4 tips for increasing stakeholder engagement at your next AGM
Stakeholder engagement means truly listening to the variety of voices that make up your shareholder base. It means taking on board what they say and upholding the values of transparency and accountability when opening a dialogue with them.
If opening a dialogue is one piece of the stakeholder engagement puzzle, how else can businesses champion and increase stakeholder engagement at their next AGM? Here are Lumi Global’s tips:
- Invest in the Q&A session
Q&A sessions have become an essential facet of the AGM, offering a platform for stakeholders to pose questions, share concerns and suggest ideas. They also enable businesses to provide updates on the company’s status and engage in open discussions on key issues such as ESG or board remuneration.
Using a reliable meeting provider that helps you navigate the Q&A seamlessly with the help of question moderation and queue management, as well as the ability to submit verbal and written questions, is a must. In addition, being able to coordinate which participants can ask a question at any given time allows for a structured and successful Q&A session.
It’s also important to ensure parity between the questions received in-room and those received virtually. Technology like virtual microphones and virtual videos can help ensure this.
Holding a mock Q&A before the main event can also be a chance for you to coach the management team on any pain points in preparation for the event, construct answers for any questions that are likely to be asked during the session and reach a consensus on any issues that could be raised.
- Consider the AGM format wisely
If increasing stakeholder engagement is the top priority at your next AGM, choosing a meeting format that facilitates this is vital.
While holding an in-person event might resonate with a more traditional generation of stakeholders, the virtual option may allow for a greater number of stakeholders to participate, regardless of their location. Hybrid meetings often provide the best of both worlds, offering greater diversity in attendance and engagement by accommodating both in-person and remote attendees.
Whichever format you choose, keep inclusivity and parity of experience at the heart of your AGM by using both digital and paper communications, and inclusive voting practices, ensuring that stakeholders globally can contribute in meaningful ways during AGMs.
- Don’t shy away from ESG issues
The rise of ESG-related issues amongst stakeholders has been clear in recent years, with nearly 80% of investors reporting that ESG is a crucial factor in their investment decision-making.
ESG epitomises the impact people have on the world. Businesses engaging with ESG issues can improve their relationships with stakeholders and contribute to a more sustainable and responsible business environment.
Whether it surrounds sustainability, executive pay, or other ESG considerations, making an impact on wider society is crucial for stakeholders. Therefore, at the AGM, companies should address ESG issues proactively and transparently during the Q&A and in reporting materials.
- Seek feedback
Opening dialogues with stakeholders should happen inside and outside of the AGM setting. The key is to engage with stakeholders regularly by collecting feedback through surveys, meetings, and other channels like social media to understand their expectations and areas for improvement.
Implementing stakeholder feedback helps to demonstrate continuous improvement. To create a feedback loop between your business and your stakeholders, engage them frequently via annual reports, newsletters, press releases, and shareholder meetings.
Final thoughts
The push to engage stakeholders can take many forms, whether that be through utilising a hybrid AGM format to create more opportunities for them to share their voices or investing in the Q&A at your next AGM.
Ultimately, focusing on stakeholder engagement will help you create more opportunities for stakeholders to engage directly with the board at AGMs, creating stronger, longer-lasting relationships overall.
About Lumi Global
Lumi powers the meetings that matter for the world’s most trusted decisions, ensuring seamless, engaging experiences for all stakeholders.
