The concepts of social risk management and social license to operate have
become an integral part of doing business in emerging markets. These
dimensions of a company’s social and environmental strategy can be achieved
with effective stakeholder engagement, based on active participation of
and feedback from groups affected by the company’s operations. A
mechanism to address affected communities’ concerns and complaints—
a grievance mechanism —is an important pillar of the stakeholder engagement
process, since it creates opportunities for companies and communities to
identify problems and discover solutions together.
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