Make or Break: The Stakeholder Revolution

Written By Matt Thomas

The game has changed. From the Commonwealth Bank’s dramatic post-Royal Commission comeback to The Smith Family’s impact-driven education initiatives, Australian organisations are proving that stakeholder engagement isn’t just nice to have—it’s the difference between thriving and becoming irrelevant.

Stakeholder Capitalism is Here to Stay

The old model of putting shareholders first is dead. In its place? A new reality where employees, customers, communities, and the environment are shaping the future of business. This isn’t corporate fluff—it’s strategy. The research is clear: organisations that prioritise stakeholders are more resilient, more innovative, and more profitable (Crane et al., 2019).

The Power Players Who Decide Your Future

Forget the traditional boardroom hierarchy—these are the stakeholders that make or break an organisation:

  • Employees: Engaged teams don’t just work—they innovate, boost productivity, and elevate customer experience (Macey & Schneider, 2018).

  • Customers: A stakeholder-first approach isn’t charity—it drives long-term revenue and growth (Kumar & Pansari, 2016).

  • Communities: A strong social licence isn’t just about good PR—it’s an operational necessity (Bowen, Newenham-Kahindi & Herremans, 2015).

  • The Environment: Sustainability is no longer optional—it’s a financial and reputational non-negotiable (Eccles, Ioannou & Serafeim, 2014).

Real-World Proof: The Stakeholder Revolution in Action

The Commonwealth Bank: From Crisis to Comeback

The Hayne Royal Commission exposed deep cultural failures at CBA, forcing the bank to either adapt or implode. They chose transformation—establishing a Customer Advocate office, overhauling employee training, and integrating environmental and social risk factors into decision-making. The result? A corporate rebirth, stronger customer satisfaction, and a workforce that’s switched on, not checked out.

AIHW: Data-Driven Trust in Action

The Australian Institute of Health and Welfare (AIHW) isn’t just engaging stakeholders—it’s using them to shape smarter policy. Regular surveys, tailored engagement, and radical transparency have made AIHW a trusted force in shaping health policy that delivers real results.

The Smith Family: Changing Lives Through Collaboration

For The Smith Family, stakeholder engagement isn’t a corporate buzzword—it’s the foundation of their impact. By embedding schools, communities, and donors into their decision-making process, they’re not just improving education outcomes for disadvantaged children—they’re building trust, securing funding, and driving systemic change.

So What?

The message is clear: stakeholder engagement isn’t a passing trend—it’s the backbone of long-term success. The organisations that win in this landscape will be the ones that:

  • Rethink governance: Stakeholder roles aren’t an afterthought—they need to be embedded at the highest level.

  • Master communication: A one-size-fits-all strategy won’t cut it—organisations must engage stakeholders with transparency and intent.

  • Measure what matters: If it’s not being tracked, it’s not being prioritised—stakeholder value must be baked into performance metrics.

  • Embrace the revolution: This isn’t a compliance exercise—it’s a competitive advantage.

Stakeholders aren’t just watching—they’re shaping the future. The only question is: are you ahead of the curve or about to be left behind?

References
Australian Institute of Health and Welfare 2023, Annual report 2022–23, AIHW, Canberra.
Australian Public Service Commission 2022, Delivering for tomorrow: APS workforce strategy 2025, Commonwealth of Australia, Canberra.
Bowen, F, Newenham-Kahindi, A & Herremans, I 2015, 'When suits meet roots: The antecedents and consequences of community engagement strategy', Journal of Business Ethics, vol. 95, no. 2, pp. 297-318.
Commonwealth Bank of Australia 2024, Annual report 2024, CBA, Sydney.
Crane, A, Matten, D, Glozer, S & Spence, L 2019, Business ethics: Managing corporate citizenship and sustainability in the age of globalization, 5th edn, Oxford University Press, Oxford.
Eccles, RG, Ioannou, I & Serafeim, G 2014, 'The impact of corporate sustainability on organizational processes and performance', Management Science, vol. 60, no. 11, pp. 2835-2857.
Henisz, WJ, Dorobantu, S & Nartey, LJ 2014, 'Spinning gold: The financial returns to stakeholder engagement', Strategic Management Journal, vol. 35, no. 12, pp. 1727-1748.
Kumar, V & Pansari, A 2016, 'Competitive advantage through engagement', Journal of Marketing Research, vol. 53, no. 4, pp. 497-514.
Macey, WH & Schneider, B 2018, 'The meaning of employee engagement', Industrial and Organizational Psychology, vol. 1, no. 1, pp. 3-30.
The Smith Family 2024, Annual report 2023-24, The Smith Family, Sydney.
Matt Thomas
Previous

Fundamentally Human