ABSTRACT
This chapter provides a theoretical framework based on stakeholder theory and review the main tools and methodologies for undertaking stakeholder engagement. Stakeholder theory is managerial in that it reflects and directs how managers operate rather than primarily addressing management theorists and economists. It gives priority in the study of behavioral economics and deserves to be a focus of present and future academic research. The stakeholder theory can be used to transform social and environmental responsibilities not only into business objectives but also into clear objectives and indicators on which organizations need to report. Garriga and Mele define stakeholder engagement as the attempt to integrate groups with a stake in the firm into managerial decision making. Stakeholder views are obtained through an engagement process that allows stakeholders to express themselves without fear or restriction. The stakeholder engagement process in the following three phases: stakeholder identification and analysis, Interaction with stakeholders and Evaluation and reporting.
