Fundamentals of Risk Management

stakeholder expectations
353
stakeholder dialogue
Dialogue with stakeholders should be based on a mutual understanding of the objec-
tives of the organization. The board is responsible for ensuring that the dialogue is 
satisfactory. Although specific members of the organization may have the day-to-day 
responsibility for communications with particular groups of stakeholders, the board 
will retain overall responsibility. Table 29.1 provides a summary of the information 
that should be provided to shareholders of a company. This information will focus 
on the provision of accurate financial data.
general
A clear statement of strategy and vision
Corporate profile and principal markets
Financial data
Annual report and financial statements
Archived financial information for the past three years
Corporate governance and CSr
Information related to compliance with Combined Code
Information on the company CSR policies
Shareholder information
Shareholder analysis by size and constituent
Information on directors’ share dealings
relevant news
Access to all news releases and presentations
Developments that might affect the share value
TAbLE 
29.1
Data for shareholders
The level and nature of dialogue with stakeholders will depend on the particular 
interests of the stakeholder in the operations of the organization. The supporters of 
a sports club will require different information from the banks that are providing the 
necessary financial support for the club.
To obtain the fullest picture of the risks facing an organization, analysis of
stakeholders and their expectations is necessary. The identification of stakeholder 

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Risk governance
354
expectations is one output from the external evaluation stage of the business
cycle. Different stakeholders may have expectations that are contradictory or even 
mutually exclusive in terms of the demands placed on the organization. The impor-
tance of communication with stakeholders also extends to whistleblowing and the 
text box below gives an illustration of how whistleblowing can be valuable to the 
organization and should be encouraged.
Rank aims to maintain a culture of openness, honesty and opposition to fraud, corruption
and unethical business conduct. It is Rank policy to implement and maintain procedures
that promote ethical business conduct and reduce the risk of fraud and other irregularities, 
enabling early detection, investigation and reporting. Rank has a fraud and unethical 
business conduct whistleblowing policy which sets out the ways in which employees
can voice their concerns about suspected fraud, corruption or unethical business
conduct.
During the period under review two frauds came to light within the Grosvenor retail 
casino business in circumstances where it would appear that others not directly
involved must potentially have had suspicions that they never raised. This has led 
management and the committee to question whether the whistleblowing policy is
sufficiently effective.
Although reports are made under the group whistleblowing policy, the matters which are 
the subject of the reports are rarely related to fraud or unethical business conduct, and are 
more often than not related to human resource issues. Managers in the businesses are being 
consulted as to how best to address the cultural resistance to using the whistleblowing 
policy for matters for which the policy is intended.
The Rank Group Plc
Annual Report and Financial Statements 2015
Whistleblowing policy