E 1.2 Stakeholder Analysis

TEST Exercise Scoping and Policy Step
Stakeholder Analysis
HANDOUT 1 – tasks
A family owned dairy company, established in the 80’s with the core vision of “satisfying the middle
east consumers with high quality fresh milk and dairy products”, runs 2 milk processing sites, 2 cheese
manufacturing plants, as well as 3 yoghurt and milk drinks manufacturing plants. The factory serves
mainly the eastern part of the country, controlling almost 55% of its market demand.
Being the first manufacturing facility of this dairy company, the company used some old equipment,
but was operated by the most experienced and talented technicians. After completing an Initial
Screening, the company’s top management decided to apply the TEST methodology for its old milk
producing company. Based on the results, they would consider to apply the procedure in their
remaining production sites.
The shareholders anticipate that the TEST methodology would increase their profits through
rationalization of the production processes and reducing production costs. The plant manager
perceives the project as an opportunity to increase productivity, while the company operators fear
losing their jobs as a result of technology modernization. It is noted that the public awareness on
sustainable products and public pressure on reducing industrial pollution (especially due to the
discharge of whey into water bodies) has increased in the region, which is pushing the government to
induce strict pollution abatement regulations.
Task:
1. Who are the company key stakeholders?
2. Analyse stakeholders and their relationship with the company and its priorities
(using the stakeholder analysis matrix below).
3. What are the suggested approaches and tools to manage relationship with
different stakeholders?
Stakeholder analysis matrix
List of Category Needs/Expectations Relevance of stakeholder relationship to Level of importance of the

Stakeholders the business / priority topics stakeholder
(scale 1 to 4*)
Economic Environmental Social
Internal
List of Category Needs/Expectations Relevance of stakeholder relationship to Level of importance of the

Stakeholders the business / priority topics stakeholder
(scale 1 to 4*)
Economic Environmental Social
External
HANDOUT 2 – possible solutions
Task 1:
This task is intended to highlight the importance of defining the stakeholders at early stages of the
project, as they might impact decisions and expectations from subsequent steps (drafting the policy
but for example also selection of the TEST team, priority setting or feasibility analysis…).
Defining key stakeholders shall follow the following checklist:

• Who are the stakeholders with a legal relationship with the company?
• Who could be affected by future decisions or activities of the company?
• Who was affected by company decisions or activities in the past?
• Who could assist in mitigating the company’s negative impacts?
• Who could be affected by the company’s activities in the value chain?
For the given case, the key stakeholders can be:

• Original brand owners (family business)
• Shareholders
• Company management
• Management of sister companies
• Employees
• Customers
• Suppliers
• Financial institutions
• Government
• Local community
Task 2:
Possible results of an analysis of the company stakeholders identified in the previous step are
illustrated in the matrix provided in the ANNEX.
Your actual matrix will reflect subjective knowledge and judgements of people participating in the
stakeholder analysis. We suggest ensuring you have different backgrounds and experience covered
within your team for the stakeholder analysis in order to make sure you do not miss any important
stakeholder concerns to be considered and consequently managed.
Please note that similarly to the previous task on stakeholder mapping, the proposed matrix is only
one of the possible approaches to implement stakeholder analysis. For more information, see the
Stakeholder analysis tool (link to T 1.2 Stakeholder analysis) or the case study on a more
sophisticated method of materiality analysis.
Task 3:
Examples of possible approaches and tools to manage relationships with different stakeholders are
shown in the table below. For more details, refer to the Stakeholder analysis tool.
Stakeholder Engagement and communication approaches
Brand owners · Regular reporting and meetings

· Roundtable of brand owners, shareholders and company managers on
company policy and strategy integrating sustainable consumption and
production
· Use natural authority of the brand owners in promotion of company
policy among the company members (within company-wide meetings
which will include common celebration of achievements)
Shareholders · Regular reporting of information identified together with shareholders

· Justifying usefulness of RECP for achieving shareholders goals in the
shareholder´s meeting
· Common celebration of achievements with the other internal
stakeholders
Company management · Development of company policy together with the other company
members
· Presentation of policy to company members
· Common celebration of achievements with internal and external
stakeholders
Management of sister · Common consultations on development of company policy and its

companies internal and external communication
· Common online platform for information transfer
· Regular meetings including knowledge sharing, common reflection and
celebration of achievements.
Employees · Establish ERCP team

· Use existing communication structure within the management

systems to regularly inform employees and to involve them in
innovative activities
· Establish regular newsletter informing among others on the RECP
activities
· Launch regular social meetings focusing on celebration of
achievements
Customers · Evaluate key customers and propose a regular communication channel

including consultation meetings with top management representatives
· Continuously improve standardised management systems and inform
customers about achievements
· Offer a common program for applying RECP in the value chain to
customers
· Consider launching a code of conduct
Suppliers · Make guided interviews with all customers to better understand their
needs, common issues and possibilities for common improvement
· Offer a common program for applying RECP in the value chain to
suppliers
Financial institutions · Strengthen relationship with the existing bank providing financing for
company investments through regular consultations and reporting
Government · Set up a proactive transparent reporting system

· Launch a project on implementation of circular economy and RECP in
the value chain and search for governmental support for it
Local community · Issue Facebook and Twitter communication to the public focusing on
the local community
· Launch guided interviews with selected representatives of the local
community, evaluate results and reflect them in meeting with local
community representatives, launch local social responsibility program
· Celebrate achievements

E 1.2 Stakeholder Analysis

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TEST Exercise Scoping and Policy Step

1. Who are the company key stakeholders?

Stakeholder analysis matrix

List of Category Needs/Expectations Relevance of stakeholder relationship to Level of importance of the

Economic Environmental Social

List of Category Needs/Expectations Relevance of stakeholder relationship to Level of importance of the

Economic Environmental Social

HANDOUT 2 – possible solutions

Defining key stakeholders shall follow the following checklist:

For the given case, the key stakeholders can be:

Stakeholder Engagement and communication approaches

Brand owners · Regular reporting and meetings

Shareholders · Regular reporting of information identified together with shareholders

Management of sister · Common consultations on development of company policy and its

Employees · Establish ERCP team

· Use existing communication structure within the management

Customers · Evaluate key customers and propose a regular communication channel

Government · Set up a proactive transparent reporting system

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