ABSTRACT
As local stakeholder engagement becomes a more important aspect of corporate operations and the resources allocated to it are increasing, so are management demands to measure the effectiveness of community approaches and returns on community investment. Company consultation with communities about success also allows them to agree on appropriate benchmarks and indicators for assessing progress. Without consultation with communities, companies may make incorrect assumptions about what indicators are showing. Companies should develop indicators to monitor their progress and achievements with regard to community engagement. Indicators are contextually relevant signals that agreed-to benchmarks are being achieved. Even as companies and communities agree on the definition of success, and indicators and benchmarks they will monitor to assess progress toward goals, companies should develop systems for monitoring changes in community perceptions about the company. Indicators that are used by national institutions provide a company with a basis for measuring its impact by comparing results in their area with other parts of the country.
