03/18/2026
While we at Future 500 continue to see a lot of value in the term "stakeholder engagement," Alison Taylor's nuanced piece in Trellis Group today highlights several important pitfalls and shortcomings we've seen in companies' stakeholder efforts. It's an important read for anyone tasked with an external stakeholder function—to consider the deeper why, as well as questions around stakeholder definitions, prioritization, objectives, and how to genuinely incorporate feedback. Perhaps most important to ensure success? That companies exercise "some practical curiosity over the impact of your business decisions on real human beings."
One additional item to add, from Future 500's perspective: Most companies have systems or well-established models to follow for engaging traditional stakeholders—that is, employees, governments, communities, media, investors, and suppliers. Where they often fall short is in understanding so-called "non-traditional" stakeholders, such as civil society advocates (like NGOs and SRIs) and their funders—including those across the political left and right—who mobilize issue campaigns that can materially impact a company and its sector financially and reputationally. To navigate a world of rising, unpredictable risks of political and legal reprisal, what will separate companies is their ability to synthesize external, cross-partisan stakeholder perspectives. These systems require companies to be adept at earning and maintaining relationship capital built on trust, enabling them to see around the corner, anticipate emerging risks before their competitors, and take proactive steps aligned with their critical stakeholders to turn risks that threaten the business into opportunities to build shareholder value. If you want to learn more, our team is happy to connect.
This observation and Professor Taylor's great points all speak to the need for each company to clearly define what stakeholder engagement is to them. And, we recommend her book, Higher Ground: How Business Can Do the Right Thing in a Turbulent World.
Alison Taylors full article:
The vague term is undermining sustainability's credibility.