Global supply chains like coffee, rice and palm oil, to name a few, involve a diversity of actors from smallholder farmers to large corporate groups involved in the trade and processing of the commodities. Supply chains also drive wide-ranging impacts, creating concerns about their effects on deforestation and on national interests such as food security or export revenues. Stakeholder positions are often divergent on ways to address these issues. Data-driven analysis and transparency can help de-escalate some of these heated debates.
In the convening process, the role of a trusted intermediary or ‘honest broker’ is critical. This facilitator should consider three general principles to build trust and understanding in the stakeholder engagement process: inclusion, structure and equity.
Trust-building principle 1: Inclusion
The first ‘trust-building’ principle is to make sure no important stakeholder group is excluded from the process. Including all interested parties is also the best strategy to ensure ownership of whatever decisions come out of it.
See a list of key stakeholders
- Producers, smallholders
- Producers, industry
- Governments, subnational in key producing regions
- Governments, national administrations (in particular Trade, Agriculture, Planning, Environment Ministries)
- Governments, importing countries(European Union Member States, China,etc.)
- Supply chain organisations, regulations bodies
- Non-governmental organisations (NGOs), environmental agenda (national and international)
- NGOs, social agenda (national and international)
- Traders
- Manufacturers
- Consumer goods companies
- Retailers
- Investors
- Consumers
- Certification schemes
- Other key stakeholders (representatives of indigenous peoples, women, youth, etc.)
The involvement of the key stakeholders in the process cannot be detached from having clarity on the overall objective. What decisions are at stake ultimately? A new regulation applying to an entire sector? Or to exported commodities in the context of a trade agreement? Are fiscal reforms or new tax measures in the scope of possible decisions? Whatever decisions are contemplated, it is key to ensure that the appropriate decision makers are sitting around the table.
Trust-building principle 2: Structure
The second important element for building trust in the process is one of structure, order and hierarchy. While every stakeholder group should be included in the process, differences in roles and attributions should be recognised and taken into account. Who is convening the actors? Who is chairing the stakeholder committee? Is there a neutral facilitator? Are the ultimate decision makers clearly identified and what role do they have in the process?
It is important that not only all relevant stakeholders are included in the committee but also that a government agency or supply chain organisation demonstrates leadership in the stakeholder committee.
Trust-building principle 3: Equity
The third trust-building principle is one of balance, fairness and equity in relationships. How can this process be mutually beneficial for all parties? What actions can be taken to ensure that benefits and efforts are shared equitably, taking into account differences in responsibilities and abilities?
The principle of equity also requires avoiding important asymmetries of information. The commitment to transparency and simplicity, both on data and methods, is essential. Members of the stakeholder committee should have similar access to, and understanding of, the data and information used in the process.
Great data and methods will not help much if people are suspicious about the entire endeavour. But trust built in a well facilitated process can unlock their full potential.
Step 1 milestones
- Formation of a stakeholder committee (or another structure) with a facilitator trusted by all parties through an inclusive, structured and equitable process.
- Demonstrated leadership from a government agency or supply chain organisation (e.g. through chairing sessions of the stakeholder committee).
- Well-defined and mutually-beneficial stakeholder objectives, with clear respective roles and responsibilities.
Trust building within systems
Everywhere individuals or organisations enter into contact with each other, they form a system. A supply chain is a system. A stakeholder committee is a system. Lack of interpersonal trust is often cited as one of the biggest challenges to the well-functioning of systems, enterprises, and nations. Traditional wisdom across all human civilisations has long understood the importance of respecting the principles of inclusion, order or structure, and equity to nurture harmony in all kinds of systems. Such principles were already described more than 2500 years ago by the Chinese philosopher Lao Tzu to foster peace and harmony in society. Investing in these principles throughout a stakeholder engagement process is what can generate and sustain much needed trust.
