Novelties Ltd., a company involved in processing, packaging and selling of Agriculture based products is facing some intermittent resistance from local agricultural associations regarding raw material procurement procedu

Agriculture Associations fear of the bargaining power of Novelties because the company is engaged in creating value addition to the agriculture produce and also involved in mass procurement of the same. Also in a market structure which is of scattered land holdings, subsistence level and high price lending, risk of crop failures with the uncertainty of resale price maintenance and procurement farmers fear in the long run the company may acquire significant dominance in every sphere of agriculture activities. Therefore it is advisable for the company to get involved in stakeholder engagement leading increased transparency, responsiveness, compliance, organizational learning, quality management, accountability and sustainability. Stakeholder engagement is a central feature of sustainability performance. Stakeholder engagement is undertaken for numerous reasons which include: Improved corporate responsibility and financial performance across the globe. To avoid conflict through negotiation, mediation and collaborative learning. Development of a shared vision to direct future business decisions and operations. To innovate through collaboration. Stakeholder engagement involves following steps: Identify stakeholder Establish the goals and objectives of the company for engagement. Identify stakeholder needs and interests. Determine the stakeholder engagement strategy. Evaluate outcome and internalize learnings.