Imagine an organisation where every decision is made transparently, impartially, and inclusively. This utopian vision isn’t just a fantasy—it’s a cornerstone of effective governance and stakeholder relationship management. Welcome to the world where fairness in administrative justice reigns supreme, transforming stakeholder interactions and catapulting organisations to new heights of trust and success.

Fairness in administrative justice isn’t a nebulous concept; it’s a concrete principle that demands equitable treatment for all individuals and groups by administration transparently, impartially, and inclusively. This means decisions are transparent, unbiased, and respectful of all parties involved. Fairness encompasses clear processes and open communication, decisions free from favouritism or prejudice, accountability for actions and decisions, and ensuring stakeholders can voice their views and concerns.

Fairness isn’t just a legal necessity—it’s a strategic game-changer. Fair treatment isn’t merely a nice gesture; it’s the bedrock of trust between organisations and their stakeholders. Trust is the invisible thread that weaves together successful relationships. Organisations known for their fairness enjoy a robust, positive reputation that can weather storms and attract goodwill. Transparent and fair processes are shields against disputes and legal challenges. Fairness fosters long-term stakeholder engagement and cooperation, ensuring lasting success.

In 2016, Wells Fargo, a prominent American bank, was rocked by a scandal involving the creation of millions of unauthorised accounts without customer consent. This secretive and ethically dubious practice, driven by unrealistic sales targets, disregarded customer rights and interests. The fallout was brutal: public outrage, hefty fines, and a catastrophic loss of trust among customers and regulators. Employees who blew the whistle on these unethical practices faced retaliation, spotlighting a systemic failure to uphold fairness and transparency. The scandal severely tarnished Wells Fargo’s reputation, leaving the bank struggling to rebuild trust and mend stakeholder relationships.

On the flip side, Unilever, a global consumer goods giant, showcases the power of fairness. When Unilever decided to ramp up its sustainability efforts, it embarked on a journey of comprehensive stakeholder engagement. The company actively consulted employees, suppliers, consumers, and environmental organisations, gathering invaluable input and feedback. Unilever’s commitment to transparency shone through in its sustainability reports and open communication channels, ensuring all voices were heard. This collaborative approach fostered innovative solutions and bolstered Unilever’s brand reputation, attracting loyal customers and forging solid partnerships across its value chain.

Fairness in administrative justice isn’t just a procedural necessity—it’s a catalyst for trust, engagement, and sustainable success. By embracing transparency, impartiality, accountability, and the right to be heard, organisations can navigate the complexities of stakeholder interactions with integrity and confidence. Integrating fairness into every facet of stakeholder relationship management upholds ethical standards and paves the way for meaningful and lasting partnerships.

As we forge ahead in an ever-evolving landscape, let’s commit to fairness, ensuring every stakeholder interaction is marked by respect, equity, and trust.

***

Thabang Chiloane is the Chairperson of the Institute for Stakeholder Relations in Southern Africa (ISRSA). He writes in his personal capacity.