Management     

Published: May 15, 2024
Updated: May 15, 2024

Crucial importance of SRC

A Stakeholders Relationship Committee (SRC) is crucial for an organization’s success, and can contribute to the overall success of the organization. An SRC alone can actively engage with stakeholders, advocate for their rights and concerns, and facilitate constructive dialogue between promoters and stakeholders, thereby promoting transparency and accountability.

The following are the ways in which an SRC functions

1. Enhancing stakeholder engagement

By facilitating regular interactions and feedback mechanisms, the SRC helps build trust, transparency, and goodwill among stakeholders

2. Proactively identifying and addressing issues.

The SRC helps mitigate risks, enhance stakeholder satisfaction, and safeguard the company’s reputation and credibility.

3. Ensuring compliance and accountability.

By monitoring adherence to relevant laws, regulations, and ethical practices, the SRC promotes accountability, integrity, and responsible business conduct across the organization.

4. Representing diverse stakeholder perspectives.

With regard to the decision-making processes, the SRC helps balance competing interests, mitigates conflicts, and promotes inclusive and sustainable business practices.

5. Monitoring Stakeholder Risks.

By proactively identifying emergingtrends, issues, and expectations among stakeholders, an SRC helps the company anticipate and respond effectively to changing market dynamics and stakeholder demand

6. Supporting strategic decision-making.

By aligning stakeholder interests with the company’s strategic objectives, the SRC contributes to longterm value creation and sustainable growth

7. Promoting transparency and disclosure.

By overseeing the company’s communication policies and practices, an SRC helps maintain trust and confidence among stakeholders and the broader community.

(MS Anand is an independent director — DIN 09361339)