project decisions. By engaging stakeholders directly, Anglo-American has effectively mitigated conflicts and strengthened its social operating license.

Effective relationships thrive on reciprocity, where the organisation’s goals align with stakeholders’ interests, creating opportunities for mutual benefit. Woolworths South Africa’s Farming for the Future program embodies this principle by helping farmers adopt sustainable practices, strengthening Woolworths’ supply chain and supporting local agriculture.

Consistency is also crucial; following up on feedback, tracking relationship progress, and addressing unresolved issues are essential to demonstrate ongoing commitment. Standard Bank of South Africa uses quarterly feedback to address community concerns, fostering transparency and building stakeholder trust.

Lastly, organisations must adapt to changing stakeholder needs, whether due to market trends, technological advancements, or evolving societal expectations. Companies that respond proactively strengthen relationships and demonstrate a lasting commitment. Unilever is a prime example: in response to rising consumer demand for sustainability, it restructured its business model around the Unilever Sustainable Living Plan, appealing to environmentally conscious stakeholders and reinforcing shareholder trust.

Building and maintaining effective stakeholder relationships requires commitment, strategy, and a willingness to adapt. Organisations that identify stakeholders, understand their needs, communicate openly, involve them in decision-making, develop mutual benefits, follow up consistently, and adapt to change can create a foundation of trust and collaboration. Organisations prioritising these relationships are positioned to succeed and positively impact the communities and markets they serve in a world where stakeholders wield more significant influence.