Improving Engagement

Improving Stakeholder Engagement

Effective stakeholder engagement creates opportunities and allows businesses to achieve strategic and tactical success which is mutually beneficial.

Stakeholder engagement allows businesses to achieve strategic and tactical success.

Improving Stakeholder Engagement

Many organisations and people around the world are increasingly looking to businesses to create a new model of responsible capitalism; where the needs of a wider base of stakeholders are met sustainably both now and in the future.

Few businesses have the depth of understanding of the needs of these stakeholders needed to really address them nor a way of keeping track of them over time. We believe that the successful business of the future that genuinely creates value for itself and its stakeholders will need to work effectively with these stakeholders and invest in those relationships.

Even leading businesses, who are committing considerable resources to engaging with stakeholders, often still only focus on the satisfaction of those stakeholders and rely on vague or qualitative descriptions of the needs of the stakeholders. KPMG, working with Relational Analytics, have found that conventional stakeholder ‘engagement’ measures satisfaction in a very limited sense. This often gives a general sense of ‘happiness’ but not a deeper understanding of the drivers of that happiness (or not) and where improvements can be made.

Few are able to consider the actual effectiveness of those relationships in delivering mutual benefit through communication, clear understanding and a sense of shared goals. In our view, a business that does not have an effective dialogue with its stakeholders will struggle to meet their needs.

KPMG and RA have worked together to help our clients take a more consistent, unbiased and in depth view of their relationships with key stakeholders. Perhaps most importantly, KPMG has used this approach to help clients understand and influence the drivers of effective relationships with stakeholders to promote better, higher quality dialogue that helps both parties meet their needs.

Most organisations are using decade old approaches to understanding what stakeholders want and increasingly recognise that the systems are delivering very limited benefits. Our approach is different: using a ground breaking system that measures the effectiveness of a relationship based on 20 drivers of effectiveness, we help our clients understand which aspects of a relationship can enable success and which areas can be improved most efficiently to ensure that the relationships are delivering benefit for both sides.

KPMG has worked with clients to help them:

  • Understand their business critical relationships and identify specific actions that can improve these relationships. By measuring the ‘distance’ in the relationship between two people, groups or organisations, we can determine how well each can understand the intentions and performance of the other.
  • Identify the opportunities for taking greater responsibility in the effectiveness of their relationships – the more remote decision makers from other stakeholders, the less they feel responsible for them. Through greater proximity, groups can understand and interact with each other more effectively.
  • Provide those in a relationship with the language to measure, explore and understand the 20 different drivers that can impact the effectiveness of that relationship.

Relational Proximity® and Relational Proximity Framework™ are registered trademarks of Relational Research Limited and can only be used under license from Relational Analytics Limited.

Relational Proximity Framework (PDF 270 KB)

Connect with us


Request for proposal



Supply Chain

Effective supply chain requires knowledge and management of all environmental aspects.

Read more

Thought leadership

Thought leadership

KPMG’s thought leadership provides insights on the most important trends in sustainability and business responses to environmental and social change.

Our Leaders

Conflict Minerals

Companies need to respect human rights and avoid mineral sourcing conflict.

Read more

Environment, Social and Governance Due Diligence

Environmental, social and governance issues can materially impact businesses.

Read more

Reporting and Assurance

Sustainability reporting is critical to strategic decision making and managing reputation.

Read more

KPMG’s Sustainability War Room

Vincent Neate, presents his views on the sustainability risks

Read more