What is a dialogue?
A company dialogue is initiated when contact is established with the company with regard to a specific issue. In the dialogue, a discussion takes place with the company about challenges and about the Council on Ethics’ expectations and requirements for improvements in relevant areas. The dialogues are based on clear objectives, such as improved governance through policies, their implementation and transparent reporting. Progress towards the goals and the dialogue strategy are evaluated on a continuous basis. Contact is by e-mail, telephone, video meetings or site visits.
Who participates in a dialogue?
The Council on Ethics may participate in a dialogue directly or through a service provider. The Council on Ethics often collaborates with other investors in order to increase
leverage in the dialogue. The dialogue is often initiated with the company’s investor relations team or through direct contact with sustainability and topic experts. Depending on
whether the challenges are unique to a company or common for an industry, the dialogues may be company-specific or with several companies within the specific industry. In some
cases other stakeholders in the value chain may also need to join in the efforts to address the issue
Success factors
The Council on Ethics approach in engagement dialogues is based on methods established in academic research.
- Expertise: Specialist knowledge of specific sustainability issues lays the foundation for a successful dialogue and engagement. It is also important to research and understand how each company has addressed the issue to date, as well as its circumstances and challenges.
- Trust: If the Council on Ethics is able to create a constructive environment for the dialogue, the possibility to influence the company in a positive direction improves. Company dialogues are conducted in confidence, and it is therefore not always possible to report about them publicly. The Council on Ethics promotes transparency and aims to report on its engagement work to the greatest degree possible.
- Collaboration: In order to make engagements with companies more effective, the Council on Ethics may collaborate with other investors, often globally. That way, the leverage to promote positive change is increased.
- Tailored approach: The Council on Ethics may choose different ways in which to conduct the dialogues, tailored to the specific situation, sustainability issue and progress in the discussions.
- Best practice: Companies do not want to be worse than their peers, and working with several companies at the same time is often a successful strategy. The Council on Ethics may also facilitate the sharing of experiences and best practice between companies in different industries but which face similar challenges.