Intensity Score: Impact on the Stakeholders
The "Impact on Stakeholders" pillar evaluates the extent to which an ESG event affects the various stakeholders associated with a company. This will later be referred to as the ‘scope of the event’.
Who is a stakeholder?
| Level | Examples |
|---|---|
| Internal | Employees, Investors/Shareholders, Board members, Donors, Owners (founders). |
| External | Customers, Suppliers/vendors, Creditors, Government agencies, Labor/Trade unions, Community groups, industry peers (competitors), NGOs. |
The scope of the event considers how many stakeholders are affected and to what extent. It might include the impact on various groups such as clients, customers, communities, shareholders, employees, suppliers, and other relevant parties.
The broader the scope of the event, the higher the potential impact on stakeholders, affecting their relationship with the company and its overall reputation.
| Level | Event | Impacted Stakeholders and Extent |
|---|---|---|
| Limited | McDonald’s and Burger King are facing calls to scrap plastic toys in kids’ meal deals (link). | Environmentally conscious customers, Environmental advocacy groups. Low impact. |
| Moderate | Walmart will pay $2.5M to settle class-action wage claims for pre-shift COVID-19 screening (link). | Employees, Labor unions, Legal institutions, Shareholders. Moderate impact. |
| High | Volkswagen to Spend Up to $14.7 Billion to Settle Allegations of Cheating Emissions Tests and Deceiving Customers on 2.0 Liter Diesel Vehicles (link). | Customers, Shareholders, Regulators, Environmental Advocacy Groups. High impact. |